XML 23 R13.htm IDEA: XBRL DOCUMENT v3.7.0.1
REAL ESTATE OWNED, NET
 3 Months Ended
Mar. 31, 2017
Real Estate [Abstract]  
REAL ESTATE OWNED, NET
REAL ESTATE OWNED, NET

The following table presents the changes in REO for the three months ended March 31, 2017 and 2016 (in thousands):
 
Three Months Ended
March 31,
 
2017
 
2016
Balance, beginning of the period
$
11,081

 
$
11,627

Additions from loan foreclosures
—

 
2

Additions from acquisitions
—

 
400

Proceeds from dispositions of REO
(9,193
)
 
(4,666
)
Gain on sale of REO
1,202

 
49

Valuation adjustments in the period
(50
)
 
(205
)
Balance, end of the period
$
3,040

 
$
7,207


 
 
 
 
 
 
 
 

REO properties are recorded at the estimated fair value of the property, less expected selling costs, establishing a new cost basis.  Subsequently, REO properties are carried at the lower of the new cost basis or updated fair market values, based on updated appraisals of the underlying properties, as received.  Valuation allowances on the carrying value of REO may be recognized based on updated appraisals or on management’s authorization to reduce the selling price of a property. At March 31, 2017 and December 31, 2016, the Company had $917,000 of foreclosed one- to four-family residential real estate properties held as REO. The recorded investment in one- to four-family residential loans in the process of foreclosure was $1.1 million at March 31, 2017 compared with $715,000 at December 31, 2016.