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Note 5 - Other Real Estate Owned
 3 Months Ended
Mar. 31, 2018
Notes to Financial Statements  
Real Estate Owned [Text Block]
5.
OTHER REAL ESTATE OWNED AND REPOSSESSIONS
 
Other Real Estate Owned
 
Other real estate and certain other assets acquired in foreclosure are reported at the net realizable value of the property, less estimated costs to sell. The following tables summarize foreclosed property activity as of the
three
months ended
March 31, 2018
and
2017:
 
   
March 31
, 2018
  
   
Bank
    
ALC
    
Total
  
   
(Dollars in Thousands)
  
Beginning balance
   $
3,527
     $
265
     $
3,792
  
Additions
(1)
    
106
      
25
      
131
  
Sales proceeds
    
(611
)
    
(20
)
    
(631
)
                         
Gross gains
    
121
      
—
      
121
  
Gross losses
    
—
      
(23
)
    
(23
)
Net gains (losses)
    
121
      
(23
)
    
98
  
Impairment
    
(43
)
    
(4
)
    
(47
)
Ending balance
   $
3,100
     $
243
     $
3,343
  
 
   
March 31
, 2017
  
   
Bank
    
ALC
    
Total
  
   
(Dollars in Thousands)
  
Beginning balance
   $
4,353
     $
505
     $
4,858
  
Additions
(1)
    
—
      
20
      
20
  
Sales proceeds
    
(204
)
    
(84
)
    
(288
)
                         
Gross gains
    
13
      
—
      
13
  
Gross losses
    
(1
)
    
(15
)
    
(16
)
Net gains (losses)
    
12
      
(15
)
    
(3
)
Impairment
    
—
      
—
      
—
  
Ending balance
   $
4,161
     $
426
     $
4,587
  
 
(
1
)
Additions to other real estate owned (“OREO”) include transfers from loans and capitalized improvements to existing OREO properties.
 
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.
Net realizable value less estimated costs to sell of foreclosed residential real estate held by the Company was
$0.6
million and
$0.8
million as of
March 31, 2018
and
2017,
respectively. In addition, the Company did
not
hold any consumer mortgage loans collateralized by residential real estate that were in the process of foreclosure as of 
March 31, 2018
and held
$0.1
million of these loans as of 
March 31, 2017.
 
Repossessions
 
In addition to the other real estate and other assets acquired in foreclosure, ALC also acquires assets through the repossession of the underlying collateral of loans in default. Total repossessed assets at ALC as of
March 31, 2018
and
December 31, 2017
were
$0.3
million and
$0.2
million, respectively.