Other Real Estate Owned and Repossessed Assets

12 Months Ended

Dec. 31, 2015

Other Real Estate Owned and Repossessed Assets [Abstract]

OTHER REAL ESTATE OWNED AND REPOSSESSED ASSETS

NOTE 5 — OTHER REAL ESTATE OWNED AND REPOSSESSED ASSETS

The following table summarizes the composition of other real estate owned and repossessed assets as of the dates noted.

	December 31,
	2015			2014
Residential land lots	$	31,320		$	552,200
Single and multifamily residential real estate		—			62,257
Commercial office space		1,008,900			1,233,000
Commercial land		870,000			710,000
	$	1,910,220		$	2,557,457
Changes in other real estate owned and repossessed assets are presented below:
	2015			2014
Balance at beginning of year	$	2,557,457		$	2,508,170
Repossessed property acquired in settlement of loans		300,000			1,143,000
Proceeds from sales of repossessed property		(582,295	)		(505,263	)
Loss on sale and write-downs of repossessed property, net		(364,942	)		(588,450	)
Balance at end of year	$	1,910,220		$	2,557,457

During 2015, other real estate owned for the Company decreased due to the sale of real estate owned that were purchased from the Bank for proceeds of approximately $455,000, which resulted in a gain of approximately $17,000 to the Company. Real estate owned also decreased due to the sale of two pieces of real estate held by the Bank for proceeds of approximately $143,000, which resulted in a loss of approximately $5,200. In addition, the Company recognized writedowns on real estate owned of approximately $377,000 during 2015. The remaining pieces of real estate owned that were purchased from the Bank are being actively marketed for sale. One piece of real estate was moved to other real estate owned in March for $300,000, and subsequently written down by $30,000. On January 28, 2016, proceeds of $35,332 were received from the sale of one piece of real estate held by the Company. A loss of $4,680 was recognized as a result of this transaction. During 2014, other real estate owned for the Company increased due to the repossession of one property of $809,000, partially offset by the sale of real estate owned that were purchased from the Bank for proceeds of approximately $151,000, which resulted in losses of approximately $3,000 to the Company. In addition, the Company recognized write downs on real estate owned that were purchased from the Bank of approximately $579,000 during 2014.