Note 5 - Other Real Estate Owned

3 Months Ended

Mar. 31, 2017

Notes to Financial Statements

Real Estate Owned [Text Block]

Note

5.

Other Real Estate Owned

Changes in other real estate owned for the

three

months ended

March

31,2017

were as follows:

(Dollars in Thousands)	Other Real Estate Owned			Valuation Allowance			Net
Balance at the beginning of the year	$	4,619		$	(825	)	$	3,794
Additions		—			—			—
Write downs		—			—			—
Sales		(1,262	)		616			(646	)
Balance at the end of the year	$	3,357		$	(209	)	$	3,148

Changes in foreclosed properties for the

three

months ended

March

31,

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
Write downs		—			—			—
Sales		(24	)		—			(24	)
Balance at the end of the year	$	6,106		$	(420	)	$	5,686

The major classifications of other real estate owned in the consolidated balance sheets at

March

31,

2017

and

December

31,

2016

were as follows:

(Dollars in Thousands)	March 31, 2017		December 31, 2016
Residential lots	$	2,187	$	2,234
Residential development		423		423
Commercial lots		90		90
Commercial buildings		448		1,047
Total Other Real Estate Owned	$	3,148	$	3,794

There were no residential real estate loans in the process of foreclosure at

March

31,

2017

or

December

31,

2016.

Other real estate owned related expenses in the consolidated statements of income for the

three

months ended

March

31,

2017

and

March

31,

2016

include:

(Dollars in Thousands)	Three Months Ended March 31, 2017		Three Months Ended March 31, 2016
Net loss on sales	$	—	$	—
Provision for unrealized losses		—		—
Operating expenses		13		22
Total Other Real Estate Owned	$	13	$	22