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Note 6 - Other Real Estate Owned and Repossessions
 6 Months Ended
Jun. 30, 2019
Notes to Financial Statements  
Real Estate Owned [Text Block]
6.
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
six
months ended
June 30, 2019
and
2018:
 
   
June 30
, 2019
  
   
Bank
    
ALC
    
Total
  
   
(Dollars in Thousands)
  
Beginning balance
   $
1,401
     $
104
     $
1,505
  
Additions
(1)
    
224
      
38
      
262
  
Sales proceeds
    
(404
)
    
(79
)
    
(483
)
                         
Gross gains
    
37
      
2
      
39
  
Gross losses
    
—
      
(27
)
    
(27
)
Net gains (losses)
    
37
      
(25
)
    
12
  
Impairment
    
—
 
    
(38
)
    
(38
)
Ending balance
   $
1,258
     $
—
     $
1,258
  
 
   
June 30
, 2018
  
   
Bank
    
ALC
    
Total
  
   
(Dollars in Thousands)
  
Beginning balance
   $
3,527
     $
265
     $
3,792
  
Additions
(1)
    
106
      
25
      
131
  
Sales proceeds
    
(1,598
)
    
(43
)
    
(1,641
)
                         
Gross gains
    
121
      
—
      
121
  
Gross losses
    
(45
)
    
(54
)
    
(99
)
Net gains (losses)
    
76
      
(54
)
    
22
  
Impairment
    
(109
)
    
(14
)
    
(123
)
Ending balance
   $
2,002
     $
179
     $
2,181
  
 
(
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 wa
s
$0.1
million an
d
$0.5
million as of
June 30, 2019
and
2018,
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
June 30, 2019
and held
$48
thousand of these loans as of
June 30, 2018.
 
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
June 30, 2019
and
December 31, 2018
wer
e
$0.2
million.