Other Real Estate Owned

6 Months Ended

Jun. 30, 2015

Other real estate owned includes property acquired through foreclosure or deed-in-lieu of foreclosure and are included in "other assets" in the consolidated balance sheets. Changes in other real estate owned are as follows (in thousands):



	Six Months Ended June 30,
	2015			2014
Balance, beginning of year	$	1,370		1,463
Additions	99			452
Additions due to merger	—			262
Reductions due to sales	(105		)	(266	)
Reductions due to valuation write downs	—			(5	)
Balance, end of period	$	1,364		1,906

Other real estate owned at June 30, 2015 and December 31, 2014 consisted of (dollars in thousands):



	June 30, 2015		December 31, 2014
Commercial real estate	$	1,265	$	1,265
Residential real estate	99		105
	$	1,364	$	1,370

The total recorded investment in residential consumer mortgage loans secured by residential real estate that was in the process of foreclosure at June 30, 2015 was $333,000.

- Definition

The entire disclosure for real estate owned (as defined). Generally, the largest component of real estate owned by lenders is assets taken in settlement of troubled loans through surrender or foreclosure. Real estate investments, real estate loans that qualify as investments in real estate, and premises that are no longer used in operations may also be included in real estate owned.

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