REAL ESTATE OWNED

3 Months Ended

Mar. 31, 2024

Real Estate Owned

REAL ESTATE OWNED

NOTE 16 – REAL ESTATE OWNED

Real estate owned activity was as follows (dollars in thousands):

	Three months ended March 31, 2024			Three months ended March 31, 2023
Beginning balance	$	3,000		$	—
Foreclosures and additions		—			—
Loss on sale		(432	)		—
Sales		(2,568	)		—
Ending balance	$	—		$	—

As of September 30, 2023, the Bank experienced a deterioration of one large out of market commercial real estate loan which resulted in this loan becoming nonperforming. As of December 31, 2023, a $3.3 million loss was reflected in the Bank’s operating results, and the remaining $3 million balance was transferred to other real estate owned. During the three months ended March 31, 2024, the note associated with this loan was sold for $2.6 million and a $432,000 pre-tax loss was reflected in the Bank’s operating results. 

At March 31, 2024, and December 31, 2023, there were no foreclosed residential real estate properties recorded as a result of obtaining physical possession of the properties. In addition, at March 31, 2024, and December 31, 2023, there were no recorded investments of consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings were in process.