OTHER REAL ESTATE OWNED AND REPOSSESSIONS

3 Months Ended

Mar. 31, 2021

OTHER REAL ESTATE OWNED AND REPOSSESSIONS

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,
	2021		2020
	(In Thousands)
Foreclosed assets held for sale and repossessions
One- to four-family construction	$	—	$	—
Subdivision construction		169		263
Land development		250		250
Commercial construction		—		—
One- to four-family residential		111		111
Other residential		—		—
Commercial real estate		—		—
Commercial business		—		—
Consumer		174		153
		704		777
Foreclosed assets acquired through FDIC-assisted transactions, net of discounts		615		446
Foreclosed assets held for sale and repossessions, net		1,319		1,223
Other real estate owned not acquired through foreclosure		532		654
Other real estate owned and repossessions	$	1,851	$	1,877

At March 31, 2021 other real estate owned not acquired through foreclosure included five properties, all of which were branch locations that were closed and held for sale. One property that was held for sale at March 31, 2021 was under contract for sale. The sale was completed in April 2021, with no additional loss to the Company. At December 31, 2020, other real estate owned not acquired through foreclosure included seven properties all of which were branch locations that were closed and held for sale.

At March 31, 2021, residential mortgage loans totaling $220,000 were in the process of foreclosure, $161,000 of which were acquired loans related to FDIC-assisted transactions. Pursuant to Section 4022 of the 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 June 30, 2021. At December 31, 2020, residential mortgage loans totaling $602,000 were in the process of foreclosure, $518,000 million of which were acquired loans related to FDIC-assisted transactions.

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

	Three Months Ended
	March 31,
	2021		2020
	(In Thousands)
Net gains on sales of other real estate owned and repossessions	$	(46)	$	(96)
Valuation write-downs		82		163
Operating expenses, net of rental income		232		412
	$	268	$	479