OTHER REAL ESTATE OWNED AND OTHER REPOSSESSED ASSETS

3 Months Ended

Mar. 31, 2016

Real estate owned and other repossessed assets at March 31, 2016 and December 31, 2015 were as follows:

	March 31, 2016			December 31, 2015
	(Dollars in thousands)
Real estate owned and other repossessed assets	$	2,970		$	3,956
Valuation allowance		(1,124	)		(1,229	)
End of period	$	1,846		$	2,727

Activity in the valuation allowance was as follows:

	Three Months Ended
	March 31, 2016			March 31, 2015
	(Dollars in thousands)
Beginning of period	$	1,229		$	1,423
Additions charged to expense		1			80
Reductions due to sales		(106	)		(259	)
End of period	$	1,124		$	1,244

Expenses related to foreclosed and repossessed assets include:

	Three Months Ended
	March 31, 2016		March 31, 2015
	(Dollars in thousands)
Net (gain) loss on sales	$	12	$	10
Provision for unrealized losses, net		1		80
Operating expenses, net of rental income		72		141
Total expenses	$	85	$	231