Note 5 - Other Real Estate Owned

12 Months Ended

Dec. 31, 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 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.

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

	At and For the Years Ended December 31,
	2020			2019
Beginning balance	$	186		$	1,226
New foreclosed properties		33			186
Capitalized improvements		47			—
Valuation adjustments		—			(38	)
Sales		(109	)		(1,188	)
Ending balance	$	157		$	186

	December 31, 2020						December 31, 2019
	Balance		Valuation Allowance		Net OREO Balance		Balance		Valuation Allowance		Net OREO Balance
One–to–four family residential	$	157	$	—	$	157	$	186	$	—	$	186

Activity in the valuation allowance is as follows:

	At and For the Years Ended December 31,
	2020		2019
Beginning of year	$	—	$	23
Additions charged to expense		—		38
Reductions from sales of other real estate owned		—		(61	)
End of year	$	—	$	—

At December 31, 2020 and 2019, the balance of OREO includes no foreclosed residential real estate properties recorded as a result of obtaining physical possession of the property without title. At December 31, 2020 and 2019, the recorded investment of consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings were in process was $187,000 and $237,000, respectively.