Other Real Estate Owned And Property Acquired In Settlement Of Loans

9 Months Ended

Sep. 30, 2011

Other Real Estate Owned And Property Acquired In Settlement Of Loans [Abstract]

Other Real Estate Owned And Property Acquired In Settlement Of Loans

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

Other real estate owned ("OREO") 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.

Total OREO and foreclosed assets increased $34.1 million during the first nine months of 2011 from $62.2 million at December 31, 2010, to $96.3 million at September 30, 2011, which represents 40% of total nonperforming assets. At December 31, 2010, OREO and foreclosed assets represented 16% of total nonperforming assets.

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)
	September 30, 2011		December 31, 2010
Real estate acquired in settlement of loans	$	96,099	$	62,058
Personal property acquired in settlement of loans		176		138
Total property acquired in settlement of loans	$	96,275	$	62,196

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

(dollars in thousands)	For Three Months Ended
	September 30, 2011			September 30, 2010
Real estate acquired in settlement of loans, beginning of period	$	101,384		$	42,001
Plus: New real estate acquired in settlement of loans		27,278			9,714
Less: Sales of real estate acquired in settlement of loans		(29,122	)		(2,925	)
Less: Write-downs and net loss on sales charged to expense		(3,441	)		(188	)
Real estate acquired in settlement of loans, end of period	$	96,099		$	48,602

(dollars in thousands)	For Nine Months Ended
	September 30, 2011			September 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		101,245			25,308
Less: Sales of real estate acquired in settlement of loans		(39,521	)		(7,990	)
Less: Write-downs and net loss on sales charged to expense		(27,683	)		(3,886	)
Real estate acquired in settlement of loans, end of period	$	96,099		$	48,602

At September 30, 2011, 27 assets with a net carrying amount of $29.2 million were under contract for sale and are expected to close in the fourth quarter of 2011. Estimated losses with these sales have been recognized in the Consolidated Statements of Operations in the third quarter of 2011.