OTHER REAL ESTATE OWNED (OREO)

9 Months Ended

Sep. 30, 2012

OTHER REAL ESTATE OWNED (OREO)

OTHER REAL ESTATE OWNED (OREO)

NOTE 6—OTHER REAL ESTATE OWNED (OREO)

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

	September 30, 2012						December 31, 2011
Property Type	Non-Covered OREO		Covered OREO		Total OREO		Non-Covered OREO		Covered OREO		Total OREO
	(In thousands)
Commercial real estate(1)	$	1,684	$	18,500	$	20,184	$	23,003	$	15,053	$	38,056
Construction and land development(1)		33,911		6,807		40,718		24,788		15,461		40,249
Multi-family		—		939		939		—		—		—
Single family residence		1,738		128		1,866		621		2,992		3,613
Total OREO, net	$	37,333	$	26,374	$	63,707	$	48,412	$	33,506	$	81,918

⁽¹⁾

During the third quarter of 2012, the status of one OREO property with a balance of $8.3 million changed from commercial real estate to land.

        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, December 31, 2011	$	48,412		$	33,506		$	81,918
Foreclosures		1,839			7,241			9,080
Payments to third parties(1)		622			—			622
Provision for losses		(752	)		(2,229	)		(2,981	)
Reductions related to sales		(3,915	)		(8,630	)		(12,545	)
Balance, March 31, 2012		46,206			29,888			76,094
Foreclosures		684			9,957			10,641
Payments to third parties(1)		91			—			91
Provision for losses		(101	)		(2,704	)		(2,805	)
Reductions related to sales		(5,138	)		(6,051	)		(11,189	)
Balance, June 30, 2012		41,742			31,090			72,832
Addition from the APB acquisition		1,561			—			1,561
Foreclosures		1,700			10,823			12,523
Payments to third parties(1)		176			—			176
Provision for losses		(2,566	)		(5,214	)		(7,780	)
Reductions related to sales		(5,280	)		(10,325	)		(15,605	)
Balance, September 30, 2012	$	37,333		$	26,374		$	63,707

⁽¹⁾

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