Other Real Estate Owned and Property Acquired in Settlement of Loans

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 decreased $6.0 million during the first three months of 2012 from $110.4 million at December 31, 2011, to $104.4 million at March 31, 2012, which represents 50% of total nonperforming assets. At December 31, 2011, OREO and foreclosed assets represented 51% 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)	March 31, 2012		December 31, 2011
Real estate acquired in settlement of loans	$	104,193	$	110,009
Personal property acquired in settlement of loans	186		377
Total property acquired in settlement of loans	$	104,379	$	110,386

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



(dollars in thousands)	March 31, 2012			March 31, 2011
Real estate acquired in settlement of loans, beginning of period	$	110,009		$	62,058
Plus: New real estate acquired in settlement of loans	8,935			21,287
Plus: Real estate acquired in BOGC acquisition	—			—
Less: Sales of real estate acquired in settlement of loans	(10,874		)	(1,718		)
Less: Write-downs and net loss on sales charged to expense	(3,877		)	(14,296		)
Real estate acquired in settlement of loans, end of period	$	104,193		$	67,331

At March 31, 2012, 67 assets with a net carrying amount of $11.5 million were under contract for sale. Estimated losses with these sales have been recognized in the Consolidated Statements of Operations in the first quarter of 2012.