Loans Receivable and Allowance for Loan Losses (Tables)

12 Months Ended

Dec. 31, 2019

Schedule of Accounts, Notes, Loans and Financing Receivable

The composition of total loans receivable at December 31, 2019 and 2018 was as follows:



	At December 31, 2019		At December 31, 2018
	(In thousands)
Residential mortgage:
One-to-four family	$	130,966	$	143,391
Home equity	22,853		24,365
	153,819		167,756
Commercial and multi-family real estate	227,441		212,606
Construction	47,635		29,628
Commercial and industrial - Secured	63,462		60,426
Commercial and industrial - Unsecured	37,600		48,176
	376,138		350,836
Consumer:	432		540
Total loans receivable	530,389		519,132
Less:
Loans in process	16,109		10,677
Deferred loan fees	536		501
Allowance for loan losses	5,722		5,655
Total adjustments	22,367		16,833
Loans receivable, net	$	508,022	$	502,299

Allowance for Credit Losses on Financing Receivables

The following tables provide an analysis of the allowance for loan losses and the loan receivable balances, by the portfolio segment segregated into the amount required for loans individually evaluated for impairment and the amount required for loans collectively evaluated for impairment as of December 31, 2019 and 2018:



	Year Ended December 31, 2019
(in thousands)	Residential Mortgage			Commercial and Multi-Family Real Estate		Construction		Commercial and Industrial			Consumer			Unallocated		Total
Allowance for loan losses:
Balance, beginning	$	2,115		$	2,187	$	222	$	1,128		$	3		$	—	$	5,655
Provisions	(438		)	425		211		(199		)	1			—		—
Loans charged-off	—			—		—		—			(4		)	—		(4		)
Recoveries	69			—		—		—			2			—		71
Balance, ending	$	1,746		$	2,612	$	433	$	929		$	2		$	—	$	5,722
Period-end allowance allocated to:
Loans individually evaluated for impairment	$	234		$	74	$	—	$	—		$	—		$	—	$	308
Loans collectively evaluated for impairment	1,512			2,538		433		929			2			—		$	5,414
Ending balance	$	1,746		$	2,612	$	433	$	929		$	2		$	—	$	5,722
Period-end loan balances evaluated for:
Loans individually evaluated for impairment	$	10,199		$	2,337	$	—	$	24		$	—		$	—	$	12,560
Loans collectively evaluated for impairment	143,570			224,760		31,465		100,957			432			—		501,184
Ending balance	$	153,769		$	227,097	$	31,465	$	100,981		$	432		$	—	$	513,744



	Year Ended December 31, 2018
(in thousands)	Residential Mortgage		Commercial and Multi-Family Real Estate			Construction			Commercial and Industrial		Consumer			Unallocated			Total
Allowance for loan losses:
Balance, beginning	$	1,852	$	2,267		$	302		$	710	$	5		$	278		$	5,414
Provisions	255		(80		)	(80		)	418		5			(278		)	$	240
Loans charged-off	—		—			—			—		(8		)	—			$	(8	)
Recoveries	8		—			—			—		1			—			$	9
Balance, ending	$	2,115	$	2,187		$	222		$	1,128	$	3		$	—		$	5,655
Period-end allowance allocated to:
Loans individually evaluated for impairment	$	326	$	69		$	—		$	20	$	—		$	—		$	415
Loans collectively evaluated for impairment	1,789		2,118			222			1,108		3			—			5,240
Ending balance	$	2,115	$	2,187		$	222		$	1,128	$	3		$	—		$	5,655
Period-end loan balances evaluated for:
Loans individually evaluated for impairment	$	11,960	$	2,411		$	—		$	243	$	—		$	—		$	14,614
Loans collectively evaluated for impairment	155,746		209,879			18,905			108,270		540			—			493,340
Ending balance	$	167,706	$	212,290		$	18,905		$	108,513	$	540		$	—		$	507,954

Past Due Financing Receivables



As of December 31, 2018	30-59 Days Past Due and Still Accruing		60-89 Days Past Due and Still Accruing		Greater than 90 Days and Still Accruing		Total Past Due and Still Accruing		Accruing Current Balances		Nonaccrual Loans(1)		Total Loans Receivables
	(In thousands)
Residential Mortgage
One-to-four family	$	1,328	$	365	$	2	$	1,695	$	139,371	$	2,276	$	143,342
Home equity	1,602		75		—		$	1,677	22,079		608		24,364
Commercial and multi-family real estate	—		—		—		$	—	211,258		1,032		212,290
Construction	—		—		—		$	—	18,905		—		18,905
Commercial and industrial	—		—		—		$	—	108,298		215		108,513
Consumer	1		—		—		$	1	539		—		540
Total	$	2,931	$	440	$	2	$	3,373	$	500,450	$	4,131	$	507,954

The following table represents the classes of the loans receivable portfolio summarized by aging categories of performing loans and nonaccrual loans as of December 31, 2019 and 2018:



As of December 31, 2019	30-59 Days Past Due and Still Accruing		60-89 Days Past Due and Still Accruing		Greater than 90 Days and Still Accruing		Total Past Due and Still Accruing		Accruing Current Balances		Nonaccrual Loans		Total Loans Receivables
	(In thousands)
Residential Mortgage
One-to-four family	$	1,719	$	287	$	—	$	2,006	$	127,747	$	1,169	$	130,922
Home equity	160		—		—		160		21,744		943		22,847
Commercial and multi-family real estate	260		—		—		260		225,841		996		227,097
Construction	—		—		—		—		31,465		—		31,465
Commercial and industrial	—		—		—		—		100,981		—		100,981
Consumer	3		—		—		3		429		—		432
Total	$	2,142	$	287	$	—	$	2,429	$	508,207	$	3,108	$	513,744

Impaired Financing Receivables

The following tables provide an analysis of the impaired loans at December 31, 2019 and 2018 and the average balances of such loans for the years then ended:



(In Thousands)
December 31, 2019	Recorded Investment		Loans with No Related Reserve		Loans with Related Reserve		Related Reserve		Contractual Principal Balance		Average Loan Balances
Residential mortgage
One-to-four family	$	8,560	$	1,169	$	7,391	$	200	$	9,215	$	9,469
Home equity	1,639		1,267		372		34		1,740		1,750
Commercial and multi-family real estate	2,337		1,362		975		74		3,080		2,357
Construction	—		—		—		—		—		—
Commercial and industrial	24		24		—		—		25		153
Consumer	—		—		—		—		—		—
Total	$	12,560	$	3,822	$	8,738	$	308	$	14,060	$	13,729



(In Thousands)
December 31, 2018	Recorded Investment		Loans with No Related Reserve		Loans with Related Reserve		Related Reserve		Contractual Principal Balance		Average Loan Balances
Residential mortgage
One-to-four family	$	10,224	$	1,956	$	8,268	$	298	$	10,907	$	10,392
Home equity	1,736		609		1,127		28		1,827		1,484
Commercial and multi-family real estate	2,411		1,405		1,006		69		3,067		2,059
Construction	—		—		—		—		—		—
Commercial and industrial	243		223		20		20		262		149
Consumer	—		—		—		—		—		1
Total	$	14,614	$	4,193	$	10,421	$	415	$	16,063	$	14,085

Financing Receivable Credit Quality Indicators

The following table presents the classes of the loans receivable portfolio summarized by the aggregate "Pass" and the criticized categories of "Special Mention", "Substandard", "Doubtful" and "Loss" within the internal risk rating system as of December 31, 2019 and 2018:



As of December 31, 2019	Pass		Special Mention		Substandard		Doubtful		Loss		Total
	(In thousands)
Commercial and multi-family real estate	$	223,975	$	1,490	$	1,632	$	—	$	—	$	227,097
Construction	31,465		—		—		—		—		31,465
Commercial and industrial	100,838		58		85		—		—		100,981
Total	$	356,278	$	1,548	$	1,717	$	—	$	—	$	359,543



As of December 31, 2018	Pass		Special Mention		Substandard		Doubtful		Loss		Total
	(In thousands)
Commercial and multi-family real estate	$	209,206	$	1,367	$	1,717	$	—	$	—	$	212,290
Construction	18,905		—		—		—		—		18,905
Commercial and industrial	108,025		69		419		—		—		108,513
Total	$	336,136	$	1,367	$	1,717	$	—	$	—	$	339,708

Schedule of Financing Receivables Performance Status

Loans greater than 90 days past due are generally considered nonperforming and placed on nonaccrual status.



	Residential mortgage				Consumer				Total Residential and Consumer
As of December 31,	2019		2018		2019		2018		2019		2018
	(In thousands)
Nonperforming	$	2,112	$	2,884	$	—	$	—	$	2,112	$	2,884
Performing	151,657		164,822		432		540		$	152,089	$	165,362
Total	$	153,769	$	167,706	$	432	$	540	$	154,201	$	168,246

Troubled Debt Restructurings on Financing Receivables

The following tables summarize by class loans modified into TDRs during the year ended December 31, 2019 and 2018:



	Year Ended December 31, 2019
	Number of Contracts	Pre-Modification Outstanding Recorded Investments		Post-Modification Outstanding Recorded Investments
		(Dollars in thousands)

Residential Mortgage
One-to-four family	1	$	421	$	460
Commercial and multi-family real estate	1	794		791

Total	2	$	1,215	$	1,251



	Year Ended December 31, 2018
	Number of Contracts	Pre-Modification Outstanding Recorded Investments		Post-Modification Outstanding Recorded Investments
		(Dollars in thousands)

Commercial and multi-family real estate	1	374		392

Total	1	$	374	$	392