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Note 5: Other Real Estate Owned
 12 Months Ended
Dec. 31, 2017
Notes  
Note 5: Other Real Estate Owned

Note 5:      Other Real Estate Owned and Repossessions

 

Major classifications of other real estate owned at December 31, 2017 and 2016, were as follows:

 

 

2017

 

2016

 

(In Thousands)

 

 

 

 

Foreclosed assets held for sale and repossessions

 

 

 

One- to four-family construction

$                       --

 

$                       --

Subdivision construction

                  5,413

 

                  6,360

Land development

                  7,229

 

               10,886

Commercial construction

                         --

 

                         --

One- to four-family residential

                     112

 

                  1,217

Other residential

                     140

 

                     954

Commercial real estate

                  1,694

 

                  3,841

Commercial business

                         --

 

                         --

Consumer

                  1,987

 

                  1,991

 

               16,575

 

               25,249

FDIC-supported foreclosed assets, net of discounts

                         --

 

                  1,426

Acquired foreclosed assets no longer covered by

 

 

 

FDIC loss sharing agreements, net of discounts

                  2,133

 

                     316

Acquired foreclosed assets not covered by FDIC

 

 

 

loss sharing agreements, net of discounts (Valley Bank)

                  1,666

 

                  1,952

 

 

 

 

Foreclosed assets held for sale and repossessions, net

               20,374

 

               28,943

 

 

 

 

Other real estate owned not acquired through foreclosure

                  1,628

 

                  3,715

 

 

 

 

Other real estate owned and repossessions

$             22,002

 

$             32,658

 

 

At December 31, 2017, other real estate owned not acquired through foreclosure included 10 properties, 9 of which were branch locations that were closed and are held for sale, and one of which is land acquired for a potential branch location.  During the year ended December 31, 2017, seven former branch locations were sold at an aggregate gain of $250,000, which is included in the gain on sales of other real estate owned amount in the table below. 

 

At December 31, 2016, other real estate owned not acquired through foreclosure included 17 properties, 16 of which were branch locations that were closed and are held for sale, and one of which is land acquired for a potential branch location.  During the year ended December 31, 2016, 15 former branch locations were added to other real estate owned not acquired through foreclosure due to the closing of those branches.  Seven former branch locations were sold during the year ended December 31, 2016, at an aggregate net gain of $858,000, which is included in the gain on sales of other real estate owned amount in the table below. 

 

At December 31, 2017, residential mortgage loans totaling $3.2 million were in the process of foreclosure, $3.0 million of which were acquired loans.  Of the $3.0 million of acquired loans, $2.8 million were previously covered by loss sharing agreements and $208,000 were acquired in the Valley Bank transaction. 

 

Expenses applicable to other real estate owned and repossessions for the years ended December 31, 2017, 2016 and 2015, included the following:

 

 

2017

 

2016

 

2015

 

(In Thousands)

 

 

 

 

 

 

Net gain on sales of real estate and repossessions

  $                (2,212)

 

  $                     (68)

 

  $                   (397)

Valuation write-downs

                      1,585

 

                         431

 

                         890

Operating expenses, net of rental income

                      4,556

 

                      3,748

 

                      2,033

 

 

 

 

 

 

 

  $                 3,929

 

  $                 4,111

 

  $                 2,526