Note 8: Other Real Estate Owned

9 Months Ended

Sep. 30, 2020

Notes

Note 8: Other Real Estate Owned

NOTE 8: OTHER REAL ESTATE OWNED AND REPOSSESSIONS

Major classifications of other real estate owned were as follows:

		September 30,		December 31,
		2020		2019
		(In Thousands)
Foreclosed assets held for sale and repossessions
One- to four-family construction	$	-	$	-
Subdivision construction		350		689
Land development		1,075		1,816
Commercial construction		-		-
One- to four-family residential		-		601
Other residential		-		-
Commercial real estate		-		-
Commercial business		-		-
Consumer		196		545
		1,621		3,651
Foreclosed assets acquired through FDIC-assisted
transactions, net of discounts		446		1,003
Foreclosed assets held for sale and repossessions, net		2,067		4,654
Other real estate owned not acquired through foreclosure		940		871
Other real estate owned and repossessions	$	3,007	$	5,525

At September 30, 2020 other real estate owned not acquired through foreclosure included seven properties, all of which were branch locations that were closed and held for sale.  At December 31, 2019, other real estate owned not acquired through foreclosure included six properties, all of which were branch locations that were closed and held for sale.  

At September 30, 2020, residential mortgage loans totaling $787,000 were in the process of foreclosure, $657,000 of which were acquired loans.  Pursuant to Section 4022 of the recently-enacted CARES Act, the Company has suspended all foreclosure proceedings. Under this provision, no mortgage servicer of any federally-backed mortgage loan is permitted to initiate any foreclosure process, whether judicial or non-judicial, move for a foreclosure judgment or order of sale, or execute a foreclosure- related eviction or foreclosure sale for a 60-day period, beginning March 18, 2020. This provision was subsequently extended through the end of 2020.

At December 31, 2019, residential mortgage loans totaling $1.6 million were in the process of foreclosure, $1.4 million of which were acquired loans.

Expenses applicable to other real estate owned and repossessions included the following:

		Three Months Ended
		September 30,
		2020			2019
		(In Thousands)
Net gains on sales of other real estate owned and repossessions	$	(348	)	$	(250	)
Valuation write-downs		269			280
Operating expenses, net of rental income		278			573
	$	199		$	603

		Nine Months Ended
		September 30,
		2020			2019
		(In Thousands)
Net gains on sales of other real estate owned and repossessions	$	(450	)	$	(659	)
Valuation write-downs		482			724
Operating expenses, net of rental income		914			1,577
	$	946		$	1,642