OTHER REAL ESTATE OWNED

9 Months Ended

Sep. 30, 2014

Real Estate [Abstract]

OTHER REAL ESTATE OWNED

5. OTHER REAL ESTATE OWNED

Other real estate owned is reported at the lower of cost or fair value less estimated disposal costs, determined on the basis of current appraisals, comparable sales, and other estimates of value obtained principally from independent sources. Any excess of the loan balance at the time of foreclosure over the fair value of the real estate held as collateral is treated as a charge-off against the allowance for loan losses. Any subsequent declines in value are charged to earnings. Transactions in other real estate owned are summarized below (in thousands):

	September 30,			December 31,
	2014			2013
Balance—beginning of period	$	7,404		$	8,195
Additions		771			3,901
Sales		(3,265	)		(4,076	)
Write downs		(309	)		(616	)
Balance—end of period	$	4,601		$	7,404