OTHER REAL ESTATE OWNED

3 Months Ended

Mar. 31, 2017

OTHER REAL ESTATE OWNED

OTHER REAL ESTATE OWNED

NOTE 5 — OTHER REAL ESTATE OWNED

Other real estate owned is recorded in other assets on the balance sheet.  Activity in other real estate owned was as follows:

	Three months ended  March 31,
	2017		2016
Beginning Balance	$	1,875	$	1,959
Transfer to other real estate owned		441		537
Sale — Out of other real estate owned		(496)		(586)
Write-down		(37)		(19)
Ending Balance	$	1,783	$	1,891

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:

	Three months ended  March 31,
	2017		2016
Beginning Balance —	$	(236)	$	(217)
Impairments during year		(37)		(19)
Recovery on impairments		11		—
Ending Balance —	$	(262)	$	(236)

Expenses related to foreclosed assets for the period ending March 31 include:

	Three months ended  March 31,
	2017		2016
Write-downs	$	37	$	19
Losses/(gains)on sales		(159)		(168)
Net loss/(gain)	$	(122)	$	(149)
Operating expenses	$	43	$	5

Foreclosed residential real estate properties included in other assets on the Consolidated Balance Sheets totaled $1,108 and $1,443 at March 31, 2017 and December 31, 2016, respectively. Retail mortgage loans secured by residential real estate properties for which formal foreclosure proceedings are in process according to local requirements totaled $4,344 and $3,266 at March 31, 2017 and December 31, 2016, respectively.