Other Real Estate Owned

12 Months Ended

Dec. 31, 2014

Other Real Estate Owned

Other Real Estate Owned

Note 6: Other Real Estate Owned

Details related to the activity in the other real estate owned (“OREO”) portfolio, net of valuation reserve, for the periods presented are itemized in the following table.  Of note, a disposal in 2014 of approximately $94,500 reflects use or reuse of a property held as Bank OREO to a bank premise.  After property remediation work and with approval of the Bank Board of Directors, an office in northwest suburban Chicago was removed from OREO and placed in service as a residential mortgage loan production office.

	Twelve Months Ended
	December 31,
Other real estate owned	2014		2013		2012
Balance at beginning of period	$	41,537	$	72,423	$	93,290
Property additions		16,078		19,194		32,121
Property improvements		794		73		701
Less:
Property disposals, net of gains/losses		21,868		41,712		36,854
Period valuation adjustments		4,559		8,441		16,835
Balance at end of period	$	31,982	$	41,537	$	72,423

Activity in the valuation allowance was as follows:

	2014		2013		2012
Balance at beginning of period	$	22,284	$	31,454	$	23,462
Provision for unrealized losses		4,559		8,293		16,385
Reductions taken on sales		(7,025)		(17,389)		(8,843)
Other adjustments		(589)		(74)		450
Balance at end of period	$	19,229	$	22,284	$	31,454

Expenses related to OREO, net of lease revenue includes:

	2014		2013		2012
Gain on sales, net	$	(989)	$	(1,956)	$	(2,198)
Provision for unrealized losses		4,559		8,293		16,385
Operating expenses		4,173		5,705		7,973
Less:
Lease revenue		826		1,295		3,497
	$	6,917	$	10,747	$	18,663