Other Real Estate Owned and Repossessed Assets

3 Months Ended

Mar. 31, 2025

Other Real Estate Owned and Repossessed Assets

OTHER REAL ESTATE OWNED AND REPOSSESSED ASSETS

Other Real Estate Owned

Other real estate and certain other assets acquired in foreclosure are reported at the net realizable value of the property, less estimated costs to sell. The following table summarizes foreclosed property activity as of the three months ended March 31, 2025 and 2024:


	March 31, 2025			March 31, 2024
	(Dollars in Thousands)
Beginning balance	$	1,509		$	602
Additions (1)		—			—
Sales proceeds		(186	)		—
Gross gains		35			—
Gross losses		—			—
Net gains		35			—
Impairment		(30	)		(30	)
Ending balance	$	1,328		$	572

(1)

Additions to other real estate owned (“OREO”) may include transfers from loans, transfers from closed branches, and capitalized improvements to existing OREO properties.

Valuation adjustments are recorded in other non-interest expense and are primarily post-foreclosure write-downs that are a result of continued declining property values based on updated appraisals or other indications of value, such as offers to purchase. Net realizable value less estimated costs to sell of foreclosed residential real estate held by the Company was zero as of both March 31, 2025 and 2024. In addition, the Company held zero and $20 thousand in consumer mortgage loans collateralized by residential real estate that were in the process of foreclosure as of March 31, 2025 and 2024, respectively.

Repossessed Assets

The Company also acquires assets through the repossession of the underlying collateral of loans in default. As of both March 31, 2025 and 2024, total repossessed assets were $0.2 million. Repossessed assets are included in other assets in the Company's consolidated balance sheets.