Other Real Estate Owned and Repossessed Assets

Changes in other real estate owned and repossessed assets, included in interest receivable and other assets on the consolidated statements of financial position, were as follows:



(Dollars in thousands)	Other real estate owned			Repossessed assets
Balance at January 1, 2017	$	16,812		$	375
Other additions ⁽¹⁾	3,119			1,162
Net payments received	(39		)	—
Disposals	(3,728		)	(1,037		)
Write-downs	(269		)	—
Balance at March 31, 2017	$	15,895		$	500

Balance at January 1, 2016	$	9,716		$	219
Other additions ⁽¹⁾	938			729
Net payments received	(185		)	(11		)
Disposals	(1,371		)	(620		)
Write-downs	(167		)	—
Balance at March 31, 2016	$	8,931		$	317


(1)	Includes loans transferred to other real estate owned and other repossessed assets.

At March 31, 2017 the Corporation had $1.2 million of other real estate owned and repossessed assets as a result of obtaining physical possession in accordance with ASU No. 2014-04, Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans Upon Foreclosure. In addition, there were $5.1 million of consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings are in process as of March 31, 2017.

Income and expenses related to other real estate owned and repossessed assets, recorded as a component of "Other expense" in the Consolidated Statements of Income, were as follows:



(Dollars in thousands)	Other real estate owned			Repossessed assets
For the three months ended March 31, 2017
Net gain (loss) on sale	$	1,047		$	(78	)
Write-downs	(269		)	—
Net operating expenses	(508		)	(3		)
Total	$	270		$	(81	)
For the three months ended March 31, 2016
Net gain (loss) on sale	$	722		$	(8	)
Write-downs	(167		)	—
Net operating expenses	(153		)	(5		)
Total	$	402		$	(13	)