5.	FORECLOSED REAL ESTATE

At December 31, 2013, foreclosed assets consist of one townhouse construction development project, one commercial property and one residential property held for sale.

Foreclosed real estate is presented net of an allowance for losses. An analysis of the allowance for losses on foreclosed real estate is as follows:

 

		Years Ended December 31,
		2013				2012				2011
		(In thousands)
Balance at beginning of year		$	515			$	638			$	413
Provision for losses			413				418				241
Charge-offs			(53	)			(541	)			(16	)
Balance at end of year		$	875			$	515			$	638

Expenses applicable to foreclosed real estate include the following:

 

		Years Ended December 31,
		2013				2012				2011
		(In thousands)
Net gain on sales		$	(68	)		$	(33	)		$	(230	)
Provision for losses			413				418				241
Operating expenses, net of rental income			134				214				317
Total foreclosed real estate expenses		$	479			$	599			$	328