Note 5: Other Real Estate Owned

12 Months Ended

Dec. 31, 2019

Notes

Note 5: Other Real Estate Owned

Note 5:       Other Real Estate Owned and Repossessions

Major classifications of other real estate owned at December 31, 2019 and 2018, were as follows:

		2019		2018
		(In Thousands)
Foreclosed assets held for sale and repossessions
One- to four-family construction	$	—	$	—
Subdivision construction		689		1,092
Land development		1,816		3,191
Commercial construction		—		—
One- to four-family residential		601		269
Other residential		—		—
Commercial real estate		—		—
Commercial business		—		—
Consumer		545		928
		3,651		5,480
Acquired foreclosed assets no longer covered by
FDIC loss sharing agreements, net of discounts		—		167
Acquired foreclosed assets not covered by FDIC
loss sharing agreements, net of discounts (Valley Bank)		1,003		1,234
Foreclosed assets held for sale and repossessions, net		4,654		6,881
Other real estate owned not acquired through foreclosure		871		1,559
Other real estate owned and repossessions	$	5,525	$	8,440

At December 31, 2019, other real estate owned not acquired through foreclosure included six properties all of which were branch locations that were closed and held for sale.  During the year ended December 31, 2019, one former branch location was both added to this category and sold at a gain of $115,000, which is included in the net gains on sales of other real estate owned and repossessions amount in the table below. 

At December 31, 2018, other real estate owned not acquired through foreclosure included nine properties, eight of which were branch locations that were closed and held for sale, and one of which is land acquired for a potential branch location.  During the year ended December 31, 2018, one former branch location was sold at a loss of $24,000, which is included in the net gains on sales of other real estate owned and repossessions amount in the table below. 

At December 31, 2019, residential mortgage loans totaling $1.6 million were in the process of foreclosure, $1.4 million of which were acquired loans.  Of the $1.4 million of acquired loans, $738,000 were previously covered by loss sharing agreements and $689,000 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 for the years ended December 31, 2019, 2018 and 2017, included the following:

		2019		2018		2017
		(In Thousands)
Net gains on sales of other real estate owned and repossessions	$	(750)	$	(2,522)	$	(2,212)
Valuation write-downs		926		3,897		1,585
Operating expenses, net of rental income		2,008		3,544		4,556
	$	2,184	$	4,919	$	3,929