OTHER REAL ESTATE OWNED

6 Months Ended

Jun. 30, 2015

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 June 30						Six months ended June 30
	2015			2014			2015			2014
Beginning Balance	$	2,201		$	3,841		$	2,688		$	4,120
Transfer to other real estate owned	207			1,234			363			1,899
Sales — out of other real estate owned	(305		)	(1,336		)	(948		)	(2,176		)
Write-down	(38		)	(16		)	(38		)	(120		)
Ending Balance — June 30	$	2,065		$	3,723		$	2,065		$	3,723

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 June 30						Three months ended June 30
	2015			2014			2015			2014
Beginning Balance	$	(285	)	$	(1,432	)	$	(448	)	$	(1,328	)
Impairments during year	(38		)	(16		)	(38		)	(120		)
Recovery on impairments	—			—			—			—
Reductions	—			1,057			163			1,057
Ending Balance — June 30	$	(323	)	$	(391	)	$	(323	)	$	(391	)

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

	Three months ended June 30						Six months ended June 30
	2015			2014			2015		2014
Write downs	$	38		$	16		$	38	$	120
Losses / (gains) on sales	(5		)	(55		)	6		(82		)
Net loss / (gain)	$	33		$	(39	)	$	44	$	38
Operating expenses	$	58		$	25		$	94	$	92

Foreclosed residential real estate properties included in other real estate and repossessed assets on the Consolidated Balance Sheets totaled $708 and $1,261 at June 30, 2015 and December 31, 2014, respectively. Retail mortgage loans secured by residential real estate properties for which formal foreclosure proceedings are in process according to local requirements totaled $3,621 and $2,653 at June 30, 2015 and December 31, 2104, respectively.