OTHER REAL ESTATE OWNED (OREO) (Tables)

9 Months Ended

Sep. 30, 2012

OTHER REAL ESTATE OWNED (OREO)

Summary of OREO by property type

	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.

Schedule of roll forward of OREO, net of the valuation allowance

	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.