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Note 7 - Other Real Estate Owned
 9 Months Ended
Sep. 30, 2016
Notes to Financial Statements  
Real Estate Owned [Text Block]
7.
OTHER REAL ESTATE OWNED
 
Other real estate and certain other assets acquired in foreclosure are reported at the lower of the investment in the loan or the fair value of the property, less estimated costs to sell. The following table summarizes foreclosed property activity as of the
nine months ended September 30, 2016 and 2015:
 
   
September 30
, 201
6
  
   
FUSB
    
ALC
    
Total
  
   
(Dollars in Thousands)
  
Beginning balance
   $ 5,327     $ 711     $ 6,038  
Transfers from loans 
     255       149       404  
Sales proceeds
     (655
)
     (259
)
     (914
)
Gross gains
    
—
       27       27  
Gross losses     (40 )     (73 )     (113 )
Net gains (losses)
     (40
)
     (46
)
     (86
)
Impairment
    
—
 
     (51
)
     (51
)
Ending balance
   $ 4,887     $ 504     $ 5,391  
 
   
September 30
, 201
5
  
   
FUSB
    
ALC
    
Total
  
   
(Dollars in Thousands)
  
Beginning balance
   $ 6,997     $ 738     $ 7,735  
Transfers from loans
     1,439       263       1,702  
Sales proceeds
     (2,225
)
     (144
)
     (2,369
)
Gross gains
     4      
—
       4  
Gross losses
     (210
)
     (73
)
     (283
)
Net gains (losses)
     (206
)
     (73
)
     (279
)
Impairment
     (44 )     (89
)
     (133
)
Ending balance
   $ 5,961     $ 695     $ 6,656  
 
Valuation adjustments are recorded in other non-interest expense and are primarily post-foreclosure write-downs that are a result of continued declining property values based on updated appraisals or other indications of value, such as offers to purchase.
Fair value less estimated cost to sell of foreclosed residential real estate held by the Company was $1.1 million and $1.5 million as of September 30, 2016 and 2015, respectively. In addition, the Company held $0.1 and $0.2 million in consumer mortgage loans collateralized by residential real estate that were in the process of foreclosure as of September 30, 2016 and December 31, 2015, respectively.