Note 6: Allowance for Loan Losses and Foreclosed Real Estate

Summarized in the tables below are changes in the allowance for loan losses for the indicated periods and information pertaining to the allocation of the allowance for loan losses, balances of the allowance for loan losses, loans receivable based on individual, and collective impairment evaluation by loan portfolio class. An allocation of a portion of the allowance to a given portfolio class does not limit the Company’s ability to absorb losses in another portfolio class.


	For the three months ended September 30, 2019
	Secured by		Secured by
	one-to-four		multi-family						Home equity
	family residences		residences		Construction		Commercial		lines of credit		Commercial		Other/
(In thousands)	real estate loans		real estate loans		real estate loans		real estate loans		real estate loans		& industrial		Unallocated		Total
Allowance for loan losses:
Beginning Balance	$	805	$	74	$	20	$	482	$	105	$	125	$	50	$	1,661
Charge-offs		–		–		–		–		–		–		–		–
Recoveries		–		–		–		–		–		–		–		–
Provisions (Credits)		20		8		9		(2)		(3)		(1)		44		75
Ending balance	$	825	$	82	$	29	$	480	$	102	$	124	$	94	$	1,736
Ending balance: related to loans individually evaluated for impairment		–		–		–		180		–		30		–		210
Ending balance: related to loans collectively evaluated for impairment	$	825	$	82	$	29	$	300	$	102	$	94	$	94	$	1,526
Loans receivables:
Ending balance	$	215,400	$	10,973	$	5,706	$	21,961	$	17,101	$	7,296	$	47	$	278,484
Ending balance: related to loans individually evaluated for impairment		–		–		–		944		–		45		–		989
Ending balance: related to loans collectively evaluated for impairment	$	215,400	$	10,973	$	5,706	$	21,017	$	17,101	$	7,251	$	47	$	277,495


	For the three months ended September 30, 2018
	Secured by		Secured by
	one-to-four		multi-family						Home equity
	family residences		residences		Construction		Commercial		lines of credit		Commercial		Other/
(In thousands)	real estate loans		real estate loans		real estate loans		real estate loans		real estate loans		& industrial		Unallocated		Total
Allowance for loan losses:
Beginning Balance	$	803	$	78	$	33	$	211	$	103	$	54	$	129	$	1,411
Charge-offs		–		–		–		–		–		–		–		–
Recoveries		–		–		–		–		–		–		–		–
Provisions (Credits)		85		–		(2)		53		1		19		(81)		75
Ending balance	$	888	$	78	$	31	$	264	$	104	$	73	$	48	$	1,486
Ending balance: related to loans individually evaluated for impairment		–		–		–		–		–		–		–		–
Ending balance: related to loans collectively evaluated for impairment	$	888	$	78	$	31	$	264	$	104	$	73	$	48	$	1,486
Loans receivables:
Ending balance	$	219,841	$	10,337	$	6,277	$	21,650	$	17,012	$	5,399	$	56	$	280,572
Ending balance: related to loans individually evaluated for impairment		–		–		–		–		–		–		–		–
Ending balance: related to loans collectively evaluated for impairment	$	219,841	$	10,337	$	6,277	$	21,650	$	17,012	$	5,399	$	56	$	280,572


	For the nine months ended September 30, 2019
	Secured by		Secured by
	one-to-four		multi-family						Home equity
	family residences		residences		Construction		Commercial		lines of credit		Commercial		Other/
(In thousands)	real estate loans		real estate loans		real estate loans		real estate loans		real estate loans		& industrial		Unallocated		Total
Allowance for loan losses:
Beginning Balance	$	866	$	77	$	24	$	284	$	103	$	97	$	110	$	1,561
Charge-offs		–		–		–		–		–		–		–		–
Recoveries		–		–		–		–		–		–		–		–
Provisions (Credits)		(41)		5		5		196		(1)		27		(16)		175
Ending balance	$	825	$	82	$	29	$	480	$	102	$	124	$	94	$	1,736
Ending balance: related to loans individually evaluated for impairment		–		–		–		180		–		30		–		210
Ending balance: related to loans collectively evaluated for impairment	$	825	$	82	$	29	$	300	$	102	$	94	$	94	$	1,526
Loans receivables:
Ending balance	$	215,400	$	10,973	$	5,706	$	21,961	$	17,101	$	7,296	$	47	$	278,484
Ending balance: related to loans individually evaluated for impairment		–		–		–		944		–		45		–		989
Ending balance: related to loans collectively evaluated for impairment	$	215,400	$	10,973	$	5,706	$	21,017	$	17,101	$	7,251	$	47	$	277,495


	For the nine months ended September 30, 2018
	Secured by		Secured by
	one-to-four		multi-family						Home equity
	family residences		residences		Construction		Commercial		lines of credit		Commercial		Other/
(In thousands)	real estate loans		real estate loans		real estate loans		real estate loans		real estate loans		& industrial		Unallocated		Total
Allowance for loan losses:
Beginning Balance	$	816	$	80	$	54	$	148	$	107	$	47	$	9	$	1,261
Charge-offs		–		–		–		–		–		–		–		–
Recoveries		–		–		–		–		–		–		–		–
Provisions (Credits)		72		(2)		(23)		116		(3)		26		39		225
Ending balance	$	888	$	78	$	31	$	264	$	104	$	73	$	48	$	1,486
Ending balance: related to loans individually evaluated for impairment		–		–		–		–		–		–		–		–
Ending balance: related to loans collectively evaluated for impairment	$	888	$	78	$	31	$	264	$	104	$	73	$	48	$	1,486
Loans receivables:
Ending balance	$	219,841	$	10,337	$	6,277	$	21,650	$	17,012	$	5,399	$	56	$	280,572
Ending balance: related to loans individually evaluated for impairment		–		–		–		–		–		–		–		–
Ending balance: related to loans individually evaluated for impairment	$	219,841	$	10,337	$	6,277	$	21,650	$	17,012	$	5,399	$	56	$	280,572

The Company had no foreclosed real estate at September 30, 2019 or December 31, 2018.

At September 30, 2019, the Company had one commercial real estate loan for $248,000 and one residential real estate loan for $55,000 in the process of foreclosure and at December 31, 2018, the Company had one residential real estate loan for $55,000 in the process of foreclosure.