7. Other Real Estate Owned

9 Months Ended

Sep. 30, 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	Nine Months Ended	Nine Months Ended
	September 30, 2016	September 30, 2015	September 30, 2016	September 30, 2015
Beginning balance	$  447	$  757	$  480	$    564
Additions, transfers from loans	-	-	-	149
Sales	-	(38)	(33)	(83)
	447	719	447	630
Write-ups	-	-	-	89
Ending Balance	$   447	$  719	$ 447	$   719

There were no loans in the process of foreclosure at September 30, 2016 and December 31, 2015.

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

(in 000's)	September 30, 2016	December 31, 2015
Commercial real estate	$  316	$ 297
Residential real estate	131	183
Total	$  447	$ 480

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, 2016	September 30, 2015	September 30, 2016	September 30, 2015
Insurance	$3	$4	$9	$13
Legal fees	-	-	16	-
Foreclosure expense	56	-	56	-
Professional fees	-	-	4	-
Real estate taxes	6	4	16	10
Utilities	1	1	2	2
Transfer-in write-up	-	-	-	(89)
Other	-	1	1	11
Total	$66	$10	$104	$(53)