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Other Repossessed Assets

6 Months Ended

Jun. 30, 2023

(9) Other Repossessed Assets

During 2022, the Company repossessed cryptocurrency mining rigs in exchange for the forgiveness of a loan relationship. The repossessed cryptocurrency mining rigs were reported as other repossessed assets at their fair value less costs to sell. These other repossessed assets were subsequently accounted for at lower of cost or fair value less estimated costs to sell. The estimates and assumptions that went into the valuation of the repossessed cryptocurrency mining rigs held as repossessed assets, were based on market data and sales reported by the company.

Activity related to other repossessed assets, which consists of cryptocurrency mining rigs, was as follows:


(In thousands)	Amount
Net balance of other repossessed assets at December 31, 2022	$	6,051
Direct write-downs		(21)
Sales of other repossessed assets		(6,030)
Net balance of other repossessed assets at June 30, 2023	$	—

Activity in the valuation allowance was as follows:


	Three Months Ended				Six Months Ended
	June 30,				June 30,
(In thousands)	2023		2022		2023		2022
Beginning balance	$	—	$	—	$	597	$	—
Reductions from sales of other repossessed assets		—		—		(597)		—
Ending balance	$	—	$	—	$	—	$	—

There were no other repossessed assets outstanding for the three months ended June 30, 2023 and June 30, 2022, and therefore there were no related gains or expenses recognized during those periods. For the six months ended June 30, 2023 the Company recognized $166,000 in net gain on sales of other repossessed assets and $115,000 in operating expenses. There were no other repossessed assets outstanding during the six months ended June 30, 2022 and therefore there were no related gains or expenses recognized during that period.