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Note 3 - Loans and Allowance for Loan Losses
 12 Months Ended
Dec. 31, 2017
Notes to Financial Statements  
Loans, Notes, Trade and Other Receivables Disclosure [Text Block]
3.
Loans and Allowance for Loan Losses
 
The composition of loans is as follows at
December 31:
 
    2017   2016
    (In thousands)
Multi-family residential   $
2,273,595
     $
2,178,504
  
Commercial real estate    
1,368,112
      
1,246,132
  
One-to-four family
― mixed-use property
    
564,206
      
558,502
  
One-to-four family
― residential
    
180,663
      
185,767
  
Co-operative apartments    
6,895
      
7,418
  
Construction    
8,479
      
11,495
  
Small Business Administration    
18,479
      
15,198
  
Taxi medallion    
6,834
      
18,996
  
Commercial business and other    
732,973
      
597,122
  
Gross loans    
5,160,236
      
4,819,134
  
Net unamortized premiums and unearned loan fees    
16,763
      
16,559
  
Total loans, net of fees and costs   $
5,176,999
     $
4,835,693
  
 
The majority of our loan portfolio is invested in multi-family residential, commercial real estate and commercial business and other loans, which totaled
84.8%
and
83.5%
of our gross loans at
December 31, 2017
and
2016,
respectively. Our concentration in these types of loans increases the overall level of credit risk inherent in our loan portfolio. The greater risk associated with these types of loans could require us to increase our provisions for loan losses and to maintain an ALL as a percentage of total loans in excess of the allowance currently maintained. At
December 31, 2017,
we were servicing
$38.8
 million of mortgage loans and
$14.9
million of SBA loans for others.
 
Loans secured by multi-family residential property and commercial real estate generally involve a greater degree of risk than residential mortgage loans and generally carry larger loan balances. The increased credit risk is the result of several factors, including the concentration of principal in a smaller number of loans and borrowers, the effects of general economic conditions on income producing properties and the increased difficulty in evaluating and monitoring these types of loans. Furthermore, the repayments of loans secured by these types of properties are typically dependent upon the successful operation of the related property, which is usually owned by a legal entity with the property being the entity’s only asset. If the cash flow from the property is reduced, the borrower’s ability to repay the loan
may
be impaired. If the borrower defaults, our only remedy
may
be to foreclose on the property, for which the market value
may
be less than the balance due on the related mortgage loan.
 
Loans secured by commercial business and other loans involve a greater degree of risk for the same reasons as for multi-family residential and commercial real estate loans with the added risk that many of the loans are
not
secured by improved properties.
 
To minimize the risks involved in the origination of multi-family residential, commercial real estate and commercial business and other loans, the Bank adheres to strict underwriting standards, which include reviewing the expected net operating income generated by the real estate collateral securing the loan, the age and condition of the collateral, the financial resources and income level of the borrower and the borrower’s experience in owning or managing similar properties. We typically require debt service coverage of at least
125%
of the monthly loan payment. We generally originate these loans up to a maximum of
75%
of the appraised value or the purchase price of the property, whichever is less. Any loan with a final loan-to-value ratio in excess of
75%
must be approved by the Bank’s Board of Directors or the Loan Committee as an exception to policy. We generally rely on the income generated by the property as the primary means by which the loan is repaid. However, personal guarantees
may
be obtained for additional security from these borrowers. Additionally, for commercial business and other loans which are
not
secured by improved properties, the Bank will secure these loans with business assets, including accounts receivables, inventory and real estate and generally require personal guarantees.
 
The following tables show loans modified and classified as TDR during the periods indicated:
 
 
 
For the year ended December 31, 2017
(Dollars in thousands)
 
Number
 
Balance
 
Modification description
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Taxi medallion
 
 
10
 
 
$
6,741
 
 
Four loans received a below market interest rate and the loan amortization was extended. Six loans had loan amortization extensions.
Total
 
 
10
 
 
$
6,741
 
 
 
 
 
    For the year ended December 31, 2016
(Dollars in thousands)   Number   Balance   Modification description
             
             
One-to-four family - residential    
2
     $
263
    
Received a below market interest rate and the loans amortization were extended
Taxi medallion    
12
      
9,764
    
Nine loans received a below market interest rate and three had their loan amortization extended
Commercial business and other    
1
      
324
    
Received a below market interest rate and the loan amortization was extended
Total    
15
     $
10,351
    
 
 
    For the year ended December 31, 2015
(Dollars in thousands)   Number   Balance   Modification description
             
                     
Small Business Administration    
1
     $
41
    
Received a below market interest rate and the loan amortization was extended
Total    
1
     $
41
    
 
 
The recorded investment of the loans modified and classified to a TDR, presented in the tables above, were unchanged as there was
no
principal forgiven in these modifications.
 
The following table shows our recorded investment for loans classified as TDR that are performing according to their restructured terms at the periods indicated:
 
    December 31, 2017   December 31, 2016
(Dollars in thousands)   Number
of contracts		   Recorded
investment		   Number
of contracts		   Recorded
investment
                 
Multi-family residential    
9
     $
2,518
      
9
     $
2,572
  
Commercial real estate    
2
      
1,986
      
2
      
2,062
  
One-to-four family - mixed-use property    
5
      
1,753
      
5
      
1,800
  
One-to-four family - residential    
3
      
572
      
3
      
591
  
Taxi medallion    
20
      
5,916
      
12
      
9,735
  
Commercial business and other    
2
      
462
      
2
      
675
  
                                 
Total performing troubled debt restructured    
41
     $
13,207
      
33
     $
17,435
  
 
During the year ended
December 31, 2017
and
2016,
there were
no
TDR loans transferred to non-performing status. The decline in the recorded investment of taxi medallion TDR loans was due to the Company recording partial charge-offs on these loans. The partial charge-offs were the result of the fair value of the underlying collateral declining. These loans continue to pay as agreed, however the Company has stopped accruing interest on these loans and records interest on the cash basis.
 
The following table shows our recorded investment for loans classified as TDR that are
not
performing according to their restructured terms at the periods indicated:
 
    December 31, 2017   December 31, 2016
(Dollars in thousands)   Number
of contracts		   Recorded
investment		   Number
of contracts		   Recorded
investment
                 
Multi-family residential    
1
     $
383
      
1
     $
396
  
                                 
Total troubled debt restructurings that subsequently defaulted    
1
     $
383
      
1
     $
396
  
 
The following table shows our non-performing loans at the periods indicated:
 
    At December 31,
(In thousands)   2017   2016
         
Loans ninety days or more past due and still accruing:                
Commercial real estate   $
2,424
     $
-
  
One-to-four family mixed-use property    
-
      
386
  
Total    
2,424
      
386
  
                 
Non-accrual mortgage loans:                
Multi-family residential    
3,598
      
1,837
  
Commercial real estate    
1,473
      
1,148
  
One-to-four family mixed-use property    
1,867
      
4,025
  
One-to-four family residential    
7,808
      
8,241
  
Total    
14,746
      
15,251
  
                 
Non-accrual non-mortgage loans:                
Small Business Administration    
46
      
1,886
  
Taxi medallion    
918
      
3,825
  
Commercial business and other    
-
      
68
  
Total    
964
      
5,779
  
                 
Total non-accrual loans    
15,710
      
21,030
  
                 
Total non-performing loans   $
18,134
     $
21,416
  
 
The following is a summary of interest foregone on non-accrual loans and loans classified as TDR for the years ended
December 31:
 
    2017   2016   2015
    (In thousands)
Interest income that would have been recognized had the loans performed in accordance with their original terms   $
1,705
     $
1,963
     $
2,387
  
Less:  Interest income included in the results of operations    
619
      
455
      
702
  
Total foregone interest   $
1,086
     $
1,508
     $
1,685
  
 
The following table shows an age analysis of our recorded investment in loans at
December 31, 2017:
 
(in thousands)   30 - 59 Days
Past Due		   60 - 89 Days
Past Due		   Greater
than
90 Days		   Total Past
Due		   Current   Total Loans
     
                         
Multi-family residential   $
2,533
     $
279
     $
3,598
     $
6,410
     $
2,267,185
     $
2,273,595
  
Commercial real estate    
1,680
      
2,197
      
3,897
      
7,774
      
1,360,338
      
1,368,112
  
One-to-four family - mixed-use property    
1,570
      
860
      
1,867
      
4,297
      
559,909
      
564,206
  
One-to-four family - residential    
1,921
      
680
      
7,623
      
10,224
      
170,439
      
180,663
  
Co-operative apartments    
-
      
-
      
-
      
-
      
6,895
      
6,895
  
Construction loans    
-
      
-
      
-
      
-
      
8,479
      
8,479
  
Small Business Administration    
-
      
-
      
-
      
-
      
18,479
      
18,479
  
Taxi medallion    
-
      
108
      
-
      
108
      
6,726
      
6,834
  
Commercial business and other    
2
      
-
      
-
      
2
      
732,971
      
732,973
  
Total   $
7,706
     $
4,124
     $
16,985
     $
28,815
     $
5,131,421
     $
5,160,236
  
 
The following table shows an age analysis of our recorded investment in loans at
December 31, 2016:
 
(in thousands)   30 - 59 Days
Past Due		   60 - 89 Days
Past Due		   Greater
than
90 Days		   Total Past
Due		   Current   Total Loans
     
                         
Multi-family residential   $
2,575
     $
287
     $
1,837
     $
4,699
     $
2,173,805
     $
2,178,504
  
Commercial real estate    
3,363
      
22
      
1,148
      
4,533
      
1,241,599
      
1,246,132
  
One-to-four family - mixed-use property    
4,671
      
762
      
4,411
      
9,844
      
548,658
      
558,502
  
One-to-four family - residential    
3,831
      
194
      
8,047
      
12,072
      
173,695
      
185,767
  
Co-operative apartments    
-
      
-
      
-
      
-
      
7,418
      
7,418
  
Construction loans    
-
      
-
      
-
      
-
      
11,495
      
11,495
  
Small Business Administration    
13
      
-
      
1,814
      
1,827
      
13,371
      
15,198
  
Taxi medallion    
-
      
-
      
3,825
      
3,825
      
15,171
      
18,996
  
Commercial business and other    
22
      
1
      
-
      
23
      
597,099
      
597,122
  
Total   $
14,475
     $
1,266
     $
21,082
     $
36,823
     $
4,782,311
     $
4,819,134
  
 
The following tables show the activity in the allowance for loan losses for the periods indicated:
 
For the year ended December 31, 2017
(in thousands)
 
Multi-family
residential
 
Commercial
real estate
 
One-to-four
family -
mixed-use
property
 
One-to-four
family -
residential
 
Co-operative
apartments
 
Construction
loans
 
Small Business
Administration
 
Taxi
medallion
 
Commercial
business and
other
 
Unallocated
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for credit losses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
 
$
5,923
 
 
$
4,487
 
 
$
2,903
 
 
$
1,015
 
 
$
-
 
 
$
92
 
 
$
481
 
 
$
2,243
 
 
$
4,492
 
 
$
593
 
 
$
22,229
 
Charge-off's
 
 
(454
)
 
 
(4
)
 
 
(39
)
 
 
(415
)
 
 
-
 
 
 
-
 
 
 
(212
)
 
 
(11,283
)
 
 
(65
)
 
 
-
 
 
 
(12,472
)
Recoveries
 
 
300
 
 
 
96
 
 
 
108
 
 
 
91
 
 
 
-
 
 
 
-
 
 
 
80
 
 
 
-
 
 
 
58
 
 
 
-
 
 
 
733
 
Provision (benefit)
 
 
54
 
 
 
64
 
 
 
(427
)
 
 
391
 
 
 
-
 
 
 
(24
)
 
 
320
 
 
 
9,040
 
 
 
1,036
 
 
 
(593
)
 
 
9,861
 
Ending balance
 
$
5,823
 
 
$
4,643
 
 
$
2,545
 
 
$
1,082
 
 
$
-
 
 
$
68
 
 
$
669
 
 
$
-
 
 
$
5,521
 
 
$
-
 
 
$
20,351
 
 
For the year ended December 31, 2016
(in thousands)
 
Multi-family
residential
 
Commercial
real estate
 
One-to-four
family -
mixed-use
property
 
One-to-four
family -
residential
 
Co-operative
apartments
 
Construction
loans
 
Small Business
Administration
 
Taxi
medallion
 
Commercial
business and
other
 
Unallocated
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for credit losses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
 
$
6,718
 
 
$
4,239
 
 
$
4,227
 
 
$
1,227
 
 
$
-
 
 
$
50
 
 
$
262
 
 
$
343
 
 
$
4,469
 
 
$
-
 
 
$
21,535
 
Charge-off's
 
 
(161
)
 
 
-
 
 
 
(144
)
 
 
(114
)
 
 
-
 
 
 
-
 
 
 
(529
)
 
 
(142
)
 
 
(69
)
 
 
-
 
 
 
(1,159
)
Recoveries
 
 
339
 
 
 
11
 
 
 
777
 
 
 
366
 
 
 
-
 
 
 
-
 
 
 
99
 
 
 
-
 
 
 
261
 
 
 
-
 
 
 
1,853
 
Provision (benefit)
 
 
(973
)
 
 
237
 
 
 
(1,957
)
 
 
(464
)
 
 
-
 
 
 
42
 
 
 
649
 
 
 
2,042
 
 
 
(169
)
 
 
593
 
 
 
-
 
Ending balance
 
$
5,923
 
 
$
4,487
 
 
$
2,903
 
 
$
1,015
 
 
$
-
 
 
$
92
 
 
$
481
 
 
$
2,243
 
 
$
4,492
 
 
$
593
 
 
$
22,229
 
 
For the year ended December 31, 2015
(in thousands)
 
Multi-family
residential
 
Commercial
real estate
 
One-to-four
family -
mixed-use
property
 
One-to-four
family -
residential
 
Co-operative
apartments
 
Construction
loans
 
Small Business
Administration
 
Taxi
medallion
 
Commercial
business and
other
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for credit losses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
 
$
8,827
 
 
$
4,202
 
 
$
5,840
 
 
$
1,690
 
 
$
-
 
 
$
42
 
 
$
279
 
 
$
11
 
 
$
4,205
 
 
$
25,096
 
Charge-off's
 
 
(474
)
 
 
(32
)
 
 
(592
)
 
 
(342
)
 
 
-
 
 
 
-
 
 
 
(34
)
 
 
-
 
 
 
(2,371
)
 
 
(3,845
)
Recoveries
 
 
269
 
 
 
168
 
 
 
76
 
 
 
375
 
 
 
-
 
 
 
-
 
 
 
40
 
 
 
-
 
 
 
312
 
 
 
1,240
 
Provision (benefit)
 
 
(1,904
)
 
 
(99
)
 
 
(1,097
)
 
 
(496
)
 
 
-
 
 
 
8
 
 
 
(23
)
 
 
332
 
 
 
2,323
 
 
 
(956
)
Ending balance
 
$
6,718
 
 
$
4,239
 
 
$
4,227
 
 
$
1,227
 
 
$
-
 
 
$
50
 
 
$
262
 
 
$
343
 
 
$
4,469
 
 
$
21,535
 
 
 
The following tables show the manner in which loans were evaluated for impairment at the periods indicated:
 
At December 31, 2017
(in thousands)
 
Multi-family
residential
 
Commercial
real estate
 
One-to-four
 family - mixed-
use property
 
One-to-four
family-
residential
 
Co-operative
apartments
 
Construction
loans
 
Small Business
Administration
 
Taxi medallion
 
Commercial
business and
other
 
Unallocated
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Financing Receivables:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ending Balance
 
$
2,273,595
 
 
$
1,368,112
 
 
$
564,206
 
 
$
180,663
 
 
$
6,895
 
 
$
8,479
 
 
$
18,479
 
 
$
6,834
 
 
$
732,973
 
 
$
-
 
 
$
5,160,236
 
Ending balance: individually evaluated for impairment
 
$
7,311
 
 
$
9,089
 
 
$
5,445
 
 
$
9,686
 
 
$
-
 
 
$
-
 
 
$
137
 
 
$
6,834
 
 
$
661
 
 
$
-
 
 
$
39,163
 
Ending balance: collectively evaluated for impairment
 
$
2,266,284
 
 
$
1,359,023
 
 
$
558,761
 
 
$
170,977
 
 
$
6,895
 
 
$
8,479
 
 
$
18,342
 
 
$
-
 
 
$
732,312
 
 
$
-
 
 
$
5,121,073
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for credit losses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ending balance: individually evaluated for impairment
 
$
205
 
 
$
177
 
 
$
198
 
 
$
56
 
 
$
-
 
 
$
-
 
 
$
-
 
 
$
-
 
 
$
6
 
 
$
-
 
 
$
642
 
Ending balance: collectively evaluated for impairment
 
$
5,618
 
 
$
4,466
 
 
$
2,347
 
 
$
1,026
 
 
$
-
 
 
$
68
 
 
$
669
 
 
$
-
 
 
$
5,515
 
 
$
-
 
 
$
19,709
 
 
At December 31, 2016
(in thousands)
 
Multi-family
residential
 
Commercial
real estate
 
One-to-four
family - mixed-
use property
 
One-to-four
family-
residential
 
Co-operative
apartments
 
Construction
loans
 
Small Business
Administration
 
Taxi medallion
 
Commercial
business and
other
 
Unallocated
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Financing Receivables:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ending Balance
 
$
2,178,504
 
 
$
1,246,132
 
 
$
558,502
 
 
$
185,767
 
 
$
7,418
 
 
$
11,495
 
 
$
15,198
 
 
$
18,996
 
 
$
597,122
 
 
$
-
 
 
$
4,819,134
 
Ending balance: individually evaluated for impairment
 
$
5,923
 
 
$
6,551
 
 
$
8,809
 
 
$
9,989
 
 
$
-
 
 
$
-
 
 
$
1,937
 
 
$
16,282
 
 
$
2,492
 
 
$
-
 
 
$
51,983
 
Ending balance: collectively evaluated for impairment
 
$
2,172,581
 
 
$
1,239,581
 
 
$
549,693
 
 
$
175,778
 
 
$
7,418
 
 
$
11,495
 
 
$
13,261
 
 
$
2,714
 
 
$
594,630
 
 
$
-
 
 
$
4,767,151
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for credit losses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ending balance: individually evaluated for impairment
 
$
232
 
 
$
179
 
 
$
417
 
 
$
60
 
 
$
-
 
 
$
-
 
 
$
90
 
 
$
2,236
 
 
$
12
 
 
$
-
 
 
$
3,226
 
Ending balance: collectively evaluated for impairment
 
$
5,691
 
 
$
4,308
 
 
$
2,486
 
 
$
955
 
 
$
-
 
 
$
92
 
 
$
391
 
 
$
7
 
 
$
4,480
 
 
$
593
 
 
$
19,003
 
 
 
The following table shows our recorded investment, unpaid principal balance and allocated allowance for loan losses for loans that were considered impaired at
December 31, 2017
and
2016:
 
    December 31, 2017   December 31, 2016
    Recorded
Investment		   Unpaid
Principal
Balance		   Related
Allowance		   Recorded
Investment		   Unpaid
Principal
Balance		   Related
Allowance
                         
    (In thousands)
With no related allowance recorded:                                                
Mortgage loans:                                                
Multi-family residential   $
5,091
     $
5,539
     $
-
     $
3,660
     $
3,796
     $
-
  
Commercial real estate    
7,103
      
7,103
      
-
      
4,489
      
4,516
      
-
  
One-to-four family mixed-use property    
4,218
      
4,556
      
-
      
6,435
      
6,872
      
-
  
One-to-four family residential    
9,272
      
10,489
      
-
      
9,560
      
11,117
      
-
  
Co-operative apartments    
-
      
-
      
-
      
-
      
-
      
-
  
Construction    
-
      
-
      
-
      
-
      
-
      
-
  
Non-mortgage loans:                                                
Small Business Administration    
137
      
151
      
-
      
416
      
509
      
-
  
Taxi medallion    
6,834
      
18,063
      
-
      
2,334
      
2,476
      
-
  
Commercial business and other    
313
      
682
      
-
      
2,072
      
2,443
      
-
  
                                                 
Total loans with no related allowance recorded    
32,968
      
46,583
      
-
      
28,966
      
31,729
      
-
  
                                                 
With an allowance recorded:                                                
Mortgage loans:                                                
Multi-family residential    
2,220
      
2,220
      
205
      
2,263
      
2,263
      
232
  
Commercial real estate    
1,986
      
1,986
      
177
      
2,062
      
2,062
      
179
  
One-to-four family mixed-use property    
1,227
      
1,227
      
198
      
2,374
      
2,376
      
417
  
One-to-four family residential    
414
      
414
      
56
      
429
      
429
      
60
  
Co-operative apartments    
-
      
-
      
-
      
-
      
-
      
-
  
Construction    
-
      
-
      
-
      
-
      
-
      
-
  
Non-mortgage loans:                                                
Small Business Administration    
-
      
-
      
-
      
1,521
      
1,909
      
90
  
Taxi medallion    
-
      
-
      
-
      
13,948
      
13,948
      
2,236
  
Commercial business and other    
348
      
348
      
6
      
420
      
420
      
12
  
                                                 
Total loans with an allowance recorded    
6,195
      
6,195
      
642
      
23,017
      
23,407
      
3,226
  
                                                 
Total Impaired Loans:                                                
Total mortgage loans   $
31,531
     $
33,534
     $
636
     $
31,272
     $
33,431
     $
888
  
                                                 
Total non-mortgage loans   $
7,632
     $
19,244
     $
6
     $
20,711
     $
21,705
     $
2,338
  
 
The following table shows our average recorded investment and interest income recognized for loans that were considered impaired for the years ended
December 31, 2017,
2016
and
2015:
 
    December 31, 2017   December 31, 2016   December 31, 2015
    Average
Recorded
Investment		   Interest
Income
Recognized		   Average
Recorded
Investment		   Interest
Income
Recognized		   Average
Recorded
Investment		   Interest
Income
Recognized
                         
    (In thousands)
With no related allowance recorded:                                                
Mortgage loans:                                                
Multi-family residential   $
3,260
     $
80
     $
4,762
     $
96
     $
8,285
     $
92
  
Commercial real estate    
6,187
      
300
      
4,753
      
169
      
4,926
      
7
  
One-to-four family mixed-use property    
5,104
      
168
      
7,914
      
141
      
10,295
      
244
  
One-to-four family residential    
9,865
      
108
      
10,233
      
82
      
12,985
      
138
  
Co-operative apartments    
-
      
-
      
-
      
-
      
153
      
-
  
Construction    
596
      
22
      
285
      
7
      
250
      
-
  
Non-mortgage loans:                                                
Small Business Administration    
207
      
11
      
369
      
20
      
299
      
1
  
Taxi medallion    
4,537
      
161
      
3,110
      
67
      
-
      
-
  
Commercial business and other    
1,267
      
98
      
2,217
      
181
      
3,912
      
253
  
                                                 
Total loans with no related allowance recorded    
31,023
      
948
      
33,643
      
763
      
41,105
      
735
  
                                                 
With an allowance recorded:                                                
Mortgage loans:                                                
Multi-family residential    
2,348
      
136
      
2,279
      
116
      
2,343
      
117
  
Commercial real estate    
2,026
      
95
      
2,145
      
100
      
997
      
167
  
One-to-four family mixed-use property    
1,341
      
65
      
2,560
      
138
      
2,983
      
151
  
One-to-four family residential    
420
      
16
      
410
      
15
      
347
      
14
  
Co-operative apartments    
-
      
-
      
-
      
-
      
-
      
-
  
Construction    
-
      
-
      
-
      
-
      
-
      
-
  
Non-mortgage loans:                                                
Small Business Administration    
-
      
-
      
616
      
42
      
38
      
2
  
Taxi medallion    
10,997
      
166
      
7,244
      
147
      
1,062
      
66
  
Commercial business and other    
375
      
22
      
827
      
45
      
2,692
      
102
  
                                                 
Total loans with an allowance recorded    
17,507
      
500
      
16,081
      
603
      
10,462
      
619
  
                                                 
Total Impaired Loans:                                                
Total mortgage loans   $
31,147
     $
990
     $
35,341
     $
864
     $
43,564
     $
930
  
                                                 
Total non-mortgage loans   $
17,383
     $
458
     $
14,383
     $
502
     $
8,003
     $
424
  
 
In accordance with our policy and the current regulatory guidelines, we designate loans as “Special Mention,” which are considered “Criticized Loans,” and “Substandard,” “Doubtful,” or “Loss,” which are considered “Classified Loans”. If a loan does
not
fall within
one
of the previously mentioned categories then the loan would be considered “Pass.” These loan designations are updated quarterly. We designate a loan as Substandard when a well-defined weakness is identified that jeopardizes the orderly liquidation of the debt. We designate a loan Doubtful when it displays the inherent weakness of a Substandard loan with the added provision that collection of the debt in full, on the basis of existing facts, is highly improbable. We designate a loan as Loss if it is deemed the debtor is incapable of repayment. The Company does
not
hold any loans designated as loss, as loans that are designated as Loss are charged to the ALL. Loans that are non-accrual are designated as Substandard, Doubtful or Loss. We designate a loan as Special Mention if the asset does
not
warrant classification within
one
of the other classifications, but does contain a potential weakness that deserves closer attention.
 
The following table sets forth the recorded investment in loans designated as Criticized or Classified at
December 31, 2017:
 
(In thousands)   Special Mention   Substandard   Doubtful   Loss   Total
                     
Multi-family residential   $
6,389
     $
4,793
     $
-
     $
-
     $
11,182
  
Commercial real estate    
2,020
      
8,871
      
-
      
-
      
10,891
  
One-to-four family - mixed-use property    
2,835
      
3,691
      
-
      
-
      
6,526
  
One-to-four family - residential    
2,076
      
9,115
      
-
      
-
      
11,191
  
Co-operative apartments    
-
      
-
      
-
      
-
      
-
  
Construction loans    
-
      
-
      
-
      
-
      
-
  
Small Business Administration
(1)
    
548
      
108
      
-
      
-
      
656
  
Taxi medallion    
-
      
6,834
      
-
      
-
      
6,834
  
Commercial business and other    
14,859
      
545
      
-
      
-
      
15,404
  
Total loans   $
28,727
     $
33,957
     $
-
     $
-
     $
62,684
  
 
(
1
)		 Balances shown are net of the portion guaranteed by the Small Business Administration totaling
$0.1
million at
December 31, 2017.
 
 
The following table sets forth the recorded investment in loans designated as Criticized or Classified at
December 31, 2016:
 
(In thousands)   Special Mention   Substandard   Doubtful   Loss   Total
                     
Multi-family residential   $
7,133
     $
3,351
     $
-
     $
-
     $
10,484
  
Commercial real estate    
2,941
      
4,489
      
-
      
-
      
7,430
  
One-to-four family - mixed-use property    
4,197
      
7,009
      
-
      
-
      
11,206
  
One-to-four family - residential    
1,205
      
9,399
      
-
      
-
      
10,604
  
Co-operative apartments    
-
      
-
      
-
      
-
      
-
  
Construction loans    
-
      
-
      
-
      
-
      
-
  
Small Business Administration
(1)
    
540
      
436
      
-
      
-
      
976
  
Taxi medallion    
2,715
      
16,228
      
54
      
-
      
18,997
  
Commercial business and other    
9,924
      
2,493
      
-
      
-
      
12,417
  
Total loans   $
28,655
     $
43,405
     $
54
     $
-
     $
72,114
  
 
(
1
)		 Balances shown are net of the portion guaranteed by the Small Business Administration totaling
$1.5
million at
December 31, 2016.