OTHER REAL ESTATE OWNED

12 Months Ended

Dec. 31, 2014

OTHER REAL ESTATE OWNED [Abstract]

OTHER REAL ESTATE OWNED

5. OTHER REAL ESTATE OWNED

At December 31, 2014 and 2013, the Company had other real estate owned, net of valuation allowances, totaling $1.3 million and $1.9 million, respectively.

The following table shows the activity in other real estate owned, excluding the valuation allowance, for the years ended December 31,

(In thousands)	2014			2013
Balance, beginning of year	$	3,961		$	4,506
OREO properties added		744			3,119
Sales during year		(961	)		(3,664	)
Balance, end of year	$	3,744		$	3,961

The following table shows the activity in the valuation allowance for the years ended December 31,

(In thousands)	2014		2013		2012
Balance, beginning of year	$	2,020	$	1,010	$	865
Additions charged to expense		400		1,010		145
Direct writedowns		—		—		—
Balance, end of year	$	2,420	$	2,020	$	1,010

The following table shows expenses related to other real estate owned for the years ended December 31,

(In thousands)	2014			2013			2012
Net (gain)/loss on sales	$	(139	)	$	(85	)	$	89
Provision for unrealized losses		400			1,010			145
Operating expenses, net of rental income		179			179			356
Total	$	440		$	1,104		$	590