OTHER REAL ESTATE OWNED (OREO)

12 Months Ended

Dec. 31, 2011

OTHER REAL ESTATE OWNED (OREO)

OTHER REAL ESTATE OWNED (OREO)

NOTE 7—OTHER REAL ESTATE OWNED (OREO)

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

	December 31, 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	$	23,003	$	15,053	$	38,056	$	18,205	$	21,658	$	39,863
Construction and land development		24,788		15,461		40,249		4,650		19,205		23,855
Multi-family		—		—		—		—		10,393		10,393
Single family residence		621		2,992		3,613		2,743		4,560		7,303
Total OREO, net	$	48,412	$	33,506	$	81,918	$	25,598	$	55,816	$	81,414

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

	Non-Covered OREO			Covered OREO			Total OREO
	(In thousands)
OREO Activity:
Balance, December 31, 2008	$	41,310		$	—		$	41,310
Addition from the Affinity acquisition		—			22,897			22,897
Foreclosures		53,436			14,509			67,945
Payments to third parties(1)		390			—			390
Provision for losses		(16,277	)		(1,518	)		(17,795	)
Reductions related to sales		(35,604	)		(8,200	)		(43,804	)
Balance, December 31, 2009		43,255			27,688			70,943
Addition from the Los Padres acquisition		—			33,913			33,913
Foreclosures		34,349			35,001			69,350
Payments to third parties(1)		2,484			—			2,484
Provision for losses		(12,271	)		(5,389	)		(17,660	)
Reductions related to sales		(42,219	)		(35,397	)		(77,616	)
Balance, December 31, 2010		25,598			55,816			81,414
Foreclosures		34,743			33,940			68,683
Payments to third parties(1)		1,619			10			1,629
Provision for losses		(5,026	)		(11,968	)		(16,994	)
Reductions related to sales		(8,522	)		(44,292	)		(52,814	)
Balance, December 31, 2011	$	48,412		$	33,506		$	81,918

⁽¹⁾

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

        The following table presents a rollforward of our OREO valuation allowance for the years indicated:

	Non-Covered OREO			Covered OREO			Total OREO
	(In thousands)
OREO Valuation Allowance Activity:
Balance, December 31, 2008	$	1,254		$	—		$	1,254
Provision for losses		16,277			1,518			17,795
Due from the SBA		1,403			—			1,403
Reductions related to sales		(2,906	)		—			(2,906	)
Balance, December 31, 2009		16,028			1,518			17,546
Provision for losses		12,271			5,389			17,660
Due from the SBA		823			—			823
Reductions related to sales		(15,291	)		(2,925	)		(18,216	)
Balance, December 31, 2010		13,831			3,982			17,813
Provision for losses		5,026			11,968			16,994
Selling costs(1)		—			2,527			2,527
Due from the SBA		108			—			108
Reductions related to sales		(9,431	)		(7,436	)		(16,867	)
Balance, December 31, 2011	$	9,534		$	11,041		$	20,575

⁽¹⁾

During 2011, the FDIC changed its methodology such that selling costs are reimbursed at the time of sale rather than at the time of foreclosure. Such amounts will be realized when the related OREO parcels are sold.