NOTE 4: LOANS

The following is a summary of our loans as of:

(dollars in thousands)	September 30, 2017		December 31, 2016
Outstanding principal balance:
Loans secured by real estate:
Residential properties:
Multifamily	$	1,784,061	$	1,178,003
Single family		616,478		602,886
Total real estate loans secured by residential properties		2,400,539		1,780,889
Commercial properties		529,590		476,959
Land and construction		31,304		24,100
Total real estate loans		2,961,433		2,281,948
Commercial and industrial loans		259,958		237,941
Consumer loans		28,469		32,127
Total loans		3,249,860		2,552,016
Premiums, discounts and deferred fees and expenses		7,014		3,693
Total	$	3,256,874	$	2,555,709

As of September 30, 2017 and December 31, 2016, the principal balances shown above are net of unaccreted discount related to loans acquired in an acquisition of $1.1 million and $1.6 million, respectively.

In 2012 and 2015, the Company purchased loans, for which there was, at acquisition, evidence of deterioration of credit quality since origination and it was probable, at acquisition, that all contractually required payments would not be collected. The carrying amount of these purchased credit impaired loans is as follows as of:

(dollars in thousands)	September 30, 2017			December 31, 2016
Outstanding principal balance:
Total real estate loans	$	285		$	295
Commercial and industrial loans		2,416			4,258
Consumer loans		—			17
Total loans		2,701			4,570
Unaccreted discount on purchased credit impaired loans		(884	)		(1,197	)
Total	$	1,817		$	3,373

Accretable yield, or income expected to be collected on purchased credit impaired loans, and the related changes, is as follows for the periods indicated:

(dollars in thousands)	Nine Months Ended September 30, 2017			Year Ended December 31, 2016

Beginning balance	$	289		$	582
Accretion of income		(82	)		(185	)
Reclassifications from nonaccretable difference		66			—
Disposals		—			(108	)
Ending balance	$	273		$	289

The following table summarizes our delinquent and nonaccrual loans as of:

	Past Due and Still Accruing												Total Past
(dollars in thousands)	30–59 Days			60-89 Days			90 Days or More			Nonaccrual			Due and Nonaccrual			Current		Total
September 30, 2017:
Real estate loans:
Residential properties	$	53		$	—		$	—		$	—		$	53		$	2,400,486	$	2,400,539
Commercial properties		762			—			1,330			1,278			3,370			526,220		529,590
Land and construction		—			—			—			—			—			31,304		31,304
Commercial and industrial loans		10,926			—			815			5,216			16,957			243,001		259,958
Consumer loans		—			—			—			—			—			28,469		28,469
Total	$	11,741		$	—		$	2,145		$	6,494		$	20,380		$	3,229,480	$	3,249,860

Percentage of total loans		0.36	%		—	%		0.07	%		0.20	%		0.63	%

December 31, 2016:
Real estate loans:
Residential properties	$	—		$	—		$	—		$	3,759		$	3,759		$	1,777,130	$	1,780,889
Commercial properties		—			—			2,128			1,120			3,248			473,711		476,959
Land and construction		—			—			—			—			—			24,100		24,100
Commercial and industrial loans		—			2			3,800			3,359			7,161			230,780		237,941
Consumer loans		—			—			—			—			—			32,127		32,127
Total	$	—		$	2		$	5,928		$	8,238		$	14,168		$	2,537,848	$	2,552,016

Percentage of total loans		—	%		0.00	%		0.23	%		0.32	%		0.56	%

The level of delinquent loans and nonaccrual loans have been adversely impacted by the loans acquired from acquisitions. As of September 30, 2017, of the $8.6 million in loans over 90 days past due, including loans on nonaccrual, $3.1 million, or 36% were loans acquired from acquisitions.

Accrual of interest on loans is discontinued when reasonable doubt exists as to the full, timely collection of interest or principal and, generally, when a loan becomes contractually past due for sixty days or more with respect to principal or interest. The accrual of interest may be continued on a well-secured loan contractually past due sixty days or more with respect to principal or interest if the loan is in the process of collection or collection of the principal and interest is deemed probable. The Bank considers a loan to be impaired when, based upon current information and events, it believes it is probable that the Bank will be unable to collect all amounts due according to the contractual terms of the loan agreement. The determination of past due, nonaccrual or impairment status of loans acquired in an acquisition, other than loans deemed purchased impaired, is the same as loans we originate.

During the first nine months of 2017 the Company did not have any additional loans classified as troubled debt restructurings (“TDR”). As of September 30, 2017 and December 31, 2016, the Company had five loans classified as TDR which are included as nonaccrual in the table below. These loans have been paying in accordance with the terms of their restructure.

	September 30, 2017							December 31, 2016
(dollars in thousands)	Accrual			Nonaccrual	Total			Accrual	Nonaccrual		Total
Commercial and industrial	$	225	$	2,522	$	2,747	$	317	$	3,109	$	3,426

These loans were classified as a TDR as a result of a reduction in required principal payments and/or an extension of the maturity date of the loans.