OREO

12 Months Ended

Dec. 31, 2020

Other real estate owned (OREO) at December 31, 2020 was $139,000, compared to $4.7 million at December 31, 2019, a decreased of $4.6 million. The OREO balances for 2020 and 2019 are included in the other assets in the balance sheets. The real estate owned at, December 31, 2020, consisted of two properties. During 2020, the Company disposed of $4.2 of OREO, recognizing a loss of $331,000, compared to $2.8 of OREO sold in 2019, recognizing a gain of $86,000. Also during 2020, the Company wrote down OREO property by $40,000, compared to $332,000 of write-downs in 2019, based on a decline in appraised values. Operating expenses related to OREO, net of related income, for 2020 and 2019, were $271,000 and $415,000, respectively.

An analysis of OREO activity for the years ended December 31, 2020 and 2019 is as follows:


	For the Year Ended December 31,
	2020		2019
	(Dollars in thousands)
Balance at beginning of period	$	4,727	$	5,124
Real estate acquired in settlement of loans	—		2,751
Sales of OREO, net	(4,217)		(2,771)
Valuation adjustments and donations	(371)		(377)
Balance at end of period	$	139	$	4,727