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Other Real Estate (Notes)
 12 Months Ended
Dec. 31, 2018
Other Real Estate Owned [Abstract]  
Other Real Estate Owned
Real estate that is acquired through foreclosure or a deed in lieu of foreclosure is classified as OREO until it is sold. When real estate is acquired through foreclosure or by deed in lieu of foreclosure, it is recorded at its fair value, less the estimated costs of disposal. If the fair value of the property is less than the loan balance, the difference is charged against the allowance for loan losses.
The following represents the roll forward of OREO and the composition of OREO properties.
 
 
At and For the Years Ended December 31,
 
 
2018
 
2017
Beginning balance
 
$
2,351

 
$
3,895

New foreclosed properties
 
1,482

 
2,766

Valuation adjustments
 
(27
)
 
(333
)
Sales
 
(2,580
)
 
(3,977
)
Ending balance
 
$
1,226

 
$
2,351


 
December 31, 2018
 
December 31, 2017
 
Balance
 
Valuation Allowance
 
Net OREO Balance
 
Balance
 
Valuation Allowance
 
Net OREO Balance
One–to–four family residential
$
875

 
$
—

 
$
875

 
$
836

 
$
(9
)
 
$
827

Multi-family mortgage
276

 
—

 
276

 
—

 
—

 
—

Nonresidential real estate
74

 
—

 
74

 
1,772

 
(252
)
 
1,520

Land
24

 
(23
)
 
1

 
48

 
(44
)
 
4

 
$
1,249

 
$
(23
)
 
$
1,226

 
$
2,656

 
$
(305
)
 
$
2,351


Activity in the valuation allowance is as follows:
 
 
At and For the Years Ended December 31,
 
 
2018
 
2017
Beginning of year
 
$
305

 
$
449

Additions charged to expense
 
27

 
333

Reductions from sales of other real estate owned
 
(309
)
 
(477
)
End of year
 
$
23

 
$
305


At December 31, 2018, the balance of OREO includes no foreclosed residential real estate properties recorded as a result of obtaining physical possession of the property without title. At December 31, 2017 the balance of OREO included $352,000 foreclosed residential real estate properties recorded as a result of obtaining physical possession of the property without title. At December 31, 2018 and 2017, the recorded investment of consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings are in process was $349,000 and $926,000, respectively.