REAL ESTATE OWNED

6 Months Ended

Jun. 30, 2017

REAL ESTATE OWNED

REAL ESTATE OWNED

4.REAL ESTATE OWNED

Activity in real estate owned, net was as follows:

	Six Months Ended
	June 30,
	2017		2016
Beginning of year	$	1,824	$	2,347
Additions		1,897		193
Sales		(901)		(15)
(Additions) subtractions to valuation allowance, net		(38)		(85)
End of period	$	2,782	$	2,440

Activity in the valuation allowance was as follows:

	2017		2016
Beginning of year	$	803	$	616
Write-downs of other real estate, net		38		85
Reductions from sale		(46)		—
End of Period	$	795	$	701

Expenses related to foreclosed assets include:

	Six Months Ended
	June 30,
	2017		2016
		(in thousands)
Net (gain) loss on sales, included in other income on income statement	$	(17)	$	—
Additions to valuation allowance, net		38		85
Operating expenses, net of rental income		147		58
Repossession expense, net		185		143
Net expense, net of gain or loss on sales, for the period	$	168	$	143

	Three Months Ended
	June 30,
	2017		2016
		(in thousands)
Net (gain) loss on sales, included in other income on income statement	$	28	$	—
Additions to valuation allowance, net		38		—
Operating expenses, net of rental income		68		31
Repossession expense, net		106		31
Net expense, net of gain or loss on sales, for the period	$	134	$	31