Other Real Estate Owned

3 Months Ended

Mar. 31, 2015

Banking and Thrift [Abstract]

Other Real Estate Owned

NOTE 10 – OTHER REAL ESTATE OWNED

The following table presents activity in other real estate owned for the three months ended March 31, 2015 and 2014:

(dollars in thousands)	Other Real Estate Owned (1)			Other Real Estate Owned, Covered
2015
Balance at January 1, 2015	$	7,241		$	9,121
Additions		1,906			360
Sales		(428	)		(2,556	)
Gains (losses)/Write-downs		(237	)		159
Balance at March 31, 2015	$	8,482		$	7,084
2014
Balance at January 1, 2014	$	7,562		$	13,670
Additions		1,341			4,443
Sales		(938	)		(4,688	)
Gains (losses)/Write-downs		(336	)		(507	)
Balance at March 31, 2014	$	7,629		$	12,918

(1) Includes repossessed personal property of $0.2 million at March 31, 2015 and $0.3 million at March 31, 2014.

Covered OREO expenses and valuation write-downs are recorded in the noninterest expense section of the consolidated statements of income. Under the loss sharing agreements, the FDIC will reimburse us for 80% of expenses and valuation write-downs related to covered assets up to $275.0 million, losses in excess of $275.0 million up to $467.2 million at 0%, and 80% of losses in excess of $467.2 million. As of March 31, 2015, we do not expect losses to exceed $275.0 million. The reimbursable portion of these expenses is recorded in the FDIC indemnification asset. Changes in the FDIC indemnification asset are recorded in the noninterest income section of the consolidated statements of income.