6. Other Real Estate Owned

12 Months Ended

Dec. 31, 2014

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, 2014 and 2013:

(in 000’s)	2014	2013
Commercial real estate	$191	$191
Residential real estate	373	242
Total	$564	$433

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

(in 000’s)	Year Ended December 31, 2014	Year Ended December 31, 2013
Beginning Balance	$433	$775
Additions, transfers from loans	240	-
Sales	(96)	(185)
	577	590
Less: write-downs	(13)	(157)
Ending Balance	$564	$433

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

(in 000’s)	Year ended December 31, 2014	Year ended December 31, 2013
Insurance	$21	$16
Legal fees	2	-
Maintenance	-	9
Professional fees	-	-
Real estate taxes	20	24
Utilities	4	5
Transfer-in write-up	(47)	-
Impairment charges	13	157
Other	8	-
Total	$21	$211