Other Real Estate and Other Assets Acquired in Settlement of Loans

9 Months Ended

Sep. 30, 2023

Other Real Estate and Other Assets Acquired in Settlement of Loans


	September 30,		December 31,
(in thousands)	2023		2022

Real estate construction - commercial	$	10,054	$	10,094
Real estate mortgage - residential	71		179
Real estate mortgage - commercial	706		1,186

Total	$	10,831	$	11,459
Less valuation allowance for other real estate owned	(7,267)		(2,664)
Total other real estate owned and repossessed assets	$	3,564	$	8,795

Changes in the net carrying amount of other real estate owned and repossessed assets were as follows for the periods indicated:


	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2023		2022		2023		2022
Balance at beginning of period	$	10,924	$	11,819	$	11,459	$	13,436
Additions net of (charge-offs)	—		55		44		3
Proceeds from sales	(54)		—		(681)		(1,348)
Charge-offs against the valuation allowance for other real estate owned, net	(40)		—		(40)		(219)
Net gain on sales	1		—		49		2
Total other real estate owned	10,831		11,874		$	10,831	$	11,874
Less valuation allowance for other real estate owned	(7,267)		(2,664)		(7,267)		(2,664)
Balance at end of period	$	3,564	$	9,210	$	3,564	$	9,210

At September 30, 2023, there were $72,000 in consumer mortgage loans secured by residential real estate properties in the process of foreclosure compared to no such consumer mortgage loans at December 31, 2022.

Activity in the valuation allowance for other real estate owned was as follows for the periods indicated:


	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2023		2022		2023		2022
Balance at beginning of period	$	4,495	$	2,664	$	2,664	$	2,911
Provision for (release of) valuation allowance for other real estate owned	2,812		—		4,643		(28)
Charge-offs	(40)		—		(40)		(219)
Balance at end of period	$	7,267	$	2,664	$	7,267	$	2,664