OTHER REAL ESTATE OWNED AND OTHER REPOSSESSED ASSETS (Tables)

9 Months Ended

Sep. 30, 2014

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