OREO

12 Months Ended

Dec. 31, 2020

OREO

OREO

NOTE 7: OREO

At December 31, 2020 and 2019, the carrying amount of OREO was $907,000 and $1.10 million, respectively. At both December 31, 2020 and 2019, OREO was primarily comprised of a property in Midlothian, Virginia previously used by the Bank as its Bellgrade branch, which was consolidated into a nearby branch in 2019.  OREO is otherwise comprised of residential properties and non-residential properties associated with commercial relationships, and are located primarily in Virginia.  Changes in the balance for OREO are as follows:

	Year Ended December 31,
(Dollars in thousands)	2020		2019
Balance at the beginning of year, gross	$	1,191	$	303
Additions		344		1,401
Charge-offs		(57)		—
Sales proceeds		(364)		(521)
Gain on disposition		—		8
Balance at the end of year, gross		1,114		1,191
Less valuation allowance		(207)		(88)
Balance at the end of year, net	$	907	$	1,103

Changes in the allowance for OREO losses are as follows:

	Year Ended December 31,
(Dollars in thousands)	2020		2019		2018
Balance at the beginning of year	$	88	$	57	$	57
Provision for losses		176		31		—
Charge-offs, net		(57)		—		—
Balance at the end of year	$	207	$	88	$	57

Other net noninterest expense applicable to OREO, excluding the provision for losses and gain or loss on disposition, was $38,000, $34,000 and $26,000 for the years ended December 31, 2020, 2019 and 2018, respectively.