REAL ESTATE ACQUIRED THROUGH FORECLOSURE

9 Months Ended

Sep. 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:

	September 30,		December 31,
(Dollars in thousands)	2013		2012
Beginning balance, January 1,	$	22,286	$	29,083
Additions		2,262		18,100
Net proceeds from sale of properties		(13,883)		(19,250)
Writedowns		(1,585)		(5,147)
Change in valuation allowance		(221)		(500)
Ending balance	$	8,859	$	22,286

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

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2013		2012		2013		2012
(Dollars in thousands)
Beginning balance	$	721	$	-	$	500	$	-
Provision		365		-		1,957		-
Writedowns and loss on sale		(365)		-		(1,736)		-
Ending balance	$	721	$	-	$	721	$	-

Real estate acquired through foreclosure expense which consists primarily of property management expenses was $452,000 and $638,000 for the three months ended September 30, 2013 and 2012, and $1.3 million and $3.3 million for the nine months ended September 30, 2013 and 2012, respectively.