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Other Real Estate Owned (OREO)
 3 Months Ended
Mar. 31, 2015
Banking and Thrift [Abstract]  
Other Real Estate Owned (OREO)
Note 5. Other Real Estate Owned (OREO)

At March 31, 2015 and December 31, 2014, OREO totaled $1.9 million. OREO is primarily comprised of residential lots, raw land, non-residential properties and residential properties, and are located primarily in the Commonwealth of Virginia. Changes in the balance for OREO are as follows (in thousands):

 

     For the three
months ended
March 31,
2015		      For the year
ended
December 31,
2014		  

Balance at the beginning of year, gross

    $ 2,263       $ 4,695   

Transfers in

      228         139   

Charge-offs

      (250 )       (1,302 ) 

Sales proceeds

      (224 )       (1,502 ) 

Gain on disposition

Deferred gain recognized

     

 

 57

—  

   

  

     

 

 307

(73

   

) 

Depreciation

      —           (1 ) 
  

 

 

     

 

 

  

Balance at the end of period, gross

 $ 2,074    $ 2,263   

Less: valuation allowance

   (125 )    (375 ) 
  

 

 

     

 

 

  

Balance at the end of period, net

 $ 1,949    $ 1,888   
  

 

 

     

 

 

  

At March 31, 2015, the carrying amount of residential real estate properties included in OREO was $228 thousand. There were no residential real estate properties included in OREO at December 31, 2014. The recorded investment of consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings were in process was $87 thousand as of March 31, 2015.

Changes in the valuation allowance are as follows (in thousands):

 

    

For the three

months ended

      For the year
ended		  
     March 31,      March 31,      December 31,  
     2015      2014      2014  

Balance at beginning of year

    $ 375       $ 1,665       $ 1,665   

Provision for losses

      —           23         12   

Charge-offs, net

      (250 )       (2 )       (1,302 ) 
  

 

 

     

 

 

     

 

 

  

Balance at end of period

 $ 125    $ 1,686    $ 375   
  

 

 

     

 

 

     

 

 

  

Net expenses applicable to OREO, other than the provision for losses, were $21 thousand and $9 thousand for the three months ended March 31, 2015 and 2014, respectively and $81 thousand for the year ended December 31, 2014.