LOANS RECEIVABLE

9 Months Ended

Dec. 31, 2017

7.	LOANS RECEIVABLE

Loans receivable as of December 31, 2017 and March 31, 2017 are reported net of deferred loan fees totaling $3.4 million and $3.2 million, respectively. Loans receivable are also reported net of discounts totaling $641,000 and $2.0 million at December 31, 2017 and March 31, 2017, respectively. Loans receivable, excluding loans held for sale, consisted of the following at the dates indicated (in thousands):

	December 31, 2017		March 31, 2017
Commercial and construction
Commercial business	$	130,960	$	107,371
Commercial real estate		441,903		447,071
Land		12,469		15,875
Multi-family		61,851		43,715
Real estate construction		40,743		46,157
Total commercial and construction		687,926		660,189

Consumer
Real estate one-to-four family		91,752		92,865
Other installment ⁽¹⁾		17,649		26,378
Total consumer		109,401		119,243

Total loans		797,327		779,432

Less: Allowance for loan losses		10,867		10,528
Loans receivable, net	$	786,460	$	768,904

⁽¹⁾ Consists primarily of purchased automobile loans totaling $15.2 million and $23.6 million at December 31, 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 December 31, 2017, loans carried at $504.2 million were pledged as collateral to the 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, 2017 and March 31, 2017, the Bank had no loans to any one borrower in excess of the regulatory limit.