REAL ESTATE ACQUIRED THROUGH FORECLOSURE

6 Months Ended

Jun. 30, 2014

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)	2014		2013
Beginning balance, January 1,	$	11,657	$	22,286
Additions		1,026		8,713
Net proceeds from sale of properties		(483)		(17,076)
Writedowns		(499)		(2,185)
Change in valuation allowance		(458)		(81)
Ending balance	$	11,243	$	11,657

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

	Three Months Ended				Six Months Ended
(Dollars in thousands)	June 30,				June 30,
	2014		2013		2014		2013
Beginning balance	$	581	$	972	$	581	$	500
Provision		458		532		458		1,592
Writedowns and loss on sale		-		(783)		-		(1,371)
Ending balance	$	1,039	$	721	$	1,039	$	721

Real estate acquired through foreclosure expense which consists primarily of property management expenses and provision expense was $690,000 and $524,000 for the three months ended June 30, 2014 and 2013, and $776,000 and $818,000 for the six months ended June 30, 2014 and 2013, respectively.