Other Real Estate Owned

12 Months Ended

Dec. 31, 2011

Other Real Estate Owned [Abstract]

Other Real Estate Owned

6. Other Real Estate Owned

At December 31, 2011, the net carrying value of other real estate owned increased $15.0 million, or 19.3%, to $92.7 million from $77.7 million at December 31, 2010. OREO located in California was $32.3 million and was comprised primarily of five parcels of land zoned for residential purpose of $9.9 million, four parcels of land zoned for commercial purpose properties of $4.8 million, two commercial building construction projects of $3.5 million, one residential construction project of $588,000, twelve office and commercial use buildings of $13.2 million, two single family residential properties of $395,000. OREO located in Texas was $48.6 million and was comprised of eight commercial use buildings of $33.5 million, three parcels of land zoned for residential purpose of $11.7 million, three commercial building construction projects of $2.4 million, and three single family residential properties of $959,000. OREO located in the state of Washington was $3.9 million and was comprised of two retail stores $1.6 million, three parcels of land zoned for residential purpose of $1.2 million, one commercial construction project of $658,000, and three single family residential properties of $531,000. OREO located in the state of Nevada was $4.8 million and was comprised of a parcel of land zoned for residential purpose of $3.5 million and one commercial use building of $1.3 million. OREO in all other states was $3.0 million and was comprised of three commercial use properties of $2.1 million and four single family residential properties of $878,000.

For 2010, OREO located in California was $55.9 million and was comprised primarily of seven parcels of land zoned for residential purpose of $14.3 million, six parcels of land zoned for commercial purpose properties of $8.1 million, two commercial building construction projects of $4.8 million, three residential construction projects of $9.7 million, eleven office and commercial use buildings of $18.4 million, and three single family residential properties of $605,000. OREO located in Texas was $12.9 million and was comprised of two residential construction projects of $3.7 million, two commercial use buildings construction projects of $1.9 million, two parcels of land zoned for residential purpose of $3.6 million, two multi-family residences of $1.7 million, one parcel of land zoned for commercial purpose of $906,000, three single family residential properties of $786,000, and an industrial building of $291,000. OREO located in the state of Washington was $4.3 million and was comprised of two residential construction projects of $1.8 million, one parcel of land zoned for residential purpose of $1.3 million, a commercial building construction project of $949,000, and a single family residence of $241,000. OREO located in the state of Nevada was a parcel of land zoned for residential purpose of $3.3 million. OREO in all other states was $1.3 million and was comprised primarily of three commercial use properties.

An analysis of the activity in the valuation allowance for other real estate losses for the years ended on December 31, 2011, 2010, and 2009 is as follows:

	2011			2010			2009
	(In thousands)
Balance, beginning of year	$	25,310		$	22,743		$	3,814
Provision for losses		10,385			20,139			28,216
OREO disposal		(9,273	)		(17,572	)		(9,287	)
Balance, end of year	$	26,422		$	25,310		$	22,743

The following table presents the components of other real estate owned expense for the year ended:

	2011			2010			2009
	(In thousands)
Operating expense	$	5,441		$	5,849		$	5,794
Provision for losses		10,385			20,139			28,216
Net (gain)/loss on transfer and disposal		(5,243	)		(9,977	)		2,065
Total other real estate owned expense	$	10,583		$	16,011		$	36,075