Other Real Estate Owned

6 Months Ended

Jun. 30, 2017

Other Real Estate Owned

Other Real Estate Owned

Note 6 – 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:

	Quarters Ended				Six Months Ended
	June 30,				June 30,
Other real estate owned	2017		2016		2017		2016
Balance at beginning of period	$	13,481	$	17,745	$	11,916	$	19,141
Property additions		204		586		3,620		968
Property improvements		-		-		-		12
Less:
Proceeds from property disposals, net of gains/losses		1,569		1,590		3,102		2,929
Period valuation adjustments		392		489		710		940
Balance at end of period	$	11,724	$	16,252	$	11,724	$	16,252

Activity in the valuation allowance was as follows:

	Quarters Ended				Six Months Ended
	June 30,				June 30,
	2017		2016		2017		2016
Balance at beginning of period	$	9,659	$	14,399	$	9,982	$	14,127
Provision for unrealized losses		392		489		710		940
Reductions taken on sales		(1,747)		(1,511)		(2,388)		(1,690)
Balance at end of period	$	8,304	$	13,377	$	8,304	$	13,377

Expenses related to OREO, net of lease revenue includes:

	Quarters Ended				Six Months Ended
	June 30,				June 30,
	2017		2016		2017		2016
Gain on sales, net	$	(104)	$	(25)	$	(178)	$	(67)
Provision for unrealized losses		392		489		710		940
Operating expenses		293		420		816		856
Less:
Lease revenue		42		5		100		112
Net OREO expense	$	539	$	879	$	1,248	$	1,617