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LOANS RECEIVABLE, NET
 9 Months Ended
Sep. 30, 2021
Receivables [Abstract]  
LOANS RECEIVABLE, NET LOANS RECEIVABLE, NET
A summary of loans receivable, net at September 30, 2021 and December 31, 2020, is as follows:

 September 30, 2021 December 31, 2020
(In thousands)
Residential one-to-four family$522,213 $611,603 
Multifamily511,408 427,436 
Non-residential130,823 128,141 
Construction and land21,337 33,691 
Junior liens19,540 23,814 
Commercial and industrial (including PPP)44,262 54,053 
Consumer and other80 99 
Total loans1,249,663 1,278,837 
Deferred fees, costs and premiums and discounts, net4,560 5,236 
Allowance for loan losses(15,248)(16,959)
(10,688)(11,723)
Loans receivable, net$1,238,975 $1,267,114 

The commercial and industrial portfolio is comprised of $41.1 million of PPP loans as well as $3.2 million of general commercial and industrial loans, including Small Business Administration (“SBA”), as of September 30, 2021.

The portfolio classes in the above table have unique risk characteristics with respect to credit quality:

•Payment on multifamily and non-residential mortgages is driven principally by operating results of the managed properties or underlying business and secondarily by the sale or refinance of such properties. Both primary and secondary sources of repayment, and value of the properties in liquidation, may be affected to a greater extent by adverse conditions in the real estate market or the economy in general.
•Properties underlying construction and land loans often do not generate sufficient cash flows to service debt and thus repayment is subject to ability of the borrower and, if applicable, guarantors, to complete development or construction of the property and carry the project, often for extended periods of time. As a result, the performance of these loans is contingent upon future events whose probability at the time of origination is uncertain.
•Commercial and Industrial Loans consist of SBA Paycheck Protection Program loans, and other loans that are originated or purchased. This program originated from the Coronavirus Aid Relief and Economic Security (“CARES”) Act. The SBA will forgive loans if all employee retention criteria are met, and the funds are used for eligible expenses.
•The ability of borrowers to service debt in the residential one-to-four family, junior liens and consumer loan portfolios is generally subject to personal income which may be impacted by general economic conditions, such as increased unemployment levels. These loans are predominately collateralized by first and second liens on single family properties. If a borrower cannot maintain the loan, the Company’s ability
to recover against the collateral in sufficient amount and in a timely manner may be significantly influenced by market, legal and regulatory conditions.
The following tables presents the activity in the Company’s allowance for loan losses by class of loans based on the most recent analysis performed for the three and nine months ended September 30, 2021, and 2020:

Residential
One-To-Four
Family
MultifamilyNon-Residential
Construction
and Land
Junior Liens
Commercial
and Industrial
(including PPP)
Consumer
and Other
UnallocatedTotal
(In thousands)
Three Months Ended September 30, 2021
Allowance for loan losses
Beginning balance$2,918 $5,350 $3,243 $3,185 $758 $4 $42 $93 $15,593 
Charge-offs— — — — — — (7)— (7)
Recoveries— — — — — — — — — 
(Recovery of) provision for loan losses(43)386 (116)(556)(54)39 5 1 (338)
Total ending allowance balance$2,875 $5,736 $3,127 $2,629 $704 $43 $40 $94 $15,248 
Nine Months Ended September 30, 2021
Allowance for loan losses
Beginning balance$3,579 $5,460 $3,244 $3,655 $916 $2 $48 $55 $16,959 
Charge-offs— — — — — — (12)— (12)
Recoveries— — — — — — — — — 
(Recovery of) provision for loan losses(704)276 (117)(1,026)(212)41 4 39 (1,699)
Total ending allowance balance$2,875 $5,736 $3,127 $2,629 $704 $43 $40 $94 $15,248 
Three Months Ended September 30, 2020
Allowance for loan losses
Beginning balance$3,691 $4,776 $2,742 $4,823 $1,067 $— $53 $99 $17,251 
Charge-offs— — — — — — (2)— (2)
Recoveries— — — — — — — — — 
(Recovery of) provision for loan losses(260)117 (225)(117)(39)(1)526 1 
Total ending allowance balance$3,431 $4,893 $2,517 $4,706 $1,028 $— $50 $625 $17,250 
Nine Months Ended September 30, 2020
Allowance for loan losses
Beginning balance$3,446 $4,256 $2,548 $3,028 $1,002 $— $57 $164 $14,501 
Charge-offs— — — — — — (5)— (5)
Recoveries— — — — — — — — — 
(Recovery of) provision for loan losses(15)637 (31)1,678 26 (2)461 2,754 
Total ending allowance balance$3,431 $4,893 $2,517 $4,706 $1,028 $— $50 $625 $17,250 
The following table represents the allocation of allowance for loan losses and the related recorded investment (including deferred fees and costs) in loans by loan portfolio segment disaggregated based on the impairment methodology at September 30, 2021 and December 31, 2020:

Residential
One-To-Four
Family
MultifamilyNon-Residential
Construction
and Land
Junior Liens
Commercial
and Industrial
(including PPP)
Consumer
and Other
UnallocatedTotal
(In thousands)
September 30, 2021
Allowance for loan losses:
Individually evaluated
  for impairment		$32 $— $— $— $— $— $39 $— $71 
Collectively evaluated
  for impairment		2,843 5,736 3,127 2,629 704 43 1 94 15,177 
Total$2,875 $5,736 $3,127 $2,629 $704 $43 $40 $94 $15,248 
Loans receivable:
Individually evaluated
  for impairment		$10,133 $1,032 $5,004 $— $56 $— $39 $— $16,264 
Collectively evaluated
  for impairment		516,698 511,847 125,846 21,290 19,576 42,661 41 1,237,959 
Total$526,831 $512,879 $130,850 $21,290 $19,632 $42,661 $80 $— $1,254,223 
December 31, 2020
Allowance for loan losses:
Individually evaluated
  for impairment		$49 $26 $— $— $— $— $46 $— $121 
Collectively evaluated
  for impairment		3,530 5,434 3,244 3,655 916 2 2 55 16,838 
Total$3,579 $5,460 $3,244 $3,655 $916 $2 $48 $55 $16,959 
Loans receivable:
Individually evaluated
  for impairment		$11,829 $1,721 $5,084 $— $58 $— $46 $— $18,738 
Collectively evaluated
  for impairment		604,419 427,374 123,133 33,630 23,860 52,867 52 — 1,265,335 
Total$616,248 $429,095 $128,217 $33,630 $23,918 $52,867 $98 $— $1,284,073 
The following table presents information related to impaired loans by class of loans as of September 30, 2021, September 30, 2020 and December 31, 2020:
Unpaid Principal Balance
Recorded Investment
Allowance for Loan Losses Allocated
Average Recorded Investment
Interest
Income
Recognized
Cash Basis Interest Recognized
(In thousands)
September 30, 2021
With no related allowance
  recorded:
Residential one-to-four
  family		$8,757 $9,065 $— $9,666 $9 $8 
Multifamily1,030 1,032 — 1,249 17 15 
Non-residential5,155 5,004 — 4,899 173 159 
Construction and land— — — — — — 
Commercial and
  Industrial (including PPP)		— — — — — — 
Junior liens56 56 — 57 2 2 
14,998 15,157 — 15,871 201 184 
With an allowance recorded:
Residential one-to-four
  family		1,069 1,068 32 1,297 38 34 
Multifamily— — — — — — 
Non-residential— — — — — — 
Construction and land— — — — — — 
Commercial and
  Industrial (including PPP)		— — — — — — 
Consumer and other39 39 39 42 2 1 
1,108 1,107 71 1,339 40 35 
Total$16,106 $16,264 $71 $17,210 $241 $219 
September 30, 2020
With no related allowance
recorded:
Residential one-to-four
  family		$6,399 $6,508 $— $473 $97 $96 
Multifamily1,216 1,226 — 405 45 41 
Non-residential6,006 5,812 — 2,410 207 201 
Construction and land— — — — — — 
Commercial and
  Industrial (including PPP)		— — — — — — 
Junior liens60 59 — 27 1 1 
13,681 13,605 — 3,315 350 339 
With an allowance recorded:
Residential one-to-four
  family		1,519 1,521 108 679 53 47 
Multifamily353 352 28 157 11 10 
Non-residential— — — — — — 
Construction and land— — — — — — 
Commercial and
  Industrial (including PPP)		— — — — — — 
Consumer and other49 48 48 23 1 1 
1,921 1,921 184 859 65 58 
Total$15,602 $15,526 $184 $4,174 $415 $397 
Unpaid Principal Balance
Recorded Investment
Allowance for Loan Losses Allocated
Average Recorded Investment
Interest
Income
Recognized
Cash Basis Interest Recognized
(In thousands)
December 31, 2020
With no related allowance
  recorded:
Residential one-to-four
  family		$11,161 $10,375 $— $4,143 $26 $25 
Multifamily1,360 1,371 — 1,051 40 38 
Non-residential5,678 5,084 — 5,413 243 225 
Construction and land— — — — — — 
Commercial and
  Industrial (including PPP)		— — — — — — 
Junior liens58 58 — 60 3 3 
18,257 16,888 — 10,667 312 291 
With an allowance recorded:
Residential one-to-four
  family		1,455 1,454 49 1,472 72 66 
Multifamily351 350 26 353 15 14 
Non-residential— — — — — — 
Construction and land— — — — — — 
Commercial and
  Industrial (including PPP)		— — — — — — 
Consumer and other46 46 46 49 2 2 
1,852 1,850 121 1,874 89 82 
Total$20,109 $18,738 $121 $12,541 $401 $373 


The recorded investment in loans includes deferred fees, costs and discounts. For purposes of this disclosure, the unpaid principal balance is not reduced for partial charge-offs.

The total recorded investment of loans whose terms have been modified in troubled debt restructurings was $5.5 million and $6.3 million as of September 30, 2021 and December 31, 2020, respectively. The Company has allocated $72 thousand and $95 thousand, respectively, of specific reserves to troubled debt restructured loans as of September 30, 2021 and December 31, 2020. The modification of the terms of troubled debt restructured includes one or a combination of the following: a reduction of the stated interest rate of the loan or an extension of the maturity date. The Company is not committed to lend any additional amounts to customers with outstanding loans that are classified as troubled debt restructurings as of September 30, 2021.

A troubled debt restructuring (“TDR”) loan is considered to be in payment default once it is 90 days contractually past due under the modified terms. There were no troubled debt restructurings for which there was a payment default within twelve months following the modification during the periods ended September 30, 2021 and September 30, 2020.

The Company did not record any troubled debt restructurings during the three and nine months ended September 30, 2021 and 2020, as well as during the previous year.
The following table presents the recorded investment in non-accrual loans and loans past due 90 days or more still on accrual as of September 30, 2021 and December 31, 2020:

NonaccrualLoans Past Due
90 Days and Still Accruing
9/30/202112/31/20209/30/202112/31/2020
(In thousands)
Residential one-to-four family$10,969 $11,813 $— $— 
Multifamily145 156 — — 
Non-residential1,236 805 — — 
Construction and land— — — — 
Commercial and industrial (including PPP)— — — — 
Junior liens114 82 — — 
Total$12,464 $12,856 $— $— 
The following table presents the recorded investment in past due and current loans by loan portfolio class as of September 30, 2021 and December 31, 2020:


60-89
Days
Past Due
90 Days
and Greater
Past Due
Total
Past Due
Current
Total
Loans
Receivable
(In thousands)
September 30, 2021
Residential
  one-to-four family		$542 $9,233 $9,775 $517,056 $526,831 
Multifamily— 145 145 512,734 512,879 
Non-residential191 1,262 1,453 129,397 130,850 
Construction and land— — — 21,290 21,290 
Junior liens51 56 107 19,525 19,632 
Commercial and Industrial (including PPP)— — — 42,661 42,661 
Consumer and other— — — 80 80 
Total$784 $10,696 $11,480 $1,242,743 $1,254,223 
December 31, 2020
Residential
  one-to-four family		$3,151 $10,075 $13,226 $603,022 $616,248 
Multifamily— 156 156 428,939 429,095 
Non-residential— 805 805 127,412 128,217 
Construction and land3,000 — 3,000 30,630 33,630 
Junior liens— — — 23,918 23,918 
Commercial and Industrial (including PPP)— — — 52,867 52,867 
Consumer and other— — — 98 98 
Total$6,151 $11,036 $17,187 $1,266,886 $1,284,073 
The Company categorizes loans into risk categories based on relevant information about the quality and realizable value of collateral, if any, and the ability of borrowers to service their debts such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes loans individually by classifying the loans as to credit risk. This analysis is performed whenever a credit is extended, renewed, or modified, or when an observable event occurs indicating a potential decline in credit quality, and no less than annually for large balance loans. The Company used the following definitions for risk ratings for loans classified other than Pass:

Special Mention – Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or the Company’s credit position at some future date.

Substandard – Loans classified as substandard are inadequately protected by the current sound worth and paying capacity of the obligor, or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the repayment and liquidation of the debt. They are characterized by distinct possibility that the Company will sustain some loss if the deficiencies are not corrected.

Doubtful – Loans classified as doubtful have all the weaknesses inherent in those classified as Substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently known facts, conditions, and values, highly questionable and improbable.

Loss – Assets classified as loss are considered uncollectible and of such little value that their continuance as bankable assets is not warranted.  This classification does not mean that the asset has absolutely no recovery or salvage value, but rather that it is not practical or desirable to defer writing off this basically worthless asset even though partial recovery may be effected in the future.
The following table presents the risk category of loans by class of loans based on the most recent analysis performed as of September 30, 2021 and December 31, 2020:

Pass
Special
Mention
Substandard
Doubtful /
Loss
Total
(In thousands)
September 30, 2021
Residential one-to-four family$515,423 $— $11,408 $— $526,831 
Multifamily507,027 4,820 1,032 — 512,879 
Non-residential129,306 146 1,398 — 130,850 
Construction and land21,290 — — — 21,290 
Junior liens19,519 — 113 — 19,632 
Commercial and Industrial (including PPP)42,661 — — 42,661 
Consumer and other80 — — — 80 
Total$1,235,306 $4,966 $13,951 $— $1,254,223 
December 31, 2020
Residential one-to-four family$604,167 $— $12,081 $— $616,248 
Multifamily411,369 16,648 1,078 — 429,095 
Non-residential127,089 154 974 — 128,217 
Construction and land33,630 — — — 33,630 
Junior liens23,837 — 81 — 23,918 
Commercial and Industrial (including PPP)52,867 — — — 52,867 
Consumer and other98 — — — 98 
Total$1,253,057 $16,802 $14,214 $— $1,284,073