OTHER REAL ESTATE OWNED

6 Months Ended

Jun. 30, 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  June 30,				Six months ended June 30,
	2017		2016		2017		2016
Beginning Balance	$	1,783	$	1,891	$	1,875	$	1,959
Transfer to other real estate owned		667		446		1,108		983
Sale — Out of other real estate owned		(595)		(814)		(1,091)		(1,400)
Acquisition		227		1,668		227		1,668
Write-down		(10)		(11)		(47)		(30)
Ending Balance	$	2,072	$	3,180	$	2,072	$	3,180

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  June 30,				Six months ended June 30,
	2017		2016		2017		2016
Beginning Balance —	$	(262)	$	(236)	$	(236)	$	(217)
Impairments during year		(10)		(11)		(47)		(30)
Recovery on impairments		35		13		46		13
Ending Balance —	$	(237)	$	(234)	$	(237)	$	(234)

Expenses related to foreclosed assets for the period ending June 30 include:

	Three months ended  June 30,				Six months ended June 30,
	2017		2016		2017		2016
Write-downs	$	10	$	11	$	47	$	30
Losses/(gains)on sales		(70)		(48)		(229)		(216)
Net loss/(gain)	$	(60)	$	(37)	$	(182)	$	(186)
Operating expenses	$	39	$	52	$	82	$	57

Foreclosed residential real estate properties included in other assets on the Consolidated Balance Sheets totaled $1,156 and $1,443 at June 30, 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 $4,195 and $3,266 at June 30, 2017 and December 31, 2016, respectively.