7. Other Real Estate Owned

3 Months Ended

Mar. 31, 2018

Notes

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
	March 31, 2018	March 31, 2017
Beginning balance	$ 626	$ 447
Additions, transfers from loans	-	-
Sales	(57)	-
	569	447
Write-ups (Write-downs)	-	-
Ending Balance	$ 569	$ 447

There were no loans in the process of foreclosure at March 31, 2018 and December 31, 2017.

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

(in 000's)	March 31, 2018	December 31, 2017
Commercial real estate	$ 316	$ 317
Residential real estate	253	309
Total	$ 569	$ 626

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

	Three  Months Ended	Three  Months Ended
(in 000's)	March 31, 2018	March 31, 2017
Insurance	$ 5	$ 4
Professional fees	-	5
Real estate taxes	4	3
Maintenance	2	9
Utilities	2	-
Transfer-in write-up	-	-
Impairment charges (net)	-	-
Other	1	-
Total	$ 14	$ 21