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Other Real Estate Owned and Repossessions
 12 Months Ended
Dec. 31, 2020
Other Real Estate [Abstract]  
Other Real Estate Owned and Repossessions

5.

OTHER REAL ESTATE OWNED AND REPOSSESSIONS

Other Real Estate Owned

Other real estate and certain other assets acquired in foreclosure are reported at the net realizable value of the property, less estimated costs to sell. The following table summarizes foreclosed property activity as of the years ended December 31, 2020 and 2019:

 

 

 

December 31,

2020

 

 

December 31,

2019

 

 

 

(Dollars in Thousands)

 

Beginning balance

 

$

1,078

 

 

$

1,505

 

Additions (1)

 

 

293

 

 

 

313

 

Sales proceeds

 

 

(413

)

 

 

(664

)

Gross gains

 

 

48

 

 

 

39

 

Gross losses

 

 

(47

)

 

 

(77

)

Net losses

 

 

1

 

 

 

(38

)

Impairment

 

 

(10

)

 

 

(38

)

Ending balance

 

$

949

 

 

$

1,078

 

 

 

(1)

Additions to other real estate owned (“OREO”) include transfers from loans, other assets and capitalized improvements to existing OREO properties.

Valuation adjustments are recorded in other non-interest expense and are primarily post-foreclosure write-downs that are a result of continued declining property values based on updated appraisals or other indications of value, such as offers to purchase. Net realizable value less estimated costs to sell of foreclosed residential real estate held by the Company was $28 thousand and $0.1 million as of December 31, 2020 and 2019, respectively. In addition, the Company did not hold any consumer mortgage loans collateralized by residential real estate that were in the process of foreclosure as of December 31, 2020 and held $0.7 million of these loans as of December 31, 2019.

Repossessed Assets

 

In addition to the other real estate and other assets acquired in foreclosure, the Company also acquires assets through the repossession of the underlying collateral of loans in default. The following table summarizes repossessed asset activity as of the years ended December 31, 2020 and 2019:

 

 

 

December 31,

2020

 

 

December 31,

2019

 

 

 

(Dollars in Thousands)

 

Beginning balance

 

$

256

 

 

$

229

 

Transfers from loans

 

 

1,095

 

 

 

1,027

 

Sales proceeds

 

 

(674

)

 

 

(569

)

Gross gains

 

 

—

 

 

 

2

 

Gross losses

 

 

(432

)

 

 

(433

)

Net losses

 

 

(432

)

 

 

(431

)

Impairment

 

 

—

 

 

 

—

 

Ending balance

 

$

245

 

 

$

256