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Other Real Estate (Notes)
 12 Months Ended
Dec. 31, 2019
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,
 
 
2019
 
2018
Beginning balance
 
$
1,226

 
$
2,351

New foreclosed properties
 
186

 
1,482

Valuation adjustments
 
(38
)
 
(27
)
Sales
 
(1,188
)
 
(2,580
)
Ending balance
 
$
186

 
$
1,226


 
December 31, 2019
 
December 31, 2018
 
Balance
 
Valuation Allowance
 
Net OREO Balance
 
Balance
 
Valuation Allowance
 
Net OREO Balance
One–to–four family residential
$
186

 
$
—

 
$
186

 
$
875

 
$
—

 
$
875

Multi-family mortgage
—

 
—

 
—

 
276

 
—

 
276

Nonresidential real estate
—

 
—

 
—

 
74

 
—

 
74

Land
—

 
—

 
—

 
24

 
(23
)
 
1

 
$
186

 
$
—

 
$
186

 
$
1,249

 
$
(23
)
 
$
1,226


Activity in the valuation allowance is as follows:
 
 
At and For the Years Ended December 31,
 
 
2019
 
2018
Beginning of year
 
$
23

 
$
305

Additions charged to expense
 
38

 
27

Reductions from sales of other real estate owned
 
(61
)
 
(309
)
End of year
 
$
—

 
$
23


At December 31, 2019 and 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, 2019 and 2018, the recorded investment of consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings were in process was $237,000 and $349,000, respectively.