XML 27 R16.htm IDEA: XBRL DOCUMENT v3.10.0.1
Loans Receivable and Allowance for Loan Losses
 6 Months Ended
Jun. 30, 2018
Loans Receivable and Allowance for Loan Losses [Abstract]  
Loans Receivable and Allowance for Loan Losses



Note 7 - Loans Receivable and Allowance for Loan Losses

The following table presents the recorded investment in loans receivable as of June 30, 2018 and December 31, 2017 by segment and class:







 

 

 

 

 



 

 

 

 

 



June 30, 2018

 

December 31, 2017



 

(In Thousands)

Originated loans:

 

 

 

 

 

Residential one-to-four family

$

 203,661 

 

$

 182,544 

Commercial and multi-family

 

 1,452,907 

 

 

 1,213,390 

Construction

 

 51,599 

 

 

 50,497 

Commercial business(1) 

 

 105,101 

 

 

 66,775 

Home equity(2) 

 

 52,382 

 

 

 38,725 

Consumer

 

 645 

 

 

 1,183 



 

 

 

 

 

Sub-total

 

 1,866,295 

 

 

 1,553,114 



 

 

 

 

 

Acquired loans initially recorded at fair value:

 

 

 

 

 

Residential one-to-four family

 

 44,933 

 

 

 47,808 

Commercial and multi-family

 

 158,094 

 

 

 46,609 

Construction

 

 1,798 

 

 

 -

Commercial business(1) 

 

 31,680 

 

 

 4,057 

Home equity(2) 

 

 21,725 

 

 

 8,955 

Consumer

 

 199 

 

 

 122 



 

 

 

 

 

Sub-total

 

 258,429 

 

 

 107,551 



 

 

 

 

 

Acquired loans with deteriorated credit:

 

 

 

 

 

Residential one-to-four family

 

 1,402 

 

 

 1,413 

Commercial and multi-family

 

 11,880 

 

 

 731 

Construction

 

 2,670 

 

 

 -

Commercial business(1) 

 

 986 

 

 

 -

Home equity(2) 

 

 400 

 

 

 -

Consumer

 

 54 

 

 

 -



 

 

 

 

 

Sub-total

 

 17,392 

 

 

 2,144 



 

 

 

 

 

Total Loans

 

 2,142,116 

 

 

 1,662,809 



 

 

 

 

 

Less:

 

 

 

 

 

Deferred loan fees, net

 

 (1,647)

 

 

 (1,757)

Allowance for loan losses

 

 (20,640)

 

 

 (17,375)



 

 

 

 

 

Sub-total

 

 (22,287)

 

 

 (19,132)



 

 

 

 

 

Total Loans, net

$

 2,119,829 

 

$

 1,643,677 



 

 

 

 

 

_____________________________

 

 

 

 

 

(1) Includes business lines of credit.

 

 

 

 

 

(2) Includes home equity lines of credit.

 

 

 

 

 



 

 

 

 

 



 

 

 

 

 



 

 

 

 

 



Note 7 - Loans Receivable and Allowance for Loan Losses (Continued)

Purchased Credit Impaired Loans



The carrying value of loans acquired in the IAB acquisition and accounted for in accordance with ASC Subtopic 310-30, “Loans and Debt Securities Acquired with Deteriorated Credit Quality,” was $14.9 million at June 30, 2018, which was $803,000 less than the balance at the time of acquisition on April 17, 2018. Under ASC Subtopic 310-30, these loans, referred to as purchased credit impaired (“PCI”) loans, may be aggregated and accounted for as pools of loans if the loans being aggregated have common risk characteristics. The Company elected to account for the loans with evidence of credit deterioration individually rather than aggregate them into pools. The difference between the undiscounted cash flows expected at acquisition and the investment in the acquired loans, or the “accretable yield,” is recognized as interest income utilizing the level-yield method over the life of each loan. Contractually required payments for interest and principal that exceed the undiscounted cash flows expected at acquisition, or the “non- accretable difference,” are not recognized as a yield adjustment, as a loss accrual or as a valuation allowance.



Increases in expected cash flows subsequent to the acquisition are recognized prospectively through an adjustment of the yield on the loans over the remaining life, while decreases in expected cash flows are recognized as impairments through a loss provision and an increase in the allowance for loan and lease losses. Valuation allowances (recognized in the allowance for loan and lease losses) on these impaired loans reflect only losses incurred after the acquisition (representing all cash flows that were expected at acquisition but currently are not expected to be received).



The following table presents changes in the accretable yield for PCI loans:











 

 



 

Six months ended June 30, 2018

(Dollars in thousands)

 

 

Accretable yield, beginning balance

$

 -

Acquisition of impaired loans

 

 1,399 

Accretable yield amortized to interest income

 

 (208)

Reclassification from non-accretable difference

 

 -

Accretable yield, ending balance

$

 1,191 



Note 7 - Loans Receivable and Allowance for Loan Losses (Continued)

Allowance for Loan Losses



The allowance for loan loss is evaluated regularly by management and reflects consideration of all significant factors that affect the collectability of the loan portolio. The Company’s methodology for assessing the adequacy of the allowance for loan losses consists of several key elements. These elements include a general allocated reserve for performing loans, a specific reserve for impaired loans and an unallocated portion.  



The Company consistently applies the following comprehensive methodology. During the quarterly review of the allowance for loan losses, the Company considers a variety of qualitative factors that include:



"

Lending Policies and Procedures

"

Personnel responsible for the particular portfolio - relative to experience and ability of staff

"

Trend for past due, criticized and classified loans

"

Relevant economic factors

"

Quality of the loan review system

"

Value of collateral for collateral dependent loans

"

The effect of any concentrations of credit and the changes in the level of such concentrations

"

Other external factors

The methodology includes the segregation of the loan portfolio into two divisions. Loans that are performing and loans that are impaired. Loans which are performing are evaluated homogeneously by loan class or loan type. The allowance for performing loans is evaluated based on historical loan experience with an adjustment for qualitative factors referred to above. Impaired loans are loans which are more than 90 days delinquent, troubled debt restructured, or adversely classified. These loans are individually evaluated for loan loss either by current appraisal, or net present value. Management reviews the overall estimate for feasibility and bases the loan loss provision accordingly.



The loan portfolio is segmented into the following loan classes, where the risk level for each class is analyzed when determining the allowance for loan losses:



Residential single family real estate loans involve certain risks such as interest rate risk and risk of non-repayment. Adjustable-rate residential family real estate loans decrease the interest rate risk to the Bank that is associated with changes in interest rates but involve other risks, primarily because as interest rates rise, the payment by the borrower rises to the extent permitted by the terms of the loan, thereby increasing the potential for default. At the same time, the marketability of the underlying properties may be adversely affected by higher interest rates. Repayment risk may be affected by a number of factors including, but not necessarily limited to, job loss, divorce, illness and personal bankruptcy of the borrower.



Commercial and multi-family real estate lending entails significant additional risks as compared with residential family property lending. Such loans typically involve large loan balances to single borrowers or groups of related borrowers. The payment experience on such loans is typically dependent on the successful operation of the real estate project. The success of such projects is sensitive to changes in supply and demand conditions in the market for commercial real estate as well as economic conditions generally.



Construction lending is generally considered to involve a high risk due to the concentration of principal in a limited number of loans and borrowers and the effects of the general economic conditions on developers and builders. Moreover, a construction loan can involve additional risks because of the inherent difficulty in estimating both a property’s value at completion of the project and the estimated cost (including interest) of the project. The nature of these loans is such that they are generally difficult to evaluate and monitor. In addition, speculative construction loans to a builder are not necessarily pre-sold and thus pose a greater potential risk to the Bank than construction loans to individuals on their personal residence.



Commercial business lending, including lines of credit, is generally considered higher risk due to the concentration of principal in a limited number of loans and borrowers and the effects of general economic conditions on the business. Commercial business loans are primarily secured by inventories and other business assets. In most cases, any repossessed collateral for a defaulted commercial business loans will not provide an adequate source of repayment of the outstanding loan balance.



Home equity lending entails certain risks such as interest rate risk and risk of non-repayment. The marketability of the underlying property may be adversely affected by higher interest rates, decreasing the collateral securing the loan. Repayment risk can be affected by job loss, divorce, illness and personal bankruptcy of the borrower. Home equity line of credit lending entails securing an equity interest in the borrower’s home. In many cases, the Bank’s position in these loans is as a junior lien holder to another institution’s superior lien. This type of lending is often priced on an adjustable rate basis with the rate set at or above a predefined index. Adjustable-rate loans decrease the interest rate risk to the Bank that is associated with changes in interest rates but involve other risks, primarily because as interest rates rise, the payment by the borrower rises to the extent permitted by the terms of the loan, thereby increasing the potential for default.



Other consumer loans generally have more credit risk because of the type and nature of the collateral and, in certain cases, the absence of collateral. Consumer loans generally have shorter terms and higher interest rates than other lending. In addition, consumer lending collections are dependent on the borrower’s continuing financial stability, and thus are more likely to be adversely effected by job loss, divorce, illness and personal bankruptcy. In most cases, any repossessed collateral for a defaulted consumer loan will not provide an adequate source of repayment of the outstanding loan.



An unallocated component is maintained to cover uncertainties that could affect management’s estimates of probable losses. The unallocated component of the allowance reflects the margin of imprecision inherent in underlying assumptions used in the methodologies for estimating allocated and general reserves in the portfolio.



Note 7 - Loans Receivable and Allowance for Loan Losses (Continued)

The following table sets forth the activity in the Company’s allowance for loan losses for the three months ended June 30, 2018. The table also details the amount of total loans receivable, loans receivable that are evaluated individually and collectively for impairment, and the related portion of the allowance for loan losses that is allocated to each loan class, as of June 30, 2018. (In Thousands):







 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



Residential

 

 

Commercial & Multi-family

 

Construction

 

Commercial Business (1)

 

Home Equity (2)

 

Consumer

 

Unallocated

 

Total

Allowance for loan losses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Originated Loans:

$

 2,245 

 

$

 11,880 

 

$

 492 

 

$

 2,676 

 

$

 384 

 

$

 4 

 

$

 198 

 

$

 17,879 

Acquired loans initially recorded at fair value:

 

 369 

 

 

 -

 

 

 -

 

 

 24 

 

 

 -

 

 

 -

 

 

 -

 

 

 393 

Acquired loans with deteriorated credit:

 

 53 

 

 

 12 

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 65 

Beginning Balance, March 31, 2018

 

 2,667 

 

 

 11,892 

 

 

 492 

 

 

 2,700 

 

 

 384 

 

 

 4 

 

 

 198 

 

 

 18,337 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Charge-offs:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Originated Loans:

 

 -

 

 

 -

 

 

 -

 

 

 5 

 

 

 -

 

 

 -

 

 

 -

 

 

 5 

Acquired loans initially recorded at fair value:

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

Acquired loans with deteriorated credit:

 

 -

 

 

 

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

Sub-total:

 

 -

 

 

 -

 

 

 -

 

 

 5 

 

 

 -

 

 

 -

 

 

 -

 

 

 5 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Recoveries:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Originated Loans:

 

 1 

 

 

 -

 

 

 -

 

 

 6 

 

 

 -

 

 

 -

 

 

 -

 

 

 7 

Acquired loans initially recorded at fair value:

 

 85 

 

 

 -

 

 

 -

 

 

 12 

 

 

 -

 

 

 -

 

 

 -

 

 

 97 

Acquired loans with deteriorated credit:

 

 -

 

 

 -

 

 

 -

 

 

 144 

 

 

 -

 

 

 -

 

 

 -

 

 

 144 

Sub-total:

 

 86 

 

 

 -

 

 

 -

 

 

 162 

 

 

 -

 

 

 -

 

 

 -

 

 

 248 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provisions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Originated Loans:

 

 3 

 

 

 1,204 

 

 

 24 

 

 

 723 

 

 

 63 

 

 

 37 

 

 

 90 

 

 

 2,144 

Acquired loans initially recorded at fair value:

 

 (36)

 

 

 92 

 

 

 -

 

 

 4 

 

 

 -

 

 

 -

 

 

 -

 

 

 60 

Acquired loans with deteriorated credit:

 

 -

 

 

 -

 

 

 -

 

 

 (144)

 

 

 -

 

 

 -

 

 

 -

 

 

 (144)

Sub-total:

 

 (33)

 

 

 1,296 

 

 

 24 

 

 

 583 

 

 

 63 

 

 

 37 

 

 

 90 

 

 

 2,060 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Totals:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Originated Loans:

 

 2,249 

 

 

 13,084 

 

 

 516 

 

 

 3,400 

 

 

 447 

 

 

 41 

 

 

 288 

 

 

 20,025 

Acquired loans initially recorded at fair value:

 

 418 

 

 

 92 

 

 

 -

 

 

 40 

 

 

 -

 

 

 -

 

 

 -

 

 

 550 

Acquired loans with deteriorated credit:

 

 53 

 

 

 12 

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 65 

Ending Balance, June 30, 2018

$

 2,720 

 

$

 13,188 

 

$

 516 

 

$

 3,440 

 

$

 447 

 

$

 41 

 

$

 288 

 

$

 20,640 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans Receivable:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ending Balance Originated Loans:

$

 203,661 

 

$

 1,452,907 

 

$

 51,599 

 

$

 105,101 

 

$

 52,382 

 

$

 645 

 

$

 -

 

$

 1,866,295 

Ending Balance Acquired loans initially recorded at fair value:

 

 44,933 

 

 

 158,094 

 

 

 1,798 

 

 

 31,680 

 

 

 21,725 

 

 

 199 

 

 

 -

 

 

 258,429 

Ending Balance Acquired loans with deteriorated credit:

 

 1,402 

 

 

 11,880 

 

 

 2,670 

 

 

 986 

 

 

 400 

 

 

 54 

 

 

 -

 

 

 17,392 

Total Gross Loans:

$

 249,996 

 

$

 1,622,881 

 

$

 56,067 

 

$

 137,767 

 

$

 74,507 

 

$

 898 

 

$

 -

 

$

 2,142,116 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ending Balance: Loans individually

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

evaluated for impairment:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ending Balance Originated Loans:

$

 6,255 

 

$

 12,848 

 

$

 -

 

$

 2,226 

 

$

 1,099 

 

$

 42 

 

$

 -

 

$

 22,470 

Ending Balance Acquired loans initially recorded at fair value:

 

 6,534 

 

 

 4,384 

 

 

 -

 

 

 -

 

 

 329 

 

 

 -

 

 

 -

 

 

 11,247 

Ending Balance Acquired loans with deteriorated credit:

 

 1,401 

 

 

 11,671 

 

 

 2,670 

 

 

 986 

 

 

 400 

 

 

 54 

 

 

 -

 

 

 17,182 

Ending Balance Loans individually 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

evaluated for impairment:

$

 14,190 

 

$

 28,903 

 

$

 2,670 

 

$

 3,212 

 

$

 1,828 

 

$

 96 

 

$

 -

 

$

 50,899 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ending Balance: Loans collectively

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 evaluated for impairment:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ending Balance Originated Loans:

$

 197,406 

 

$

 1,440,059 

 

$

 51,599 

 

$

 102,875 

 

$

 51,283 

 

$

 603 

 

$

 -

 

$

 1,843,825 

Ending Balance Acquired loans initially recorded at fair value:

 

 38,399 

 

 

 153,710 

 

 

 1,798 

 

 

 31,680 

 

 

 21,396 

 

 

 199 

 

 

 -

 

 

 247,182 

Ending Balance Acquired loans with deteriorated credit:

 

 1 

 

 

 209 

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 210 

Ending Balance Loans collectively 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

evaluated for impairment:

$

 235,805 

 

$

 1,593,978 

 

$

 53,397 

 

$

 134,555 

 

$

 72,679 

 

$

 802 

 

$

 -

 

$

 2,091,217 

_____________________________

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Includes business lines of credit.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2) Includes home equity lines of credit.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Note 7 - Loans Receivable and Allowance for Loan Losses (Continued)

The following table set forth the activity in the Company’s allowance for loan losses for the six months ended June 30, 2018, and the related portion of the allowances for loan losses that is allocated to each loan class (in thousands):







 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

Residential

 

 

Commercial & Multi-family

 

Construction

 

Commercial Business (1)

 

 

Home Equity (2)

 

Consumer

 

Unallocated

 

Total

Allowance for credit losses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Originated Loans:

 

$

 2,368 

 

$

 11,656 

 

$

 518 

 

$

 2,018 

 

$

 338 

 

$

 6 

 

$

 177 

 

$

 17,081 

Acquired loans initially recorded at fair value:

 

 

 242 

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 242 

Acquired loans with deteriorated credit:

 

 

 40 

 

 

 12 

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 52 

Beginning Balance, December 31, 2017

 

 

 2,650 

 

 

 11,668 

 

 

 518 

 

 

 2,018 

 

 

 338 

 

 

 6 

 

 

 177 

 

 

 17,375 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Charge-offs:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Originated Loans:

 

 

 302 

 

 -

 -

 

 

 -

 

 -

 5 

 

 -

 -

 

 -

 -

 

 -

 -

 

 -

 307 

Acquired loans initially recorded at fair value:

 

 

 72 

 

 -

 -

 

 

 -

 

 -

 -

 

 -

 6 

 

 -

 -

 

 -

 -

 

 -

 78 

Acquired loans with deteriorated credit:

 

 

 -

 

 -

 -

 

 

 -

 

 -

 -

 

 -

 -

 

 -

 -

 

 -

 -

 

 -

 -

Sub-total:

 

 

 374 

 

 

 -

 

 

 -

 

 

 5 

 

 

 6 

 

 

 -

 

 

 -

 

 

 385 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Recoveries:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Originated Loans:

 

 

 1 

 

 

 -

 

 

 -

 

 

 6 

 

 

 -

 

 

 -

 

 

 -

 

 

 7 

Acquired loans initially recorded at fair value:

 

 

 85 

 

 

 -

 

 

 -

 

 

 12 

 

 

 -

 

 

 -

 

 

 -

 

 

 97 

Acquired loans with deteriorated credit:

 

 

 -

 

 

 -

 

 

 -

 

 

 144 

 

 

 -

 

 

 -

 

 

 -

 

 

 144 

Sub-total:

 

 

 86 

 

 

 -

 

 

 -

 

 

 162 

 

 

 -

 

 

 -

 

 

 -

 

 

 248 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provisions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Originated Loans:

 

 

 182 

 

 

 1,428 

 

 

 (2)

 

 

 1,381 

 

 

 109 

 

 

 35 

 

 

 111 

 

 

 3,244 

Acquired loans initially recorded at fair value:

 

 

 163 

 

 

 92 

 

 

 -

 

 

 28 

 

 

 6 

 

 

 -

 

 

 -

 

 

 289 

Acquired loans with deteriorated credit:

 

 

 13 

 

 

 -

 

 

 -

 

 

 (144)

 

 

 -

 

 

 -

 

 

 -

 

 

 (131)

Sub-total:

 

 

 358 

 

 

 1,520 

 

 

 (2)

 

 

 1,265 

 

 

 115 

 

 

 35 

 

 

 111 

 

 

 3,402 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Totals:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Originated Loans:

 

 

 2,249 

 

 

 13,084 

 

 

 516 

 

 

 3,400 

 

 

 447 

 

 

 41 

 

 

 288 

 

 

 20,025 

Acquired loans initially recorded at fair value:

 

 

 418 

 

 

 92 

 

 

 -

 

 

 40 

 

 

 -

 

 

 -

 

 

 -

 

 

 550 

Acquired loans with deteriorated credit:

 

 

 53 

 

 

 12 

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 65 

Ending Balance, June 30, 2018

 

$

 2,720 

 

$

 13,188 

 

$

 516 

 

$

 3,440 

 

$

 447 

 

$

 41 

 

$

 288 

 

$

 20,640 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

_____________________________

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Includes business lines of credit.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2) Includes home equity lines of credit.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





Note 7 - Loans Receivable and Allowance for Loan Losses (Continued)



The following table details the amount of total loans receivable that are evaluated individually and collectively for impairment, and the related portion of the allowance for loan losses that is allocated to each loan class, as of December 31, 2017. (In Thousands):

____



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

Residential

 

 

Commercial & Multi-family

 

 

Construction

 

 

Commercial Business (1)

 

Home Equity (2)

 

Consumer

 

 

Unallocated

 

 

Total



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ending Balance Originated Loans:

 

$

 182,544 

 

$

 1,213,390 

 

$

 50,497 

 

$

 66,775 

 

$

 38,725 

 

$

 1,183 

 

$

 -

 

$

 1,553,114 

Ending Balance Acquired Loans:

 

 

 47,808 

 

 

 46,609 

 

 

 -

 

 

 4,057 

 

 

 8,955 

 

 

 122 

 

 

 -

 

 

 107,551 

Ending Balance Acquired loans with deteriorated credit:

 

 

 1,413 

 

 

 731 

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 2,144 

Total Gross Loans:

 

$

 231,765 

 

$

 1,260,730 

 

$

 50,497 

 

$

 70,832 

 

$

 47,680 

 

$

 1,305 

 

$

 -

 

$

 1,662,809 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ending Balance: Loans individually

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

evaluated for impairment:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ending Balance Originated Loans:

 

$

 7,944 

 

$

 12,212 

 

$

 -

 

$

 1,780 

 

$

 1,042 

 

$

 -

 

$

 -

 

$

 22,978 

Ending Balance Acquired Loans:

 

 

 7,548 

 

 

 5,032 

 

 

 -

 

 

 -

 

 

 302 

 

 

 -

 

 

 -

 

 

 12,882 

Ending Balance Acquired loans with deteriorated credit:

 

 

 1,413 

 

 

 513 

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 1,926 

Ending Balance Loans individually evaluated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

for impairment:

 

$

 16,905 

 

$

 17,757 

 

$

 -

 

$

 1,780 

 

$

 1,344 

 

$

 -

 

$

 -

 

$

 37,786 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ending Balance: Loans collectively

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

evaluated for impairment:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ending Balance Originated Loans:

 

$

 174,600 

 

$

 1,201,178 

 

$

 50,497 

 

$

 64,995 

 

$

 37,683 

 

$

 1,183 

 

$

 -

 

$

 1,530,136 

Ending Balance Acquired Loans:

 

 

 40,260 

 

 

 41,577 

 

 

 -

 

 

 4,057 

 

 

 8,653 

 

 

 122 

 

 

 -

 

 

 94,669 

Ending Balance Acquired loans with deteriorated credit:

 

 

 -

 

 

 218 

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 218 

Ending Balance Loans collectively 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

evaluated for impairment:

 

$

 214,860 

 

$

 1,242,973 

 

$

 50,497 

 

$

 69,052 

 

$

 46,336 

 

$

 1,305 

 

$

 -

 

$

 1,625,023 



(1)

Includes business lines of credit.

(2)

Includes home equity lines of credit.



Note 7 - Loans Receivable and Allowance for Loan Losses (Continued)



The following table sets forth the activity in the Company’s allowance for loan losses for the three months ended June 30, 2017. The table also details the amount of total loans receivable that are evaluated individually and collectively for impairment, and the related portion of the allowance for loan losses that is allocated to each loan class, as of June 30, 2017 (In Thousands):





 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

Residential

 

 

Commercial & Multi-family

 

Construction

 

Business (1)

 

Equity (2)

 

Consumer

 

Unallocated

 

Total

Allowance for credit losses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Originated Loans:

 

$

 2,151 

 

$

 10,850 

 

$

 756 

 

$

 3,117 

 

$

 335 

 

$

 2 

 

$

 150 

 

$

 17,361 

Acquired loans initially recorded at fair value:

 

 

 112 

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 112 

Acquired loans with deteriorated credit:

 

 

 41 

 

 

 12 

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 53 

Beginning Balance, March 31, 2017

 

 

 2,304 

 

 

 10,862 

 

 

 756 

 

 

 3,117 

 

 

 335 

 

 

 2 

 

 

 150 

 

 

 17,526 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Charge-offs:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Originated Loans:

 

 

 -

 

 -

 119 

 -

 

 -

 

 

 -

 

 -

 -

 

 -

 -

 

 -

 -

 

 -

 119 

Acquired loans initially recorded at fair value:

 

 

 219 

 

 -

 -

 

 

 -

 

 

 -

 

 

 -

 

 -

 -

 

 -

 -

 

 -

 219 

Sub-total:

 

 

 219 

 

 

 119 

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 338 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provisions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Originated Loans:

 

 

 (59)

 

 

 451 

 

 

 (3)

 

 

 112 

 

 

 12 

 

 

 3 

 

 

 (51)

 

 

 465 

Acquired loans initially recorded at fair value:

 

 

 310 

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 

 

 

 310 

Acquired loans with deteriorated credit:

 

 

 -

 

 

 1 

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 1 

Sub-total:

 

 

 251 

 

 

 452 

 

 

 (3)

 

 

 112 

 

 

 12 

 

 

 3 

 

 

 (51)

 

 

 776 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Totals:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Originated Loans:

 

 

 2,092 

 

 

 11,182 

 

 

 753 

 

 

 3,229 

 

 

 347 

 

 

 5 

 

 

 99 

 

 

 17,707 

Acquired loans initially recorded at fair value:

 

 

 203 

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 203 

Acquired loans with deteriorated credit:

 

 

 41 

 

 

 13 

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 54 

Ending Balance, June 30, 2017

 

$

 2,336 

 

$

 11,195 

 

$

 753 

 

$

 3,229 

 

$

 347 

 

$

 5 

 

$

 99 

 

$

 17,964 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans Receivable:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ending Balance Originated Loans:

 

$

 164,562 

 

$

 1,130,902 

 

$

 73,376 

 

$

 68,230 

 

$

 38,058 

 

$

 1,196 

 

$

 -

 

$

 1,476,324 

Ending Balance Acquired loans initially recorded at fair value:

 

 

 52,382 

 

 

 51,933 

 

 

 -

 

 

 3,752 

 

 

 10,304 

 

 

 176 

 

 

 -

 

 

 118,547 

Ending Balance Acquired loans with deteriorated credit:

 

 

 1,425 

 

 

 742 

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 2,167 

Total Gross Loans:

 

$

 218,369 

 

$

 1,183,577 

 

$

 73,376 

 

$

 71,982 

 

$

 48,362 

 

$

 1,372 

 

$

 -

 

$

 1,597,038 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ending Balance: Loans individually

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

evaluated for impairment:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ending Balance Originated Loans:

 

$

 9,038 

 

$

 12,783 

 

$

 -

 

$

 4,180 

 

$

 1,093 

 

$

 -

 

$

 -

 

$

 27,094 

Ending Balance Acquired loans initially recorded at fair value:

 

 

 7,771 

 

 

 5,832 

 

 

 -

 

 

 -

 

 

 685 

 

 

 -

 

 

 -

 

 

 14,288 

Ending Balance Acquired loans with deteriorated credit:

 

 

 1,425 

 

 

 519 

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 1,944 

Ending Balance Loans individually 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

evaluated for impairment:

 

$

 18,234 

 

$

 19,134 

 

$

 -

 

$

 4,180 

 

$

 1,778 

 

$

 -

 

$

 -

 

$

 43,326 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ending Balance: Loans collectively

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

evaluated for impairment:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ending Balance Originated Loans:

 

$

 155,524 

 

$

 1,118,119 

 

$

 73,376 

 

$

 64,050 

 

$

 36,965 

 

$

 1,196 

 

$

 -

 

$

 1,449,230 

Ending Balance Acquired loans initially recorded at fair value:

 

 

 44,611 

 

 

 46,101 

 

 

 -

 

 

 3,752 

 

 

 9,619 

 

 

 176 

 

 

 -

 

 

 104,259 

Ending Balance Acquired loans with deteriorated credit:

 

 

 -

 

 

 223 

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 223 

Ending Balance Loans collectively 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

evaluated for impairment:

 

$

 200,135 

 

$

 1,164,443 

 

$

 73,376 

 

$

 67,802 

 

$

 46,584 

 

$

 1,372 

 

$

 -

 

$

 1,553,712 

_____________________________

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Includes business lines of credit.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2) Includes home equity lines of credit.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



Note 7 - Loans Receivable and Allowance for Loan Losses (Continued)



The following table sets forth the activity in the Company’s allowance for loans losses for the six months ended June 30, 2017, and the related portion of the allowance for loan losses that is allocated to each loan class (in thousands):







 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

Residential

 

 

Commercial & Multi-family

 

Construction

 

Commercial Business (1)

 

 

Home Equity (2)

 

Consumer

 

Unallocated

 

Total

Allowance for credit losses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Originated Loans:

 

$

 2,098 

 

$

 10,621 

 

$

 736 

 

$

 3,079 

 

$

 374 

 

$

 2 

 

$

 69 

 

$

 16,979 

Acquired loans initially recorded at fair value:

 

 

 170 

 

 

 -

 

 

 -

 

 

 -

 

 

 4 

 

 

 -

 

 

 -

 

 

 174 

Acquired loans with deteriorated credit:

 

 

 43 

 

 

 13 

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 56 

Beginning Balance, December 31, 2016

 

 

 2,311 

 

 

 10,634 

 

 

 736 

 

 

 3,079 

 

 

 378 

 

 

 2 

 

 

 69 

 

 

 17,209 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Charge-offs:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Originated Loans:

 

 

 -

 

 

 190 

 

 

 -

 

 

 -

 

 

 -

 

 

 6 

 

 

 -

 

 -

 196 

Acquired loans initially recorded at fair value:

 

 

 308 

 

 

 -

 

 

 -

 

 

 -

 

 

 34 

 

 

 -

 

 

 -

 

 -

 342 

Sub-total:

 

 

 308 

 

 

 190 

 

 

 -

 

 

 -

 

 

 34 

 

 

 6 

 

 

 -

 

 

 538 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Recoveries:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acquired loans with deteriorated credit:

 

 

 -

 

 

 -

 

 

 -

 

 

 19 

 

 

 -

 

 

 -

 

 

 -

 

 

 19 

Sub-total:

 

 

 -

 

 

 -

 

 

 -

 

 

 19 

 

 

 -

 

 

 -

 

 

 -

 

 

 19 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provisions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Originated Loans:

 

 

 (6)

 

 

 751 

 

 

 17 

 

 

 150 

 

 

 (27)

 

 

 9 

 

 

 30 

 

 

 924 

Acquired loans initially recorded at fair value:

 

 

 341 

 

 

 -

 

 

 -

 

 

 -

 

 

 30 

 

 

 -

 

 

 -

 

 

 371 

Acquired loans with deteriorated credit:

 

 

 (2)

 

 

 -

 

 

 -

 

 

 (19)

 

 

 -

 

 

 -

 

 

 -

 

 

 (21)

Sub-total:

 

 

 333 

 

 

 751 

 

 

 17 

 

 

 131 

 

 

 3 

 

 

 9 

 

 

 30 

 

 

 1,274 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Totals:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Originated Loans:

 

 

 2,092 

 

 

 11,182 

 

 

 753 

 

 

 3,229 

 

 

 347 

 

 

 5 

 

 

 99 

 

 

 17,707 

Acquired loans initially recorded at fair value:

 

 

 203 

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 203 

Acquired loans with deteriorated credit:

 

 

 41 

 

 

 13 

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 54 

Ending Balance, June 30, 2017

 

$

 2,336 

 

$

 11,195 

 

$

 753 

 

$

 3,229 

 

$

 347 

 

$

 5 

 

$

 99 

 

$

 17,964 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

_____________________________

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Includes business lines of credit.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2) Includes home equity lines of credit.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



Note 7 - Loans Receivable and Allowance for Loan Losses (Continued)

The table below sets forth the amounts and types of non-accrual loans in the Company’s loan portfolio as of June 30, 2018 and December 31, 2017. Loans are placed on non-accrual status when they become more than 90 days delinquent, or when the collection of principal and/or interest become doubtful. As of June 30, 2018 and December 31, 2017, total non-accrual loans differed from the amount of total loans past due greater than 90 days due to troubled debt restructuring of loans which are maintained on non-accrual status for a minimum of six months and until the borrower has demonstrated its ability to satisfy the terms of the restructured loan.   








 

 

 

 

 



 

 

 

 

 



 

As of June 30, 2018

 

 

As of December 31, 2017



 

(In Thousands)

 

 

(In Thousands)

Non-Accruing Loans:

 

 

 

 

 



 

 

 

 

 

Originated loans:

 

 

 

 

 

Residential one-to-four family

$

 1,480 

 

$

 2,545 

Commercial and multi-family

 

 5,578 

 

 

 6,762 

Commercial business(1) 

 

 163 

 

 

 299 

Home equity(2) 

 

 397 

 

 

 201 

Consumer

 

 42 

 

 

 -



 

 

 

 

 

Sub-total:

 

 7,660 

 

 

 9,807 



 

 

 

 

 

Acquired loans initially recorded at fair value:

 

 

 

 

 

Residential one-to-four family

 

 2,474 

 

 

 2,372 

Commercial and multi-family

 

 590 

 

 

 850 

Home equity(2) 

 

 39 

 

 

 7 



 

 

 

 

 

Sub-total:

 

 3,103 

 

 

 3,229 



 

 

 

 

 

Total

$

 10,763 

 

$

 13,036 



 

 

 

 

 



 

 

 

 

 



 

 

 

 

 



__________

(1) Includes business lines of credit.

(2) Includes home equity lines of credit.







Nonaccrual loans in the preceding table do not include loans acquired with deteriorated credit quality which were recorded at their fair value at acquisition and totaled $11.6 million at June 30, 2018.

Note 7 - Loans Receivable and Allowance for Loan Losses (Continued)



The following table summarizes the average recorded investment and interest income recognized on impaired loans with no related allowance recorded by portfolio class for the three months and six months ended June 30, 2018 and 2017 (In Thousands):









 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

Three Months Ended June 30,

 

Six Months Ended June 30,



 

2018

 

 

2018

 

 

2017

 

 

2017

 

2018

 

 

2018

 

 

2017

 

 

2017



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

Average

 

 

Interest

 

 

Average

 

 

Interest

 

Average

 

 

Interest

 

 

Average

 

 

Interest



 

Recorded

 

 

Income

 

 

Recorded

 

 

Income

 

Recorded

 

 

Income

 

 

Recorded

 

 

Income

Originated loans

 

Investment

 

 

Recognized

 

 

Investment

 

 

Recognized

 

Investment

 

 

Recognized

 

 

Investment

 

 

Recognized

With no related allowance recorded:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential one-to-four family

$

 1,912 

 

$

 7 

 

$

 3,640 

 

$

 24 

 

 1,965 

 

$

 15 

 

$

 4,299 

 

$

 49 

Commercial and Multi-family

 

 11,973 

 

 

 86 

 

 

 12,365 

 

 

 63 

 

 12,052 

 

 

 172 

 

 

 11,287 

 

 

 125 

Commercial business(1) 

 

 -

 

 

 43 

 

 

 712 

 

 

 11 

 

 622 

 

 

 87 

 

 

 1,095 

 

 

 21 

Home equity(2) 

 

 843 

 

 

 7 

 

 

 865 

 

 

 9 

 

 912 

 

 

 15 

 

 

 941 

 

 

 18 

  Consumer

 

 926 

 

 

 -

 

 

 -

 

 

 -

 

 -

 

 

 -

 

 

 3 

 

 

 -



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sub-total:

$

 15,654 

 

$

 143 

 

$

 17,582 

 

$

 107 

 

 15,551 

 

$

 289 

 

$

 17,625 

 

$

 213 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acquired loans initially recorded at fair value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

With no related allowance recorded:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential one-to-four family

$

 3,385 

 

$

 23 

 

$

 5,306 

 

$

 35 

 

 3,630 

 

$

 46 

 

$

 4,998 

 

$

 71 

Commercial and Multi-family

 

 3,639 

 

 

 54 

 

 

 4,127 

 

 

 56 

 

 3,683 

 

 

 109 

 

 

 4,845 

 

 

 112 

Home equity(2) 

 

 245 

 

 

 3 

 

 

 628 

 

 

 -

 

 235 

 

 

 7 

 

 

 563 

 

 

 12 

Consumer

 

 -

 

 

 -

 

 

 -

 

 

 6 

 

 -

 

 

 -

 

 

 -

 

 

 -



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sub-total

$

 7,269 

 

$

 80 

 

$

 10,061 

 

$

 97 

 

 7,548 

 

$

 162 

 

$

 10,406 

 

$

 195 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acquired loans with deteriorated credit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

With no related allowance recorded:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential one-to-four family

$

 1,035 

 

$

 16 

 

$

 1,430 

 

$

 22 

 

 1,161 

 

$

 33 

 

$

 1,434 

 

$

 44 

Commercial and Multi-family

 

 6,091 

 

 

 122 

 

 

 520 

 

 

 7 

 

 4,231 

 

 

 244 

 

 

 521 

 

 

 14 

  Construction

 

 1,335 

 

 

 213 

 

 

 -

 

 

 -

 

 890 

 

 

 426 

 

 

 

 

 

 

Commercial business(1) 

 

 493 

 

 

 135 

 

 

 -

 

 

 -

 

 329 

 

 

 270 

 

 

 

 

 

 

Home equity(2) 

 

 200 

 

 

 5 

 

 

 -

 

 

 -

 

 133 

 

 

 10 

 

 

 

 

 

 

  Consumer

 

 27 

 

 

 1 

 

 

 -

 

 

 -

 

 18 

 

 

 1 

 

 

 -

 

 

 -



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sub-total:

$

 9,181 

 

$

 492 

 

$

 1,950 

 

$

 29 

 

 6,762 

 

$

 984 

 

$

 1,955 

 

$

 58 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Impaired Loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

With no related allowance recorded:

$

 32,104 

 

$

 715 

 

$

 29,593 

 

$

 233 

 

 29,861 

 

$

 1,435 

 

$

 29,986 

 

$

 466 





__________

(1) Includes business lines of credit.
(2) Includes home equity lines of credit.

Note 7 - Loans Receivable and Allowance for Loan Losses (Continued)



The following table summarizes the average recorded investment and interest income recognized on impaired loans with allowance recorded by portfolio class for the three and six months ended June 30, 2018 and 2017. (In Thousands):







 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

Three Months Ended June 30,

 

 

Six Months Ended June 30,



 

2018

 

 

2018

 

 

2017

 

 

2017

 

 

2018

 

 

2018

 

 

2017

 

 

2017



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

Average

 

 

Interest

 

 

Average

 

 

Interest

 

 

Average

 

 

Interest

 

 

Average

 

 

Interest



 

Recorded

 

 

Income

 

 

Recorded

 

 

Income

 

 

Recorded

 

 

Income

 

 

Recorded

 

 

Income

Originated loans

 

Investment

 

 

Recognized

 

 

Investment

 

 

Recognized

 

 

Investment

 

 

Recognized

 

 

Investment

 

 

Recognized

with an allowance recorded:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential one-to-four family

$

 4,752 

 

$

 47 

 

$

 6,026 

 

$

 48 

 

$

 5,125 

 

$

 95 

 

$

 5,546 

 

$

 96 

Commercial and Multi-family

 

 485 

 

 

 -

 

 

 839 

 

 

 10 

 

 

 323 

 

 

 -

 

 

 1,267 

 

 

 19 

Commercial business(1) 

 

 1,094 

 

 

 20 

 

 

 3,427 

 

 

 35 

 

 

 1,262 

 

 

 40 

 

 

 3,039 

 

 

 69 

Home equity(2) 

 

 156 

 

 

 2 

 

 

 284 

 

 

 3 

 

 

 156 

 

 

 3 

 

 

 287 

 

 

 5 

Consumer

 

 21 

 

 

 -

 

 

 -

 

 

 -

 

 

 14 

 

 

 -

 

 

 -

 

 

 -



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sub-total:

$

 6,508 

 

$

 69 

 

$

 10,576 

 

$

 96 

 

$

 6,880 

 

$

 138 

 

$

 10,139 

 

$

 189 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acquired loans initially recorded at fair value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

with an allowance recorded:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential one-to-four family

$

 3,564 

 

$

 28 

 

$

 2,590 

 

$

 21 

 

$

 3,519 

 

$

 56 

 

$

 2,688 

 

$

 43 

Commercial and Multi-family

 

 923 

 

 

 5 

 

 

 1,718 

 

 

 16 

 

 

 1,035 

 

 

 9 

 

 

 1,249 

 

 

 32 

Home equity(2) 

 

 85 

 

 

 1 

 

 

 106 

 

 

 2 

 

 

 85 

 

 

 3 

 

 

 313 

 

 

 3 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sub-total

$

 4,572 

 

$

 34 

 

$

 4,414 

 

$

 39 

 

$

 4,639 

 

$

 68 

 

$

 4,250 

 

$

 78 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acquired loans with deteriorated credit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

with an allowance recorded:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential one-to-four family

$

 370 

 

$

 5 

 

$

 -

 

$

 -

 

$

 246 

 

$

 10 

 

$

 -

 

$

 -



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sub-total:

$

 370 

 

$

 5 

 

$

 -

 

$

 -

 

$

 246 

 

$

 10 

 

$

 -

 

$

 -



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Impaired Loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

with an allowance recorded:

$

 11,450 

 

$

 108 

 

$

 14,990 

 

$

 135 

 

$

 11,765 

 

$

 216 

 

$

 14,389 

 

$

 267 





__________

(1) Includes business lines of credit.
(2) Includes home equity lines of credit.

Note 7 - Loans Receivable and Allowance for Loan Losses (Continued)



The following table summarizes the recorded investment and unpaid principal balances where there is no related allowance on impaired loans by portfolio class at

June 30, 2018 and December 31, 2017. (In Thousands):







 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

As of June 30, 2018

 

 

As of December 31, 2017



 

Recorded

 

 

Unpaid Principal

 

 

Related

 

 

Recorded

 

 

Unpaid Principal

 

 

Related

Originated loans

 

Investment

 

 

Balance

 

 

Allowance

 

 

Investment

 

 

Balance

 

 

Allowance

with no related allowance recorded:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential one-to-four family

$

 1,934 

 

$

 1,975 

 

$

-

 

$

 2,073 

 

$

 2,236 

 

$

-

Commercial and multi-family

 

 12,363 

 

 

 12,819 

 

 

-

 

 

 12,212 

 

 

 12,763 

 

 

-

Commercial business(1) 

 

 1,104 

 

 

 3,991 

 

 

-

 

 

 181 

 

 

 908 

 

 

-

Home equity(2) 

 

 944 

 

 

 999 

 

 

-

 

 

 885 

 

 

 932 

 

 

-



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sub-total:

$

 16,345 

 

$

 19,784 

 

$

 -

 

$

 15,351 

 

$

 16,839 

 

$

 -



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acquired loans initially recorded at fair

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

value with no related allowance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

recorded:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential one-to-four family

$

 3,138 

 

$

 3,302 

 

$

-

 

$

 4,119 

 

$

 4,285 

 

$

-

Commercial and Multi-family

 

 3,464 

 

 

 3,464 

 

 

-

 

 

 3,772 

 

 

 3,773 

 

 

-

Home equity(2) 

 

 244 

 

 

 244 

 

 

-

 

 

 216 

 

 

 268 

 

 

-



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sub-total:

$

 6,846 

 

$

 7,010 

 

$

 -

 

$

 8,107 

 

$

 8,326 

 

$

 -



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acquired loans with deteriorated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

credit with no related allowance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

recorded:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential one-to-four family

$

 1,032 

 

$

 1,595 

 

$

-

 

$

 1,413 

 

$

 2,031 

 

$

-

Commercial and Multi-family

 

 11,671 

 

 

 12,145 

 

 

-

 

 

 513 

 

 

 537 

 

 

-

Construction

 

 2,670 

 

 

 11,886 

 

 

-

 

 

 -

 

 

 -

 

 

-

Commercial business(1) 

 

 986 

 

 

 7,355 

 

 

-

 

 

 -

 

 

 -

 

 

-

Home equity(2) 

 

 400 

 

 

 400 

 

 

-

 

 

 -

 

 

 -

 

 

-

Consumer

 

 54 

 

 

 54 

 

 

-

 

 

 -

 

 

 -

 

 

-



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sub-total:

$

 16,813 

 

$

 33,435 

 

$

 -

 

$

 1,926 

 

$

 2,568 

 

$

 -



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Impaired Loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

with no related allowance recorded:

$

 40,004 

 

$

 60,229 

 

$

 -

 

$

 25,384 

 

$

 27,733 

 

$

 -



__________

(1) Includes business lines of credit.
(2) Includes home equity lines of credit.

Note 7 - Loans Receivable and Allowance for Loan Losses (Continued)

The following table summarizes the recorded investment, unpaid principal balance, and the related allowance on impaired loans by portfolio class at June 30, 2018 and December 31, 2017. (In Thousands):





 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

As of June 30, 2018

 

 

As of December 31, 2017



 

Recorded

 

 

Unpaid Principal

 

 

Related

 

 

Recorded

 

 

Unpaid Principal

 

 

Related

Originated loans

 

Investment

 

 

Balance

 

 

Allowance

 

 

Investment

 

 

Balance

 

 

Allowance

with an allowance recorded:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential one-to-four family

$

 4,321 

 

$

 4,321 

 

$

 252 

 

$

 5,871 

 

$

 5,871 

 

$

 508 

Commercial and Multi-family

 

 485 

 

 

 526 

 

 

 112 

 

 

 -

 

 

 -

 

 

 -

Commercial business(1) 

 

 1,122 

 

 

 1,420 

 

 

 834 

 

 

 1,599 

 

 

 2,431 

 

 

 1,033 

Home equity(2) 

 

 155 

 

 

 155 

 

 

 23 

 

 

 157 

 

 

 157 

 

 

 25 

Consumer

 

 42 

 

 

 42 

 

 

 42 

 

 

 -

 

 

 -

 

 

 -



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sub-total:

$

 6,125 

 

$

 6,464 

 

$

 1,263 

 

$

 7,627 

 

$

 8,459 

 

$

 1,566 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acquired loans initially recorded at fair

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

value with an allowance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

recorded:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 -

 

 

 

Residential one-to-four family

$

 3,396 

 

$

 3,547 

 

$

 463 

 

$

 3,429 

 

$

 3,580 

 

$

 281 

Commercial and Multi-family

 

 920 

 

 

 973 

 

 

 293 

 

 

 1,260 

 

 

 1,313 

 

 

 179 

Home equity(2) 

 

 85 

 

 

 85 

 

 

 6 

 

 

 86 

 

 

 86 

 

 

 7 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sub-total

$

 4,401 

 

$

 4,605 

 

$

 762 

 

$

 4,775 

 

$

 4,979 

 

$

 467 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acquired loans with deteriorated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

credit with an allowance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

recorded:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential one-to-four family

$

 369 

 

$

 417 

 

$

 13 

 

$

 -

 

$

 -

 

$

 -



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sub-total:

$

 369 

 

$

 417 

 

$

 13 

 

$

 -

 

$

 -

 

$

 -



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Impaired Loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

with an allowance recorded:

$

 10,895 

 

$

 11,486 

 

$

 2,038 

 

$

 12,402 

 

$

 13,438 

 

$

 2,033 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Impaired Loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

with no related allowance recorded:

$

 40,004 

 

$

 60,229 

 

$

 -

 

$

 25,384 

 

$

 27,733 

 

$

 -



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Impaired Loans:

$

 50,899 

 

$

 71,715 

 

$

 2,038 

 

$

 37,786 

 

$

 41,171 

 

$

 2,033 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

__________

(1) Includes business lines of credit.

(2) Includes home equity lines of credit.



Note 7 - Loans Receivable and Allowance for Loan Losses (Continued)

A troubled debt restructured (“TDR”) is a loan that has been modified whereby the Company has agreed to make certain concessions to a borrower to meet the needs of both the borrower and the Company to maximize the ultimate recovery of a loan. A TDR occurs when a borrower is experiencing, or is expected to experience, financial difficulties and the loan is modified using a modification that would otherwise not be granted to the borrower. The types of concessions granted generally include, but are not limited to interest rate reductions, limitations on the accrued interest charged, term extensions, and deferment of principal.









 

 

 

 



 

At June 30, 2018

 

At December 31, 2017



 

(In thousands)

Recorded investment in TDRs:

 

 

 

 

Accrual status

$

 20,693 

$

 20,058 

Non-accrual status

 

 7,535 

 

 8,408 

       Total recorded investment in TDRs

$

 28,228 

$

 28,466 

 

 

 

 

 

 

 

 

 

 



 

 

 

 



 

 

\

 

 

 

 

There were no TDRs during the three months ended June 30, 2018

The following table summarizes information with regard to troubled debt restructurings which occurred during the three months ended June 30th, 2017.



 

 

 

 

 

 

 

 

Three Months Ended June 30, 2017 (Dollars in Thousands)

 

 

 

 

Pre-Modification Outstanding

 

 

Post-Modification Outstanding



 

Number of Contracts

 

 

Recorded Investments

 

 

Recorded Investments



 

 

 

 

 

 

 

 

Originated loans:

 

 

 

 

 

 

 

 

Commercial and multi-family

 

 1 

 

 

 2,804 

 

 

 2,851 



 

 

 

 

 

 

 

 

Sub-total:

 

 1 

 

$

 2,804 

 

$

 2,851 



 

 

 

 

 

 

 

 

Acquired loans initially recorded at fair value:

 

 

 

 

 

 

 

 

Residential one-to-four family

 

 3 

 

$

 767 

 

$

 919 



 

 

 

 

 

 

 

 

Sub-total:

 

 3 

 

$

 767 

 

$

 919 



 

 

 

 

 

 

 

 

Total

 

 4 

 

$

 3,571 

 

$

 3,770 



The loans included above are considered TDRs as a result of the Company implementing one or more of the following concessions: granting a material extension of time, issuing a forbearance agreement, adjusting the interest rate to a below market rate and/or accepting interest only for a period of time or a change in amortization period. All TDRs were considered impaired and therefore were individually evaluated for impairment in the calculation of the allowance for loan losses. Prior to their classification as TDRs, certain of these loans had been collectively evaluated for impairment in the calculation of the allowance for loan losses.



Note 7 - Loans Receivable and Allowance for Loan Losses (Continued) 

Troubled debt restructurings for which there was a payment default within twelve months of restructuring during the three months ended June 30 totaled $639,000 for one contract in 2018 and $1,358,000 for two contracts in 2017.



The following tables summarize information with regards to troubled debt restructuring which occurred during the six months ended June 30, 2018 and 2017 (dollars in thousands):





 

 

 

 

 

 

 

 

Six Months Ended June 30, 2018

 

 

 

 

Pre-Modification Outstanding

 

 

Post-Modification Outstanding



 

Number of Contracts

 

 

Recorded Investments

 

 

Recorded Investments



 

 

 

 

 

 

 

 

Originated loans:

 

 

 

 

 

 

 

 

Residential one-to-four family

 

 1 

 

$

 640 

 

$

 640 

Commercial and multi-family

 

 -

 

 

 -

 

 

 -

Commercial business(1) 

 

 -

 

 

 -

 

 

 -

Home equity(2) 

 

-

 

 

-

 

 

-



 

 

 

 

 

 

 

 

Sub-total:

 

 1 

 

 

 640 

 

 

 640 



 

 

 

 

 

 

 

 

Acquired loans initially recorded at fair value:

 

 

 

 

 

 

 

 

Residential one-to-four family

 

 1 

 

 

 179 

 

 

 179 

Commercial and Multi-family

 

-

 

 

-

 

 

 -

Commercial business(1) 

 

-

 

 

-

 

 

-

Home equity(2) 

 

 -

 

 

 -

 

 

 -



 

 

 

 

 

 

 

 

Sub-total:

 

 1 

 

 

 179 

 

 

 179 



 

 

 

 

 

 

 

 

Total

 

 2 

 

$

 819 

 

$

 819 

_________

(1) Includes business lines of credit.

(2) Includes home equity lines of credit.









 

 

 

 

 

 

 

 

Six Months Ended June 30, 2017

 

 

 

 

Pre-Modification Outstanding

 

 

Post-Modification Outstanding



 

Number of Contracts

 

 

Recorded Investments

 

 

Recorded Investments



 

 

 

 

 

 

 

 

Originated loans:

 

 

 

 

 

 

 

 

Residential one-to-four family

 

 2 

 

$

 1,445 

 

$

 1,556 

Commercial and multi-family

 

 3 

 

 

 4,441 

 

 

 4,608 



 

 

 

 

 

 

 

 

Sub-total:

 

 5 

 

 

 5,886 

 

 

 6,164 



 

 

 

 

 

 

 

 

Acquired loans initially recorded at fair value:

 

 

 

 

 

 

 

 

Residential one-to-four family

 

 4 

 

 

 840 

 

 

 1,023 



 

 

 

 

 

 

 

 

Sub-total:

 

 4 

 

 

 840 

 

 

 1,023 



 

 

 

 

 

 

 

 

Total

 

 9 

 

$

 6,726 

 

$

 7,187 



Note 7 - Loans Receivable and Allowance for Loan Losses (Continued)



Troubled debt restructurings for which there was a payment default within twelve months of restructuring during the six months ended June 30 totaled $878,000 for two contracts in 2018 and $1,780,000 for three contracts in 2017.



The following table sets forth the delinquency status of total loans receivable as of June 30, 2018:



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans Receivable



30-59 Days

 

60-90 Days

 

Greater Than

 

Total Past

 

 

 

 

Total Loans

 

>90 Days



Past Due

 

Past Due

 

90 Days

 

Due

 

Current

 

Receivable

 

and Accruing



 

(In Thousands)

Originated loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential one-to-four family

$

 1,649 

 

$

 406 

 

$

 1,217 

 

$

 3,272 

 

$

 200,389 

 

$

 203,661 

 

$

 -

Commercial and multi-family

 

 6,980 

 

 

 1,531 

 

 

 1,294 

 

 

 9,805 

 

 

 1,443,102 

 

 

 1,452,907 

 

 

 125 

Construction

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 51,599 

 

 

 51,599 

 

 

 -

Commercial business(1) 

 

 192 

 

 

 66 

 

 

 696 

 

 

 954 

 

 

 104,147 

 

 

 105,101 

 

 

 599 

Home equity(2) 

 

 313 

 

 

 44 

 

 

 326 

 

 

 683 

 

 

 51,699 

 

 

 52,382 

 

 

 122 

Consumer

 

 3 

 

 

 1 

 

 

 42 

 

 

 46 

 

 

 599 

 

 

 645 

 

 

 -



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sub-total:

$

 9,137 

 

$

 2,048 

 

$

 3,575 

 

$

 14,760 

 

$

 1,851,535 

 

$

 1,866,295 

 

$

 846 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acquired loans initially recorded at fair value:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential one-to-four family

$

 315 

 

$

 284 

 

$

 1,783 

 

$

 2,382 

 

$

 42,551 

 

 

 44,933 

 

$

 -

Commercial and multi-family

 

 5,877 

 

 

 2,564 

 

 

 590 

 

 

 9,031 

 

 

 149,063 

 

 

 158,094 

 

 

 -

Construction

 

 643 

 

 

 -

 

 

 -

 

 

 643 

 

 

 1,155 

 

 

 1,798 

 

 

 247 

Commercial business(1) 

 

 4,456 

 

 

 21 

 

 

 247 

 

 

 4,724 

 

 

 26,956 

 

 

 31,680 

 

 

 -

Home equity(2) 

 

 474 

 

 

 128 

 

 

 39 

 

 

 641 

 

 

 21,084 

 

 

 21,725 

 

 

 -

Consumer

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 199 

 

 

 199 

 

 

 -



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sub-total:

$

 11,765 

 

$

 2,997 

 

$

 2,659 

 

$

 17,421 

 

$

 241,008 

 

$

 258,429 

 

$

 247 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acquired loans with deteriorated credit:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential one-to-four family

$

 -

 

$

 55 

 

$

 115 

 

$

 170 

 

$

 1,232 

 

 

 1,402 

 

$

-

Commercial and multi-family

 

 360 

 

 

 145 

 

 

 9,391 

 

 

 9,896 

 

 

 1,984 

 

 

 11,880 

 

 

 -

  Construction

 

 -

 

 

 820 

 

 

 987 

 

 

 1,807 

 

 

 863 

 

 

 2,670 

 

 

 -

Commercial business(1) 

 

 -

 

 

 -

 

 

 

 

 

 -

 

 

 986 

 

 

 986 

 

 

 -

Home equity(2) 

 

 -

 

 

 

 

 

 

 

 

 -

 

 

 400 

 

 

 400 

 

 

 -

Consumer

 

 -

 

 

 -

 

 

 54 

 

 

 54 

 

 

 -

 

 

 54 

 

 

 -



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sub-total:

$

 360 

 

$

 1,020 

 

$

 10,547 

 

$

 11,927 

 

$

 5,465 

 

$

 17,392 

 

$

 -



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

$

 21,262 

 

$

 6,065 

 

$

 16,781 

 

$

 44,108 

 

$

 2,098,008 

 

$

 2,142,116 

 

$

 1,093 



 

_________

(1) Includes business lines of credit.

(2) Includes home equity lines of credit.



Note 7 - Loans Receivable and Allowance for Loan Losses (Continued)

The following table sets forth the delinquency status of total loans receivable at December 31, 2017:





 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans Receivable



30-59 Days

 

60-90 Days

 

Greater Than

 

Total Past

 

 

 

 

Total Loans

 

>90 Days



Past Due

 

Past Due

 

90 Days

 

Due

 

Current

 

Receivable

 

and Accruing



 

(In Thousands)

Originated loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential one-to-four family

$

 1,358 

 

$

 1,604 

 

$

 2,273 

 

$

 5,235 

 

$

 177,309 

 

$

 182,544 

 

$

-

Commercial and multi-family

 

 20,210 

 

 

 887 

 

 

 -

 

 

 21,097 

 

 

 1,192,293 

 

 

 1,213,390 

 

 

 -

Construction

 

 5,687 

 

 

 -

 

 

 -

 

 

 5,687 

 

 

 44,810 

 

 

 50,497 

 

 

 -

Commercial business(1) 

 

 161 

 

 

 640 

 

 

 103 

 

 

 904 

 

 

 65,871 

 

 

 66,775 

 

 

 -

Home equity(2) 

 

 314 

 

 

 215 

 

 

 44 

 

 

 573 

 

 

 38,152 

 

 

 38,725 

 

 

 -

Consumer

 

 8 

 

 

 -

 

 

 -

 

 

 8 

 

 

 1,175 

 

 

 1,183 

 

 

 -



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sub-total:

$

 27,738 

 

$

 3,346 

 

$

 2,420 

 

$

 33,504 

 

$

 1,519,610 

 

$

 1,553,114 

 

$

 -



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acquired loans initially recorded at fair value:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential one-to-four family

$

 643 

 

$

 379 

 

$

 1,738 

 

$

 2,760 

 

$

 45,048 

 

 

 47,808 

 

$

 315 

Commercial and multi-family

 

 1,539 

 

 

 -

 

 

 850 

 

 

 2,389 

 

 

 44,220 

 

 

 46,609 

 

 

 -

Commercial business(1) 

 

 92 

 

 

 -

 

 

 -

 

 

 92 

 

 

 3,965 

 

 

 4,057 

 

 

 -

Home equity(2) 

 

 240 

 

 

 324 

 

 

 7 

 

 

 571 

 

 

 8,384 

 

 

 8,955 

 

 

 -

Consumer

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 122 

 

 

 122 

 

 

 -



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sub-total:

$

 2,514 

 

$

 703 

 

$

 2,595 

 

$

 5,812 

 

$

 101,739 

 

$

 107,551 

 

$

 315 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acquired loans with deteriorated credit:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential one-to-four family

$

 -

 

$

 -

 

$

 -

 

$

 -

 

$

 1,413 

 

$

 1,413 

 

$

-

Commercial and multi-family

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 731 

 

 

 731 

 

 

 -



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sub-total:

$

 -

 

$

 -

 

$

 -

 

$

 -

 

$

 2,144 

 

$

 2,144 

 

$

 -



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

$

 30,252 

 

$

 4,049 

 

$

 5,015 

 

$

 39,316 

 

$

 1,623,493 

 

$

 1,662,809 

 

$

 315 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



(1) Includes business lines of credit.

(2) Includes home equity lines of credit.





Criticized and Classified Assets.    



Our policies provide for a classification system for problem assets. Under this classification system, problem assets are classified as “substandard,” “doubtful,” or “loss.”



When we classify problem assets, we may establish general allowances for loan losses in an amount deemed prudent by management.  General allowances represent loss allowances which have been established to recognize the inherent risk associated with lending activities, but which, unlike specific allowances, have not been allocated to particular problem assets. A portion of general loss allowances established to cover possible losses related to assets classified as substandard or doubtful may be included in determining our regulatory capital. Specific valuation allowances for loan losses generally do not qualify as regulatory capital. As of June 30, 2018, we had $36,000 in assets classified as losses, all of which $36,000 were classified as impaired, and $33.6 million in assets classified as substandard, all of which $33.6 million were classified as impaired. The loans classified as substandard represent primarily commercial loans secured either by residential real estate, commercial real estate or heavy equipment. The loans that have been classified substandard were classified as such primarily due to payment status, because updated financial information has not been timely provided, or the collateral underlying the loan is in the process of being revalued.



The Company’s internal credit risk grades are based on the definitions currently utilized by the banking regulatory agencies.  The grades assigned and definitions are as follows, and loans graded excellent, above average, good and watch list (risk ratings 1-5) are treated as “pass” for grading purposes. The “criticized” risk rating (6) and the “classified” risk ratings (7-9) are detailed below:



6 – Special Mention- Loans currently performing but with potential weaknesses including adverse trends in borrower’s operations, credit quality, financial strength, or possible collateral deficiency.



7 – Substandard- Loans that are inadequately protected by current sound worth, paying capacity, and collateral support.  Loans on “nonaccrual” status.  The loan needs special and corrective attention.



8 – Doubtful- Weaknesses in credit quality and collateral support make full collection improbable, but pending reasonable factors remain sufficient to defer the loss status.



9 – Loss- Continuance as a bankable asset is not warranted. However, this does not preclude future attempts at partial recovery.







Note 7 - Loans Receivable and Allowance for Loan Losses (Continued)

The following table presents the loan portfolio types summarized by the aggregate pass rating and the classified ratings of special mention, substandard, doubtful, and loss within the Company’s internal risk rating system as of June 30, 2018. (In Thousands):





 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



Pass

 

Special Mention

 

Substandard

 

Doubtful

 

Loss

 

Total



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Originated loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential one-to-four family

$

 198,623 

 

$

 2,919 

 

$

 2,119 

 

$

 -

 

$

 -

 

$

 203,661 

Commercial and multi-family

 

 1,438,487 

 

 

 3,838 

 

 

 10,582 

 

 

 -

 

 

 -

 

 

 1,452,907 

Construction

 

 51,599 

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 51,599 

Commercial business(1) 

 

 101,090 

 

 

 1,786 

 

 

 2,189 

 

 

 -

 

 

 36 

 

 

 105,101 

Home equity(2) 

 

 51,533 

 

 

 399 

 

 

 450 

 

 

 -

 

 

 -

 

 

 52,382 

Consumer

 

 593 

 

 

 10 

 

 

 42 

 

 

 -

 

 

 -

 

 

 645 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sub-total:

$

 1,841,925 

 

$

 8,952 

 

$

 15,382 

 

$

 -

 

$

 36 

 

$

 1,866,295 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acquired loans initially recorded at fair value:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential one-to-four family

$

 41,818 

 

$

 474 

 

$

 2,641 

 

$

 -

 

$

 -

 

 

 44,933 

Commercial and multi-family

 

 155,672 

 

 

 393 

 

 

 2,029 

 

 

 -

 

 

 -

 

 

 158,094 

Construction

 

 1,749 

 

 

 49 

 

 

 -

 

 

 -

 

 

 -

 

 

 1,798 

Commercial business(1) 

 

 31,627 

 

 

 53 

 

 

 -

 

 

 -

 

 

 -

 

 

 31,680 

Home equity(2) 

 

 21,638 

 

 

 19 

 

 

 68 

 

 

 -

 

 

 -

 

 

 21,725 

Consumer

 

 199 

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 199 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sub-total:

$

 252,703 

 

$

 988 

 

$

 4,738 

 

$

 -

 

$

 -

 

$

 258,429 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acquired loans with deteriorated credit:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential one-to-four family

$

 159 

 

$

 567 

 

$

 676 

 

$

 -

 

$

 -

 

 

 1,402 

Commercial and multi-family

 

 760 

 

 

 507 

 

 

 10,613 

 

 

 -

 

 

 -

 

 

 11,880 

Construction

 

 863 

 

 

 -

 

 

 1,807 

 

 

 -

 

 

 -

 

 

 2,670 

Commercial business(1) 

 

 633 

 

 

 -

 

 

 353 

 

 

 -

 

 

 -

 

 

 986 

Home equity(2) 

 

 400 

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 400 

Consumer

 

 54 

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 54 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sub-total:

$

 2,869 

 

$

 1,074 

 

$

 13,449 

 

$

 -

 

$

 -

 

$

 17,392 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Gross Loans

$

 2,097,497 

 

$

 11,014 

 

$

 33,569 

 

$

 -

 

$

 36 

 

$

 2,142,116 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



_________

(1) Includes business lines of credit.

(2) Includes home equity lines of credit.

Note 7 - Loans Receivable and Allowance for Loan Losses (Continued)

The following table presents the loan portfolio types summarized by the aggregate pass rating and the classified ratings of special mention, substandard, doubtful, and loss within the Company’s internal risk rating system as of December 31, 2017. (In Thousands):





 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



Pass

 

Special Mention

 

Substandard

 

Doubtful

 

Loss

 

Total



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Originated loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential one-to-four family

$

 174,985 

 

$

 5,014 

 

$

 2,545 

 

$

 -

 

$

 -

 

$

 182,544 

Commercial and multi-family

 

 1,199,786 

 

 

 2,676 

 

 

 10,928 

 

 

 -

 

 

 -

 

 

 1,213,390 

Construction

 

 50,262 

 

 

 235 

 

 

 -

 

 

 -

 

 

 -

 

 

 50,497 

Commercial business(1) 

 

 63,323 

 

 

 1,672 

 

 

 1,738 

 

 

 -

 

 

 42 

 

 

 66,775 

Home equity(2) 

 

 38,018 

 

 

 451 

 

 

 256 

 

 

 -

 

 

 -

 

 

 38,725 

Consumer

 

 1,177 

 

 

 6 

 

 

 -

 

 

 -

 

 

 -

 

 

 1,183 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sub-total:

$

 1,527,551 

 

$

 10,054 

 

$

 15,467 

 

$

 -

 

$

 42 

 

$

 1,553,114 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acquired loans initially recorded at fair value:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential one-to-four family

$

 44,472 

 

$

 481 

 

$

 2,855 

 

$

 -

 

$

 -

 

 

 47,808 

Commercial and multi-family

 

 43,569 

 

 

 402 

 

 

 2,638 

 

 

 -

 

 

 -

 

 

 46,609 

Commercial business(1) 

 

 4,057 

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 4,057 

Home equity(2) 

 

 8,896 

 

 

 20 

 

 

 32 

 

 

 -

 

 

 7 

 

 

 8,955 

Consumer

 

 122 

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 122 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sub-total:

$

 101,116 

 

$

 903 

 

$

 5,525 

 

$

 -

 

$

 7 

 

$

 107,551 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acquired loans with deteriorated credit:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential one-to-four family

$

 153 

 

$

 571 

 

$

 689 

 

$

 -

 

$

 -

 

 

 1,413 

Commercial and multi-family

 

 218 

 

 

 513 

 

 

 -

 

 

 -

 

 

 -

 

 

 731 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sub-total:

$

 371 

 

$

 1,084 

 

$

 689 

 

$

 -

 

$

 -

 

$

 2,144 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Gross Loans

$

 1,629,038 

 

$

 12,041 

 

$

 21,681 

 

$

 -

 

$

 49 

 

$

 1,662,809 





________

(1) Includes business lines of credit.

(2) Includes home equity lines of credit.

Note 7 - Loans Receivable and Allowance for Loan Losses (Continued)

The following table presents the unpaid principal balance and the related recorded investment of acquired loans included in our Consolidated Statements of Financial Condition. (In Thousands):









 

 

 

 

 



 

 

 

 

 



June 30,

 

December 31,



2018

 

2017



 

 

 

 

 

Unpaid principal balance

$

331,490 

 

$

114,542 

Recorded investment

 

275,821 

 

 

109,695 









The following table presents changes in the accretable discount on loans acquired with deteriorated credit quality for which the Company applies the provisions of ASC 310-30 (In Thousands):







 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 



Three Months Ended June 30,

 

Six Months Ended June 30,



2018

 

2017

 

2018

 

2017



 

 

 

 

 

 

 

 

 

 

 

Balance, Beginning of Period

$

 2,146 

 

$

 2,478 

 

$

 2,230 

 

$

 2,558 

     Additions from acquisition of IAB

 

 1,399 

 

 

 -

 

 

 1,399 

 

 

 -

     Accretion recorded to interest income

 

 (292)

 

 

 (80)

 

 

 (376)

 

 

 (160)

Balance, End of Period

$

 3,253 

 

$

 2,398 

 

$

 3,253 

 

$

 2,398 







There were no transfers from non-accretable differences for the periods stated above.