OTHER REAL ESTATE OWNED AND OTHER REPOSSESSED ASSETS

6 Months Ended

Jun. 30, 2015

Real Estate [Abstract]

OTHER REAL ESTATE OWNED AND OTHER REPOSSESSED ASSETS

7. OTHER REAL ESTATE OWNED AND OTHER REPOSSESSED ASSETS

Real estate owned and other repossessed assets at June 30, 2015 and December 31, 2014 were as follows:

	June 30, 2015			December 31, 2014
	(Dollars in thousands)
Real estate owned and other repossessed assets	$	4,556		$	4,890
Valuation allowance		(1,195	)		(1,423	)
End of period	$	3,361		$	3,467

Activity in the valuation allowance was as follows:

	Three Months Ended						Six Months Ended
	June 30, 2015			June 30, 2014			June 30, 2015			June 30, 2014
	(Dollars in thousands)
Beginning of period	$	1,244		$	3,588		$	1,423		$	4,059
Additions charged to expense		42			146			123			438
Reductions due to sales		(91	)		(171	)		(351	)		(934	)
End of period	$	1,195		$	3,563		$	1,195		$	3,563

Expenses related to foreclosed and repossessed assets include:

	Three Months Ended
	June 30, 2015		June 30, 2014
	(Dollars in thousands)
Net (gain) loss on sales	$	60	$	(104	)
Provision for unrealized losses, net		42		146
Operating expenses, net of rental income		18		137
Total expenses	$	120	$	179

	Six Months Ended
	June 30, 2015		June 30, 2014
	(Dollars in thousands)
Net (gain) loss on sales	$	69	$	(13	)
Provision for unrealized losses, net		123		438
Operating expenses, net of rental income		159		350
Total expenses	$	351	$	775