Other Real Estate Owned and Repossessed Assets

9 Months Ended

Sep. 30, 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 nine months ended September 30, 2025 and 2024:


	September 30, 2025			September 30, 2024
	(Dollars in Thousands)
Beginning balance	$	1,509		$	602
Additions (1)		—			26
Sales proceeds		(204	)		—
Gross gains		53			—
Gross losses		—			—
Net gains		53			—
Impairment		(200	)		(90	)
Ending balance	$	1,158		$	538

(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 September 30, 2025 and 2024. In addition, the Company did not hold any consumer mortgage loans collateralized by residential real estate that were in the process of foreclosure as of both September 30, 2025 and 2024.

Repossessed Assets

The Company also acquires assets through the repossession of the underlying collateral of loans in default. As of September 30, 2025 and 2024, total repossessed assets were $0.5 million and $49 thousand, respectively. Repossessed assets are included in other assets in the Company's consolidated balance sheets.