Other Real Estate Owned

9 Months Ended

Sep. 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 allowance, for the periods presented are itemized in the following table:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
Other real estate owned	2020		2019		2020		2019
Balance at beginning of period	$	5,082	$	5,668	$	5,004	$	7,175
Property additions, net of acquisition adjustments		314		305		898		305
Less:
Proceeds from property disposals, net of participation purchase and of gains/losses		2,664		1,088		2,952		2,390
Period valuation adjustments		46		203		264		399
Other adjustments		-		-		-		9
Balance at end of period	$	2,686	$	4,682	$	2,686	$	4,682

Activity in the valuation allowance was as follows:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2020		2019		2020		2019
Balance at beginning of period	$	6,464	$	8,061	$	6,712	$	8,027
Provision for unrealized losses		46		203		264		399
Reductions taken on sales		(4,897)		(798)		(5,363)		(960)
Balance at end of period	$	1,613	$	7,466	$	1,613	$	7,466

Expenses related to OREO, net of lease revenue includes:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2020		2019		2020		2019
Gain on sales, net	$	(165)	$	(104)	$	(188)	$	(254)
Provision for unrealized losses		46		203		264		399
Operating expenses		253		(73)		460		184
Less:
Lease revenue		9		-		31		5
Net OREO expense	$	125	$	26	$	505	$	324