OTHER REAL ESTATE OWNED AND OTHER REPOSSESSED ASSETS

9 Months Ended

Sep. 30, 2014

Real Estate [Abstract]

OTHER REAL ESTATE OWNED AND OTHER REPOSSESSED ASSETS

8. OTHER REAL ESTATE OWNED AND OTHER REPOSSESSED ASSETS

Real estate owned and other repossessed assets at September 30, 2014 and September 30, 2013 were as follows:

	September 30, 2014			September 30, 2013
	(Dollars in thousands)
Real estate owned and other repossessed assets	$	7,992		$	15,989
Valuation allowance		(3,505	)		(6,674	)
End of period	$	4,487		$	9,315

Activity in the valuation allowance was as follows:

	September 30, 2014			September 30, 2013
	(Dollars in thousands)
Beginning of year	$	4,059		$	6,796
Additions charged to expense		578			1,801
Reductions due to sales		(1,132	)		(1,923	)
End of period	$	3,505		$	6,674

Expenses related to foreclosed and repossessed assets include:

	Three Months Ended September 30, 2014		Three Months Ended September 30, 2013
	(Dollars in thousands)
Net (gain) loss on sales	$	63	$	(69	)
Provision for unrealized losses, net		140		464
Operating expenses, net of rental income		189		354
Total expenses	$	392	$	749

	Nine Months Ended September 30, 2014		Nine Months Ended September 30, 2013
	(Dollars in thousands)
Net (gain) loss on sales	$	50	$	165
Provision for unrealized losses, net		578		1,801
Operating expenses, net of rental income		539		1,140
Total expenses	$	1,167	$	3,106