Other Real Estate Owned

12 Months Ended

Dec. 31, 2016

Note 6 - Other real estate owned

At December 31, 2016 and 2015, OREO was $2,370 and $1,965 respectively. OREO is primarily comprised of residential properties and non-residential properties associated with commercial relationships. As of December 31, 2016, there was $294 of consumer mortgage loans secured by residential real estate, all of which were in the process of foreclosure. As of December 31, 2015, there were no residential real estate loans in other real estate owned. The following table represents the changes in OREO balance in 2016 and 2015.


OREO Changes
	Year Ended December 31,
	2016	2015
Balance at the beginning of the year	$1,965	$956
Transfers from Loans	470	1,425
Capitalized costs	-	25
Valuation adjustments	(45)	(75)
Sales	(21)	(360)
Gain (loss) on sales	1	(6)
Balance at the end of the year	$2,370	$1,965

Note 6 - Other real estate owned (continued)

The following table sets forth the OREO expenses in 2016 and 2015.


OREO Expense
	Year Ended December 31,
	2016	2015
(Gain) loss on sales	$(1)	$6
Valuation adjustments	45	75
Expenses	24	41
Total	$68	$122