Other Real Estate Owned ("OREO")

12 Months Ended

Dec. 31, 2021

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 the activity follows.


(dollars in thousands)	Years Ended December 31,
	2021		2020
Balance at beginning of year	$	3,109	$	7,773
Additions of underlying property	—		1,240
Disposals of underlying property	(1,722)		(2,882)

Valuation allowance	(1,387)		(3,022)
Balance at end of period	$	—	$	3,109

Expenses applicable to OREO assets included the following.


(dollars in thousands)	Years Ended December 31,
	2021		2020
Valuation allowance	$	1,387	$	3,022
Losses (gains) on dispositions	(17)		9
Operating expenses	86		169
	$	1,456	$	3,200

The Company had $0.4 million of impaired loans secured by residential real estate for which formal foreclosure proceedings were in process at December 31, 2021. There were no loans secured by residential real estate for which formal foreclosure proceedings were in process as of December 31, 2020.