Other Real Estate Owned (Tables)

6 Months Ended

Jun. 30, 2026

Other Real Estate Owned

Schedule of activity in the other real estate owned (OREO) portfolio, net of valuation reserve


		Three Months Ended						Six Months Ended
		June 30,						June 30,
Other real estate owned		2026			2025			2026			2025
Balance at beginning of period		$	632		$	2,878		$	1,427		$	21,617
Property additions, net of participation sold			-			4,989			632			4,989
Less:
Carrying value of property disposals, net of participation sold			-			1,224			1,427			19,509
Period valuation adjustments			10			157			10			611
Balance at end of period		$	622		$	6,486		$	622		$	6,486

Schedule of activity in valuation allowance


		Three Months Ended						Six Months Ended
		June 30,						June 30,
		2026			2025			2026			2025
Balance at beginning of period		$	-		$	853		$	632		$	1,862
Provision for valuation reserves			10			157			10			611
Reductions taken on sales			-			(448)			(632)			(1,911)
Balance at end of period		$	10		$	562		$	10		$	562

Schedule of expenses related to foreclosed assets, net of lease revenue


		Three Months Ended						Six Months Ended
		June 30,						June 30,
		2026			2025			2026			2025
(Gain) loss on sales, net		$	-		$	(76)		$	(98)		$	160
Provision for valuation reserves			10			157			10			611
Operating expense (income) ⁽¹⁾			42			(393)			(44)			1,520
Less:
Lease revenue			-			(347)			2			383
Net OREO expense (income)		$	52		$	35		$	(134)		$	1,908

¹ Operating income for the six months ended June 30, 2026 includes a $235,000 net gain on transfer as the fair value less cost to sell on one property transfer exceeded the book value of the loan.