Note 9: Other Real Estate Owned

6 Months Ended

Jun. 30, 2015

Notes

Note 9: Other Real Estate Owned

NOTE 9: OTHER REAL ESTATE OWNED

Major classifications of other real estate owned were as follows:

	June 30,	December 31,
	2015	2014
(In Thousands)
Foreclosed assets held for sale
One- to four-family construction	$—		$223
Subdivision construction	9,486		9,857
Land development	16,102		17,168
Commercial construction	—		—
One- to four-family residential	1,986		3,353
Other residential	2,150		2,625
Commercial real estate	3,551		1,632
Commercial business	48		59
Consumer	553		624
	33,876		35,541
FDIC-supported foreclosed assets, net of discounts	2,827		5,695
Acquired foreclosed assets no longer covered by FDIC loss
sharing agreements, net of discounts	709		879
Acquired foreclosed assets not covered by FDIC loss sharing
agreements, net of discounts	539		778
Foreclosed assets held for sale, net	37,951		42,893
Other real estate owned not acquired through foreclosure	2,046		2,945
Other real estate owned	$39,997		$45,838

Other real estate owned not acquired through foreclosure includes 12 properties, 11 of which were branch locations that have been closed and are held for sale, and one of which is land which was acquired for a potential branch location.  During the three months ended June 30, 2015, vacant land, which had previously been part of other real estate owned not acquired through foreclosure, was sold at a gain of $327,000, which is included in the gain on sale of foreclosed assets amount in the table below. 

At June 30, 2015, residential mortgage loans totaling $1.2 million were in the process of foreclosure, all of which were acquired loans.  Of this total, $786,000 of the loans are covered by loss sharing agreements and $447,000 of the loans were acquired in the Valley Bank transaction. 

Expenses applicable to foreclosed assets included the following:

	Three Months Ended June 30,
	2015	2014
(In Thousands)
Net (gain) loss on sales of foreclosed assets	$(484)	$(203)
Valuation write-downs	139	1,019
Operating expenses, net of rental income	663	526
	$318	$1,342

	Six Months Ended June 30,
	2015	2014
(In Thousands)
Net (gain) loss on sales of foreclosed assets	$(609)	$(54)
Valuation write-downs	191	1,199
Operating expenses, net of rental income	1,121	1,047
	$703	$2,192