Note 5 - Other Real Estate Owned

9 Months Ended

Sep. 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

nine

months ended

September 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		1,024			—			1,024
Write downs		—			(380	)		(380	)
Sales		(1,492	)		616			(876	)
Balance at quarter end	$	4,151		$	(589	)	$	3,562

Changes in other real estate owned for the

nine

months ended

September 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		481			—			481
Write downs		—			—			—
Sales		(1,444	)		—			(1,444	)
Balance at quarter end	$	4,694		$	(420	)	$	4,274

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

September 30, 2017

and

December 31, 2016

were as follows:

(Dollars in Thousands)	September 30, 2017		December 31, 2016
Residential lots	$	1,978	$	2,234
Residential development		22		423
Residential single-family homes		1,024		-
Commercial lots		90		90
Commercial buildings		448		1,047
Total Other Real Estate Owned	$	3,562	$	3,794

There were

no

residential real estate loans in the process of foreclosure at

September

 

30,

2017

or

December 31, 2016.

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

three

and

nine

months ended

September 30, 2017

and

September 30, 2016

include:

(Dollars In Thousands)	Three months Ended September 30, 2017		Three months Ended September 30, 2016		Nine months Ended September 30, 2017		Nine months Ended September 30, 2016
Net loss on sales	$	—	$	—	$	—	$	91
Provision for unrealized losses		—		—		380		—
Operating expenses		28		25		66		72
Total Other Real Estate Owned	$	28	$	25	$	446	$	163