Real Estate Owned

12 Months Ended

Dec. 31, 2014

Real Estate Owned

Real Estate Owned

Note 6—Real Estate Owned

Real estate owned, net at December 31, 2014 and 2013 were as follows:

	December 31,
	2014		2013
	(In thousands)
Commercial real estate	$	—	$	173
Church		2,082		2,045
Gross real estate owned		2,082		2,218
Less valuation allowance		—		(134	)
Real estate owned, net	$	2,082	$	2,084

Real estate owned activity was as follows:

	2014			2013
	(In thousands)
Beginning balance	$	2,218		$	8,709
Loans transferred to real estate owned		3,314			3,041
Direct write-downs		(591	)		(1,002	)
Sales of real estate owned		(2,859	)		(8,530	)
Ending balance	$	2,082		$	2,218

Activity in the valuation allowance was as follows:

	2014			2013
	(In thousands)
Beginning valuation allowance	$	(134	)	$	(546	)
Additions charged to expense		(457	)		(590	)
Direct write-downs		591			1,002
Ending valuation allowance	$	—		$	(134	)

Expenses related to foreclosed assets include:

	2014			2013
	(In thousands)
Net gains on sales	$	(12	)	$	(112	)
Provision for losses		457			590
Operating expenses		127			301
Total net expenses	$	572		$	779