Real Estate Owned

12 Months Ended

Dec. 31, 2024

Real Estate Owned

Note 21 – Real Estate Owned

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

	Year Ended December 31, 2024			Year Ended December 31, 2023
Beginning balance	$	3,000		$	—
Foreclosures and additions		—			3,000
Loss on sale		(432	)		—
Sales		(2,568	)		—
Ending balance	$	—		$	3,000

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 year ended December 31, 2024, the note associated with this loan was sold for $2.6 million and a $0.4 million pre-tax loss was reflected in the Bank’s operating results.

At both December 31, 2024, and 2023, the balance of real estate owned includes no foreclosed residential real estate properties recorded as a result of obtaining physical possession of the property. At December 31, 2024, and 2023, the recorded investment of consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings are in process is $0 and $0, respectively.