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Loans Held for Sale

9 Months Ended

Sep. 30, 2021

6. Loans held for sale

Loans held for sale are carried at the lower of cost or estimated fair value. At September 30, 2021 and December 31, 2020, the Bank did not have any loans held for sale.

The Company has implemented a strategy of selling certain delinquent and non-performing loans. Once the Company has decided to sell a loan, the sale usually closes in a short period of time, generally within the same quarter. Loans designated held for sale are reclassified from loans held for investment to loans held for sale. Terms of sale include cash due upon the closing of the sale, no contingencies or recourse to the Company and servicing is released to the buyer. Additionally, at times the Company may sell participating interests in performing loans. There were no loans sold for the three months ended September 30, 2020.

The following tables show loans sold during the period indicated:


	For the three months ended September 30, 2021
				Net Recoveries
(Dollars in thousands)	Loans sold	Proceeds		(Charge-offs)		Net gain
Delinquent and non-performing loans
Multi-family residential	2	$	1,316	$	—	$	15
Commercial real estate	1		4,344		—		87
One-to-four family - mixed-use property	3		723		—		29
Total	6	$	6,383	$	—	$	131


	For the nine months ended September 30, 2021
				Net Recoveries
(Dollars in thousands)	Loans sold	Proceeds		(Charge-offs)		Net gain
Delinquent and non-performing loans
Multi-family residential	10	$	12,069	$	(43)	$	78
Commercial real estate	4		7,380		(64)		104
One-to-four family - mixed-use property	13		5,518		(14)		107
Total	27	$	24,967	$	(121)	$	289


	For the nine months ended September 30, 2020
				Net Recoveries
(Dollars in thousands)	Loans sold	Proceeds		(Charge-offs)		Net gain
Delinquent and non-performing loans
Multi-family residential	1	$	284	$	—	$	42
One-to-four family - mixed-use property	1		296		—		—
Total	2	$	580	$	—	$	42