Foreclosed Assets

9 Months Ended

Sep. 30, 2017

Banking and Thrift [Abstract]

Foreclosed Assets

(5) FORECLOSED ASSETS

The Company’s foreclosed assets have been acquired through customer loan defaults. The property is recorded at the lower of cost or fair value less estimated cost to sell and carrying cost at the date acquired. Any difference between the book value and estimated market value is recognized as a charge off through the allowance for loan loss account. Additional losses on foreclosed assets may be determined on individual properties at specific intervals or at the time of disposal. In general, the Company will obtain a new appraisal on all foreclosed assets with a book balance in excess of $250,000 on an annual basis. Additional losses are recognized as a non-interest expense.

At September 30, 2017 and December 31, 2016, the Company had balances in foreclosed assets consisting of the following:

	September 30, 2017		December 31, 2016
	(Dollars in Thousands)
One-to-four family mortgages	$	1,025		135
Home equity line of credit		—		28
Multi-family real estate		750		1,775
Land		3,200		—
Non-residential real estate		—		459
Total other assets owned	$	4,975		2,397

For the nine month period ended September 30, 2017, the Company’s activity in foreclosed property included the following:

			Activity During 2017
	Balance							Reduction			Gain (Loss)			Balance
	12/31/2016		Foreclosure		Sales			in Values			on Sale			9/30/2017
	(Dollars in Thousands)
One-to-four family mortgages	$	135		1,025		(147	)		—			12		$	1,025
HELOC		28		—		(18	)		(10	)		—			—
Multi-family		1,775		—		(1,001	)		—			(24	)		750
Land		—		3,200		—			—			—			3,200
Non-residential real estate		459		43		(500	)		—			(2	)		—
Total	$	2,397		4,268		(1,666	)		(10	)		(14	)	$	4,975

The Company’s activity in foreclosed assets for the nine month period ended September 30, 2016 is as follows:

			Activity During 2016
	Balance							Reduction		Gain (Loss)			Balance
	12/31/2015		Foreclosure		Sales			in Values		on Sale			9/30/2016
	(Dollars in Thousands)
One-to-four family mortgages	$	55		—		(43	)		—		(12	)		—
Home equity line of credit		—		68		—			—		—			68
Multi-family		—		141		—			—		—			141
Land		943		130		(987	)		—		(13	)		73
Non-residential real estate		738		—		(270	)		—		(9	)		459
Consumer		—		15		(19	)		—		4			—
Total	$	1,736		354		(1,319	)		—		(30	)	$	741