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FORECLOSED REAL ESTATE
 12 Months Ended
Dec. 31, 2011
FORECLOSED REAL ESTATE
(6) FORECLOSED REAL ESTATE

At December 31, 2011 and 2010, the Bank had foreclosed real estate held for sale of $661,000 and $591,000, respectively. During the years ended December 31, 2011 and 2010, foreclosure losses in the amount of $650,000 and $1.7 million, respectively, were charged off to the allowance for loan losses. Losses on subsequent write downs of foreclosed real estate of $2,000 for 2010 are aggregated with realized gains and losses from the sale of foreclosed real estate. There were no losses on subsequent write-downs of foreclosed real estate for 2011. Net realized losses from the sale of foreclosed real estate amounted to $128,000 and $79,000 for the years ended December 31, 2011 and 2010, respectively. The net gain or loss on foreclosed real estate is reported in other noninterest expense. Real estate taxes and other expenses of holding foreclosed real estate are included in other noninterest expenses and amounted to $84,000 and $133,000 in 2011 and 2010, respectively. Realized gains from the sale of foreclosed real estate totaling $35,000 and $12,000 were deferred for 2011 and 2010, respectively, because the sales were financed by the Bank and did not qualify for recognition under generally accepted accounting principles. At December 31, 2011 and 2010, deferred gains on the sale of foreclosed real estate financed by the Bank amounted to $52,000 and $17,000, respectively.