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Other Real Estate Owned (OREO)
 9 Months Ended
Sep. 30, 2015
Banking and Thrift [Abstract]  
Other Real Estate Owned (OREO)

Note 5. Other Real Estate Owned (OREO)

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 nine
months ended		      For the year
ended		  
     September 30,      December 31,  
     2015      2014  

Balance at the beginning of year, gross

    $ 2,263       $ 4,695   

Transfers in

      1,384         139   

Charge-offs

      (375 )       (1,302 ) 

Sales proceeds

      (354 )       (1,502 ) 

Gain on disposition

      72         307   

Deferred gain recognized

      —           (73 ) 

Depreciation

      —           (1 ) 
  

 

 

     

 

 

  

Balance at the end of period, gross

    $ 2,990       $ 2,263   

Less: valuation allowance

      (230 )       (375 ) 
  

 

 

     

 

 

  

Balance at the end of period, net

    $ 2,760       $ 1,888   
  

 

 

     

 

 

  

At September 30, 2015, the carrying amount of residential real estate properties included in OREO was $239 thousand. There were no residential real estate properties included in OREO at December 31, 2014. The Bank did not have any consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings were in process as of September 30, 2015.

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

 

    

For the nine

months ended

      For the year
ended		  
     September 30,
2015		      September 30,
2014		      December 31,
2014		  

Balance at beginning of year

    $ 375       $ 1,665       $ 1,665   

Provision for losses

      230         93         12   

Charge-offs, net

      (375 )       (1,302 )       (1,302 ) 
  

 

 

     

 

 

     

 

 

  

Balance at end of period

    $ 230       $ 456       $ 375   
  

 

 

     

 

 

     

 

 

  

Net expenses applicable to OREO, other than the provision for losses, were $101 thousand and $79 thousand for the nine months ended September 30, 2015 and 2014, respectively and $81 thousand for the year ended December 31, 2014.