OTHER REAL ESTATE OWNED

12 Months Ended

Dec. 31, 2016

OTHER REAL ESTATE OWNED

OTHER REAL ESTATE OWNED

NOTE 6 — OTHER REAL ESTATE OWNED

Activity in the real estate owned assets, which are included in interest receivable and other assets in the consolidated balance sheets, was as follows:

	2016		2015		2014
Beginning Balance	$	1,959	$	2,688	$	4,120
Transfer to other real estate owned		1,965		1,475		2,585
Sale — Out of other real estate owned		(3,607)		(2,166)		(3,597)
Acquisition		1,668		—		—
Write-down		(110)		(38)		(420)
Ending Balance	$	1,875	$	1,959	$	2,688

The value of the sale amount above is the carrying value of the property when it was sold.

Activity in the valuation account for other real estate was as follows:

	2016		2015		2014
Beginning Balance —	$	(217)	$	(448)	$	(1,328)
Impairments during year		(110)		(38)		(420)
Recovery on impairments		—		—		—
Reductions		91		269		1,300
Ending Balance —	$	(236)	$	(217)	$	(448)

Net (gain)/ loss on OREO activity which is included in non‑interest income and expenses related to foreclosed assets included in other expenses in the consolidated statements of income, were as follows:

	2016		2015		2014
Write-downs	$	110	$	38	$	420
Losses/(gains)on sales		(378)		(106)		(267)
Net loss/(gain)	$	(268)	$	(68)	$	153
Operating expenses	$	154	$	203	$	150

Foreclosed residential real estate properties included in Interest receivable and other assets on the Consolidated Balance Sheets totaled $1,443 and $915 at December 31, 2016 and December 31, 2015, respectively. Retail mortgage loans secured by residential real estate properties for which formal foreclosure proceedings are in process according to local requirements totaled $3,266 and $2,407 at December 31, 2016 and December 31, 2015, respectively.