6. Other Real Estate Owned

12 Months Ended

Dec. 31, 2017

Disclosure Text Block [Abstract]

6. Other Real Estate Owned

6. 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.

The following schedule reflects the components of other real estate owned at December 31, 2017 and 2016:

(in 000’s)
	2017	2016
Commercial real estate	$ 294	$ 298
Residential real estate	332	149
Total	$ 626	$ 447

A summary of the change in other real estate owned follows:

(in 000’s)	Year Ended December 31, 2017	Year Ended December 31, 2016
Beginning Balance	$ 447	$ 480
Additions, transfers from loans	184	-
Sales	-	(33)
Subtotal	631	447
Write-ups (write-downs)	(5)	-
Ending Balance	$ 626	$ 447

The following table details the components of net expense of other real estate owned.

(in 000’s)	Year ended December 31, 2017	Year ended December 31, 2016
Insurance	$ 15	$ 23
Legal fees	-	16
Foreclosure fees	-	56
Maintenance	25	-
Professional fees	3	4
Real estate taxes	22	21
Utilities	3	2
Transfer-in write-up	5	-
Impairment charges	-	-
Other	5	4
Total	$ 78	$ 126