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Other Real Estate Owned and Property Acquired in Settlement of Loans
 3 Months Ended
Mar. 31, 2016
Repossessed Assets [Abstract]  
Other Real Estate Owned and Property Acquired in Settlement of Loans
Other Real Estate Owned and Property Acquired in Settlement of Loans
OREO consists of real estate acquired through foreclosure or deed in lieu thereof, and 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 OREO below carrying value are recognized by a charge to income.
Total OREO and property acquired in settlement of loans decreased $2.4 million during the first three months of 2016 from $16.6 million at December 31, 2015, to $14.2 million at March 31, 2016. At March 31, 2016 and December 31, 2015, OREO and property acquired in settlement of loans represented 43% and 47% of total nonperforming assets, respectively.
The following table summarizes OREO and property acquired in settlement of loans at the periods indicated:
(dollars in thousands)
 
March 31, 2016
 
December 31, 2015
Real estate acquired in settlement of loans
 
$
13,845

 
$
16,251

Property acquired in settlement of loans
 
313

 
332

Total property acquired in settlement of loans
 
$
14,158

 
$
16,583


The following table summarize the changes in real estate acquired in settlement of loans at the periods indicated:
 
 
 
 
 
 
 
For Three Months Ended
(dollars in thousands)
 
March 31, 2016
 
March 31, 2015
Real estate acquired in settlement of loans, beginning of period
 
$
16,251

 
$
20,122

Plus: New real estate acquired in settlement of loans
 
59

 
2,495

Less: Sales of real estate acquired in settlement of loans
 
(1,964
)
 
(1,490
)
Less: Write-downs and net loss on sales charged to expense
 
(501
)
 
(294
)
Real estate acquired in settlement of loans, end of period
 
$
13,845

 
$
20,833


At March 31, 2016, 11 assets with a net carrying amount of $3.4 million were under contract for sale. Estimated losses on these sales, if any, have been recognized in the Consolidated Statements of Operations in the first three months of 2016.
At March 31, 2016, the Company’s recorded investment in mortgage loans collateralized by residential real estate properties that are in the process of foreclosure was $2.8 million and the Company’s OREO balance included $3.2 million of residential real estate.