REAL ESTATE ACQUIRED THROUGH FORECLOSURE

12 Months Ended

Dec. 31, 2012

Real Estate [Abstract]

Real Estate Disclosure [Text Block]

5. REAL ESTATE ACQUIRED THROUGH FORECLOSURE

A summary of the real estate acquired through foreclosure activity is as follows:

	December 31,
(Dollars in thousands)	2012			2011			2010
Beginning balance	$	29,083		$	25,807		$	8,428
Additions		18,100			19,416			24,622
Sales		(19,250	)		(6,877	)		(4,928	)
Writedowns		(5,147	)		(9,263	)		(2,315	)
Valuation allowance		(500	)		-			-
Ending balance	$	22,286		$	29,083		$	25,807

Real estate acquired through foreclosure expense which consists primarily of property management expenses was $3.7 million, $1.9 million and $1.7 million for the years ended December 31, 2012, 2011 and 2010, respectively.

The increase in real estate acquired through foreclosure expense for the year ended December 31, 2012 was primarily due to a $1.5 million termination fee recorded in the second quarter that was related to the termination of a property investment and management agreement on a residential development held in other real estate owned.