OREO

12 Months Ended

Dec. 31, 2021

Other real estate owned (OREO) at December 31, 2021 was $1.7 million, compared to $139,000 at December 31, 2020, an increase of $1.5 million. The OREO balances for 2021 and 2020 are included in the other assets in the balance sheets. The real estate owned at December 31, 2021, consisted of one property. During 2021, the Company disposed of $356,000 of OREO, recognizing a gain of $60,000, compared to $4.2 million of OREO sold in 2020, recognizing a loss of $331,000. The Company did not write-down any OREO property during 2021, compared to $40,000 of write-downs in 2020, based on a decline in appraised values. Operating expenses related to OREO, net of related income, for 2021 and 2020, were $287,000 and $271,000, respectively.

An analysis of OREO activity for the years ended December 31, 2021 and 2020 is as follows:


	For the Year Ended December 31,
	2021		2020
	(Dollars in thousands)
Balance at beginning of period	$	139	$	4,727
Real estate acquired in settlement of loans	1,811		—
Sales of OREO, net	(356)		(4,217)
Valuation adjustments	60		(371)
Balance at end of period	$	1,654	$	139