LOANS RECEIVABLE

6 Months Ended

Sep. 30, 2021

6. LOANS RECEIVABLE

Loans receivable are reported net of deferred loan fees. Deferred loan fees at September 30, 2021 and March 31, 2021, totaled $5.3 million and $6.6 million, respectively, of which $1.2 million and $2.7 million, respectively, were related to the SBA Paycheck Protection Program (“PPP”) loans. Loans receivable are also reported net of discounts and premiums totaling $562,000 and $1.6 million, respectively, as of September 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):


	September 30,		March 31,
	2021		2021
Commercial and construction
Commercial business ⁽¹⁾	$	206,709	$	265,145
Commercial real estate		567,043		543,467
Land		15,925		14,040
Multi-family		40,455		45,014
Real estate construction		13,621		16,990
Total commercial and construction		843,753		884,656

Consumer
Real estate one-to-four family		69,079		56,405
Other installment		1,700		2,174
Total consumer		70,779		58,579

Total loans		914,532		943,235

Less: Allowance for loan losses		16,500		19,178
Loans receivable, net	$	898,032	$	924,057

(1)SBA PPP loans totaled $32.7 million and $93.4 million at September 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 September 30, 2021, loans carried at $478.0 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 September 30, 2021 and March 31, 2021, the Bank had no loans to any one borrower in excess of the regulatory limit.