9. OTHER REAL ESTATE OWNED

12 Months Ended

Dec. 31, 2016

Notes to Financial Statements

NOTE 9. OTHER REAL ESTATE OWNED

The table below reflects other real estate owned (OREO) activity for 2016 and 2015:

	Other Real Estate Owned
		2016			2015
Balance as of January 1		$	2,127,685		$	3,507,153
Loans transferred to OREO			566,272			125,000
Capital improvements			24,335			98,929
Sale of OREO			(623,249	)		(1,065,792	)
Write down of OREO or losses on sale			(19,074	)		(537,605	)
Balance as of December 31		$	2,075,969		$	2,127,685

At December 31, 2016, the balance of real estate owned includes $121,450 of foreclosed residential real estate properties recorded as a result of obtaining physical possession of the property. At December 31, 2016, the recorded investment of consumer mortgage loans secured by residential real estate properties for which formal foreclosure procedures are in process is $40,377.