Other Real Estate Owned (Tables)

9 Months Ended

Sep. 30, 2026

Other Real Estate Owned

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


		Three Months Ended						Nine Months Ended
		September 30,						September 30,
Other real estate owned		2026			2025			2026			2025
Balance at beginning of period		$	622		$	6,486		$	1,427		$	21,617
Property additions, net of participation sold			-			-			632			4,989
Less:
Carrying value of property disposals, net of participation sold			622			-			2,049			19,509
Period valuation adjustments			-			70			10			681
Balance at end of period		$	-		$	6,416		$	-		$	6,416

Schedule of activity in valuation allowance


		Three Months Ended						Nine Months Ended
		September 30,						September 30,
		2026			2025			2026			2025
Balance at beginning of period		$	10		$	562		$	632		$	1,862
Provision for valuation reserves			-			70			10			681
Reductions taken on sales			(10)			-			(642)			(1,911)
Balance at end of period		$	-		$	632		$	-		$	632

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


		Three Months Ended						Nine Months Ended
		September 30,						September 30,
		2026			2025			2026			2025
(Gain) loss on sales, net		$	(77)		$	-		$	(175)		$	160
Provision for valuation reserves			-			70			10			681
Operating expense ⁽¹⁾			47			201			3			1,721
Less:
Lease revenue			-			143			2			526
Net OREO (income) expense		$	(30)		$	128		$	(164)		$	2,036

¹ Operating expense for the nine months ended September 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.