Other Real Estate Owned

12 Months Ended

Dec. 31, 2017

Real Estate [Abstract]

Other Real Estate Owned

Note (7)—Other real estate owned:

Other real estate owned (“OREO”) includes property acquired through foreclosure proceedings in addition to excess land and facilities held for sale. OREO is carried at fair value less estimated cost to sell the property. The following table summarizes the other real estate owned for the years ended December 31, 2017, 2016 and 2015:

	Year Ended
	December 31,
	2017			2016			2015
Balance at beginning of period	$	7,403		$	11,641		$	7,259
Transfers from loans		3,605			2,724			4,085
Transfers from premises and equipment		3,466			—
Capital improvements		—			—			171
Acquired through merger or acquisition		6,888			—			5,002
Properties sold		(5,438	)		(6,696	)		(3,774	)
Gain on sale of other real estate owned		1,080			1,670			187
Transferred to loans		(256	)		(1,548	)		(785	)
Write-downs and partial liquidations		(306	)		(388	)		(504	)
Balance at end of period	$	16,442		$	7,403		$	11,641

Foreclosed residential real estate properties included in the table above totaled $3,631 and $2,143 as of December 31, 2017 and 2016, respectively. The recorded investment in residential mortgage loans secured by residential real estate properties for which foreclosure proceedings are in process totaled $19 and $96 at December 31, 2017 and 2016, respectively.

During the year ended December 31, 2017, the Company acquired $6,888 in other real estate owned through the merger with the Clayton Banks, including $4,147 in excess land and facilities held for sale. During the fourth quarter of 2017, the Company consolidated an additional five branch locations and transferred an additional $3,466 of excess land and facilities into other real estate owned as held for sale.