Loans

9 Months Ended

Sep. 30, 2018

Receivables [Abstract]

Loans

Loans

Net loans held-for-investment are as follows (in thousands):

	September 30,			December 31,
	2018			2017
Real estate loans:
Multifamily	$	1,847,871		$	1,735,712
Commercial mortgage	502,691			445,225
One-to-four family residential mortgage	92,533			100,942
Home equity and lines of credit	75,719			66,254
Construction and land	27,044			34,545
Total real estate loans	2,545,858			2,382,678
Commercial and industrial loans	43,755			34,828
Other loans	1,374			1,430
Total commercial and industrial and other loans	45,129			36,258
Deferred loan cost, net	6,829			6,339
Originated loans held-for-investment, net	2,597,816			2,425,275
PCI Loans	20,535			22,741
Loans acquired:
One-to-four family residential mortgage	243,586			275,053
Multifamily	153,408			199,149
Commercial mortgage	146,005			163,962
Home equity and lines of credit	18,279			20,455
Construction and land	13,556			17,201
Total acquired real estate loans	574,834			675,820
Commercial and industrial loans	13,668			16,946
Other loans	15			37
Total loans acquired, net	588,517			692,803
Loans held-for-investment, net	3,206,868			3,140,819
Allowance for loan losses	(27,687		)	(26,160		)
Net loans held-for-investment	$	3,179,181		$	3,114,659

There were no loans held-for-sale at September 30, 2018, or December 31, 2017.

PCI loans totaled $20.5 million at September 30, 2018, as compared to $22.7 million at December 31, 2017. The majority of the PCI loan balance is attributable to those loans acquired as part of a Federal Deposit Insurance Corporation-assisted transaction. The Company accounts for PCI loans utilizing U.S. GAAP applicable to loans acquired with deteriorated credit quality. At September 30, 2018, PCI loans consist of approximately 28% commercial real estate loans and 49% commercial and industrial loans, with the remaining balance in residential and home equity loans. At December 31, 2017, PCI loans consist of approximately 27% commercial real estate loans and 50% commercial and industrial loans, with the remaining balance in residential and home equity loans.

The following table details the accretion of interest income for PCI loans for the three and nine months ended September 30, 2018 and September 30, 2017 (in thousands): 

	At or for the three months ended September 30,						At or for the nine months ended September 30,
	2018			2017			2018			2017
Balance at the beginning of period	$	22,386		$	21,442		$	24,502		$	24,215
Accretion into interest income	(1,025		)	(1,361		)	(3,141		)	(4,134		)
Balance at end of period	$	21,361		$	20,081		$	21,361		$	20,081

The following tables set forth activity in our allowance for loan losses, by loan type, as of and for the three and nine months ended September 30, 2018, and September 30, 2017 (in thousands):  

	Three Months Ended September 30, 2018
	Real Estate
	Commercial			One-to-Four Family		Construction and Land		Multifamily			Home Equity and Lines of Credit			Commercial and Industrial			Other			Unallocated		Originated Loans Total			Purchased Credit-Impaired		Acquired Loans			Total
Allowance for loan losses:
Beginning balance	$	5,718		$	384	$	438	$	17,603		$	279		$	1,402		$	107		$	—	$	25,931		$	951	$	—		$	26,882
Charge-offs	(444		)	—		—		—			—			(72		)	(1		)	—		(517		)	—		—			(517		)
Recoveries	12			—		—		—			—			—			—			—		12			—		6			18
Provisions (credit)	1,165			8		28		(323		)	(39		)	482			(11		)	—		1,310			—		(6		)	1,304
Ending balance	$	6,451		$	392	$	466	$	17,280		$	240		$	1,812		$	95		$	—	$	26,736		$	951	$	—		$	27,687

	Three Months Ended September 30, 2017
	Real Estate
	Commercial			One-to-Four Family			Construction and Land		Multifamily			Home Equity and Lines of Credit			Commercial and Industrial			Other			Unallocated		Originated Loans Total			Purchased Credit-Impaired		Acquired Loans			Total
Allowance for loan losses:
Beginning balance	$	5,236		$	550		$	229	$	16,636		$	363		$	1,532		$	97		$	—	$	24,643		$	896	$	66		$	25,605
Charge-offs	—			—			—		(6		)	—			(73		)	—			—		(79		)	—		—			(79		)
Recoveries	18			—			—		—			34			10			—			—		62			—		23			85
Provisions (credit)	(109		)	(85		)	475		507			(292		)	69			(22		)	—		543			—		(55		)	488
Ending balance	$	5,145		$	465		$	704	$	17,137		$	105		$	1,538		$	75		$	—	$	25,169		$	896	$	34		$	26,099

	Nine Months Ended September 30, 2018
	Real Estate
	Commercial			One-to-Four Family			Construction and Land			Multifamily			Home Equity and Lines of Credit			Commercial and Industrial			Other		Unallocated		Originated Loans Total			Purchased Credit-Impaired		Acquired Loans			Total
Allowance for loan losses:
Beginning balance	$	5,196		$	503		$	610		$	17,374		$	122		$	1,273		$	94	$	—	$	25,172		$	951	$	37		$	26,160
Charge-offs	(447		)	—			—			—			(60		)	(72		)	1		—		(578		)	—		(1		)	(579		)
Recoveries	37			3			—			26			—			20			—		—		86			—		12			98
Provisions/(credit)	1,665			(114		)	(144		)	(120		)	178			591			—		—		2,056			—		(48		)	2,008
Ending balance	$	6,451		$	392		$	466		$	17,280		$	240		$	1,812		$	95	$	—	$	26,736		$	951	$	—		$	27,687

	Nine Months Ended September 30, 2017
	Real Estate
	Commercial			One-to-Four Family			Construction and Land		Multifamily			Home Equity and Lines of Credit			Commercial and Industrial			Other			Unallocated		Originated Loans Total			Purchased Credit-Impaired		Acquired Loans			Total
Allowance for loan losses:
Beginning balance	$	5,432		$	664		$	172	$	14,952		$	588		$	1,720		$	96		$	—	$	23,624		$	896	$	75		$	24,595
Charge-offs	(4		)	—			—		(184		)	(104		)	(73		)	—			—		(365		)	—		(30		)	(395		)
Recoveries	52			—			—		278			97			74			—			—		501			—		27			528
Provisions/(credit)	(335		)	(199		)	532		2,091			(476		)	(183		)	(21		)	—		1,409			—		(38		)	1,371
Ending balance	$	5,145		$	465		$	704	$	17,137		$	105		$	1,538		$	75		$	—	$	25,169		$	896	$	34		$	26,099

The following tables detail the amount of loans receivable held-for-investment, net of deferred loan fees and costs, that are evaluated individually, and collectively, for impairment, and the related portion of the allowance for loan losses that is allocated to each loan portfolio segment, at September 30, 2018, and December 31, 2017 (in thousands):

	September 30, 2018
	Real Estate
	Commercial		One-to-Four Family		Construction and Land		Multifamily		Home Equity and Lines of Credit		Commercial and Industrial		Other		Originated Loans Total		Purchased Credit-Impaired		Acquired Loans		Total
Allowance for loan losses:
Ending balance: individually evaluated for impairment	$	501	$	19	$	—	$	—	$	5	$	4	$	—	$	529	$	—	$	—	$	529
Ending balance: collectively evaluated for impairment	$	5,950	$	373	$	466	$	17,280	$	235	$	1,808	$	95	$	26,207	$	951	$	—	$	27,158
Loans, net:
Ending balance	$	503,225	$	93,603	$	27,112	$	1,851,275	$	77,375	$	43,851	$	1,375	$	2,597,816	$	20,535	$	588,517	$	3,206,868
Ending balance: individually evaluated for impairment	$	16,220	$	1,916	$	—	$	1,271	$	63	$	76	$	—	$	19,546	$	—	$	3,787	$	23,333
Ending balance: collectively evaluated for impairment	$	487,005	$	91,687	$	27,112	$	1,850,004	$	77,312	$	43,775	$	1,375	$	2,578,270	$	20,535	$	584,730	$	3,183,535

	December 31, 2017
	Real Estate
	Commercial		One-to-Four Family		Construction and Land		Multifamily		Home Equity and Lines of Credit		Commercial and Industrial		Other		Originated Loans Total		Purchased Credit-Impaired		Acquired Loans		Total
Allowance for loan losses:
Ending balance: individually evaluated for impairment	$	—	$	38	$	—	$	—	$	4	$	3	$	—	$	45	$	—	$	37	$	82
Ending balance: collectively evaluated for impairment	$	5,196	$	465	$	610	$	17,374	$	118	$	1,270	$	94	$	25,127	$	951	$	—	$	26,078
Loans, net:
Ending balance	$	445,781	$	101,650	$	34,620	$	1,739,220	$	67,679	$	34,893	$	1,432	$	2,425,275	$	22,741	$	692,803	$	3,140,819
Ending balance: individually evaluated for impairment	$	16,008	$	1,996	$	—	$	1,310	$	69	$	159	$	—	$	19,542	$	—	$	1,543	$	21,085
Ending balance: collectively evaluated for impairment	$	429,773	$	99,654	$	34,620	$	1,737,910	$	67,610	$	34,734	$	1,432	$	2,405,733	$	22,741	$	691,260	$	3,119,734

The Company monitors the credit quality of its loan portfolio on a regular basis. Credit quality is monitored by reviewing certain credit quality indicators. Management has determined that loan-to-value ratios (at period end) and internally assigned credit risk ratings by loan type are the key credit quality indicators that best measure the credit quality of the Company’s loan receivables. Loan-to-value (“LTV”) ratios used by management in monitoring credit quality are based on current period loan balances and original appraised values at time of origination (unless a current appraisal has been obtained as a result of the loan being deemed impaired). In calculating the provision for loan losses, based on past loan loss experience, management has determined that commercial real estate loans and multifamily loans having loan-to-value ratios, as described above, of less than 35%, and one-to-four family loans having loan-to-value ratios, as described above, of less than 60%, require less of a loss factor than those with higher loan to value ratios.

The Company maintains a credit risk rating system as part of the risk assessment of its loan portfolio. The Company’s lending officers are required to assign a credit risk rating to each loan in their portfolio at origination. This risk rating is reviewed periodically and adjusted if necessary. Monthly, management presents monitored assets to the loan committee. In addition, the Company engages a third-party independent loan reviewer that performs semi-annual reviews of a sample of loans, validating the credit risk ratings assigned to such loans. The credit risk ratings play an important role in the establishment of the loan loss provision and the allowance for loan losses for originated loans held-for-investment. After determining the general reserve loss factor for each originated portfolio segment held-for-investment, the originated portfolio segment held-for-investment balance collectively evaluated for impairment is multiplied by the general reserve loss factor for the respective portfolio segment in order to determine the general reserve.

When assigning a risk rating to a loan, management utilizes the Bank’s internal nine-point credit risk rating system. 

1. Strong

2. Good

3. Acceptable

4. Adequate

5. Watch

6. Special Mention

7. Substandard

8. Doubtful

9. Loss

Loans rated 1 to 5 are considered pass ratings. An asset is classified substandard if it is inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Substandard assets have well defined weaknesses based on objective evidence, and are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. Assets classified as doubtful have all of the weaknesses inherent in those classified substandard with the added characteristic that the weaknesses present make collection or liquidation in full highly questionable and improbable based on current circumstances. Assets classified as loss are those considered uncollectible and of such little value that their continuance as assets is not warranted. Assets which do not currently expose the Company to sufficient risk to warrant classification in one of the aforementioned categories, but possess weaknesses, are required to be designated special mention.

The following tables detail the recorded investment of originated loans held-for-investment, net of deferred fees and costs, by loan type and credit quality indicator at September 30, 2018, and December 31, 2017 (in thousands):

	September 30, 2018
	Real Estate
	Multifamily				Commercial				One-to-Four Family				Construction and Land		Home Equity and Lines of Credit		Commercial and Industrial		Other		Total
	< 35% LTV		=> 35% LTV		< 35% LTV		=> 35% LTV		< 60% LTV		=> 60% LTV
Internal Risk Rating
Pass	$	154,512	$	1,694,833	$	70,369	$	420,158	$	55,765	$	35,183	$	27,112	$	77,134	$	43,257	$	1,375	$	2,579,698
Special Mention	—		620		399		1,148		665		—		—		27		493		—		3,352
Substandard	—		1,310		—		11,151		1,422		568		—		214		101		—		14,766
Originated loans held-for-investment, net	$	154,512	$	1,696,763	$	70,768	$	432,457	$	57,852	$	35,751	$	27,112	$	77,375	$	43,851	$	1,375	$	2,597,816

	December 31, 2017
	Real Estate
	Multifamily				Commercial				One-to-Four Family				Construction and Land		Home Equity and Lines of Credit		Commercial and Industrial		Other		Total
	< 35% LTV		=> 35% LTV		< 35% LTV		=> 35% LTV		< 60% LTV		=> 60% LTV
Internal Risk Rating
Pass	$	131,792	$	1,603,947	$	84,620	$	346,857	$	60,400	$	38,504	$	34,620	$	67,426	$	34,141	$	1,432	$	2,403,739
Special Mention	—		1,897		410		2,170		683		—		—		28		571		—		5,759
Substandard	—		1,584		—		11,724		1,470		593		—		225		181		—		15,777
Originated loans held-for-investment, net	$	131,792	$	1,607,428	$	85,030	$	360,751	$	62,553	$	39,097	$	34,620	$	67,679	$	34,893	$	1,432	$	2,425,275

Included in loans receivable (including loans held-for-sale) are loans for which the accrual of interest income has been discontinued due to deterioration in the financial condition of the borrowers. The recorded investment of these non-accrual loans was $10.0 million and $5.5 million at September 30, 2018, and December 31, 2017, respectively. Generally, loans are placed on non-accrual status when they become 90 days or more delinquent, or sooner if considered appropriate by management, and remain on non-accrual status until they are brought current, have six consecutive months of performance under the loan terms, and factors indicating reasonable doubt about the timely collection of payments no longer exist. Therefore, loans may be current in accordance with their loan terms, or may be less than 90 days delinquent and still be on a non-accruing status.    

These non-accrual amounts included loans deemed to be impaired of $6.7 million and $3.1 million at September 30, 2018, and December 31, 2017, respectively. Loans on non-accrual status with principal balances less than $500,000, and therefore not meeting the Company’s definition of an impaired loan, amounted to $3.3 million and $2.4 million at September 30, 2018, and December 31, 2017, respectively. There were no non-accrual loans held-for-sale at September 30, 2018 and December 31, 2017. Loans past due 90 days or more and still accruing interest were $33,000 and $28,000 at September 30, 2018 and December 31, 2017, respectively, and consisted of loans that are considered well-secured and in the process of collection.

The following tables set forth the detail, and delinquency status, of non-performing loans (non-accrual loans and loans past due 90 days or more and still accruing), net of deferred fees and costs, at September 30, 2018, and December 31, 2017, excluding loans held-for-sale and PCI loans which have been segregated into pools. For PCI loans, each loan pool is accounted for as a single asset with a single composite interest rate and an aggregate expectation of cash flows (in thousands):

	September 30, 2018
	Total Non-Performing Loans
	Non-Accruing Loans
	0-29 Days Past Due		30-89 Days Past Due		90 Days or More Past Due		Total		90 Days or More Past Due and Accruing		Total Non-Performing Loans
Loans held-for-investment:
Real estate loans:
Commercial
LTV => 35%
Substandard	$	—	$	—	$	3,696	$	3,696	$	—	$	3,696
Total commercial	—		—		3,696		3,696		—		3,696
One-to-four family residential
LTV < 60%
Substandard	—		240		277		517		—		517
Total	—		240		277		517		—		517
LTV => 60%
Substandard	—		33		—		33		—		33
Total one-to-four family residential	—		273		277		550		—		550
Home equity and lines of credit
Substandard	75		—		—		75		—		75
Total home equity and lines of credit	75		—		—		75		—		75
Total non-performing loans held-for-investment, originated	75		273		3,973		4,321		—		4,321
Loans acquired:
Real estate loans:
Commercial
LTV < 35%
Substandard	—		—		289		289		—		289
LTV => 35%
Substandard	518		3,088		537		4,143		—		4,143
Total commercial	518		3,088		826		4,432		—		4,432
One-to-four family residential
LTV < 60%
Substandard	—		200		170		370		6		376
LTV => 60%
Substandard	127		—		93		220		27		247
Total one-to-four family residential	127		200		263		590		33		623
Multifamily
LTV < 35%
Substandard	152		—		—		152		—		152
LTV => 35%
Substandard	—		415		—		415		—		415
Total multifamily	152		415		—		567		—		567
Home equity and lines of credit
Substandard	—		—		77		77		—		77
Total home equity and lines of credit	—		—		77		77		—		77
Total non-performing loans acquired	797		3,703		1,166		5,666		33		5,699
Total non-performing loans	$	872	$	3,976	$	5,139	$	9,987	$	33	$	10,020

	December 31, 2017
	Total Non-Performing Loans
	Non-Accruing Loans
	0-29 Days Past Due		30-89 Days Past Due		90 Days or More Past Due		Total		90 Days or More Past Due and Accruing		Total Non-Performing Loans
Loans held-for-investment:
Real estate loans:
Commercial
LTV => 35%
Substandard	$	432	$	314	$	2,305	$	3,051	$	—	$	3,051
Total commercial	432		314		2,305		3,051		—		3,051
One-to-four family residential
LTV < 60%
Substandard	—		206		328		534		—		534
LTV => 60%
Substandard	—		—		39		39		—		39
Total one-to-four family residential	—		206		367		573		—		573
Home equity and lines of credit
Substandard	79		—		—		79		—		79
Total home equity and lines of credit	79		—		—		79		—		79
Commercial and industrial loans
Substandard	—		—		72		72		—		72
Total commercial and industrial loans	—		—		72		72		—		72
Total non-performing loans held-for-investment, originated	511		520		2,744		3,775		—		3,775
Loans acquired:
Real estate loans:
Commercial
LTV < 35%
Substandard	—		—		205		205		—		205
LTV => 35%
Substandard	—		773		58		831		—		831
Total commercial	—		773		263		1,036		—		1,036
One-to-four family residential
LTV < 60%
Substandard	—		201		—		201		27		228
Total one-to-four family residential	—		201		—		201		27		228
Multifamily
LTV => 35%
Substandard	—		417		—		417		—		417
Total multifamily	—		417		—		417		—		417
Home equity and lines of credit
Substandard	—		28		49		77		—		77
Total home equity and lines of credit	—		28		49		77		—		77
Commercial and industrial loans
Substandard	—		—		2		2		—		2
Total commercial and industrial loans	—		—		2		2		—		2
Other loans - Pass	—		—		—		—		1		1
Total non-performing loans acquired	—		1,419		314		1,733		28		1,761
Total non-performing loans	$	511	$	1,939	$	3,058	$	5,508	$	28	$	5,536

The following tables set forth the detail and delinquency status of originated and acquired loans held-for-investment, net of deferred fees and costs, by performing and non-performing loans at September 30, 2018, and December 31, 2017 (in thousands):

	September 30, 2018
	Performing (Accruing) Loans
	0-29 Days Past Due		30-89 Days Past Due		Total		Non-Performing Loans		Total Loans Receivable, net
Loans held-for-investment:
Real estate loans:
Commercial
LTV < 35%
Pass	$	70,369	$	—	$	70,369	$	—	$	70,369
Special Mention	—		399		399		—		399
Total	70,369		399		70,768		—		70,768
LTV => 35%
Pass	420,158		—		420,158		—		420,158
Special Mention	1,148		—		1,148		—		1,148
Substandard	7,455		—		7,455		3,696		11,151
Total	428,761		—		428,761		3,696		432,457
Total commercial	499,130		399		499,529		3,696		503,225
One-to-four family residential
LTV < 60%
Pass	53,307		2,458		55,765		—		55,765
Special Mention	—		665		665		—		665
Substandard	905		—		905		517		1,422
Total	54,212		3,123		57,335		517		57,852
LTV => 60%
Pass	34,948		235		35,183		—		35,183
Substandard	535		—		535		33		568
Total	35,483		235		35,718		33		35,751
Total one-to-four family residential	89,695		3,358		93,053		550		93,603
Construction and land
Pass	27,112		—		27,112		—		27,112
Total construction and land	27,112		—		27,112		—		27,112
Multifamily
LTV < 35%
Pass	154,512		—		154,512		—		154,512
Total	154,512		—		154,512		—		154,512
LTV => 35%
Pass	1,693,946		887		1,694,833		—		1,694,833
Special Mention	620		—		620		—		620
Substandard	80		1,230		1,310		—		1,310
Total	1,694,646		2,117		1,696,763		—		1,696,763
Total multifamily	1,849,158		2,117		1,851,275		—		1,851,275
Home equity and lines of credit
Pass	77,065		69		77,134		—		77,134
Special Mention	27		—		27		—		27
Substandard	139		—		139		75		214
Total home equity and lines of credit	77,231		69		77,300		75		77,375
Commercial and industrial
Pass	43,058		199		43,257		—		43,257
Special Mention	396		97		493		—		493
Substandard	101		—		101		—		101
Total commercial and industrial	43,555		296		43,851		—		43,851

	September 30, 2018
	Performing (Accruing) Loans (Continued)
	0-29 Days Past Due		30-89 Days Past Due		Total		Non-Performing Loans		Total Loans Receivable, net
Other loans - Pass	1,375		—		1,375		—		1,375
Total originated loans held-for-investment	2,587,256		6,239		2,593,495		4,321		2,597,816
Acquired loans:
Real estate loans:
One-to-four family residential
LTV < 60%
Pass	219,658		1,991		221,649		—		221,649
Special Mention	422		—		422		—		422
Substandard	71		—		71		376		447
Total	220,151		1,991		222,142		376		222,518
LTV => 60%
Pass	20,547		274		20,821		—		20,821
Substandard	—		—		—		247		247
Total	20,547		274		20,821		247		21,068
Total one-to-four family residential	240,698		2,265		242,963		623		243,586
Commercial
LTV < 35%
Pass	49,160		2,257		51,417		—		51,417
Special Mention	87		69		156		—		156
Substandard	—		83		83		289		372
Total	49,247		2,409		51,656		289		51,945
LTV => 35%
Pass	85,307		457		85,764		—		85,764
Special Mention	—		130		130		—		130
Substandard	3,608		415		4,023		4,143		8,166
Total	88,915		1,002		89,917		4,143		94,060
Total commercial	138,162		3,411		141,573		4,432		146,005
Construction and land
Pass	13,556		—		13,556		—		13,556
Total construction and land	13,556		—		13,556		—		13,556
Multifamily
LTV < 35%
Pass	145,005		—		145,005		—		145,005
Special Mention	55		—		55		—		55
Substandard	—		—		—		152		152
Total	145,060		—		145,060		152		145,212
LTV => 35%
Pass	7,781		—		7,781		—		7,781
Substandard	—		—		—		415		415
Total	7,781		—		7,781		415		8,196
Total multifamily	152,841		—		152,841		567		153,408
Home equity and lines of credit
Pass	18,111		11		18,122		—		18,122
Substandard	80		—		80		77		157
Total home equity and lines of credit	18,191		11		18,202		77		18,279
Commercial and industrial
Pass	13,668		—		13,668		—		13,668
Total commercial and industrial	13,668		—		13,668		—		13,668
Other loans - Pass	15		—		15		—		15
Total loans acquired	577,131		5,687		582,818		5,699		588,517
	$	3,164,387	$	11,926	$	3,176,313	$	10,020	$	3,186,333

	December 31, 2017
	Performing (Accruing) Loans
	0-29 Days Past Due		30-89 Days Past Due		Total		Non-Performing Loans		Total Loans Receivable, net
Loans held-for-investment:
Real estate loans:
Commercial
LTV < 35%
Pass	$	84,620	$	—	$	84,620	—		$	84,620
Special Mention	—		410		410		—		410
Total	84,620		410		85,030		—		85,030
LTV => 35%
Pass	346,229		628		346,857		—		346,857
Special Mention	832		1,338		2,170		—		2,170
Substandard	7,675		998		8,673		3,051		11,724
Total	354,736		2,964		357,700		3,051		360,751
Total commercial	439,356		3,374		442,730		3,051		445,781
One-to-four family residential
LTV < 60%
Pass	57,907		2,493		60,400		—		60,400
Special Mention	—		683		683		—		683
Substandard	322		614		936		534		1,470
Total	58,229		3,790		62,019		534		62,553
LTV => 60%
Pass	38,504		—		38,504		—		38,504
Substandard	554		—		554		39		593
Total	39,058		—		39,058		39		39,097
Total one-to-four family residential	97,287		3,790		101,077		573		101,650
Construction and land
Pass	34,614		6		34,620		—		34,620
Total construction and land	34,614		6		34,620		—		34,620
Multifamily
LTV < 35%
Pass	131,488		304		131,792		—		131,792
Total	131,488		304		131,792		—		131,792
LTV => 35%
Pass	1,603,714		233		1,603,947		—		1,603,947
Special Mention	638		1,259		1,897		—		1,897
Substandard	83		1,501		1,584		—		1,584
Total	1,604,435		2,993		1,607,428		—		1,607,428
Total multifamily	1,735,923		3,297		1,739,220		—		1,739,220
Home equity and lines of credit
Pass	67,426		—		67,426		—		67,426
Special Mention	28		—		28		—		28
Substandard	146		—		146		79		225
Total home equity and lines of credit	67,600		—		67,600		79		67,679
Commercial and industrial loans
Pass	34,003		138		34,141		—		34,141
Special Mention	547		24		571		—		571
Substandard	109		—		109		72		181
Total commercial and industrial loans	34,659		162		34,821		72		34,893
Other loans - Pass	1,403		29		1,432		—		1,432
Total originated loans held-for-investment	$	2,410,842	$	10,658	$	2,421,500	$	3,775	$	2,425,275

	December 31, 2017
	Performing (Accruing) Loans
	0-29 Days Past Due		30-89 Days Past Due		Total		Non-Performing Loans		Total Loans Receivable, net
Loans Acquired
Real estate loans:
One-to-four family residential
LTV < 60%
Pass	250,149		224		250,373		—		250,373
Special Mention	455		—		455		—		455
Substandard	417		150		567		228		795
Total	251,021		374		251,395		228		251,623
LTV => 60%
Pass	23,295		—		23,295		—		23,295
Substandard	135		—		135		—		135
Total	23,430		—		23,430		—		23,430
Total one-to-four family residential	274,451		374		274,825		228		275,053
Commercial
LTV < 35%
Pass	50,035		70		50,105		—		50,105
Special Mention	91		—		91		—		91
Substandard	—		181		181		205		386
Total	50,126		251		50,377		205		50,582
LTV => 35%
Pass	108,125		158		108,283		—		108,283
Special Mention	—		133		133		—		133
Substandard	3,703		430		4,133		831		4,964
Total	111,828		721		112,549		831		113,380
Total commercial	161,954		972		162,926		1,036		163,962
Construction and land
Pass	17,201		—		17,201		—		17,201
Total construction and land	17,201		—		17,201		—		17,201
Multifamily
LTV < 35%
Pass	189,551		—		189,551		—		189,551
Special Mention	78		—		78		—		78
Substandard	153		—		153		—		153
Total	189,782		—		189,782		—		189,782
LTV => 35%
Pass	8,950		—		8,950		—		8,950
Substandard	—		—		—		417		417
Total	8,950		—		8,950		417		9,367
Total multifamily	198,732		—		198,732		417		199,149
Home equity and lines of credit
Pass	20,291		—		20,291		—		20,291
Substandard	87		—		87		77		164
Total home equity and lines of credit	20,378		—		20,378		77		20,455
Commercial and industrial loans
Pass	16,904		40		16,944		—		16,944
Substandard	—		—		—		2		2
Total commercial and industrial loans	16,904		40		16,944		2		16,946
Other	36		—		36		1		37
Total loans acquired	689,656		1,386		691,042		1,761		692,803
	$	3,100,498	$	12,044	$	3,112,542	$	5,536	$	3,118,078

The following table summarizes originated and acquired impaired loans as of September 30, 2018, and December 31, 2017 (in thousands):

	September 30, 2018							December 31, 2017
	Recorded Investment		Unpaid Principal Balance		Related Allowance			Recorded Investment		Unpaid Principal Balance		Related Allowance
With No Allowance Recorded:
Real estate loans:
Commercial
LTV < 35%
Substandard	$	—	$	139	$	—		$	—	$	139	$	—
LTV => 35%
Pass	4,569		5,455		—			6,263		7,150		—
Substandard	11,706		12,522		—			9,745		10,560		—
One-to-four family residential
LTV < 60%
Pass	1,546		1,618		—			1,189		1,254		—
Substandard	246		246		—			251		251		—
LTV => 60%
Pass	131		158		—			136		161		—
Substandard	127		279		—			135		286		—
Multifamily
LTV < 35%
Substandard	152		152		—			153		153		—
LTV => 35%
Pass	41		512		—			1,309		1,780		—
Substandard	1,230		1,230		—			—		—		—
Home equity and lines of credit
Pass	29		29		—			33		33		—
Commercial and industrial loans
Substandard	54		198		—			135		135		—
With a Related Allowance Recorded:
Real estate loans:
Commercial
LTV => 35%
Pass	1,447		1,447		(1		)	—		—		—
Substandard	1,336		2,192		(500		)	—		—		—
One-to-four family residential
LTV < 60%
Pass	—		—		—			411		411		(7		)
Substandard	663		663		(19		)	997		997		(49		)
LTV => 60%
Pass	—		—		—			268		268		(19		)
Home equity and lines of credit
Substandard	34		34		(5		)	36		36		(4		)
Commercial and industrial loans
Special Mention	22		22		(4		)	24		24		(3		)
Total:
Real estate loans
Commercial	19,058		21,755		(501		)	16,008		17,849		—
One-to-four family residential	2,713		2,964		(19		)	3,387		3,628		(75		)
Multifamily	1,423		1,894		—			1,462		1,933		—
Home equity and lines of credit	63		63		(5		)	69		69		(4		)
Commercial and industrial loans	76		220		(4		)	159		159		(3		)
	$	23,333	$	26,896	$	(529	)	$	21,085	$	23,638	$	(82	)

Included in the above table at September 30, 2018, are impaired loans with carrying balances of $15.3 million that were not written down by charge-offs or for which there are no specific reserves in our allowance for loan losses. Included in impaired loans at December 31, 2017, are loans with carrying balances of $14.5 million that were not written down by charge-offs or for which there are no specific reserves in our allowance for loan losses. Loans not written down by charge-offs or specific reserves at September 30, 2018, and December 31, 2017, are considered to have sufficient collateral values, less costs to sell, to support the carrying balances of the loans.

The following table summarizes the average recorded investment in originated and acquired impaired loans (excluding PCI loans) and interest recognized on impaired loans as of, and for, the three and nine months ended September 30, 2018, and September 30, 2017 (in thousands):

	Three Months Ended								Nine Months Ended
	September 30, 2018				September 30, 2017				September 30, 2018				September 30, 2017
	Average Recorded Investment		Interest Income		Average Recorded Investment		Interest Income		Average Recorded Investment		Interest Income		Average Recorded Investment		Interest Income
With No Allowance Recorded:
Real estate loans:
Commercial
LTV < 35%
Substandard	$	—	$	—	$	—	$	18	$	—	$	—	$	—	$	39
LTV => 35%
Pass	4,601		64		5,770		67		5,040		193		5,330		199
Substandard	10,657		184		12,434		151		10,187		334		13,066		406
One-to-four family residential
LTV < 60%
Pass	1,559		13		911		14		1,371		40		770		3
Substandard	243		4		418		4		247		9		402		10
LTV => 60%
Pass	132		1		69		1		200		6		34		42
Special Mention	—		—		—		1		—		—		—		2
Substandard	126		6		206		3		130		9		328		10
Multifamily
LTV < 35%
Substandard	152		4		154		2		152		5		154		5
LTV => 35%
Pass	43		4		692		12		361		12		377		40
Substandard	1,230		22		—		—		926		49		—		—
Home equity and lines of credit
Pass	30		—		36		1		31		1		37		2
Commercial and industrial loans
Substandard	92		—		140		—		113		—		125		—
With a Related Allowance Recorded:
Real estate loans:
Commercial
LTV => 35%
Pass	1,457		19		—		—		1,100		58		—		—
Substandard	668		—		—		—		334		—		505		—
One-to-four family residential
LTV < 60%
Pass	—		2		207		2		205		5		103		5
Substandard	667		4		1,353		5		752		13		1,332		13
LTV => 60%
Pass	—		—		271		4		67		—		272		15
Substandard	—		—		—		—		—		—		190		—
Multifamily
LTV => 35%

	Three Months Ended								Nine Months Ended
	September 30, 2018				September 30, 2017				September 30, 2018				September 30, 2017
	Average Recorded Investment		Interest Income		Average Recorded Investment		Interest Income		Average Recorded Investment		Interest Income		Average Recorded Investment		Interest Income
Pass	—		—		642		—		—		—		972		—
Substandard	—		—		—		—		—		—		225		—
Home equity and lines of credit
Pass	—		—		126		—		—		—		191		4
Substandard	34		1		37		—		35		1		38		1
Commercial and industrial loans
Special Mention	22		—		25		—		23		1		25		1
Total:
Real estate loans
Commercial	17,383		267		18,204		236		16,661		585		18,901		644
One-to-four family residential	2,727		30		3,435		34		2,972		82		3,431		100
Multifamily	1,425		30		1,488		14		1,439		66		1,728		45
Home equity and lines of credit	64		1		199		1		66		2		266		7
Commercial and industrial loans	114		—		165		—		136		1		150		1
	$	21,713	$	328	$	23,491	$	285	$	21,274	$	736	$	24,476	$	797

There was one one-to-four family residential loan modified as a troubled debt restructuring (TDR) during the three and nine months ended September 30, 2018. This loan had a pre- and post-modification balance of $6,400 as of the date of modification, and was restructured to receive a reduced interest rate. There were no loans modified as troubled debt restructurings (TDRs) during the three months ended September 30, 2017. There was one one-to-four family residential loan modified as a TDR during the nine months ended September 30, 2017. This loan had a pre- and post-modification balance of $256,000 as of the date of modification, and was restructured to receive a reduced interest rate.

At September 30, 2018, and December 31, 2017, we had TDRs of $17.1 million and $18.3 million, respectively.

Management classifies all TDRs as impaired loans. Impaired loans are individually assessed to determine that the loan’s carrying value is not in excess of the estimated fair value of the collateral less cost to sell, if the loan is collateral dependent, or the present value of the expected future cash flows, if the loan is not collateral dependent. Management performs an evaluation of each impaired loan and generally obtains updated appraisals as part of the evaluation. In addition, management adjusts estimated fair values down to appropriately consider recent market conditions, our willingness to accept a lower sales price to effect a quick sale, and costs to dispose of any supporting collateral. Determining the estimated fair value of underlying collateral (and related costs to sell) can be difficult in illiquid real estate markets and is subject to significant assumptions and estimates. Management employs an independent third-party management firm that specializes in appraisal preparation and review to ascertain the reasonableness of updated appraisals. Projecting the expected cash flows under troubled debt restructurings which are not collateral dependent is inherently subjective and requires, among other things, an evaluation of the borrower’s current and projected financial condition. Actual results may be significantly different than our projections and our established allowance for loan losses on these loans, which could have a material effect on our financial results.

At September 30, 2018, there were no TDR loans that were restructured during the preceding twelve months ended September 30, 2018, that subsequently defaulted.