7. Other Real Estate Owned

6 Months Ended

Jun. 30, 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	Six Months Ended	Six Months Ended
	June 30, 2018	June 30, 2017	June 30, 2018	June 30, 2017
Beginning balance	$ 569	$ 447	$ 626	$ 447
Additions, transfers from loans	-	-	-	-
Sales	(162)	-	(219)	-
	407	447	407	447
Write-ups (downs)	(5)	-	(5)	-
Ending Balance	$ 402	$ 447	$ 402	$ 447

There were no loans in the process of foreclosure at June 30, 2018 and December 31, 2017.

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

(in 000's)	June 30, 2018	December 31, 2017
Commercial real estate	$ 317	$ 294
Residential real estate	85	332
Total	$ 402	$ 626

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

	Three  Months Ended	Three  Months Ended	Six Months Ended	Six Months Ended
(in 000's)	June 30, 2018	June 30, 2017	June 30, 2018	June 30, 2017
Insurance	$ 1	$ 4	$ 6	$ 7
Legal Fees	-	-	-	-
Professional fees	-	-	-	-
Real estate taxes	4	4	8	7
Utilities	-	-	2	1
Maintenance	1	1	3	15
Write downs	5	-	5	-
Other	-		1
Total	$ 11	$ 9	$ 25	$ 30