Loans Receivable and Related Allowance for Loan Losses (Tables)

6 Months Ended

Jun. 30, 2020

Loans Receivable and Related Allowance for Loan Losses

Schedule of loans receivable

The following table summarizes the primary segments of the loan portfolio by the amounts collectively evaluated for impairment and the amounts individually evaluated for impairment, and the related allowance for loan losses, as of June 30, 2020 and December 31, 2019 (dollars in thousands):

	Real Estate Loans
	One-to-four-		Commercial		Home
	family		Real Estate		Equity Loans
	Residential and		and		and Lines		Commercial		Other
	Construction		Construction		of Credit		Business		Loans		Total
June 30, 2020:
Collectively evaluated for impairment	$	212,447	$	340,403	$	103,699	$	88,365	$	541	$	745,455
Individually evaluated for impairment		—		3,082		—		610		—		3,692
Total loans before allowance for loan losses	$	212,447	$	343,485	$	103,699	$	88,975	$	541	$	749,147
December 31, 2019:
Collectively evaluated for impairment	$	234,421	$	323,008	$	111,499	$	46,907	$	570	$	716,405
Individually evaluated for impairment		—		835		—		607		—		1,442
Total loans before allowance for loan losses	$	234,421	$	323,843	$	111,499	$	47,514	$	570	$	717,847

Schedule of additional information with respect to loans receivable

The following table provides additional information with respect to the Company’s commercial real estate and construction and commercial business loans by industry sector at June 30, 2020 (dollars in thousands):

Type of Loan (1)	Number of Loans	Balance
Real Estate Rental and Leasing	1,281	$	273,820
Construction	165		26,908
Accommodation and Food Services	72		23,618
Other Services (except Public Administration)	141		15,868
Health Care and Social Assistance	117		15,645
Retail Trade	88		14,854
Manufacturing	48		12,418
Professional, Scientific, and Technical Services	131		10,622
Wholesale Trade	58		7,743
Finance and Insurance	41		7,391
Other	244		23,573
Total	2,386	$	432,460

(1)   Loan types are based on the North American Industry Classification System (NAICS).

Schedule of real estate rental and leasing sector

Detail of Real Estate Rental and Leasing	Number of Loans	Balance
Lessors or Residential Buildings and Dwellings	930	$	142,156
Lessors of Nonresidential Buildings	210		99,033
Other Activities Related to Real Estate	47		8,120
Lessors of Mini warehouses and Self-Storage Units	15		5,860
Other General Government Support	17		6,171
Lessors of Other Real Estate Property	13		4,249
Real Estate Property Managers	11		2,575
All Other Real Estate Rental and Leasing	38		5,656
Total	1,281	$	273,820

Schedule of impaired loans by class, segregated by those for which a specific allowance was required and those for which a specific allowance was not necessary

The following table presents impaired loans by class, segregated by those for which a specific allowance was required and those for which a specific allowance was not necessary at June 30, 2020 and December 31, 2019 (dollars in thousands):

					Impaired Loans
	Impaired Loans With				Without
	Allowance				Allowance		Total Impaired Loans
	Recorded		Related		Recorded		Recorded		Unpaid Principal
	Investment		Allowance		Investment		Investment		Balance
June 30, 2020:
Commercial real estate and construction	$	—	$	—	$	3,082	$	3,082	$	3,082
Commercial business		—		—		610		610		610
Total impaired loans	$	—	$	—	$	3,692	$	3,692	$	3,692
December 31, 2019:
Commercial real estate and construction	$	—	$	—	$	835	$	835	$	835
Commercial business		—		—		607		607		607
Total impaired loans	$	—	$	—	$	1,442	$	1,442	$	1,442

Schedule of average recorded investment in impaired loans and related interest income recognized for the periods indicated

The following table presents the average recorded investment in impaired loans and related interest income recognized for the three and six months ended June 30, 2020 and June 30, 2019 (dollars in thousands):

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2020		2019		2020		2019
Average investment in impaired loans:
Commercial real estate and construction	$	2,651	$	—	$	2,045	$	—
Commercial business		607		—		607		—
	$	3,258	$	—	$	2,652	$	—
Interest income recognized on impaired loans	$	40	$	—	$	93	$	—

Schedule of modified financing receivables

The following table provides additional information with respect to the modified loans in the Company’s loan portfolio at June 30, 2020 (dollars in thousands):

				Weighted Average
Type of Loan	Number of Loans	Balance		Interest Rate
One-to-four family and residential and construction	99	$	19,186	4.05	%
Commercial real estate and construction	369		123,674	4.77	%
Home equity loans and lines of credit	87		6,059	3.35	%
Commercial business	45		9,593	4.32	%
Other loans	1		10	2.60	%
Total	601	$	158,522	4.60	%

Schedule of classes of the loan portfolio summarized by the aggregate pass and the criticized categories of special mention, substandard and doubtful within the internal risk rating system

The following table presents the classes of the loan portfolio summarized by the aggregate Pass rating and the criticized categories of Special Mention, Substandard and Doubtful within the Company’s internal risk rating system as of June 30, 2020 and December 31, 2019 (dollars in thousands):

			Special
	Pass		Mention		Substandard		Doubtful		Total
June 30, 2020:
Real estate loans:
One-to-four-family residential and construction	$	210,367	$	—	$	2,080	$	—	$	212,447
Commercial real estate and construction		339,743		1,141		2,601		—		343,485
Home equity loans and lines of credit		103,421		59		219		—		103,699
Commercial business loans		87,852		1,049		74		—		88,975
Other loans		539		—		2		—		541
Total	$	741,922	$	2,249	$	4,976	$	—	$	749,147
December 31, 2019:
Real estate loans:
One-to-four-family residential and construction	$	232,354	$	—	$	2,067	$	—	$	234,421
Commercial real estate and construction		320,988		2,544		311		—		323,843
Home equity loans and lines of credit		111,165		62		272		—		111,499
Commercial business loans		46,636		818		60		—		47,514
Other loans		564		—		6		—		570
Total	$	711,707	$	3,424	$	2,716	$	—	$	717,847

Schedule of classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans

			30‑59 Days		60‑89 Days				90 Days Past		Total
	Current		Past Due		Past Due		Non-Accrual		Due & Accruing		Loans
June 30, 2020:
Real estate loans:
One-to-four-family residential and construction	$	210,243	$	10	$	114	$	2,080	$	—	$	212,447
Commercial real estate and construction		342,129		—		125		1,231		—		343,485
Home equity loans and lines of credit		103,398		59		23		219		—		103,699
Commercial business loans		88,901		—		—		74		—		88,975
Other loans		537		—		2		2		—		541
Total	$	745,208	$	69	$	264	$	3,606	$	—	$	749,147
December 31, 2019:
Real estate loans:
One-to-four-family residential and construction	$	230,952	$	1,021	$	381	$	2,067	$	—	$	234,421
Commercial real estate and construction		322,922		610		—		311		—		323,843
Home equity loans and lines of credit		110,634		591		2		272		—		111,499
Commercial business loans		47,420		34		—		60		—		47,514
Other loans		564		—		—		6		—		570
Total	$	712,492	$	2,256	$	383	$	2,716	$	—	$	717,847

Schedule of activity in the allowance

The following tables summarize the activity in the primary segments of the ALL for the three and six months ended June 30, 2020 and June 30, 2019 as well as the allowance required for loans individually and collectively evaluated for impairment as of June 30, 2020 and December 31, 2019 (dollars in thousands):

	Real Estate Loans
	One-to-four-		Commercial		Home
	family		Real Estate		Equity Loans
	Residential and		and		and Lines		Commercial		Other
	Construction		Construction		of Credit		Business		Loans		Total
Three Months Ended :
Balance March 31, 2020	$	1,369	$	3,109	$	354	$	547	$	4	$	5,383
Charge-offs		(23)		—		—		(13)		—		(36)
Recoveries		1		—		—		—		—		1
Provision		(401)		2,204		(76)		(107)		—		1,620
Balance June 30, 2020	$	946	$	5,313	$	278	$	427	$	4	$	6,968
Balance March 31, 2019	$	860	$	2,754	$	298	$	461	$	2	$	4,375
Charge-offs		—		—		(59)		—		(5)		(64)
Recoveries		—		—		2		—		—		2
Provision		(9)		82		54		49		5		181
Balance at June 30, 2019	$	851	$	2,836	$	295	$	510	$	2	$	4,494
Six Months Ended :
Balance December 31, 2019	$	721	$	3,313	$	310	$	534	$	4	$	4,882
Charge-offs		(23)		—		(13)		(51)		(2)		(89)
Recoveries		3		1		—		1		—		5
Provision		245		1,999		(19)		(57)		2		2,170
Balance June 30, 2020	$	946	$	5,313	$	278	$	427	$	4	$	6,968
Balance at December 31, 2018	$	1,051	$	2,761	$	312	$	286	$	4	$	4,414
Charge-offs		—		(121)		(59)		—		(33)		(213)
Recoveries		—		—		3		—		—		3
Provision		(200)		196		39		224		31		290
Balance at June 30, 2019	$	851	$	2,836	$	295	$	510	$	2	$	4,494

	Real Estate Loans
	One-to-four-		Commercial		Home
	family		Real Estate		Equity Loans
	Residential and		and		and Lines		Commercial		Other
	Construction		Construction		of Credit		Business		Loans		Total
Evaluated for Impairment:
Collectively	$	946	$	5,313	$	278	$	427	$	4	$	6,968
Individually		—		—		—		—		—		—
Balance at June 30, 2020	$	946	$	5,313	$	278	$	427	$	4	$	6,968
Evaluated for Impairment:
Collectively	$	721	$	3,313	$	310	$	534	$	4	$	4,882
Individually		—		—		—		—		—		—
Balance at December 31, 2019	$	721	$	3,313	$	310	$	534	$	4	$	4,882