Note 6 – Foreclosed Assets

A summary of the activity in the balance of foreclosed assets follows ($ in thousands):


	Six months ended June 30, 2016								Six months ended June 30, 2015
	Noncovered			Covered		Total			Noncovered			Covered			Total
Beginning balance, net	$	5,369			—	$	5,369		$	4,449		$	445		$	4,894
Additions/transfers from loans and covered		853			—		853			2,605			(445	)		2,160
Dispositions/sales		(2,348	)		—		(2,348	)		(1,420	)		—			(1,420	)
Valuation adjustments		(32	)		—		(32	)		(241	)		—			(241	)

Ending balance, net	$	3,842			—	$	3,842		$	5,393			—		$	5,393

Ending valuation allowance	$	(287	)		—	$	(287	)	$	(438	)		—		$	(438	)

Ending number of foreclosed assets		15			—		15			33			—			33

Proceeds from sale of foreclosed assets	$	2,497			—	$	2,497		$	1,033			—		$	1,033

Gain on sale of foreclosed assets	$	149			—	$	149		$	426			—		$	426

As of June 30, 2016, $1,563,000 of foreclosed residential real estate properties, all of which the Company has obtained physical possession of, are included in foreclosed assets. At June 30, 2016, the recorded investment of consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings are underway is $1,177,000.