Other Real Estate Owned

6 Months Ended

Jun. 30, 2012

Other Real Estate Owned [Abstract]

Other Real Estate Owned

NOTE 10 – OTHER REAL ESTATE OWNED

The following table shows the carrying amount for other real estate owned at June 30, 2012 and December 31, 2011:

		Other Real Estate			Other Real Estate
(dollars in thousands)		Owned (1	)		Owned, Covered
Balance, December 31, 2011	$	7,119		$	30,443
Additions		7,309			6,807
Sales		(2,227	)		(4,720	)
Gains (losses)/Write-downs		(1,436	)		(10,360	)
Balance, June 30, 2012	$	10,765		$	22,170

(1) Includes $0.4 million of repossessed personal property at June 30, 2012.

Covered OREO expenses and valuation write-downs are recorded in the noninterest expense section of the consolidated statements of income. Under the loss sharing agreements, the FDIC will reimburse the Company for 80% of expenses and valuation write-downs related to covered assets up to $275.0 million, losses in excess of $275.0 million up to $467.2 million at 0%, and 80% of losses in excess of $467.2 million. The reimbursable portion of these expenses is recorded in the FDIC indemnification asset. Changes in the FDIC indemnification asset are recorded in the noninterest income section of the consolidated statements of income.