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Note 6 - Other Real Estate Owned and Repossessions
 9 Months Ended
Sep. 30, 2018
Notes to Financial Statements  
Real Estate Owned [Text Block]
6.
OTHER REAL ESTATE OWNED AND REPOSSESSIONS
 
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
nine
months ended
September 30, 2018
and
2017
:
 
   
September 30
, 2018
  
   
Bank
    
ALC
    
Total
  
   
(Dollars in Thousands)
  
Beginning balance
   $
3,527
     $
265
     $
3,792
  
Additions
(1)
    
191
      
58
      
249
  
Sales proceeds
    
(2,453
)
    
(77
)
    
(2,530
)
                         
Gross gains
    
267
      
8
      
275
  
Gross losses
    
(46
)
    
(54
)
    
(100
)
Net gains (losses)
    
221
      
(46
)
    
175
  
Impairment
    
(167
)
    
(30
)
    
(197
)
Ending balance
   $
1,319
     $
170
     $
1,489
  
 
   
September 30
, 2017
  
   
Bank
    
ALC
    
Total
  
   
(Dollars in Thousands)
  
Beginning balance
   $
4,353
     $
505
     $
4,858
  
Additions
(1)
    
—
      
87
      
87
  
Sales proceeds
    
(649
)
    
(199
 )    
(848
)
                         
Gross gains
    
14
      
—
      
14
  
Gross losses
    
(20
)
    
(101
)
    
(121
)
Net losses
    
(6
 )    
(101
)
    
(107
)
Impairment
    
(171
 )    
—
      
(171
)
Ending balance
   $
3,527
     $
292
     $
3,819
  
 
(
1
)
Additions to other real estate owned (“OREO”) include transfers from loans, capitalized improvements to existing OREO properties and OREO acquired through acquisitions.
 
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 as of both
September 30, 2018
and
2017.
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
September 30, 2018
and held
$20
thousand of these loans as of
September 30, 2017.
 
Repossessions
 
In addition to the other real estate and other assets acquired in foreclosure, the Bank and ALC also acquire assets through the repossession of the underlying collateral of loans in default. Total repossessed assets as of both
September 30, 2018
and
December 31, 2017
were
$0.2
million
.