Other Real Estate Owned

9 Months Ended

Sep. 30, 2016

Other Real Estate Owned

Other Real Estate Owned

Note 8—Other Real Estate Owned

The following is a summary of information pertaining to OREO:

	Nine Months Ended September 30,
	2016						2015
			Covered						Covered
(Dollars in thousands)	OREO		OREO		Total		OREO		OREO		Total
Beginning balance	$	24,803	$	5,751	$	30,554	$	26,499	$	16,227	$	42,726
Additions		9,296		2,151		11,447		16,190		6,832		23,022
Transfers		4,222		(4,222)		—		2,245		(2,245)		—
Writedowns		(1,939)		(2,131)		(4,070)		(2,763)		(4,910)		(7,673)
Sold		(14,171)		(1,549)		(15,720)		(16,258)		(10,439)		(26,697)
Ending Balance	$	22,211	$	—	$	22,211	$	25,913	$	5,465	$	31,378

As noted above, on June 23, 2016, the Bank entered into an early termination agreement with the FDIC with respect to all of its outstanding loss share agreements.  The covered OREO shown above was presented net of the related fair value discount, and the activity reflected for the covered assets is prior to the early termination of the FDIC loss share agreements.  All remaining OREO previously classified as covered became uncovered during the second quarter of 2016, which consisted of 17 properties with a carrying value of $4.2 million as of March 31, 2016. 

At September 30, 2016, there were a total of 108 properties included in OREO.  This compares to 157 properties included in OREO, with 123 uncovered and 34 covered by loss share agreements with the FDIC, at September 30, 2015.  At September 30, 2016, the Company had $3.7 million in residential real estate included in OREO and $4.7 million in residential real estate consumer mortgage loans in the process of foreclosure.