4. OTHER ASSETS ACQUIRED THROUGH FORECLOSURE

The following table represents the changes in other assets acquired through foreclosure:



	Three Months Ended September 30, 2017
	Gross Balance			Valuation Allowance			Net Balance
	(in thousands)
Balance, beginning of period	$	35,037		$	(4,049	)	$	30,988
Transfers to other assets acquired through foreclosure, net	430			—			430
Proceeds from sale of other real estate owned and repossessed assets, net	(2,491		)	330			(2,161		)
Valuation adjustments, net	—			(343		)	(343		)
Gains (losses), net (1)	78			—			78
Balance, end of period	$	33,054		$	(4,062	)	$	28,992

	Three Months Ended September 30, 2016
Balance, beginning of period	$	56,467		$	(6,623	)	$	49,844
Transfers to other assets acquired through foreclosure, net	1,162			—			1,162
Proceeds from sale of other real estate owned and repossessed assets, net	(1,260		)	32			(1,228		)
Valuation adjustments, net	—			(184		)	(184		)
Gains (losses), net (1)	25			—			25
Balance, end of period	$	56,394		$	(6,775	)	$	49,619



	Nine Months Ended September 30, 2017
	Gross Balance			Valuation Allowance			Net Balance
	(in thousands)
Balance, beginning of period	$	54,138		$	(6,323	)	$	47,815
Transfers to other assets acquired through foreclosure, net	1,812			—			1,812
Proceeds from sale of other real estate owned and repossessed assets, net	(23,129		)	2,381			(20,748		)
Valuation adjustments, net	—			(120		)	(120		)
(Losses) gains, net (1)	233			—			233
Balance, end of period	$	33,054		$	(4,062	)	$	28,992

	Nine Months Ended September 30, 2016
Balance, beginning of period	$	52,984		$	(9,042	)	$	43,942
Transfers to other assets acquired through foreclosure, net	11,888			—			11,888
Proceeds from sale of other real estate owned and repossessed assets, net	(8,174		)	2,140			(6,034		)
Valuation adjustments, net	—			127			127
(Losses) gains, net (1)	(304		)	—			(304		)
Balance, end of period	$	56,394		$	(6,775	)	$	49,619


(1)	There were zero net gains related to initial transfers to other assets during the three months ended September 30, 2017 and 2016 and $0.1 million and zero net gains related to initial transfers to other assets during the nine months ended September 30, 2017 and 2016, respectively.

At September 30, 2017 and 2016, the majority of the Company’s repossessed assets consisted of properties located in Nevada. The Company held 20 properties at September 30, 2017, compared to 31 at December 31, 2016, and 33 at September 30, 2016.