Note 8: Other Real Estate Owned and Repossessions

3 Months Ended

Mar. 31, 2019

Notes

Note 8: Other Real Estate Owned and Repossessions

NOTE 8: OTHER REAL ESTATE OWNED AND REPOSSESSIONS

Major classifications of other real estate owned were as follows:

	March 31,	December 31,
	2019	2018
	(In Thousands)
Foreclosed assets held for sale and repossessions
One- to four-family construction	$                   —	$                 —
Subdivision construction	971	1,092
Land development	3,041	3,191
Commercial construction	—	—
One- to four-family residential	985	269
Other residential	—	—
Commercial real estate	—	—
Commercial business	—	—
Consumer	697	928
	5,694	5,480
Foreclosed assets acquired through FDIC-assisted
transactions, net of discounts	1,563	1,401
Foreclosed assets held for sale and repossessions, net	7,257	6,881
Other real estate owned not acquired through foreclosure	1,515	1,559
Other real estate owned and repossessions	$              8,772	$            8,440

At both March 31, 2019 and December 31, 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 March 31, 2019, residential mortgage loans totaling $551,000 were in the process of foreclosure, $334,000 of which were acquired loans.  Of the $334,000 of acquired loans, $101,000 were previously covered by loss sharing agreements and $233,000 were acquired in the Valley Bank transaction.

At December 31, 2018, residential mortgage loans totaling $1.3 million were in the process of foreclosure, $1.0 million of which were acquired loans.  Of the $1.0 million of acquired loans, $873,000 were previously covered by loss sharing agreements and $171,000 were acquired in the Valley Bank transaction.

Expenses applicable to other real estate owned and repossessions included the following:

	Three Months Ended
	March 31,
	2019	2018
	(In Thousands)
Net gains on sales of other real estate owned and repossessions	$                  (166)	$             (472)
Valuation write-downs	247	616
Operating expenses, net of rental income	539	997
	$                    620	$            1,141