Note 6 - Other Real Estate Owned

12 Months Ended

Dec. 31, 2013

Disclosure Text Block [Abstract]

Real Estate Owned [Text Block]

6.     Other Real Estate Owned

At December 31, 2013, the net carrying value of other real estate owned (“OREO”) increased $6.6 million, or 14.2%, to $53.0 million from $46.4 million at December 31, 2012. OREO located in California was $10.9 million and was comprised primarily of eight parcels of land zoned for residential purpose of $9.0 million, three commercial use buildings of $564,000, three commercial building construction projects of $635,000, one residential construction project of $530,000, and one parcel of land zoned for commercial purpose of $235,000. OREO located in Texas was $27.3 million and was comprised of three office and commercial use buildings of $12.5 million, six parcels of land zoned for residential purposes of $12.7 million, four commercial building construction projects of $1.3 million and a retail store of $766,000. OREO located in the state of Washington was $6.5 million and was comprised three parcels of land zoned for residential purpose of $667,000 and one office and commercial use building of $5.8 million. OREO located in the state of New York was one office and commercial use building $893,000. OREO located in the state of North Carolina was one commercial use building of $4.1 million. OREO located in Illinois was $3.3 million and was comprised of one condominium property of $2.4 million, two commercial use properties of $639,000 and one residential property of $202,000.

For 2012, 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 project of $740,000, one residential construction project of $530,000, and one single family residential property 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 property of $169,000. OREO located in the state of Washington was $1.6 million and was comprised of one parcel 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.

An analysis of the activity in the valuation allowance for other real estate losses for the years ended December 31, 2013, 2012, and 2011 is as follows:

	Year Ended December 31,
	2013			2012			2011
	(In thousands)
Balance, beginning of year	$	19,556		$	26,422		$	25,310
(Reversal)/provision for losses		(2,122	)		10,668			10,385
OREO disposal		(4,050	)		(17,534	)		(9,273	)
Balance, end of year	$	13,384		$	19,556		$	26,422

The following table presents the components of other real estate owned expense for the years ended December 31, 2013, 2012, and 2011:

	Year Ended December 31,
	2013			2012			2011
	(In thousands)
Operating expense	$	3,680		$	4,817		$	5,441
(Reversal)/provision for losses		(2,122	)		10,668			10,385
Net gain on transfers and disposals		(1,793	)		(369	)		(5,243	)
Total other real estate owned expense	$	(235	)	$	15,116		$	10,583