Loans (Tables)

6 Months Ended

Jun. 30, 2020

Loans

Schedule of composition of loans

	June 30, 2020		December 31, 2019
	(In thousands)
1 – 4 family	$	50,717	$	48,140
Commercial		296,554		257,957
Multifamily		150,111		152,633
Commercial real estate		54,284		52,477
Construction		-		6,450
Consumer		42,149		47,322
Total Loans		593,815		564,979
Deferred costs and unearned premiums, net		(137)		390
Allowance for loan losses		(10,676)		(6,989)
Loans, net	$	583,002	$	558,380

Schedule of activity in allowance for loan losses

At June 30, 2020, the commercial loans balance included $21.9 million of Small Business Administration (SBA) Paycheck Protection Program (PPP) loans. There were no SBA PPP loans at December 31, 2019.

The following tables present the activity in the allowance for loan losses by class for the three months ending June 30, 2020 and 2019:

							Commercial
	1‑4 Family		Commercial		Multifamily		Real Estate		Construction		Consumer		Total
	(In thousands)
June 30, 2020
Allowance for loan losses:
Beginning balance	$	497	$	5,086	$	1,441	$	817	$	—	$	1,037	$	8,878
Provision (credit) for loan losses		242		(270)		685		165		—		1,078		1,900
Recoveries		—		—		—		—		—		—		—
Loans charged-off		—		—		—		—		—		(102)		(102)
Total ending allowance balance	$	739	$	4,816	$	2,126	$	982	$	—	$	2,013	$	10,676
June 30, 2019
Allowance for loan losses:
Beginning balance	$	380	$	3,486	$	949	$	408	$	159	$	667	$	6,049
Provision (credit) for loan losses		(8)		371		(29)		(2)		2		66		400
Recoveries		—		—		—		—		—		—		—
Loans charged-off		—		(14)		—		—		—		(2)		(16)
Total ending allowance balance	$	372	$	3,843	$	920	$	406	$	161	$	731	$	6,433

The following tables present the activity in the allowance for loan losses by class for the six months ending June 30, 2020 and 2019:

							Commercial
	1‑4 Family		Commercial		Multifamily		Real Estate		Construction		Consumer		Total
	(In thousands)
June 30, 2020
Allowance for loan losses:
Beginning balance	$	344	$	4,048	$	1,048	$	560	$	161	$	828	$	6,989
Provision (credit) for loan losses		395		768		1,078		422		(161)		1,298		3,800
Recoveries		—		—		—		—		—		—		—
Loans charged-off		—		—		—		—		—		(113)		(113)
Total ending allowance balance	$	739	$	4,816	$	2,126	$	982	$	—	$	2,013	$	10,676
June 30, 2019
Allowance for loan losses:
Beginning balance	$	407	$	3,110	$	952	$	357	$	149	$	654	$	5,629
Provision (credit) for loan losses		(35)		752		(32)		49		12		79		825
Recoveries		—		—		—		—		—		—		—
Loans charged-off		—		(19)		—		—		—		(2)		(21)
Total ending allowance balance	$	372	$	3,843	$	920	$	406	$	161	$	731	$	6,433

The following tables present the balance in the allowance for loan losses and the recorded investment in loans by class and based on impairment method as of June 30, 2020 and December 31, 2019:

							Commercial
	1‑4 Family		Commercial		Multifamily		Real Estate		Construction		Consumer		Total
	(In thousands)
June 30, 2020
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Collectively evaluated for impairment		739		4,816		2,126		982		—		2,013		10,676
Total ending allowance balance	$	739	$	4,816	$	2,126	$	982	$	—	$	2,013	$	10,676
Loans:
Loans individually evaluated for impairment	$	—	$	—	$	—	$	—	$	—	$	1,320	$	1,320
Loans collectively evaluated for impairment		50,717		296,554		150,111		54,284		—		40,829		592,495
Total ending loans balance	$	50,717	$	296,554	$	150,111	$	54,284	$	—	$	42,149	$	593,815

							Commercial
	1‑4 Family		Commercial		Multifamily		Real Estate		Construction		Consumer		Total
	(In thousands)
December 31, 2019
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Collectively evaluated for impairment		344		4,048		1,048		560		161		828		6,989
Total ending allowance balance	$	344	$	4,048	$	1,048	$	560	$	161	$	828	$	6,989
Loans:
Loans individually evaluated for impairment	$	—	$	—	$	—	$	—	$	—	$	1,476	$	1,476
Loans collectively evaluated for impairment		48,140		257,957		152,633		52,477		6,450		45,846		563,503
Total ending loans balance	$	48,140	$	257,957	$	152,633	$	52,477	$	6,450	$	47,322	$	564,979

Schedule of impaired loans

	June 30,				December 31,
	2020				2019
			Unpaid				Unpaid
	Recorded		Principal		Recorded		Principal
	Investment		Balance		Investment		Balance
	(In thousands)
1-4 family	$	—	$	—	$	—	$	—
Commercial		—		—		—		—
Multifamily		—		—		—		—
Commercial real estate		—		—		—		—
Construction		—		—		—		—
Consumer		1,320		1,320		1,476		1,476
Total	$	1,320	$	1,320	$	1,476	$	1,476

The following table provides an analysis of average recorded investment and interest income recognized by segment on impaired loans during the three and six months ended June 30, 2020. There were no impaired loans as of June 30, 2019 or during the three months ended June 30, 2019:

	Three months ended June 30,								Six months ended June 30,
	2020				2019				2020				2019
	Average		Interest		Average		Interest		Average		Interest		Average		Interest
	Recorded		Income		Recorded		Income		Recorded		Income		Recorded		Income
	Investment		Recognized		Investment		Recognized		Investment		Recognized		Investment		Recognized
	(In thousands)
1-4 family	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Commercial		—		—		—		—		—		—		—		—
Multifamily		—		—		—		—		—		—		—		—
Commercial real estate		—		—		—		—		—		—		—		—
Construction		—		—		—		—		—		—		—		—
Consumer		893		—		—		—		1,096		—		—		—
Total	$	893	$	—	$	—	$	—	$	1,096	$	—	$	—	$	—

Schedule of aging of recorded investment in past due loans

									Total Past
	30-59		60-89		Greater than				Due &
	Days		Days		90 Days		Nonaccrual		Nonaccrual		Loans Not
	Past Due		Past Due		Past Due		Loans		Loans		Past Due		Total
	(In thousands)
June 30, 2020
1 – 4 family	$	—	$	—	$	—	$	—	$	—	$	50,717	$	50,717
Commercial		1		—		—		2		3		296,551		296,554
Multifamily		5,837		—		—		—		5,837		144,274		150,111
Commercial real estate		—		—		—		—		—		54,284		54,284
Construction		—		—		—		—		—		—		—
Consumer		7		4		—		1,320		1,331		40,818		42,149
Total	$	5,845	$	4	$	—	$	1,322	$	7,171	$	586,644	$	593,815

									Total Past
	30-59		60-89		Greater than				Due &
	Days		Days		90 Days		Nonaccrual		Nonaccrual		Loans Not
	Past Due		Past Due		Past Due		Loans		Loans		Past Due		Total
	(In thousands)
December 31, 2019
1 – 4 family	$	—	$	—	$	—	$	—	$	—	$	48,140	$	48,140
Commercial		—		—		—		—		—		257,957		257,957
Multifamily		—		2,602		—		—		2,602		150,031		152,633
Commercial real estate		—		—		—		—		—		52,477		52,477
Construction		—		—		—		—		—		6,450		6,450
Consumer		—		6		—		1,476		1,482		45,840		47,322
Total	$	—	$	2,608	$	—	$	1,476	$	4,084	$	560,895	$	564,979

Schedule of risk category of loans

	Pass		Special Mention		Substandard		Doubtful
	(In thousands)
June 30, 2020
1 – 4 family	$	50,717	$	—	$	—	$	—
Commercial		296,435		—		119		—
Multifamily		150,111		—		—		—
Commercial real estate		54,284		—		—		—
Construction		—		—		—		—
Consumer		38,071		2,758		1,320		—
Total	$	589,618	$	2,758	$	1,439	$	—

	Pass		Special Mention		Substandard		Doubtful
	(In thousands)
December 31, 2019
1 – 4 family	$	48,140	$	—	$	—	$	—
Commercial		257,832		—		125		—
Multifamily		152,633		—		—		—
Commercial real estate		52,477		—		—		—
Construction		6,450		—		—		—
Consumer		42,431		3,415		1,476		—
Total	$	559,963	$	3,415	$	1,601	$	—