OREO and Other Repossessed Assets

The following table presents the activity related to OREO and other repossessed assets for the years ended September 30, 2019 and 2018 (dollars in thousands):



	2019					2018
	Amount			Number		Amount			Number
Balance, beginning of year	$	1,913		12		$	3,301		16
Addition due to South Sound Acquisition	25			1		—			—
Other additions	293			2		324			2
Writedowns	(24		)	—		(248		)	—
Sales	(524		)	(3	)	(1,464		)	(6	)
Balance, end of year	$	1,683		12		$	1,913		12

At both September 30, 2019 and 2018, OREO and other repossessed assets consisted of 12 OREO properties in Washington, with balances ranging from $13,000 to $874,000. The Company recorded net gains on sales of OREO and other repossessed assets of $89,000, $229,000, and $54,000 for the years ended September 30, 2019, 2018 and 2017, respectively. Gains and losses on sales of OREO and other repossessed assets are recorded in the OREO and other repossessed assets, net category in non-interest expense in the accompanying consolidated statements of income.

At September 30, 2019, there were no foreclosed residential real estate properties held in OREO as a result of obtaining physical possession and the amount of one- to four-family properties in the process of foreclosure totaled $150,000. At September 30, 2018, there were no foreclosed residential real estate properties held in OREO as a result of obtaining physical possession and there were no one- to four-family properties in the process of foreclosure.