Loans Receivable (Tables)

12 Months Ended

Dec. 31, 2019

Schedule of Accounts, Notes, Loans and Financing Receivable

Loans receivable net of loans in process (“LIP”) at December 31, 2019, and 2018 are summarized as follows:



	December 31,
	2019		2018
	(In thousands)
One-to-four family residential:
Permanent owner occupied	$	210,898	$	194,141
Permanent non-owner occupied	161,630		147,825
	372,528		341,966
Multifamily:
Permanent	172,915		169,355
	172,915		169,355
Commercial real estate:
Permanent	395,152		373,798
	395,152		373,798
Construction/land: ⁽¹⁾
One-to-four family residential	44,491		51,747
Multifamily	40,954		40,502
Commercial	19,550		9,976
Land	8,670		6,629
	113,665		108,854

Business	37,779		30,486
Consumer	30,199		12,970
Total loans	1,122,238		1,037,429
Less:
Deferred loan fees, net	558		1,178
Allowance for loan and lease losses ("ALLL")	13,218		13,347
Loans receivable, net	$	1,108,462	$	1,022,904

____________

⁽¹⁾

Included in the construction/land category are “rollover” loans, which are loans that will convert upon completion of the construction period to permanent loans. At that time, the loans will be classified according to the underlying collateral. In addition, raw land or buildable lots, where the Company does not intend to finance the construction are included in the construction/land category. At December 31, 2019, we classified $38.6 million of multifamily loans, $8.7 million of commercial land loans, $3.5 million of one-to-four family residential and $18.3 million of commercial real estate loans as construction/land loans to facilitate the review of the composition of our loan portfolio. At December 31, 2018, $25.2 million of multifamily loans, $6.2 million of commercial land loans, $602,000 one-to-four family residential and $10.0 million of commercial real estate loans were reclassified to the construction/land category.

Accrued interest receivable consisted of the following at December 31, 2019 and 2018:



	December 31,
	2019		2018
	(In thousands)
Loans receivable	$	3,518	$	3,366
Investments	603		699
Interest-earning deposits	17		3
	$	4,138	$	4,068

Financing Receivables, Summary of Loans By Maturity and Interest Rate Type

The Company originates both adjustable and fixed interest rate loans. The composition of loans receivable at December 31, 2019, and 2018, was as follows:



December 31, 2019
Fixed Rate			Adjustable Rate
Term to Maturity	Principal Balance		Term to Rate Adjustment	Principal Balance
(In thousands)
Due within one year	$	29,997	Due within one year	$	297,221
After one year through three years	63,055		After one year through three years	102,248
After three years through five years	68,659		After three years through five years	137,487
After five years through ten years	126,762		After five years through ten years	86,404
Thereafter	207,055		Thereafter	3,350
	$	495,528		$	626,710



December 31, 2018
Fixed Rate			Adjustable Rate
Term to Maturity	Principal Balance		Term to Rate Adjustment	Principal Balance
(In thousands)
Due within one year	$	44,445	Due within one year	$	248,739
After one year through three years	53,076		After one year through three years	98,652
After three years through five years	56,194		After three years through five years	105,929
After five years through ten years	125,884		After five years through ten years	112,449
Thereafter	192,061		Thereafter	—
	$	471,660		$	565,769

Schedule of Allowance for Loan and Lease Losses, Roll Forward

The following tables summarize changes in the ALLL and loan portfolio by type of loan and reserve method for the periods indicated.



	At or For the Year Ended December 31, 2019
	One-to-Four Family Residential			Multifamily			Commercial Real Estate			Construction/ Land			Business		Consumer		Total
ALLL:	(In thousands)
Beginning balance	$	3,387		$	1,680		$	4,777		$	2,331		$	936	$	236	$	13,347
Charge-offs	—			—			—			—			—		—		—
Recoveries	73			45			—			—			—		53		171
(Recapture) provision	(426		)	(118		)	(218		)	(109		)	204		367		(300		)
Ending balance	$	3,034		$	1,607		$	4,559		$	2,222		$	1,140	$	656	$	13,218

General reserve	$	3,003		$	1,607		$	4,559		$	2,222		$	1,140	$	656	$	13,187
Specific reserve	31			—			—			—			—		—		31

Loans:
Total Loans	$	372,528		$	172,915		$	395,152		$	113,665		$	37,779	$	30,199	$	1,122,238
Loans collectively evaluated for impairment ⁽¹⁾	$	368,453		170,810			393,886			101,141			37,779		30,199		1,102,268
Loans individually evaluated for impairment ⁽²⁾	4,075			2,105			1,266			12,524			—		—		19,970

____________

⁽¹⁾ Loans collectively evaluated for general reserves.

⁽²⁾ Loans individually evaluated for specific reserves.



	At or For the Year Ended December 31, 2018
	One-to-Four Family Residential			Multifamily			Commercial Real Estate		Construction/ Land			Business		Consumer			Total
ALLL:	(In thousands)
Beginning balance	$	2,837		$	1,820		$	4,418	$	2,816		$	694	$	297		$	12,882
Charge-offs	—			—			—		—			—		—			—
Recoveries	4,279			—			14		171			—		1			4,465
(Recapture) provision	(3,729		)	(140		)	345		(656		)	242		(62		)	(4,000		)
Ending balance	$	3,387		$	1,680		$	4,777	$	2,331		$	936	$	236		$	13,347

General reserve	$	3,328		$	1,680		$	4,774	$	2,331		$	936	$	236		$	13,285
Specific reserve	59			—			3		—			—		—			62

Loans:
Total Loans	$	341,966		$	169,355		$	373,798	$	108,854		$	30,486	$	12,970		$	1,037,429
Loans collectively evaluated for impairment ⁽¹⁾	334,644			169,355			371,058		108,854			30,486		12,883			1,027,280
Loans individually evaluated for impairment ⁽²⁾	7,322			—			2,740		—			—		87			10,149

_____________

⁽¹⁾ Loans collectively evaluated for general reserves.

⁽²⁾ Loans individually evaluated for specific reserves.

Financing Receivables, Aging of loans

The following tables represent a summary at December 31, 2019, and 2018, of the aging of loans by type:



	Loans Past Due as of December 31, 2019
	30-59 Days		60-89 Days		90 Days and Greater		Total		Current		Total Loans ⁽¹⁾
	(In thousands)
Real estate:
One-to-four family residential:
Owner occupied	$	79	$	—	$	—	$	79	$	210,819	$	210,898
Non-owner occupied	—		—		—		—		161,630		161,630
Multifamily	2,105		—		—		2,105		170,810		172,915
Commercial real estate	—		—		—		—		395,152		395,152
Construction/land	—		—		—		—		113,665		113,665
Total real estate	2,184		—		—		2,184		1,052,076		1,054,260
Business	—		—		—		—		37,779		37,779
Consumer	—		—		—		—		30,199		30,199
Total	$	2,184	$	—	$	—	$	2,184	$	1,120,054	$	1,122,238

^{_________________________}

⁽¹⁾ There were no loans 90 days past due and still accruing interest at December 31, 2019.



	Loans Past Due as of December 31, 2018
	30-59 Days		60-89 Days		90 Days and Greater		Total		Current		Total Loans ⁽¹⁾
	(In thousands)
Real estate:
One-to-four family residential:
Owner occupied	$	223	$	—	$	272	$	495	$	193,646	$	194,141
Non-owner occupied	—		—		—		—		147,825		147,825
Multifamily	—		—		—		—		169,355		169,355
Commercial real estate	—		—		326		326		373,472		373,798
Construction/land	—		—		—		—		108,854		108,854
Total real estate	223		—		598		821		993,152		993,973
Business	—		—		—		—		30,486		30,486
Consumer	—		—		—		—		12,970		12,970
Total	$	223	$	—	$	598	$	821	$	1,036,608	$	1,037,429

^{________________________}

⁽¹⁾ There were no loans 90 days past due and still accruing interest at December 31, 2018.

Schedule of non-accrual loans

The following table is a summary of nonaccrual loans at December 31, 2019, and 2018, by type of loan:



	December 31,
	2019		2018
	(In thousands)
One-to-four family residential	$	95	$	382
Commercial real estate	—		326
Consumer	—		44
Total nonaccrual loans	$	95	$	752

Financing Receivables, Summary of loans by type and payment activity

The following tables summarize the loan portfolio at December 31, 2019, and 2018, by type and payment activity:



	December 31, 2019
	One-to-Four Family Residential		Multifamily		Commercial Real Estate		Construction / Land		Business		Consumer		Total
	(In thousands)
Performing ⁽¹⁾	$	372,433	$	172,915	$	395,152	$	113,665	$	37,779	$	30,199	$	1,122,143
Nonperforming ⁽²⁾	95		—		—		—		—		—		95
Total	$	372,528	$	172,915	$	395,152	$	113,665	$	37,779	$	30,199	$	1,122,238

____________

⁽¹⁾ There were $210.8 million of owner-occupied one-to-four family residential loans and $161.6 million of non-owner occupied one to-four family residential loans classified as performing.

⁽²⁾ There were $95,000 of owner-occupied one-to-four family residential loans and no non-owner occupied one-to-four family residential loans classified as nonperforming.



	December 31, 2018
	One-to-Four Family Residential		Multifamily		Commercial Real Estate		Construction/ Land		Business		Consumer		Total
	(In thousands)
Performing ⁽¹⁾	$	341,584	$	169,355	$	373,472	$	108,854	$	30,486	$	12,926	$	1,036,677
Nonperforming ⁽²⁾	382		—		326		—		—		44		752
Total	$	341,966	$	169,355	$	373,798	$	108,854	$	30,486	$	12,970	$	1,037,429

_____________

⁽¹⁾ There were $193.8 million of owner-occupied one-to-four family residential loans and $147.8 million of non-owner occupied one-to-four family residential loans classified as performing.

⁽²⁾ There were $382,000 of owner-occupied one-to-four family residential loans and no non-owner occupied one-to-four family residential loans classified as nonperforming.

Schedule of Impaired Financing Receivables, Average Recorded Investment and Interest Income

The following tables present a summary of loans individually evaluated for impairment at December 31, 2019, and 2018, by the type of loan:



	At December 31, 2019
	Recorded Investment ⁽¹⁾		Unpaid Principal Balance ⁽²⁾		Related Allowance
	(In thousands)
Loans with no related allowance:
One-to-four family residential:
Owner occupied	$	437	$	582	$	—
Non-owner occupied	1,486		1,486		—
Multifamily	2,105		2,105		—
Commercial real estate	1,266		1,266		—
Construction/land	12,524		15,650		—
Total	17,818		21,089		—
Loans with an allowance:
One-to-four family residential:
Owner occupied	505		552		13
Non-owner occupied	1,647		1,647		18
Total	2,152		2,199		31
Total impaired loans:
One-to-four family residential:
Owner occupied	942		1,134		13
Non-owner occupied	3,133		3,133		18
Multifamily	2,105		2,105		—
Commercial real estate	1,266		1,266		—
Construction/land	12,524		15,650		—
Total	$	19,970	$	23,288	$	31

_________________

⁽¹⁾ Represents the loan balance less charge-offs.

⁽²⁾ Contractual loan principal balance.



	At December 31, 2018
	Recorded Investment ⁽¹⁾		Unpaid Principal Balance ⁽²⁾		Related Allowance
	(In thousands)
Loans with no related allowance:
One-to-four family residential:
Owner occupied	$	1,308	$	1,477	$	—
Non-owner occupied	2,375		2,375		—
Commercial real estate	2,499		2,499		—
Consumer	87		141		—
Total	6,269		6,492		—
Loans with an allowance:
One-to-four family residential:
Owner occupied	513		560		22
Non-owner occupied	3,126		3,148		37
Commercial real estate	241		241		3
Total	3,880		3,949		62
Total impaired loans:
One-to-four family residential:
Owner occupied	1,821		2,037		22
Non-owner occupied	5,501		5,523		37
Commercial real estate	2,740		2,740		3
Consumer	87		141		—
Total	$	10,149	$	10,441	$	62

_____________

⁽¹⁾ Represents the loan balance less charge-offs.

⁽²⁾ Contractual loan principal balance.

The following table presents a summary of the average recorded investment in impaired loans, and interest income recognized on impaired loans for the years ended December 31, 2019 and 2018, by the type of loan:



	Year Ended December 31,
	2019				2018
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
	(In thousands)
Loans with no related allowance:
One-to-four family residential:
Owner occupied	$	852	$	36	$	1,207	$	82
Non-owner occupied	1,833		94		5,583		146
Multifamily	421		111		900		—
Commercial real estate	2,038		90		1,885		172
Construction/land	7,143		834		—		—
Consumer	43		—		91		8
Total	12,330		1,165		9,666		408

Loans with an allowance:
One-to-four family residential:
Owner occupied	509		34		518		35
Non-owner occupied	2,092		93		3,211		162
Commercial real estate	48		—		1,046		27
Total	2,649		127		4,775		224

Total impaired loans:
One-to-four family residential:
Owner occupied	1,361		70		1,725		117
Non-owner occupied	3,925		187		8,794		308
Multifamily	421		111		900		—
Commercial real estate	2,086		90		2,931		199
Construction/land	7,143		834		—		—
Consumer	43		—		91		8
Total	$	14,979	$	1,292	$	14,441	$	632

Schedule of Non-performing assets and troubled debt restructured loans

The following is a summary of information pertaining to TDRs:



	December 31,
	2019		2018
	(In thousands)
Performing TDRs	$	5,246	$	9,399
Nonaccrual TDRs	—		—
Total TDRs	$	5,246	$	9,399

Troubled Debt Restructurings on Financing Receivables

The following table presents for the periods indicated TDRs and their recorded investment prior to the modification and after the modification:



	Year Ended December 31,
	2019					2018
	Number of Loans	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment		Number of Loans	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
	(Dollars in thousands)
TDRs that occurred during the period:
One-to-four family residential:
Principal and interest with interest rate concession	7	$	1,360	$	1,360	1	$	563	$	563
Advancement of maturity date	3	694		694		—	—		—
Commercial real estate:
Advancement of maturity date	1	855		855		—	—		—
Total	11	$	2,909	$	2,909	1	$	563	$	563

Schedule of Loans to Related Parties

The change in the aggregate dollar amount of these loans outstanding to related parties is summarized as follows:



	Year Ended December 31,
	2019		2018
	(In thousands)
Balance at beginning of year	$	—	$	9
Repayments	—		(9		)
Balance at end of year	$	—	$	—