Other Real Estate Owned

12 Months Ended

Dec. 31, 2019

Note 7: Other Real Estate Owned

Details related to the activity in the other real estate owned (“OREO”) portfolio, net of valuation reserve, for the periods presented are itemized in the following table.


	Years Ended
	December 31,
Other real estate owned	2019		2018		2017
Balance at beginning of period	$	7,175	$	8,371	$	11,916
Property additions, net of acquisition adjustments		872		3,316		3,796
Property improvements		-		59		-
Less:
Proceeds from property disposals, net of participation purchase and of gains/losses		2,515		3,990		5,633
Period valuation adjustments		519		581		1,708
Other adjustments		9		-		-
Balance at end of period	$	5,004	$	7,175	$	8,371

Activity in the valuation allowance was as follows:


	Twelve Months Ended
	December 31,
	2019		2018		2017
Balance at beginning of period	$	8,027	$	8,208	$	9,982
Provision for unrealized losses		519		581		1,708
Reductions taken on sales		(1,834)		(762)		(3,482)
Balance at end of period	$	6,712	$	8,027	$	8,208

Expenses related to OREO, net of lease revenue includes:


	Twelve Months Ended
	December 31,
	2019		2018		2017
Gain on sales, net	$	(264)	$	(792)	$	(474)
Provision for unrealized losses		519		581		1,708
Operating expenses		173		649		1,227
Less:
Lease revenue		5		42		296
Net OREO expense	$	423	$	396	$	2,165