OTHER REAL ESTATE OWNED AND OTHER REPOSSESSED ASSETS

Real estate owned and other repossessed assets at September 30, 2018 and December 31, 2017 were as follows:

	September 30, 2018			December 31, 2017
	(Dollars in thousands)
Real estate owned and other repossessed assets	$	1,204		$	1,656
Valuation allowance		(297	)		(403	)
End of period	$	907		$	1,253

Activity in the valuation allowance was as follows:

	Three Months Ended					Nine Months Ended
	September 30, 2018		September 30, 2017			September 30, 2018			September 30, 2017
	(Dollars in thousands)
Beginning of period	$	248	$	389		$	403		$	1,012
Additions (recoveries) charged to expense		49		53			82			15
Sales of real estate owned with a valuation allowance		—		(19	)		(188	)		(604	)
End of period	$	297	$	423		$	297		$	423

Expenses related to foreclosed and repossessed assets include:

	Three Months Ended					Six Months Ended
	September 30, 2018			September 30, 2017		September 30, 2018		September 30, 2017
	(Dollars in thousands)
Net loss on sales	$	(4	)	$	20	$	154	$	128
Provision for (recovery of) unrealized losses		49			53		82		15
Operating expenses, net of rental income		25			33		95		118
Total expenses	$	70		$	106	$	331	$	261