Other Real Estate Assets Owned (OREO)

12 Months Ended

Dec. 31, 2015

Banking and Thrift [Abstract]

Other Real Estate Owned (OREO)

Other Real Estate Owned (OREO)

At December 31, 2015 and 2014, OREO balances were$3.3 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)	December 31, 2015			December 31, 2014
Balance at the beginning of year, net	$	4,051		$	3,424
Transfers from loans and to premises and equipment, net	287			3,301
Sales proceeds	(814		)	(2,663		)
Loss on disposition	(100		)	(14		)
Less valuation adjustments	(79		)	3
Balance at the end of year, net	$	3,345		$	4,051

Expenses applicable to OREO, were $284,000, $256,000 and $1.5 million as of December 31, 2015, 2014 and 2013, respectively.

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

(Dollars in thousands)	December 31, 2015		December 31, 2014
Real estate loans:
Construction	$	853	$	871
Secured by farmland	—		—
Secured by 1-4 family residential	1,958		1,035
Other real estate loans	534		2,145
Total real estate loans	$	3,345	$	4,051

At December 31, 2015, the Company had one consumer mortgage loan secured by residential real estate for which foreclosure was in process. The amount of this loan was $533,000 at December 31, 2015.