Other Real Estate Owned

6 Months Ended

Jun. 30, 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 six months ended June 30, 2015 and 2014:

(dollars in thousands)	Other Real Estate Owned (1)			Other Real Estate Owned, Covered
Six Months Ended June 30, 2015
Balance at January 1, 2015	$	7,241		$	9,121
Additions		4,579			429
Sales		(2,153	)		(4,580	)
Gains (losses)/Write-downs		(279	)		(217	)
Balance at June 30, 2015	$	9,388		$	4,753
Six Months Ended June 30, 2014
Balance at January 1, 2014	$	7,562		$	13,670
Additions		2,878			7,387
Sales		(2,909	)		(8,113	)
Gains (losses)/Write-downs		(802	)		(1,789	)
Balance at June 30, 2014	$	6,729		$	11,155

(1) Includes repossessed personal property of $0.3 million at June 30, 2015 and $0.4 million at June 30, 2014.

At June 30, 2015, foreclosed residential real estate property included in the table above totaled $1.0 million. At June 30, 2015, consumer mortgage loans collateralized by residential real property that were in the process of foreclosure totaled $8.3 million.

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 June 30, 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.