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Other Real Estate Owned (OREO)
 3 Months Ended
Mar. 31, 2016
Banking and Thrift [Abstract]  
Other Real Estate Owned (OREO)

Note 5.  Other Real Estate Owned (OREO)

OREO was primarily comprised of raw land 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		      For the year
ended		  
     March 31,      December 31,  
     2016      2015  

Balance at the beginning of year, gross

    $ 2,903       $ 2,263   

Transfers in

      37         1,664   

Charge-offs

      (70 )       (381 ) 

Sales proceeds

      (698 )       (717 ) 

Gain on disposition

      94         74   
  

 

 

     

 

 

  

Balance at the end of period, gross

    $ 2,266       $ 2,903   

Less: valuation allowance

      (154 )       (224 ) 
  

 

 

     

 

 

  

Balance at the end of period, net

    $ 2,112       $ 2,679   
  

 

 

     

 

 

  

At March 31, 2016, the carrying amount of residential real estate properties included in OREO was $506 thousand. The carrying amount of residential real estate properties included in OREO at December 31, 2015 was $627 thousand. 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 March 31, 2016.

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,  
     2016      2015      2015  

Balance at beginning of year

    $ 224       $ 375       $ 375   

Provision for losses

      —           —           230   

Charge-offs, net

      (70 )       (250 )       (381 ) 
  

 

 

     

 

 

     

 

 

  

Balance at end of period

    $ 154       $ 125       $ 224   
  

 

 

     

 

 

     

 

 

  

Net expenses applicable to OREO, other than the provision for losses, were $22 thousand and $21 thousand for the three months ended March 31, 2016 and 2015, respectively and $196 thousand for the year ended December 31, 2015.