LOANS RECEIVABLE

3 Months Ended

Jun. 30, 2019

6. LOANS RECEIVABLE

Loans receivable as of June 30, 2019 and March 31, 2019 are reported net of deferred loan fees totaling $4.1 million and $4.0 million, respectively. Loans receivable are also reported net of discounts and premiums totaling $1.4 million and $1.8 million, respectively, as of June 30, 2019, compared to $1.5 million and $1.8 million, respectively, as of March 31, 2019. Loans receivable, excluding loans held for sale, consisted of the following at the dates indicated (in thousands):

		June 30, 2019		March 31, 2019
Commercial and construction
Commercial business	$	164,400	$	162,796
Commercial real estate		472,373		461,432
Land		16,362		17,027
Multi-family		50,674		51,570
Real estate construction		93,716		90,882
Total commercial and construction		797,525		783,707

Consumer
Real estate one-to-four family		83,256		84,053
Other installment ⁽¹⁾		7,196		8,356
Total consumer		90,452		92,409

Total loans		887,977		876,116

Less: Allowance for loan losses		11,442		11,457
Loans receivable, net	$	876,535	$	864,659

⁽¹⁾ Consists primarily of purchased automobile loans totaling $4.5 million and $5.8 million at June 30, 2019 and March 31, 2019, 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, 2019, loans carried at $494.1 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, 2019 and March 31, 2019, the Bank had no loans to any one borrower in excess of the regulatory limit.