OTHER REAL ESTATE OWNED AND OTHER REPOSSESSED ASSETS (Tables)

6 Months Ended

Jun. 30, 2016

Real estate owned and other repossessed assets at June 30, 2016 and December 31, 2015 were as follows:

	June 30, 2016			December 31, 2015
	(Dollars in thousands)
Real estate owned and other repossessed assets	$	2,617		$	3,956
Valuation allowance		(1,001	)		(1,229	)
End of period	$	1,616		$	2,727

Activity in the valuation allowance was as follows:

	Three Months Ended						Six Months Ended
	June 30, 2016			June 30, 2015			June 30, 2016			June 30, 2015
	(Dollars in thousands)
Beginning of period	$	1,124		$	1,244		$	1,229		$	1,423
Additions charged to expense		(27	)		42			(26	)		123
Reductions due to sales		(96	)		(91	)		(202	)		(351	)
End of period	$	1,001		$	1,195		$	1,001		$	1,195

Expenses related to foreclosed and repossessed assets include:

	Three Months Ended					Six Months Ended
	June 30, 2016			June 30, 2015		June 30, 2016			June 30, 2015
	(Dollars in thousands)
Net (gain) loss on sales	$	90		$	60	$	102		$	69
Provision for unrealized losses, net		(27	)		42		(26	)		123
Operating expenses, net of rental income		77			18		149			159
Total expenses	$	140		$	120	$	225		$	351