REAL ESTATE ACQUIRED THROUGH FORECLOSURE

6 Months Ended

Jun. 30, 2013

Real Estate [Abstract]

Real Estate Disclosure [Text Block]

5. REAL ESTATE ACQUIRED THROUGH FORECLOSURE

A summary of the real estate acquired through foreclosure activity is as follows:

	June 30,		December 31,
(Dollars in thousands)	2013		2012
Beginning balance	$	22,286	$	29,083
Additions		1,951		18,100
Sales		(8,577)		(19,250)
Writedowns		(1,270)		(5,147)
Change in valuation allowance		(221)		(500)
Ending balance	$	14,169	$	22,286

A summary of the real estate acquired through foreclosure valuation allowance activity is as follows:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2013		2012		2013		2012
(Dollars in thousands)
Beginning balance	$	972	$	-	$	500	$	-
Provision		532		-		1,592		-
Writedowns and loss on sale		(783)		-		(1,371)		-
Ending balance	$	721	$	-	$	721	$	-

Real estate acquired through foreclosure expense which consists primarily of property management expenses was $524,000 and $2.3 million for the three months ended June 30, 2013 and 2012, and $818,000 and $2.7 million for the six months ended June 30, 2013 and 2012, respectively.