Other Real Estate Owned

3 Months Ended

Mar. 31, 2020

Note 5 – 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:


	Three Months Ended
	March 31,
Other real estate owned	2020		2019
Balance at beginning of period	$	5,004	$	7,175
Property additions, net of acquisition adjustments		491		-
Property improvements		-		-
Less:
Proceeds from property disposals, net of participation purchase and of gains/losses		288		801
Period valuation adjustments		158		-
Other adjustments		-		9
Balance at end of period	$	5,049	$	6,365

Activity in the valuation allowance was as follows:


	Three Months Ended
	March 31,
	2020		2019
Balance at beginning of period	$	6,712	$	8,027
Provision for unrealized losses		158		-
Reductions taken on sales		(466)		(152)
Balance at end of period	$	6,404	$	7,875

Expenses related to OREO, net of lease revenue includes:


	Three Months Ended
	March 31,
	2020		2019
Gain on sales, net	$	(23)	$	(73)
Provision for unrealized losses		158		-
Operating expenses		102		128
Less:
Lease revenue		-		5
Net OREO expense	$	237	$	50