Note 8: Other Real Estate Owned

3 Months Ended

Mar. 31, 2017

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,
	2017	2016
	(In Thousands)
Foreclosed assets held for sale
One- to four-family construction	$                     —		$                     —
Subdivision construction	6,313		6,360
Land development	10,692		10,886
Commercial construction	—		—
One- to four-family residential	1,210		1,217
Other residential	810		954
Commercial real estate	3,210		3,841
Commercial business	—		—
Consumer	2,668		1,991
	24,903		25,249
FDIC-supported foreclosed assets, net of discounts	2,875		1,426
Acquired foreclosed assets no longer covered by FDIC loss sharing
agreements, net of discounts	351		316
Acquired foreclosed assets not covered by FDIC loss sharing
agreements, net of discounts	2,307		1,952
Foreclosed assets held for sale, net	30,436		28,943
Other real estate owned not acquired through foreclosure	2,240		3,715
Other real estate owned	$             32,676		$             32,658

Other real estate owned not acquired through foreclosure includes 14 properties, 13 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, 2017, three former branch locations were sold at a gain of $269,000, which is included in the gain on sales of other real estate owned amount in the table below.

At March 31, 2017, residential mortgage loans totaling $1.4 million were in the process of foreclosure, $1.3 million of which were acquired loans.  Of the $1.3 million of acquired loans, $818,000 was covered by a loss sharing agreements as of March 31, 2017 (relating to the InterBank transaction) and $413,000 was acquired in the Valley Bank transaction. 

Expenses applicable to other real estate owned included the following:

	Three Months Ended
	March 31,
	2017	2016
	(In Thousands)
Net gain on sales of other real estate owned	$                  (311)	$                     (98)
Valuation write-downs	60	374
Operating expenses, net of rental income	826	635
	$                     575	$                     911