Other Real Estate Owned

6 Months Ended

Jun. 30, 2019

Other Real Estate Owned

6. 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, 2019		June 30, 2018			June 30, 2019			June 30, 2018
Beginning balance	$	236	$	569		$	392		$	626
Additions, transfers from loans		-		-			-			-
Sales		-		(162	)		(156	)		(219	)
		236		407			236			407
Write-ups (downs)		-		(5	)		-			(5	)
Ending Balance	$	236	$	402		$	236		$	402

There were no loans in the process of foreclosure at June 30, 2019 and December 31, 2018.

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

(in 000's)	June 30, 2019		December 31, 2018
Commercial real estate	$	161	$	168
Residential real estate		75		224
Total	$	236	$	392