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Real Estate Owned ("REO")
6 Months Ended
Jun. 30, 2026
Real Estate [Abstract]  
Real Estate Owned ("REO") Real Estate Owned (“REO”)
Properties acquired through foreclosure are included on the Company's unaudited Condensed Consolidated Balance Sheets as real estate owned. As of June 30, 2026 and December 31, 2025, real estate owned, net totaled $21.0 million and $16.4 million, respectively. During the six months ended June 30, 2026, the Company recorded an impairment loss on real estate owned of $0.2 million compared to none during the six months ended June 30, 2025, which is considered a Level 3 non-recurring fair market value adjustment.
The following table presents the Company’s REO activity during the six months ended June 30, 2026 and June 30, 2025:
June 30, 2026June 30, 2025
(in thousands)
Real estate owned at beginning of period$16,402 $18,574 
Principal basis transferred to real estate owned6,500 6,298 
Charge-offs on principal transferred— (3,978)
Proceeds from sale of real estate owned(2,402)(1,559)
Loans origination from sale of real estate owned— (840)
Impairment loss on real estate owned(191)— 
Gain on sale of real estate owned659 131 
Real estate owned at end of period$20,968 $18,626