OTHER REAL ESTATE OWNED (OREO) (Tables)

12 Months Ended

Dec. 31, 2012

OTHER REAL ESTATE OWNED (OREO)

Summary of OREO by property type

	December 31, 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	$	1,684	$	11,635	$	13,319	$	23,003	$	15,053	$	38,056
Construction and land development		31,888		6,708		38,596		24,788		15,461		40,249
Multi-family		—		4,239		4,239		—		—		—
Single family residence		—		260		260		621		2,992		3,613
Total OREO, net	$	33,572	$	22,842	$	56,414	$	48,412	$	33,506	$	81,918

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, 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
Addition from the APB acquisition		1,561			—			1,561
Foreclosures		4,223			35,984			40,207
Payments to third parties(1)		889			—			889
Provision for losses		(3,820	)		(10,513	)		(14,333	)
Reductions related to sales		(17,693	)		(36,135	)		(53,828	)
Balance, December 31, 2012	$	33,572		$	22,842		$	56,414

⁽¹⁾

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

Schedule of roll forward of OREO valuation allowance

	Non-Covered OREO			Covered OREO			Total OREO
	(In thousands)
OREO Valuation Allowance Activity:
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
Provision for losses		3,820			10,513			14,333
Selling costs(1)		—			876			876
Reductions related to sales		(7,936	)		(11,167	)		(19,103	)
Balance, December 31, 2012	$	5,418		$	11,263		$	16,681

⁽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.