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Other Real Estate Owned
 3 Months Ended
Mar. 31, 2015
Banking And Thrift [Abstract]  
Other Real Estate Owned

7.

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 three months ended March 31, 2015 and 2014:

 

 

 

March 31, 2015

 

 

 

FUSB

 

 

ALC

 

 

Total

 

 

 

(Dollars in Thousands)

 

Beginning Balance

 

$

6,997

 

 

$

738

 

 

$

7,735

 

Transfers from loans

 

 

995

 

 

 

63

 

 

 

1,058

 

Sales proceeds

 

 

(40

)

 

 

(66

)

 

 

(106

)

Gross gains

 

—

 

 

—

 

 

—

 

Gross losses

 

 

(3

)

 

 

(46

)

 

 

(49

)

Net gains (losses)

 

 

(3

)

 

 

(46

)

 

 

(49

)

Impairment

 

—

 

 

 

(30

)

 

 

(30

)

Ending Balance

 

$

7,949

 

 

$

659

 

 

$

8,608

 

 

 

 

March 31, 2014

 

 

 

FUSB

 

 

ALC

 

 

Total

 

 

 

(Dollars in Thousands)

 

Beginning Balance

 

$

8,463

 

 

$

847

 

 

$

9,310

 

Transfers from loans

 

 

2,154

 

 

 

166

 

 

 

2,320

 

Sales proceeds

 

 

(1,239

)

 

 

(41

)

 

 

(1,280

)

Gross gains

 

 

147

 

 

 

—

 

 

 

147

 

Gross losses

 

 

(33

)

 

 

(26

)

 

 

(59

)

Net gains (losses)

 

 

114

 

 

 

(26

)

 

 

88

 

Impairment

 

 

(10

)

 

 

(44

)

 

 

(54

)

Ending Balance

 

$

9,482

 

 

$

902

 

 

$

10,384

 

Valuation adjustments are recorded in other non-interest expense and 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. The amount of foreclosed residential real estate that the Company held as of march 31, 2015 was $1.1 million. The Company also held $0.2 million in consumer mortgage loans collateralized by residential real estate that were in the process of foreclosure as of March 31, 2015.