Note 6 – Foreclosed Assets

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


	Nine months ended September 30, 2016								Nine months ended September 30, 2015
	Noncovered			Covered		Total			Noncovered			Covered			Total
Beginning balance, net	$	5,369			—	$	5,369		$	4,449		$	445		$	4,894
Additions/transfers from loans		1,730		$	223		1,953			5,154			(445	)		4,709
Dispositions/sales		(3,157	)		—		(3,157	)		(3,971	)		—			(3,971	)
Valuation adjustments		(41	)		—		(41	)		(347	)		—			(347	)

Ending balance, net	$	3,901		$	223	$	4,124		$	5,285			—		$	5,285

Ending valuation allowance	$	(241	)		—	$	(241	)	$	(519	)		—		$	(519	)

Ending number of foreclosed assets		14			1		15			28			—			28

Proceeds from sale of foreclosed assets	$	3,375			—	$	3,375		$	4,753			—		$	4,753

Gain on sale of foreclosed assets	$	218			—	$	218		$	782			—		$	782

As of September 30, 2016, $1,504,000 of foreclosed residential real estate properties, all of which the Company has obtained physical possession of, are included in foreclosed assets. At September 30, 2016, the recorded investment of consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings are underway is $789,000.