Other Loans Held for Sale and Valuation Allowance

6 Months Ended

Jun. 30, 2012

Other Loans Held for Sale and Valuation Allowance [Abstract]

Other Loans Held for Sale and Valuation Allowance

5. Other Loans Held for Sale and Valuation Allowance

Other loans held for sale are carried at the lower of cost or fair value less estimated costs to sell. The following table summarizes activity within other loans held for sale and the related valuation allowance at and for the three months ended June 30, 2012 (in thousands).

	Other loans held for sale, gross		Valuation allowance on other loans held for sale
Balance at March 31, 2012	$	17,258	$	2,555
Additions:
Gross loans transferred to other loans held for sale related to branch sales		7,508		—
Other gross loans transferred to other loans held for sale		9,739		—
Writedowns on other loans held for sale included in valuation allowance, net		—		97
Total additions		17,247		97
Reductions:
Proceeds from sales of other loans held for sale		14,592		874
Transfers to foreclosed real estate		1,336		—
Other loans held for sale transferred to gross loans		—		—
Direct writedowns on other loans held for sale		2,309		—
Net paydowns		44		—
Total reductions		18,281		874
Balance at June 30, 2012	$	16,224	$	1,778

Writedowns on other loans held for sale during the second quarter 2012 totaled $2.4 million of which $2.2 million were the result of sales of other loans held for sale during the period.

The following table summarizes activity within other loans held for sale and the related valuation allowance at and for the six months ended June 30, 2012 (in thousands).

	Other loans held for sale, gross		Valuation allowance on other loans held for sale
Balance at December 31, 2011	$	16,739	$	2,561
Additions:
Gross loans transferred to other loans held for sale related to branch sales		7,508		—
Other gross loans transferred to other loans held for sale		12,214		—
Writedowns on other loans held for sale included in valuation allowance, net		—		100
Total additions		19,722		100
Reductions:
Proceeds from sales of other loans held for sale		14,592		874
Transfers to foreclosed real estate		1,814		—
Other loans held for sale transferred to gross loans		1,327		9
Direct writedowns on other loans held for sale		2,434		—
Net paydowns		70		—
Total reductions		20,237		883
Balance at June 30, 2012	$	16,224	$	1,778

Other loans held for sale at June 30, 2012 include $7.5 million of loans associated with the branch sales that were consummated on July 1, 2012 and three commercial real estate loans with a net carrying value of $6.9 million that are continuing to be marketed for sale.