LOANS (Tables)

3 Months Ended

Mar. 31, 2019

Receivables [Abstract]

Schedule of Portfolio of Loans

Portfolio loans consist of the following:

	March 31,			December 31,
	2019			2018
	(Dollars in thousands)
Commercial loans
Multifamily	$	163,243		$	134,143
Nonresidential		412,550			409,979
Land		17,090			16,830
Construction		135,048			141,686
Secured		240,376			233,306
Unsecured		6,364			6,987
Total commercial loans		974,671			942,931
Residential mortgage loans
One-to four-family		934,586			927,255
Construction		45,102			43,435
Total residential mortgage loans		979,688			970,690
Consumer loans
Home equity		183,956			185,661
Auto		77,921			78,686
Marine		1,131			1,206
Recreational vehicle		3,727			4,347
Other		8,263			7,141
Total consumer loans		274,998			277,041
Total loans		2,229,357			2,190,662
Less:
Allowance for loan losses		20,446			20,443
Deferred loan costs, net		(6,638	)		(6,623	)
Total		13,808			13,820
Loans, net	$	2,215,549		$	2,176,842

Investment in Loans by Portfolio Segment and Based on Impairment

The following tables present the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and are based on impairment method as of March 31, 2019 and December 31, 2018 and activity for the three months ended March 31, 2019 and 2018.

Allowance For Loan Losses

	Commercial Loans			Residential Loans			Consumer Loans			Total
	(Dollars in thousands)
For the three months ended March 31, 2019
Beginning balance	$	11,875		$	5,923		$	2,645		$	20,443
Provision (recovery)		181			(178	)		58			61
Charge-offs		(88	)		(20	)		(325	)		(433	)
Recoveries		146			98			131			375
Ending balance	$	12,114		$	5,823		$	2,509		$	20,446
As of March 31, 2019
Period-end amount allocated to:
Loans individually evaluated for impairment	$	139		$	782		$	295			1,216
Loans collectively evaluated for impairment		11,975			5,041			2,214			19,230
Ending balance	$	12,114		$	5,823		$	2,509		$	20,446
Period-end balances:
Loans individually evaluated for impairment		3,276			12,759			5,131			21,166
Loans collectively evaluated for impairment		971,395			966,929			269,867			2,208,191
Ending balance	$	974,671		$	979,688		$	274,998		$	2,229,357

Allowance For Loan Losses

	Commercial Loans		Residential Loans			Consumer Loans			Total
For the three months ended March 31, 2018
Beginning balance	$	12,542	$	5,860		$	2,800		$	21,202
Provision (recovery)		396		(93	)		104			407
Charge-offs		—		(85	)		(186	)		(271	)
Recoveries		157		19			96			272
Ending balance	$	13,095	$	5,701		$	2,814		$	21,610
As of December 31, 2018
Period-end amount allocated to:
Loans individually evaluated for impairment	$	103	$	798		$	300			1,201
Loans collectively evaluated for impairment		11,772		5,125			2,345			19,242
Loans acquired with deteriorated credit quality		—		—			—			—
Ending balance	$	11,875	$	5,923		$	2,645		$	20,443
Period-end balances:
Loans individually evaluated for impairment		2,017		13,086			5,491			20,594
Loans collectively evaluated for impairment		940,914		957,604			271,550			2,170,068
Loans acquired with deteriorated credit quality		—		—			—			—
Ending balance	$	942,931	$	970,690		$	277,041		$	2,190,662

Presentation of Loans Individually Evaluated for Impairment by Class

The following table presents loans individually evaluated for impairment by class of loans as of and for three months ended March 31, 2019:

Impaired Loans

(Dollars in thousands)

	Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses Allocated		Average Recorded Investment		Interest Income Recognized		Cash Basis Income Recognized
With no specific allowance recorded
Commercial loans
Multifamily	$	159	$	—	$	—	$	85	$	1	$	1
Nonresidential		570		127		—		129		1		1
Land		—		—		—		—		—		—
Construction		2,447		—		—		—		—		—
Secured		235		—		—		—		—		—
Unsecured		474		—		—		—		—		—
Total commercial loans		3,885		127		—		214		2		2
Residential mortgage loans
One-to four-family		5,196		4,316		—		4,612		29		20
Construction		—		—		—		—		—		—
Total residential mortgage loans		5,196		4,316		—		4,612		29		20
Consumer loans
Home equity		967		852		—		905		1		—
Auto		22		14		—		16		—		—
Marine		354		105		—		125		—		—
Recreational vehicle		410		63		—		118		2		2
Other		—		—		—		—		—		—
Total consumer loans		1,753		1,034		—		1,164		3		2
Total	$	10,834	$	5,477	$	—	$	5,990	$	34	$	24
With a specific allowance recorded
Commercial loans
Multifamily	$	—	$	—	$	—	$	—	$	—	$	—
Nonresidential		2,717		2,717		38		1,952		45		37
Land		—		—		—		—		—		—
Construction		—		—		—		—		—		—
Secured		578		432		101		482		3		3
Unsecured		—		—		—		—		—		—
Total commercial loans		3,295		3,149		139		2,434		48		40
Residential mortgage loans
One-to four-family		8,579		8,443		782		8,311		147		111
Construction		—		—		—		—		—		—
Total residential mortgage loans		8,579		8,443		782		8,311		147		111
Consumer loans
Home equity		3,747		3,664		277		3,753		61		49
Auto		—		—		—		—		—		—
Marine		89		89		1		90		1		1
Recreational vehicle		357		344		17		306		6		5
Other		—		—		—		—		—		—
Total consumer loans		4,193		4,097		295		4,149		68		55
Total		16,067		15,689		1,216		14,894		263		206
Total impaired loans	$	26,901	$	21,166	$	1,216	$	20,884	$	297	$	230

The following table presents loans individually evaluated for impairment by class of loans as of and for three months ended March 31, 2018:

Impaired Loans

(Dollars in thousands)

	Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses Allocated		Average Recorded Investment		Interest Income Recognized		Cash Basis Income Recognized
With no specific allowance recorded
Commercial loans
Multifamily	$	37	$	—	$	—	$	—	$	—	$	—
Nonresidential		531		18		—		81		—		—
Land		715		9		—		9		—		—
Construction		2,467		—		—		—		—		—
Secured		1,042		902		—		898		—		—
Unsecured		184		—		—		—		—		—
Total commercial loans		4,976		929		—		988		—		—
Residential mortgage loans
One-to four-family		6,304		5,371		—		5,406		28		18
Construction		—		—		—		—		—		—
Total residential mortgage loans		6,304		5,371		—		5,406		28		18
Consumer loans
Home equity		1,252		977		—		1,018		3		2
Auto		98		62		—		38		—		—
Marine		553		181		—		181		—		—
Recreational vehicle		535		116		—		134		2		2
Other		17		16		—		10		—		—
Total consumer loans		2,455		1,352		—		1,381		5		4
Total	$	13,735	$	7,652	$	—	$	7,775	$	33	$	22
With a specific allowance recorded
Commercial loans
Multifamily	$	422	$	275	$	28	$	275	$	—	$	—
Nonresidential		1,416		1,413		15		1,418		33		25
Land		—		—		—		—		—		—
Construction		—		—		—		—		—		—
Secured		819		558		473		585		—		—
Unsecured		—		—		—		—		—		—
Total commercial loans		2,657		2,246		516		2,278		33		25
Residential mortgage loans
One-to four-family		10,403		10,218		967		10,459		150		108
Construction		—		—		—		—		—		—
Total residential mortgage loans		10,403		10,218		967		10,459		150		108
Consumer loans
Home equity		4,558		4,475		319		4,658		69		56
Auto		—		—		—		—		—		—
Marine		97		97		1		99		1		1
Recreational vehicle		406		393		18		400		6		5
Other		—		—		—		—		—		—
Total consumer loans		5,061		4,965		338		5,157		76		62
Total		18,121		17,429		1,821		17,894		259		195
Total impaired loans	$	31,856	$	25,081	$	1,821	$	25,669	$	292	$	217

The following table presents loans individually evaluated for impairment by class of loans as of December 31, 2018:

Impaired Loans

(Dollars in thousands)

	Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses Allocated
With no specific allowance recorded
Commercial loans
Multifamily	$	443	$	170	$	—
Nonresidential		588		130		—
Land		—		—		—
Construction		2,447		—		—
Secured		806		—		—
Unsecured		474		—		—
Total commercial loans		4,758		300		—
Residential mortgage loans
One-to four-family		5,840		4,908		—
Construction		—		—		—
Total residential mortgage loans		5,840		4,908		—
Consumer loans
Home equity		1,084		957		—
Auto		25		17		—
Marine		502		145		—
Recreational vehicle		592		172		—
Other		—		—		—
Total consumer loans		2,203		1,291		—
Total	$	12,801	$	6,499	$	—
With a specific allowance recorded
Commercial loans
Multifamily	$	—	$	—	$	—
Nonresidential		1,186		1,186		12
Land		—		—		—
Construction		—		—		—
Secured		989		531		91
Unsecured		—		—		—
Total commercial loans		2,175		1,717		103
Residential mortgage loans
One-to four-family		8,298		8,178		798
Construction		—		—		—
Total residential mortgage loans		8,298		8,178		798
Consumer loans
Home equity		3,925		3,842		283
Auto		—		—		—
Marine		91		91		1
Recreational vehicle		279		267		16
Other		—		—		—
Total consumer loans		4,295		4,200		300
Total		14,768		14,095		1,201
Total impaired loans	$	27,569	$	20,594	$	1,201

Loans in Process of Foreclosure

The table below presents loans that are in the process of foreclosure at March 31, 2019 and December 31, 2018, but legal title, deed in lieu of foreclosure or similar legal agreement to the property has not yet been obtained:

	March 31, 2019				December 31, 2018
	Unpaid Principal Balance		Recorded Investment		Unpaid Principal Balance		Recorded Investment
	(Dollars in thousands)				(Dollars in thousands)
Mortgage loans in process of foreclosure	$	3,255	$	3,010	$	3,687	$	3,636
Consumer loans in process of foreclosure		493		485		700		685

Presentation of Recorded Investment in Nonaccrual Loans and Loans Past Due Over 90 Days and Still on Accrual by Class of Loans

The following table presents the recorded investment in nonaccrual loans and loans past due over 90 days and still on accrual by class of loans as of March 31, 2019:

Nonaccrual Loans and Loans Past Due Over 90 Days and Still Accruing

As of March 31, 2019

	Nonaccrual		Loans past due over 90 days and still accruing
	(Dollars in thousands)
Commercial loans
Multifamily	$	—	$	—
Nonresidential		1,565		—
Land		—		—
Construction		—		—
Secured		456		—
Unsecured		—		—
Total commercial loans		2,021		—
Residential mortgage loans
One-to four-family		3,883		—
Construction		—		—
Total residential mortgage loans		3,883		—
Consumer Loans
Home equity		899		—
Auto		133		—
Marine		105		—
Recreational vehicle		46		—
Other		20		—
Total consumer loans		1,203		—
Total nonaccrual loans and loans past due over 90 days and still accruing	$	7,107	$	—

The following table presents the recorded investment in nonaccrual loans and loans past due over 90 days and still on accrual by class of loans as of December 31, 2018:

Nonaccrual Loans and Loans Past Due Over 90 Days and Still Accruing

As of December 31, 2018

	Nonaccrual		Loans past due over 90 days and still accruing
	(Dollars in thousands)
Commercial loans
Multifamily	$	171	$	—
Nonresidential		13		—
Land		—		—
Construction		—		—
Secured		531		—
Unsecured		—		—
Total commercial loans		715		—
Residential mortgage loans
One-to four-family		4,170		—
Construction		—		—
Total residential mortgage loans		4,170		—
Consumer Loans
Home equity		1,223		—
Auto		131		—
Marine		145		—
Recreational vehicle		145		—
Other		10		—
Total consumer loans		1,654		—
Total nonaccrual loans and loans past due over 90 days and still accruing	$	6,539	$	—

Presentation of Age Analysis of Past-Due Loans, Segregated by Class of Loans

The following table presents an age analysis of past-due loans, segregated by class of loans as of March 31, 2019:

Past Due Loans

(Dollars in thousands)

	30-59 Days Past Due		60-89 Days Past Due		Greater than 90 Days Past Due		Total Past Due		Current Loans		Total Loans
Commercial loans
Multifamily	$	—	$	—	$	—	$	—	$	163,243	$	163,243
Nonresidential		106		—		—		106		412,444		412,550
Land		40		—		—		40		17,050		17,090
Construction		—		—		—		—		135,048		135,048
Secured		205		—		142		347		240,029		240,376
Unsecured		—		—		—		—		6,364		6,364
Total commercial loans		351		—		142		493		974,178		974,671
Residential mortgage loans
One-to four-family		1,027		1,563		3,136		5,726		928,860		934,586
Construction		—		—		—		—		45,102		45,102
Total residential mortgage loans		1,027		1,563		3,136		5,726		973,962		979,688
Consumer Loans:
Home equity		673		324		769		1,766		182,190		183,956
Automobile		158		54		133		345		77,576		77,921
Marine		—		—		105		105		1,026		1,131
Recreational vehicle		170		345		46		561		3,166		3,727
Other		7		17		20		44		8,219		8,263
Total consumer loans		1,008		740		1,073		2,821		272,177		274,998
Total loans	$	2,386	$	2,303	$	4,351	$	9,040	$	2,220,317	$	2,229,357

The following table presents an age analysis of past-due loans, segregated by class of loans as of December 31, 2018:

Past Due Loans

(Dollars in thousands)

	30-59 Days Past Due		60-89 Days Past Due		Greater than 90 Days Past Due		Total Past Due		Current Loans		Total Loans
Commercial loans
Multifamily	$	—	$	—	$	171	$	171	$	133,972	$	134,143
Nonresidential		—		—		—		—		409,979		409,979
Land		—		—		—		—		16,830		16,830
Construction		—		—		—		—		141,686		141,686
Secured		195		—		531		726		232,580		233,306
Unsecured		—		—		—		—		6,987		6,987
Total commercial loans		195		—		702		897		942,034		942,931
Residential mortgage loans
One-to four-family		2,139		882		3,470		6,491		920,764		927,255
Construction		—		—		—		—		43,435		43,435
Total residential    mortgage loans		2,139		882		3,470		6,491		964,199		970,690
Consumer Loans:
Home equity		658		295		1,147		2,100		183,561		185,661
Automobile		283		112		131		526		78,160		78,686
Marine		—		—		145		145		1,061		1,206
Recreational vehicle		548		—		145		693		3,654		4,347
Other		33		—		10		43		7,098		7,141
Total consumer loans		1,522		407		1,578		3,507		273,534		277,041
Total loans	$	3,856	$	1,289	$	5,750	$	10,895	$	2,179,767	$	2,190,662

Loans by Class Modified as Troubled Debt Restructurings

The following table presents loans by class modified as troubled debt restructurings that occurred during the three months ended March 31, 2019:

	Number of Loans		Pre-Modification Outstanding Recorded Investment		Post-Modification Recorded Investment
			(In thousands)
Commercial loans
Multifamily		—	$	—	$	—
Nonresidential		—		—		—
Land		—		—		—
Construction		—		—		—
Secured		—		—		—
Unsecured		—		—		—
Total commercial loans		—		—		—
Residential mortgage loans
One-to four-family		1		335		355
Construction		—		—		—
Total residential mortgage loans		1		335		355
Consumer loans
Home equity		—		—		—
Auto		—		—		—
Marine		—		—		—
Recreational vehicle		—		—		—
Other		—		—		—
Total consumer loans		—		—		—
Total restructured loans		1	$	335	$	355

The following table presents loans by class modified as troubled debt restructurings that occurred during the three months ended March 31, 2018:

	Number of Loans		Pre-Modification Outstanding Recorded Investment		Post-Modification Recorded Investment
			(Dollars in thousands)
Commercial loans
Multifamily		—	$	—	$	—
Nonresidential		1		124		124
Land		—		—		—
Construction		—		—		—
Secured		—		—		—
Unsecured		—		—		—
Total commercial loans		1		124		124
Residential mortgage loans
One-to four-family		—		—		—
Construction		—		—		—
Total residential mortgage loans		—		—		—
Consumer loans
Home equity		—		—		—
Auto		—		—		—
Marine		—		—		—
Recreational vehicle		—		—		—
Other		—		—		—
Total consumer loans		—		—		—
Total restructured loans		1	$	124	$	124

Loans by Class Modified as Troubled Debt Restructurings with Payment Default

The following table presents loans by class modified as troubled debt restructurings for which there was a payment default within a twelve month cycle following the modification during the period ended March 31, 2018:

	Number of loans		Recorded Investment
			(Dollars in thousands)
Commercial loans
Multifamily		—	$	—
Nonresidential		—		—
Land		—		—
Construction		—		—
Secured		—		—
Unsecured		—		—
Total commercial loans		—		—
Residential mortgage loans
One-to four-family		1		148
Construction		—		—
Total residential mortgage loans		1		148
Consumer loans
Home equity		—		—
Auto		—		—
Marine		—		—
Recreational vehicle		—		—
Other		—		—
Total consumer loans		—		—
Total restructured loans		1	$	148

Risk Category of Loans by Class of Loans

As of March 31, 2019 and December 31, 2018, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows:

March 31, 2019

(Dollars in thousands)

	Unclassified				Classified
	Unclassified		Special Mention		Substandard		Doubtful		Loss		Total Classified		Total Loans
Commercial Loans
Multifamily	$	162,152	$	—	$	1,091	$	—	$	—	$	1,091	$	163,243
Nonresidential		380,753		20,337		11,460		—		—		11,460		412,550
Land		17,090		—		—		—		—		—		17,090
Construction		132,709		2,339		—		—		—		—		135,048
Secured		223,544		2,138		14,694		—		—		14,694		240,376
Unsecured		6,272		—		92		—		—		92		6,364
Total commercial loans		922,520		24,814		27,337		—		—		27,337		974,671
Residential mortgage loans
One-to four-family		929,154		97		5,335		—		—		5,335		934,586
Construction		45,102		—		—		—		—		—		45,102
Total residential mortgage loans		974,256		97		5,335		—		—		5,335		979,688
Consumer Loans
Home equity		183,058		—		898		—		—		898		183,956
Auto		77,788		—		133		—		—		133		77,921
Marine		1,026		—		105		—		—		105		1,131
Recreational vehicle		3,681		—		46		—		—		46		3,727
Other		8,243		—		20		—		—		20		8,263
Total consumer loans		273,796		—		1,202		—		—		1,202		274,998
Total loans	$	2,170,572	$	24,911	$	33,874	$	—	$	—	$	33,874	$	2,229,357

December 31, 2018

(Dollars in thousands)

	Unclassified				Classified
	Unclassified		Special Mention		Substandard		Doubtful		Loss		Total Classified		Total Loans
Commercial Loans
Multifamily	$	133,972	$	—	$	171	$	—	$	—	$	171	$	134,143
Nonresidential		378,160		18,420		13,399		—		—		13,399		409,979
Land		16,830		—		—		—		—		—		16,830
Construction		139,540		2,146		—		—		—		—		141,686
Secured		214,924		2,184		16,198		—		—		16,198		233,306
Unsecured		6,894		—		93		—		—		93		6,987
Total commercial loans		890,320		22,750		29,861		—		—		29,861		942,931
Residential mortgage loans
One-to four-family		921,694		591		4,970		—		—		4,970		927,255
Construction		43,435		—		—		—		—		—		43,435
Total residential mortgage loans		965,129		591		4,970		—		—		4,970		970,690
Consumer Loans
Home equity		184,438		—		1,223		—		—		1,223		185,661
Auto		78,551		—		135		—		—		135		78,686
Marine		1,061		—		145		—		—		145		1,206
Recreational vehicle		4,221		—		126		—		—		126		4,347
Other		7,131		—		10		—		—		10		7,141
Total consumer loans		275,402		—		1,639		—		—		1,639		277,041
Total loans	$	2,130,851	$	23,341	$	36,470	$	—	$	—	$	36,470	$	2,190,662

Accretable Yield or Income Expected to be Collected

Accretable yield, or income expected to be collected, is as follows:

	Three Months Ended		Three Months Ended
	March 31, 2019		March 31, 2018
	(Dollars in thousands)
Beginning of period	$	—	$	110
New loans purchased		—		—
Principal payments received		—		—
Disposals		—		—
Balance at end of period	$	—	$	110

Carrying Amount of Purchased Credit Impaired Loans

Income is not recognized on purchased credit impaired loans if the Company cannot reasonably estimate cash flows expected to be collected.  The carrying amounts of such loans are as follows:

	March 31, 2019		March 31, 2018
	(Dollars in thousands)
Loans at beginning of period	$	—	$	1,194
Loans purchased during the period		—		—
Loans at end of period		—		1,184