NOTE 5 – FORECLOSED ASSETS

Foreclosed assets activity is as follows for the three and six months ended June 30, 2020 and 2019:


	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
	(dollars in thousands)
Beginning balance	$	4,469	$	10,151	$	5,099	$	9,559
Transfers from loans		308		353		327		1,761
Capitalized improvements		6		—		6		—
Proceeds from sales		(324)		(458)		(1,001)		(969)
Sales through loan origination		(67)		(91)		(67)		(360)
Net gain (loss) on sales		69		16		144		105
Direct write-downs		(11)		(264)		(58)		(389)
Ending balance	$	4,450	$	9,707	$	4,450	$	9,707

Gains (losses) on foreclosed assets includes the following for the three and six months ended June 30, 2020 and 2019:


	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
	(dollars in thousands)
Direct write-downs	$	(11)	$	(264)	$	(58)	$	(389)
Net gain (loss) on sales		69		16		144		105
Guarantee reimbursements		—		42		7		61
Gain on settlement		—		375		—		375
Gains (losses) on foreclosed assets	$	58	$	169	$	93	$	152

The carrying value of foreclosed one-to-four family residential real estate property as of June 30, 2020 and December 31, 2019, was $1,034,000 and $1,037,000, respectively. As of June 30, 2020, there were 9 one-to-four family residential real estate loans in the process of foreclosure totaling approximately $594,000. As of December 31, 2019, there were 10 residential real estate loans in the process of foreclosure totaling approximately $588,000.