Other Real Estate Owned, Net

12 Months Ended

Dec. 31, 2015

Other Real Estate Owned, Net

Note 7. Other Real Estate Owned, Net

Other real estate owned (“OREO”) is presented net of a valuation allowance for losses. An analysis of the valuation allowance on OREO is shown below.

	Years ended
	December 31,
(Dollars in thousands)	2015			2014
Balance, beginning of year	$	626		$	538
Provision for losses		288			235
Charge-offs		(293	)		(147	)
Balance, end of period	$	621		$	626

Expenses applicable to OREO include the following:

	Years ended
	December 31,
(Dollars in thousands)	2015		2014
Net loss on sales of real estate	$	107	$	92
Provision for losses		288		235
Operating expenses, net of income		68		131
Total expenses	$	463	$	458

The following table details the properties included in OREO as of December 31, 2015 and December 31, 2014. There were no collateralized consumer residential mortgage loans in the process of foreclosure as of December 31, 2015.

	As of December 31, 2015				As of December 31, 2014
	No. of		Carrying		No. of		Carrying
(Dollars in thousands)	Properties		Value		Properties		Value
Residential		3	$	540		10	$	1,559
Land lots		7		413		13		587
Convenience store		2		191		2		234
Restaurant		1		55		1		107
Commerical properties		3		671		1		304
Total		16	$	1,870		27	$	2,791

Included in other assets as of December 31, 2015, is one residential property purchased in 2013 from a related party with a value of $724 thousand and a former branch, which was closed April 30, 2015, with a value of $403 thousand. Included in other assets as of December 31, 2014 is the aforementioned residential property with a value of $771 thousand.