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LOANS (Tables)
 9 Months Ended
Sep. 30, 2020
Receivables [Abstract]  
Schedule of Loans Receivable
Loans consist of the following:
(Dollars in thousands)September 30,
2020		December 31,
2019
Permanent mortgages on:
Multifamily residential$4,086,059 $3,985,981 
Single family residential1,839,156 2,021,320 
Commercial real estate203,920 203,134 
Construction and land loans19,266 20,442 
Non-Mortgage (‘‘NM’’) loans100 100 
Total6,148,501 6,230,977 
Allowance for loan losses(46,063)(36,001)
Loans held for investment, net$6,102,438 $6,194,976 
Schedule Allowance for Loan Losses
The following table summarizes activity in and the allocation of the allowance for loan losses by portfolio segment:
(Dollars in thousands)Multifamily ResidentialSingle Family ResidentialCommercial Real EstateLand, Construction and NMTotal
Three months ended September 30, 2020
Allowance for loan losses:
Beginning balance allocated to portfolio segments$30,837 $11,628 $3,305 $215 $45,985 
Provision for (reversal of) loan losses836 (1,014)247 (69)— 
Charge-offs— — — — — 
Recoveries— 3 — 75 78 
Ending balance allocated to portfolio segments$31,673 $10,617 $3,552 $221 $46,063 
Three months ended September 30, 2019
Allowance for loan losses:
Beginning balance allocated to portfolio segments$22,745 $9,439 $2,412 $625 $35,221 
Provision for (reversal of) loan losses408 (415)115 (608)(500)
Charge-offs— — — — — 
Recoveries— 2 — 200 202 
Ending balance allocated to portfolio segments$23,153 $9,026 $2,527 $217 $34,923 
Nine months ended September 30, 2020
Allowance for loan losses:
Beginning balance allocated to portfolio segments$23,372 $10,076 $2,341 $212 $36,001 
Provision for (reversal of) loan losses8,301 1,254 1,211 (216)10,550 
Charge-offs— (722)— — (722)
Recoveries— 9 — 225 234 
Ending balance allocated to portfolio segments$31,673 $10,617 $3,552 $221 $46,063 
Nine months ended September 30, 2019
Allowance for loan losses:
Beginning balance allocated to portfolio segments$21,326 $10,125 $2,441 $422 $34,314 
Provision for (reversal of) loan losses1,827 (1,108)86 (555)250 
Charge-offs— — — — — 
Recoveries— 9 — 350 359 
Ending balance allocated to portfolio segments$23,153 $9,026 $2,527 $217 $34,923 
The following table summarizes the allocation of the allowance for loan losses by impairment methodology:
(Dollars in thousands)Multifamily ResidentialSingle Family ResidentialCommercial Real EstateLand, Construction and NMTotal
As of September 30, 2020:
Ending allowance balance allocated to:
Loans individually evaluated for impairment$— $25 $— $— $25 
Loans collectively evaluated for impairment31,673 10,592 3,552 221 46,038 
Ending balance$31,673 $10,617 $3,552 $221 $46,063 
Loans:
Ending balance: individually evaluated for impairment$528 $5,575 $— $— $6,103 
Ending balance: collectively evaluated for impairment4,085,531 1,833,581 203,920 19,366 6,142,398 
Ending balance$4,086,059 $1,839,156 $203,920 $19,366 $6,148,501 
As of December 31, 2019:
Ending allowance balance allocated to:
Loans individually evaluated for impairment$— $815 $— $— $815 
Loans collectively evaluated for impairment23,372 9,261 2,341 212 35,186 
Ending balance$23,372 $10,076 $2,341 $212 $36,001 
Loans:
Ending balance: individually evaluated for impairment$541 $7,097 $— $— $7,638 
Ending balance: collectively evaluated for impairment3,985,440 2,014,223 203,134 20,542 6,223,339 
Ending balance$3,985,981 $2,021,320 $203,134 $20,542 $6,230,977 
Schedule of Loan Portfolio by Internal Risk Indicators
The following table summarizes the loan portfolio allocated by management’s internal risk ratings at September 30, 2020 and December 31, 2019. The increase in Watch risk rated loans during the nine months ended September 30, 2020 was attributable to the Company's loan modification program in connection with the COVID-19 pandemic. Watch risk rated loans modified as a result of COVID-19 may remain in the Watch category longer than the typical 90 to 120 day period due to the unusual nature of the loan accommodations provided during the pandemic. See Note 2 for further discussion regarding COVID-19.
(Dollars in thousands)Multifamily ResidentialSingle Family ResidentialCommercial Real EstateLand, Construction and NMTotal
As of September 30, 2020:
Grade:
Pass$3,795,037 $1,650,400 $137,824 $19,366 $5,602,627 
Watch263,250 172,167 62,470 — 497,887 
Special mention19,155 11,522 3,626 — 34,303 
Substandard8,617 5,067 — — 13,684 
Doubtful— — — — — 
Total$4,086,059 $1,839,156 $203,920 $19,366 $6,148,501 
As of December 31, 2019:
Grade:
Pass$3,917,264 $1,980,845 $200,371 $20,542 $6,119,022 
Watch47,309 16,432 2,763 — 66,504 
Special mention19,708 13,635 — — 33,343 
Substandard1,700 8,808 — — 10,508 
Doubtful— 1,600 — — 1,600 
Total$3,985,981 $2,021,320 $203,134 $20,542 $6,230,977 
Schedule or Past Due Loans Receivable
The following table summarizes an aging analysis of the loan portfolio by the time past due at September 30, 2020 and December 31, 2019:
(Dollars in thousands)30 Days60 Days90+ DaysNon-accrualCurrentTotal
As of September 30, 2020:
Loans:
Multifamily residential$— $— $— $528 $4,085,531 $4,086,059 
Single family residential2,473 — — 4,303 1,832,380 1,839,156 
Commercial real estate— — — — 203,920 203,920 
Land, construction and NM— — — — 19,366 19,366 
Total$2,473 $— $— $4,831 $6,141,197 $6,148,501 
As of December 31, 2019:
Loans:
Multifamily residential$1,411 $— $— $541 $3,984,029 $3,985,981 
Single family residential4,037 690 — 5,792 2,010,801 2,021,320 
Commercial real estate— — — — 203,134 203,134 
Land, construction and NM— — — — 20,542 20,542 
Total$5,448 $690 $— $6,333 $6,218,506 $6,230,977 
Schedule of Impaired Loans Receivables
The following table summarizes information related to impaired loans at September 30, 2020 and December 31, 2019:
As of September 30, 2020As of December 31, 2019
(Dollars in thousands)Recorded InvestmentUnpaid Principal BalanceRelated AllowanceRecorded InvestmentUnpaid Principal BalanceRelated Allowance
With no related allowance recorded:
Multifamily residential$528 $605 $— $541 $618 $— 
Single family residential4,689 5,723 — 4,588 4,915 — 
5,217 6,328 — 5,129 5,533 — 
With an allowance recorded:
Single family residential886 882 25 2,509 2,484 815 
886 882 25 2,509 2,484 815 
Total:
Multifamily residential528 605 — 541 618 — 
Single family residential5,575 6,605 25 7,097 7,399 815 
$6,103 $7,210 $25 $7,638 $8,017 $815 
The following tables summarize information related to impaired loans for the three and nine months ended September 30, 2020 and 2019:
Three Months Ended September 30,
20202019
(Dollars in thousands)Average Recorded InvestmentInterest IncomeCash Basis InterestAverage Recorded InvestmentInterest IncomeCash Basis Interest
With no related allowance recorded:
Multifamily residential$530 $8 $8 $7,121 $9 $9 
Single family residential4,724 18 14 7,397 48 18 
5,254 26 22 14,518 57 27 
With an allowance recorded:
Single family residential890 10 — 919 12 — 
890 10 — 919 12 — 
Total:
Multifamily residential530 8 8 7,121 9 9 
Single family residential5,614 28 14 8,316 60 18 
$6,144 $36 $22 $15,437 $69 $27 
Nine Months Ended September 30,
20202019
(Dollars in thousands)Average Recorded InvestmentInterest IncomeCash Basis Interest Average Recorded InvestmentInterest IncomeCash Basis Interest
With no related allowance recorded:
Multifamily residential$535 $25 $25 $3,182 $21 $21 
Single family residential4,757 62 48 5,408 143 43 
5,292 87 73 8,590 164 64 
With an allowance recorded:
Single family residential1,377 30 — 1,145 36 — 
1,377 30 — 1,145 36 — 
Total:
Multifamily residential535 25 25 3,182 21 21 
Single family residential6,134 92 48 6,553 179 43 
$6,669 $117 $73 $9,735 $200 $64 
Schedule of Troubled Debt Restructurings
The following table summarizes the recorded investment related to TDRs at September 30, 2020 and December 31, 2019:
(Dollars in thousands)September 30,
2020		December 31,
2019
Troubled debt restructurings:
Single family residential$3,937 $1,305 
The following table provides a detail of these modifications:
(Dollars in thousands)Number of ContractsPre-Modification Outstanding Recorded InvestmentPost-Modification Outstanding Recorded Investment
Troubled debt restructurings:
Single family residential2$2,672 $2,672