Real Estate Owned ("REO")	9 Months Ended
Sep. 30, 2024
Real Estate Owned ("REO")
Real Estate Owned ("REO")	Note 7 — Real Estate Owned (“REO”) The Company owned one foreclosed property valued at approximately $978,000 at September 30, 2024 and $1,456,000 at December 31, 2023, consisting of an office building located in Pennsylvania. The property was acquired through foreclosure in December 2014. Further declines in real estate values may result in impairment charges in the future. Routine holding costs are charged to expense as incurred and improvements to real estate owned that enhance the value of the real estate are capitalized. During the third quarter ended September 30, 2024, the Company recorded a $478,000 impairment on the value of the property due to the deterioration of the office occupancy rate in the Pittsburgh business district office market due to workers continuing to work remotely post pandemic, the high operating expenses due to inflation, and the increased capitalization rate. Therefore, REO expense recorded in the consolidated statements of income amounted to $488,000 and $11,000 for the three months, and $527,000 and $52,000 for the nine months ended September 30, 2024 and 2023, respectively.

Real Estate Owned ("REO")

9 Months Ended

Sep. 30, 2024

Note 7 — Real Estate Owned (“REO”)

The Company owned one foreclosed property valued at approximately $978,000 at September 30, 2024 and $1,456,000 at December 31, 2023, consisting of an office building located in Pennsylvania. The property was acquired through foreclosure in December 2014.

Further declines in real estate values may result in impairment charges in the future. Routine holding costs are charged to expense as incurred and improvements to real estate owned that enhance the value of the real estate are capitalized. During the third quarter ended September 30, 2024, the Company recorded a $478,000 impairment on the value of the property due to the deterioration of the office occupancy rate in the Pittsburgh business district office market due to workers continuing to work remotely post pandemic, the high operating expenses due to inflation, and the increased capitalization rate.

Therefore, REO expense recorded in the consolidated statements of income amounted to $488,000 and $11,000 for the three months, and $527,000 and $52,000 for the nine months ended September 30, 2024 and 2023, respectively.