LOANS RECEIVABLE

9 Months Ended

Dec. 31, 2016

6.	LOANS RECEIVABLE

Loans receivable as of December 31, 2016 and March 31, 2016 are reported net of deferred loan fees totaling $3.1 million and $2.7 million, respectively. Loans receivable, excluding loans held for sale, consisted of the following at the dates indicated (in thousands):

	December 31, 2016		March 31, 2016
Commercial and construction
Commercial business	$	64,401	$	69,397
Commercial real estate		397,345		353,749
Land		12,276		12,045
Multi-family		23,161		33,733
Real estate construction		52,707		26,731
Total commercial and construction		549,890		495,655

Consumer
Real estate one-to-four family		85,956		88,780
Other installment ⁽¹⁾		28,496		40,384
Total consumer		114,452		129,164

Total loans		664,342		624,819

Less: Allowance for loan losses		10,289		9,885
Loans receivable, net	$	654,053	$	614,934

⁽¹⁾ Consists primarily of purchased automobile loans totaling $26.4 million and $37.4 million at December 31, 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 December 31, 2016, loans carried at $444.5 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 (loss). As of December 31, 2016 and March 31, 2016, the Bank had no loans to any one borrower in excess of the regulatory limit.