Other Real Estate and Repossessed Assets Acquired in Settlement of Loans

12 Months Ended

Dec. 31, 2018

Other Real Estate and Repossessed Assets Acquired in Settlement of Loans

Other Real Estate and Repossessed Assets Acquired in Settlement of Loans

(3)     Other Real Estate and Repossessed Assets Acquired in Settlement of Loans

(in thousands)	2018		2017
Commercial	$	1,168	$	727
Real estate construction - residential		179		—
Real estate construction - commercial		12,101		12,380
Real estate mortgage - residential		336		382
Real estate mortgage - commercial		2,909		2,909
Repossessed assets		—		5
Total	$	16,693	$	16,403
Less valuation allowance for other real estate owned		(3,002)		(3,221)
Total other real estate and repossessed assets	$	13,691	$	13,182

Changes in the net carrying amount of other real estate owned and repossessed assets were as follows:

Balance at December 31, 2016	$	17,291
Additions		374
Proceeds from sales		(1,115)
Charge-offs against the valuation allowance for other real estate owned, net		(192)
Net gain on sales		45
Balance at December 31, 2017		16,403
Additions		1,106
Proceeds from sales		(585)
Charge-offs against the valuation allowance for other real estate owned, net		(245)
Net gain on sales		14
Total other real estate and repossessed assets	$	16,693
Less valuation allowance for other real estate owned		(3,002)
Balance at December 31, 2018	$	13,691

At December 31, 2018, $200,000 of consumer mortgage loans secured by residential real estate properties were in the process of foreclosure compared to no loans in the process of foreclosure at December 31, 2017.

Activity in the valuation allowance for other real estate owned in settlement of loans for the years ended December 31, 2018, 2017 and 2016, respectively, is summarized as follows:

(in thousands)	2018		2017		2016
Balance, beginning of period	$	3,221	$	3,129	$	3,233
Provision for other real estate owned		26		284		213
Charge-offs		(245)		(192)		(317)
Balance, end of period	$	3,002	$	3,221	$	3,129