LOANS (Tables)

12 Months Ended

Dec. 31, 2019

Net loans consist of the following as of December 31, 2019 and 2018 (dollars in thousands):


	December 31, 2019		December 31, 2018
Real estate
Commercial	$	1,668,236	$	949,778
Construction		30,827		42,540
Multi-family		375,611		307,126
One-to-four family		82,670		79,423
Total real estate loans		2,157,344		1,378,867

Commercial and industrial		448,619		381,692
Consumer		71,956		106,790
Total loans		2,677,919		1,867,349
Deferred fees		(4,970)		(2,133)
Loans, net of deferred fees and unamortized costs		2,672,949		1,865,216
Allowance for loan losses		(26,272)		(18,942)
Balance at the end of the period	$	2,646,677	$	1,846,274

Schedule of changes in the allowance for loan losses by portfolio segment

The following tables represent the changes in the allowance for loan losses for the years ended December 31, 2019 and 2018, by portfolio segment. The portfolio segments represent the categories that the Bank uses to determine its allowance for loan losses (dollars in thousands):


	Commercial		Commercial						One-to-four
Year ended December 31, 2019	Real Estate		& Industrial		Construction		Multi-family		Family		Consumer		Total
Allowance for loan losses:
Beginning balance	$	9,037	$	6,257	$	625	$	2,047	$	228	$	748	$	18,942
Provision (credit) for loan losses		6,280		(2,678)		(214)		406		39		390		4,223
Loans charged-off		—		(798)		—		—		—		(389)		(1,187)
Recoveries		—		4,289		—		—		—		5		4,294
Total ending allowance balance	$	15,317	$	7,070	$	411	$	2,453	$	267	$	754	$	26,272


	Commercial		Commercial						One-to-four
Year ended December 31, 2018	Real Estate		& Industrial		Construction		Multi-family		Family		Consumer		Total
Allowance for loan losses:
Beginning balance	$	7,136	$	5,578	$	519	$	1,156	$	138	$	360	$	14,887
Provision (credit) for loan losses		1,978		(717)		106		891		90		790		3,138
Loans charged-off		(77)		(304)		—		—		—		(402)		(783)
Recoveries		—		1,700		—		—		—		—		1,700
Total ending allowance balance	$	9,037	$	6,257	$	625	$	2,047	$	228	$	748	$	18,942

Schedule of allowance for loan losses and the recorded investment in loans by portfolio segment

The following tables present the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment based on impairment method as of December 31, 2019 and 2018 (dollars in thousands):


	Commercial		Commercial						One-to-four
At December 31, 2019	Real Estate		& Industrial		Construction		Multi-family		Family		Consumer		Total
Allowance for loan losses:
Individually evaluated for impairment	$	—	$	805	$	—	$	—	$	64	$	311	$	1,180
Collectively evaluated for impairment		15,317		6,265		411		2,453		203		443		25,092
Total ending allowance balance	$	15,317	$	7,070	$	411	$	2,453	$	267	$	754	$	26,272
Loans:
Individually evaluated for impairment	$	367	$	1,047	$	—	$	—	$	3,384	$	728	$	5,526
Collectively evaluated for impairment		1,667,869		447,572		30,827		375,611		79,286		71,228		2,672,393
Total ending loan balance	$	1,668,236	$	448,619	$	30,827	$	375,611	$	82,670	$	71,956	$	2,677,919


	Commercial		Commercial						One-to-four
At December 31, 2018	Real Estate		& Industrial		Construction		Multi-family		Family		Consumer		Total
Allowance for loan losses:
Individually evaluated for impairment	$	—	$	—	$	—	$	—	$	—	$	44	$	44
Collectively evaluated for impairment		9,037		6,257		625		2,047		228		704		18,898
Total ending allowance balance	$	9,037	$	6,257	$	625	$	2,047	$	228	$	748	$	18,942
Loans:
Individually evaluated for impairment	$	383	$	—	$	—	$	—	$	1,078	$	89	$	1,550
Collectively evaluated for impairment		949,395		381,692		42,540		307,126		78,345		106,701		1,865,799
Total ending loan balance	$	949,778	$	381,692	$	42,540	$	307,126	$	79,423	$	106,790	$	1,867,349

Schedule of loans determined to be impaired by class of loans

The following tables present information related to loans determined to be impaired by class of loans as of and for the years ended December 31, 2019 and 2018 (dollars in thousands):


	Unpaid Principal				Allowance for Loan		Average Recorded		Interest Income
At December 31, 2019	Balance		Recorded Investment		Losses Allocated		Investment		Recognized
With an allowance recorded:
One-to-four family	$	633	$	503	$	64	$	411	$	19
Consumer		731		728		311		311		13
C&I		1,047		1,047		805		419		—
Total	$	2,411	$	2,278	$	1,180	$	1,141	$	32

Without an allowance recorded:
One-to-four family		3,028	$	2,881	$	—	$	2,063	$	124
Commercial real estate		367		367		—		375		15
Total	$	3,395	$	3,248	$	—	$	2,438	$	139


	Unpaid Principal				Allowance for Loan		Average Recorded		Interest Income
At December 31, 2018	Balance		Recorded Investment		Losses Allocated		Investment		Recognized
With an allowance recorded:
One-to-four family		—		—		—		111		—
Consumer		105		89		44		157		7
Total	$	105	$	89	$	44	$	268	$	7

Without an allowance recorded:
One-to-four family		1,355		1,078		—		1,477		59
Commercial real estate		385		383		—		1,471		87
Total	$	1,740	$	1,461	$	—	$	2,948	$	146

Schedule of recorded investment in non-accrual loans, loans past due over 90 days and still accruing by class of loans

The following tables present the recorded investment in non-accrual loans, loans past due over 90 days and still accruing by class of loans as of December 31, 2019 and 2018 (dollars in thousands):


At December 31, 2019	Nonaccrual		Loans Past Due Over 90 Days Still Accruing
Commercial & industrial		1,047		408
One-to-four family		2,345		—
Consumer		693		—
Total	$	4,085	$	408


At December 31, 2018		Nonaccrual		Loans Past Due Over 90 Days Still Accruing
Commercial & industrial		—		239
Consumer		50		—
Total	$	50	$	239

Schedule of aging of the recorded investment in past due loans by class of loans

The following table presents the aging of the recorded investment in past due loans by class of loans as of December 31, 2019 and 2018 (dollars in thousands):


					Greater
	30-59		60-89		than 90		Total past		Current
At December 31, 2019	Days		Days		days		due		loans		Total
Commercial real estate	$	—	$	—	$	—	$	—	$	1,668,236	$	1,668,236
Commercial & industrial		346		—		1,455		1,801		446,818		448,619
Construction		—		—		—		—		30,827		30,827
Multi-family		—		—		—		—		375,611		375,611
One-to-four family		—		—		—		—		82,670		82,670
Consumer		636		14		693		1,343		70,613		71,956
Total	$	982	$	14	$	2,148	$	3,144	$	2,674,775	$	2,677,919


					Greater
	30-59		60-89		than 90		Total past		Current
At December 31, 2018	Days		Days		days		due		loans		Total
Commercial real estate	$	—	$	—	$	—	$	—	$	949,778	$	949,778
Commercial & industrial		1,670		95		239		2,004		379,688		381,692
Construction		—		—		—		—		42,540		42,540
Multi-family		—		—		—		—		307,126		307,126
One-to-four family		870		—		—		870		78,553		79,423
Consumer		119		43		50		212		106,578		106,790
Total	$	2,659	$	138	$	289	$	3,086	$	1,864,263	$	1,867,349

Schedule of recorded investment in TDRs by class of loans

The following tables present the recorded investment in TDRs by class of loans as of December 31, 2019 and 2018 (dollars in thousands):


At December 31, 2019	Troubled Debt Restructuring
Commercial real estate	$	367
One-to-four family		1,039
Consumer		35
Total	$	1,441


At December 31, 2018	Troubled Debt Restructuring
Commercial real estate	$	383
One-to-four family		1,078
Consumer		39
Total	$	1,500

Schedule of risk category of loans by class of loans

Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass-rated loans. Based on the most recent analysis performed, the risk category of loans by class of loans is as follows (dollars in thousands):


			Special
At December 31, 2019	Pass		Mention		Substandard		Doubtful			Total
Commercial real estate	$	1,667,869	$	367	$	—	$	—	$	1,668,236
Commercial & industrial		446,612		—		960		1,047		448,619
Construction		30,827		—		—		—		30,827
Multi-family		375,611		—		—		—		375,611
Total	$	2,520,919	$	367	$	960	$	1,047	$	2,523,293


			Special
At December 31, 2018	Pass		Mention		Substandard		Doubtful			Total
Commercial real estate	$	949,395	$	383	$	—	$	—	$	949,778
Commercial & industrial		381,692		—		—		—		381,692
Construction		41,044		1,496		—		—		42,540
Multi-family		307,126		—		—		—		307,126
Total	$	1,679,257	$	1,879	$	—	$	—	$	1,681,136