Other Real Estate Owned and Other Repossessed Assets

6 Months Ended

Jun. 30, 2012

Other Real Estate Owned and Other Repossessed Assets [Abstract]

OTHER REAL ESTATE OWNED AND OTHER REPOSSESSED ASSETS

8. OTHER REAL ESTATE OWNED AND OTHER REPOSSESSED ASSETS

Real estate owned and other repossessed assets at June 30, 2012 and June 30, 2011 were as follows:

	June 30, 2012			June 30, 2011
	(Dollars in thousands)
Real estate owned and other repossessed assets	$	30,794		$	51,161
Valuation allowance		(6,016	)		(7,476	)
End of period	$	24,778		$	43,685

Activity in the valuation allowance was as follows:

	June 30, 2012			June 30, 2011
	(Dollars in thousands)
Beginning of year	$	8,764		$	7,332
Additions charged to expense		633			1,808
Direct write-downs		(3,381	)		(1,664	)
End of period	$	6,016		$	7,476

Expenses related to foreclosed and repossessed assets include:

	For the three months ended June 30,
	2012		2011
	(Dollars in thousands)
Net loss on sales	$	418	$	136
Provision for unrealized losses, net		505		1,226
Operating expenses, net of rental income		419		891
Total expenses	$	1,342	$	2,253
	For the six months ended June 30,
	2012		2011
	(Dollars in thousands)
Net loss on sales	$	1,019	$	546
Provision for unrealized losses, net		633		1,808
Operating expenses, net of rental income		1,121		1,764
Total expenses	$	2,773	$	4,118