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Loans (Tables)
 9 Months Ended
Sep. 30, 2019
Loans and Leases Receivable Disclosure [Abstract]  
Composition of Loans Held-for-Portfolio, Excluding Loans Held for Sale
The composition of the loans-held-for portfolio at the dates indicated, excluding loans held-for-sale, was as follows (in thousands):
 
September 30,
2019
 
December 31,
2018
Real estate loans:
 
 
 
One-to-four family
$
152,088

 
$
169,830

Home equity
26,851

 
27,655

Commercial and multifamily
254,628

 
252,644

Construction and land
75,846

 
65,259

Total real estate loans
509,413

 
515,388

Consumer loans:
 
 
 
Manufactured homes
20,406

 
20,145

Floating homes
40,481

 
40,806

Other consumer
7,785

 
6,628

Total consumer loans
68,672

 
67,579

Commercial business loans
36,910

 
38,804

Total loans held-for-portfolio
614,995

 
621,771

Deferred fees
(2,092
)
 
(2,228
)
Total loans, gross held-for-portfolio
612,903

 
619,543

Allowance for loan losses
(5,618
)
 
(5,774
)
Total loans held-for-portfolio, net
$
607,285

 
$
613,769
Allowance for Loan Losses and Recorded Investment in Loans by Portfolio Segment and Based on Impairment Method
The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of September 30, 2019 (in thousands):
 
Allowance: Individually evaluated for impairment
 
Allowance: Collectively evaluated for impairment
 
Allowance:
Ending balance
 
Loans held for investment: Individually evaluated for impairment
 
Loans held for investment: Collectively evaluated for impairment
 
Loans held for investment:
Ending balance
 
 
 
 
 
 
 
 
 
 
 
 
One-to-four family
$
212

 
$
953

 
$
1,165

 
$
5,546

 
$
146,542

 
$
152,088

Home equity
24

 
153

 
177

 
3,372

 
23,479

 
26,851

Commercial and multifamily
—

 
1,653

 
1,653

 
353

 
254,275

 
254,628

Construction and land
7

 
492

 
499

 
119

 
75,727

 
75,846

Manufactured homes
365

 
130

 
495

 
476

 
19,930

 
20,406

Floating homes
—

 
263

 
263

 
—

 
40,481

 
40,481

Other consumer
54

 
56

 
110

 
144

 
7,641

 
7,785

Commercial business
84

 
235

 
319

 
694

 
36,216

 
36,910

Unallocated
—

 
937

 
937

 
—

 
—

 
—

 
$
746

 
$
4,872

 
$
5,618

 
$
10,704

 
$
604,291

 
$
614,995

The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of December 31, 2018 (in thousands):
 
Allowance: Individually evaluated for impairment
 
Allowance: Collectively evaluated for impairment
 
Allowance:
Ending balance
 
Loans held for investment: Individually evaluated for impairment
 
Loans held for investment: Collectively evaluated for impairment
 
Loans held for investment:
Ending balance
 
 
 
 
 
 
 
 
 
 
 
 
One-to-four family
$
228

 
$
1,086

 
$
1,314

 
$
2,760

 
$
167,070

 
$
169,830

Home equity
25

 
177

 
202

 
440

 
27,215

 
27,655

Commercial and multifamily
—

 
1,638

 
1,638

 
702

 
251,942

 
252,644

Construction and land
8

 
423

 
431

 
163

 
65,096

 
65,259

Manufactured homes
299

 
128

 
427

 
424

 
19,721

 
20,145

Floating homes
—

 
265

 
265

 
—

 
40,806

 
40,806

Other consumer
64

 
48

 
112

 
157

 
6,471

 
6,628

Commercial business
112

 
244

 
356

 
1,192

 
37,612

 
38,804

Unallocated
—

 
1,029

 
1,029

 
—

 
—

 
—

Total
$
736

 
$
5,038

 
$
5,774

 
$
5,838

 
$
615,933

 
$
621,771


The following table summarizes the activity in the allowance for loan losses for the three months ended September 30, 2019 (in thousands):
 
Beginning
Allowance
 
Charge-offs
 
Recoveries
 
Provision (Recapture)
 
Ending
Allowance
One-to-four family
$
1,139

 
$
—

 
$
3

 
$
23

 
$
1,165

Home equity
165

 
—

 
2

 
10

 
177

Commercial and multifamily
1,467

 
—

 
—

 
186

 
1,653

Construction and land
464

 
(1
)
 
—

 
36

 
499

Manufactured homes
463

 
—

 
—

 
32

 
495

Floating homes
262

 
—

 
—

 
1

 
263

Other consumer
120

 
(8
)
 
1

 
(3
)
 
110

Commercial business
509

 
—

 
1

 
(191
)
 
319

Unallocated
781

 
—

 
—

 
156

 
937

Total
$
5,370

 
$
(9
)
 
$
7

 
$
250

 
$
5,618


The following table summarizes the activity in the allowance for loan losses for the nine months ended September 30, 2019 (in thousands):
 
Beginning
Allowance
 
Charge-offs
 
Recoveries
 
(Recapture) Provision
 
Ending
Allowance
One-to-four family
$
1,314

 
$
—

 
$
3

 
$
(152
)
 
$
1,165

Home equity
202

 
—

 
8

 
(33
)
 
177

Commercial and multifamily
1,638

 
—

 
—

 
15

 
1,653

Construction and land
431

 
—

 
—

 
68

 
499

Manufactured homes
427

 
—

 
—

 
68

 
495

Floating homes
265

 
—

 
—

 
(2
)
 
263

Other consumer
112

 
(41
)
 
23

 
16

 
110

Commercial business
356

 
—

 
1

 
(38
)
 
319

Unallocated
1,029

 
—

 
—

 
(92
)
 
937

Total
$
5,774

 
$
(41
)
 
$
35

 
$
(150
)
 
$
5,618


The following table summarizes the activity in the allowance for loan losses for the three months ended September 30, 2018 (in thousands):
 
Beginning
Allowance
 
Charge-offs
 
Recoveries
 
Provision (Recapture)
 
Ending
Allowance
One-to-four family
$
1,579

 
$
—

 
$
—

 
$
(140
)
 
$
1,439

Home equity
211

 
—

 
3

 
(4
)
 
210

Commercial and multifamily
1,401

 
—

 
—

 
230

 
1,631

Construction and land
385

 
—

 
—

 
3

 
388

Manufactured homes
326

 
—

 
—

 
93

 
419

Floating homes
195

 
—

 
—

 
74

 
269

Other consumer
116

 
(11
)
 
3

 
(1
)
 
107

Commercial business
553

 
—

 
—

 
(134
)
 
419

Unallocated
737

 
—

 
—

 
129

 
866

Total
$
5,503

 
$
(11
)
 
$
6

 
$
250

 
$
5,748


The following table summarizes the activity in the allowance for loan losses for the nine months ended September 30, 2018 (in thousands):
 
Beginning
Allowance
 
Charge-offs
 
Recoveries
 
Provision (Recapture)
 
Ending
Allowance
One-to-four family
$
1,436

 
$
—

 
$
1

 
$
2

 
$
1,439

Home equity
293

 
(7
)
 
41

 
(117
)
 
210

Commercial and multifamily
1,250

 
—

 
—

 
381

 
1,631

Construction and land
378

 
—

 
—

 
10

 
388

Manufactured homes
355

 
(12
)
 
—

 
76

 
419

Floating homes
169

 
—

 
—

 
100

 
269

Other consumer
80

 
(24
)
 
8

 
43

 
107

Commercial business
372

 
—

 
—

 
47

 
419

Unallocated
908

 
—

 
—

 
(42
)
 
866

Total
$
5,241

 
$
(43
)
 
$
50

 
$
500

 
$
5,748
Credit Quality Indicators
The following table presents the internally assigned grades as of September 30, 2019, by type of loan (in thousands):
 
One-to-
four family
 
Home
equity
 
Commercial
and multifamily
 
Construction
and land
 
Manufactured
homes
 
Floating
homes
 
Other
consumer
 
Commercial
business
 
Total
Grade:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pass
$
147,326

 
$
23,355

 
$
245,885

 
$
70,590

 
$
19,989

 
$
40,481

 
$
7,731

 
$
34,378

 
$
589,735

Watch
—

 
—

 
3,741

 
—

 
65

 
—

 
—

 
566

 
4,372

Special Mention
—

 
—

 
3,843

 
5,176

 
—

 
—

 
—

 
321

 
9,340

Substandard
4,762

 
3,496

 
1,159

 
80

 
352

 
—

 
54

 
1,645

 
11,548

Doubtful
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Loss
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Total
$
152,088

 
$
26,851

 
$
254,628

 
$
75,846

 
$
20,406

 
$
40,481

 
$
7,785

 
$
36,910

 
$
614,995

Troubled debt restructurings ("TDRs"), which are accounted for under ASC 310-40, are loans which have renegotiated loan terms to assist borrowers who are unable to meet the original terms of their loans. Such modifications to loan terms may include a lower interest rate, a reduction in principal, or a longer term to maturity. Once a TDR has performed according to its modified terms for six months and the collection of principal and interest under the revised terms is deemed probable, we remove the TDR from nonperforming status. The Bank had $2.3 million in performing loans identified as TDRs at September 30, 2019, that were not classified as special mention or substandard.
The following table presents the internally assigned grades as of December 31, 2018, by type of loan (in thousands):
 
One-to-
four family
 
Home
equity
 
Commercial
and multifamily
 
Construction
and land
 
Manufactured
homes
 
Floating
homes
 
Other
consumer
 
Commercial
business
 
Total
Grade:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pass
$
163,655

 
$
27,150

 
$
246,907

 
$
55,916

 
$
19,860

 
$
40,806

 
$
6,576

 
$
35,876

 
$
596,746

Watch
—

 
—

 
1,139

 
5,968

 
—

 
—

 
—

 
689

 
7,796

Special Mention
—

 
—

 
2,497

 
3,252

 
—

 
—

 
—

 
367

 
6,116

Substandard
6,175

 
505

 
2,101

 
123

 
285

 
—

 
52

 
1,872

 
11,113

Doubtful
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Loss
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Total
$
169,830

 
$
27,655

 
$
252,644

 
$
65,259

 
$
20,145

 
$
40,806

 
$
6,628

 
$
38,804

 
$
621,771
Nonaccrual Loans
The following table presents the recorded investment in nonaccrual loans as of September 30, 2019, and December 31, 2018, by type of loan (in thousands):
 
September 30, 2019
 
December 31, 2018
One-to-four family
$
2,075

 
$
1,075

Home equity
487

 
360

Commercial and multifamily
353

 
534

Construction and land
80

 
123

Manufactured homes
271

 
214

Floating homes
—

 
—

Other consumer
—

 
—

Commercial business
170

 
235

Total
$
3,436

 
$
2,541
Aging of Recorded Investment in Past Due Loans
The following table presents the aging of the recorded investment in past due loans as of September 30, 2019, by type of loan (in thousands):
 
30-59 Days
Past Due
 
60-89 Days
Past Due
 
90 Days and Greater Past Due
 
Recorded Investment
> 90 Days and Accruing
 
Total Past
Due
 
Current
 
Total Loans
One-to-four family
$
148

 
$
192

 
$
1,791

 
$
—

 
$
2,131

 
$
149,957

 
$
152,088

Home equity
225

 
95

 
391

 
—

 
711

 
26,140

 
26,851

Commercial and multifamily
1,765

 
825

 
353

 
—

 
2,943

 
251,685

 
254,628

Construction and land
2,005

 
18

 
50

 
—

 
2,073

 
73,773

 
75,846

Manufactured homes
54

 
44

 
190

 
—

 
288

 
20,118

 
20,406

Floating homes
—

 
291

 
—

 
—

 
291

 
40,190

 
40,481

Other consumer
17

 
4

 
—

 
—

 
21

 
7,764

 
7,785

Commercial business
275

 
229

 
65

 
—

 
569

 
36,341

 
36,910

Total
$
4,489

 
$
1,698

 
$
2,840

 
$
—

 
$
9,027

 
$
605,968

 
$
614,995


The following table presents the aging of the recorded investment in past due loans as of December 31, 2018, by type of loan (in thousands):
 
30-59 Days
Past Due
 
60-89 Days
Past Due
 
90 Days and Greater Past Due
 
Recorded Investment
> 90 Days and Accruing
 
Total Past
Due
 
Current
 
Total Loans
One-to-four family
$
1,362

 
$
167

 
$
514

 
$
—

 
$
2,043

 
$
167,787

 
$
169,830

Home equity
298

 
149

 
284

 
—

 
731

 
26,924

 
$
27,655

Commercial and multifamily
139

 
—

 
353

 
—

 
492

 
252,152

 
$
252,644

Construction and land
650

 
—

 
50

 
—

 
700

 
64,559

 
$
65,259

Manufactured homes
78

 
129

 
199

 
—

 
406

 
19,739

 
$
20,145

Floating homes
—

 
—

 
—

 
—

 
—

 
40,806

 
$
40,806

Other consumer
11

 
5

 
—

 
—

 
16

 
6,612

 
$
6,628

Commercial business
228

 
177

 
122

 
—

 
$
527

 
38,277

 
$
38,804

Total
$
2,766

 
$
627

 
$
1,522

 
$
—

 
$
4,915

 
$
616,856

 
$
621,771
Credit Risk Profile of Loan Portfolio Based on Payment Activity by Type of Loan
The following table presents the credit risk profile of our loan portfolio based on payment activity as of September 30, 2019, by type of loan (in thousands):
 
One-to-four
family
 
Home
equity
 
Commercial
and
multifamily
 
Construction
and land
 
Manufactured
homes
 
Floating
homes
 
Other
consumer
 
Commercial
business
 
Total
Performing
$
150,013

 
$
26,364

 
$
254,275

 
$
75,766

 
$
20,135

 
$
40,481

 
$
7,785

 
$
36,740

 
$
611,559

Nonperforming
2,075

 
487

 
353

 
80

 
271

 
—

 
—

 
170

 
3,436

Total
$
152,088

 
$
26,851

 
$
254,628

 
$
75,846

 
$
20,406

 
$
40,481

 
$
7,785

 
$
36,910

 
$
614,995


The following table presents the credit risk profile of our loan portfolio based on payment activity as of December 31, 2018, by type of loan (in thousands):
 
One-to-four
family
 
Home
equity
 
Commercial
and
multifamily
 
Construction
and land
 
Manufactured
homes
 
Floating
homes
 
Other
consumer
 
Commercial
business
 
Total
Performing
$
168,710

 
$
27,296

 
$
252,110

 
$
65,136

 
$
19,931

 
$
40,806

 
$
6,628

 
$
38,487

 
$
619,104

Nonperforming
1,120

 
359

 
534

 
123

 
214

 
—

 
—

 
317

 
2,667

Total
$
169,830

 
$
27,655

 
$
252,644

 
$
65,259

 
$
20,145

 
$
40,806

 
$
6,628

 
$
38,804

 
$
621,771
Impaired Loans, Individually Evaluated
Impaired loans at September 30, 2019 and December 31, 2018, by type of loan were as follows (in thousands):
 
September 30, 2019
 
 
 
Recorded Investment
 
 
 
Unpaid Principal
Balance
 
Without
Allowance
 
With
Allowance
 
Total
Recorded
Investment
 
Related
Allowance
One-to-four family
$
5,677

 
$
4,190

 
$
1,356

 
$
5,546

 
$
212

Home equity
3,372

 
3,292

 
80

 
3,372

 
24

Commercial and multifamily
353

 
353

 
—

 
353

 
—

Construction and land
119

 
81

 
38

 
119

 
7

Manufactured homes
481

 
47

 
429

 
476

 
365

Floating homes
—

 
—

 
—

 
—

 
—

Other consumer
144

 
—

 
144

 
144

 
54

Commercial business
694

 
397

 
297

 
694

 
84

Total
$
10,840

 
$
8,360

 
$
2,344

 
$
10,704

 
$
746


 
December 31, 2018
 
 
 
Recorded Investment
 
 
 
Unpaid Principal
Balance
 
Without
Allowance
 
With
Allowance
 
Total
Recorded
Investment
 
Related
Allowance
One-to-four family
$
2,894

 
$
1,085

 
$
1,675

 
$
2,760

 
$
228

Home equity
520

 
359

 
81

 
440

 
25

Commercial and multifamily
702

 
702

 
—

 
702

 
—

Construction and land
163

 
123

 
40

 
163

 
8

Manufactured homes
430

 
—

 
424

 
424

 
299

Other consumer
156

 
—

 
157

 
157

 
64

Commercial business
1,192

 
659

 
533

 
1,192

 
112

Total
$
6,057

 
$
2,928

 
$
2,910

 
$
5,838

 
$
736


The average recorded investment and interest income recognized on impaired loans for the three and nine months ended September 30, 2019 and 2018, respectively, by loan types follows (in thousands):
 
Three Months Ended
September 30, 2019
 
Three Months Ended
September 30, 2018
 
Average
Recorded
Investment
 
Interest Income
Recognized
 
Average
Recorded
Investment
 
Interest Income
Recognized
One-to-four family
$
4,011

 
$
65

 
$
4,826

 
$
72

Home equity
1,998

 
14

 
807

 
10

Commercial and multifamily
501

 
—

 
3,204

 
46

Construction and land
121

 
1

 
1,305

 
86

Manufactured homes
462

 
14

 
386

 
11

Other consumer
150

 
2

 
163

 
2

Commercial business
694

 
—

 
2,338

 
69

Total
$
7,937

 
$
96

 
$
13,029

 
$
296


 
Nine Months Ended September 30, 2019
 
Nine Months Ended September 30, 2018
 
Average
Recorded
Investment
 
Interest Income
Recognized
 
Average
Recorded
Investment
 
Interest Income
Recognized
One-to-four family
$
3,831

 
$
125

 
$
5,594

 
$
180

Home equity
1,302

 
23

 
926

 
25

Commercial and multifamily
1,022

 
8

 
2,487

 
134

Construction and land
273

 
3

 
1,313

 
93

Manufactured homes
460

 
31

 
405

 
27

Other consumer
157

 
6

 
179

 
7

Commercial business
1,103

 
20

 
1,942

 
125

Total
$
8,148

 
$
216

 
$
12,846

 
$
591