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Foreclosed Assets | 12 Months Ended
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Dec. 31, 2017
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Foreclosed Assets | 8. Foreclosed Assets Foreclosed real estate is reported net of a valuation allowance and included in accrued interest receivable and other assets in the accompanying consolidated balance sheets. Activity for the years ended December 31, 2017, 2016, and 2015 is as follows:
|  | 2017 |  |  | 2016 |  |  | 2015 |
Balance, beginning of year |  | $ | 1,015 |  |  | $ | 654 |  |  | $ | 806 |
Acquired from Lake National Bank |  |  | 0 |  |  |  | 665 |  |  |  | 0 |
Additions |  |  | 630 |  |  |  | 120 |  |  |  | 806 |
Sales (at carrying value) |  |  | (935 | ) |  |  | (424 | ) |  |  | (958 | )
Balance, end of year |  | $ | 710 |  |  | $ | 1,015 |  |  | $ | 654 |
Expenses related to foreclosed real estate include:
|  | 2017 |  |  | 2016 |  |  | 2015 |
Net (gain) loss on sale |  | $ | (208 | ) |  | $ | (134 | ) |  | $ | 3 |
Operating expenses, net of rental income |  |  | 366 |  |  |  | 223 |  |  |  | 169 |
|  | $ | 158 |  |  | $ | 89 |  |  | $ | 172 |

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