OTHER REAL ESTATE OWNED
 12 Months Ended
Dec. 31, 2016
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:

 

 

 

 

 

 

 

 

 

 

 

 

 

2016

    

2015

    

2014

 

 

 

 

 

 

 

 

 

 

 

 

Beginning Balance

 

$
1,959

 

$
2,688

 

$
4,120

 

Transfer to other real estate owned

 

 
1,965

 

 
1,475

 

 
2,585

 

Sale — Out of other real estate owned

 

 
(3,607)

 

 
(2,166)

 

 
(3,597)

 

Acquisition

 

 
1,668

 

 

 —

 

 

 —

 

Write-down

 

 
(110)

 

 
(38)

 

 
(420)

 

Ending Balance

 

$
1,875

 

$
1,959

 

$
2,688

 

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:

 

 

 

 

 

 

 

 

 

 

 

 

 

2016

    

2015

    

2014

 

 

 

 

 

 

 

 

 

 

 

 

Beginning Balance —

 

$
(217)

 

$
(448)

 

$
(1,328)

 

Impairments during year

 

 
(110)

 

 
(38)

 

 
(420)

 

Recovery on impairments

 

 

 —

 

 

 —

 

 

 —

 

Reductions

 

 
91

 

 
269

 

 
1,300

 

Ending Balance —

 

$
(236)

 

$
(217)

 

$
(448)

 

 

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:

 

 

 

 

 

 

 

 

 

 

 

 

 

2016

    

2015

    

2014

 

Write-downs

 

$
110

 

$
38

 

$
420

 

Losses/(gains)on sales

 

 
(378)

 

 
(106)

 

 
(267)

 

Net loss/(gain)

 

$
(268)

 

$
(68)

 

$
153

 

Operating expenses

 

$
154

 

$
203

 

$
150

 

 

Foreclosed residential real estate properties included in Interest receivable and other assets on the Consolidated Balance Sheets totaled $1,443 and $915 at December 31, 2016 and December 31, 2015, respectively. Retail mortgage loans secured by residential real estate properties for which formal foreclosure proceedings are in process according to local requirements totaled $3,266 and $2,407 at December 31, 2016 and December 31, 2015, respectively.