Note 6 – Foreclosed Assets

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


	Three months ended March 31, 2018			Three months ended March 31, 2017
	Total			Noncovered			Covered			Total
Beginning balance, net	$	3,226		$	3,763		$	223		$	3,986
Additions/transfers from loans		—			85			—			85
Dispositions/sales		(1,572	)		(385	)		(223	)		(608	)
Valuation adjustments		(90	)		66			—			66

Ending balance, net	$	1,564		$	3,529			—		$	3,529

Ending valuation allowance	$	(152	)	$	(300	)		—		$	(300	)
Ending number of foreclosed assets		10			12			—			12
Proceeds from sale of foreclosed assets	$	1,943		$	510		$	216		$	726
Gain (loss) on sale of foreclosed assets	$	371		$	125		$	(7	)	$	118

As of March 31, 2018, $836,000 of foreclosed residential real estate properties, all of which the Company has obtained physical possession of, are included in foreclosed assets. At March 31, 2018, the recorded investment of consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings are underway is $407,000.