OTHER REAL ESTATE OWNED AND OTHER REPOSSESSED ASSETS (Tables)

9 Months Ended

Sep. 30, 2016

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

	September 30, 2016			December 31, 2015
	(Dollars in thousands)
Real estate owned and other repossessed assets	$	2,796		$	3,956
Valuation allowance		(1,003	)		(1,229	)
End of period	$	1,793		$	2,727

Activity in the valuation allowance was as follows:

	Three Months Ended					Nine Months Ended
	September 30, 2016		September 30, 2015			September 30, 2016			September 30, 2015
	(Dollars in thousands)
Beginning of period	$	1,001	$	1,195		$	1,229		$	1,423
Additions charged to expense		1		39			(25	)		162
Reductions due to sales		1		(44	)		(201	)		(395	)
End of period	$	1,003	$	1,190		$	1,003		$	1,190

Expenses related to foreclosed and repossessed assets include:

	Three Months Ended					Nine Months Ended
	September 30, 2016			September 30, 2015		September 30, 2016			September 30, 2015
	(Dollars in thousands)
Net (gain) loss on sales	$	(1	)	$	80	$	101		$	149
Provision for unrealized losses, net		1			39		(25	)		162
Operating expenses, net of rental income		41			134		190			293
Total expenses	$	41		$	253	$	266		$	604