REAL ESTATE OWNED

12 Months Ended

Dec. 31, 2016

REAL ESTATE OWNED

REAL ESTATE OWNED

NOTE 5 - REAL ESTATE OWNED

Activity in real estate owned was as follows (in thousands):

	Year Ended
	December 31,
	2016		2015
Beginning of year, net	$	2,347	$	4,603
Additions		3,735		3,394
Acquired with Madison Financial Corporation		—		445
Sales		(4,071)		(7,062)
(Additions) subtractions to valuation allowance, net		(187)		967
End of period, net	$	1,824	$	2,347

Activity in the valuation allowance was as follows (in thousands):

	Year Ended
	December 31,
	2016		2015			2014
Beginning of year	$	616	$	1,583	$	1,524
Write-downs of other real estate, net		187		252		144
Reductions from sale		—		(1,219)		(85)
End of Period	$	803	$	616	$	1,583

Expenses related to foreclosed assets include (in thousands):

	Year Ended
	December 31,
	2016		2015			2014
Net (gain) loss on sales, included in other income on income statement	$	(128)	$	(5)	$	(146)
Additions to valuation allowance, net		187		252		144
Operating expenses, net of rental income		214		164		227
Repossession expense, net		401		416		371
Net expenses	$	273	$	411	$	225