OTHER REAL ESTATE OWNED

9 Months Ended

Sep. 30, 2014

OTHER REAL ESTATE OWNED

OTHER REAL ESTATE OWNED

NOTE 5 — OTHER REAL ESTATE OWNED

Other real estate owned is recorded in other assets on the balance sheet. Activity in other real estate owned was as follows:

	Three months ended September 30						Nine months ended September 30
	2014			2013			2014			2013
Beginning Balance	$	3,723		$	5,183		$	4,120		$	6,677
Transfer to other real estate owned	220			816			2,119			2,904
Sales — out of other real estate owned	(753		)	(1,120		)	(2,929		)	(4,155		)
Write-down	—			(95		)	(120		)	(642		)
Ending Balance — September 30	$	3,190		$	4,784		$	3,190		$	4,784

The value of the sale amount above is the carrying value of the property when it was sold.

Activity in the valuation account for other real estate was as follows:

	Three months ended September 30						Nine months ended September 30
	2014			2013			2014			2013
Beginning Balance	$	(391	)	$	(1,353	)	$	(1,328	)	$	(1,672	)
Impairments during year	—			(95		)	(120		)	(642		)
Recovery on impairments	—			—			—			—
Reductions	33			74			1,090			940
Ending Balance — September 30	$	(358	)	$	(1,374	)	$	(358	)	$	(1,374	)

Expenses related to foreclosed assets for the period ending September 30 include:

	Three months ended September 30					Nine months ended September 30
	2014		2013			2014			2013
Write downs	$	—	$	95		$	120		$	642
Losses / (gains) on sales	9		(57		)	(73		)	(286		)
Net loss / (gain)	$	9	$	38		$	47		$	356
Operating expenses	$	28	$	79		$	120		$	290