7. Property Held For Sale

12 Months Ended

Dec. 31, 2013

Property, Plant and Equipment Assets Held-for-sale Disclosure [Abstract]

Porperty Held For Sale

Property held for sale consists of premises qualifying as held for sale under ASC Topic 360 Property, Plant, and Equipment, and of real estate acquired through foreclosure on loans secured by such real estate.  Qualifying premises are transferred to property held for sale at the lower of carrying value or estimated fair value less anticipated selling costs.  Foreclosed property is recorded at the estimated fair value less anticipated selling costs based upon the property’s appraised value at the date of foreclosure, with any difference between the fair value of foreclosed property and the carrying value of the related loan charged to the allowance for loan losses.  We perform periodic valuations of property held for sale subsequent to transfer.  Changes in value subsequent to transfer are recorded in noninterest expense.  Gains or losses not previously recognized resulting from the sale of property held for sale is recognized on the date of sale and is included noninterest expense.  Depreciation is not recorded on property held for sale.  Expenses incurred in connection with operating foreclosed properties are charged to noninterest expense.

The following table presents the activity of property held for sale during 2013 and 2012.

Dollars in thousands	2013			2012
Beginning balance	$	56,172		$	63,938
Acquisitions		11,805			8,352
Capitalized improvements		276			942
Dispositions		(11,139	)		(9,777)
Valuation adjustments		(3,722	)		(6,862)
Reclassification of covered loans		-			(421)
Balance at year end	$	53,392		$	56,172