7. Other Real Estate Owned

9 Months Ended

Sep. 30, 2015

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, 2015	September 30, 2014	September 30, 2015	September 30, 2014
Beginning balance	$757	$420	$564	$433
Additions, transfers from loans	-	240	149	240
Sales	(38)	(29)	(83)	(29)
	715	631	630	644
Write-ups (downs)	-	-	89	(13)
Ending Balance	$719	$631	$719	$631

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

(in 000's)	September 30, 2015	December 31, 2014
Commercial real estate	$335	$191
Residential real estate	384	373
Total	$719	$564

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

	Three Months Ended	Three Months Ended	Nine Months Ended	Nine Months Ended
(in 000's)	September 30, 2015	September 30, 2014	September 30, 2015	September 30, 2014
Insurance	$4	$5	$13	$16
Professional fees	-	2	-	2
Real estate taxes	4	3	10	14
Utilities	1	1	2	3
Other	1	6	11	6
Transfer-in write-up	-	(47)	(89)	(47)
Impairment charges (net)	-	-	-	13
Total {verbose}	$10	$(30)	$(53)	$7