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Other Real Estate Owned
 12 Months Ended
Dec. 31, 2014
Banking and Thrift [Abstract]  
Other Real Estate Owned
5. 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 December 31, 2014 and 2013.

 

     December 31, 2014  
     FUSB      ALC      Total  
     (Dollars in Thousands)  

Beginning balance

    $ 8,463       $ 847       $ 9,310   

Transfers from loans

      4,503         394         4,897   

Sales proceeds

      (5,582 )       (288 )       (5,870 ) 
  

 

 

     

 

 

     

 

 

  

Gross gains

   387      4      391   

Gross losses

   (512 )    (159 )    (671 ) 
  

 

 

     

 

 

     

 

 

  

Net gains (losses)

   (125 )    (155 )    (280 ) 

Impairment

   (262 )    (60 )    (322 ) 
  

 

 

     

 

 

     

 

 

  

Ending balance

 $ 6,997    $ 738    $ 7,735   
  

 

 

     

 

 

     

 

 

  
     December 31, 2013  
     FUSB      ALC      Total  
     (Dollars in Thousands)  

Beginning balance

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

Transfers from loans

      1,859         537         2,396   

Sales proceeds

      (3,051 )       (969 )       (4,020 ) 
  

 

 

     

 

 

     

 

 

  

Gross gains

   69      27      96   

Gross losses

   (215 )    (729 )    (944 ) 
  

 

 

     

 

 

     

 

 

  

Net gains (losses)

   (146 )    (702 )    (848 ) 

Impairment

   (1,288 )    (216 )    (1,504 ) 
  

 

 

     

 

 

     

 

 

  

Ending balance

 $ 8,463    $ 847    $ 9,310   
  

 

 

     

 

 

     

 

 

  

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.