OTHER REAL ESTATE OWNED (“OREO”)

3 Months Ended

Mar. 31, 2015

OTHER REAL ESTATE OWNED ("OREO") [Abstract]

OTHER REAL ESTATE OWNED ("OREO")

7.OTHER REAL ESTATE OWNED (“OREO”)

At the time of foreclosure, real estate is recorded at fair market value based on appraised value less estimated costs to sell, such as realtor, legal and recording fees and expenses. Subsequent to foreclosure, properties are appraised annually and adjusted to the lower of carrying amount or fair market value less estimated costs to sell. At March 31, 2015 and December 31, 2014, OREO totaled $2.8 million and $3.1 million, respectively.At March 31, 2015, the Company $855 thousand of OREO was comprised of residential real estate foreclosed properties.Also as of March 31, 2015 $2.0 million of consumer mortgage loans collateralized by residential real estate property were in the process of foreclosure according to local requirements of the applicable jurisdictions.