Other Real Estate Owned (OREO)

12 Months Ended

Dec. 31, 2020

Other Real Estate Owned (OREO) [Abstract]

Other Real Estate Owned (OREO)

NOTE 5, 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,
(dollars in thousands)	2020			2019
Balance at beginning of year	$	-		$	83
Transfers to OREO due to foreclosure		254			-
Properties sold		(254	)		(83	)
Balance at end of year	$	-		$	-

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:

Expenses applicable to OREO include the following:

	Years Ended December 31,
(dollars in thousands)	2020			2019
Net gain on sales of real estate	$	62		$	2
Operating expenses, net of income (1)		(20	)		(2	)
Total Income	$	42		$	-

(1) Included in other operating income and other operating expense on the Consolidated Statements of Income