Other Real Estate Owned

12 Months Ended

Dec. 31, 2019

NOTE 6: OREO

At December 31, 2019 and 2018, the carrying amount of OREO was $1.10 million and $246,000, respectively. At December 31, 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)	2019		2018
Balance at the beginning of year, gross	$	303	$	225
Additions		1,401		98
Sales proceeds		(521)		(18)
Gain (loss) on disposition		8		(2)
Balance at the end of year, gross		1,191		303
Less valuation allowance		(88)		(57)
Balance at the end of year, net	$	1,103	$	246

Changes in the allowance for OREO losses are as follows:


	Year Ended December 31,
(Dollars in thousands)	2019		2018		2017
Balance at the beginning of year	$	57	$	57	$	86
Provision for losses		31		—		—
Charge-offs, net		—		—		(29)
Balance at the end of year	$	88	$	57	$	57

Other net noninterest expense applicable to OREO, excluding the provision for losses and gain or loss on disposition, was $34,000, $26,000 and $72,000 for the years ended December 31, 2019, 2018 and 2017, respectively.