Other Real Estate Owned and Personal Property Acquired in Settlement of Loans

12 Months Ended

Dec. 31, 2013

Repossessed Assets [Abstract]

Other Real Estate Owned and Personal Property Acquired in Settlement of Loans

Other Real Estate Owned and Personal Property Acquired in Settlement of Loans

OREO consists of real estate acquired through foreclosure or deed in lieu thereof. The property is classified as held for sale. The property is initially carried at fair value based on recent appraisals, less estimated costs to sell. Declines in the fair value of properties included in other real estate below carrying value are recognized by a charge to income.

Total OREO and personal property acquired in settlement of loans decreased $34.7 million from $63.1 million at December 31, 2012, to $28.4 million at December 31, 2013.

The following table summarizes real estate acquired in settlement of loans and personal property acquired in settlement of loans at the periods indicated:

(dollars in thousands)	December 31, 2013		December 31, 2012
Real estate acquired in settlement of loans	$	28,353	$	62,796
Personal property acquired in settlement of loans	42		335
Total property acquired in settlement of loans	$	28,395	$	63,131

The following table summarize the changes in real estate acquired in settlement of loans at the periods indicated:

	For Year Ended
(dollars in thousands)	December 31, 2013			December 31, 2012
Real estate acquired in settlement of loans, beginning of period	$	62,796		$	110,009
Plus: New real estate acquired in settlement of loans	15,001			32,565
Less: Sales of real estate acquired in settlement of loans	(45,523		)	(57,991		)
Less: Write-downs and net loss on sales charged to expense	(3,921		)	(21,787		)
Real estate acquired in settlement of loans, end of period	$	28,353		$	62,796

At December 31, 2013, 13 assets with a net carrying amount of $5.0 million were under contract for sale and are primarily expected to close during the first quarter of 2014. Estimated losses on these sales have been recognized in the Consolidated Statements of Operations for 2013. At December 31, 2012, 35 assets with a net carrying amount of $22.0 million were under contract for sale. The sale of these assets closed during the first and second quarter of 2013. Estimated losses on these sales were recognized in the Consolidated Statements of Operations for 2012.