OTHER REAL ESTATE OWNED

12 Months Ended

Dec. 31, 2017

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:

	2017		2016		2015
Beginning Balance	$	1,875	$	1,959	$	2,688
Transfer to other real estate owned		2,917		1,965		1,475
Sale — Out of other real estate owned		(2,797)		(3,607)		(2,166)
Acquisition		227		1,668		—
Write-down		(96)		(110)		(38)
Ending Balance	$	2,126	$	1,875	$	1,959

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:

	2017		2016		2015
Beginning Balance —	$	(236)	$	(217)	$	(448)
Impairments during year		(96)		(110)		(38)
Recovery on impairments		—		—		—
Reductions		84		91		269
Ending Balance —	$	(248)	$	(236)	$	(217)

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:

	2017		2016		2015
Write-downs	$	96	$	110	$	38
Gain on sales		(358)		(378)		(106)
Net gain	$	(262)	$	(268)	$	(68)
Operating expenses	$	162	$	154	$	203

Foreclosed residential real estate properties included in Interest receivable and other assets on the Consolidated Balance Sheets totaled $610 and $1,443 at December 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 $2,645 and $3,266 at December 31, 2017 and December 31, 2016, respectively.