XML 39 R12.htm IDEA: XBRL DOCUMENT v2.4.0.6
Other Real Estate Owned
 12 Months Ended
Dec. 31, 2011
Other Real Estate Owned [Abstract]  
Other Real Estate Owned

Note 5. Other Real Estate Owned

At December 31, 2011 and 2010, OREO totaled $6.4 million and $4.0 million, respectively. OREO is primarily comprised of residential lots, raw land, non-residential properties and residential properties associated with commercial relationships, and are located primarily in the Commonwealth of Virginia. Changes in the balance for OREO are as follows:

 

     (in thousands)  
     2011     2010  

Balance at the beginning of year, gross

    $ 7,302      $ 7,255   

Transfers from loans

      8,117        2,865   

Charge-offs

      (2,022 )      (293 ) 

Sales proceeds

      (3,321 )      (2,506 ) 

Gain (loss) on disposition

      (910 )      (19 ) 

Balance at the end of year, gross

      9,166        7,302   

Less: allowance for losses

      (2,792 )      (3,341 ) 
  

 

 

    

 

 

  

Balance at the end of year, net

    $ 6,374      $ 3,961   
  

 

 

    

 

 

  

 

Changes in the allowance for OREO losses are as follows:

 

     (in thousands)  
     2011     2010     2009  

Balance at beginning of year

    $ 3,341      $ 994      $ —     

Provision for losses

      1,558        2,640        994   

Charge-offs, net

      (2,107 )      (293 )      —     
  

 

 

    

 

 

    

 

 

  

Balance at end of year

    $ 2,792      $ 3,341      $ 994   
  

 

 

    

 

 

    

 

 

  

Net expenses applicable to OREO, other than the provision for losses, were $572 thousand, $242 thousand and $156 thousand for the years ended December 31, 2011, 2010, and 2009, respectively.