Note 6 - Other Real Estate Owned

12 Months Ended

Dec. 31, 2012

Real Estate Owned [Text Block]

6.      Other Real Estate Owned

At December 31, 2012, the net carrying value of other real estate owned decreased $46.3 million, or 50.0%, to $46.4 million from $92.7 million at December 31, 2011. OREO located in California was $12.2 million and was comprised primarily of six parcels of land zoned for residential purpose of $9.1 million, three office and commercial use buildings of $1.7 million, one commercial building construction projects of $740,000, one residential construction project of $530,000, and one single family residential properties of $179,000.  OREO located in Texas was $29.6 million and was comprised of four office and commercial use buildings of $14.4 million, four parcels of land zoned for residential purposes of $12.6 million, two commercial building construction projects of $1.3 million, one parcel of land zoned for non-residential purposes of $1.1 million, and one single family residential properties of $169,000.  OREO located in the state of Washington was $1.6 million and was comprised one parcels of land zoned for residential purpose of $733,000 and one commercial construction project of $870,000.  OREO located in the state of New York was a retail store of $1.2 million.  OREO located in the state of Nevada was $1.1 million and was comprised of a commercial use building.  OREO in all other states was $752,000 and was comprised of a commercial use property and a retail store.

For 2011, 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.

An analysis of the activity in the valuation allowance for other real estate losses for the years ended on December 31, 2012, 2011, and 2010 is as follows:

	2012			2011			2010
	(In thousands)
Balance, beginning of year	$	26,422		$	25,310		$	22,743
Provision for losses		10,668			10,385			20,139
OREO disposal		(17,534	)		(9,273	)		(17,572	)
Balance, end of year	$	19,556		$	26,422		$	25,310

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

	2012			2011			2010
	(In thousands)
Operating expense	$	4,817		$	5,441		$	5,849
Provision for losses		10,668			10,385			20,139
Net gain on transfer and disposal		(369	)		(5,243	)		(9,977	)
Total other real estate owned expense	$	15,116		$	10,583		$	16,011