OTHER REAL ESTATE OWNED AND OTHER REPOSSESSED ASSETS (Tables)

3 Months Ended

Mar. 31, 2017

Real estate owned and other repossessed assets at March 31, 2017 and December 31, 2016 were as follows:

	March 31, 2017			December 31, 2016
	(Dollars in thousands)
Real estate owned and other repossessed assets	$	1,686		$	2,789
Valuation allowance		(549	)		(1,012	)
End of period	$	1,137		$	1,777

Activity in the valuation allowance was as follows:

	Three Months Ended
	March 31, 2017			March 31, 2016
	(Dollars in thousands)
Beginning of period	$	1,012		$	1,229
Additions charged to expense		(38	)		1
Reductions due to sales		(425	)		(106	)
End of period	$	549		$	1,124

Expenses related to foreclosed and repossessed assets include:

	Three Months Ended
	March 31, 2017			March 31, 2016
	(Dollars in thousands)
Net (gain) loss on sales	$	90		$	12
Provision for unrealized losses (gains), net		(38	)		1
Operating expenses, net of rental income		62			72
Total expenses	$	114		$	85