Other Real Estate Owned and Personal Property Acquired in Settlement of Loans

12 Months Ended

Dec. 31, 2015

Repossessed Assets [Abstract]

Other Real Estate Owned and Personal Property Acquired in Settlement of Loans

Other Real Estate Owned and Personal Property Acquired in Settlement of Loans

OREO consists of real estate acquired through foreclosure or deed in lieu thereof. The property is classified as held for sale. The property is initially carried at fair value based on recent appraisals, less estimated costs to sell. Declines in the fair value of properties included in other real estate below carrying value are recognized by a charge to income.

Total OREO and personal property acquired in settlement of loans decreased $3.8 million from $20.4 million at December 31, 2014, to $16.6 million at December 31, 2015.

The following table summarizes real estate acquired in settlement of loans and personal property acquired in settlement of loans at the periods indicated:

(dollars in thousands)	December 31, 2015		December 31, 2014
Real estate acquired in settlement of loans	$	16,251	$	20,122
Personal property acquired in settlement of loans	332		289
Total property acquired in settlement of loans	$	16,583	$	20,411

The following table summarizes the changes in real estate acquired in settlement of loans at the periods indicated:

	For Year Ended
(dollars in thousands)	December 31, 2015			December 31, 2014
Real estate acquired in settlement of loans, beginning of period	$	20,122		$	28,353
Plus: New real estate acquired in settlement of loans	4,503			4,372
Less: Sales of real estate acquired in settlement of loans	(6,590		)	(11,849		)
Less: Write-downs and net loss on sales charged to expense	(1,784		)	(754		)
Real estate acquired in settlement of loans, end of period	$	16,251		$	20,122

At December 31, 2015, 10 assets with a net carrying amount of $2.0 million were under contract for sale and are primarily expected to close during the first quarter of 2016. Estimated losses on these sales have been recognized in the Consolidated Statements of Operations for 2015. At December 31, 2014, 12 assets with a net carrying amount of $3.4 million were under contract for sale. The sale of these assets closed during 2015, or the contracts were terminated. Estimated losses on these sales were recognized in the Consolidated Statements of Operations for 2014.

At December 31, 2015, the Company’s recorded investment in mortgage loans collateralized by residential real estate properties that

are in the process of foreclosure was $2.2 million and the Company’s OREO balance included $3.2 million of residential real estate.