Interim Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011
Cash flows from operating activities:
Net loss	$ (550)	$ (17,585)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	5,395	2,872
Provision for possible loan losses	3,888	17,060
Net losses (gains) on sales and write-downs of debt securities	(2,903)	(20)
Write-downs of premises and equipment, net of gains on sales	0	129
Net losses on sales and write-downs of other real estate owned	3,612	5,963
Stock option compensation cost	0	18
Amortization of restricted stock expense	117	131
Mortgage loans originated for sale in the secondary market	(20,264)	(11,841)
Mortgage loans sold in the secondary market	19,791	12,562
Decrease in accrued interest receivable	517	314
Decrease in accrued interest payable	(128)	(610)
Loss on sale of loans	0	58
Other operating activities, net	2,565	3,702
Net cash provided by operating activities	12,040	12,753
Cash flows from investing activities:
Purchase of available-for-sale debt securities	(207,977)	(88,746)
Proceeds from maturities and issuer calls and principal payments of available-for-sale debt securities	39,904	76,618
Proceeds from sales of available-for-sale debt securities	112,177	27,378
Net decrease in loans	111,641	152,155
Proceeds from sale of other real estate owned	2,190	15,588
Proceeds from sale of premises and equipment	0	37
Proceeds from sale of loans	0	5,726
Purchase of premises and equipment	(1,278)	(248)
Net cash provided by investing activities	56,657	188,508
Cash flows from financing activities:
Net decrease in deposits	(43,610)	(150,623)
Net increase (decrease) in short-term borrowings	(8,868)	8,008
Payments of long-term Federal Home Loan Bank borrowings	0	(6,000)
Issuance of common stock	33	40
Payments of stock issuance costs	0	(29)
Net cash used in financing activities	(52,445)	(148,604)
Net increase (decrease) in cash and cash equivalents	16,252	52,657
Cash and cash equivalents at beginning of period	53,530	27,164
Cash and cash equivalents at end of period	69,782	79,821
Supplemental information:
Cash paid for interest	7,361	12,860
Noncash transactions:
Transfers to other real estate in settlement of loans	20,754	38,134
Loans made to facilitate the sale of other real estate	6,383	9,358
Restricted stock award, Forfeitures	0	4
Accrual of preferred dividends	1,780	1,690
Transfers of other real estate to premises and equipment	$ 1,552	$ 0

Reliance Bancshares, Inc. 10-Q