12. Other Real Estate Owned and Property Acquired in Settlement of Loans

Other real estate represents properties 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.

The following table summarizes properties acquired in settlement of loans and personal property acquired in settlement of loans, the latter of which is included within the other assets financial statement line item on the Consolidated Balance Sheet at the periods indicated.


(dollars in thousands)	June 30, 2011		December 31, 2010
Real estate acquired in settlement of loans	$	101,384	$	62,058
Personal property acquired in settlement of loans		147		138

Total property acquired in settlement of loans	$	101,531	$	62,196

The following tables summarize the changes in real estate acquired in settlement of loans at the periods indicated.


	For Three Months Ended
(dollars in thousands)	June 30, 2011			June 30, 2010
Real estate acquired in settlement of loans, beginning of period	$	67,331		$	41,359
Plus: New real estate acquired in settlement of loans		52,680			7,157
Less: Sales of real estate acquired in settlement of loans		(8,681	)		(2,886	)
Less: Write-downs and net loss on sales charged to expense		(9,946	)		(3,628	)

Real estate acquired in settlement of loans, end of period	$	101,384		$	42,002


	For Six Months Ended
(dollars in thousands)	June 30, 2011			June 30, 2010
Real estate acquired in settlement of loans, beginning of period	$	62,058		$	35,170
Plus: New real estate acquired in settlement of loans		73,967			15,597
Less: Sales of real estate acquired in settlement of loans		(10,399	)		(5,066	)
Less: Write-downs and net loss on sales charged to expense		(24,242	)		(3,699	)

Real estate acquired in settlement of loans, end of period	$	101,384		$	42,002

During the three- and six-month periods ended June 30, 2011, the Bank received proceeds of $8.7 million and $10.4 million, respectively, in total sales of property acquired in settlement of loans. During the three- and six-month periods ended June 30, 2010, the Bank received proceeds of $2.3 million and $5.1 million, respectively, in total sales of property acquired in settlement of loans. At June 30, 2011, six assets with a net carrying amount of $13.8 million were under contract for sale and are expected to close in the third quarter of 2011. Estimated losses with these sales have been recognized in the Consolidated Statements of Operations in the second quarter of 2011.