Note 6 – Foreclosed Assets

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


	Nine months ended September 30, 2017									Nine months ended September 30, 2016
	Noncovered			Covered			Total			Noncovered			Covered		Total
Beginning balance, net	$	3,763		$	223		$	3,986		$	5,369			—	$	5,369
Additions/transfers from loans		726			—			726			1,730		$	223		1,953
Dispositions/sales		(1,256	)		(223	)		(1,479	)		(3,157	)		—		(3,157	)
Valuation adjustments		(162	)		—			(162	)		(41	)		—		(41	)

Ending balance, net	$	3,701			—		$	3,071		$	3,901		$	223	$	4,124

Ending valuation allowance	$	(248	)		—		$	(248	)	$	(241	)		—	$	(241	)

Ending number of foreclosed assets		11			—			11			14			1		15

Proceeds from sale of foreclosed assets	$	1,571		$	216		$	1,787		$	3,375			—	$	3,375

Gain (loss) on sale of foreclosed assets	$	315			(7	)	$	308		$	218			—	$	218

As of September 30, 2017, $1,386,000 of foreclosed residential real estate properties, all of which the Company has obtained physical possession of, are included in foreclosed assets. At September 30, 2017, the recorded investment of consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings are underway is $340,000.