LOANS RECEIVABLE

3 Months Ended

Jun. 30, 2022

6. LOANS RECEIVABLE

Loans receivable are reported net of deferred loan fees and discounts, and inclusive of premiums. At June 30, 2022, deferred loan fees totaled $4.6 million. At June 30, 2022, deferred loan fees related to the SBA Paycheck Protection Program (“PPP”) loans were minimal. At March 31, 2022, deferred loan fees totaled $4.5 million of which $99,000 were related to the SBA PPP loans. Loans receivable discounts and premiums totaled $1.6 million and $2.4 million, respectively, as of June 30, 2022, compared to $371,000 and $2.4 million, respectively, as of March 31, 2022. Loans receivable, excluding loans held for sale, consisted of the following at the dates indicated (in thousands):


	June 30,		March 31,
	2022		2022
Commercial and construction
Commercial business ⁽¹⁾	$	227,023	$	228,091
Commercial real estate		578,557		582,837
Land		9,863		11,556
Multi-family		58,943		60,211
Real estate construction		30,754		24,160
Total commercial and construction		905,140		906,855

Consumer
Real estate one-to-four family		105,775		82,006
Other installment		1,550		1,547
Total consumer		107,325		83,553

Total loans		1,012,465		990,408

Less: Allowance for loan losses		14,559		14,523
Loans receivable, net	$	997,906	$	975,885

(1)SBA PPP loans totaled $11,000 and $3.1 million at June 30, 2022 and March 31, 2022, 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, 2022, loans carried at $558.0 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.

Substantially all 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, 2022 and March 31, 2022, the Bank had no loans to any one borrower in excess of the regulatory limit.