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Other Real Estate Owned
 12 Months Ended
Dec. 31, 2011
Real Estate [Abstract]  
Other Real Estate Owned
OTHER REAL ESTATE OWNED
 
The Company had no other real estate owned (OREO) at December 31, 2011. At December 31, 2010 the Company had $1,325,000 invested in properties acquired through foreclosure.  The properties are described in the following paragraph.  These properties are carried at their fair value.  Fair value is based on recently obtained third-party appraisals or recent offers on like properties. The table below provides a summary of the change in other real estate owned (OREO) balances for the years ended December 31, 2011 and 2010.
 
 
 
Year Ended 
December 31, 
2011
 
Year Ended 
December 31, 
2010
 
 
(In thousands)
Balance, Beginning of year
 
$
1,325

 
$
2,832

Additions
 
532

 
3,467

Dispositions
 
(2,472
)
 
(4,449
)
Write-downs
 
—

 
(591
)
Net gain on disposition
 
615

 
66

Balance, End of year
 
$
—

 
$
1,325


As of December 31, 2011 the Bank had no OREO properties. In 2011, the Bank foreclosed on three other loans collateralized by real estate with net realizable values totaling $527,000. During the year ended December 31, 2011, the remaining 12 units of the medical office condominium project along with the three other properties were sold. Proceeds from OREO sales totaled $2,472,000 during 2011. The Company realized a $615,000 net recovery from the sale of all units.

As of December 31, 2010, OREO consisted of two properties.  The Bank was a participant with an independent bank in a loan collateralized by 24 units of a medical office condominium project.  On April 30, 2010, the lead bank foreclosed on the loan and the Bank recorded the property as OREO at a net realizable value of $1,656,000 for their portion of the loan.  Net realizable value was based on a third-party appraisal using a discounted as-is bulk value of the 24 units.  As of December 31, 2010, 12 of the 24 units were sold.  Sales proceeds totaled $911,000.  At December 31, 2010 the recorded investment in this property was $745,000.  On May 28, 2010, the Bank foreclosed on a loan collateralized by a property containing a gas station, convenience store and restaurant.  The Company recorded the property at a net realizable value of $889,000 based on a third-party appraisal.  Subsequent to foreclosure, the Company recorded a valuation allowance of $309,000 to reduce the value to an estimated realizable value of $580,000.
 
In 2010, the Bank foreclosed on three other loans collateralized by real estate with net realizable values totaling $923,000.  The properties were all sold in 2010.  During the year ended December 31, 2010, the Company realized a $176,000 net recovery from the sale of one property and realized losses on the sale of two other properties totaling $109,000. The Company sold the third property for its carrying value. Thus, the Company realized a $66,000 net recovery from the sale of all property.