Note 8: Other Real Estate Owned

9 Months Ended

Sep. 30, 2017

Notes

Note 8: Other Real Estate Owned

NOTE 8: OTHER REAL ESTATE OWNED

Major classifications of other real estate owned were as follows:

	September 30,	December 31,
	2017	2016
	(In Thousands)
Foreclosed assets held for sale
One- to four-family construction	$                    --	$                  --
Subdivision construction	5,118	6,360
Land development	10,052	10,886
Commercial construction	--	--
One- to four-family residential	203	1,217
Other residential	161	954
Commercial real estate	3,214	3,841
Commercial business	2,876	--
Consumer	1,793	1,991
	23,417	25,249
FDIC-supported foreclosed assets, net of discounts	--	1,426
Acquired foreclosed assets no longer covered by FDIC loss sharing
agreements, net of discounts	2,861	316
Acquired foreclosed assets not covered by FDIC loss sharing
agreements, net of discounts	1,774	1,952
Foreclosed assets held for sale, net	28,052	28,943
Other real estate owned not acquired through foreclosure	2,064	3,715
Other real estate owned	$          30,116	$        32,658

At September 30, 2017, 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 acquired for a potential branch location.  During the nine months ended September 30, 2017, three former branch locations were sold at an aggregate gain of $236,000, which is included in the gain on sales of other real estate owned amount in the table below.  There was no activity during the three months ended September 30, 2017.

At September 30, 2017, residential mortgage loans totaling $2.1 million were in the process of foreclosure, $2.0 million of which were acquired loans.

Expenses applicable to other real estate owned included the following:

	Three Months Ended
	September 30,
	2017	2016
	(In Thousands)
Net (gain) loss on sales of other real estate owned	$            (110)	$                 43
Valuation write-downs	462	338
Operating expenses, net of rental income	991	917
	$          1,343	$          1,298

	Nine Months Ended
	September 30,
	2017	2016
	(In Thousands)
Net gain on sales of other real estate owned	$            (576)	$            (168)
Valuation write-downs	--	430
Operating expenses, net of rental income	3,171	2,821
	$          2,595	$          3,083