NOTE 5 – FORECLOSED ASSETS

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


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
	(dollars in thousands)
Beginning balance	$	4,450	$	9,707	$	5,099	$	9,559
Transfers from loans		172		27		499		1,788
Capitalized improvements		—		41		6		41
Proceeds from sales		(792)		(3,173)		(1,793)		(4,142)
Sales through loan origination		—		—		(67)		(360)
Net gain (loss) on sales		125		135		269		240
Direct write-downs		(98)		(163)		(156)		(552)
Ending balance	$	3,857	$	6,574	$	3,857	$	6,574

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


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
	(dollars in thousands)
Direct write-downs	$	(98)	$	(163)	$	(156)	$	(552)
Net gain (loss) on sales		125		135		269		240
Guarantee reimbursements		—		8		7		69
Gain on settlement		—		—		—		375
Gains (losses) on foreclosed assets	$	27	$	(20)	$	120	$	132

The carrying value of foreclosed one-to-four family residential real estate property as of September 30, 2020 and December 31, 2019, was $352,000 and $1,037,000, respectively. As of September 30, 2020, there were 7 one-to-four family residential real estate loans in the process of foreclosure totaling approximately $571,000. As of December 31, 2019, there were 10 residential real estate loans in the process of foreclosure totaling approximately $588,000.