OTHER REAL ESTATE OWNED ("OREO")

9 Months Ended

Sep. 30, 2021

Real Estate [Abstract]

Other Real Estate Owned ("OREO")

OTHER REAL ESTATE OWNED (“OREO”)

OREO assets are presented net of the valuation allowance. The Company considers OREO as classified assets for regulatory and financial reporting. OREO carrying amounts reflect management’s estimate of the realizable value of these properties. An analysis of OREO activity follows.

	Nine Months Ended September 30,				Years Ended December 31,
(dollars in thousands)	2021		2020		2020
Balance at beginning of year	$	3,109	$	7,773	$	7,773
Additions of underlying property	—		1,240		1,240
Disposals of underlying property	(932)		(2,838)		(2,882)
Valuation allowance	(641)		(2,177)		(3,022)
Balance at end of period	$	1,536	$	3,998	$	3,109

Expenses applicable to OREO assets included the following.

	Nine Months Ended September 30,
(dollars in thousands)	2021		2020
Valuation allowance	$	641	$	2,177
Losses (gains) on dispositions	(16)		7
Operating expenses	64		119
	$	689	$	2,303

There were no impaired loans secured by residential real estate for which formal foreclosure proceedings were in the process as of September 30, 2021 and December 31, 2020.