Note 8 - Property Held for Sale

12 Months Ended

Dec. 31, 2023

Notes to Financial Statements

Real Estate Owned [Text Block]

NOTE 8.  PROPERTY HELD FOR SALE

Property held for sale consists of premises held for sale (if any) and real estate acquired through foreclosure on loans secured by such real estate.  Qualifying premises are transferred to property held for sale at estimated fair value less anticipated selling costs, establishing a new cost basis.  Foreclosed properties are recorded at the estimated fair value less anticipated selling costs based upon the property’s appraised value at the date of foreclosure, with any difference between the fair value of foreclosed property and the carrying value of the related loan charged to the allowance for credit losses.  We perform periodic valuations of property held for sale subsequent to transfer.  Changes in value subsequent to transfer are recorded in noninterest expense.  Gains or losses resulting from the sale of property held for sale is recognized on the date of sale and is included in noninterest expense.  Depreciation is not recorded on property held for sale.  Expenses incurred in connection with operating foreclosed properties are charged to noninterest expense.

The following table presents the activity of property held for sale during 2023, 2022 and 2021.

Dollars in thousands	2023			2022			2021
Beginning balance	$	5,067		$	9,858		$	15,588
Acquisitions		217			6			532
Capitalized improvements		2			36			—
Dispositions		(1,425	)		(4,646	)		(4,845	)
Valuation adjustments		(132	)		(187	)		(1,417	)
Balance at year end	$	3,729		$	5,067		$	9,858

At December 31, 2023, our foreclosed properties of consumer residential real estate totaled $255,000.