OTHER REAL ESTATE OWNED AND OTHER REPOSSESSED ASSETS (Tables)

3 Months Ended

Mar. 31, 2015

Real estate owned and other repossessed assets at March 31, 2015 and March 31, 2014 were as follows:

	March 31, 2015			December 31, 2014
	(Dollars in thousands)
Real estate owned and other repossessed assets	$	4,363		$	4,890
Valuation allowance		(1,244	)		(1,423	)
End of period	$	3,119		$	3,467

Activity in the valuation allowance was as follows:

	March 31, 2015			March 31, 2014
	(Dollars in thousands)
Beginning of year	$	1,423		$	4,059
Additions charged to expense		80			292
Reductions due to sales		(259	)		(763	)
End of period	$	1,244		$	3,588

Expenses related to foreclosed and repossessed assets include:

	Three Months Ended
	March 31, 2015		March 31, 2014
	(Dollars in thousands)
Net (gain) loss on sales	$	10	$	91
Provision for unrealized losses, net		80		292
Operating expenses, net of rental income		141		213
Total expenses	$	231	$	596