LOANS RECEIVABLE

3 Months Ended

Jun. 30, 2021

LOANS RECEIVABLE

LOANS RECEIVABLE

6.      LOANS RECEIVABLE

Loans receivable are reported net of deferred loan fees. Deferred loan fees at June 30, 2021 and March 31, 2021, respectively, totaled $5.9 million and $6.6 million of which $2.1 million and $2.7 million, respectively, were related to SBA Paycheck Protection Program (“PPP”) loans. Loans receivable are also reported net of discounts and premiums totaling $651,000 and $854,000, respectively, as of June 30, 2021, compared to $722,000 and $956,000, respectively, as of March 31, 2021. Loans receivable, excluding loans held for sale, consisted of the following at the dates indicated (in thousands):

	June 30,		March 31,
	2021		2021
Commercial and construction
Commercial business (1)	$	216,128	$	265,145
Commercial real estate		548,947		543,467
Land		14,922		14,040
Multi-family		44,804		45,014
Real estate construction		11,386		16,990
Total commercial and construction		836,187		884,656
Consumer
Real estate one-to-four family		51,480		56,405
Other installment		1,812		2,174
Total consumer		53,292		58,579
Total loans		889,479		943,235
Less: Allowance for loan losses		17,590		19,178
Loans receivable, net	$	871,889	$	924,057

(1)SBA PPP loans totaled $55.5 million and $93.4 million at June 30, 2021 and March 31, 2021, respectively.

The Company considers its loan portfolio to have very little exposure to sub-prime mortgage loans since the Company has not historically engaged in this type of lending. At June 30, 2021, loans carried at $485.5 million were pledged as collateral to the Federal Home Loan Bank of Des Moines (“FHLB”) and Federal Reserve Bank of San Francisco (“FRB”) pursuant to borrowing agreements.

Substantially all of the Bank’s business activity is with customers located in the states of Washington and Oregon. Loans and extensions of credit outstanding at one time to one borrower are generally limited by federal regulation to 15% of the Bank’s shareholders’ equity, excluding accumulated other comprehensive income (loss). As of June 30, 2021 and March 31, 2021, the Bank had no loans to any one borrower in excess of the regulatory limit.