Loans Receivable (Tables)

12 Months Ended

Dec. 31, 2018

Schedule of Accounts, Notes, Loans and Financing Receivable

Loans receivable at December 31, 2018, and 2017 are summarized as follows:



	December 31,
	2018		2017
	(In thousands)
One-to-four family residential:
Permanent owner occupied	$	194,141	$	148,304
Permanent non-owner occupied	147,825		130,351
	341,966		278,655
Multifamily:
Permanent	169,355		184,902
	169,355		184,902
Commercial real estate:
Permanent	373,819		361,842
	373,819		361,842
Construction/land: ⁽¹⁾
One-to-four family residential	86,604		87,404
Multifamily	83,642		108,439
Commercial	18,300		5,325
Land	6,740		36,405
	195,286		237,573

Business	30,486		23,087
Consumer	12,970		9,133
Total loans	1,123,882		1,095,192
Less:
Loans in process (“LIP”)	86,453		92,498
Deferred loan fees, net	1,178		1,150
Allowance for loan and lease losses ("ALLL")	13,347		12,882
Loans receivable, net	$	1,022,904	$	988,662

____________

⁽¹⁾

Included in the construction/land category are “rollover” loans, which are loans that will convert upon completion of the construction period to permanent loans. At that time, the loans will be classified according to the underlying collateral. In addition, raw land or buildable lots, where the Company does not intend to finance the construction are included in the construction/land category. At December 31, 2018, we classified $66.6 million of multifamily loans, $6.2 million of commercial land loans, $1.7 million of one-to-four family residential and $18.3 million of commercial real estate loans as construction/land loans to facilitate the review of the composition of our loan portfolio. At December 31, 2017, $71.4 million of multifamily loans, $35.9 million of commercial land loans, $2.6 million one-to-four family residential and $5.3 million of commercial real estate loans were reclassified to the construction/land category.

Accrued interest receivable consisted of the following at December 31, 2018 and 2017:



	December 31,
	2018		2017
	(In thousands)
Loans receivable	$	3,366	$	3,492
Investments	699		590
Interest-earning deposits	3		2
	$	4,068	$	4,084

Financing Receivables, Summary of Loans By Maturity and Interest Rate Type

The Company originates both adjustable and fixed interest rate loans. The composition of loans receivable at December 31, 2018, and 2017, was as follows:



December 31, 2018
Fixed Rate			Adjustable Rate
Term to Maturity	Principal Balance		Term to Rate Adjustment	Principal Balance
(In thousands)
Due within one year	$	44,645	Due within one year	$	305,929
After one year through three years	54,183		After one year through three years	98,652
After three years through five years	77,883		After three years through five years	106,006
After five years through ten years	132,074		After five years through ten years	112,449
Thereafter	192,061		Thereafter	—
	$	500,846		$	623,036



December 31, 2017
Fixed Rate			Adjustable Rate
Term to Maturity	Principal Balance		Term to Rate Adjustment	Principal Balance
(In thousands)
Due within one year	$	37,472	Due within one year	$	292,398
After one year through three years	102,630		After one year through three years	51,520
After three years through five years	80,811		After three years through five years	127,973
After five years through ten years	132,086		After five years through ten years	95,091
Thereafter	175,211		Thereafter	—
	$	528,210		$	566,982

Schedule of Allowance for Loan and Lease Losses, Roll Forward

The following tables summarize changes in the ALLL and loan portfolio by type of loan and reserve method for the periods indicated.



	At or For the Year Ended December 31, 2018
	One-to-Four Family Residential			Multifamily			Commercial Real Estate		Construction/ Land			Business		Consumer			Total
ALLL:	(In thousands)
Beginning balance	$	2,837		$	1,820		$	4,418	$	2,816		$	694	$	297		$	12,882
Charge-offs	—			—			—		—			—		—			—
Recoveries	4,279			—			14		171			—		1			4,465
(Recapture) provision	(3,729		)	(140		)	345		(656		)	242		(62		)	(4,000		)
Ending balance	$	3,387		$	1,680		$	4,777	$	2,331		$	936	$	236		$	13,347

General reserve	$	3,328		$	1,680		$	4,774	$	2,331		$	936	$	236		$	13,285
Specific reserve	59			—			3		—			—		—			62

Loans: ⁽¹⁾
Total Loans	$	341,966		$	169,355		$	373,798	$	108,854		$	30,486	$	12,970		$	1,037,429
General reserve ⁽²⁾	334,644			169,355			371,058		108,854			30,486		12,883			1,027,280
Specific reserve ⁽³⁾	7,322			—			2,740		—			—		87			10,149

____________

⁽¹⁾ Net of LIP.

⁽²⁾ Loans collectively evaluated for impairment.

⁽³⁾ Loans individually evaluated for impairment.



	At or For the Year Ended December 31, 2017
	One-to-Four Family Residential			Multifamily		Commercial Real Estate		Construction/ Land		Business		Consumer			Total
ALLL:	(In thousands)
Beginning balance	$	2,551		$	1,199	$	3,893	$	2,792	$	237	$	279		$	10,951
Charge-offs	—			—		—		—		—		—			—
Recoveries	2,195			—		78		—		—		58			2,331
(Recapture) provision	(1,909		)	621		447		24		457		(40		)	(400		)
Ending balance	$	2,837		$	1,820	$	4,418	$	2,816	$	694	$	297		$	12,882

General reserve	$	2,721		$	1,820	$	4,399	$	2,816	$	694	$	297		$	12,747
Specific reserve	116			—		19		—		—		—			135

Loans: ⁽¹⁾
Total Loans	$	278,655		$	184,902	$	361,299	$	145,618	$	23,087	$	9,133		$	1,002,694
General reserve ⁽²⁾	265,093			183,768		358,105		145,618		23,087		9,039			984,710
Specific reserve ⁽³⁾	13,562			1,134		3,194		—		—		94			17,984

_____________

⁽¹⁾ Net of LIP.

⁽²⁾ Loans collectively evaluated for impairment.

⁽³⁾ Loans individually evaluated for impairment.



	At or For the Year Ended December 31, 2016
	One-to-Four Family Residential			Multifamily		Commercial Real Estate		Construction/ Land		Business		Consumer			Total
ALLL:	(In thousands)
Beginning balance	$	3,028		$	1,193	$	3,395	$	1,193	$	229	$	425		$	9,463
Charge-offs	—			—		—		—		—		(83		)	(83		)
Recoveries	165			1		104		—		—		1			271
(Recapture) provision	(642		)	5		394		1,599		8		(64		)	1,300
Ending balance	$	2,551		$	1,199	$	3,893	$	2,792	$	237	$	279		$	10,951

General reserve	$	2,349		$	1,199	$	3,867	$	2,711	$	237	$	279		$	10,642
Specific reserve	202			—		26		81		—		—			309

Loans: ⁽¹⁾
Total Loans	$	249,435		$	123,250	$	303,694	$	136,922	$	7,938	$	6,922		$	828,161
General reserve ⁽²⁾	224,363			121,686		299,987		136,427		7,938		6,819			797,220
Specific reserve ⁽³⁾	25,072			1,564		3,707		495		—		103			30,941

______________

⁽¹⁾ Net of LIP.

⁽²⁾ Loans collectively evaluated for impairment.

⁽³⁾ Loans individually evaluated for impairment.

Financing Receivables, Aging of loans

The following tables represent a summary at December 31, 2018, and 2017, of the aging of loans by type:



	Loans Past Due as of December 31, 2018
	30-59 Days		60-89 Days		90 Days and Greater		Total		Current		Total Loans ^{(1) (2)}
	(In thousands)
Real estate:
One-to-four family residential:
Owner occupied	$	223	$	—	$	272	$	495	$	193,646	$	194,141
Non-owner occupied	—		—		—		—		147,825		147,825
Multifamily	—		—		—		—		169,355		169,355
Commercial real estate	—		—		326		326		373,472		373,798
Construction/land	—		—		—		—		108,854		108,854
Total real estate	223		—		598		821		993,152		993,973
Business	—		—		—		—		30,486		30,486
Consumer	—		—		—		—		12,970		12,970
Total	$	223	$	—	$	598	$	821	$	1,036,608	$	1,037,429

^{_________________________}

⁽¹⁾ There were no loans 90 days past due and still accruing interest at December 31, 2018.

⁽²⁾ Net of LIP.



	Loans Past Due as of December 31, 2017
	30-59 Days		60-89 Days		90 Days and Greater		Total		Current		Total Loans ^{(1) (2)}
	(In thousands)
Real estate:
One-to-four family residential:
Owner occupied	$	101	$	—	$	—	$	101	$	148,203	$	148,304
Non-owner occupied	—		—		—		—		130,351		130,351
Multifamily	—		—		—		—		184,902		184,902
Commercial real estate	—		—		—		—		361,299		361,299
Construction/land	—		—		—		—		145,618		145,618
Total real estate	101		—		—		101		970,373		970,474
Business	—		—		—		—		23,087		23,087
Consumer	—		—		—		—		9,133		9,133
Total	$	101	$	—	$	—	$	101	$	1,002,593	$	1,002,694

^{________________________}

⁽¹⁾ There were no loans 90 days past due and still accruing interest at December 31, 2017.

⁽²⁾ Net of LIP.

Schedule of non-accrual loans

The following table is a summary of nonaccrual loans at December 31, 2018, and 2017, by type of loan:



	December 31,
	2018		2017
	(In thousands)
One-to-four family residential	$	382	$	128
Commercial real estate	326		—
Consumer	44		51
Total nonaccrual loans	$	752	$	179

Financing Receivables, Summary of loans by type and payment activity

The following tables summarize the loan portfolio at December 31, 2018, and 2017, by type and payment activity:



	December 31, 2018
	One-to-Four Family Residential		Multifamily		Commercial Real Estate		Construction / Land		Business		Consumer		Total ⁽³⁾
	(In thousands)
Performing ⁽¹⁾	$	341,584	$	169,355	$	373,472	$	108,854	$	30,486	$	12,926	$	1,036,677
Nonperforming ⁽²⁾	382		—		326		—		—		44		752
Total	$	341,966	$	169,355	$	373,798	$	108,854	$	30,486	$	12,970	$	1,037,429

____________

⁽¹⁾ There were $193.8 million of owner-occupied one-to-four family residential loans and $147.8 million of non-owner occupied one to-four family residential loans classified as performing.

⁽²⁾ There were $382,000 of owner-occupied one-to-four family residential loans and no non-owner occupied one-to-four family residential loans classified as nonperforming.

⁽³⁾ Net of LIP.



	December 31, 2017
	One-to-Four Family Residential		Multifamily		Commercial Real Estate		Construction/ Land		Business		Consumer		Total ⁽³⁾
	(In thousands)
Performing ⁽¹⁾	$	278,527	$	184,902	$	361,299	$	145,618	$	23,087	$	9,082	$	1,002,515
Nonperforming ⁽²⁾	128		—		—		—		—		51		179
Total	$	278,655	$	184,902	$	361,299	$	145,618	$	23,087	$	9,133	$	1,002,694

_____________

⁽¹⁾ There were $148.2 million of owner-occupied one-to-four family residential loans and $130.3 million of non-owner occupied one-to-four family residential loans classified as performing.

⁽²⁾ There were $128,000 of owner-occupied one-to-four family residential loans and no non-owner occupied one-to-four family residential loans classified as nonperforming.

⁽³⁾ Net of LIP.

Schedule of Impaired Financing Receivables, Average Recorded Investment and Interest Income

The following tables present a summary of loans individually evaluated for impairment at December 31, 2018, and 2017, by the type of loan:



	At December 31, 2018
	Recorded Investment ⁽¹⁾		Unpaid Principal Balance ⁽²⁾		Related Allowance
	(In thousands)
Loans with no related allowance:
One-to-four family residential:
Owner occupied	$	1,308	$	1,477	$	—
Non-owner occupied	2,375		2,375		—
Commercial real estate	2,499		2,499		—
Consumer	87		141		—
Total	6,269		6,492		—
Loans with an allowance:
One-to-four family residential:
Owner occupied	513		560		22
Non-owner occupied	3,126		3,148		37
Commercial real estate	241		241		3
Total	3,880		3,949		62
Total impaired loans:
One-to-four family residential:
Owner occupied	1,821		2,037		22
Non-owner occupied	5,501		5,523		37
Commercial real estate	2,740		2,740		3
Consumer	87		141		—
Total	$	10,149	$	10,441	$	62

_________________

⁽¹⁾ Represents the loan balance less charge-offs.

⁽²⁾ Contractual loan principal balance.



	At December 31, 2017
	Recorded Investment ⁽¹⁾		Unpaid Principal Balance ⁽²⁾		Related Allowance
	(In thousands)
Loans with no related allowance:
One-to-four family residential:
Owner occupied	$	1,321	$	1,516	$	—
Non-owner occupied	8,409		8,409		—
Multifamily	1,134		1,134		—
Commercial real estate	1,065		1,065		—
Consumer	94		144		—
Total	12,023		12,268		—
Loans with an allowance:
One-to-four family residential:
Owner occupied	522		568		5
Non-owner occupied	3,310		3,332		111
Commercial real estate	2,129		2,129		19
Total	5,961		6,029		135
Total impaired loans:
One-to-four family residential:
Owner occupied	1,843		2,084		5
Non-owner occupied	11,719		11,741		111
Multifamily	1,134		1,134		—
Commercial real estate	3,194		3,194		19
Consumer	94		144		—
Total	$	17,984	$	18,297	$	135

_____________

⁽¹⁾ Represents the loan balance less charge-offs.

⁽²⁾ Contractual loan principal balance.

The following table presents a summary of recorded investment in impaired loans, and interest income recognized on impaired loans for the years ended December 31, 2018, 2017 and 2016, by the type of loan:



	Year Ended December 31,
	2018				2017				2016
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
	(In thousands)
Loans with no related allowance:
One-to-four family residential:
Owner occupied	$	1,207	$	82	$	1,773	$	93	$	2,566	$	156
Non-owner occupied	5,583		146		12,438		553		20,653		1,061
Multifamily	900		—		1,227		74		1,344		106
Commercial real estate	1,885		172		2,467		80		2,295		253
Consumer	91		8		98		8		117		12
Total	9,666		408		18,003		808		26,975		1,588

Loans with an allowance:
One-to-four family residential:
Owner occupied	518		35		1,301		32		2,026		104
Non-owner occupied	3,211		162		3,680		170		5,520		236
Multifamily	—		—		—		—		236		—
Commercial real estate	1,046		27		1,025		139		2,192		42
Construction/land	—		—		99		—		396		17
Consumer	—		—		—		—		30		—
Total	4,775		224		6,105		341		10,400		399

Total impaired loans:
One-to-four family residential:
Owner occupied	1,725		117		3,074		125		4,592		260
Non-owner occupied	8,794		308		16,118		723		26,173		1,297
Multifamily	900		—		1,227		74		1,580		106
Commercial real estate	2,931		199		3,492		219		4,487		295
Construction/land	—		—		99		—		396		17
Consumer	91		8		98		8		147		12
Total	$	14,441	$	632	$	24,108	$	1,149	$	37,375	$	1,987

Schedule of Non-performing assets and troubled debt restructured loans

The following is a summary of information pertaining to TDRs:



	December 31,
	2018		2017
	(In thousands)
Performing TDRs	$	9,399	$	17,805
Nonaccrual TDRs	—		—
Total TDRs	$	9,399	$	17,805

Troubled Debt Restructurings on Financing Receivables

The following table presents for the periods indicated TDRs and their recorded investment prior to the modification and after the modification:



	Year Ended December 31,
	2018					2017
	Number of Loans	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment		Number of Loans	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
	(Dollars in thousands)
TDRs that occurred during the period:
One-to-four family residential:
Principal and interest with interest rate concession	1	$	563	$	563	8	$	2,492	$	2,492
Commercial real estate:
Advancement of maturity date	—	—		—		1	891		891
Total	1	$	563	$	563	9	$	3,383	$	3,383

Schedule of Loans to Related Parties

Certain executive officers and directors have loans with the Bank. The aggregate dollar amount of these loans outstanding to related parties is summarized as follows:



	Year Ended December 31,
	2018			2017			2016
	(In thousands)
Balance at beginning of year	$	9		$	60		$	118
Additions	—			—			—
Change in director or executive status during year	—			—			(40		)
Repayments	(9		)	(51		)	(18		)
Balance at end of year	$	—		$	9		$	60