Property Held For Sale

12 Months Ended

Dec. 31, 2014

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

Property Held For Sale

PROPERTY 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 lower of the related loans recorded investment or 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 in 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 2014 and 2013.

Dollars in thousands	2014			2013
Beginning balance	$	53,392		$	56,172
Acquisitions	2,673			11,805
Capitalized improvements	87			276
Dispositions	(14,852		)	(11,139		)
Valuation adjustments	(3,771		)	(3,722		)
Reclassification of covered loans	—			—
Balance at year end	$	37,529		$	53,392