Other Real Estate Owned (OREO)

12 Months Ended

Dec. 31, 2018

Other Real Estate Owned (OREO) [Abstract]

Other Real Estate Owned (OREO)

NOTE 6, Other Real Estate Owned (OREO)

The Company holds certain parcels of real estate due to completed foreclosure proceedings on defaulted loans or the closing of former branches. An analysis of the balance in OREO is as follows:

	Years Ended December 31,
	2018				2017
	(in thousands)
Balance at beginning of year		$	-		$	2,093
Transfers to OREO due to foreclosure			203			-
Other additions to foreclosed properties			176			-
Properties sold			(296	)		(2,093	)
Balance at end of year		$	83		$	-

Other additions to foreclosed properties in the table above are for properties acquired from Citizens.

OREO is presented net of a valuation allowance for losses. As the fair values of OREO change, adjustments are made to the recorded investment in the properties through the valuation allowance to ensure that all properties are recorded at the lower of cost or fair value. Properties written down in previous periods can be written back up if a current property valuation warrants the change, though never above the original cost of the property. An analysis of the valuation allowance on OREO is as follows:

	Years Ended December 31,
	2018			2017
	(in thousands)
Balance at beginning of year		$	-	$	1,026
Additions and write-downs			-		-
Reductions due to sales or increases in value			-		(1,026	)
Balance at end of year		$	-	$	-

Expenses applicable to OREO include the following:

	Years Ended December 31,
	2018			2017
	(in thousands)
Net loss (gain) on sales of real estate	$	86		$	(18	)
Provision for losses (net write-downs)		-			-
Operating expenses, net of income (1)		(1	)		10
Total Expenses	$	85		$	(8	)
(1) Included in other operating income and other operating expense on the Consolidated Statements of Operations.