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Loans

6 Months Ended

Jun. 30, 2020

Net loans held-for-investment are as follows (in thousands):


	June 30,		December 31,
	2020		2019
Real estate loans:
Multifamily	$	2,300,773	$	2,196,407
Commercial mortgage	535,629		528,681
One-to-four family residential mortgage	82,697		83,742
Home equity and lines of credit	88,105		84,928
Construction and land	46,815		38,284
Total real estate loans	3,054,019		2,932,042
Commercial and industrial loans ⁽¹⁾	152,879		45,328
Other loans	2,411		2,083
Total commercial and industrial and other loans	155,290		47,411
Deferred loan cost, net	4,380		7,614
Originated loans held-for-investment, net	3,213,689		2,987,067
PCI Loans	14,775		17,365
Loans acquired:
One-to-four family residential mortgage	147,179		187,975
Multifamily	95,835		108,417
Commercial mortgage	98,281		113,027
Home equity and lines of credit	10,091		12,008
Construction and land	1,475		2,537
Total acquired real estate loans	352,861		423,964
Commercial and industrial loans	8,034		8,689

Total loans acquired, net	360,895		432,653
Loans held-for-investment, net	3,589,359		3,437,085
Allowance for loan losses	(38,520)		(28,707)
Net loans held-for-investment	$	3,550,839	$	3,408,378

⁽¹⁾ Included in originated commercial and industrial loans at June 30, 2020, are PPP loans totaling $105.7 million. There were no PPP loans at December 31, 2019.

There were no loans held-for-sale at June 30, 2020, or December 31, 2019.

PCI loans totaled $14.8 million at June 30, 2020, as compared to $17.4 million at December 31, 2019. The majority of the PCI loan balance is attributable to those loans acquired as part of a Federal Deposit Insurance Corporation-assisted transaction. The Company accounts for PCI loans utilizing U.S. GAAP applicable to loans acquired with deteriorated credit quality. At June 30, 2020, PCI loans consisted of approximately 22% commercial real estate loans and 47% commercial and industrial loans, with the remaining balance in residential and home equity loans. At December 31, 2019, PCI loans consisted of approximately 29% commercial real estate loans and 42% commercial and industrial loans, with the remaining balance in residential and home equity loans.

The following table details the accretion of interest income for PCI loans for the three and six months ended June 30, 2020 and June 30, 2019 (in thousands):


	At or for the three months ended June 30,						At or for the six months ended June 30,
	2020		2019		2020		2019
Balance at the beginning of period	$	16,283	$	20,797	$	17,086	$	21,846

Accretion into interest income	(717)		(1,003)		(1,520)		(2,052)

Balance at end of period	$	15,566	$	19,794	$	15,566	$	19,794

The following tables set forth activity in our allowance for loan losses, by loan type, as of and for the three and six months ended June 30, 2020, and June 30, 2019 (in thousands):


	Three Months Ended June 30, 2020
	Real Estate
	Commercial		One-to-Four Family		Construction and Land		Multifamily		Home Equity and Lines of Credit		Commercial and Industrial		Other		Originated Loans Total		Purchased Credit-Impaired		Acquired Loans		Total
Allowance for loan losses:
Beginning balance	$	5,389	$	312	$	671	$	26,889	$	574	$	2,035	$	86	$	35,956	$	789	$	55	$	36,800
Charge-offs	(164)		—		—		—		—		(57)		—		(221)		—		—		(221)
Recoveries	13		—		—		—		—		3		—		16		—		4		20
Provisions (credit)	1,271		(40)		266		354		(16)		(135)		90		1,790		—		131		1,921
Ending balance	$	6,509	$	272	$	937	$	27,243	$	558	$	1,846	$	176	$	37,541	$	789	$	190	$	38,520


	Three Months Ended June 30, 2019
	Real Estate
	Commercial		One-to-Four Family		Construction and Land		Multifamily		Home Equity and Lines of Credit		Commercial and Industrial		Other		Originated Loans Total		Purchased Credit-Impaired		Acquired Loans		Total
Allowance for loan losses:
Beginning balance	$	5,382	$	370	$	574	$	18,346	$	336	$	1,376	$	92	$	26,476	$	1,010	$	—	$	27,486
Charge-offs	—		—		—		—		—		(57)		(123)		(180)		—		(53)		(233)
Recoveries	13		72		—		—		—		—		1		86		—		2		88
Provisions (credit)	(64)		(208)		10		38		81		272		176		305		—		186		491
Ending balance	$	5,331	$	234	$	584	$	18,384	$	417	$	1,591	$	146	$	26,687	$	1,010	$	135	$	27,832


	Six Months Ended June 30, 2020
	Real Estate
	Commercial		One-to-Four Family		Construction and Land		Multifamily		Home Equity and Lines of Credit		Commercial and Industrial		Other		Originated Loans Total		Purchased Credit-Impaired		Acquired Loans		Total
Allowance for loan losses:
Beginning balance	$	4,756	$	180	$	536	$	20,203	$	317	$	1,640	$	151	$	27,783	$	789	$	135	$	28,707
Charge-offs	(164)		—		—		—		—		(94)		—		(258)		—		(433)		(691)
Recoveries	383		—		—		—		—		5		—		388		—		12		400
Provisions (credit)	1,534		92		401		7,040		241		295		25		9,628		—		476		10,104
Ending balance	$	6,509	$	272	$	937	$	27,243	$	558	$	1,846	$	176	$	37,541	$	789	$	190	$	38,520


	Six Months Ended June 30, 2019
	Real Estate
	Commercial		One-to-Four Family		Construction and Land		Multifamily		Home Equity and Lines of Credit		Commercial and Industrial		Other		Originated Loans Total		Purchased Credit-Impaired		Acquired Loans		Total
Allowance for loan losses:
Beginning balance	$	5,630	$	342	$	463	$	18,084	$	291	$	1,569	$	108	$	26,487	$	1,010	$	—	$	27,497
Charge-offs	(6)		—		—		—		—		(83)		(123)		(212)		—		(112)		(324)
Recoveries	25		72		—		—		—		—		1		98		—		11		109
Provisions (credit)	(318)		(180)		121		300		126		105		160		314		—		236		550
Ending balance	$	5,331	$	234	$	584	$	18,384	$	417	$	1,591	$	146	$	26,687	$	1,010	$	135	$	27,832

The following tables detail the amount of loans receivable held-for-investment, net of deferred loan fees and costs, that are evaluated individually, and collectively, for impairment, and the related portion of the allowance for loan losses that is allocated to each loan portfolio segment, at June 30, 2020, and December 31, 2019 (in thousands):


	June 30, 2020
	Real Estate
	Commercial		One-to-Four Family		Construction and Land		Multifamily		Home Equity and Lines of Credit		Commercial and Industrial		Other		Originated Loans Total		Purchased Credit-Impaired		Acquired Loans		Total
Allowance for loan losses:
Ending balance: individually evaluated for impairment	$	117	$	4	$	—	$	—	$	4	$	4	$	—	$	129	$	—	$	190	$	319
Ending balance: collectively evaluated for impairment	$	6,392	$	268	$	937	$	27,243	$	554	$	1,842	$	176	$	37,412	$	789	$	—	$	38,201
Loans, net:
Ending balance	$	536,245	$	84,189	$	46,843	$	2,304,166	$	90,110	$	149,725	$	2,411	$	3,213,689	$	14,775	$	360,895	$	3,589,359
Ending balance: individually evaluated for impairment	$	11,611	$	1,691	$	—	$	634	$	51	$	54	$	—	$	14,041	$	—	$	5,840	$	19,881
Ending balance: collectively evaluated for impairment	$	524,634	$	82,498	$	46,843	$	2,303,532	$	90,059	$	149,671	$	2,411	$	3,199,648	$	14,775	$	355,055	$	3,569,478


	December 31, 2019
	Real Estate
	Commercial		One-to-Four Family		Construction and Land		Multifamily		Home Equity and Lines of Credit		Commercial and Industrial		Other		Originated Loans Total		Purchased Credit-Impaired		Acquired Loans		Total
Allowance for loan losses:
Ending balance: individually evaluated for impairment	$	—	$	—	$	—	$	—	$	3	$	4	$	—	$	7	$	—	$	135	$	142
Ending balance: collectively evaluated for impairment	$	4,756	$	180	$	536	$	20,203	$	314	$	1,636	$	151	$	27,776	$	789	$	—	$	28,565
Loans, net:
Ending balance	$	529,287	$	85,355	$	38,303	$	2,199,734	$	86,848	$	45,456	$	2,084	$	2,987,067	$	17,365	$	432,653	$	3,437,085
Ending balance: individually evaluated for impairment	$	13,226	$	1,841	$	—	$	997	$	55	$	58	$	—	$	16,177	$	—	$	4,780	$	20,957
Ending balance: collectively evaluated for impairment	$	516,061	$	83,514	$	38,303	$	2,198,737	$	86,793	$	45,398	$	2,084	$	2,970,890	$	17,365	$	427,873	$	3,416,128

The Company monitors the credit quality of its loan portfolio on a regular basis. Credit quality is monitored by reviewing certain credit quality indicators. Management has determined that loan-to-value ratios (at period end) and internally assigned credit risk ratings by loan type are the key credit quality indicators that best measure the credit quality of the Company’s loan receivables. Loan-to-value (“LTV”) ratios used by management in monitoring credit quality are based on current period loan balances and original appraised values at the time of origination (unless a current appraisal has been obtained as a result of the loan being deemed impaired). In calculating the provision for loan losses, based on past loan loss experience, management has determined that commercial real estate loans and multifamily loans having loan-to-value ratios, as described above, of less than 35%, and one-to-four family loans having loan-to-value ratios, as calculated above, of less than 60%, require less of a loss factor than those with higher loan to value ratios.

The Company maintains a credit risk rating system as part of the risk assessment of its loan portfolio. The Company’s lending officers are required to assign a credit risk rating to each loan in their portfolio at origination. This risk rating is reviewed periodically and adjusted if necessary. Monthly, management presents monitored assets to the loan committee. In addition, the Company engages a third-party independent loan reviewer that performs semi-annual reviews of a sample of loans, validating the credit risk ratings assigned to such loans. The credit risk ratings play an important role in the establishment of the provision for loan losses and the allowance for loan losses for originated loans held-for-investment. After determining the loss factor for each originated portfolio segment held-for-investment, the collectively evaluated for impairment balance of the held-for-investment portfolio is multiplied by the collectively evaluated for impairment loss factor for the respective portfolio segment in order to determine the allowance for loans collectively evaluated for impairment.

When assigning a risk rating to a loan, management utilizes the Bank’s internal nine-point credit risk rating system.

1.Strong

2.Good

3.Acceptable

4.Adequate

5.Watch

6.Special Mention

7.Substandard

8.Doubtful

9.Loss

Loans rated 1 to 5 are considered pass ratings. An asset is classified substandard if it is inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Substandard assets have well defined weaknesses based on objective evidence, and are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. Assets classified as doubtful have all of the weaknesses inherent in those classified substandard with the added characteristic that the weaknesses present make collection or liquidation in full highly questionable and improbable based on current circumstances. Assets classified as loss are those considered uncollectible and of such little value that their continuance as assets is not warranted. Assets which do not currently expose the Company to sufficient risk to warrant classification in one of the aforementioned categories, but possess weaknesses, are required to be designated special mention.

The following tables detail the recorded investment of originated loans held-for-investment, net of deferred fees and costs, by loan type and credit quality indicator at June 30, 2020, and December 31, 2019 (in thousands):


	At June 30, 2020
	Real Estate
	Multifamily						Commercial						One-to-Four Family						Construction and Land		Home Equity and Lines of Credit		Commercial and Industrial	Other	Total
	< 35% LTV		=> 35% LTV		< 35% LTV		=> 35% LTV		< 60% LTV		=> 60% LTV
Internal Risk Rating
Pass	$	248,120	$	2,049,444	$	90,805	$	438,479	$	53,521	$	28,326	$	46,843	$	89,749	$	149,391	$	2,411	$	3,197,089
Special Mention	—		760		—		808		590		—		—		76		297		—		2,531
Substandard	585		5,257		—		6,153		1,727		25		—		285		37		—		14,069
Originated loans held-for-investment, net	$	248,705	$	2,055,461	$	90,805	$	445,440	$	55,838	$	28,351	$	46,843	$	90,110	$	149,725	$	2,411	$	3,213,689


	At December 31, 2019
	Real Estate
	Multifamily						Commercial						One-to-Four Family						Construction and Land		Home Equity and Lines of Credit		Commercial and Industrial	Other	Total
	< 35% LTV		=> 35% LTV		< 35% LTV		=> 35% LTV		< 60% LTV		=> 60% LTV
Internal Risk Rating
Pass	$	232,950	$	1,960,984	$	79,485	$	440,065	$	52,886	$	29,967	$	38,303	$	86,547	$	45,075	$	2,084	$	2,968,346
Special Mention	—		296		370		1,092		777		—		—		14		301		—		2,850
Substandard	301		5,203		—		8,275		1,397		328		—		287		80		—		15,871
Originated loans held-for-investment, net	$	233,251	$	1,966,483	$	79,855	$	449,432	$	55,060	$	30,295	$	38,303	$	86,848	$	45,456	$	2,084	$	2,987,067

Included in loans receivable are loans for which the accrual of interest income has been discontinued due to deterioration in the financial condition of the borrowers. The recorded investment of these non-accrual loans was $8.8 million and $9.4 million at June 30, 2020, and December 31, 2019, respectively. Generally, loans are placed on non-accrual status when they become 90 days or more delinquent, or sooner if considered appropriate by management, and remain on non-accrual status until they are brought current, have six consecutive months of performance under the loan terms, and factors indicating reasonable doubt about the timely collection of payments no longer exist. Therefore, loans may be current in accordance with their loan terms, or may be less than 90 days delinquent and still be on a non-accruing status.

The non-accrual amounts included loans deemed to be impaired of $6.6 million and $6.8 million at June 30, 2020, and December 31, 2019, respectively. Loans on non-accrual status with principal balances less than $500,000, and therefore not meeting the Company’s definition of an impaired loan, amounted to $2.2 million at June 30, 2020 and $2.6 million at December 31, 2019. There were no non-accrual loans held-for-sale at both June 30, 2020 and December 31, 2019. Loans past due 90 days or more and still accruing interest were $978,000 at June 30, 2020 and $518,000 at December 31, 2019, and consisted of loans that are considered well-secured and in the process of collection.

The following tables set forth the detail, and delinquency status, of non-performing loans (non-accrual loans and loans past due 90 days or more and still accruing), net of deferred fees and costs, at June 30, 2020, and December 31, 2019, excluding PCI loans which have been segregated into pools. For PCI loans, each loan pool is accounted for as a single asset with a single composite interest rate and an aggregate expectation of cash flows (in thousands):


	June 30, 2020
	Total Non-Performing Loans
	Non-Accruing Loans
	0-29 Days Past Due		30-89 Days Past Due		90 Days or More Past Due		Total		90 Days or More Past Due and Accruing		Total Non-Performing Loans
Loans held-for-investment:
Real estate loans:
Commercial





LTV => 35%

Substandard	$	—	$	—	$	944	$	944	—		$	944

Total commercial	—		—		944		944		—		944
One-to-four family residential
LTV < 60%


Substandard	405		—		77		482		171		653
Total	405		—		77		482		171		653
LTV => 60%
Substandard	24		—		—		24		—		24

Total one-to-four family residential	429		—		77		506		171		677



Multifamily
LTV < 35%
Substandard	—		—		291		291		—		291
LTV => 35%

Substandard	—		—		—		—		493		493
Total multifamily	—		—		291		291		493		784
Home equity and lines of credit


Substandard	—		64		89		153		100		253
Total home equity and lines of credit	—		64		89		153		100		253








Total non-performing loans held-for-investment, originated	429		64		1,401		1,894		764		2,658
Loans acquired:
Real estate loans:
Commercial
LTV < 35%
Substandard	79		—		187		266		—		266

LTV => 35%
Substandard	2,852		1,274		1,753		5,879		—		5,879

Total commercial	2,931		1,274		1,940		6,145		—		6,145
One-to-four family residential
LTV < 60%
Substandard	—		188		27		215		161		376

LTV => 60%
Substandard	—		—		93		93		—		93

Total one-to-four family residential	—		188		120		308		161		469
Multifamily
LTV < 35%
Substandard	40		—		—		40		—		40
LTV => 35%
Substandard	—		391		—		391		—		391
Total multifamily	40		391		—		431		—		431

Home equity and lines of credit - Substandard	—		—		28		28		14		42
Total home equity and lines of credit	—		—		28		28		14		42
Commercial and industrial loans
Substandard	—		—		—		—		39		39
Total commercial and industrial loans	—		—		—		—		39		39
Total non-performing loans acquired	2,971		1,853		2,088		6,912		214		7,126
Total non-performing loans	$	3,400	$	1,917	$	3,489	$	8,806	$	978	$	9,784


	December 31, 2019
	Total Non-Performing Loans
	Non-Accruing Loans
	0-29 Days Past Due		30-89 Days Past Due		90 Days or More Past Due		Total		90 Days or More Past Due and Accruing		Total Non-Performing Loans
Loans held-for-investment:
Real estate loans:
Commercial
LTV < 35%
Substandard					$	2,416	$	2,416			$	2,416





Total commercial	—		—		2,416		2,416		—		2,416
One-to-four family residential
LTV < 60%

Substandard	—		—		493		493		114		607

LTV => 60%
Substandard	—		29		—		29		—		29

Total one-to-four family residential	—		29		493		522		114		636









Home equity and lines of credit
Substandard	—		67		89		156		—		156
Total home equity and lines of credit	—		67		89		156		—		156



Total non-performing loans held-for-investment, originated	—		96		2,998		3,094		114		3,208
Loans acquired:
Real estate loans:
Commercial
LTV < 35%
Substandard	79		—		188		267		66		333
LTV => 35%
Substandard	3,530		—		1,709		5,239		187		5,426
Total commercial	3,609		—		1,897		5,506		253		5,759
One-to-four family residential
LTV < 60%

Substandard	190		—		85		275		151		426
LTV => 60%
Substandard	—		—		93		93		—		93
Total one-to-four family residential	190		—		178		368		151		519
Multifamily
LTV < 35%
Substandard	40		—		—		40		—		40
LTV => 35%
Substandard	—		397		—		397		—		397
Total multifamily	40		397		—		437		—		437
Home equity and lines of credit
Substandard	—		—		28		28		—		28
Total home equity and lines of credit	—		—		28		28		—		28






Total non-performing loans acquired	3,839		397		2,103		6,339		404		6,743
Total non-performing loans	$	3,839	$	493	$	5,101	$	9,433	$	518	$	9,951

The following tables set forth the detail and delinquency status of originated and acquired loans held-for-investment, net of deferred fees and costs, by performing and non-performing loans at June 30, 2020, and December 31, 2019 (in thousands):


	June 30, 2020
	Performing (Accruing) Loans
	0-29 Days Past Due		30-89 Days Past Due		Total		Non-Performing Loans		Total Loans Receivable, net
Loans held-for-investment:
Real estate loans:
Commercial
LTV < 35%
Pass	$	88,671	$	2,134	$	90,805	$	—	$	90,805


Total	88,671		2,134		90,805		—		90,805
LTV => 35%
Pass	430,117		8,362		438,479		—		438,479
Special Mention	808		—		808		—		808
Substandard	5,209		—		5,209		944		6,153
Total	436,134		8,362		444,496		944		445,440
Total commercial	524,805		10,496		535,301		944		536,245
One-to-four family residential
LTV < 60%
Pass	53,077		444		53,521		—		53,521
Special Mention	80		510		590		—		590
Substandard	1,074		—		1,074		653		1,727
Total	54,231		954		55,185		653		55,838
LTV => 60%
Pass	28,326		—		28,326		—		28,326

Substandard	—		—		—		25		25
Total	28,326		—		28,326		25		28,351
Total one-to-four family residential	82,557		954		83,511		678		84,189
Construction and land
Pass	46,645		198		46,843		—		46,843


Total construction and land	46,645		198		46,843		—		46,843
Multifamily
LTV < 35%
Pass	248,120		—		248,120		—		248,120

Substandard	294		—		294		291		585
Total	248,414		—		248,414		291		248,705
LTV => 35%
Pass	2,049,444		—		2,049,444		—		2,049,444
Special Mention	760		—		760		—		760
Substandard	4,690		75		4,765		492		5,257
Total	2,054,894		75		2,054,969		492		2,055,461
Total multifamily	2,303,308		75		2,303,383		783		2,304,166


Home equity and lines of credit
Pass	89,455		294		89,749		—		89,749
Special Mention	76		—		76		—		76
Substandard	32		—		32		253		285
Total home equity and lines of credit	89,563		294		89,857		253		90,110
Commercial and industrial
Pass	148,939		452		149,391		—		149,391
Special Mention	267		30		297		—		297
Substandard	37		—		37		—		37
Total commercial and industrial	149,243		482		149,725		—		149,725


	June 30, 2020
	Performing (Accruing) Loans (Continued)
	0-29 Days Past Due		30-89 Days Past Due		Total		Non-Performing Loans		Total Loans Receivable, net
Other loans
Pass	2,411		—		2,411				2,411

Total originated loans held-for-investment	3,198,532		12,499		3,211,031		2,658		3,213,689
Acquired loans:
Real estate loans:
One-to-four family residential
LTV < 60%
Pass	132,919		834		133,753		155		133,908
Special Mention	—		378		378		—		378
Substandard	—		—		—		221		221
Total	132,919		1,212		134,131		376		134,507
LTV => 60%
Pass	12,579		—		12,579		—		12,579

Substandard	—		—		—		93		93
Total	12,579		—		12,579		93		12,672
Total one-to-four family residential	145,498		1,212		146,710		469		147,179
Commercial
LTV < 35%
Pass	32,999		—		32,999		—		32,999
Special Mention	83		—		83		—		83
Substandard	591		—		591		266		857
Total	33,673		—		33,673		266		33,939
LTV => 35%
Pass	49,705		—		49,705		—		49,705
Special Mention	—		336		336		—		336
Substandard	6,822		1,601		8,423		5,878		14,301
Total	56,527		1,937		58,464		5,878		64,342
Total commercial	90,200		1,937		92,137		6,144		98,281
Construction and land
Pass	1,475		—		1,475		—		1,475
Total construction and land	1,475		—		1,475		—		1,475
Multifamily
LTV < 35%
Pass	92,794		—		92,794		—		92,794

Substandard	—		—		—		40		40
Total	92,794		—		92,794		40		92,834
LTV => 35%
Pass	2,609		—		2,609		—		2,609

Substandard	—		—		—		392		392
Total	2,609		—		2,609		392		3,001
Total multifamily	95,403		—		95,403		432		95,835
Home equity and lines of credit
Pass	9,467		408		9,875		—		9,875
Special Mention	$	46	$	—	$	46	$	—	$	46
Substandard	80		48		128		42		170
Total home equity and lines of credit	9,593		456		10,049		42		10,091
Commercial and industrial
Pass	7,995		—		7,995		—		7,995

Substandard	—		—		—		39		39
Total commercial and industrial	7,995		—		7,995		39		8,034

Total loans acquired	350,164		3,605		353,769		7,126		360,895
	$	3,548,696	$	16,104	$	3,564,800	$	9,784	$	3,574,584


	December 31, 2019
	Performing (Accruing) Loans
	0-29 Days Past Due		30-89 Days Past Due		Total		Non-Performing Loans	Total Loans Receivable, net
Loans held-for-investment:
Real estate loans:
Commercial
LTV < 35%
Pass	$	79,383	$	102	$	79,485	—	$	79,485
Special Mention	370		—		370		—	370

Total	79,753		102		79,855		—	79,855
LTV => 35%
Pass	439,253		812		440,065		—	440,065
Special Mention	1,092		—		1,092		—	1,092
Substandard	5,228		631		5,859		2,416	8,275
Total	445,573		1,443		447,016		2,416	449,432
Total commercial	525,326		1,545		526,871		2,416	529,287
One-to-four family residential
LTV < 60%
Pass	52,757		129		52,886		—	52,886
Special Mention	—		777		777		—	777
Substandard	790		—		790		607	1,397
Total	53,547		906		54,453		607	55,060
LTV => 60%
Pass	29,741		226		29,967		—	29,967

Substandard	299		—		299		29	328
Total	30,040		226		30,266		29	30,295
Total one-to-four family residential	83,587		1,132		84,719		636	85,355
Construction and land
Pass	38,156		147		38,303		—	38,303


Total construction and land	38,156		147		38,303		—	38,303
Multifamily
LTV < 35%
Pass	232,658		292		232,950		—	232,950

Substandard	301		—		301		—	301
Total	232,959		292		233,251		—	233,251
LTV => 35%
Pass	1,960,729		255		1,960,984		—	1,960,984
Special Mention	296		—		296		—	296
Substandard	5,203		—		5,203		—	5,203
Total	1,966,228		255		1,966,483		—	1,966,483
Total multifamily	2,199,187		547		2,199,734		—	2,199,734
Home equity and lines of credit
Pass	86,380		167		86,547		—	86,547
Special Mention	14		—		14		—	14
Substandard	131		—		131		156	287
Total home equity and lines of credit	86,525		167		86,692		156	86,848
Commercial and industrial loans
Pass	44,886		189		45,075		—	45,075
Special Mention	301		—		301		—	301
Substandard	80		—		80		—	80
Total commercial and industrial loans	45,267		189		45,456		—	45,456



Other loans - Pass	2,058		26		2,084		—	2,084
Total originated loans held-for-investment	2,980,106		3,753		2,983,859		3,208	2,987,067


	December 31, 2019
	Performing (Accruing) Loans
	0-29 Days Past Due		30-89 Days Past Due		Total		Non-Performing Loans		Total Loans Receivable, net

Loans Acquired
Real estate loans:
One-to-four family residential
LTV < 60%
Pass	172,882		73		172,955		—		172,955
Special Mention	—		385		385		—		385
Substandard	—		—		—		426		426
Total	172,882		458		173,340		426		173,766
LTV => 60%
Pass	14,116		—		14,116		—		14,116

Substandard	—		—		—		93		93
Total	14,116		—		14,116		93		14,209
Total one-to-four family residential	186,998		458		187,456		519		187,975
Commercial
LTV < 35%
Pass	35,173		287		35,460		—		35,460
Special Mention	994		194		1,188		—		1,188
Substandard	369		—		369		334		703
Total	36,536		481		37,017		334		37,351
LTV => 35%
Pass	60,311		—		60,311		—		60,311
Special Mention	134		464		598		—		598
Substandard	6,382		2,960		9,342		5,425		14,767
Total	66,827		3,424		70,251		5,425		75,676
Total commercial	103,363		3,905		107,268		5,759		113,027
Construction and land
Pass	2,537		—		2,537		—		2,537


Total construction and land	2,537		—		2,537		—		2,537
Multifamily
LTV < 35%
Pass	105,327		—		105,327		—		105,327

Substandard	—		—		—		40		40
Total	105,327		—		105,327		40		105,367
LTV => 35%
Pass	2,653		—		2,653		—		2,653

Substandard	—		—		—		397		397
Total	2,653		—		2,653		397		3,050
Total multifamily	107,980		—		107,980		437		108,417
Home equity and lines of credit
Pass	11,842		50		11,892		—		11,892
Substandard	88		—		88		28		116
Total home equity and lines of credit	11,930		50		11,980		28		12,008
Commercial and industrial loans
Pass	8,649		40		8,689		—		8,689

Total commercial and industrial loans	8,649		40		8,689		—		8,689
Other	—		—		—		—		—
Total loans acquired	421,457		4,453		425,910		6,743		432,653
	$	3,401,563	$	8,206	$	3,409,769	$	9,951	$	3,419,720

The following table summarizes originated and acquired impaired loans as of June 30, 2020, and December 31, 2019 (in thousands):


	June 30, 2020										December 31, 2019
	Recorded Investment		Unpaid Principal Balance		Related Allowance		Recorded Investment		Unpaid Principal Balance		Related Allowance
With No Allowance Recorded:
Real estate loans:
Commercial
LTV < 35%
Substandard	$	79	$	218	$	—	$	—	$	139	$	—
LTV => 35%
Pass	3,629		4,378		—		5,582		6,468		—
Special Mention	511		648		—		—		—		—
Substandard	8,449		8,655		—		10,438		11,002		—


One-to-four family residential
LTV < 60%
Pass	1,057		1,145		—		1,379		1,463		—
Special Mention	378		378		—		385		385		—
Substandard	218		218		—		564		564		—
LTV => 60%
Pass	118		153		—		122		154		—

Substandard	25		25		—		29		29		—
Multifamily
LTV < 35%
Substandard	40		40		—		40		40		—
LTV => 35%
Pass	—		—		—		26		496		—
Special Mention	22		493		—		—		—		—
Substandard	611		611		—		972		972		—
Home equity and lines of credit
Pass	19		19		—		22		22		—
Commercial and industrial loans

Substandard	37		37		—		39		39		—
With a Related Allowance Recorded:
Real estate loans:
Commercial


LTV => 35%
Pass	1,318		1,318		(19)		—		—		—
Substandard	2,799		3,397		(288)		1,307		1,307		(135)
One-to-four family residential
LTV < 60%


Substandard	522		522		(4)		—		—		—







Home equity and lines of credit


Substandard	32		32		(4)		33		33		(3)
Commercial and industrial loans
Special Mention	17		17		(4)		19		19		(4)

Total:
Real estate loans
Commercial	16,785		18,614		(307)		17,327		18,916		(135)
One-to-four family residential	2,318		2,441		(4)		2,479		2,595		—
Multifamily	673		1,144		—		1,038		1,508		—
Home equity and lines of credit	51		51		(4)		55		55		(3)
Commercial and industrial loans	54		54		(4)		58		58		(4)
	$	19,881	$	22,304	$	(319)	$	20,957	$	23,132	$	(142)

Included in the above tables at June 30, 2020, are impaired loans with carrying balances of $12.9 million that were not written down by charge-offs or for which there are no specific reserves in our allowance for loan losses. Included in impaired loans at December 31, 2019, are loans with carrying balances of $15.9 million that were not written down by charge-offs or for which there are no specific reserves in our allowance for loan losses. Loans not written down by charge-offs or specific reserves at June 30, 2020, and December 31, 2019, are considered to have sufficient collateral values, less costs to sell, to support the carrying balances of the loans.

The following table summarizes the average recorded investment in originated and acquired impaired loans (excluding PCI loans) and interest recognized on impaired loans as of, and for, the three and six months ended June 30, 2020, and June 30, 2019 (in thousands):


	Three Months Ended														Six Months Ended
	June 30, 2020						June 30, 2019						June 30, 2020				June 30, 2019
	Average Recorded Investment		Interest Income		Average Recorded Investment		Interest Income		Average Recorded Investment		Interest Income		Average Recorded Investment		Interest Income
With No Allowance Recorded:
Real estate loans:
Commercial
LTV < 35%


Substandard	$	40	$	2	$	—			$	26	$	2	$	—
LTV => 35%
Pass	$	4,560	$	60	$	5,801	$	79	$	4,901	$	108	$	5,844	$	158
Special Mention	256		10		—				170		20		—		—
Substandard	9,666		119		10,979		57		9,923		156		11,373		129
Construction and Land



One-to-four family residential
LTV < 60%
Pass	1,210		13		1,812		22		1,266		29		1,719		44
Special Mention	380		5		—				382		11		—		—
Substandard	387		3		238		1		446		9		239		4
LTV => 60%
Pass	119		1		126		1		120		2		127		2

Substandard	26		—		124		3		27		—		125		6
Multifamily
LTV < 35%


Substandard	40		—		45		1		40		1		80		1
LTV => 35%
Pass	11		—		34		4		16		—		35		8
Special Mention	11		4		—				7		8		—		—
Substandard	792		14		1,100		16		852		22		1,143		35
Home equity and lines of credit
Pass	20		—		26		—		20		—		26		1


Commercial and industrial loans


Substandard	37		—		46				38		—		48		—
With a Related Allowance Recorded:
Real estate loans:
Commercial




LTV => 35%
Pass	659		17		—				439		33		—		—

Substandard	1,676		24		1,171		17		1,553		24		781		17
One-to-four family residential
LTV < 60%


Substandard	261		5		345		5		174		10		449		10
LTV => 60%



Multifamily
LTV => 35%



Home equity and lines of credit


Substandard	33		—		33				33		1		33		1
Commercial and industrial loans

Special Mention	18		—		20				18		—		20		—

Total:
Real estate loans
Commercial	16,857		232		17,951		153		17,012		343		17,998		304
One-to-four family residential	2,383		27		2,645		32		2,415		61		2,659		66
Multifamily	854		18		1,179		21		915		31		1,258		44
Home equity and lines of credit	53		—		59		—		53		1		59		2
Commercial and industrial loans	55		—		66		—		56		—		68		—
	$	20,202	$	277	$	21,900	$	206	$	20,451	$	436	$	22,042	$	416

The following tables summarizes loans that were modified in a TDR during the six months ended June 30, 2020, and June 30, 2019:


	Six Months Ended June 30, 2020
	Number of Relationships	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment⁽¹⁾
	(in thousands)
Troubled Debt Restructurings
Residential	1	$	187	$	187
Commercial real estate	2	544		544
Total Troubled Debt Restructurings	3	$	731	$	731

⁽¹⁾Amounts are at time of modification


	Six Months Ended June 30, 2019
	Number of Relationships	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment⁽¹⁾
	(in thousands)
Troubled Debt Restructurings
Consumer	1	$	2	$	2
Commercial real estate	1	2,834		2,834
Total Troubled Debt Restructurings	2	$	2,836	$	2,836

⁽¹⁾Amounts are at time of modification

There were four loans (to three borrowers) in the first table above, that requested COVID-19 relief and were modified as troubled debt restructurings (TDRs) during the three months ended June 30, 2020, all of which were modified to restructure payment terms. All four of the loans were delinquent and on non-accrual status prior to the implementation of our COVID-19 customer relief program (discussed further below) and were therefore considered to be TDRs. There were no loans modified as TDRs during the three months ended June 30, 2019, and two loans modified as TDRs during the six months ended June 30, 2019, both of which were modified to restructure payment terms.

As of June 30, 2020, the Company had approved or executed 262 loan modifications (excluding PCI loans) with principal and/or interest payment deferrals on outstanding loan balances of $345.9 million in connection with COVID-19 relief provided by Section 4013 of the CARES Act and the Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customer Affected by the Coronavirus. Of these 262 payment deferrals, 60 were principal deferrals totaling $142.5 million, and 202 were principal and interest deferrals totaling $203.4 million. These deferrals were generally no longer than three months in duration and were not considered TDRs (other than those noted above). Loans in deferment status (“COVID-19 Modified Loans”) will continue to accrue interest during the deferment period unless otherwise classified as nonperforming. COVID-19 Modified Loans are required to make escrow payments for real estate taxes and insurance, if applicable. For loans given relief of interest, the deferred interest is generally to be paid back over a period not to exceed 18 months. Principal deferrals may be brought current or recast into outstanding principal at time of rate reset or repaid at the end of the loan's contractual term. COVID-19 Modified Loan agreements generally also include covenants that prohibit distributions, bonuses, or payments of management fees to related entities until all deferred payments are made.

At June 30, 2020, and December 31, 2019, we had TDRs of $17.7 million and $18.5 million, respectively.

Management classifies all TDRs as impaired loans. Impaired loans are individually assessed to determine that the loan’s carrying value is not in excess of the estimated fair value of the collateral less cost to sell, if the loan is collateral dependent, or the present value of the expected future cash flows, if the loan is not collateral dependent. Management performs an evaluation of each impaired loan and generally obtains updated appraisals as part of the evaluation. In addition, management adjusts estimated fair values down to appropriately consider recent market conditions, our willingness to accept a lower sales price to effect a quick sale, and costs to dispose of any supporting collateral. Determining the estimated fair value of underlying collateral (and related costs to sell) can be difficult in illiquid real estate markets and is subject to significant assumptions and estimates. Management employs an independent third-party management firm that specializes in appraisal preparation and review to ascertain the reasonableness of updated appraisals. Projecting the expected cash flows under troubled debt restructurings which are not collateral dependent is inherently subjective and requires, among other things, an evaluation of the borrower’s current and projected financial condition. Actual results may be significantly different than our projections and our established allowance for loan losses on these loans, which could have a material effect on our financial results.At June 30, 2020 or June 30, 2019, there were no TDRs that were restructured during the preceding twelve months that subsequently defaulted.