OTHER REAL ESTATE OWNED

9 Months Ended

Sep. 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  September 30,				Nine months ended September 30,
	2017		2016		2017		2016
Beginning Balance	$	2,072	$	3,180	$	1,875	$	1,959
Transfer to other real estate owned		362		564		1,470		1,547
Sale — Out of other real estate owned		(845)		(1,441)		(1,936)		(2,841)
Acquisition		—		—		227		1,668
Write-down		(21)		(61)		(68)		(91)
Ending Balance	$	1,568	$	2,242	$	1,568	$	2,242

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  September 30,				Nine months ended September 30,
	2017		2016		2017		2016
Beginning Balance —	$	(237)	$	(234)	$	(236)	$	(217)
Impairments during year		(21)		(61)		(68)		(91)
Recovery on impairments		20		5		66		18
Ending Balance —	$	(238)	$	(290)	$	(238)	$	(290)

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

	Three months ended  September 30,				Nine months ended September 30,
	2017		2016		2017		2016
Write-downs	$	21	$	61	$	68	$	91
Losses/(gains)on sales		(65)		(128)		(294)		(344)
Net loss/(gain)	$	(44)	$	(67)	$	(226)	$	(253)
Operating expenses	$	24	$	46	$	106	$	103

Foreclosed residential real estate properties included in other assets on the Consolidated Balance Sheets totaled $559 and $1,443 at September 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 $3,157 and $3,266 at September 30, 2017 and December 31, 2016, respectively.