Note 5 - Foreclosed Properties

6 Months Ended

Jun. 30, 2016

Notes to Financial Statements

Real Estate Owned [Text Block]

Note 5. Foreclosed Properties

Changes in foreclosed properties for the six months ended June 30, 2016 were as follows:

(Dollars In Thousands)	Other Real Estate Owned			Valuation Allowance			Net
Balance at the beginning of the year	$	5,657		$	(420	)	$	5,237
Additions		473			—			473
Writedowns		—			—			—
Sales		(1,373	)		—			(1,373	)
Balance at the end of the period	$	4,757		$	(420	)	$	4,337

Changes in foreclosed properties for the six months ended June 30, 2015 were as follows:

(Dollars In Thousands)	Other Real Estate Owned			Valuation Allowance			Net
Balance at the beginning of the year	$	7,408		$	(422	)	$	6,986
Additions		—			—			—
Writedowns		—			—			—
Sales		(114	)		—			(114	)
Balance at the end of the period	$	7,294		$	(422	)	$	6,872

The major classifications of other real estate owned in the consolidated balance sheets at June 30, 2016 and December 31, 2015 were as follows:

(Dollars In Thousands)	June 30, 2016		December 31, 2015
Residential lots	$	2,472	$	2,520
Residential development		423		423
Commercial lots		90		90
Commercial buildings		1,352		2,204
Total Other Real Estate Owned	$	4,337	$	5,237

There were no residential real estate loans in the process of foreclosure at June 30, 2016 or December 31, 2015.

Other real estate owned related expenses in the consolidated statements of income for the three and six months ended June 30, 2016 and June 30, 2015 include:

(Dollars In Thousands)	Three months Ended June 30, 2016		Three months Ended June 30, 2015		Six months Ended June 30, 2016		Six months Ended June 30, 2015
Net loss on sales	$	91	$	—	$	91	$	—
Provision for unrealized losses		—		—		—		—
Operating expenses		25		40		47		70
Total Other Real Estate Owned	$	116	$	40	$	138	$	70