Property Held For Sale

12 Months Ended

Dec. 31, 2019

Property, Plant and Equipment Assets Held-for-sale Disclosure [Abstract]

Property Held For Sale

PROPERTY HELD FOR SALE

Property held for sale consists of premises held for sale and real estate acquired through foreclosure on loans secured by such real estate.  Qualifying premises are transferred to property held for sale at estimated fair value less anticipated selling costs, establishing a new cost basis.  Foreclosed properties are recorded at the lower of the investment in the real estate or estimated fair value less anticipated selling costs based upon the property’s appraised value at the date of foreclosure, with any difference between the fair value of foreclosed property and the carrying value of the related loan charged to the allowance for loan losses.  We perform periodic valuations of property held for sale subsequent to transfer.  Changes in value subsequent to transfer are recorded in noninterest expense.  Gains or losses resulting from the sale of property held for sale is recognized on the date of sale and is included in noninterest expense.  Depreciation is not recorded on property held for sale.  Expenses incurred in connection with operating foreclosed properties are charged to noninterest expense.

The following table presents the activity of property held for sale during 2019, 2018 and 2017.

Dollars in thousands	2019			2018			2017
Beginning balance	$	21,432		$	21,470		$	24,504
Acquisitions	4,549			1,804			363
Acquisition of FCB	—			—			2,377
Capitalized improvements	512			1,304			316
Dispositions	(5,142		)	(2,370		)	(5,205		)
Valuation adjustments	(2,075		)	(776		)	(885		)
Balance at year end	$	19,276		$	21,432		$	21,470

At December 31, 2019, our foreclosed properties of consumer residential real estate totaled $1.6 million.