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Other Real Estate Owned
 6 Months Ended
Jun. 30, 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 six months ended June 30, 2015 and 2014:

 

 

 

June 30, 2015

 

 

 

FUSB

 

 

ALC

 

 

Total

 

 

 

(Dollars in Thousands)

 

Beginning Balance

 

$

6,997

 

 

$

738

 

 

$

7,735

 

Transfers from loans

 

 

996

 

 

 

118

 

 

 

1,114

 

Sales proceeds

 

 

(1,274

)

 

 

(96

)

 

 

(1,370

)

Gross gains

 

 

4

 

 

 

—

 

 

 

4

 

Gross losses

 

 

(190

)

 

 

(60

)

 

 

(250

)

Net gains (losses)

 

 

(186

)

 

 

(60

)

 

 

(246

)

Impairment

 

 

(24

)

 

 

(41

)

 

 

(65

)

Ending Balance

 

$

6,509

 

 

$

659

 

 

$

7,168

 

 

 

 

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

 

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 June 30, 2015 was $1.1 million. The Company also held $0.5 million in consumer mortgage loans collateralized by residential real estate that were in the process of foreclosure as of June 30, 2015.