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Other Real Estate Owned
 9 Months Ended
Sep. 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 nine months ended September 30, 2015 and 2014:

 

 

 

September 30, 2015

 

 

 

FUSB

 

 

ALC

 

 

Total

 

 

 

(Dollars in Thousands)

 

Beginning Balance

 

$

6,997

 

 

$

738

 

 

$

7,735

 

Transfers from loans

 

 

1,439

 

 

 

263

 

 

 

1,702

 

Sales proceeds

 

 

(2,225

)

 

 

(144

)

 

 

(2,369

)

Gross gains

 

 

4

 

 

 

—

 

 

 

4

 

Gross losses

 

 

(210

)

 

 

(73

)

 

 

(283

)

Net gains (losses)

 

 

(206

)

 

 

(73

)

 

 

(279

)

Impairment

 

 

(44

)

 

 

(89

)

 

 

(133

)

Ending Balance

 

$

5,961

 

 

$

695

 

 

$

6,656

 

 

 

 

September 30, 2014

 

 

 

FUSB

 

 

ALC

 

 

Total

 

 

 

(Dollars in Thousands)

 

Beginning Balance

 

$

8,463

 

 

$

847

 

 

$

9,310

 

Transfers from loans

 

 

4,152

 

 

 

361

 

 

 

4,513

 

Sales proceeds

 

 

(3,113

)

 

 

(214

)

 

 

(3,327

)

Gross gains

 

 

231

 

 

 

4

 

 

 

235

 

Gross losses

 

 

(128

)

 

 

(99

)

 

 

(227

)

Net gains (losses)

 

 

103

 

 

 

(95

)

 

 

8

 

Impairment

 

 

(146

)

 

 

(47

)

 

 

(193

)

Ending Balance

 

$

9,459

 

 

$

852

 

 

$

10,311

 

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. Fair value less estimated cost to sell of foreclosed residential real estate held by the Company was $1.5 million and $1.3 million as of September 30, 2015 and December 31, 2014, respectively. In addition, the Company held $0.1 million in consumer mortgage loans collateralized by residential real estate that were in the process of foreclosure as of both September 30, 2015 and December 31, 2014.