6. Other Real Estate Owned

12 Months Ended

Dec. 31, 2015

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.

United Bancshares, Inc. and Subsidiary

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

December 31, 2015 and 2014

The following schedule reflects the components of other real estate owned at December 31, 2015 and 2014:

(in 000’s)	2015	2014	2013
Commercial real estate	$  297	$  191	$  191
Residential real estate	183	373	242
Total	$  480	$  564	$ 433

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

(in 000’s)	Year Ended December 31, 2015	Year Ended December 31, 2014
Beginning Balance	$    564	$   433
Additions, transfers from loans	148	240
Sales	(272)	(96)
	441	577
Write-ups (write-downs)	39	(13)
Ending Balance	$    480	$  564

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

(in 000’s)	Year ended December 31, 2015	Year ended December 31, 2014
Insurance	$  15	$ 21
Legal fees	-	2
Maintenance	-	-
Professional fees	-	-
Real estate taxes	14	20
Utilities	3	4
Transfer-in write-up	(88)	(47)
Impairment charges	49	13
Other	18	8
Total	$11	$  21