OTHER REAL ESTATE OWNED

3 Months Ended

Mar. 31, 2015

OTHER REAL ESTATE OWNED

OTHER REAL ESTATE OWNED

NOTE 5 — OTHER REAL ESTATE OWNED

Other real estate owned is recorded in other assets on the balance sheet.  Activity in other real estate owned was as follows:

	2015			2014
Beginning Balance — January 1	$	2,688		$	4,120
Transfer to other real estate owned	156			665
Sales — out of other real estate owned	(643		)	(840		)
Write-down	—			(104		)
Ending Balance — March 31	$	2,201		$	3,841

The value of the sale amount above is the carrying value of the property when it was sold.

Foreclosed residential real estate properties included in other real estate and repossessed assets on the Consolidated Balance Sheets totaled $889 and $1,261at March 31, 2015 and December 31, 2014, respectively. Retail mortgage loans secured by residential real estate properties for which formal foreclosure proceedings are in process according to local requirements totaled $3,786  and $2,653  at March 31, 2015 and December 31, 2104, respectively.

Activity in the valuation account for other real estate was as follows:

	2015			2014
Beginning Balance — January 1	$	(448	)	$	(1,328	)
Impairments during year	—			(104		)
Recovery on impairments	—			—
Reductions	163			—
Ending Balance — March 31	$	(285	)	$	(1,432	)

Expenses related to foreclosed assets for the period ending March 31 include:

	2015		2014
Write downs	$	—	$	104
Losses / (gains) on sales	11		(27		)
Net loss	$	11	$	77
Operating expenses	$	36	$	67