Loans

12 Months Ended

Dec. 31, 2018

Receivables [Abstract]

Loans

Loans

Loans held-for-investment, net, consists of the following (in thousands): 

	December 31,
	2018			2017
Originated loans:
Real estate loans:
Multifamily	$	1,930,535		$	1,735,712
Commercial mortgage	499,311			445,225
One-to-four family residential mortgage	91,371			100,942
Home equity and lines of credit	78,593			66,254
Construction and land	26,552			34,545
Total real estate loans	2,626,362			2,382,678
Commercial and industrial loans	44,104			34,828
Other loans	1,519			1,430
Total commercial and industrial and other loans	45,623			36,258
Deferred loan cost, net	6,892			6,339
Originated loans held-for-investment, net	2,678,877			2,425,275
PCI Loans	20,143			22,741
Loans acquired:
One-to-four family residential mortgage	225,877			275,053
Multifamily	145,485			199,149
Commercial mortgage	133,263			163,962
Home equity and lines of credit	17,583			20,455
Construction and land	12,003			17,201
Total acquired real estate loans	534,211			675,820
Commercial and industrial loans	11,933			16,946
Other loans	6			37
Total loans acquired	546,150			692,803
Loans held for investment, net	3,245,170			3,140,819
Allowance for loan losses	(27,497		)	(26,160		)
Net loans held-for-investment	$	3,217,673		$	3,114,659

The Company had no loans held-for-sale at December 31, 2018, or December 31, 2017. 

PCI loans totaled $20.1 million at December 31, 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 an FDIC-assisted transaction. The Company accounts for PCI loans utilizing U.S. GAAP applicable to loans acquired with deteriorated credit quality. At both December 31, 2018 and December 31, 2017, PCI loans consisted 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 sets forth information regarding the estimates of the contractually required payments, the cash flows expected to be collected, and the estimated fair value of the PCI loans acquired from Hopewell Valley at January 8, 2016 (in thousands):

	January 8, 2016
Contractually required principal and interest at acquisition	$	16,580
Contractual cash flows not expected to be collected (non-accretable discount)	(9,929		)
Expected cash flows to be collected at acquisition	6,651
Interest component of expected cash flows (accretable discount)	(845		)
Fair value of acquired loans	$	5,806

The following details the accretable yield (in thousands):   

	For The Year Ended December 31,
	2018			2017
Balance at the beginning of year	$	24,502		$	24,215
Accretion into interest income	(4,176		)	(5,477		)
Net reclassification from non-accretable difference(1)	1,520			5,764
Balance at end of year	$	21,846		$	24,502

(1) Reclassifications of the non-accretable difference to the accretable yield may occur subsequent to the loan acquisition dates due to increases in expected cash flows of the loans.

The Company does not have any lending programs commonly referred to as subprime lending. Subprime lending generally targets borrowers with weakened credit histories typically characterized by payment delinquencies, previous charge-offs, judgments, bankruptcies, or borrowers with questionable repayment capacity as evidenced by low credit scores or high debt-burden ratios.

We provide for loan losses based on the consistent application of our documented allowance for loan loss methodology. Loan losses are charged to the allowance for loans losses and recoveries are credited to it. Additions to the allowance for loan losses are provided by charges against income based on various factors which, in our judgment, deserve current recognition in estimating incurred losses. Loan losses are charged-off in the period the loans, or portion thereof, are deemed uncollectible. Generally, the Company will record a loan charge-off (including a partial charge-off) to reduce a loan to the estimated fair value of the underlying collateral, less cost to sell, for collateral dependent loans. We regularly review the loan portfolio in order to maintain the allowance for loan losses in accordance with U.S. GAAP. At December 31, 2018 and 2017, the allowance for loan losses related to loans held-for-investment (excluding PCI loans) consisted primarily of the following two components:

(1) Specific allowances are established for impaired loans (generally defined by the Company as non-accrual loans with an outstanding balance of $500,000 or greater and all loans restructured in troubled debt restructurings). The amount of impairment, if any, provided for as a specific reserve determined by the deficiency, if any, between the present value of expected future cash flows discounted at the original loan’s effective interest rate or the underlying collateral value (less estimated costs to sell and discounts for quick sales,) if the loan is collateral dependent, and the carrying value of the loan. Impaired loans that have no impairment losses are not considered for general allowances described below. Generally, the Company charges down a loan to the estimated fair value of the underlying collateral, less costs to sell for collateral dependent loans and, if necessary, maintains a specific reserve in the allowance for loan losses related to cash flow dependent impaired loans where the present value of the expected future cash flows, discounted at the loan’s original contractual interest rate, is less than the carrying value of the loan unless management determines that such shortfall should be charged off.

(2) General allowances are established for loan losses on a portfolio basis for loans that do not meet the definition of impaired. The portfolio is grouped into similar risk characteristics, primarily loan type, loan-to-value, if collateral dependent, and internal credit risk ratings. We apply an estimated loss rate to each loan group. The loss rates applied are based on our net loss experience (using appropriate look-back and loss emergence periods) as adjusted, if appropriate, for our qualitative assessment of factors which may not be fully captured in our historical quantitative net loss rates related to:

• changes in lending policies and procedures;

• changes in local, regional, national, and international economic and business conditions and developments that affect the collectability of our portfolio, including the condition of various market segments;

• changes in the nature and volume of our portfolio and in the terms of our loans;

• changes in the experience, ability and depth of lending management and other relevant staff;

• changes in the volume and severity of past due loans, the volume of non-accrual loans, and the volume and severity of adversely classified or graded loans;

• changes in the quality of our loan review system;

• changes in the value of underlying collateral for collateral-dependent loans;

• the existence and effect of any concentrations of credit, and changes in the level of such concentrations; and

• the effect of other external factors such as competition and legal and regulatory requirements on the level of estimated credit losses in our existing portfolio.

The loss emergence period is the estimated time from the date of the loss event to the actual recognition of the loss (typically the first charge-off), and is determined based upon a study of the Company's past loss experience by loan groups. The evaluation for loan losses is inherently subjective, as it requires material estimates that may be susceptible to significant revisions based upon changes in economic and real estate market conditions. Actual loan losses may be significantly more than the allowance for loan losses we have established, which could have a material negative effect on our financial results.

Held-for-investment loans acquired with no evidence of credit deterioration are initially valued at an estimated fair value on the date of acquisition, with no initial related allowance for loan losses. These loans are evaluated for impairment on a quarterly basis as part of our analysis of the allowance for loan losses. 

In underwriting a loan secured by real property, we require an appraisal (or an automated valuation model) of the property by an independent licensed appraiser approved by the Company’s Board of Directors. The appraisal is subject to review by an independent third-party hired by the Company.  We review and inspect properties before disbursement of funds during the term of a construction loan. Generally, management obtains updated appraisals when a loan is deemed impaired, or sooner if management deems it appropriate. These appraisals may be more limited than those prepared for the underwriting of a new loan. In addition, when the Company acquires other real estate owned, it generally obtains a current appraisal to substantiate the net carrying value of the asset.

We evaluate the allowance for loan losses based on the combined total of the impaired and general components for loans. Generally when the loan portfolio increases, absent other factors, our allowance for loan loss methodology results in a higher dollar amount of estimated incurred losses. Conversely, when the loan portfolio decreases, absent other factors, our allowance for loan loss methodology results in a lower dollar amount of estimated incurred losses.

Each quarter we evaluate the allowance for loan losses and adjust the allowance as appropriate through a provision for loan losses. While we use the best information available to make evaluations, future adjustments to the allowance may be necessary if conditions differ substantially from the information used in making the evaluations. In addition, as an integral part of their examination process, the Office of the Comptroller of the Currency (OCC) will periodically review the allowance for loan losses. The OCC may require us to adjust the allowance based on their analysis of information available to them at the time of their examination.

A summary of changes in the allowance for loan losses for the years ended December 31, 2018, 2017, and 2016 follows (in thousands): 

	December 31,
	2018			2017			2016
Balance at beginning of year	$	26,160		$	24,595		$	24,770
Provision for loan losses	2,615			1,411			635
Recoveries	112			556			194
Charge-offs	(1,390		)	(402		)	(1,004		)
Balance at end of year	$	27,497		$	26,160		$	24,595

The following table sets forth activity in our allowance for loan losses, by loan type, for the years ended December 31, 2018 and 2017.  The following table also details 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 allowance for loan losses that is allocated to each loan portfolio segment (in thousands):

	December 31, 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			PCI		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	(1,256		)	(3		)	—			—		(60		)	(70		)	—		—		(1,389		)	—		(1		)	(1,390		)
Recoveries	49			4			—			26		—			20			—		—		99			—		13			112
Provisions (credit)	1,641			(162		)	(147		)	684		229			346			14		—		2,605			59		(49		)	2,615
Ending Balance	$	5,630		$	342		$	463		$	18,084	$	291		$	1,569		$	108	$	—	$	26,487		$	1,010	$	—		$	27,497
Ending balance: individually evaluated for impairment	$	—		$	18		$	—		$	—	$	5		$	3		$	—	$	—	$	26		$	—	$	—		$	26
Ending balance: collectively evaluated for impairment	$	5,630		$	324		$	463		$	18,084	$	286		$	1,566		$	108	$	—	$	26,461		$	1,010	$	—		$	27,471
Loans, net:
Ending Balance	$	499,860		$	92,433		$	26,613		$	1,933,946	$	80,315		$	44,190		$	1,520	$	—	$	2,678,877		$	20,143	$	546,150		$	3,245,170
Ending balance: individually evaluated for impairment	$	15,252		$	1,893		$	—		$	1,268	$	61		$	73		$	—	$	—	$	18,547		$	—	$	3,782		$	22,329
Ending balance: collectively evaluated for impairment	$	484,608		$	90,540		$	26,613		$	1,932,678	$	80,254		$	44,117		$	1,520	$	—	$	2,660,330		$	20,143	$	542,368		$	3,222,841

	December 31, 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			PCI		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		)	—		(37		)	(402		)
Recoveries	70			—			—		277			97			79			—			—		523			—		33			556
Provisions (credit)	(302		)	(161		)	438		2,329			(459		)	(453		)	(2		)	—		1,390			55		(34		)	1,411
Ending Balance	$	5,196		$	503		$	610	$	17,374		$	122		$	1,273		$	94		$	—	$	25,172		$	951	$	37		$	26,160
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 table details the recorded investment of originated loans receivable held-for-investment, net of deferred fees and costs, by loan type and credit quality indicator at December 31, 2018 and 2017 (in thousands): 

	At December 31, 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	$	170,832	$	1,756,882	$	78,917	$	409,155	$	54,912	$	34,808	$	26,613	$	80,077	$	43,640	$	1,520	$	2,657,356
Special Mention	—		613		395		1,137		747		—		—		27		430		—		3,349
Substandard	—		5,619		—		10,256		1,406		560		—		211		120		—		18,172
Originated loans held-for-investment, net	$	170,832	$	1,763,114	$	79,312	$	420,548	$	57,065	$	35,368	$	26,613	$	80,315	$	44,190	$	1,520	$	2,678,877
	At 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 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 $9.2 million and $5.5 million at December 31, 2018, and December 31, 2017, respectively. Generally, originated loans are placed on non-accruing 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.

Non-accrual amounts include loans deemed to be impaired of $5.9 million and $3.1 million at December 31, 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 $3.2 million at December 31, 2018, and $2.4 million at December 31, 2017. There was no loans held-for-sale at December 31, 2018, or December 31, 2017. Loans past due 90 days or more and still accruing interest were $33,000 and $28,000 at December 31, 2018, and December 31, 2017, respectively, and consisted of loans that are well secured and in the process of collection. 

The following table sets forth the detail, and delinquency status, of originated and acquired non-performing loans (non-accrual loans and loans past due ninety days or more and still accruing), net of deferred fees and costs, at December 31, 2018 and 2017 (in thousands), excluding 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.

	At December 31, 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	$	—	$	287	$	2,588	$	2,875	$	—	$	2,875
Total commercial	—		287		2,588		2,875		—		2,875
One-to-four family residential
LTV < 60%
Substandard	—		432		77		509		—		509
LTV => 60%
Substandard	—		32		—		32		—		32
Total one-to-four family residential	—		464		77		541		—		541
Home equity and lines of credit
Substandard	75		—		—		75		—		75
Total home equity and lines of credit	75		—		—		75		—		75
Commercial and industrial loans
Substandard	—		—		25		25		—		25
Total commercial and industrial loans	—		—		25		25		—		25
Total non-performing loans held-for-investment, originated	75		751		2,690		3,516		—		3,516
Loans acquired:
Real Estate Loans:
Commercial
LTV < 35%
Substandard	87		—		194		281		—		281
LTV => 35%
Substandard	—		764		3,371		4,135		—		4,135
Total commercial	87		764		3,565		4,416		—		4,416
One-to-four family residential
LTV < 60%
Substandard	—		199		169		368		6		374
LTV => 60%
Substandard	126		—		93		219		27		246
Total one-to-four family residential	126		199		262		587		33		620
Multifamily
LTV < 35%
Substandard	152		—		—		152		—		152
LTV => 35%
Substandard	—		414		—		414		—		414
Total multifamily	152		414		—		566		—		566
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	365		1,377		3,904		5,646		33		5,679
Total non-performing loans	$	440	$	2,128	$	6,594	$	9,162	$	33	$	9,195

	At 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
Substandard	—		—		2		2		—		2
Total commercial and industrial loans	—		—		2		2		—		2
Other
Pass	—		—		—		—		1		1
Total other	—		—		—		—		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 table sets forth the detail and delinquency status of originated and acquired loans, net of deferred fees and costs, by performing and non-performing loans at December 31, 2018 and 2017 (in thousands):

	December 31, 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	$	78,699	$	218	$	78,917	$	—	$	78,917
Special Mention	—		395		395		—		395
Total	78,699		613		79,312		—		79,312
LTV => 35%
Pass	408,830		325		409,155		—		409,155
Special Mention	1,137		—		1,137		—		1,137
Substandard	7,381		—		7,381		2,875		10,256
Total	417,348		325		417,673		2,875		420,548
Total commercial	496,047		938		496,985		2,875		499,860
One-to-four family residential
LTV < 60%
Pass	54,576		336		54,912		—		54,912
Special Mention	—		747		747		—		747
Substandard	896		—		896		510		1,406
Total	55,472		1,083		56,555		510		57,065
LTV => 60%
Pass	34,576		232		34,808		—		34,808
Substandard	528		—		528		32		560
Total	35,104		232		35,336		32		35,368
Total one-to-four family residential	90,576		1,315		91,891		542		92,433
Construction and land
Pass	26,613		—		26,613		—		26,613
Total construction and land	26,613		—		26,613		—		26,613
Multifamily
LTV < 35%
Pass	170,534		298		170,832		—		170,832
Total	170,534		298		170,832		—		170,832
LTV= > 35%
Pass	1,756,443		439		1,756,882		—		1,756,882
Special Mention	613		—		613		—		613
Substandard	4,390		1,229		5,619		—		5,619
Total	1,761,446		1,668		1,763,114		—		1,763,114
Total multifamily	1,931,980		1,966		1,933,946		—		1,933,946
Home equity and lines of credit
Pass	80,077		—		80,077		—		80,077
Special Mention	27		—		27		—		27
Substandard	137		—		137		74		211
Total home equity and lines of credit	80,241		—		80,241		74		80,315
Commercial and industrial loans
Pass	43,640		—		43,640		—		43,640
Special Mention	430		—		430		—		430
Substandard	95		—		95		25		120
Total commercial and industrial loans	44,165		—		44,165		25		44,190
Other loans
Pass	1,518		2		1,520		—		1,520
Total other loans	1,518		2		1,520		—		1,520

	December 31, 2018
	Performing (Accruing) Loans
	0-29 Days Past Due		30-89 Days Past Due		Total		Non-Performing Loans		Total Loans Receivable, net
Total originated loans held-for-investment	2,671,140		4,221		2,675,361		3,516		2,678,877
Acquired loans:
One-to-four family residential
LTV < 60%
Pass	202,471		2,799		205,270		—		205,270
Special Mention	415		—		415		—		415
Substandard	62		6		68		374		442
Total	202,948		2,805		205,753		374		206,127
LTV => 60%
Pass	19,504		—		19,504		—		19,504
Substandard	—		—		—		246		246
Total	19,504		—		19,504		246		19,750
Total one-to-four family residential	222,452		2,805		225,257		620		225,877
Commercial
LTV < 35%
Pass	41,071		—		41,071		—		41,071
Special Mention	1,079		—		1,079		—		1,079
Substandard	1,185		151		1,336		281		1,617
Total	43,335		151		43,486		281		43,767
LTV => 35%
Pass	73,986		749		74,735		—		74,735
Special Mention	4,315		128		4,443		—		4,443
Substandard	5,772		411		6,183		4,135		10,318
Total	84,073		1,288		85,361		4,135		89,496
Total commercial	127,408		1,439		128,847		4,416		133,263
Construction and land
Pass	12,003		—		12,003		—		12,003
Total construction and land	12,003		—		12,003		—		12,003
Multifamily
LTV < 35%
Pass	137,141		—		137,141		—		137,141
Special Mention	—		52		52		—		52
Substandard	—		—		—		152		152
Total	137,141		52		137,193		152		137,345
LTV => 35%
Pass	7,726		—		7,726		—		7,726
Substandard	—		—		—		414		414
Total	7,726		—		7,726		414		8,140
Total multifamily	144,867		52		144,919		566		145,485
Home equity and lines of credit
Pass	17,427		—		17,427		—		17,427
Substandard	79		—		79		77		156
Total home equity and lines of credit	17,506		—		17,506		77		17,583
Commercial and industrial
Pass	11,888		45		11,933		—		11,933
Total commercial and industrial	11,888		45		11,933		—		11,933
Other	6		—		6		—		6
Total loans acquired	536,130		4,341		540,471		5,679		546,150
	$	3,207,270	$	8,562	$	3,215,832	$	9,195	$	3,225,027

	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 other loans	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:
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
Substandard	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
Special Mention	—		—		—		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 loans
Pass	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 (subsequent to acquisition) impaired loans as of December 31, 2018 and 2017 (in thousands): 

	At December 31, 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	5,931		6,817		—			6,263		7,150		—
Substandard	12,160		15,028		—			9,745		10,560		—
One-to-four family residential
LTV < 60%
Pass	1,532		1,606		—			1,189		1,254		—
Substandard	241		241		—			251		251		—
LTV => 60%
Pass	129		158		—			136		161		—
Substandard	126		278		—			135		286		—
Multifamily
LTV < 35%
Substandard	152		152		—			153		153		—
LTV => 35%
Pass	38		509		—			1,309		1,780		—
Substandard	1,229		1,229		—			—		—		—
Home Equity
Pass	28		28		—			33		33		—
Commercial and industrial loans
Substandard	52		119		—			135		135		—
With a Related Allowance Recorded:
Real estate loans:
One-to-four family residential
LTV < 60%
Pass	—		—		—			411		411		(7		)
Substandard	657		657		(18		)	997		997		(49		)
LTV => 60%
Pass	—		—		—			268		268		(19		)
Home equity and lines of credit
Substandard	33		33		(5		)	36		36		(4		)
Commercial and industrial loans
Special Mention	21		21		(3		)	24		24		(3		)
Total:
Real estate loans:
Commercial	18,091		21,984		—			16,008		17,849		—
One-to-four family residential	2,685		2,940		(18		)	3,387		3,628		(75		)
Multifamily	1,419		1,890		—			1,462		1,933		—
Home equity and lines of credit	61		61		(5		)	69		69		(4		)
Commercial and industrial loans	73		$	140	(3		)	159		159		(3		)
	$	22,329	$	27,015	$	(26	)	$	21,085	$	23,638	$	(82	)

Included in the table above at December 31, 2018, are impaired loans with carrying balances of $16.6 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 the 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 December 31, 2018 and 2017, have sufficient collateral values, less costs to sell (including any discounts to facilitate a sale), or sufficient future cash flows 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 years ended December 31, 2018, and December 31, 2017 (in thousands):

	December 31, 2018				December 31, 2017
	Average Recorded Investment		Interest Income		Average Recorded Investment		Interest Income
With No Allowance Recorded:
Real estate loans:
Commercial
LTV < 35%
Substandard	$	—	$	—	$	—	$	45
LTV => 35%
Pass	5,218		255		5,516		334
Substandard	10,582		404		12,402		431
One-to-four family residential
LTV < 60%
Pass	1,403		62		854		56
Substandard	246		12		372		14
One-to-four family residential
LTV => 60%
Pass	186		7		55		4
Substandard	129		13		289		13
Multifamily
LTV < 35%
Substandard	152		6		154		6
LTV => 35%
Pass	296		16		563		56
Substandard	987		67		—		—
Home equity and lines of credit
Pass	31		2		36		2
Commercial and industrial loans
Substandard	100		—		127		—
With a Related Allowance Recorded:
Real estate loans:
Commercial
LTV => 35%
Pass	880		76		—		—
Substandard	267		—		404		—
One-to-four family residential
LTV < 60%
Pass	164				165		7
Substandard	733		19		1,264		20
LTV => 60%
Pass	54		—		271		19
Substandard	—		—		152		—
Multifamily
LTV => 35%
Pass	—		—		778		—
Substandard	—		—		180		—
Home equity and lines of credit
Pass	—		—		153		—
Substandard	34		2		37		1
Commercial and industrial loans
Special Mention	23		1		25		1
Total:
Real estate loans:
Commercial	16,947		735		18,322		810
One-to-four family residential	2,915		113		3,422		133
Multifamily	1,435		89		1,675		62
Home equity and lines of credit	65		4		226		3
Commercial and industrial loans	123		1		152		1
	$	21,485	$	942	$	23,797	$	1,009

At December 31, 2018 and 2017, we had troubled debt restructurings (“TDRs”) of $16.9 million and $18.3 million, respectively. There was one one-to-four family residential loan modified as a TDR during the year ended December 31, 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 was one one-to-four family residential loan modified as a TDR during the year ended December 31, 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. Since modification, the loan restructured during the year ended December 31, 2017 subsequently defaulted.

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 a detailed 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 expert 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.