Loans

3 Months Ended

Mar. 31, 2020

Receivables [Abstract]

Loans

Loans

Net loans held-for-investment are as follows (in thousands):

	March 31,			December 31,
	2020			2019
Real estate loans:
Multifamily	$	2,300,974		$	2,196,407
Commercial mortgage	527,498			528,681
One-to-four family residential mortgage	84,880			83,742
Home equity and lines of credit	87,391			84,928
Construction and land	39,922			38,284
Total real estate loans	3,040,665			2,932,042
Commercial and industrial loans	49,210			45,328
Other loans	1,205			2,083
Total commercial and industrial and other loans	50,415			47,411
Deferred loan cost, net	7,680			7,614
Originated loans held-for-investment, net	3,098,760			2,987,067
PCI Loans	16,886			17,365
Loans acquired:
One-to-four family residential mortgage	167,934			187,975
Multifamily	102,176			108,417
Commercial mortgage	102,284			113,027
Home equity and lines of credit	10,653			12,008
Construction and land	1,388			2,537
Total acquired real estate loans	384,435			423,964
Commercial and industrial loans	9,056			8,689
Total loans acquired, net	393,491			432,653
Loans held-for-investment, net	3,509,137			3,437,085
Allowance for loan losses	(36,800		)	(28,707		)
Net loans held-for-investment	$	3,472,337		$	3,408,378

There were no loans held-for-sale at March 31, 2020, or December 31, 2019.

PCI loans totaled $16.9 million at March 31, 2020, as compared to $17.4 million at December 31, 2019. The majority of the PCI loan balance is attributable to those loans acquired as part of a Federal Deposit Insurance Corporation-assisted transaction. The Company accounts for PCI loans utilizing U.S. GAAP applicable to loans acquired with deteriorated credit quality. At March 31, 2020, PCI loans consist of approximately 30% commercial real estate loans and 41% commercial and industrial loans, with the remaining balance in residential and home equity loans. At December 31, 2019, PCI loans consist of approximately 29% commercial real estate loans and 42% commercial and industrial loans, with the remaining balance in residential and home equity loans.

The following table details the accretion of interest income for PCI loans for the three months ended March 31, 2020 and March 31, 2019 (in thousands): 

	At or for the three months ended March 31,
	2020			2019
Balance at the beginning of period	$	17,086		$	21,846
Accretion into interest income	(803		)	(1,049		)
Balance at end of period	$	16,283		$	20,797

The following tables set forth activity in our allowance for loan losses, by loan type, as of and for the three months ended March 31, 2020, and March 31, 2019 (in thousands):  

	Three Months Ended March 31, 2020
	Real Estate
	Commercial		One-to-Four Family		Construction and Land		Multifamily		Home Equity and Lines of Credit		Commercial and Industrial			Other			Originated Loans Total			Purchased Credit-Impaired		Acquired Loans			Total
Allowance for loan losses:
Beginning balance	$	4,756	$	180	$	536	$	20,203	$	317	$	1,640		$	151		$	27,783		$	789	$	135		$	28,707
Charge-offs	—		—		—		—		—		(37		)	—			(37		)	—		(433		)	(470		)
Recoveries	370		—		—		—		—		2			—			372			—		8			380
Provisions (credit)	263		132		135		6,686		257		430			(65		)	7,838			—		345			8,183
Ending balance	$	5,389	$	312	$	671	$	26,889	$	574	$	2,035		$	86		$	35,956		$	789	$	55		$	36,800

	Three Months Ended March 31, 2019
	Real Estate
	Commercial			One-to-Four Family		Construction and Land		Multifamily		Home Equity and Lines of Credit		Commercial and Industrial			Other			Originated Loans Total			Purchased Credit-Impaired		Acquired Loans			Total
Allowance for loan losses:
Beginning balance	$	5,630		$	342	$	463	$	18,084	$	291	$	1,569		$	108		$	26,487		$	1,010	$	—		$	27,497
Charge-offs	(6		)	—		—		—		—		(26		)	—			(32		)	—		(60		)	(92		)
Recoveries	13			—		—		—		—		—			—			13			—		9			22
Provisions (credit)	(255		)	28		111		262		45		(167		)	(16		)	8			—		51			59
Ending balance	$	5,382		$	370	$	574	$	18,346	$	336	$	1,376		$	92		$	26,476		$	1,010	$	—		$	27,486

The following tables detail the amount of loans receivable held-for-investment, net of deferred loan fees and costs, that are evaluated individually, and collectively, for impairment, and the related portion of the allowance for loan losses that is allocated to each loan portfolio segment, at March 31, 2020, and December 31, 2019 (in thousands):

	March 31, 2020
	Real Estate
	Commercial		One-to-Four Family		Construction and Land		Multifamily		Home Equity and Lines of Credit		Commercial and Industrial		Other		Originated Loans Total		Purchased Credit-Impaired		Acquired Loans		Total
Allowance for loan losses:
Ending balance: individually evaluated for impairment	$	—	$	—	$	—	$	—	$	3	$	4	$	—	$	7	$	—	$	55	$	62
Ending balance: collectively evaluated for impairment	$	5,389	$	312	$	671	$	26,889	$	571	$	2,031	$	86	$	35,949	$	789	$	—	$	36,738
Loans, net:
Ending balance	$	528,104	$	86,404	$	39,953	$	2,304,387	$	89,349	$	49,358	$	1,205	$	3,098,760	$	16,886	$	393,491	$	3,509,137
Ending balance: individually evaluated for impairment	$	11,815	$	1,816	$	—	$	994	$	53	$	55	$	—	$	14,733	$	—	$	5,784	$	20,517
Ending balance: collectively evaluated for impairment	$	516,289	$	84,588	$	39,953	$	2,303,393	$	89,296	$	49,303	$	1,205	$	3,084,027	$	16,886	$	387,707	$	3,488,620

	December 31, 2019
	Real Estate
	Commercial		One-to-Four Family		Construction and Land		Multifamily		Home Equity and Lines of Credit		Commercial and Industrial		Other		Originated Loans Total		Purchased Credit-Impaired		Acquired Loans		Total
Allowance for loan losses:
Ending balance: individually evaluated for impairment	$	—	$	—	$	—	$	—	$	3	$	4	$	—	$	7	$	—	$	135	$	142
Ending balance: collectively evaluated for impairment	$	4,756	$	180	$	536	$	20,203	$	314	$	1,636	$	151	$	27,776	$	789	$	—	$	28,565
Loans, net:
Ending balance	$	529,287	$	85,355	$	38,303	$	2,199,734	$	86,848	$	45,456	$	2,084	$	2,987,067	$	17,365	$	432,653	$	3,437,085
Ending balance: individually evaluated for impairment	$	13,226	$	1,841	$	—	$	997	$	55	$	58	$	—	$	16,177	$	—	$	4,780	$	20,957
Ending balance: collectively evaluated for impairment	$	516,061	$	83,514	$	38,303	$	2,198,737	$	86,793	$	45,398	$	2,084	$	2,970,890	$	17,365	$	427,873	$	3,416,128

The Company monitors the credit quality of its loan portfolio on a regular basis. Credit quality is monitored by reviewing certain credit quality indicators. Management has determined that loan-to-value ratios (at period end) and internally assigned credit risk ratings by loan type are the key credit quality indicators that best measure the credit quality of the Company’s loan receivables. Loan-to-value (“LTV”) ratios used by management in monitoring credit quality are based on current period loan balances and original appraised values at time of origination (unless a current appraisal has been obtained as a result of the loan being deemed impaired). In calculating the provision for loan losses, based on past loan loss experience, management has determined that commercial real estate loans and multifamily loans having loan-to-value ratios, as described above, of less than 35%, and one-to-four family loans having loan-to-value ratios, as described above, of less than 60%, require less of a loss factor than those with higher loan to value ratios.

The Company maintains a credit risk rating system as part of the risk assessment of its loan portfolio. The Company’s lending officers are required to assign a credit risk rating to each loan in their portfolio at origination. This risk rating is reviewed periodically and adjusted if necessary. Monthly, management presents monitored assets to the loan committee. In addition, the Company engages a third-party independent loan reviewer that performs semi-annual reviews of a sample of loans, validating the credit risk ratings assigned to such loans. The credit risk ratings play an important role in the establishment of the provision for loan losses and the allowance for loan losses for originated loans held-for-investment. After determining the loss factor for each originated portfolio segment held-for-investment, the collectively evaluated for impairment balance of the held-for-investment portfolio is multiplied by the collectively evaluated for impairment loss factor for the respective portfolio segment in order to determine the allowance for loans collectively evaluated for impairment.

When assigning a risk rating to a loan, management utilizes the Bank’s internal nine-point credit risk rating system. 

1. Strong

2. Good

3. Acceptable

4. Adequate

5. Watch

6. Special Mention

7. Substandard

8. Doubtful

9. Loss

Loans rated 1 to 5 are considered pass ratings. An asset is classified substandard if it is inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Substandard assets have well defined weaknesses based on objective evidence, and are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. Assets classified as doubtful have all of the weaknesses inherent in those classified substandard with the added characteristic that the weaknesses present make collection or liquidation in full highly questionable and improbable based on current circumstances. Assets classified as loss are those considered uncollectible and of such little value that their continuance as assets is not warranted. Assets which do not currently expose the Company to sufficient risk to warrant classification in one of the aforementioned categories, but possess weaknesses, are required to be designated special mention.

The following tables detail the recorded investment of originated loans held-for-investment, net of deferred fees and costs, by loan type and credit quality indicator at March 31, 2020, and December 31, 2019 (in thousands):

	At March 31, 2020
	Real Estate
	Multifamily				Commercial				One-to-Four Family				Construction and Land		Home Equity and Lines of Credit		Commercial and Industrial		Other		Total
	< 35% LTV		=> 35% LTV		< 35% LTV		=> 35% LTV		< 60% LTV		=> 60% LTV
Internal Risk Rating
Pass	$	247,304	$	2,051,039	$	89,069	$	432,711	$	53,091	$	30,953	$	39,953	$	89,082	$	49,055	$	1,205	$	3,083,462
Special Mention	291		292		—		—		770		—		—		80		266		—		1,699
Substandard	298		5,163		—		6,324		1,563		27		—		187		37		—		13,599
Originated loans held-for-investment, net	$	247,893	$	2,056,494	$	89,069	$	439,035	$	55,424	$	30,980	$	39,953	$	89,349	$	49,358	$	1,205	$	3,098,760

	At December 31, 2019
	Real Estate
	Multifamily				Commercial				One-to-Four Family				Construction and Land		Home Equity and Lines of Credit		Commercial and Industrial		Other		Total
	< 35% LTV		=> 35% LTV		< 35% LTV		=> 35% LTV		< 60% LTV		=> 60% LTV
Internal Risk Rating
Pass	$	232,950	$	1,960,984	$	79,485	$	440,065	$	52,886	$	29,967	$	38,303	$	86,547	$	45,075	$	2,084	$	2,968,346
Special Mention	—		296		370		1,092		777		—		—		14		301		—		2,850
Substandard	301		5,203		—		8,275		1,397		328		—		287		80		—		15,871
Originated loans held-for-investment, net	$	233,251	$	1,966,483	$	79,855	$	449,432	$	55,060	$	30,295	$	38,303	$	86,848	$	45,456	$	2,084	$	2,987,067

Included in loans receivable are loans for which the accrual of interest income has been discontinued due to deterioration in the financial condition of the borrowers. The recorded investment of these non-accrual loans was $8.8 million and $9.4 million at March 31, 2020, and December 31, 2019, respectively. Generally, loans are placed on non-accrual status when they become 90 days or more delinquent, or sooner if considered appropriate by management, and remain on non-accrual status until they are brought current, have six consecutive months of performance under the loan terms, and factors indicating reasonable doubt about the timely collection of payments no longer exist. Therefore, loans may be current in accordance with their loan terms, or may be less than 90 days delinquent and still be on a non-accruing status.    

The non-accrual amounts included loans deemed to be impaired of $6.5 million and $6.8 million at March 31, 2020, and December 31, 2019, respectively. Loans on non-accrual status with principal balances less than $500,000, and therefore not meeting the Company’s definition of an impaired loan, amounted to $2.3 million at March 31, 2020 and $2.6 million at December 31, 2019. There were no non-accrual loans held-for-sale at both March 31, 2020 and December 31, 2019. Loans past due 90 days or more and still accruing interest were $656,000 at March 31, 2020 and $518,000 at December 31, 2019, and consisted of loans that are considered well-secured and in the process of collection.

The following tables set forth the detail, and delinquency status, of non-performing loans (non-accrual loans and loans past due 90 days or more and still accruing), net of deferred fees and costs, at March 31, 2020, and December 31, 2019, excluding PCI loans which have been segregated into pools. For PCI loans, each loan pool is accounted for as a single asset with a single composite interest rate and an aggregate expectation of cash flows (in thousands):

	March 31, 2020
	Total Non-Performing Loans
	Non-Accruing Loans
	0-29 Days Past Due		30-89 Days Past Due		90 Days or More Past Due		Total		90 Days or More Past Due and Accruing		Total Non-Performing Loans
Loans held-for-investment:
Real estate loans:
Commercial
LTV => 35%
Substandard	$	—	$	—	$	1,108	$	1,108	—		$	1,108
Total commercial	—		—		1,108		1,108		—		1,108
One-to-four family residential
LTV < 60%
Special Mention	—		—		—		—		173		173
Substandard	221		187		77		485		—		485
Total	221		187		77		485		173		658
LTV => 60%
Substandard	—		27		—		27		—		27
Total one-to-four family residential	221		214		77		512		173		685
Multifamily
LTV => 35%
Special Mention	—		—		—		—		291		291
Total multifamily	—		—		—		—		291		291
Home equity and lines of credit
Substandard	—		66		89		155		—		155
Total home equity and lines of credit	—		66		89		155		—		155
Total non-performing loans held-for-investment, originated	221		280		1,274		1,775		464		2,239
Loans acquired:
Real estate loans:
Commercial
LTV < 35%
Substandard	—		79		187		266		66		332
LTV => 35%
Substandard	2,815		1,255		1,831		5,901		120		6,021
Total commercial	2,815		1,334		2,018		6,167		186		6,353
One-to-four family residential
LTV < 60%
Substandard	—		189		85		274		6		280
LTV => 60%
Substandard	—		—		93		93		—		93
Total one-to-four family residential	—		189		178		367		6		373
Multifamily
LTV < 35%
Substandard	40		—		—		40		—		40
LTV => 35%
Substandard	—		394		—		394		—		394
Total multifamily	40		394		—		434		—		434
Home equity and lines of credit - Substandard	—		—		28		28		—		28
Total non-performing loans acquired	2,855		1,917		2,224		6,996		192		7,188
Total non-performing loans	$	3,076	$	2,197	$	3,498	$	8,771	$	656	$	9,427

	December 31, 2019
	Total Non-Performing Loans
	Non-Accruing Loans
	0-29 Days Past Due		30-89 Days Past Due		90 Days or More Past Due		Total		90 Days or More Past Due and Accruing		Total Non-Performing Loans
Loans held-for-investment:
Real estate loans:
Commercial
LTV < 35%
Substandard					$	2,416	$	2,416			$	2,416
Total commercial	—		—		2,416		2,416		—		2,416
One-to-four family residential
LTV < 60%
Substandard	—		—		493		493		114		607
LTV => 60%
Substandard	—		29		—		29		—		29
Total one-to-four family residential	—		29		493		522		114		636
Home equity and lines of credit
Substandard	—		67		89		156		—		156
Total home equity and lines of credit	—		67		89		156		—		156
Total non-performing loans held-for-investment, originated	—		96		2,998		3,094		114		3,208
Loans acquired:
Real estate loans:
Commercial
LTV < 35%
Substandard	79		—		188		267		66		333
LTV => 35%
Substandard	3,530		—		1,709		5,239		187		5,426
Total commercial	3,609		—		1,897		5,506		253		5,759
One-to-four family residential
LTV < 60%
Substandard	190		—		85		275		151		426
LTV => 60%
Substandard	—		—		93		93		—		93
Total one-to-four family residential	190		—		178		368		151		519
Multifamily
LTV < 35%
Substandard	40		—		—		40		—		40
LTV => 35%
Substandard	—		397		—		397		—		397
Total multifamily	40		397		—		437		—		437
Home equity and lines of credit
Substandard	—		—		28		28		—		28
Total home equity and lines of credit	—		—		28		28		—		28
Total non-performing loans acquired	3,839		397		2,103		6,339		404		6,743
Total non-performing loans	$	3,839	$	493	$	5,101	$	9,433	$	518	$	9,951

The following tables set forth the detail and delinquency status of originated and acquired loans held-for-investment, net of deferred fees and costs, by performing and non-performing loans at March 31, 2020, and December 31, 2019 (in thousands):

	March 31, 2020
	Performing (Accruing) Loans
	0-29 Days Past Due		30-89 Days Past Due		Total		Non-Performing Loans		Total Loans Receivable, net
Loans held-for-investment:
Real estate loans:
Commercial
LTV < 35%
Pass	$	88,944	$	125	$	89,069	$	—	$	89,069
Total	88,944		125		89,069		—		89,069
LTV => 35%
Pass	431,886		825		432,711		—		432,711
Substandard	248		4,968		5,216		1,108		6,324
Total	432,134		5,793		437,927		1,108		439,035
Total commercial	521,078		5,918		526,996		1,108		528,104
One-to-four family residential
LTV < 60%
Pass	53,067		22		53,089		—		53,089
Special Mention	—		597		597		173		770
Substandard	1,079		—		1,079		485		1,564
Total	54,146		619		54,765		658		55,423
LTV => 60%
Pass	29,106		1,848		30,954		—		30,954
Substandard	—		—		—		27		27
Total	29,106		1,848		30,954		27		30,981
Total one-to-four family residential	83,252		2,467		85,719		685		86,404
Construction and land
Pass	39,953		—		39,953		—		39,953
Total construction and land	39,953		—		39,953		—		39,953
Multifamily
LTV < 35%
Pass	247,304		—		247,304		—		247,304
Special Mention	—		—		—		291		291
Substandard	298		—		298		—		298
Total	247,602		—		247,602		291		247,893
LTV => 35%
Pass	2,051,038		—		2,051,038		—		2,051,038
Special Mention	292		—		292		—		292
Substandard	4,192		972		5,164		—		5,164
Total	2,055,522		972		2,056,494		—		2,056,494
Total multifamily	2,303,124		972		2,304,096		291		2,304,387
Home equity and lines of credit
Pass	88,846		236		89,082		—		89,082
Special Mention	80		—		80		—		80
Substandard	32		—		32		155		187
Total home equity and lines of credit	88,958		236		89,194		155		89,349
Commercial and industrial
Pass	48,689		366		49,055		—		49,055
Special Mention	266		—		266		—		266
Substandard	—		37		37		—		37
Total commercial and industrial	48,955		403		49,358		—		49,358

	March 31, 2020
	Performing (Accruing) Loans (Continued)
	0-29 Days Past Due		30-89 Days Past Due		Total		Non-Performing Loans		Total Loans Receivable, net
Other loans
Pass	1,205		—		1,205				1,205
Total originated loans held-for-investment	3,086,525		9,996		3,096,521		2,239		3,098,760
Acquired loans:
Real estate loans:
One-to-four family residential
LTV < 60%
Pass	152,130		1,279		153,409		—		153,409
Special Mention	—		381		381		—		381
Substandard	—		—		—		279		279
Total	152,130		1,660		153,790		279		154,069
LTV => 60%
Pass	13,772		—		13,772		—		13,772
Substandard	—		—		—		93		93
Total	13,772		—		13,772		93		13,865
Total one-to-four family residential	165,902		1,660		167,562		372		167,934
Commercial
LTV < 35%
Pass	34,004		315		34,319		—		34,319
Special Mention	994		95		1,089		—		1,089
Substandard	538		—		538		332		870
Total	35,536		410		35,946		332		36,278
LTV => 35%
Pass	51,245		—		51,245		—		51,245
Special Mention	134		341		475		—		475
Substandard	6,783		1,482		8,265		6,021		14,286
Total	58,162		1,823		59,985		6,021		66,006
Total commercial	93,698		2,233		95,931		6,353		102,284
Construction and land
Pass	1,388		—		1,388		—		1,388
Total construction and land	1,388		—		1,388		—		1,388
Multifamily
LTV < 35%
Pass	99,144		—		99,144		—		99,144
Substandard	—		—		—		40		40
Total	99,144		—		99,144		40		99,184
LTV => 35%
Pass	2,597		—		2,597		—		2,597
Substandard	—		—		—		395		395
Total	2,597		—		2,597		395		2,992
Total multifamily	101,741		—		101,741		435		102,176
Home equity and lines of credit
Pass	10,437		104		10,541		—		10,541
Substandard	84		—		84		28		112
Total home equity and lines of credit	10,521		104		10,625		28		10,653
Commercial and industrial
Pass	9,056		—		9,056		—		9,056
Total commercial and industrial	9,056		—		9,056		—		9,056
Other loans - Pass	—		—		—		—		—
Total loans acquired	382,306		3,997		386,303		7,188		393,491
	$	3,468,831	$	13,993	$	3,482,824	$	9,427	$	3,492,251

	December 31, 2019
	Performing (Accruing) Loans
	0-29 Days Past Due		30-89 Days Past Due		Total		Non-Performing Loans	Total Loans Receivable, net
Loans held-for-investment:
Real estate loans:
Commercial
LTV < 35%
Pass	$	79,383	$	102	$	79,485	—	$	79,485
Special Mention	370		—		370		—	370
Total	79,753		102		79,855		—	79,855
LTV => 35%
Pass	439,253		812		440,065		—	440,065
Special Mention	1,092		—		1,092		—	1,092
Substandard	5,228		631		5,859		2,416	8,275
Total	445,573		1,443		447,016		2,416	449,432
Total commercial	525,326		1,545		526,871		2,416	529,287
One-to-four family residential
LTV < 60%
Pass	52,757		129		52,886		—	52,886
Special Mention	—		777		777		—	777
Substandard	790		—		790		607	1,397
Total	53,547		906		54,453		607	55,060
LTV => 60%
Pass	29,741		226		29,967		—	29,967
Substandard	299		—		299		29	328
Total	30,040		226		30,266		29	30,295
Total one-to-four family residential	83,587		1,132		84,719		636	85,355
Construction and land
Pass	38,156		147		38,303		—	38,303
Total construction and land	38,156		147		38,303		—	38,303
Multifamily
LTV < 35%
Pass	232,658		292		232,950		—	232,950
Substandard	301		—		301		—	301
Total	232,959		292		233,251		—	233,251
LTV => 35%
Pass	1,960,729		255		1,960,984		—	1,960,984
Special Mention	296		—		296		—	296
Substandard	5,203		—		5,203		—	5,203
Total	1,966,228		255		1,966,483		—	1,966,483
Total multifamily	2,199,187		547		2,199,734		—	2,199,734
Home equity and lines of credit
Pass	86,380		167		86,547		—	86,547
Special Mention	14		—		14		—	14
Substandard	131		—		131		156	287
Total home equity and lines of credit	86,525		167		86,692		156	86,848
Commercial and industrial loans
Pass	44,886		189		45,075		—	45,075
Special Mention	301		—		301		—	301
Substandard	80		—		80		—	80
Total commercial and industrial loans	45,267		189		45,456		—	45,456
Other loans - Pass	2,058		26		2,084		—	2,084
Total originated loans held-for-investment	2,980,106		3,753		2,983,859		3,208	2,987,067

	December 31, 2019
	Performing (Accruing) Loans
	0-29 Days Past Due		30-89 Days Past Due		Total		Non-Performing Loans		Total Loans Receivable, net
Loans Acquired
Real estate loans:
One-to-four family residential
LTV < 60%
Pass	172,882		73		172,955		—		172,955
Special Mention	—		385		385		—		385
Substandard	—		—		—		426		426
Total	172,882		458		173,340		426		173,766
LTV => 60%
Pass	14,116		—		14,116		—		14,116
Substandard	—		—		—		93		93
Total	14,116		—		14,116		93		14,209
Total one-to-four family residential	186,998		458		187,456		519		187,975
Commercial
LTV < 35%
Pass	35,173		287		35,460		—		35,460
Special Mention	994		194		1,188		—		1,188
Substandard	369		—		369		334		703
Total	36,536		481		37,017		334		37,351
LTV => 35%
Pass	60,311		—		60,311		—		60,311
Special Mention	134		464		598		—		598
Substandard	6,382		2,960		9,342		5,425		14,767
Total	66,827		3,424		70,251		5,425		75,676
Total commercial	103,363		3,905		107,268		5,759		113,027
Construction and land
Pass	2,537		—		2,537		—		2,537
Total construction and land	2,537		—		2,537		—		2,537
Multifamily
LTV < 35%
Pass	105,327		—		105,327		—		105,327
Substandard	—		—		—		40		40
Total	105,327		—		105,327		40		105,367
LTV => 35%
Pass	2,653		—		2,653		—		2,653
Substandard	—		—		—		397		397
Total	2,653		—		2,653		397		3,050
Total multifamily	107,980		—		107,980		437		108,417
Home equity and lines of credit
Pass	11,842		50		11,892		—		11,892
Substandard	88		—		88		28		116
Total home equity and lines of credit	11,930		50		11,980		28		12,008
Commercial and industrial loans
Pass	8,649		40		8,689		—		8,689
Total commercial and industrial loans	8,649		40		8,689		—		8,689
Other	—		—		—		—		—
Total loans acquired	421,457		4,453		425,910		6,743		432,653
	$	3,401,563	$	8,206	$	3,409,769	$	9,951	$	3,419,720

The following table summarizes originated and acquired impaired loans as of March 31, 2020, and December 31, 2019 (in thousands):

	March 31, 2020							December 31, 2019
	Recorded Investment		Unpaid Principal Balance		Related Allowance			Recorded Investment		Unpaid Principal Balance		Related Allowance
With No Allowance Recorded:
Real estate loans:
Commercial
LTV < 35%
Substandard	$	—	$	139	$	—		$	—	$	139	$	—
LTV => 35%
Pass	5,491		6,378		—			5,582		6,468		—
Substandard	10,883		11,089		—			10,438		11,002		—
One-to-four family residential
LTV < 60%
Pass	1,363		1,449		—			1,379		1,463		—
Special Mention	382		382		—			385		385		—
Substandard	556		556		—			564		564		—
LTV => 60%
Pass	120		154		—			122		154		—
Substandard	27		27		—			29		29		—
Multifamily
LTV < 35%
Substandard	40		40		—			40		40		—
LTV => 35%
Pass	22		493		—			26		496		—
Substandard	972		972		—			972		972		—
Home equity and lines of credit
Pass	20		20		—			22		22		—
Commercial and industrial loans
Substandard	37		37		—			39		39		—
With a Related Allowance Recorded:
Real estate loans:
Commercial
LTV => 35%
Substandard	553		1,419		(55		)	1,307		1,307		(135		)
One-to-four family residential
LTV < 60%
Substandard	—		—		—			—		—		—
Home equity and lines of credit
Substandard	33		32		(3		)	33		33		(3		)
Commercial and industrial loans
Special Mention	18		18		(4		)	19		19		(4		)
Total:
Real estate loans
Commercial	16,927		19,025		(55		)	17,327		18,916		(135		)
One-to-four family residential	2,448		2,568		—			2,479		2,595		—
Multifamily	1,034		1,505		—			1,038		1,508		—
Home equity and lines of credit	53		52		(3		)	55		55		(3		)
Commercial and industrial loans	55		55		(4		)	58		58		(4		)
	$	20,517	$	23,205	$	(62	)	$	20,957	$	23,132	$	(142	)

Included in the above tables at March 31, 2020, are impaired loans with carrying balances of $16.2 million that were not written down by charge-offs or for which there are no specific reserves in our allowance for loan losses. Included in impaired loans at December 31, 2019, are loans with carrying balances of $15.9 million that were not written down by charge-offs or for which there are no specific reserves in our allowance for loan losses. Loans not written down by charge-offs or specific reserves at March 31, 2020, and December 31, 2019, are considered to have sufficient collateral values, less costs to sell, to support the carrying balances of the loans.

The following table summarizes the average recorded investment in originated and acquired impaired loans (excluding PCI loans) and interest recognized on impaired loans as of, and for, the three and three months ended March 31, 2020, and March 31, 2019 (in thousands):

	Three Months Ended
	March 31, 2020				March 31, 2019
	Average Recorded Investment		Interest Income		Average Recorded Investment		Interest Income
With No Allowance Recorded:
Real estate loans:
Commercial
LTV => 35%
Pass	$	5,537	$	75	$	5,888	$	78
Substandard	10,661		37		11,604		72
One-to-four family residential
LTV < 60%
Pass	1,371		16		1,677		22
Special Mention	384		5		—		—
Substandard	560		11		240		3
LTV => 60%
Pass	121		1		128		1
Substandard	28		—		125		3
Multifamily
LTV < 35%
Substandard	40		—		100		1
LTV => 35%
Pass	24		4		37		4
Substandard	972		9		1,227		20
Home equity and lines of credit
Pass	21		—		27		—
Commercial and industrial loans
Substandard	38		—		50		—
With a Related Allowance Recorded:
Real estate loans:
Commercial
LTV => 35%
Substandard	930		—		259		—
One-to-four family residential
LTV < 60%
Substandard	—		—		502		5
Home equity and lines of credit
Substandard	33		1		33		1
Commercial and industrial loans
Special Mention	18		—		21		—
Total:
Real estate loans
Commercial	17,128		112		17,751		150
One-to-four family residential	2,464		33		2,672		34
Multifamily	1,036		13		1,364		25
Home equity and lines of credit	54		1		60		1
Commercial and industrial loans	56		—		71		—
	$	20,738	$	159	$	21,918	$	210

    

There were no loans modified as troubled debt restructurings (TDRs) during the three months ended March 31, 2020. There were two loans modified as TDRs during the three months ended March 31, 2019, both of which were modified to restructure payment terms.

The following table summarizes loans that were modified in a TDR during the three months ended March 31, 2019:

	Three Months Ended March 31, 2019
	Number of Relationships	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment(1)
	(in thousands)
Troubled Debt Restructurings
Consumer	1	$	2	$	2
Commercial real estate	1	2,834		2,834
Total Troubled Debt Restructurings	2	$	2,836	$	2,836
(1) Amounts are at time of modification

At March 31, 2020, and December 31, 2019, we had TDRs of $17.1 million and $18.5 million, respectively.

Management classifies all TDRs as impaired loans. Impaired loans are individually assessed to determine that the loan’s carrying value is not in excess of the estimated fair value of the collateral less cost to sell, if the loan is collateral dependent, or the present value of the expected future cash flows, if the loan is not collateral dependent. Management performs an evaluation of each impaired loan and generally obtains updated appraisals as part of the evaluation. In addition, management adjusts estimated fair values down to appropriately consider recent market conditions, our willingness to accept a lower sales price to effect a quick sale, and costs to dispose of any supporting collateral. Determining the estimated fair value of underlying collateral (and related costs to sell) can be difficult in illiquid real estate markets and is subject to significant assumptions and estimates. Management employs an independent third-party management firm that specializes in appraisal preparation and review to ascertain the reasonableness of updated appraisals. Projecting the expected cash flows under troubled debt restructurings which are not collateral dependent is inherently subjective and requires, among other things, an evaluation of the borrower’s current and projected financial condition. Actual results may be significantly different than our projections and our established allowance for loan losses on these loans, which could have a material effect on our financial results.

At March 31, 2020, there was one TDR with a balance of $27,000, that was restructured during the preceding twelve months that subsequently defaulted. At March 31, 2019, there were no TDR loans that were restructured during the preceding twelve months that subsequently defaulted.