REAL ESTATE OWNED

3 Months Ended

Mar. 31, 2017

REAL ESTATE OWNED

REAL ESTATE OWNED

4.REAL ESTATE OWNED

Activity in real estate owned, net was as follows:

	Three Months Ended
	March 31,
	2017		2016
Beginning of year	$	1,824	$	2,347
Additions		126		121
Sales		(577)		—
(Additions) subtractions to valuation allowance, net		—		(85)
End of period	$	1,373	$	2,383

Activity in the valuation allowance was as follows:

	2017		2016
Beginning of year	$	803	$	616
Write-downs of other real estate, net		—		85
Reductions from sale		—		—
End of Period	$	803	$	701

Expenses related to foreclosed assets include:

	Three Months Ended
	March 31,
	2017		2016
		(in thousands)
Net (gain) loss on sales, included in other income on income statement	$	(46)	$	—
Additions to valuation allowance, net		—		85
Operating expenses, net of rental income		79		27
Repossession expenses, net		79		112
Net expense, net of gain or loss on sales, for the period	$	33	$	112