Note 7 - Foreclosed Real Estate

12 Months Ended

Dec. 31, 2016

Notes to Financial Statements

Real Estate Disclosure [Text Block]

(7)

           

FORECLOSED REAL ESTATE

At

December

31,

2016

and

2015,

the Bank had foreclosed real estate held for sale of

$4.7

million and

$4.9

million, respectively. During the years ended

December

31,

2016

and

2015,

foreclosure losses in the amount of

$278,000

and

$1.2

million, respectively, were charged off to the allowance for loan losses. Losses on subsequent write-downs of foreclosed real estate were

$80,000

and

$100,000

for

2016

and

2015,

respectively. Net realized gains from the sale of foreclosed real estate amounted to

$30,000

for

2016

and net realized losses from the sale of foreclosed real estate amounted to

$15,000

for

2015.

The net gain or loss on foreclosed real estate is reported in other noninterest expense. Net expenses of holding foreclosed real estate are included in other noninterest expenses and amounted to

$173,000

and

$50,000

in

2016

and

2015,

respectively. Realized gains from the sale of foreclosed real estate are deferred when the sales are financed by the Bank and do not qualify for recognition under U.S. GAAP. There were no realized gains from the sale of foreclosed real estate deferred for

2016

or

2015.

At

December

31,

2016

and

2015,

deferred gains on the sale of foreclosed real estate financed by the Bank amounted to

$

10,000

.

At

December

31,

2016

and

2015,

the recorded investment in consumer mortgage loans collateralized by residential real estate property in the process of foreclosure was

$793,000

and

$313,000,

respectively.