OTHER REAL ESTATE OWNED AND OTHER REPOSSESSED ASSETS

12 Months Ended

Dec. 31, 2017

7.	OTHER REAL ESTATE OWNED AND OTHER REPOSSESSED ASSETS

Real estate owned and other repossessed assets at December 31, 2017 and 2016 was as follows:

	December 31,			December 31,
	2017			2016
	(Dollars in thousands)
Real estate owned and other repossessed assets	$	1,656		$	2,789
Valuation allowance		(403	)		(1,012	)
End of period	$	1,253		$	1,777

Activity in the valuation allowance was as follows:

	2017			2016			2015
	(Dollars in thousands)
Beginning of year	$	1,012		$	1,229		$	1,423
Additions (recoveries) charged to expense		37			(16	)		287
Sales of real estate owned with a valuation allowance		(646	)		(201	)		(481	)
End of year	$	403		$	1,012		$	1,229

Expenses related to foreclosed and repossessed assets include:

	2017		2016			2015
	(Dollars in thousands)
Net loss on sales	$	152	$	109		$	158
Provision for (recovery of) unrealized losses		37		(16	)		287
Operating expenses, net of rental income		135		191			338
Total Expenses	$	324	$	284		$	783