Note 6 – Foreclosed Assets

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


	Year ended December 31,
	2018			2017
Beginning balance, net	$	3,226		$	3,986
Additions/transfers from loans		1,262			1,563
Dispositions/sales		(2,119	)		(2,161	)
Valuation adjustments		(89	)		(162	)

Ending balance, net	$	2,280		$	3,226

Ending valuation allowance	$	(116	)	$	(200	)
Ending number of foreclosed assets		11			16
Proceeds from sale of foreclosed assets	$	2,527		$	2,872
Gain on sale of foreclosed assets	$	408		$	711

At December 31, 2018, the balance of real estate owned includes $1,218,000 of foreclosed residential real estate properties recorded as a result of obtaining physical possession of the property. At December 31, 2018, the recorded investment of consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings are underway is $453,000.