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Other Real Estate Owned
12 Months Ended
Dec. 31, 2018
Real Estate [Abstract]  
Other Real Estate Owned
Other Real Estate Owned
Changes in the balance for OREO are as follows (in thousands):
 
2018
 
2017
Balance at the beginning of year, gross
$
326

 
$
250

Transfers in
68

 
326

Sales proceeds
(416
)
 
(441
)
Gain on disposition
22

 
191

Balance at the end of year, gross
$

 
$
326

Less: valuation allowance

 

Balance at the end of year, net
$

 
$
326



There were no residential real estate properties included in the ending OREO balances above at December 31, 2018 and 2017. The Bank did not have any consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings were in process as of December 31, 2018.
Net expenses applicable to OREO, other than the provision for losses, were $2 thousand and $5 thousand for the years ended December 31, 2018 and 2017, respectively.