Note 8: Other Real Estate Owned

6 Months Ended

Jun. 30, 2020

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:

		June 30,		December 31,
		2020		2019
		(In Thousands)
Foreclosed assets held for sale and repossessions
One- to four-family construction	$	-	$	-
Subdivision construction		350		689
Land development		1,358		1,816
Commercial construction		-		-
One- to four-family residential		291		601
Other residential		-		-
Commercial real estate		-		-
Commercial business		-		-
Consumer		340		545
		2,339		3,651
Foreclosed assets acquired through FDIC-assisted
transactions, net of discounts		1,236		1,003
Foreclosed assets held for sale and repossessions, net		3,575		4,654
Other real estate owned not acquired through foreclosure		860		871
Other real estate owned and repossessions	$	4,435	$	5,525

At both June 30, 2020 and December 31, 2019, other real estate owned not acquired through foreclosure included six properties, all of which were branch locations that were closed and are held for sale.  

At June 30, 2020, residential mortgage loans totaling $751,000 were in the process of foreclosure, $650,000 of which were acquired loans.  This does not include one loan totaling $57,000 that is in the process of foreclosure that is owned by Fannie Mae and serviced by the Bank. Pursuant to Section 4022 of the recently-enacted CARES Act, the Company has suspended all foreclosure proceedings. Under this provision, no mortgage servicer of any federally-backed mortgage loan is permitted to initiate any foreclosure process, whether judicial or non-judicial, move for a foreclosure judgment or order of sale, or execute a foreclosure- related eviction or foreclosure sale for a 60-day period, beginning March 18, 2020. This provision was subsequently extended through August 31, 2020.

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.

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

		Three Months Ended
		June 30,
		2020		2019
		(In Thousands)
Net gains on sales of other real estate owned and repossessions	$	(5)	$	(244)
Valuation write-downs		50		197
Operating expenses, net of rental income		223		466
	$	268	$	419

		Six Months Ended
		June 30,
		2020		2019
		(In Thousands)
Net gains on sales of other real estate owned and repossessions	$	(101)	$	(410)
Valuation write-downs		213		444
Operating expenses, net of rental income		635		1,005
	$	747	$	1,039