Other Real Estate Owned

12 Months Ended

Dec. 31, 2016

Other Real Estate Owned

Other Real Estate Owned

Note 7: Other Real Estate Owned

Details related to the activity in the other real estate owned (“OREO”) portfolio, net of valuation reserve, for the periods presented are itemized in the following table.

	Twelve Months Ended
	December 31,
Other real estate owned	2016		2015		2014
Balance at beginning of period	$	19,141	$	31,982	$	41,537
Property additions		1,785		8,998		16,078
Property improvements		16		-		794
Less:
Proceeds from property disposals, net of gains/losses		7,456		17,763		21,868
Period valuation adjustments		1,570		4,076		4,559
Balance at end of period	$	11,916	$	19,141	$	31,982

Activity in the valuation allowance was as follows:

	Twelve Months Ended
	December 31,
	2016		2015		2014
Balance at beginning of period	$	14,127	$	19,229	$	22,284
Provision for unrealized losses		1,570		4,076		4,559
Reductions taken on sales		(5,867)		(9,271)		(7,025)
Other adjustments		152		93		(589)
Balance at end of period	$	9,982	$	14,127	$	19,229

Expenses related to OREO, net of lease revenue includes:

	Twelve Months Ended
	December 31,
	2016		2015		2014
Gain on sales, net	$	(374)	$	(1,073)	$	(989)
Provision for unrealized losses		1,570		4,076		4,559
Operating expenses		1,765		2,888		4,173
Less:
Lease revenue		218		700		826
Net OREO expense	$	2,743	$	5,191	$	6,917