6. Other Real Estate Owned

12 Months Ended

Dec. 31, 2016

Disclosure Text Block [Abstract]

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, 2016 and 2015:

(in 000’s)	2016	2015	2013
Commercial real estate	$ 298	$ 297	$ 191
Residential real estate	149	183	242
Total	$ 447	$ 480	$ 433

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

(in 000’s)	Year Ended December 31, 2016	Year Ended December 31, 2015
Beginning Balance	$ 480	$ 564
Additions, transfers from loans	-	148
Sales	(33)	(271)
	496	441
Write-ups (write-downs)	-	39
Ending Balance	$ 447	$ 480

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

(in 000’s)	Year ended December 31, 2016	Year ended December 31, 2015
Insurance	$ 23	$ 15
Legal fees	16	-
Foreclosure fees	56	-
Professional fees	4	-
Real estate taxes	21	14
Utilities	2	3
Transfer-in write-up	-	(88)
Impairment charges	-	49
Other	4	18
Total	$ 126	$ 11