FORECLOSED ASSETS

6 Months Ended

Jun. 30, 2014

Banking and Thrift [Abstract]

FORECLOSED ASSETS

NOTE 5 – FORECLOSED ASSETS

Real estate and other property acquired through, or in lieu of, loan foreclosure are initially recorded at fair value (after deducting estimated costs to sell) at the date of foreclosure, establishing a new cost basis. Costs related to development and improvement of property are capitalized, whereas costs related to holding property are expensed. After foreclosure, valuations are periodically performed by management, and the real estate or other property is carried at the lower of carrying amount or fair value less estimated costs to sell. Revenue and expenses from operations of foreclosed assets and changes in any valuation allowance are included in loss on foreclosed assets.

A summary of activity in foreclosed assets is as follows:

	Three months ended						Six months ended
	June 30,						June 30,
($000s)	2014			2013			2014			2013
Balance at beginning of period	$	1,677		$	1,822		$	1,750		$	1,774
Transfer of loans at net realizable value to foreclosed assets		50			132			285			409
Sale proceeds		(449	)		(510	)		(761	)		(651	)
Loans made on sale of foreclosed assets		—			—			—			(107	)
Net gain (loss) from sale of foreclosed assets		(12	)		41			(8	)		60
Provision for write-down charged to operations		—			(149	)		—			(149	)
Balance at end of period	$	1,266		$	1,336		$	1,266		$	1,336