Other Real Estate Assets Owned (OREO)

6 Months Ended

Jun. 30, 2015

Other Real Estate [Abstract]

Other Real Estate Owned (OREO)

Other Real Estate Owned (OREO)

At June 30, 2015 and December 31, 2014, OREO balances were $3.4 million and $4.1 million, respectively. OREO is primarily comprised of residential properties and non-residential properties, and are located primarily in the state of Virginia. Changes in the balance for OREO, net of valuation allowances, are as follows:

(Dollars in thousands)	June 30, 2015			December 31, 2014
Balance at the beginning of year, net	$	4,051		$	3,424
Transfers between loans and other real estate owned	—			3,301
Sales proceeds	(594		)	(2,663		)
Loss on disposition	(35		)	(14		)
Less valuation adjustments	(20		)	3
Balance at the end of year, net	$	3,402		$	4,051

Expenses applicable to OREO, were $25,000 and $12,000 during the three months ended June 30, 2015 and 2014, respectively and $92,000 and $179,000 during the six months ended June 30, 2015 and 2014, respectively.

The major classifications of OREO in the consolidated balance sheets at June 30, 2015 and December 31, 2014 were as follows:

(Dollars in thousands)	June 30, 2015		December 31, 2014
Real estate loans:
Construction	$	853	$	871
Secured by farmland	—		—
Secured by 1-4 family residential	1,035		1,035
Other real estate loans	1,514		2,145
Total real estate loans	$	3,402	$	4,051

At June 30, 2015, the Company had $250,000 in one consumer mortgage loan secured by residential real estate for which foreclosure was in process. At December 31, 2014, there were no consumer mortgage loans secured by residential real estate for which foreclosure was in process.