Note 5: Other Real Estate Owned

12 Months Ended

Dec. 31, 2015

Notes

Note 5: Other Real Estate Owned

Note 5:      Other Real Estate Owned

Major classifications of other real estate owned at December 31, 2015 and 2014, were as follows:

	2015	2014
(In Thousands)
Foreclosed assets held for sale
One- to four-family construction	$--	$223
Subdivision construction	7,016	9,857
Land development	12,133	17,168
Commercial construction	--	--
One- to four-family residential	1,375	3,353
Other residential	2,150	2,625
Commercial real estate	3,608	1,632
Commercial business	--	59
Consumer	1,109	624
	27,391	35,541
FDIC-supported foreclosed assets, net of discounts	1,834	5,695
Acquired foreclosed assets no longer covered by
FDIC loss sharing agreements, net of discounts	460	879
Acquired foreclosed assets not covered by FDIC
loss sharing agreements, net of discounts (Valley Bank)	995	778
Foreclosed assets held for sale, net	30,680	42,893
Other real estate owned not acquired through
foreclosure	1,213	2,945
Other real estate owned	$31,893	$45,838

As of December 31, 2015, other real estate owned not acquired through foreclosure included nine properties, eight 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 year ended December 31, 2015, four properties which had previously been part of other real estate owned not acquired through foreclosure were sold at a total net gain of $697,000.  The properties sold included three former branch locations, which were sold at a total net gain of $270,000, as well as vacant land which was sold at a gain of $427,000. 

At December 31, 2015, residential mortgage loans totaling $2.4 million were in the process of foreclosure, $2.1 million of which were acquired loans.  Of the $2.1 million of acquired loans, $1.5 million are covered by loss sharing agreements and $646,000 were acquired in the Valley Bank transaction. 

Expenses applicable to other real estate owned for the years ended December 31, 2015, 2014 and 2013, included the following:

	2015	2014	2013
(In Thousands)
Net gain on sales of real estate	$(397)	$(91)	$(231)
Valuation write-downs	890	3,343	1,384
Operating expenses, net of rental
income	2,033	2,384	2,915
	$2,526	$5,636	$4,068