7. Other Real Estate Owned

9 Months Ended

Sep. 30, 2017

Disclosure Text Block [Abstract]

7. Other Real Estate Owned

7. Other Real Estate Owned

Other real estate owned (“OREO”) consists of properties acquired as a result of deed in-lieu-of foreclosure and foreclosures. Properties or other assets are classified as OREO and are reported at the lower of carrying value or fair value, less estimated costs to sell. Costs relating to the development or improvement of assets are capitalized, and costs relating to holding the property are charged to expense. Activity in other real estate owned for the periods was as follows:

(in 000's)	Three  Months Ended	Three  Months Ended	Nine Months Ended	Nine Months Ended
	September 30, 2017	September 30, 2016	September 30, 2017	September 30, 2016
Beginning balance	$  447	$  447	$  447	$  480
Additions, transfers from loans	-	-	-	-
Sales	-	-	-	(33)
	447	447	447	447
Write-ups	-	-	-	-
Ending Balance	$447	$   447	$  447	$ 447

There were no loans in the process of foreclosure at September 30, 2017 and December 31, 2016.

The following schedule reflects the components of other real estate owned:

(in 000's)	September 30, 2017	December 31, 2016
Commercial real estate	$  298	$ 298
Residential real estate	149	149
Total	$  447	$ 447

The following table details the components of net expense (income) of other real estate owned:

	Three  Months Ended	Three  Months Ended	Nine Months Ended	Nine Months Ended
(in 000's)	September 30, 2017	September 30, 2016	September 30, 2017	September 30, 2016
Insurance	$                    -	$ 3	$  7	$ 9
Legal fees	-	-		16
Foreclosure expense	-	56		56
Professional fees		-	5	4
Real estate taxes	14	6	21	16
Utilities	1	1	2	2
Maintenance	13	-	22	-
Other	-	-	-	1
Total	$                28	$ 66	$                 57	$ 104