| OTHER REAL ESTATE OWNED AND OTHER REPOSSESSED ASSETS |
NOTE 5 – OTHER REAL ESTATE OWNED AND OTHER REPOSSESSED ASSETS Changes in other real estate owned and other repossessed assets for the three months ended June 30, 2026 and 2025 were as follows.
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June 30, 2026 |
|
Other Real Estate Owned |
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|
Other Repossessed Assets |
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|
Total |
|
Beginning of period |
|
$ |
5,026 |
|
|
$ |
140 |
|
|
$ |
5,166 |
|
Transfers in |
|
|
21 |
|
|
|
48 |
|
|
|
69 |
|
Net (loss) gain on sales |
|
|
81 |
|
|
|
(11 |
) |
|
|
70 |
|
Proceeds from sales |
|
|
(1,335 |
) |
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|
(59 |
) |
|
|
(1,394 |
) |
|
|
|
3,793 |
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|
|
118 |
|
|
|
3,911 |
|
Additions to valuation reserve |
|
|
— |
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|
|
— |
|
|
|
— |
|
Capitalized cost |
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|
— |
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|
|
— |
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|
— |
|
Recorded investment |
|
$ |
3,793 |
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|
$ |
118 |
|
|
$ |
3,911 |
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June 30, 2025 |
|
Other Real Estate Owned |
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|
Other Repossessed Assets |
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Total |
|
Beginning of period |
|
$ |
4,464 |
|
|
$ |
310 |
|
|
$ |
4,774 |
|
Transfers in |
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|
183 |
|
|
|
142 |
|
|
|
325 |
|
Net (loss) gain on sales |
|
|
(26 |
) |
|
|
23 |
|
|
|
(3 |
) |
Proceeds from sales |
|
|
— |
|
|
|
(288 |
) |
|
|
(288 |
) |
|
|
|
4,621 |
|
|
|
187 |
|
|
|
4,808 |
|
Additions to valuation reserve |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Capitalized cost |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Recorded investment |
|
$ |
4,621 |
|
|
$ |
187 |
|
|
$ |
4,808 |
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Changes in other real estate owned and other repossessed assets for the six months ended June 30, 2026 and 2025 were as follows.
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June 30, 2026 |
|
Other Real Estate Owned |
|
|
Other Repossessed Assets |
|
|
Total |
|
Beginning of period |
|
$ |
5,388 |
|
|
$ |
578 |
|
|
$ |
5,966 |
|
Transfers in |
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|
49 |
|
|
|
127 |
|
|
|
176 |
|
Net (loss) gain on sales |
|
|
84 |
|
|
|
92 |
|
|
|
176 |
|
Proceeds from sales |
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|
(1,716 |
) |
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|
(679 |
) |
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|
(2,395 |
) |
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|
|
3,805 |
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|
|
118 |
|
|
|
3,923 |
|
Additions to valuation reserve |
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|
(12 |
) |
|
|
— |
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|
|
(12 |
) |
Capitalized cost |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Recorded investment |
|
$ |
3,793 |
|
|
$ |
118 |
|
|
$ |
3,911 |
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|
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|
|
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June 30, 2025 |
|
Other Real Estate Owned |
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|
Other Repossessed Assets |
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|
Total |
|
Beginning of period |
|
$ |
4,773 |
|
|
$ |
4,811 |
|
|
$ |
9,584 |
|
Transfers in |
|
|
296 |
|
|
|
388 |
|
|
|
684 |
|
Net (loss) gain on sales |
|
|
8 |
|
|
|
34 |
|
|
|
42 |
|
Proceeds from sales |
|
|
(456 |
) |
|
|
(5,046 |
) |
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|
(5,502 |
) |
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|
|
4,621 |
|
|
|
187 |
|
|
|
4,808 |
|
Additions to valuation reserve |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Capitalized cost |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Recorded investment |
|
$ |
4,621 |
|
|
$ |
187 |
|
|
$ |
4,808 |
|
Expenses related to other real estate owned and other repossessed assets for the three months ended June 30, 2026 and 2025 were as follows.
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June 30, 2026 |
|
Other Real Estate Owned |
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|
Other Repossessed Assets |
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|
Total |
|
Net loss (gain) on sales |
|
$ |
(81 |
) |
|
$ |
11 |
|
|
$ |
(70 |
) |
Gain on initial valuation of collateral |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Provision for unrealized losses |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Operating expenses, net of rental income |
|
|
63 |
|
|
|
42 |
|
|
|
105 |
|
Total |
|
$ |
(18 |
) |
|
$ |
53 |
|
|
$ |
35 |
|
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|
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June 30, 2025 |
|
Other Real Estate Owned |
|
|
Other Repossessed Assets |
|
|
Total |
|
Net loss (gain) on sales |
|
$ |
26 |
|
|
$ |
(23 |
) |
|
$ |
3 |
|
Gain on initial valuation of collateral |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Provision for unrealized losses |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Operating expenses, net of rental income |
|
|
39 |
|
|
|
61 |
|
|
|
100 |
|
Total |
|
$ |
65 |
|
|
$ |
38 |
|
|
$ |
103 |
|
|
|
|
|
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|
|
|
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|
Expenses related to other real estate owned and other repossessed assets for the six months ended June 30, 2026 and 2025 were as follows.
|
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|
June 30, 2026 |
|
Other Real Estate Owned |
|
|
Other Repossessed Assets |
|
|
Total |
|
Net loss (gain) on sales |
|
$ |
(84 |
) |
|
$ |
(92 |
) |
|
$ |
(176 |
) |
Gain on initial valuation of collateral |
|
|
12 |
|
|
|
— |
|
|
|
12 |
|
Provision for unrealized losses |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Operating expenses, net of rental income |
|
|
211 |
|
|
|
79 |
|
|
|
290 |
|
Total |
|
$ |
139 |
|
|
$ |
(13 |
) |
|
$ |
126 |
|
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|
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June 30, 2025 |
|
Other Real Estate Owned |
|
|
Other Repossessed Assets |
|
|
Total |
|
Net loss (gain) on sales |
|
$ |
(8 |
) |
|
$ |
(34 |
) |
|
$ |
(42 |
) |
Gain on initial valuation of collateral |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Provision for unrealized losses |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Operating expenses, net of rental income |
|
|
121 |
|
|
|
125 |
|
|
|
246 |
|
Total |
|
$ |
113 |
|
|
$ |
91 |
|
|
$ |
204 |
|
The balance of other real estate owned includes $402 of foreclosed residential real estate properties recorded as a result of obtaining physical possession of the property at June 30, 2026, and $804 at December 31, 2025. The recorded investment of consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings are in process was $1,274 at June 30, 2026, and $776 at December 31, 2025. At June 30, 2026 and December 31 ,2025, included in the other real estate owned balance is $1,061 and $2,141 related to closed bank locations transferred from premises and equipment.
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