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Note 5 - Other Real Estate Owned
 12 Months Ended
Dec. 31, 2022
Notes to Financial Statements  
Real Estate Owned [Text Block]

Note 5. Other Real Estate Owned

 

Changes in the balance for OREO during the years ended  December 31, 2022 and 2021 are as follows (in thousands):

 

  

2022

  

2021

 

Balance at the beginning of year, net

 $1,848  $— 

Transfers from loans to other real estate owned

  —   130 

Transfers from property and equipment to other real estate owned

  184   — 

Acquired in merger

  —   2,137 

Sales proceeds

  (2,011)  (288)

Gain on disposition

  176   8 

Balance at the end of year, gross

 $197  $1,987 

Less: valuation allowance

  (13)  (139)

Balance at the end of year, net

 $184  $1,848 

 

There were no residential real estate properties included in the ending OREO balances at December 31, 2022 and 2021. The Bank did not have any consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings were in process as of December 31, 2022.


The Company acquired $2.1 million of OREO in the acquisition of Fincastle including $1.8 million of real estate and buildings formerly used as bank premises by Fincastle during the year ended December 31, 2021. The Company did not place these properties into service as bank premises and has designated them as held for sale. Net expenses applicable to OREO, other than the valuation allowance and gain on disposition, were $52 and $34 thousand for the years ended December 31, 2022 and 2021, respectively.