Note 8: Other Real Estate Owned

3 Months Ended

Sep. 30, 2018

Notes

Note 8: Other Real Estate Owned

NOTE 8: OTHER REAL ESTATE OWNED AND REPOSSESSIONS

Major classifications of other real estate owned were as follows:

	September 30,	December 31,
	2018	2017
	(In Thousands)
Foreclosed assets held for sale and repossessions
One- to four-family construction	$                   —	$                 —
Subdivision construction	2,264	5,413
Land development	4,495	7,229
Commercial construction	—	—
One- to four-family residential	657	112
Other residential	—	140
Commercial real estate	1,002	1,694
Commercial business	—	—
Consumer	1,020	1,987
	9,438	16,575
Foreclosed assets acquired through FDIC-assisted
transactions, net of discounts	1,847	3,799
Foreclosed assets held for sale and repossessions, net	11,285	20,374
Other real estate owned not acquired through foreclosure	1,559	1,628
Other real estate owned and repossessions	$            12,844	$          22,002

At September 30, 2018, other real estate owned not acquired through foreclosure included nine properties, eight of which were branch locations that were closed and are held for sale, and one of which is land acquired for a potential branch location.  At December 31, 2017, other real estate owned not acquired through foreclosure included ten properties, nine of which were branch locations that were closed and are held for sale, and one of which is land acquired for a potential branch location. 

At September 30, 2018, residential mortgage loans totaling $1.3 million were in the process of foreclosure, $1.1 million of which were acquired loans.

Expenses applicable to other real estate owned included the following:

	Three Months Ended
	September 30,
	2018	2017
	(In Thousands)
Net gain on sales of other real estate and repossessions	$                  (549)	$             (311)
Valuation write-downs	178	462
Operating expenses, net of rental income	869	1,192
	$                    498	$            1,343

	Nine Months Ended
	September 30,
	2018	2017
	(In Thousands)
Net gain on sales of other real estate and repossessions	$               (1,998)	$          (1,098)
Valuation write-downs	3,551	522
Operating expenses, net of rental income	2,823	3,171
	$                 4,376	$            2,595