OREO

12 Months Ended

Dec. 31, 2019

OREO.

OREO

Note 5. OREO

OREO represents properties acquired through foreclosure or other proceedings in settlement of loans and is included in other assets in the accompanying Consolidated Balance Sheets. At December 31, 2019, the Company held $2.7 million in commercial OREO, $0.4 million in residential OREO and an insignificant amount of other repossessed assets. At December 31, 2018, the Company held $0.2 million in commercial OREO, $0.2 million in residential OREO and an insignificant amount of other repossessed assets. At December 31, 2019 the Company had $2.2 million of residential real estate in the process of foreclosure.

The following table summarizes activity related to OREO (dollars in thousands):

	Year Ended		Year Ended
	December 31, 2019		December 31, 2018
OREO:
Beginning balance	$	376	$	1,283
Additions, transfers from loans		4,872		4,025
Additions, fair value from acquisition		149		—
Sales of OREO		(2,277)		(4,914)
Capitalized improvements		2		—
Cash payments collected		(3)		—
Valuation allowance for OREO		(62)		(18)
Ending balance	$	3,057	$	376