OTHER REAL ESTATE OWNED (OREO)

6 Months Ended

Jun. 30, 2011

OTHER REAL ESTATE OWNED (OREO)

OTHER REAL ESTATE OWNED (OREO)

NOTE 5—OTHER REAL ESTATE OWNED (OREO)

        The following tables summarize OREO by property type at the dates indicated:

		June 30, 2011						December 31, 2010
Property Type		Non-Covered OREO		Covered OREO		Total OREO		Non-Covered OREO		Covered OREO		Total OREO
		(In thousands)
Commercial real estate		$	23,408	$	18,130	$	41,538	$	18,205	$	21,658	$	39,863
Construction and land development			26,446		19,461		45,907		4,650		19,205		23,855
Multi-family			—		515		515		—		10,393		10,393
Single family residence			2,340		2,843		5,183		2,743		4,560		7,303
	Total OREO, net	$	52,194	$	40,949	$	93,143	$	25,598	$	55,816	$	81,414

        The following table presents a rollforward of OREO, net of the valuation allowance, for the periods indicated:

		Non-Covered OREO			Covered OREO			Total OREO
		(In thousands)
OREO Activity:
Balance, January 1, 2011		$	25,598		$	55,816		$	81,414
	Foreclosures		24,981			4,130			29,111
	Payments to third parties(1)		950			—			950
	Provision for losses		(382	)		(890	)		(1,272	)
	Reductions related to sales		(2,780	)		(16,939	)		(19,719	)
Balance, March 31, 2011			48,367			42,117			90,484
	Foreclosures		6,073			13,329			19,402
	Payments to third parties(1)		172			—			172
	Provision for losses		(1,897	)		(1,565	)		(3,462	)
	Reductions related to sales		(521	)		(12,932	)		(13,453	)
Balance, June 30, 2011		$	52,194		$	40,949		$	93,143

⁽¹⁾

Represents amounts due to participants and for guarantees, property taxes or any other prior lien positions.

        The following tables present the components of OREO expense (income), net for the periods indicated:

		Three Months Ended									Six Months Ended June 30,
		June 30, 2011			March 31, 2011			June 30, 2010
											2011			2010
		(In thousands)
Non-Covered OREO Expense:
Provision for losses		$	1,897		$	382		$	985		$	2,279		$	9,297
Maintenance costs			400			473			307			873			1,382
(Gain) loss on sale			3			(152	)		(667	)		(149	)		(1,613	)
	Total non-covered OREO expense, net	$	2,300		$	703		$	625		$	3,003		$	9,066
Covered OREO Expense:
Provision for losses		$	1,565		$	890		$	233		$	2,455		$	2,378
Maintenance costs			86			324			45			410			170
(Gain) loss on sale			(446	)		(3,792	)		(367	)		(4,238	)		(468	)
	Total covered OREO expense, net	$	1,205		$	(2,578	)	$	(89	)	$	(1,373	)	$	2,080
Total OREO Expense:
Provision for losses		$	3,462		$	1,272		$	1,218		$	4,734		$	11,675
Maintenance costs			486			797			352			1,283			1,552
(Gain) loss on sale			(443	)		(3,944	)		(1,034	)		(4,387	)		(2,081	)
	Total OREO expense, net	$	3,505		$	(1,875	)	$	536		$	1,630		$	11,146