Other Real Estate Assets Owned (OREO)

3 Months Ended

Mar. 31, 2016

Other Real Estate [Abstract]

Other Real Estate Owned (OREO)

Other Real Estate Owned (OREO)

At March 31, 2016 and December 31, 2015, OREO balances were $3.7 million and $3.3 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)	March 31, 2016			December 31, 2015
Balance at the beginning of year, net	$	3,345		$	4,051
Transfers from loans and to premises and equipment, net	526			287
Sales proceeds	—			(814		)
Loss on disposition	—			(100		)
Less valuation adjustments	(144		)	(79		)
Balance at the end of year, net	$	3,727		$	3,345

Expenses applicable to OREO, were $167,000 and $67,000 during the three months ended March 31, 2016 and 2015, respectively.

The major classifications of OREO in the consolidated balance sheets at March 31, 2016 and December 31, 2015 were as follows:

(Dollars in thousands)	March 31, 2016		December 31, 2015
Real estate loans:
Construction	$	880	$	853
Secured by farmland	—		—
Secured by 1-4 family residential	2,336		1,958
Other real estate loans	511		534
Total real estate loans	$	3,727	$	3,345

At March 31, 2016, the Company had no consumer mortgage loans secured by residential real estate for which foreclosure was in process. At December 31, 2015, the Company had one consumer mortgage loan secured by residential real estate that totaled $530,000 for which foreclosure was in process and subsequently transfered to OREO.