XML 65 R17.htm IDEA: XBRL DOCUMENT v2.4.0.6
REAL ESTATE OWNED, NET
 9 Months Ended
Sep. 30, 2012
Real Estate [Abstract]  
REAL ESTATE OWNED, NET
REAL ESTATE OWNED, NET

The following table presents the changes in real estate owned (REO), net of valuation adjustments, for the three and nine months ended September 30, 2012 and 2011 (in thousands):

 
Three Months Ended
September 30
 
Nine Months Ended
September 30
 
2012

 
2011

 
2012

 
2011

Balance, beginning of the period
$
25,816

 
$
71,205

 
$
42,965

 
$
100,872

Additions from loan foreclosures
3,111

 
18,881

 
11,598

 
45,715

Additions from capitalized costs
97

 
1,107

 
231

 
4,254

Dispositions of REO
(10,368
)
 
(19,440
)
 
(33,608
)
 
(70,771
)
Gain (loss) on sale of REO
2,955

 
(725
)
 
3,621

 
(1,204
)
Valuation adjustments in the period
(1,255
)
 
(4,569
)
 
(4,451
)
 
(12,407
)
Balance, end of the period
$
20,356

 
$
66,459

 
$
20,356

 
$
66,459



The following table shows REO by type and geographic location by state as of September 30, 2012 (in thousands):

 
Washington
 
Oregon
 
Idaho
 
Total
Commercial real estate
$
948

 
$
—

 
$
198

 
$
1,146

One- to four-family construction
90

 
—

 
—

 
90

Land development- commercial
2,219

 
—

 
195

 
2,414

Land development- residential
3,629

 
6,038

 
257

 
9,924

One- to four-family real estate
4,394

 
2,388

 
—

 
6,782

Balance, end of period
$
11,280

 
$
8,426

 
$
650

 
$
20,356



REO properties are recorded at the lower of the estimated fair value of the property, less expected selling costs, or the carrying value of the defaulted loan, establishing a new cost basis.  Subsequently, REO properties are carried at the lower of the new cost basis or updated fair market values, based on updated appraisals of the underlying properties, as received.  Valuation allowances on the carrying value of REO may be recognized based on updated appraisals or on management’s authorization to reduce the selling price of a property.