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REAL ESTATE OWNED, NET
 9 Months Ended
Sep. 30, 2015
Real Estate [Abstract]  
REAL ESTATE OWNED, NET
REAL ESTATE OWNED, NET

The following table presents the changes in REO for the three and nine months ended September 30, 2015 and 2014 (in thousands):
 
Three Months Ended
September 30
 
Nine Months Ended
September 30
 
2015

 
2014

 
2015

 
2014

Balance, beginning of the period
$
6,105

 
$
4,388

 
$
3,352

 
$
4,044

Additions from loan foreclosures
1,085

 
135

 
3,226

 
2,837

Additions from acquisitions
—

 
—

 
2,525

 
—

Additions from capitalized costs
—

 
—

 
298

 
35

Proceeds from dispositions of REO
(906
)
 
(860
)
 
(3,155
)
 
(3,631
)
Gain on sale of REO
113

 
265

 
333

 
680

Valuation adjustments in the period
(34
)
 
—

 
(216
)
 
(37
)
Balance, end of the period
$
6,363

 
$
3,928

 
$
6,363

 
$
3,928


 
 
 
 
 
 
 
 

REO properties are recorded at the estimated fair value of the property, less expected selling costs, establishing a new cost basis.  Subsequently, REO properties are carried at the lower of the new cost basis or updated fair market values, based on updated appraisals of the underlying properties, as received.  Valuation allowances on the carrying value of REO may be recognized based on updated appraisals or on management’s authorization to reduce the selling price of a property.