Other Real Estate Owned

12 Months Ended

Dec. 31, 2018

Other Real Estate Owned

Other Real Estate Owned

NOTE 6: OREO

At December 31, 2018 and 2017, OREO was $246,000 and $168,000, respectively. OREO is primarily comprised of residential properties and non-residential properties associated with commercial relationships, and are located primarily in Virginia. Changes in the balance for OREO are as follows:

	Year Ended December 31,
(Dollars in thousands)	2018		2017
Balance at the beginning of year, gross	$	225	$	281
Transfers between loans and other real estate owned		98		208
Charge-offs		—		(29)
Sales proceeds		(18)		(245)
(Loss) gain on disposition		(2)		10
Balance at the end of year, gross		303		225
Less valuation allowance		(57)		(57)
Balance at the end of year, net	$	246	$	168

Changes in the allowance for OREO losses are as follows:

	Year Ended December 31,
(Dollars in thousands)	2018		2017		2016
Balance at the beginning of year	$	57	$	86	$	56
Provision for losses		—		—		135
Charge-offs, net		—		(29)		(105)
Balance at the end of year	$	57	$	57	$	86

Other net noninterest expense applicable to OREO, other than the provision for losses, was $26,000,  $72,000 and $22,000 for the years ended December 31, 2018, 2017 and 2016, respectively.