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REAL ESTATE OWNED, NET
 6 Months Ended
Jun. 30, 2019
Real Estate [Abstract]  
REAL ESTATE OWNED, NET REAL ESTATE OWNED, NET

The following table presents the changes in REO for the three and six months ended June 30, 2019 and 2018 (in thousands):
 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
2019
 
2018
 
2019
 
2018
Balance, beginning of the period
$
2,611

 
$
328

 
$
2,611

 
$
360

Additions from loan foreclosures
61

 
393

 
61

 
521

Proceeds from dispositions of REO
(150
)
 
(314
)
 
(150
)
 
(314
)
Gain on sale of REO
(9
)
 
66

 
(9
)
 
66

Valuation adjustments in the period
—

 
—

 
—

 
(160
)
Balance, end of the period
$
2,513

 
$
473

 
$
2,513

 
$
473



REO properties are recorded at the estimated fair value of the property, less expected selling costs, establishing a new cost basis.  Subsequently, REO properties are carried at the lower of the new cost basis or updated fair market values, based on updated appraisals of the underlying properties, as received.  Valuation allowances on the carrying value of REO may be recognized based on updated appraisals or on management’s authorization to reduce the selling price of a property. The Company had $61,000 of foreclosed one- to four-family residential real estate properties held as REO at June 30, 2019 and none at December 31, 2018. The recorded investment in one- to four-family residential loans in the process of foreclosure was $1.8 million at June 30, 2019 compared with $1.2 million at December 31, 2018.