OTHER REAL ESTATE OWNED

12 Months Ended

Dec. 31, 2017

Other Real Estate [Abstract]

OTHER REAL ESTATE OWNED

5. OTHER REAL ESTATE OWNED

At December 31, 2017 and 2016, the Company had other real estate owned, net of valuation allowances, totaling $2.1 million and $534 thousand, respectively.

The following table shows the activity in other real estate owned, excluding the valuation allowance, for the years ended December 31,

(In thousands)	2017			2016
Balance, beginning of year	$	534		$	3,233
OREO properties added		2,090			534
Sales during year		(534	)		(3,233	)
Balance, end of year	$	2,090		$	534

The following table shows the activity in the valuation allowance for the years ended December 31,

(In thousands)	2017		2016			2015
Balance, beginning of year	$	—	$	2,670		$	2,420
Additions charged to expense		—		—			250
Direct writedowns		—		(2,670	)		—
Balance, end of year	$	—	$	—		$	2,670

The following table shows expenses related to other real estate owned for the years ended December 31,

(In thousands)	2017		2016			2015
Net gain on sales	$	—	$	(5	)	$	—
Provision for unrealized losses		—		—			250
Operating expenses, net of rental income		117		59			51
Total	$	117	$	54		$	301