Other Real Estate Owned

3 Months Ended

Mar. 31, 2013

Other Real Estate Owned [Abstract]

Other Real Estate Owned

Note 6.       Other Real Estate Owned

OREO declined $171,000 from $13.4 million at December 31, 2012 to $13.3 million at March 31, 2013.  Set forth below is a table which details the changes in OREO from December 31, 2012 to March 31, 2013.

	2013
(In thousands)	First Quarter
Beginning balance	$	13,435
Net proceeds from sales		(2,277	)
Net gain on sales		162
Assets acquired on loans		1,956
Impairment charge		(12	)
Ending balance	$	13,264

At March 31, 2013, OREO was comprised of $5.3 million in land, $3.7 million in commercial real estate, $3.7 million in tax liens, and residential real estate with a fair value of $588,000.  During the first quarter of 2013, the Company sold collateral related to land, received net proceeds of $1.8 million and recorded a loss of $38,000.  The Company also sold three condominiums related to a construction project in Minneapolis, Minnesota in which the Company is a participant. The Company received its pro rata share of net proceeds in the amount of $24,000 and recorded a gain of $17,000.  Additionally the Company sold four single family homes related to two loans.  The Company received net proceeds of $43,000 and recorded a small net gain of $3,000.  In addition to the sales mentioned above, the Company sold eleven properties acquired through the tax lien portfolio.  The Company received proceeds of $367,000 and recorded a net gain of $180,000 as a result of these sales.During the first quarter of 2013, the Company acquired collateral related to a residential real estate loan and transferred $100,000 to OREO.  In addition the Company acquired collateral related to the tax lien portfolio and transferred $1.9 million to OREO.The Company recorded impairment charges of $12,000 related to properties acquired through the tax lien portfolio.