Note 5: Other Real Estate Owned

12 Months Ended

Dec. 31, 2016

Notes

Note 5: Other Real Estate Owned

Note 5:      Other Real Estate Owned

Major classifications of other real estate owned at December 31, 2016 and 2015, were as follows:

	2016	2015
	(In Thousands)
Foreclosed assets held for sale
One- to four-family construction	$                     —	$                     —
Subdivision construction	6,360	7,016
Land development	10,886	12,133
Commercial construction	—	—
One- to four-family residential	1,217	1,375
Other residential	954	2,150
Commercial real estate	3,841	3,608
Commercial business	—	—
Consumer	1,991	1,109
	25,249	27,391
FDIC-supported foreclosed assets, net of discounts	1,426	1,834
Acquired foreclosed assets no longer covered by
FDIC loss sharing agreements, net of discounts	316	460
Acquired foreclosed assets not covered by FDIC
loss sharing agreements, net of discounts (Valley Bank)	1,952	995
Foreclosed assets held for sale, net	28,943	30,680
Other real estate owned not acquired through
foreclosure	3,715	1,213
Other real estate owned	$             32,658	$             31,893

 As of December 31, 2016, other real estate owned not acquired through foreclosure included 17 properties,16 of which were branch locations that have been closed and are held for sale, andone of which is land which was acquired for a potential branch location. 

During the year ended December 31, 2016, 15 former branch locations were added to other real estate owned not acquired through foreclosure due to the closing of those branches.  Seven former branch locations have been sold during the year at a net gain of $858,000, which is included in the gain of sales of other real estate owned amount in the table below.

At December 31, 2016, residential mortgage loans totaling $3.6 million were in the process of foreclosure, $3.5 million of which were acquired loans.  Of the $3.5 million of acquired loans, $2.6 million are covered by loss sharing agreements, $275,000 were previously covered by loss sharing agreements and $662,000 were acquired in the Valley Bank transaction. 

Expenses applicable to other real estate owned for the years ended December 31, 2016, 2015 and 2014, included the following:

	2016	2015	2014
	(In Thousands)
Net gain on sales of real estate	$                     (68)	$                   (397)	$                     (91)
Valuation write-downs	431	890	3,343
Operating expenses, net of rental income	3,748	2,033	2,384
	$                 4,111	$                 2,526	$                 5,636