OTHER REAL ESTATE OWNED

12 Months Ended

Dec. 31, 2018

OTHER REAL ESTATE OWNED

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, 2018 and 2017:

(in 000’s)
	2018		2017
Commercial real estate	$	168	$	294
Residential real estate		224		332
Total	$	392	$	626

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

(in 000’s)	Year Ended December 31, 2018			Year Ended December 31, 2017
Beginning Balance	$	626		$	447
Additions, transfers from loans		-			184
Sales		(229	)		-
Subtotal		397			631
Write-downs		(5	)		(5	)
Ending Balance	$	392		$	626

There was no residential real estate in the process of foreclosure as of December 31, 2018 and 2017.