REAL ESTATE OWNED

6 Months Ended

Jun. 30, 2016

REAL ESTATE OWNED

REAL ESTATE OWNED

4.REAL ESTATE OWNED

Activity in real estate owned, net was as follows:

	Six Months Ended
	June 30,
	2016		2015
Beginning of year	$	2,347	$	4,603
Additions		193		3,334
Sales		(15)		(4,727)
(Additions) subtractions to valuation allowance, net		(85)		385
End of period	$	2,440	$	3,595

Activity in the valuation allowance was as follows:

	Six Months Ended
	June 30,
	2016		2015
Beginning of year	$	616	$	1,583
Write-downs of other real estate, net		85		227
Reductions from sale		—		(612)
End of Period	$	701	$	1,198

Expenses related to foreclosed assets include:

	Six Months Ended
	June 30,
	2016		2015
Net loss on sales	$	—	$	59
Additions to valuation allowance, net		85		227
Operating expenses, net of rental income		58		55
Repossession expense, net		143		282
Net expenses	$	143	$	341

	Three Months Ended
	June 30,
	2016		2015
		(in thousands)
Net loss on sales	$	—	$	20
Additions to valuation allowance, net		—		201
Operating expenses, net of rental income		31		36
Repossession expenses, net		31		237
For the period	$	31	$	257