Other Real Estate Owned, Net

12 Months Ended

Dec. 31, 2016

Other Real Estate Owned, Net

Note 8. 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)	2016			2015
Balance, beginning of year	$	621		$	626
Provision for losses		53			288
Charge-offs		(201	)		(293	)
Balance, end of period	$	473		$	621

Expenses applicable to OREO include the following:

	Years ended
	December 31,
(Dollars in thousands)	2016		2015
Net loss on sales of real estate	$	74	$	107
Provision for losses		53		288
Operating expenses, net of income		93		68
Total expenses	$	220	$	463

The following table details the properties included in OREO as of December 31, 2016 and December 31, 2015. There were no collateralized consumer residential mortgage loans in the process of foreclosure as of December 31, 2016.

	As of December 31, 2016				As of December 31, 2015
	No. of		Carrying		No. of		Carrying
(Dollars in thousands)	Properties		Value		Properties		Value
Residential		2	$	891		3	$	540
Land lots		7		547		7		413
Convenience store		1		59		2		191
Restaurant		1		55		1		55
Commerical properties		3		942		3		671
Total		14	$	2,494		16	$	1,870

Included in other assets as of December 31, 2016 and 2015, is one residential property purchased in 2013 from a related party with a value of $708 thousand and a former branch, which was closed April 30, 2015, with a value of $403 thousand.