Foreclosed Real Estate

12 Months Ended

Dec. 31, 2014

Foreclosed Real Estate [Abstract]

Foreclosed Real Estate

Note 5 – Foreclosed Real Estate

As of December 31, 2014, Bancorp had foreclosed real estate consisting of 11 residential properties with a carrying value of $1,947,000.  During the year ended December 31, 2014, Bancorp sold a total of 21 properties previously included in foreclosed real estate.  The properties sold during 2014 had a combined net book value of $7,872,000 after total write-downs taken subsequent to their transfer from loans to foreclosed real estate of $2,338,000, and were sold at a combined net gain of $302,000.  In addition, Bancorp incurred$1,103,000 in costs related to the sale of the properties.  The following table summarizes the changes in foreclosed real estate for the years ended December 31, 2014 and 2013 (dollars in thousands):

Foreclosed real estate at December 31, 2012	$	11,441
Transferred from impaired loans, net of specific reserves of $3,267		10,169
Property improvements		925
Additional write downs		(4,610	)
Property sold, including loss on sale		(8,953	)
Foreclosed real estate at December 31, 2013	$	8,972
Transferred from impaired loans, net of specific reserves of $3,303		847
Property improvements		-
Additional write downs		-
Property sold, including loss on sale		(7,872	)
Foreclosed real estate at December 31, 2014	$	1,947

Total foreclosed real estate expense for 2014 was $10,000.  Net gain on the property sales was $302,000, property write downs totaled $0 and operating expense was $312,000.  Total foreclosed real estate expense for 2013 was $6,132,000.  Net loss on the property sales was $367,000, property write downs totaled $4,610,000 and operating expense was $1,155,000.