Note 9 - Other Real Estate Owned

3 Months Ended

Mar. 31, 2015

Disclosure Text Block [Abstract]

Real Estate Owned [Text Block]

9. Other Real Estate Owned. The following table reflects the changes in other real estate owned (“OREO”) during the three months ended March 31, 2015 and 2014:

	Beginning							Fair Value			End
	of Period		Additions		Sales, net			Adjustments			of Period
March 31, 2015					(In thousands)
OREO	$	7,756	$	574	$	(1,204	)	$	(44	)	$	7,082
March 31, 2014
OREO	$	9,354	$	810	$	(1,140	)	$	(11	)	$	9,013

Fair value adjustments made are recorded in order to adjust the carrying values of OREO properties to estimated fair market values. In most cases, estimated fair market values are derived from an initial appraisal, an updated appraisal or other forms of internal evaluations. In certain instances when a listing agreement is renewed for a lesser amount, carrying values will be adjusted to the lesser fair value amount. Additionally, in certain instances when an offer to purchase is received near the end of a quarterly accounting period for less than the carrying value, and the sale does not close until the next accounting period, the carrying value will be adjusted to the lesser fair value amount.