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Note 5 - Other Real Estate Owned
 9 Months Ended
Sep. 30, 2017
Notes to Financial Statements  
Real Estate Owned [Text Block]
5.
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 for the
nine
months ended
September 30, 2017
and
2016.
 
   
September 30
, 2017
  
   
Bank
    
ALC
    
Total
  
   
(Dollars in Thousands)
  
Beginning balance
   $
4,353
     $
505
     $
4,858
  
Transfers from loans
    
—
      
87
      
87
  
Sales proceeds
    
(649
)
    
(199
)
    
(848
)
Gross gains
    
14
      
—
      
14
  
Gross losses
    
(20
)
    
(101
)
    
(121
)
Net gains (losses)
    
(6
)
    
(101
)
    
(107
)
Impairment
    
(171
)
    
—
 
    
(171
)
Ending balance
   $
3,527
     $
292
     $
3,819
  
 
   
September 30
, 2016
  
   
Bank
    
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
  
 
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
$0.6
million and
$1.1
million as of
September 30, 
2017
and
2016,
respectively. In addition, the Company held
$20
thousand and
$0.1
million in consumer mortgage loans collateralized by residential real estate that were in the process of foreclosure as of
September 30, 
2017
and
2016,
respectively.