6.	LOANS RECEIVABLE

Loans receivable as of September 30, 2016 and March 31, 2016 are reported net of deferred loan fees totaling $3.0 million and $2.7 million, respectively. Loans receivable, excluding loans held for sale, consisted of the following at the dates indicated (in thousands):

	September 30, 2016		March 31, 2016
Commercial and construction
Commercial business	$	64,176	$	69,397
Commercial real estate		386,175		353,749
Land		10,671		12,045
Multi-family		26,883		33,733
Real estate construction		45,059		26,731
Total commercial and construction		532,964		495,655

Consumer
Real estate one-to-four family		86,321		88,780
Other installment ⁽¹⁾		31,651		40,384
Total consumer		117,972		129,164

Total loans		650,936		624,819

Less: Allowance for loan losses		10,063		9,885
Loans receivable, net	$	640,873	$	614,934
⁽¹⁾ Consists primarily of purchased automobile loans totaling $29.7 million and $37.4 million at September 30, 2016 and March 31, 2016, respectively.

The Company considers its loan portfolio to have very little exposure to sub-prime mortgage loans since the Company has not historically engaged in this type of lending. At September 30, 2016, loans carried at $441.8 million were pledged as collateral to the Federal Home Loan Bank of Des Moines ("FHLB") and Federal Reserve Bank of San Francisco ("FRB") pursuant to borrowing agreements.

Most of the Bank's business activity is with customers located in the states of Washington and Oregon. Loans and extensions of credit outstanding at one time to one borrower are generally limited by federal regulation to 15% of the Bank's shareholders' equity, excluding accumulated other comprehensive income. As of September 30, 2016 and March 31, 2016, the Bank had no loans to any one borrower in excess of the regulatory limit.