Other Real Estate Owned

3 Months Ended

Mar. 31, 2012

Other Real Estate Owned [Abstract]

Other Real Estate Owned

Note 6. Other Real Estate Owned

OREO increased $3.3 million from $21.0 million at December 31, 2011 to $24.3 million at March 31, 2012.  Set forth below is a table which details the changes in OREO from December 31, 2011 to March 31, 2012.

	2012
(In thousands)	First Quarter
Beginning balance	$	21,016
Net proceeds from sales		(4,531	)
Net loss on sales		(138	)
Assets acquired on non-accrual loans		8,010
Impairment charge		(53	)
Ending balance	$	24,304

During the first quarter of 2012, the Company foreclosed on and sold collateral related to one commercial real estate loan.  The Company received net proceeds of $4.1 million and recorded a gain of $36,000. Additionally the Company sold eight single family homes related to three loans.  The Company received net proceeds of $104,000 and recorded a small net gain of $3,000.  As a result of these sales the Company recorded an impairment charge of $44,000 on the remaining collateral for two of these loans.  In addition to the sales mentioned above, the Company sold ten properties acquired through the tax lien portfolio.  The Company received proceeds of $332,000 and recorded a net loss of $177,000 as a result of these sales.During the first quarter of 2012, the collateral for a completed hotel and condominium construction project in Minneapolis, Minnesota, in which the Company is a participant, was foreclosed on by the lead lender.  The Company transferred the fair value of $3.2 million to OREO which represents the Company's participation rate of approximately 7.5%. The Company had previously recorded total charge-offs of $1.5 million to the allowance for loan and lease losses during the period the participation loan was non-accrual.  In addition the Company acquired collateral related to the tax lien portfolio and transferred $789,000 to OREO.The Company recorded impairment charges of $9,000 related to properties acquired through the tax lien portfolio.