Note 5 - Other Real Estate Owned

3 Months Ended

Mar. 31, 2018

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, 2018

were as follows:

(Dollars in Thousands)	Other Real Estate Owned			Valuation Allowance			Net
Balance at the beginning of the year	$	4,046		$	(797	)	$	3,249
Additions		697			—			697
Write downs		—			(158	)		(158	)
Sales		(163	)		—			(163	)
Balance at the end of the year	$	4,580		$	(955	)	$	3,625

Changes in foreclosed properties 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

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

March 31, 2018

and

December 31, 2017

were as follows:

(Dollars in Thousands)	March 31, 2018		December 31, 2017
Residential lots	$	1,609	$	1,745
Residential development		366		—
Residential real estate		1,197		1,024
Commercial lots		63		90
Commercial buildings		390		390
Total Other Real Estate Owned	$	3,625	$	3,249

There were

no

residential real estate loans in the process of foreclosure at

March 31, 2018

or

December 31, 2017.

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

three

months ended

March 31, 2018

and

March 31, 2017

include:

(Dollars in Thousands)	Three Months Ended March 31, 2018		Three Months Ended March 31, 2017
Provision for unrealized losses	$	158	$	—
Operating expenses		141		13
Total Other Real Estate Owned	$	299	$	13