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Note 5 - Loans
 6 Months Ended
Jun. 30, 2018
Notes to Financial Statements  
Loans, Notes, Trade and Other Receivables Disclosure [Text Block]
5.
Loans
 
Loans are reported at their outstanding principal balance net of any unearned income, charge-offs, deferred loan fees and costs on originated loans and unamortized premiums or discounts on purchased loans. Loan fees and certain loan origination costs are deferred. Net loan origination costs and premiums or discounts on loans purchased are amortized into interest income over the contractual life of the loans using the level-yield method. Prepayment penalties received on loans which pay in full prior to their scheduled maturity are included in interest income in the period they are collected.
 
Interest on loans is recognized on the accrual basis. The accrual of income on loans is generally discontinued when certain factors, such as contractual delinquency of
90
days or more, indicate reasonable doubt as to the timely collectability of such income. Uncollected interest previously recognized on non-accrual loans is reversed from interest income at the time the loan is placed on non-accrual status. A non-accrual loan can be returned to accrual status when contractual delinquency returns to less than
90
days delinquent. Payments received on non-accrual loans that do
not
bring the loan to less than
90
days delinquent are recorded on a cash basis. Payments can also be applied
first
as a reduction of principal until all principal is recovered and then subsequently to interest, if in management’s opinion, it is evident that recovery of all principal due is likely to occur.
 
The Company recognizes a loan as non-performing when the borrower has demonstrated the inability to bring the loan current, or due to other circumstances which, in management’s opinion, indicate the borrower will be unable to bring the loan current within a reasonable time. All loans classified as non-performing, which includes all loans past due
90
days or more, are classified as non-accrual unless there is, in our opinion, compelling evidence the borrower will bring the loan current in the immediate future. Prior to a loan becoming
90
days delinquent, an updated appraisal is ordered and/or an internal evaluation is prepared.
 
A loan is considered impaired when, based upon current information, the Company believes it is probable that it will be unable to collect all amounts due, both principal and interest, in accordance with the original terms of the loan. Impaired loans are measured based on the present value of the expected future cash flows discounted at the loan’s effective interest rate or at the loan’s observable market price or, as a practical expedient, the fair value of the collateral if the loan is collateral dependent. All non-accrual loans are considered impaired.
 
The Company maintains an allowance for loan losses at an amount, which, in management’s judgment, is adequate to absorb probable estimated losses inherent in the loan portfolio. Management’s judgment in determining the adequacy of the allowance is based on evaluations of the collectability of loans. This evaluation is inherently subjective, as it requires estimates that are susceptible to significant revisions as more information becomes available. An unallocated component
may
at times be maintained to cover uncertainties that could affect management's estimate of probable losses. When necessary an unallocated component of the allowance will reflect the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the portfolio. The allowance is established through charges to earnings in the form of a provision for loan losses based on management’s evaluation of the risk inherent in the various components of the loan portfolio and other factors, including historical loan loss experience (which is updated quarterly), current economic conditions, delinquency and non-accrual trends, classified loan levels, risk in the portfolio and volumes and trends in loan types, recent trends in charge-offs, changes in underwriting standards, experience, ability and depth of the Company’s lenders, collection policies and experience, internal loan review function and other external factors. Increases and decreases in the allowance other than charge-offs and recoveries are included in the provision for loan losses. When a loan or a portion of a loan is determined to be uncollectible, the portion deemed uncollectible is charged against the allowance, and subsequent recoveries, if any, are credited to the allowance.
 
The determination of the amount of the allowance for loan losses includes estimates that are susceptible to significant changes due to changes in appraisal values of collateral, national and local economic conditions and other factors. We review our loan portfolio by separate categories with similar risk and collateral characteristics. Impaired loans are segregated and reviewed separately.
 
The Company reviews each impaired loan on an individual basis to determine if either a charge-off or a valuation allowance needs to be allocated to the loan. The Company does
not
charge-off or allocate a valuation allowance to loans for which management has concluded the current value of the underlying collateral will allow for recovery of the loan balance through the sale of the loan or by foreclosure and sale of the property.
 
The Company considers fair value of collateral dependent loans to be
85%
of the appraised or internally estimated value of the property. The
85%
is based on the actual net proceeds the Bank has received from the sale of other real estate owned (“OREO”) as a percentage of OREO’s appraised value. For collateral dependent taxi medallion loans, the Company considers fair value to be the value of the underlying medallion based upon the most recently reported arm’s length sales transaction. When there is
no
recent sale activity, the fair value is calculated using capitalization rates. For both collateral dependent mortgage loans and taxi medallion loans, the amount by which the loan’s book value exceeds fair value is charged-off. During the
three
months ended
June 30, 2018,
the fair value of Chicago taxi medallion loans was reduced from
$60,000
per medallion to
$25,000
per medallion, based upon recent sales transactions. At
June 30, 2018,
our exposure to the Chicago taxi medallion portfolio totals
$0.2
million and to all taxi medallion loans held
$6.2
million, which is
0.12%
of total loans.
 
The Company segregated its loans into
two
portfolios based on year of origination. One portfolio was reviewed for loans originated after
December 31, 2009
and a
second
portfolio for loans originated prior to
January 1, 2010.
Our decision to segregate the portfolio based upon origination dates was based on changes made in our underwriting standards during
2009.
By the end of
2009,
all loans were being underwritten based on revised and tightened underwriting standards. Loans originated prior to
2010
have a higher delinquency rate and loss history. Each of the years in the portfolio for loans originated prior to
2010
has a similar delinquency rate. During the
three
months ended
June 30, 2018,
the Loss Emergence Period (“LEP”) used was
1.33
years for the Residential portfolio and
1.58
years for the Commercial portfolio. In the prior quarter, a blended LEP of
1.33
years was used for both portfolios. The Company’s Board of Directors reviews and approves management’s evaluation of the adequacy of the allowance for loan losses on a quarterly basis.
 
The Company evaluates the underlying collateral through a
third
party appraisal, or when a
third
party appraisal is
not
available, the Company will use an internal evaluation. The internal evaluations are prepared using an income approach or a sales approach. The income approach is used for income producing properties and uses current revenues less operating expenses to determine the net cash flow of the property. Once the net cash flow is determined, the value of the property is calculated using an appropriate capitalization rate for the property. The sales approach uses comparable sales prices in the market. When an internal evaluation is used, we place greater reliance on the income approach to value the collateral.
 
The Company
may
restructure a loan to enable a borrower experiencing financial difficulties to continue making payments when it is deemed to be in the Company’s best long-term interest. This restructure
may
include reducing the interest rate or amount of the monthly payment for a specified period of time, after which the interest rate and repayment terms revert to the original terms of the loan. We classify these loans as Troubled Debt Restructured (“TDR”).
 
These restructurings have
not
included a reduction of principal balance. The Company believes that restructuring these loans in this manner will allow certain borrowers to become and remain current on their loans. All loans classified as TDR are considered impaired, however TDR loans which have been current for
six
consecutive months at the time they are restructured as TDR remain on accrual status and are
not
included as part of non-performing loans. Loans which were delinquent at the time they are restructured as a TDR are placed on non-accrual status and reported as non-accrual performing TDR loans until they have made timely payments for
six
consecutive months.
 
The allocation of a portion of the allowance for loan losses for a performing TDR loan is based upon the present value of the future expected cash flows discounted at the loan’s original effective rate, or for a non-performing TDR loan which is collateral dependent, the fair value of the collateral. At
June 30, 2018,
there were
no
commitments to lend additional funds to borrowers whose loans were modified to a TDR. The modification of loans to a TDR did
not
have a significant effect on our operating results, nor did it require a significant allocation of the allowance for loan losses.
 
The Company did
not
modify any loans as TDR during the
three
and
six
months ended
June 30, 2018.
 
The following tables shows loans modified and classified as TDR during the periods indicated:
 
    For the three and six months ended
June 30, 2017
(Dollars in thousands)   Number   Balance   Modification description
         
                     
Taxi medallion    
5
     $
4,289
    
Three received a below market interest rate and a loan amortization extension, while two received an amortization extension.
Total    
5
     $
4,289
    
 
 
The recorded investment of the loans modified and classified as TDR presented in the table above, were unchanged as there was
no
principal forgiven in this modification.
 
The following table shows our recorded investment for loans classified as TDR that are performing according to their restructured terms at the periods indicated:
 
    June 30, 2018   December 31, 2017
(Dollars in thousands)   Number
of contracts		   Recorded
investment		   Number
of contracts		   Recorded
investment
                 
Multi-family residential    
9
     $
2,488
      
9
     $
2,518
  
Commercial real estate    
-
      
-
      
2
      
1,986
  
One-to-four family - mixed-use property    
5
      
1,726
      
5
      
1,753
  
One-to-four family - residential    
3
      
562
      
3
      
572
  
Taxi medallion    
19
      
5,482
      
20
      
5,916
  
Commercial business and other    
2
      
351
      
2
      
462
  
Total performing troubled debt restructured    
38
     $
10,609
      
41
     $
13,207
  
 
During the
six
months ended
June 30, 2018,
we sold
one
commercial real estate TDR loan totaling
$1.8
million, for a loss of
$0.3
million and foreclosed on
one
taxi medallion TDR loan of
$35,000,
which is included in “Other Assets”. There were
no
TDR loans that defaulted during the period, which were within
12
months of their modification date.
 
The following table shows our recorded investment for loans classified as TDR that are
not
performing according to their restructured terms at the periods indicated:
 
    June 30, 2018   December 31, 2017
(Dollars in thousands)   Number
of contracts		   Recorded
investment		   Number
of contracts		   Recorded
investment
                 
Multi-family residential    
1
     $
383
      
1
     $
383
  
                                 
Total troubled debt restructurings that subsequently defaulted    
1
     $
383
      
1
     $
383
  
 
There were
no
TDR loans transferred to non-performing status during the
three
months ended
June 30, 2018
and
2017
and the
six
months ended
June 30, 2017.
 
The following table shows our non-performing loans at the periods indicated:
 
(In thousands)   June 30,
2018		   December 31,
2017
         
Loans ninety days or more past due and still accruing:                
Commercial real estate   $
-
     $
2,424
  
Construction    
730
      
-
  
Total    
730
      
2,424
  
                 
Non-accrual mortgage loans:                
Multi-family residential    
2,165
      
3,598
  
Commercial real estate    
1,448
      
1,473
  
One-to-four family - mixed-use property    
2,157
      
1,867
  
One-to-four family - residential    
6,969
      
7,808
  
Co-operative apartments    
575
      
-
  
Total    
13,314
      
14,746
  
                 
Non-accrual non-mortgage loans:                
Small Business Administration    
-
      
46
  
Taxi medallion    
743
      
918
  
Commercial business and other    
2
      
-
  
Total    
745
      
964
  
                 
Total non-accrual loans    
14,059
      
15,710
  
                 
Total non-performing loans   $
14,789
     $
18,134
  
 
The following is a summary of interest foregone on non-accrual loans and loans classified as TDR for the periods indicated:
 
    For the three months ended
June 30,		   For the six months ended
June 30,
    2018   2017   2018   2017
    (In thousands)
Interest income that would have been recognized had the loans performed in accordance with their original terms   $
390
     $
433
     $
798
     $
848
  
Less:  Interest income included in the results of operations    
156
      
141
      
315
      
268
  
Total foregone interest   $
234
     $
292
     $
483
     $
580
  
 
The following tables show an age analysis of our recorded investment in loans, including loans past maturity, at the periods indicated:
 
    June 30, 2018
(In thousands)   30 - 59 Days
Past Due		   60 - 89 Days
Past Due		   Greater
than
90 Days		   Total Past
Due		   Current   Total Loans
             
                         
Multi-family residential   $
2,887
     $
410
     $
2,165
     $
5,462
     $
2,242,390
     $
2,247,852
  
Commercial real estate    
4,139
      
3,206
      
1,448
      
8,793
      
1,463,101
      
1,471,894
  
One-to-four family - mixed-use property    
2,080
      
-
      
2,157
      
4,237
      
560,237
      
564,474
  
One-to-four family - residential    
767
      
400
      
6,969
      
8,136
      
179,605
      
187,741
  
Co-operative apartments    
-
      
-
      
575
      
575
      
7,264
      
7,839
  
Construction loans    
-
      
-
      
730
      
730
      
33,096
      
33,826
  
Small Business Administration    
1,537
      
-
      
-
      
1,537
      
12,868
      
14,405
  
Taxi medallion    
-
      
-
      
-
      
-
      
6,225
      
6,225
  
Commercial business and other    
562
      
761
      
2
      
1,325
      
782,579
      
783,904
  
Total   $
11,972
     $
4,777
     $
14,046
     $
30,795
     $
5,287,365
     $
5,318,160
  
 
    December 31, 2017
(In thousands)   30 - 59 Days
Past Due		   60 - 89 Days
Past Due		   Greater
than
90 Days		   Total Past
Due		   Current   Total Loans
             
                         
Multi-family residential   $
2,533
     $
279
     $
3,598
     $
6,410
     $
2,267,185
     $
2,273,595
  
Commercial real estate    
1,680
      
2,197
      
3,897
      
7,774
      
1,360,338
      
1,368,112
  
One-to-four family - mixed-use property    
1,570
      
860
      
1,867
      
4,297
      
559,909
      
564,206
  
One-to-four family - residential    
1,921
      
680
      
7,623
      
10,224
      
170,439
      
180,663
  
Co-operative apartments    
-
      
-
      
-
      
-
      
6,895
      
6,895
  
Construction loans    
-
      
-
      
-
      
-
      
8,479
      
8,479
  
Small Business Administration    
-
      
-
      
-
      
-
      
18,479
      
18,479
  
Taxi medallion    
-
      
108
      
-
      
108
      
6,726
      
6,834
  
Commercial business and other    
2
      
-
      
-
      
2
      
732,971
      
732,973
  
Total   $
7,706
     $
4,124
     $
16,985
     $
28,815
     $
5,131,421
     $
5,160,236
  
 
The following tables show the activity in the allowance for loan losses for the
three
month periods indicated:
 
June 30, 2018
(In thousands)   Multi-family residential   Commercial real estate   One-to-four family - mixed-use property   One-to-four family - residential   Construction loans   Small Business Administration   Taxi medallion   Commercial business and other   Unallocated   Total
                                         
Allowance for credit losses:                                                                                
Beginning balance   $
5,750
     $
4,602
     $
2,470
     $
1,041
     $
191
     $
675
     $
-
     $
5,813
     $
-
     $
20,542
  
Charge-off's    
(28
 )    
-
      
-
      
-
      
-
      
(27
 )    
(353
 )    
(8
 )    
-
      
(416
 )
Recoveries    
-
      
-
      
79
      
4
      
-
      
9
      
-
      
2
      
-
      
94
  
Provision (Benefit)    
(184
 )    
124
      
(252
 )    
(42
 )    
73
      
(108
 )    
353
      
25
      
11
      
-
  
Ending balance   $
5,538
     $
4,726
     $
2,297
     $
1,003
     $
264
     $
549
     $
-
     $
5,832
     $
11
     $
20,220
  
 
 
June 30, 2017
(In thousands)   Multi-family residential   Commercial real estate   One-to-four family - mixed-use property   One-to-four family - residential   Construction loans   Small Business Administration   Taxi medallion   Commercial business and other   Unallocated   Total
                                         
Allowance for credit losses:                                                                                
Beginning balance   $
5,907
     $
4,485
     $
2,691
     $
979
     $
94
     $
315
     $
2,213
     $
4,712
     $
815
     $
22,211
  
Charge-off's    
(148
 )    
(4
 )    
(1
 )    
(170
 )    
-
      
(24
 )    
-
      
(3
 )    
-
      
(350
 )
Recoveries    
201
      
-
      
68
      
-
      
-
      
10
      
-
      
17
      
-
      
296
  
Provision (Benefit)    
(43
 )    
207
      
(190
 )    
181
      
36
      
5
      
117
      
(58
 )    
(255
 )    
-
  
Ending balance   $
5,917
     $
4,688
     $
2,568
     $
990
     $
130
     $
306
     $
2,330
     $
4,668
     $
560
     $
22,157
  
 
The following tables show the activity in the allowance for loan losses for the
six
month periods indicated:
 
June 30, 2018
(In thousands)   Multi-family residential   Commercial real estate   One-to-four family - mixed-use property   One-to-four family - residential   Construction loans   Small Business Administration   Taxi medallion   Commercial business and other   Unallocated   Total
                                         
Allowance for credit losses:                                                                                
Beginning balance   $
5,823
     $
4,643
     $
2,545
     $
1,082
     $
68
     $
669
     $
-
     $
5,521
     $
-
     $
20,351
  
Charge-off's    
(81
 )    
-
      
-
      
(1
 )    
-
      
(52
 )    
(353
 )    
(14
 )    
-
      
(501
 )
Recoveries    
2
      
-
      
79
      
112
      
-
      
15
      
-
      
9
      
-
      
217
  
Provision (Benefit)    
(206
 )    
83
      
(327
 )    
(190
 )    
196
      
(83
 )    
353
      
316
      
11
      
153
  
Ending balance   $
5,538
     $
4,726
     $
2,297
     $
1,003
     $
264
     $
549
     $
-
     $
5,832
     $
11
     $
20,220
  
 
 
June 30, 2017
(In thousands)   Multi-family residential   Commercial real estate   One-to-four family - mixed-use property   One-to-four family - residential   Construction loans   Small Business Administration   Taxi medallion   Commercial business and other   Unallocated   Total
                                         
Allowance for credit losses:                                                                                
Beginning balance   $
5,923
     $
4,487
     $
2,903
     $
1,015
     $
92
     $
481
     $
2,243
     $
4,492
     $
593
     $
22,229
  
Charge-off's    
(162
 )    
(4
 )    
(35
 )    
(170
 )    
-
      
(89
 )    
(54
 )    
(15
 )    
-
      
(529
 )
Recoveries    
231
      
68
      
68
      
-
      
-
      
49
      
-
      
41
      
-
      
457
  
Provision (Benefit)    
(75
 )    
137
      
(368
 )    
145
      
38
      
(135
 )    
141
      
150
      
(33
 )    
-
  
Ending balance   $
5,917
     $
4,688
     $
2,568
     $
990
     $
130
     $
306
     $
2,330
     $
4,668
     $
560
     $
22,157
  
 
The following tables show the manner in which loans were evaluated for impairment at the periods indicated:
 
June 30, 2018
(In thousands)   Multi-family residential   Commercial real estate   One-to-four family - mixed-use property   One-to-four family- residential   Co-operative apartments   Construction loans   Small Business Administration   Taxi medallion   Commercial business and other   Unallocated   Total
Financing Receivables:                                                                                        
Ending Balance   $
2,247,852
     $
1,471,894
     $
564,474
     $
187,741
     $
7,839
     $
33,826
     $
14,405
     $
6,225
     $
783,904
     $
-
     $
5,318,160
  
Ending balance: individually evaluated for impairment   $
6,482
     $
4,967
     $
5,625
     $
8,733
     $
-
     $
730
     $
49
     $
6,225
     $
16,136
     $
-
     $
48,947
  
Ending balance: collectively evaluated for impairment   $
2,241,370
     $
1,466,927
     $
558,849
     $
179,008
     $
7,839
     $
33,096
     $
14,356
     $
-
     $
767,768
     $
-
     $
5,269,213
  
                                                                                         
Allowance for credit losses:                                                                                        
Ending balance: individually evaluated for impairment   $
147
     $
-
     $
159
     $
53
     $
-
     $
-
     $
-
     $
-
     $
4
     $
-
     $
363
  
Ending balance: collectively evaluated for impairment   $
5,391
     $
4,726
     $
2,138
     $
950
     $
-
     $
264
     $
549
     $
-
     $
5,828
     $
11
     $
19,857
  
 
December 31, 2017
(In thousands)   Multi-family residential   Commercial real estate   One-to-four family - mixed-use property   One-to-four family- residential   Co-operative apartments   Construction loans   Small Business Administration   Taxi medallion   Commercial business and other   Unallocated   Total
Financing Receivables:                                                                                        
Ending Balance   $
2,273,595
     $
1,368,112
     $
564,206
     $
180,663
     $
6,895
     $
8,479
     $
18,479
     $
6,834
     $
732,973
     $
-
     $
5,160,236
  
Ending balance: individually evaluated for impairment   $
7,311
     $
9,089
     $
5,445
     $
9,686
     $
-
     $
-
     $
137
     $
6,834
     $
661
     $
-
     $
39,163
  
Ending balance: collectively evaluated for impairment   $
2,266,284
     $
1,359,023
     $
558,761
     $
170,977
     $
6,895
     $
8,479
     $
18,342
     $
-
     $
732,312
     $
-
     $
5,121,073
  
                                                                                         
Allowance for credit losses:                                                                                        
Ending balance: individually evaluated for impairment   $
205
     $
177
     $
198
     $
56
     $
-
     $
-
     $
-
     $
-
     $
6
     $
-
     $
642
  
Ending balance: collectively evaluated for impairment   $
5,618
     $
4,466
     $
2,347
     $
1,026
     $
-
     $
68
     $
669
     $
-
     $
5,515
     $
-
     $
19,709
  
 
The following table shows our recorded investment, unpaid principal balance and allocated allowance for loan losses for impaired loans at the periods indicated:
 
    June 30, 2018   December 31, 2017
    Recorded
Investment		   Unpaid
Principal
Balance		   Related
Allowance		   Recorded
Investment		   Unpaid
Principal
Balance		   Related
Allowance
    (In thousands)
With no related allowance recorded:                                                
Mortgage loans:                                                
Multi-family residential   $
4,285
     $
4,814
     $
-
     $
5,091
     $
5,539
     $
-
  
Commercial real estate    
4,967
      
4,967
      
-
      
7,103
      
7,103
      
-
  
One-to-four family mixed-use property    
4,419
      
4,676
      
-
      
4,218
      
4,556
      
-
  
One-to-four family residential    
8,326
      
9,281
      
-
      
9,272
      
10,489
      
-
  
Construction    
730
      
730
      
 
      
 
      
 
      
 
  
Non-mortgage loans:                                                
Small Business Administration    
49
      
58
      
-
      
137
      
151
      
-
  
Taxi medallion    
6,225
      
17,450
      
-
      
6,834
      
18,063
      
-
  
Commercial business and other    
15,829
      
16,198
      
-
      
313
      
682
      
-
  
                                                 
Total loans with no related allowance recorded    
44,830
      
58,174
      
-
      
32,968
      
46,583
      
-
  
                                                 
With an allowance recorded:                                                
Mortgage loans:                                                
Multi-family residential    
2,197
      
2,197
      
147
      
2,220
      
2,220
      
205
  
Commercial real estate    
-
      
-
      
-
      
1,986
      
1,986
      
177
  
One-to-four family mixed-use property    
1,206
      
1,206
      
159
      
1,227
      
1,227
      
198
  
One-to-four family residential    
407
      
407
      
53
      
414
      
414
      
56
  
Non-mortgage loans:                                                
Commercial business and other    
307
      
307
      
4
      
348
      
348
      
6
  
                                                 
Total loans with an allowance recorded    
4,117
      
4,117
      
363
      
6,195
      
6,195
      
642
  
                                                 
Total Impaired Loans:                                                
Total mortgage loans   $
26,537
     $
28,278
     $
359
     $
31,531
     $
33,534
     $
636
  
                                                 
Total non-mortgage loans   $
22,410
     $
34,013
     $
4
     $
7,632
     $
19,244
     $
6
  
 
The following table shows our average recorded investment and interest income recognized for impaired loans for the
three
months ended:
 
    June 30, 2018   June 30, 2017
    Average
Recorded
Investment		   Interest
Income
Recognized		   Average
Recorded
Investment		   Interest
Income
Recognized
    (In thousands)
With no related allowance recorded:                                
Mortgage loans:                                
Multi-family residential   $
4,431
     $
16
     $
2,730
     $
22
  
Commercial real estate    
5,847
      
52
      
6,438
      
59
  
One-to-four family mixed-use property    
4,397
      
39
      
5,560
      
41
  
One-to-four family residential    
8,382
      
10
      
10,263
      
30
  
Construction    
365
      
10
      
602
      
-
  
Non-mortgage loans:                                
Small Business Administration    
74
      
1
      
160
      
2
  
Taxi medallion    
6,421
      
86
      
4,352
      
25
  
Commercial business and other    
7,954
      
308
      
2,187
      
43
  
                                 
Total loans with no related allowance recorded    
37,871
      
522
      
32,292
      
222
  
                                 
With an allowance recorded:                                
Mortgage loans:                                
Multi-family residential    
2,203
      
30
      
2,471
      
50
  
Commercial real estate    
-
      
-
      
2,043
      
24
  
One-to-four family mixed-use property    
1,212
      
15
      
1,450
      
16
  
One-to-four family residential    
409
      
4
      
424
      
4
  
Non-mortgage loans:                                
Small Business Administration    
-
      
-
      
-
      
-
  
Taxi medallion    
-
      
-
      
14,216
      
50
  
Commercial business and other    
318
      
4
      
391
      
6
  
                                 
Total loans with an allowance recorded    
4,142
      
53
      
20,995
      
150
  
                                 
Total Impaired Loans:                                
Total mortgage loans   $
27,246
     $
176
     $
31,981
     $
246
  
                                 
Total non-mortgage loans   $
14,767
     $
399
     $
21,306
     $
126
  
 
The following table shows our average recorded investment and interest income recognized for impaired loans for the
six
months ended:
 
    June 30, 2018   June 30, 2017
    Average
Recorded
Investment		   Interest
Income
Recognized		   Average
Recorded
Investment		   Interest
Income
Recognized
    (In thousands)
With no related allowance recorded:                                
Mortgage loans:                                
Multi-family residential   $
4,651
     $
36
     $
3,040
     $
45
  
Commercial real estate    
6,266
      
126
      
5,788
      
154
  
One-to-four family mixed-use property    
4,337
      
80
      
5,851
      
78
  
One-to-four family residential    
8,678
      
25
      
10,028
      
56
  
Construction    
243
      
10
      
401
      
7
  
Non-mortgage loans:                                
Small Business Administration    
95
      
2
      
245
      
4
  
Taxi medallion    
6,559
      
168
      
3,679
      
55
  
Commercial business and other    
5,407
      
310
      
2,148
      
87
  
                                 
Total loans with no related allowance recorded    
36,236
      
757
      
31,180
      
486
  
                                 
With an allowance recorded:                                
Mortgage loans:                                
Multi-family residential    
2,208
      
59
      
2,401
      
79
  
Commercial real estate    
662
      
-
      
2,049
      
48
  
One-to-four family mixed-use property    
1,217
      
24
      
1,758
      
34
  
One-to-four family residential    
411
      
8
      
425
      
8
  
Non-mortgage loans:                                
Small Business Administration    
-
      
-
      
507
      
-
  
Taxi medallion    
-
      
-
      
14,126
      
93
  
Commercial business and other    
328
      
9
      
401
      
12
  
                                 
Total loans with an allowance recorded    
4,826
      
100
      
21,667
      
274
  
                                 
Total Impaired Loans:                                
Total mortgage loans   $
28,673
     $
368
     $
31,741
     $
509
  
                                 
Total non-mortgage loans   $
12,389
     $
489
     $
21,106
     $
251
  
 
 
In accordance with our policy and the current regulatory guidelines, we designate loans as “Special Mention,” which are considered “Criticized Loans,” and “Substandard,” “Doubtful,” or “Loss,” which are considered “Classified Loans”. If a loan does
not
fall within
one
of the previous mentioned categories then the loan would be considered “Pass.” Loans that are non-accrual are designated as Substandard, Doubtful or Loss. These loan designations are updated quarterly. We designate a loan as Substandard when a well-defined weakness is identified that
may
jeopardize the orderly liquidation of the debt. We designate a loan Doubtful when it displays the inherent weakness of a Substandard loan with the added provision that collection of the debt in full, on the basis of existing facts, is highly improbable. We designate a loan as Loss if it is deemed the debtor is incapable of repayment. The Company does
not
hold any loans designated as Loss, as loans that are designated as Loss are charged to the Allowance for Loan Losses. We designate a loan as Special Mention if the asset does
not
warrant classification within
one
of the other classifications, but does contain a potential weakness that deserves closer attention.
 
The following table sets forth the recorded investment in loans designated as Criticized or Classified at the periods indicated:
 
    June 30, 2018
(In thousands)   Special Mention   Substandard   Doubtful   Loss   Total
                     
Multi-family residential   $
3,432
     $
3,994
     $
-
     $
-
     $
7,426
  
Commercial real estate    
4,475
      
4,206
      
-
      
-
      
8,681
  
One-to-four family - mixed-use property    
1,223
      
3,899
      
-
      
-
      
5,122
  
One-to-four family - residential    
883
      
7,597
      
-
      
-
      
8,480
  
Co-operative apartments    
-
      
575
      
-
      
-
      
575
  
Construction loans    
-
      
730
      
-
      
-
      
730
  
Small Business Administration    
879
      
45
      
-
      
-
      
924
  
Taxi medallion    
-
      
6,225
      
-
      
-
      
6,225
  
Commercial business and other    
10,927
      
16,852
      
-
      
-
      
27,779
  
Total loans   $
21,819
     $
44,123
     $
-
     $
-
     $
65,942
  
 
    December 31, 2017
(In thousands)   Special Mention   Substandard   Doubtful   Loss   Total
                     
Multi-family residential   $
6,389
     $
4,793
     $
-
     $
-
     $
11,182
  
Commercial real estate    
2,020
      
8,871
      
-
      
-
      
10,891
  
One-to-four family - mixed-use property    
2,835
      
3,691
      
-
      
-
      
6,526
  
One-to-four family - residential    
2,076
      
9,115
      
-
      
-
      
11,191
  
Small Business Administration
 
    
548
      
108
      
-
      
-
      
656
  
Taxi medallion    
-
      
6,834
      
-
      
-
      
6,834
  
Commercial business and other    
14,859
      
545
      
-
      
-
      
15,404
  
Total loans   $
28,727
     $
33,957
     $
-
     $
-
     $
62,684
  
 
Commitments to extend credit (principally real estate mortgage loans) and lines of credit (principally home equity lines of credit and business lines of credit) amounted to
$25.2
million and
$300.8
million, respectively, at
June 30, 2018.