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Loans Receivable and Allowance for Loan and Lease Losses Loans Receivable and ALLL (Tables)
 6 Months Ended
Sep. 30, 2019
Loans and Leases Receivable Disclosure [Abstract]  
Schedule of Accounts, Notes, Loans and Financing Receivable
The following is a summary of loans receivable at September 30, 2019 and March 31, 2019:
 
 
September 30, 2019
 
March 31, 2019
$ in thousands
 
Amount
 
Percent
 
Amount
 
Percent
Gross loans receivable:
 
 
 
 
 
 
 
 
One-to-four family
 
$
116,291

 
27.1
%
 
$
108,363

 
25.5
%
Multifamily
 
82,246

 
19.1
%
 
86,177

 
20.2
%
Commercial real estate
 
138,512

 
32.2
%
 
130,812

 
30.7
%
Business (1)
 
88,982

 
20.7
%
 
96,430

 
22.7
%
Consumer (2)
 
3,655

 
0.9
%
 
4,023

 
0.9
%
Total loans receivable
 
$
429,686

 
100.0
%
 
$
425,805

 
100.0
%
 
 
 
 
 
 
 
 
 
Unamortized premiums, deferred costs and fees, net
 
3,598

 
 
 
3,023

 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses
 
(4,625
)
 
 
 
(4,646
)
 
 
Total loans receivable, net
 
$
428,659

 
 
 
$
424,182

 
 
(1) Includes business overdrafts
(2) Includes personal loans and consumer overdrafts
Allowance for Loan Losses
The following is an analysis of the allowance for loan losses based upon the method of evaluating loan impairment for the three and six month periods ended September 30, 2019 and 2018, and the fiscal year ended March 31, 2019.
Three months ended September 30, 2019
 
 
 
 
 
 
 
 
 
 
 
 
$ in thousands
 
One-to-four
family
 
Multifamily
 
Commercial Real Estate
 
Business
 
Consumer
 
Unallocated
 
Total
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning Balance
 
1,232

 
875

 
668

 
1,400

 
240

 
255

 
$
4,670

Charge-offs
 
—

 
—

 
—

 
(56
)
 
(6
)
 
—

 
(62
)
Recoveries
 
8

 
—

 
—

 
2

 
—

 
—

 
10

Provision for (recovery of) Loan Losses
 
49

 
9

 
27

 
145

 
14

 
(237
)
 
7

Ending Balance
 
$
1,289

 
$
884

 
$
695

 
$
1,491

 
$
248

 
$
18

 
$
4,625


Six months ended September 30, 2019
 
 
 
 
 
 
 
 
 
 
 
 
$ in thousands
 
One-to-four
family
 
Multifamily
 
Commercial Real Estate
 
Business
 
Consumer
 
Unallocated
 
Total
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning Balance
 
$
1,274

 
$
885

 
$
766

 
$
1,330

 
$
154

 
$
237

 
$
4,646

Charge-offs
 
—

 
—

 
—

 
(56
)
 
(73
)
 
—

 
(129
)
Recoveries
 
8

 
—

 
—

 
90

 
2

 
—

 
100

Provision for (recovery of) Loan Losses
 
7

 
(1
)
 
(71
)
 
127

 
165

 
(219
)
 
8

Ending Balance
 
$
1,289

 
$
884

 
$
695

 
$
1,491

 
$
248

 
$
18

 
$
4,625

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for Loan Losses Ending Balance: collectively evaluated for impairment
 
$
1,120

 
$
884

 
$
695

 
$
1,478

 
$
248

 
$
18

 
$
4,443

Allowance for Loan Losses Ending Balance: individually evaluated for impairment
 
169

 
—

 
—

 
13

 
—

 
—

 
182

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loan Receivables Ending Balance:
 
$
118,502

 
$
82,823

 
$
137,451

 
$
90,816

 
$
3,692

 
$
—

 
$
433,284

Ending Balance: collectively evaluated for impairment
 
113,693

 
80,390

 
137,451

 
88,509

 
3,692

 
—

 
423,735

Ending Balance: individually evaluated for impairment
 
4,809

 
2,433

 
—

 
2,307

 
—

 
—

 
9,549



At March 31, 2019
 
 
 
 
 
 
 
 
 
 
 
 
$ in thousands
 
One-to-four family
 
Multifamily
 
Commercial Real Estate
 
Business
 
Consumer
 
Unallocated
 
Total
Allowance for Loan Losses Ending Balance: collectively evaluated for impairment
 
$
1,103

 
$
885

 
$
766

 
$
1,312

 
$
154

 
$
237

 
$
4,457

Allowance for Loan Losses Ending Balance: individually evaluated for impairment
 
171

 
—

 
—

 
18

 
—

 
—

 
189

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loan Receivables Ending Balance:
 
$
109,926

 
$
86,886

 
$
131,292

 
$
96,661

 
$
4,063

 
$
—

 
$
428,828

Ending Balance: collectively evaluated for impairment
 
104,509

 
83,672

 
130,816

 
93,399

 
4,063

 
—

 
416,459

Ending Balance: individually evaluated for impairment
 
5,417

 
3,214

 
476

 
3,262

 
—

 
—

 
12,369




Three months ended September 30, 2018
 
 
 
 
 
 
 
 
 
 
$ in thousands
 
One-to-four family
 
Multifamily
 
Commercial Real Estate
 
Business
 
Consumer
 
Unallocated
 
Total
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning Balance
 
$
1,853

 
$
1,387

 
$
540

 
$
1,169

 
$
172

 
$
66

 
$
5,187

Charge-offs
 
(49
)
 
(100
)
 
—

 
(329
)
 
(2
)
 
—

 
(480
)
Recoveries
 
—

 
—

 
—

 
4

 
32

 
—

 
36

Provision for (recovery of) Loan Losses
 
(323
)
 
(348
)
 
162

 
686

 
(62
)
 
(66
)
 
49

Ending Balance
 
$
1,481

 
$
939

 
$
702

 
$
1,530

 
$
140

 
$
—

 
$
4,792


Six months ended September 30, 2018
 
 
 
 
 
 
 
 
 
 
$ in thousands
 
One-to-four family
 
Multifamily
 
Commercial Real Estate
 
Business
 
Consumer
 
Unallocated
 
Total
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning Balance
 
$
1,210

 
$
1,819

 
$
1,052

 
$
1,003

 
$
18

 
$
24

 
$
5,126

Charge-offs
 
(145
)
 
(100
)
 
—

 
(340
)
 
(5
)
 
—

 
(590
)
Recoveries
 
—

 
158

 
—

 
9

 
35

 
—

 
202

Provision for (recovery of) Loan Losses
 
416

 
(938
)
 
(350
)
 
858

 
92

 
(24
)
 
54

Ending Balance
 
$
1,481

 
$
939

 
$
702

 
$
1,530

 
$
140

 
$
—

 
$
4,792
Schedule Nonaccrual Loans
The following is a summary of nonaccrual loans at September 30, 2019 and March 31, 2019.
$ in thousands
September 30, 2019
 
March 31, 2019
Gross loans receivable:
 
 
 
One-to-four family
$
3,753

 
$
4,488

Multifamily
2,433

 
3,214

Commercial real estate
—

 
476

Business
1,542

 
2,051

Consumer
—

 
65

Total nonaccrual loans
$
7,728

 
$
10,294
Loans Receivable, Credit Quality Indicators
At September 30, 2019, and based on the most recent analysis performed in the current quarter, the risk category by class of loans is as follows:
$ in thousands
 
Multifamily
 
Commercial
Real Estate
 
Business
Credit Risk Profile by Internally Assigned Grade:
 
 
 
 
 
 
Pass
 
$
80,390

 
$
136,826

 
$
84,496

Special Mention
 
—

 
625

 
3,981

Substandard
 
2,433

 
—

 
2,339

Doubtful
 
—

 
—

 
—

Loss
 
—

 
—

 
—

Total
 
$
82,823

 
$
137,451

 
$
90,816

 
 
 
 
 
 
 
 
 
 
 
One-to-four family
 
Consumer
Credit Risk Profile Based on Payment Activity:
 
 
 
 
 
 
Performing
 
 
 
$
114,749

 
$
3,657

Non-Performing
 
 
 
3,753

 
35

Total
 
 
 
$
118,502

 
$
3,692


At March 31, 2019, and based on the most recent analysis performed, the risk category by class of loans is as follows:
$ in thousands
 
Multifamily
 
Commercial Real Estate
 
Business
Credit Risk Profile by Internally Assigned Grade:
 
 
 
 
 
 
Pass
 
$
83,672

 
$
128,319

 
$
90,336

Special Mention
 
—

 
2,497

 
2,425

Substandard
 
3,214

 
476

 
3,900

Doubtful
 
—

 
—

 
—

Loss
 
—

 
—

 
—

Total
 
$
86,886

 
$
131,292

 
$
96,661

 
 
 
 
 
 
 
 
 
 
 
One-to-four family
 
Consumer
Credit Risk Profile Based on Payment Activity:
 
 
 
 
 
 
Performing
 
 
 
$
106,531

 
$
4,063

Non-Performing
 
 
 
3,395

 
—

Total
 
 
 
$
109,926

 
$
4,063
Past Due Financing Receivables
The following table presents an aging analysis of the recorded investment of past due loans receivables at September 30, 2019 and March 31, 2019.
September 30, 2019
 
 
 
 
 
 
 
 
 
 
 
 
$ in thousands
 
30-59 Days
Past Due
 
60-89 Days
Past Due
 
90 or More Days Past Due
 
Total Past
Due
 
Current
 
Total Loans
Receivables
One-to-four family
 
$
—

 
$
623

 
$
3,021

 
$
3,644

 
$
114,858

 
$
118,502

Multifamily
 
—

 
—

 
2,053

 
2,053

 
80,770

 
82,823

Commercial real estate
 
—

 
—

 
—

 
—

 
137,451

 
137,451

Business
 
14

 
440

 
667

 
1,121

 
89,695

 
90,816

Consumer
 
122

 
—

 
—

 
122

 
3,570

 
3,692

Total
 
$
136

 
$
1,063

 
$
5,741

 
$
6,940

 
$
426,344

 
$
433,284



March 31, 2019
 
 
 
 
 
 
 
 
 
 
 
 
$ in thousands
 
30-59 Days
Past Due
 
60-89 Days
Past Due
 
90 or More Days Past Due
 
Total Past
Due
 
Current
 
Total Loans Receivables
One-to-four family
 
$
1,827

 
$
—

 
$
3,395

 
$
5,222

 
$
104,704

 
$
109,926

Multifamily
 
2,580

 
—

 
2,118

 
4,698

 
82,188

 
86,886

Commercial real estate
 
121

 
—

 
—

 
121

 
131,171

 
131,292

Business
 
780

 
—

 
599

 
1,379

 
95,282

 
96,661

Consumer
 
87

 
53

 
65

 
205

 
3,858

 
4,063

Total
 
$
5,395

 
$
53

 
$
6,177

 
$
11,625

 
$
417,203

 
$
428,828
Impaired Loans
The following table presents information on impaired loans with the associated allowance amount, if applicable, at September 30, 2019 and March 31, 2019.
 
 
At September 30, 2019
 
At March 31, 2019
$ in thousands
 
Recorded
Investment
 
Unpaid
Principal
Balance
 
Associated
Allowance
 
Recorded
Investment
 
Unpaid
Principal
Balance
 
Associated
Allowance
With no specific allowance recorded:
 
 
 
 
 
 
 
 
 
 
 
 
One-to-four family
 
$
3,994

 
$
4,999

 
$
—

 
$
4,488

 
$
5,643

 
$
—

Multifamily
 
2,433

 
2,433

 
—

 
3,214

 
3,214

 
—

Commercial real estate
 
—

 
—

 
—

 
476

 
476

 
—

Business
 
1,418

 
1,476

 
—

 
1,974

 
2,017

 
—

With an allowance recorded:
 
 
 
 
 
 
 
 
 
 
 
 
One-to-four family
 
815

 
815

 
169

 
929

 
929

 
171

Business
 
889

 
889

 
13

 
1,288

 
1,288

 
18

Total
 
$
9,549

 
$
10,612

 
$
182

 
$
12,369

 
$
13,567

 
$
189


The following tables presents information on average balances of impaired loans and the interest income recognized on a cash basis for the three and six month periods ended September 30, 2019 and 2018.

 
For the Three Months Ended September 30,
 
For the Six Months Ended September 30,
 
 
2019
 
2018
 
2019
 
2018
$ in thousands
 
Average Balance
 
Interest Income Recognized
 
Average Balance
 
Interest Income Recognized
 
Average Balance
 
Interest Income Recognized
 
Average Balance
 
Interest Income Recognized
With no specific allowance recorded:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
One-to-four family
 
$
4,185

 
$
14

 
$
4,813

 
$
26

 
$
4,241

 
$
30

 
$
5,074

 
$
31

Multifamily
 
2,789

 
14

 
2,382

 
9

 
2,824

 
41

 
1,646

 
17

Commercial real estate
 
—

 
—

 
492

 
8

 
238

 
—

 
1,014

 
8

Business
 
1,699

 
16

 
652

 
6

 
1,696

 
41

 
623

 
6

With an allowance recorded:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
One-to-four family
 
869

 
—

 
887

 
1

 
872

 
—

 
1,003

 
2

Multifamily
 
—

 
—

 
—

 
—

 
—

 
—

 
371

 
—

Business
 
1,067

 
—

 
3,050

 
4

 
1,088

 
—

 
2,867

 
4

Total
 
$
10,609

 
$
44

 
$
12,276

 
$
54

 
$
10,959

 
$
112

 
$
12,598

 
$
68
Troubled Debt Restructuring
In certain circumstances, the Bank will modify a loan as part of a TDR under GAAP. Situations around these modifications may include extension of maturity date, reduction in the stated interest rate, rescheduling of future cash flows, reduction in the face amount of the debt or reduction of past accrued interest. Loans modified in TDRs are placed on nonaccrual status until the Company determines that future collection of principal and interest is reasonably assured, which generally requires that the borrower demonstrate performance according to the restructured terms for a period of at least six months. There were no loan modifications made during the three and six month periods ended September 30, 2019. There was one loan modification made during the three and six month periods ended September 30, 2018. The modification set a schedule of principal repayments with an interest rate concession and maturity date extension. The following table presents an analysis of the loan modification that was classified as a TDR during the three and six month periods ended September 30, 2018.
 
 
Modifications to loans during the three month period ended
 
Modifications to loans during the six month period ended
 
 
September 30, 2018
 
September 30, 2018
$ in thousands
 
Number of loans
 
Pre-modification outstanding recorded investment
 
Post-Modification Recorded investment
 
Pre-Modification rate
 
Post-Modification rate
 
Number of loans
 
Pre-modification outstanding recorded investment
 
Post-Modification Recorded investment
 
Pre-Modification rate
 
Post-Modification rate
Business
 
1

 
$
1,762

 
$
1,712

 
6.75
%
 
6.00
%
 
1

 
$
1,762

 
$
1,712

 
6.75
%
 
6.00
%