Other Real Estate Owned

6 Months Ended

Jun. 30, 2020

Other Real Estate Owned

Other Real Estate Owned

Note 5 – Other Real Estate Owned

Details related to the activity in the other real estate owned (“OREO”) portfolio, net of valuation reserve, for the periods presented are itemized in the following table:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
Other real estate owned	2020		2019		2020		2019
Balance at beginning of period	$	5,049	$	6,365	$	5,004	$	7,175
Property additions, net of acquisition adjustments		93		-		584		-
Property improvements		-		-		-		-
Less:
Proceeds from property disposals, net of participation purchase and of gains/losses		-		501		288		1,302
Period valuation adjustments		60		196		218		196
Other adjustments		-		-		-		9
Balance at end of period	$	5,082	$	5,668	$	5,082	$	5,668

Activity in the valuation allowance was as follows:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2020		2019		2020		2019
Balance at beginning of period	$	6,404	$	7,875	$	6,712	$	8,027
Provision for unrealized losses		60		196		218		196
Reductions taken on sales		-		(10)		(466)		(162)
Balance at end of period	$	6,464	$	8,061	$	6,464	$	8,061

Expenses related to OREO, net of lease revenue includes:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2020		2019		2020		2019
Gain on sales, net	$	-	$	(77)	$	(23)	$	(150)
Provision for unrealized losses		60		196		218		196
Operating expenses		105		129		207		257
Less:
Lease revenue		22		-		22		5
Net OREO expense	$	143	$	248	$	380	$	298