OTHER REAL ESTATE OWNED

9 Months Ended

Sep. 30, 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:

	Three months ended September 30						Nine months ended September 30
	2015			2014			2015			2014
Beginning Balance	$	2,065		$	3,723		$	2,688		$	4,120
Transfer to other real estate owned	801			220			1,164			2,119
Sales — out of other real estate owned	(429		)	(753		)	(1,377		)	(2,929		)
Write-down	—			—			(38		)	(120		)
Ending Balance — September 30	$	2,437		$	3,190		$	2,437		$	3,190

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

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

	Three months ended September 30						Nine months ended September 30
	2015			2014			2015			2014
Beginning Balance	$	(323	)	$	(391	)	$	(448	)	$	(1,328	)
Impairments during year	—			—			(38		)	(120		)
Recovery on impairments	—			—			—			—
Reductions	37			33			200			1,090
Ending Balance — September 30	$	(286	)	$	(358	)	$	(286	)	$	(358	)

Expenses related to foreclosed assets for the period ending September 30 include:

	Three months ended September 30				Nine months ended September 30
	2015		2014		2015		2014
Write downs	$	—	$	—	$	38	$	120
Losses / (gains) on sales	19		9		25		(73		)
Net loss	$	19	$	9	$	63	$	47
Operating expenses	$	30	$	28	$	124	$	120

Foreclosed residential real estate properties included in other real estate and repossessed assets on the Consolidated Balance Sheets totaled $1,235 and $1,261 at September 30, 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 $2,573 and $2,653 at September 30, 2015 and December 31, 2104, respectively.