7. Other Real Estate Owned

3 Months Ended

Mar. 31, 2016

Disclosure Text Block [Abstract]

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
	March 31, 2016			March 31, 2015
Beginning balance	$	480		$	564
Additions, transfers from loans		—			92
Sales		(17	)		—
		463			656
Write-ups (Write-downs)		—			52
Ending Balance	$	463		$	708

There were no loans in the process of foreclosure at March 31, 2016 and December 31, 2015. 

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

(in 000's)	March 31, 2016		December 31, 2015
Commercial real estate	$	297	$	297
Residential real estate		166		183
Total	$	463	$	480

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

	Three  Months Ended		Three  Months Ended
(in 000's)	March 31, 2016		March 31, 2015
Insurance	$	4	$	3
Professional fees		4		5
Real estate taxes		6		3
Utilities		—		1
Transfer-in write-up		—		(52	)
Impairment charges (net)		—		—
Total	$	14	$	(40	)