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Note 5 - Other Real Estate Owned
 12 Months Ended
Dec. 31, 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 fair value of the property, less estimated costs to sell. The following table summarizes foreclosed property activity as of
December 31, 2017
and
2016.
 
   
December
31, 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
)
    
(27
)
    
(198
)
Ending balance
   $
3,527
     $
265
     $
3,792
  
 
   
December 31, 2016
  
   
Bank
    
ALC
    
Total
  
   
(Dollars in Thousands)
  
Beginning balance
   $
5,327
     $
711
     $
6,038
  
Transfers from loans
    
273
      
199
      
472
  
Sales proceeds
    
(1,016
)
    
(281
)
    
(1,297
)
Gross
gains
    
16
      
37
      
53
  
Gross losses
    
(77
)
    
(80
)
    
(157
)
Net gains (losses)
    
(61
)
    
(43
)
    
(104
)
Impairment
    
(170
)
    
(81
)
    
(251
)
Ending balance
   $
4,353
     $
505
     $
4,858
  
 
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
December 31, 2017
and
2016,
respectively. In addition, the Company held
$27
thousand and
$0.1
million in consumer mortgage loans collateralized by residential real estate that were in the process of foreclosure as of
December 31, 2017
and
2016,
respectively.