Note 5 - Other Real Estate Owned

6 Months Ended

Jun. 30, 2018

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, 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		(374	)		—			(374	)
Balance at the end of the year	$	4,369		$	(955	)	$	3,414

Changes in foreclosed properties 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 the end of the year	$	3,357		$	(589	)	$	2,768

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

June 30, 2018

and

December 31, 2017

were as follows:

(Dollars in Thousands)	June 30, 2018		December 31, 2017
Residential lots	$	1,398	$	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	$	3,414	$	3,249

There were

no

residential real estate loans in the process of foreclosure at

June 30, 2018

or

December 31, 2017.

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

three

and

six

months ended

June 30, 2018

and

June 30, 2017

include:

(Dollars In Thousands)	Three months Ended June 30, 2018		Three months Ended June 30, 2017		Six months Ended June 30, 2018		Six months Ended June 30, 2017
Provision for unrealized losses	$	–	$	380	$	158	$	380
Operating expenses		64		24		205		37
Total Other Real Estate Owned	$	64	$	404	$	363	$	417