LOANS RECEIVABLE

3 Months Ended

Jun. 30, 2017

7.	LOANS RECEIVABLE

Loans receivable as of June 30, 2017 and March 31, 2017 are reported net of deferred loan fees totaling $3.3 million and $3.2 million, respectively. Loans receivable are also reported net of discounts totaling $1.5 million and $2.0 million at June 30, 2017 and March 31, 2017, respectively. Loans receivable, excluding loans held for sale, consisted of the following at the dates indicated (in thousands):

	June 30, 2017		March 31, 2017
Commercial and construction
Commercial business	$	125,732	$	107,371
Commercial real estate		451,831		447,071
Land		15,340		15,875
Multi-family		46,189		43,715
Real estate construction		43,186		46,157
Total commercial and construction		682,278		660,189

Consumer
Real estate one-to-four family		91,898		92,865
Other installment ⁽¹⁾		23,334		26,378
Total consumer		115,232		119,243

Total loans		797,510		779,432

Less: Allowance for loan losses		10,597		10,528
Loans receivable, net	$	786,913	$	768,904

⁽¹⁾ Consists primarily of purchased automobile loans totaling $20.5 million and $23.6 million at June 30, 2017 and March 31, 2017, 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 June 30, 2017, loans carried at $447.0 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 June 30, 2017 and March 31, 2017, the Bank had no loans to any one borrower in excess of the regulatory limit.