Note 8: Other Real Estate Owned

3 Months Ended

Mar. 31, 2016

Notes

Note 8: Other Real Estate Owned

NOTE 8: OTHER REAL ESTATE OWNED

Major classifications of other real estate owned were as follows:

	March 31,	December 31,
	2016	2015
(In Thousands)
Foreclosed assets held for sale
One- to four-family construction	$—		$—
Subdivision construction	6,821		7,016
Land development	11,477		12,133
Commercial construction	—		—
One- to four-family residential	1,406		1,375
Other residential	1,962		2,150
Commercial real estate	6,534		3,608
Commercial business	—		—
Consumer	1,449		1,109
	29,649		27,391
FDIC-supported foreclosed assets, net of discounts	1,864		1,834
Acquired foreclosed assets no longer covered by FDIC loss
sharing agreements, net of discounts	417		460
Acquired foreclosed assets not covered by FDIC loss sharing
agreements, net of discounts	1,091		995
Foreclosed assets held for sale, net	33,021		30,680
Other real estate owned not acquired through foreclosure	6,507		1,213
Other real estate owned	$39,528		$31,893

Other real estate owned not acquired through foreclosure includes 20 properties, 19 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 March 31, 2016, 12 former branch locations were added to other real estate owned not acquired through foreclosure due to the closing of those branches in January of 2016, and one of those properties was subsequently sold during the period.  See Note 15 for further information on the branch consolidations. 

At March 31, 2016, residential mortgage loans totaling $1.4 million were in the process of foreclosure, $1.2 million of which were acquired loans.  Of the $1.2 million of acquired loans, $798,000 was covered by loss sharing agreements as of March 31, 2016 and $397,000 was acquired in the Valley Bank transaction. 

Expenses applicable to other real estate owned included the following:

	Three Months Ended
	March 31,
	2016	2015
(In Thousands)
Net (gain) loss on sales of other real estate owned	$(98)	$(125)
Valuation write-downs	374	52
Operating expenses, net of rental income	635	458
	$911	$385