7. Other Real Estate Owned

9 Months Ended

Sep. 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	Nine Months Ended	Nine Months Ended
	September 30, 2018	September 30, 2017	September 30, 2018	September 30, 2017
Beginning balance	$ 402	$ 447	$ 626	$ 447
Additions, transfers from loans	-	-	-	-
Sales	(10)	-	(229)	-
	392	447	397	447
Write-ups (downs)	-	-	(5)	-
Ending Balance	$ 392	$ 447	$ 392	$ 447

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

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

(in 000's)	September 30, 2018	December 31, 2017
Commercial real estate	$ 317	$ 317
Residential real estate	75	309
Total	$ 392	$ 626

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

	Three  Months Ended	Three  Months Ended	Nine Months Ended	Nine Months Ended
(in 000's)	September 30, 2018	September 30, 2017	September 30, 2018	September 30, 2017
Insurance	$ 4	$ -	$ 10	$ 7
Legal Fees	-	-	-	-
Professional fees	1	-	1	5
Real estate taxes	4	14	12	21

Utilities	4	1	6	2
Maintenance	1	13	4	22
Write downs	-	-	5	-
Other	-	-	1	-
Total	$ 14	$ 28	$ 39	$ 57