Note 5 - Other Real Estate Owned

6 Months Ended

Jun. 30, 2017

Notes to Financial Statements

Real Estate Owned [Text Block]

Note

5.

Other Real Estate Owned

Changes in other real estate owned for the

six

months ended

June 30, 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		—			(380	)		(380	)
Sales		(1,262	)		616			(646	)
Balance at quarter end	$	3,357		$	(589	)	$	2,768

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
Write downs		—			—			—
Sales		(1,373	)		—			(1,373	)
Balance at quarter end	$	4,757		$	(420	)	$	4,337

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

June 30, 2017

and

December 31, 2016

were as follows:

(Dollars in Thousands)	June 30 , 2017		December 31, 2016
Residential lots	$	2,187	$	2,234
Residential development		43		423
Commercial lots		90		90
Commercial buildings		448		1,047
Total Other Real Estate Owned	$	2,768	$	3,794

There were

no

residential real estate loans in the process of foreclosure at

June 30, 2017

or

December 31, 2016.

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

three

and

six

months ended

June 30, 2017

and

June 30, 2016

include:

(Dollars In Thousands)	Three months Ended June 30, 2017		Three months Ended June 30, 2016		Six months Ended June 30, 2017		Six months Ended June 30, 2016
Net loss on sales	$	—	$	91	$	—	$	91
Provision for unrealized losses		380		—		380		—
Operating expenses		24		25		37		47
Total Other Real Estate Owned	$	404	$	116	$	417	$	138