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Other Real Estate Owned and Property Acquired in Settlement of Loans
 6 Months Ended
Jun. 30, 2012
Repossessed Assets [Abstract]  
Other Real Estate Owned and Property Acquired in Settlement of Loans
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 $24.0 million during the first six months of 2012 from $110.4 million at December 31, 2011, to $86.4 million at June 30, 2012, which represents 47% 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)
 
June 30, 2012
 
December 31, 2011

Real estate acquired in settlement of loans
 
$
86,183

 
$
110,009

Personal property acquired in settlement of loans
 
217

 
377

Total property acquired in settlement of loans
 
$
86,400

 
$
110,386


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, 2012
 
June 30, 2011
Real estate acquired in settlement of loans, beginning of period
 
$
104,193

 
$
67,331

Plus: New real estate acquired in settlement of loans
 
6,085

 
52,680

Plus: Real estate acquired in BOGC acquisition
 
—

 
—

Less: Sales of real estate acquired in settlement of loans
 
(13,502
)
 
(8,681
)
Less: Write-downs and net loss on sales charged to expense
 
(10,593
)
 
(9,946
)
Real estate acquired in settlement of loans, end of period
 
$
86,183

 
$
101,384

 
 
For Six Months Ended
(dollars in thousands)
 
June 30, 2012
 
June 30, 2011
Real estate acquired in settlement of loans, beginning of period
 
$
110,009

 
$
62,058

Plus: New real estate acquired in settlement of loans
 
15,020

 
73,967

Plus: Real estate acquired in BOGC acquisition
 
—

 
—

Less: Sales of real estate acquired in settlement of loans
 
(24,376
)
 
(10,399
)
Less: Write-downs and net loss on sales charged to expense
 
(14,470
)
 
(24,242
)
Real estate acquired in settlement of loans, end of period
 
$
86,183

 
$
101,384


At June 30, 2012, 41 assets with a net carrying amount of $12.9 million were under contract for sale. Estimated losses with these sales have been recognized in the Consolidated Statements of Operations in the first six months of 2012.