Other Real Estate Owned

12 Months Ended

Dec. 31, 2015

Note 6 - Other real estate owned

At December 31, 2015 and 2014, OREO was $1,965 and $956 respectively. OREO is primarily comprised of residential properties and non-residential properties associated with commercial relationships, and are located in Virginia. As of December 31,2015, the Company held $0 of residential real estate loans in other real estate owned. As of December 31, 2015, there was $0 of consumer mortgage loans secured by residential real estate for which form foreclosure proceeding were in process. The following table represents the changes in OREO balance in 2015 and 2014.


OREO Changes
	Year Ended December 31,
	2015	2014
Balance at the beginning of the year (net)	$956	$1,451
Transfers from Loans	1,425	473
Capitalized costs	25	-
Write-downs to OREO expense	(75)	(167)
Sales	(360)	(780)
(Loss) on sales	(6)	(21)
Balance at the end of the year (net)	$1,965	$956

Note 6 - Other real estate owned (continued)

The following table sets forth the OREO expenses in 2015 and 2014.


OREO Expense
	Year Ended December 31,
	2015	2014
Loss on sales	$6	$21
Write-downs	75	167
Expenses	41	18
Total	$122	$206