Note 6 - Other Real Estate Owned

12 Months Ended

Dec. 31, 2015

Disclosure Text Block [Abstract]

Real Estate Owned [Text Block]

6.     Other Real Estate Owned

At December 31, 2015, the net carrying value of other real estate owned (“OREO”) decreased $6.8 million, or 21.5%, to $24.7 million from $31.5 million at December 31, 2014. OREO located in Texas was $14.6 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, and a retail store of $761,000. OREO located in the state of New York were comprised of two residential properties of $5.7 million. OREO located in Illinois was $2.9 million and was comprised of two multi-family residential properties of $2.4 million, two office and commercial buildings of $320,000, and a residential property of $153,000. OREO located in California was $891,000 and was comprised primarily of one residential construction project of $414,000 and two parcels of land zoned for commercial purpose of $478,000. OREO located in the state of Washington was an office and commercial use building of $635,000.

For 2014, 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.

An analysis of the activity in the valuation allowance for other real estate losses for the years ended December 31, 2015, 2014, and 2013 is as follows:

	Year Ended December 31,
	2015			2014			2013
	(In thousands)
Balance, beginning of year	$	2,110		$	13,384		$	19,556
Provision/(Reversal) for losses		547			1,619			(2,122	)
OREO disposal		(350	)		(12,893	)		(4,050	)
Balance, end of year	$	2,307		$	2,110		$	13,384

The following table presents the components of other real estate owned expense for the years ended December 31, 2015, 2014, and 2013:

	Year Ended December 31,
	2015			2014			2013
	(In thousands)
Operating expense	$	665		$	1,142		$	3,680
Provision/(reversal) for losses		547			1,619			(2,122	)
Net gain on transfers and disposals		(2,012	)		(4,065	)		(1,793	)
Total other real estate owned expense	$	(800	)	$	(1,304	)	$	(235	)