OTHER REAL ESTATE OWNED ("OREO")

3 Months Ended

Mar. 31, 2016

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

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, 2016 and December 31, 2015, OREO totaled $2.5 million and $2.8 million, respectively. At March 31, 2016 and December 31, 2015, $0.1 million and $0.2 million, respectively, of OREO was comprised of residential real estate; the remainder was commercial real estate. Also as of March 31, 2016 and December 31, 2015, $0.5 million of consumer mortgage loans collateralized by residential real estate were in the process of foreclosure. OREO excludes bank-owned property held for Company use at March 31, 2016 and December 31, 2015.