| Other Real Estate Owned, Net |
Note 7 - Other Real Estate Owned, net The following table presents the components of OREO at September 30, 2020 and December 31, 2019: | | | | | | | | | | | | | | (in thousands) | | September 30,
2020 | | December 31,
2019 | Commercial real estate | | $ | 2,256 | | $ | 2,256 | Acquisition and development | | | 1,531 | | | 1,780 | Residential mortgage | | | — | | | 91 | Total OREO, net | | $ | 3,787 | | $ | 4,127 |
The following table presents the activity in the OREO valuation allowance for the nine and three month periods ended September 30, 2020 and 2019: | | | | | | | | | | | | | | | | | | | | | | | | | | | | Nine Months Ended | | Three Months Ended | | | September 30, | | September 30, | (in thousands) | | 2020 | | 2019 | | 2020 | | 2019 | Balance beginning of period | | $ | 1,790 | | $ | 1,988 | | $ | 1,734 | | $ | 2,013 | Fair value write-down | | | 102 | | | 1,140 | | | 63 | | | 312 | Sales of OREO | | | (261) | | | (1,159) | | | (166) | | | (356) | Balance at end of period | | $ | 1,631 | | $ | 1,969 | | $ | 1,631 | | $ | 1,969 |
The following table presents the components of OREO expenses, net, for the nine and three month periods ended September 30, 2020 and 2019: | | | | | | | | | | | | | | | | | | | | | | | | | | | | Nine Months Ended | | Three Months Ended | | | September 30, | | September 30, | (in thousands) | | 2020 | | 2019 | | 2020 | | 2019 | Gains on real estate, net | | $ | (93) | | $ | (62) | | $ | (72) | | $ | (51) | Fair value write-down, net | | | 102 | | | 1,140 | | | 63 | | | 312 | Expenses, net | | | 117 | | | 260 | | | 52 | | | 94 | Rental and other income | | | (123) | | | (72) | | | (37) | | | (18) | Total OREO expense, net | | $ | 3 | | $ | 1,266 | | $ | 6 | | $ | 337 |
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