NOTE 4. OTHER REAL ESTATE OWNED

The table below shows the activity in other real estate owned for the years ended December 31, 2025 and 2024 (dollars in thousands).

For the year ended  December 31, 2025, additions to other real estate owned were driven by transfers of commercial real estate and 1-4 family loans to other real estate owned. During the year ended  December 31, 2025, the Company recorded $0.4 million of write-downs of other real estate owned related to a property that was part of the loan relationship that became impaired in the third quarter of 2021 as a result of Hurricane Ida, a former branch location based on a third-party appraisal, and a 1-4 family property.

For the year ended  December 31, 2024, additions to other real estate owned were primarily driven by transfers of 1-4 family loans to other real estate owned. During the year ended  December 31, 2024, the Company transferred one piece of land that was previously being held for a future branch location from “Bank premises and equipment, net” to “Other real estate owned, net” in the accompanying consolidated balance sheets, as the Company did not intend to use the property for banking operations. During the year ended  December 31, 2024, the Company recorded a $0.2 million write-down of other real estate owned primarily related to a former branch location based on a third-party appraisal. 

At December 31, 2025 and 2024, approximately $2.0 million and $0.1 million, respectively, of loans secured by 1-4 family residential property were in the process of foreclosure. At December 31, 2025, other real estate owned included $0.7 million of foreclosed 1-4 family residential properties compared to $1.7 million at December 31, 2024.