Note 5 - Other Real Estate Owned

9 Months Ended

Sep. 30, 2020

Notes to Financial Statements

Real Estate Owned [Text Block]

NOTE 5 - OTHER REAL ESTATE OWNED

Real estate that is acquired through foreclosure or a deed in lieu of foreclosure is classified as other real estate owned ("OREO") until it is sold. When real estate is acquired through foreclosure or by deed in lieu of foreclosure, it is recorded at its fair value, less the estimated costs of disposal. If the fair value of the property is less than the loan balance, the difference is charged against the allowance for loan losses.

	September 30, 2020						December 31, 2019
	Balance		Valuation Allowance		Net OREO Balance		Balance		Valuation Allowance		Net OREO Balance
One–to–four family residential	$	110	$	-	$	110	$	186	$	—	$	186

The following represents the roll forward of OREO and the composition of OREO properties:

	For the Three Months Ended						For the Nine Months Ended
	September 30,						September 30,
	2020			2019			2020			2019
Beginning balance	$	143		$	497		$	186		$	1,226
New foreclosed properties		—			30			33			76
Valuation adjustments		—			(17	)		—			(38	)
Sales and other reductions		(33	)		(241	)		(109	)		(995	)
Ending balance	$	110		$	269		$	110		$	269

Activity in the valuation allowance is as follows:

	For the Three Months Ended				For the Nine Months Ended
	September 30,				September 30,
	2020		2019		2020		2019
Beginning balance	$	—	$	21	$	—	$	23
Additions charged to expense		—		17		—		38
Reductions from sales of OREO		—		—		—		(23	)
Ending balance	$	—	$	38	$	—	$	38

At September 30, 2020 and December 31, 2019, the balance of OREO included no foreclosed residential real estate properties recorded as a result of obtaining physical possession of the property without title. At September 30, 2020 and December 31, 2019, the recorded investment of consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings were in process was $180,000 and $237,000, respectively.