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Other Real Estate Owned
 6 Months Ended
Jun. 30, 2014
Banking And Thrift [Abstract]  
Other Real Estate Owned

9. OTHER REAL ESTATE OWNED

Other real estate and certain other assets acquired in foreclosure are reported at the lower of the investment in the loan or fair value of the property, less estimated costs to sell. The following table summarizes foreclosed property activity as of the six-months ended June 30, 2014 and 2013:

 

     June 30, 2014  
     FUSB     ALC     Total  
     (Dollars in Thousands)  

Beginning balance

    $ 8,463      $ 847      $ 9,310   

Transfers from loans

      4,020        232        4,252   

Sales proceeds

      (2,956 )      (151 )      (3,107 ) 

Gross gains

      230        —          230   

Gross losses

      (127 )      (58 )      (185 ) 
  

 

 

    

 

 

    

 

 

  

Net gains (losses)

      103        (58 )      45   

Impairment

      (146 )      (47 )      (193 ) 
  

 

 

    

 

 

    

 

 

  

Ending balance

    $   9,484      $    823      $ 10,307   
  

 

 

    

 

 

    

 

 

  

 

     June 30, 2013  
     FUSB     ALC     Total  
     (Dollars in Thousands)  

Beginning balance

    $ 11,089      $ 2,197      $ 13,286   

Transfers from loans

      1,735        263        1,998   

Sales proceeds

      (1,011 )      (830 )      (1,841 ) 

Gross gains

      51        21        72   

Gross losses

      (109 )      (667 )      (776 ) 
  

 

 

    

 

 

    

 

 

  

Net losses

      (58 )      (646 )      (704 ) 

Impairment

      (153 )      (209 )      (362 ) 
  

 

 

    

 

 

    

 

 

  

Ending balance

    $ 11,602      $ 775      $ 12,377   
  

 

 

    

 

 

    

 

 

  

Valuation adjustments are primarily recorded in other non-interest expense; adjustments are also recorded as a charge to the allowance for loan losses if incurred within 60 days after the date of transfer from loans. Valuation adjustments are primarily post-foreclosure write-downs that are a result of continued declining property values based on updated appraisals or other indications of value, such as offers to purchase.