Note 7 - Other Real Estate Owned

6 Months Ended

Jun. 30, 2016

Notes to Financial Statements

Real Estate Owned [Text Block]

7. Other Real Estate Owned

The following are changes in OREO during the periods indicated:

	For the three months ended June 30,						For the six months ended June 30,
	2016			2015			2016			2015
	(In thousands)
Balance at beginning of period	$	4,602		$	5,252		$	4,932		$	6,326
Acquisitions		-			289			486			772
Write-down of carrying value		(934	)		(896	)		(934	)		(896	)
Sales		-			(390	)		(816	)		(1,947	)
Balance at end of period (1)	$	3,668		$	4,255		$	3,668		$	4,255

(1) OREO are included in other assets on the Company’s Consolidated Statements of Financial Condition.

The following table shows the gross gains, gross losses and write-downs of OREO reported in the Consolidated Statements of Income during the periods indicated:

	For the three months ended June 30,						For the six months ended June 30,
	2016			2015			2016			2015
	(In thousands)
Gross gains	$	-		$	86		$	37		$	302
Gross losses		-			-			-			(6	)
Write-down of carrying value		(934	)		(896	)		(934	)		(896	)
Total net loss	$	(934	)	$	(810	)	$	(897	)	$	(600	)

We may obtain physical possession of residential real estate collateralizing a consumer mortgage loan via foreclosure or an in-substance repossession. During the three and six months ended June 30, 2016, we did not foreclose on any consumer mortgages through in-substance repossession. At June 30, 2016, we held two foreclosed residential real estate properties totaling $0.6 million and at December 31, 2015, we held one foreclosed residential real estate property for $0.l million. Included within net loans as of June 30, 2016 and December 31, 2015 was a recorded investment of $13.1 million and $15.2 million, respectively, of consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings were in process according to local requirements of the applicable jurisdiction.