REAL ESTATE OWNED

12 Months Ended

Dec. 31, 2017

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,
	2017		2016
Beginning of year	$	1,824	$	2,347
Additions		1,897		3,735
Capitalized Expenditures		47		—
Sales		(1,344)		(4,071)
Fair value adjustments		(20)		(187)
End of period	$	2,404	$	1,824

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

	2017		2016		2015
Beginning of year	$	803	$	616	$	1,583
Fair value adjustments		20		187		252
Reductions from sale		(46)		—		(1,219)
End of Period	$	777	$	803	$	616

Expenses related to foreclosed assets include (in thousands):

	Year Ended
	December 31,
	2017		2016		2015
Net (gain) loss on sales, included in other income on income statement	$	(33)	$	(128)	$	(5)
Fair value adjustments		20		187		252
Operating expenses, net of rental income		188		214		164
Repossession expense, net		208		401		416
Net expense, net of gain or loss on sales, for the period	$	175	$	273	$	411