6. Other Real Estate Owned

12 Months Ended

Dec. 31, 2013

Notes

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, 2013 and 2012:

(in 000’s)	2013	2012
Commercial real estate	$191	$206
Residential real estate	242	569
Total	$433	$775

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

(in 000’s)	Year Ended December 31, 2013	Year Ended December 31, 2012
Beginning Balance	$775	$1,285
Additions, transfers from loans	-	156
Sales	(185)	(434)
	590	1,007
Less: write-downs	(157)	(232)
Ending Balance	$433	$775

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

(in 000’s)	Year ended December 31, 2013	Year ended December 31, 2012
Insurance	$16	$24
Legal fees	-	5
Maintenance	9	3
Professional fees	-	8
Real estate taxes	24	99
Utilities	5	21
Transfer-in write-up	-	(43)
Impairment charges	157	232
Total	$211	$349