Other Real Estate Owned

3 Months Ended

Mar. 31, 2018

Banking and Thrift [Abstract]

Other Real Estate Owned

OTHER REAL ESTATE OWNED

Assets acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at fair value, less cost to sell, at the date of foreclosure, establishing a new cost basis. Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value less cost to sell. Revenue and expenses from operations, changes in the valuation allowance and any direct writedowns are included in net expenses from foreclosed assets. At March 31, 2018, other real estate owned consists of one commercial real estate property that the Company foreclosed on during the three months ended March 31, 2018. The balance was $3.6 million as of March 31, 2018. There was no balance as of December 31, 2017.

Expenses applicable to foreclosed assets were $18,000 during the quarter ending March 31, 2018. There were no expenses for the quarter ended March 31, 2017.