Note 5 - Other Real Estate Owned

3 Months Ended

Mar. 31, 2020

Notes to Financial Statements

Real Estate Owned [Text Block]

Note

5

– Other Real Estate Owned

Other real estate owned (OREO) is real estate acquired as a result of foreclosure or by deed in lieu of foreclosure. It is classified as real estate owned until such time as it is sold. When property is acquired as a result of foreclosure or by deed in lieu of foreclosure, it is recorded at its fair market value less estimated cost to sell. Any write-down of the property at the time of acquisition is charged to the allowance for loan losses.

The following table presents the major categories of OREO at the period-ends indicated:

	March 31, 20 20		December 31, 201 9
	(in thousands)
Commercial Real Estate:
Construction, land development, and other land	$	3,225	$	3,225
	$	3,225	$	3,225

Residential loans secured by

1

-

4

family residential properties in the process of foreclosure totaled

$156,000

and

$172,000

at

March 31, 2020

and

December 31, 2019,

respectively.

Activity relating to OREO during the

three

months ended

March 31, 2020

and

2019

is as follows:

	For the Three Months Ended March 31,
	20 20		20 19
	(in thousands)
OREO Activity
OREO as of January 1	$	3,225	$	3,485
Real estate acquired		—		—
Valuation adjustment write-downs		—		(150	)
Net gain (loss) on sales		—		—
Proceeds from sales of properties		—		—
OREO as of March 31	$	3,225	$	3,335

Expenses related to OREO include:

	For the Three Months Ended March 31 ,
	20 20		201 9
	(in thousands)
Net loss (gain) on sales	$	—	$	—
Valuation adjustment write-downs		—		150
Operating expense		16		16
Total	$	16	$	166