Note 6 - Other Real Estate Owned

12 Months Ended

Dec. 31, 2014

Disclosure Text Block [Abstract]

Real Estate Owned [Text Block]

6.     Other Real Estate Owned

At December 31, 2014, the net carrying value of other real estate owned (“OREO”) decreased $21.5 million, or 40.6%, to $31.5 million from $53.0 million at December 31, 2013. The carrying amount of foreclosed residential real estate properties held were $4.7 million at December 31, 2014, compared to $202,000 at December 31, 2013. OREO located in California was $4.1 million and was comprised primarily of one residential property of $2.0 million, four commercial use buildings of $1.2 million, one residential construction project of $526,000, one parcel of land zoned for residential purpose of $243,000, and one parcel of land zoned for commercial purpose of $235,000. OREO located in Texas was $15.7 million and was comprised of three parcels of land zoned for commercial purpose of $12.3 million, one medical office building of $1.6 million, a retail store of $761,000, a commercial building construction project of $752,000, and a shopping center of $304,000. OREO located in Illinois was $4.0 million and was comprised of two multi-family residential properties of $3.1 million and an office of $921,000. OREO located in the state of Washington was an office and commercial use building of $3.8 million. OREO located in the state of New York was $3.8 million and was comprised of one residential property of $2.7 million and a retail store of $1.1 million.

For 2013, OREO located in California was $10.9 million and was comprised primarily of eight parcels of land zoned for residential purpose of $9.0 million, three commercial use buildings of $564,000, three commercial building construction projects of $635,000, one residential construction project of $530,000, and one parcel of land zoned for commercial purpose of $235,000. OREO located in Texas was $27.3 million and was comprised of three office and commercial use buildings of $12.5 million, six parcels of land zoned for residential purposes of $12.7 million, four commercial building construction projects of $1.3 million and a retail store of $766,000. OREO located in the state of Washington was $6.5 million and was comprised three parcels of land zoned for residential purpose of $667,000 and one office and commercial use building of $5.8 million. OREO located in the state of New York was one office and commercial use building $893,000. OREO located in the state of North Carolina was one commercial use building of $4.1 million. OREO located in Illinois was $3.3 million and was comprised of one condominium property of $2.4 million, two commercial use properties of $639,000 and one residential property of $202,000.

An analysis of the activity in the valuation allowance for other real estate losses for the years ended December 31, 2014, 2013, and 2012 is as follows:

	Year Ended December 31,
	2014			2013			2012
	(In thousands)
Balance, beginning of year	$	13,384		$	19,556		$	26,422
Provision/(Reversal) for losses		1,619			(2,122	)		10,668
OREO disposal		(12,893	)		(4,050	)		(17,534	)
Balance, end of year	$	2,110		$	13,384		$	19,556

The following table presents the components of other real estate owned expense for the years ended December 31, 2014, 2013, and 2012:

	Year Ended December 31,
	2014			2013			2012
	(In thousands)
Operating expense	$	1,142		$	3,680		$	4,817
Provision/(reversal) for losses		1,619			(2,122	)		10,668
Net gain on transfers and disposals		(4,065	)		(1,793	)		(369	)
Total other real estate owned expense	$	(1,304	)	$	(235	)	$	15,116