Loans | Loans The Company’s loans, net of unearned income, consisted of the following as of December 31 of the years indicated. (dollars in thousands) 2020 2019 Real estate loans: One- to four-family first mortgage $ 395,638 $ 430,820 Home equity loans and lines 67,700 79,812 Commercial real estate 750,623 722,807 Construction and land 221,823 195,748 Multi-family residential 87,332 54,869 Total real estate loans 1,523,116 1,484,056 Other loans: Commercial and industrial 417,926 184,701 Consumer 38,912 45,604 Total other loans 456,838 230,305 Total loans $ 1,979,954 $ 1,714,361 The net discount on the Company’s acquired loans was $6,650,000 and $12,315,000 at December 31, 2020, and 2019, respectively. In addition, loan balances as of December 31, 2020 and 2019 are reported net of unearned income of $8,727,000 and $3,114,000, respectively. Unearned income at December 31, 2020 included $5,449,000 of deferred lender fees related to PPP loans. The total recorded investment in PPP loans was $221,220,000 at December 31, 2020, which is included in commercial and industrial loans. Accrued interest receivable on the Company's loans was $8,635,000 and $6,575,000 at December 31, 2020 and 2019, respectively, and is excluded from the estimate of the ACL. These amounts are recorded in accrued interest receivable and other assets on the Consolidated Statements of Financial Condition. A summary of activity in the ACL and ALL for the years ended December 31, 2020, 2019 and 2018 follows. For the Year Ended December 31, 2020 (dollars in thousands) Beginning Balance ASC 326 Adoption Impact (1) Charge-offs Recoveries Provision Ending Balance Allowance for credit losses: One- to four-family first mortgage $ 2,715 $ 986 $ (99) $ 13 $ (550) $ 3,065 Home equity loans and lines 1,084 (1) (575) 16 152 676 Commercial real estate 6,541 1,974 (5) 55 10,286 18,851 Construction and land 2,670 519 (688) — 1,654 4,155 Multi-family residential 572 (245) — — 750 1,077 Commercial and industrial 3,694 1,243 (984) 106 217 4,276 Consumer 592 157 (250) 145 219 863 Total allowance for loan losses $ 17,868 $ 4,633 $ (2,601) $ 335 $ 12,728 $ 32,963 Unfunded lending commitments — 1,425 — — — 1,425 Total allowance for credit losses $ 17,868 $ 6,058 $ (2,601) $ 335 $ 12,728 $ 34,388 (1) On January 1, 2020, the Company adopted ASC 326, Financial Instruments - Credit Losses , which introduced a new model know as CECL. Refer to Note 2 for more information on the adoption of ASC 326. For the Year Ended December 31, 2019 (dollars in thousands) Beginning Balance Charge-offs Recoveries Provision Ending Balance Allowance for loan losses: One- to four-family first mortgage $ 2,136 $ (4) $ — $ 583 $ 2,715 Home equity loans and lines 1,079 (42) 16 31 1,084 Commercial real estate 6,125 (360) — 776 6,541 Construction and land 2,285 (6) — 391 2,670 Multi-family residential 550 — — 22 572 Commercial and industrial 3,228 (893) 25 1,334 3,694 Consumer 945 (272) 42 (123) 592 Total allowance for loan losses $ 16,348 $ (1,577) $ 83 $ 3,014 $ 17,868 For the Year Ended December 31, 2018 (dollars in thousands) Beginning Balance Charge-offs Recoveries Provision Ending Balance Allowance for loan losses: One- to four-family first mortgage $ 1,663 $ (1) $ — $ 474 $ 2,136 Home equity loans and lines 1,102 — 5 (28) 1,079 Commercial real estate 4,906 — — 1,219 6,125 Construction and land 1,749 — — 536 2,285 Multi-family residential 355 — — 195 550 Commercial and industrial 4,530 (2,506) 158 1,046 3,228 Consumer 502 (74) 16 501 945 Total allowance for loan losses $ 14,807 $ (2,581) $ 179 $ 3,943 $ 16,348 The ACL, which includes the ALL and the ACL on unfunded lending commitments, and recorded investment in loans as of the dates indicated are as follows. As of December 31, 2020 (dollars in thousands) Collectively Evaluated Individually Evaluated Total Allowance for credit losses: One- to four-family first mortgage $ 2,965 $ 100 $ 3,065 Home equity loans and lines 676 — 676 Commercial real estate 17,843 1,008 18,851 Construction and land 4,155 — 4,155 Multi-family residential 1,077 — 1,077 Commercial and industrial 3,845 431 4,276 Consumer 863 — 863 Total allowance for loan losses $ 31,424 $ 1,539 $ 32,963 Unfunded lending commitments (1) $ 1,425 $ — $ 1,425 Total allowance for credit losses $ 32,849 $ 1,539 $ 34,388 As of December 31, 2020 (dollars in thousands) Collectively Evaluated Individually Evaluated (2) Total Loans: One- to four-family first mortgage $ 394,632 $ 1,006 $ 395,638 Home equity loans and lines 67,700 — 67,700 Commercial real estate 743,223 7,400 750,623 Construction and land 221,823 — 221,823 Multi-family residential 87,332 — 87,332 Commercial and industrial 417,320 606 417,926 Consumer 38,912 — 38,912 Total loans $ 1,970,942 $ 9,012 $ 1,979,954 As of December 31, 2019 (dollars in thousands) Collectively Evaluated for Impairment Individually Evaluated for Impairment Acquired with Deteriorated Credit Quality Total Allowance for loan losses: One- to four-family first mortgage $ 2,715 $ — $ — $ 2,715 Home equity loans and lines 736 348 — 1,084 Commercial real estate 6,243 298 — 6,541 Construction and land 2,670 — — 2,670 Multi-family residential 572 — — 572 Commercial and industrial 2,969 701 24 3,694 Consumer 592 — 592 Total allowance for loan losses $ 16,497 $ 1,347 $ 24 $ 17,868 As of December 31, 2019 (dollars in thousands) Collectively Evaluated for Impairment Individually Evaluated for Impairment Acquired with Deteriorated Credit Quality (3) Total Loans: One- to four-family first mortgage $ 429,745 $ 187 $ 888 $ 430,820 Home equity loans and lines 78,446 784 582 79,812 Commercial real estate 711,282 6,518 5,007 722,807 Construction and land 195,374 — 374 195,748 Multi-family residential 54,690 — 179 54,869 Commercial and industrial 183,141 1,223 337 184,701 Consumer 45,573 — 31 45,604 Total loans $ 1,698,251 $ 8,712 $ 7,398 $ 1,714,361 (1) At December 31, 2020, $1.4 million of the ACL related to unfunded lending commitments of $336.9 million. The ACL on unfunded lending commitments is recorded within accrued interest payable and other liabilities on the Consolidated Statements of Financial Condition. (2) At December 31, 2020, loans individually evaluated for impairment included $277,000 of loans acquired with deteriorated credit quality. (3) At December 31, 2019, loans acquired with deteriorated credit quality were deemed to be PCI and were accounted for under ASC 310-30. Although the Company has a diversified loan portfolio, a substantial portion of the loan portfolio is collateralized by improved and unimproved real estate and is dependent, in part, on values in the real estate market. The following table presents the Company’s loan portfolio by credit quality classification and origination year as of December 31, 2020. Term Loans by Origination Year (dollars in thousands) 2020 2019 2018 2017 2016 Prior Revolving Loans Revolving Loans Converted to Term Loans Total One- to four-family first mortgage: Pass $ 58,958 $ 65,070 $ 46,412 $ 48,851 $ 37,039 $ 114,588 $ 17,762 $ 1,457 $ 390,137 Special Mention — — 167 16 — 1,057 — — 1,240 Substandard 129 34 — 335 1,069 2,694 — — 4,261 Doubtful — — — — — — — — — Total one- to four-family first mortgages $ 59,087 $ 65,104 $ 46,579 $ 49,202 $ 38,108 $ 118,339 $ 17,762 $ 1,457 $ 395,638 Home equity loans and lines: Pass $ 1,172 $ 1,307 $ 2,028 $ 964 $ 1,889 $ 5,537 $ 53,309 $ 1,389 $ 67,595 Special Mention — — — 43 — — — — 43 Substandard — — — — — 58 4 — 62 Doubtful — — — — — — — — — Total home equity loans and lines $ 1,172 $ 1,307 $ 2,028 $ 1,007 $ 1,889 $ 5,595 $ 53,313 $ 1,389 $ 67,700 Commercial real estate: Pass $ 235,900 $ 156,646 $ 96,153 $ 102,166 $ 59,859 $ 60,720 $ 22,962 $ 56 $ 734,462 Special Mention — — — 15 951 — — — 966 Substandard 1,606 1,994 1,742 323 1,344 8,164 — 22 15,195 Doubtful — — — — — — — — — Total commercial real estate loans $ 237,506 $ 158,640 $ 97,895 $ 102,504 $ 62,154 $ 68,884 $ 22,962 $ 78 $ 750,623 Construction and land: Pass $ 87,540 $ 91,337 $ 16,703 $ 5,486 $ 2,585 $ 1,505 $ 1,892 $ 429 $ 207,477 Special Mention 877 — — — — 618 — 627 2,122 Substandard 451 50 — — 252 249 — 11,222 12,224 Doubtful — — — — — — — — — Total construction and land loans $ 88,868 $ 91,387 $ 16,703 $ 5,486 $ 2,837 $ 2,372 $ 1,892 $ 12,278 $ 221,823 Term Loans by Origination Year (dollars in thousands) 2020 2019 2018 2017 2016 Prior Revolving Loans Revolving Loans Converted to Term Loans Total Multi-family residential: Pass $ 40,462 $ 24,329 $ 9,711 $ 3,844 $ 2,889 $ 4,539 $ 1,452 $ — $ 87,226 Special Mention — — — — — — — — — Substandard — — — — — 106 — — 106 Doubtful — — — — — — — — — Total multi-family residential loans $ 40,462 $ 24,329 $ 9,711 $ 3,844 $ 2,889 $ 4,645 $ 1,452 $ — $ 87,332 Commercial and industrial: Pass $ 264,079 $ 29,115 $ 21,053 $ 6,001 $ 3,952 $ 2,408 $ 82,039 $ 1,311 $ 409,958 Special Mention 2,089 792 131 — — 1 1,801 — 4,814 Substandard 592 — 427 23 141 16 1,955 — 3,154 Doubtful — — — — — — — — — Total commercial and industrial loans $ 266,760 $ 29,907 $ 21,611 $ 6,024 $ 4,093 $ 2,425 $ 85,795 $ 1,311 $ 417,926 Consumer: Pass $ 6,844 $ 2,667 $ 1,149 $ 2,073 $ 1,118 $ 18,258 $ 6,340 $ 27 $ 38,476 Special Mention 4 — 4 — 13 120 — 5 146 Substandard — 34 3 12 17 223 — 1 290 Doubtful — — — — — — — — — Total consumer loans $ 6,848 $ 2,701 $ 1,156 $ 2,085 $ 1,148 $ 18,601 $ 6,340 $ 33 $ 38,912 Total loans: Pass $ 694,955 $ 370,471 $ 193,209 $ 169,385 $ 109,331 $ 207,555 $ 185,756 $ 4,669 $ 1,935,331 Special Mention 2,970 792 302 74 964 1,796 1,801 632 9,331 Substandard 2,778 2,112 2,172 693 2,823 11,510 1,959 11,245 35,292 Doubtful — — — — — — — — — Total loans $ 700,703 $ 373,375 $ 195,683 $ 170,152 $ 113,118 $ 220,861 $ 189,516 $ 16,546 $ 1,979,954 The following table presents the Company's loan portfolio by credit quality classification as of December 31, 2019. December 31, 2019 (dollars in thousands) Pass Special Substandard Doubtful Total Originated loans: One- to four-family first mortgage $ 248,483 $ 730 $ 2,133 $ — $ 251,346 Home equity loans and lines 56,029 53 882 — 56,964 Commercial real estate 517,615 207 11,317 — 529,139 Construction and land 164,310 8,107 1,270 — 173,687 Multi-family residential 48,661 — — — 48,661 Commercial and industrial 153,286 — 2,438 — 155,724 Consumer 35,545 46 89 — 35,680 Total originated loans $ 1,223,929 $ 9,143 $ 18,129 $ — $ 1,251,201 Acquired loans: One- to four-family first mortgage $ 173,482 $ 1,429 $ 4,563 $ — $ 179,474 Home equity loans and lines 22,370 128 350 — 22,848 Commercial real estate 181,090 1,593 10,985 — 193,668 Construction and land 19,877 747 1,437 — 22,061 Multi-family residential 5,487 502 219 — 6,208 Commercial and industrial 24,856 56 4,065 — 28,977 Consumer 9,668 166 90 — 9,924 Total acquired loans $ 436,830 $ 4,621 $ 21,709 $ — $ 463,160 Total loans: One- to four-family first mortgage $ 421,965 $ 2,159 $ 6,696 $ — $ 430,820 Home equity loans and lines 78,399 181 1,232 — 79,812 Commercial real estate 698,705 1,800 22,302 — 722,807 Construction and land 184,187 8,854 2,707 — 195,748 Multi-family residential 54,148 502 219 — 54,869 Commercial and industrial 178,142 56 6,503 — 184,701 Consumer 45,213 212 179 — 45,604 Total loans $ 1,660,759 $ 13,764 $ 39,838 $ — $ 1,714,361 The preceding classifications follow regulatory guidelines and can generally be described as follows: • Pass loans are of satisfactory quality. • Special mention loans have an existing weakness that could cause future impairment, including the deterioration of financial ratios, past due status, questionable management capabilities and possible reduction in the collateral values. • Substandard loans have an existing specific and well defined weakness that may include poor liquidity and deterioration of financial ratios. The loan may be past due and related deposit accounts experiencing overdrafts. Immediate corrective action is necessary. • Doubtful loans have specific weaknesses that are severe enough to make collection or liquidation in full highly questionable and improbable. In addition, residential loans are classified using an inter-regulatory agency methodology that incorporates, among other factors, the extent of delinquencies and loan-to-value ratios. These classifications were the most current available as of December 31, 2020 and 2019, respectively, and were generally updated within the prior three months. Age analysis of past due loans, as of the dates indicated, is as follows. December 31, 2020 (dollars in thousands) 30-59 Days Past Due 60-89 Days Past Due Greater Than 90 Days Past Due Total Past Due Current Loans Total Loans Originated loans: Real estate loans: One- to four-family first mortgage $ 1,651 $ 66 $ 365 $ 2,082 $ 258,386 $ 260,468 Home equity loans and lines 117 148 — 265 52,101 52,366 Commercial real estate 518 532 6,770 7,820 581,524 589,344 Construction and land — — — — 207,928 207,928 Multi-family residential 94 — — 94 82,051 82,145 Total real estate loans 2,380 746 7,135 10,261 1,181,990 1,192,251 Other loans: Commercial and industrial 797 3 603 1,403 398,377 399,780 Consumer 219 42 145 406 32,702 33,108 Total other loans 1,016 45 748 1,809 431,079 432,888 Total originated loans $ 3,396 $ 791 $ 7,883 $ 12,070 $ 1,613,069 $ 1,625,139 Acquired loans: Real estate loans: One- to four-family first mortgage $ 1,823 $ 502 $ 1,154 $ 3,479 $ 131,691 $ 135,170 Home equity loans and lines 34 43 25 102 15,232 15,334 Commercial real estate 603 303 2,462 3,368 157,911 161,279 Construction and land — — 142 142 13,753 13,895 Multi-family residential 92 — — 92 5,095 5,187 Total real estate loans 2,552 848 3,783 7,183 323,682 330,865 Other loans: Commercial and industrial 3 — 907 910 17,236 18,146 Consumer 126 50 66 242 5,562 5,804 Total other loans 129 50 973 1,152 22,798 23,950 Total acquired loans $ 2,681 $ 898 $ 4,756 $ 8,335 $ 346,480 $ 354,815 Total loans: Real estate loans: One- to four-family first mortgage $ 3,474 $ 568 $ 1,519 $ 5,561 $ 390,077 $ 395,638 Home equity loans and lines 151 191 25 367 67,333 67,700 Commercial real estate 1,121 835 9,232 11,188 739,435 750,623 Construction and land — — 142 142 221,681 221,823 Multi-family residential 186 — — 186 87,146 87,332 Total real estate loans 4,932 1,594 10,918 17,444 1,505,672 1,523,116 Other loans: Commercial and industrial 800 3 1,510 2,313 415,613 417,926 Consumer 345 92 211 648 38,264 38,912 Total other loans 1,145 95 1,721 2,961 453,877 456,838 Total loans $ 6,077 $ 1,689 $ 12,639 $ 20,405 $ 1,959,549 $ 1,979,954 December 31, 2019 (dollars in thousands) 30-59 Days Past Due 60-89 Days Past Due Greater Than 90 Days Past Due Total Past Due Current Loans Total Loans Originated loans: Real estate loans: One- to four-family first mortgage $ 1,524 $ 173 $ 967 $ 2,664 $ 248,682 $ 251,346 Home equity loans and lines 174 — 98 272 56,692 56,964 Commercial real estate 1,124 1,448 8,056 10,628 518,511 529,139 Construction and land — — 1,171 1,171 172,516 173,687 Multi-family residential — — — — 48,661 48,661 Total real estate loans 2,822 1,621 10,292 14,735 1,045,062 1,059,797 Other loans: Commercial and industrial 213 100 869 1,182 154,542 155,724 Consumer 533 57 34 624 35,056 35,680 Total other loans 746 157 903 1,806 189,598 191,404 Total originated loans $ 3,568 $ 1,778 $ 11,195 $ 16,541 $ 1,234,660 $ 1,251,201 Acquired loans: Real estate loans: One- to four-family first mortgage $ 4,555 $ 1,116 $ 1,108 $ 6,779 $ 172,695 $ 179,474 Home equity loans and lines 267 93 330 690 22,158 22,848 Commercial real estate 337 466 1,945 2,748 190,920 193,668 Construction and land 413 — 1,170 1,583 20,478 22,061 Multi-family residential — — — — 6,208 6,208 Total real estate loans 5,572 1,675 4,553 11,800 412,459 424,259 Other loans: Commercial and industrial 3 57 792 852 28,125 28,977 Consumer 259 127 60 446 9,478 9,924 Total other loans 262 184 852 1,298 37,603 38,901 Total acquired loans $ 5,834 $ 1,859 $ 5,405 $ 13,098 $ 450,062 $ 463,160 Total loans: Real estate loans: One- to four-family first mortgage $ 6,079 $ 1,289 $ 2,075 $ 9,443 $ 421,377 $ 430,820 Home equity loans and lines 441 93 428 962 78,850 79,812 Commercial real estate 1,461 1,914 10,001 13,376 709,431 722,807 Construction and land 413 — 2,341 2,754 192,994 195,748 Multi-family residential — — — — 54,869 54,869 Total real estate loans 8,394 3,296 14,845 26,535 1,457,521 1,484,056 Other loans: Commercial and industrial 216 157 1,661 2,034 182,667 184,701 Consumer 792 184 94 1,070 44,534 45,604 Total other loans 1,008 341 1,755 3,104 227,201 230,305 Total loans $ 9,402 $ 3,637 $ 16,600 $ 29,639 $ 1,684,722 $ 1,714,361 At December 31, 2020, $2,000 of loans were greater than 90 days past due and accruing interest. At December 31, 2019, excluding PCI loans, the Company did not have any loans greater than 90 days past due and accruing. The Company reviews its significant nonaccrual loans (i.e., loans with balances of $250,000 or greater) for specific impairment in accordance with its allowance for credit loss methodology. If it is determined that it is probable that all amounts due will not be collected when other credit quality indicators are considered, the loan is considered impaired and the Company individually evaluates these loans to the determine expected credit losses. The following table summarizes information pertaining to nonaccrual loans as of dates indicated. December 31, 2020 December 31, 2019 (dollars in thousands) With Related Allowance Without Related Allowance Total (1) Total (2) Nonaccrual loans: One- to four-family first mortgage $ 3,838 $ — $ 3,838 $ 3,948 Home equity loans and lines 63 — 63 1,244 Commercial real estate 12,298 — 12,298 13,325 Construction and land 469 — 469 2,469 Multi-family residential — — — — Commercial and industrial 1,717 — 1,717 3,224 Consumer 292 — 292 176 Total $ 18,677 $ — $ 18,677 $ 24,386 (1) Due to the adoption of ASC 326, PCD loans of $390,000 are included in nonaccrual loans at December 31, 2020. Prior to January 1, 2020, these loans were classified as PCI and excluded from nonperforming loans because they continued to earn interest income from the accretable yield at the pool level. At adoption, the pools were discontinued and performance is based on contractual terms for individual loans. (2) PCI loans which were being accounted for under ASC 310-30 were excluded from nonaccrual loans because they continued to earn interest from accretable yield regardless of their status as past due or otherwise not in compliance with their contractual terms. PCI loans which were being accounted for under ASC 310-30 and which were 90 days or more past due totaled $2.2 million as of December 31, 2019. All interest accrued but not received for loans placed on nonaccrual status is reversed against interest income. All payments received while on nonaccrual status are applied against the principal balance of nonaccrual loans. The Company does not recognize interest income while loans are on nonaccrual status. As of December 31, 2020, the Company was not committed to lend additional funds to any customer whose loan was individually evaluated for impairment. Collateral Dependent Loans The Company held loans that were individually evaluated for impairment at December 31, 2020 for which the repayment, on the basis of our assessment at the reporting date, is expected to be provided substantially through the operation or sale of the collateral and the borrower is experiencing financial difficulty. The ACL for these collateral-dependent loans is primarily based on the fair value of the underlying collateral at the reporting date. The following describes the types of collateral that secure collateral dependent loans: • One- to four-family first mortgages are primarily secured by first liens on residential real estate. • Home equity loans and lines are primarily secured by first and junior liens on residential real estate. • Commercial real estate loans are primarily secured by office and industrial buildings, warehouses, retail shopping facilities and various special purpose properties, including hotels and restaurants. • Construction and land loans are primarily secured by residential and commercial properties, which are under construction and/or redevelopment, and by raw land. • Commercial and industrial loans considered collateral dependent are primarily secured by accounts receivable, inventory and equipment. The table below summarizes collateral dependent loans and the related ACL at December 31, 2020 for which the borrower is experiencing financial difficulty. (dollars in thousands) Loans ACL One- to four-family first mortgage $ 1,006 $ 100 Home equity loans and lines — — Commercial real estate 7,400 1,008 Construction and land — — Multi-family residential — — Commercial and industrial 606 431 Consumer — — Total $ 9,012 $ 1,539 At December 31, 2020, collateral dependent commercial real estate loans included one loan acquired with deteriorated credit quality totaling $277,000. Prior to the adoption of ASC 326 on January 1, 2020, the Company accounted for impaired loans under ASC 310. The following provides a summary of information for the Company's impaired loans at and for the years ended December 31, 2019 and 2018. For the Year Ended December 31, 2019 (dollars in thousands) Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized With no related allowance recorded: One- to four-family first mortgage $ 187 $ 187 $ — $ 109 $ — Home equity loans and lines 404 450 — 418 — Commercial real estate 19 21 — 41 — Construction and land — — — — — Multi-family residential — — — — — Commercial and industrial 291 329 — 1,063 — Consumer — — — — — Total $ 901 $ 987 $ — $ 1,631 $ — With an allowance recorded: One- to four-family first mortgage $ — $ — $ — $ — $ — Home equity loans and lines 380 425 348 400 — Commercial real estate 6,499 6,587 298 6,639 15 Construction and land — — — — — Multi-family residential — — — — — Commercial and industrial 932 1,214 701 566 — Consumer — — — — — Total $ 7,811 $ 8,226 $ 1,347 $ 7,605 $ 15 Total impaired loans: One- to four-family first mortgage $ 187 $ 187 $ — $ 109 $ — Home equity loans and lines 784 875 348 818 — Commercial real estate 6,518 6,608 298 6,680 15 Construction and land — — — — — Multi-family residential — — — — — Commercial and industrial 1,223 1,543 701 1,629 — Consumer — — — — — Total $ 8,712 $ 9,213 $ 1,347 $ 9,236 $ 15 For the Year Ended December 31, 2018 (dollars in thousands) Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized With no related allowance recorded: One- to four-family first mortgage $ — $ — $ — $ — $ — Home equity loans and lines 441 476 — 454 — Commercial real estate 149 161 — 32 7 Construction and land — — — — — Multi-family residential — — — — — Commercial and industrial 1,540 1,904 — 438 — Consumer — — — — — Total $ 2,130 $ 2,541 $ — $ 924 $ 7 With an allowance recorded: One- to four-family first mortgage $ — $ — $ — $ — $ — Home equity loans and lines 425 457 349 440 — Commercial real estate 6,910 6,910 484 2,057 38 Construction and land — — — — — Multi-family residential — — — — — Commercial and industrial 412 442 321 1,367 1 Consumer — — — — — Total $ 7,747 $ 7,809 $ 1,154 $ 3,864 $ 39 Total impaired loans: One- to four-family first mortgage $ — $ — $ — $ — $ — Home equity loans and lines 866 933 349 894 — Commercial real estate 7,059 7,071 484 2,089 45 Construction and land — — — — — Multi-family residential — — — — — Commercial and industrial 1,952 2,346 321 1,805 1 Consumer — — — — — Total $ 9,877 $ 10,350 $ 1,154 $ 4,788 $ 46 Foreclosed Assets and ORE Foreclosed assets and ORE include real property and other assets that have been acquired as a result of foreclosure, and real property no longer used in the Bank's business. Foreclosed assets and ORE totaled $1,302,000 and $4,156,000 at December 31, 2020 and December 31, 2019, respectively. These amounts are recorded in accrued interest receivable and other assets on the Consolidated Statements of Financial Condition. The carrying amount of foreclosed residential real estate properties held at December 31, 2020 and December 31, 2019 totaled $877,000 and $1,737,000, respectively. Loans secured by single family residential real estate that were in the process of foreclosure at December 31, 2020 and December 31, 2019 totaled $446,000 and $723,000, respectively. Foreclosed assets and ORE included certain bank buildings that meet the criteria to be classified as assets held for sale. The carrying value of these assets totaled $212,000 and $1,275,000 at December 31, 2020 and December 31, 2019, respectively. During the year ended December 31, 2020, the Company sold six of these properties, with a total carrying value of $1,035,000, for a loss of $126,000 recorded in foreclosed assets and ORE, net expense on the Consolidated Statements of Income. The expected timing of the sale of the remaining properties is uncertain. Troubled Debt Restructurings During the course of its lending operations, the Company periodically grants concessions to its customers in an attempt to protect as much of its investment as possible and to minimize risk of loss. These concessions may include restructuring the terms of a customer loan to alleviate the burden of the customer’s near-term cash requirements. Loans are TDRs when the Company agrees to restructure a loan to a borrower who is experiencing financial difficulties in a manner that is deemed to be a “concession”. The Company defines a concession as a modification of existing terms granted to a borrower for economic or legal reasons related to the borrower’s financial difficulties that the Company would otherwise not consider. The concession either is granted through an agreement with the customer or is imposed by a court or by law. Concessions include modifying original loan terms to reduce or defer cash payments required as part of the loan agreement, including but not limited to: • a reduction of the stated interest rate for the remaining original life of the debt, • an extension of the maturity date or dates at an interest rate lower than the current market rate for new debt with similar risk characteristics, • a reduction of the face amount or maturity amount of the debt or • a reduction of accrued interest receivable on the debt. In its determination of whether the customer is experiencing financial difficulties, the Company considers numerous indicators, including, but not limited to: • whether the customer is currently in default on its existing loan, or is in an economic position where it is probable the customer will be in default on its loan in the foreseeable future without a modification, • whether the customer has declared or is in the process of declaring bankruptcy, • whether there is substantial doubt about the customer’s ability to continue as a going concern, • whether, based on its projections of the customer’s current capabilities, the Company believes the customer’s future cash flows will be insufficient to service the debt, including interest, in accordance with the contractual terms of the existing agreement for the foreseeable future and • whether, without modification, the customer cannot obtain sufficient funds from other sources at an effective interest rate equal to the current market rate for similar debt for a non-troubled debtor. If the Company concludes that both a concession has been granted and the concession was granted to a customer experiencing financial difficulties, the Company identifies the loan as a TDR. For purposes of the determination of an ACL, larger (i.e., TDRs with balances of $250,000 or greater) commercial TDRs are individually evaluated for impairment. The ACL for loans that are individually evaluated is based on a comparison of the recorded investment in the loan with either the expected cash flows discounted using the loan’s original effective interest rate, observable market price for the loan or the fair value of the collateral underlying certain collateral-dependent loans. Residential, consumer and smaller balance commercial TDRs are included in the Company's pooled-loan analysis to calculate the ACL and, generally, do not have a material impact on the overall ACL. As of December 31, 2020, the Company had modified loans with an aggregate outstanding loan balance of $36,047,000, or 2% of total outstanding loans, via payment relief in the nature of principal and/or interest deferrals. These modifications were done in accordance with Section 4013 of the Coronavirus Aid, Relief, and Economic Security ("CARES") Act and the Interagency Statement on Loan Modifications on Reporting for Financial Institutions Working With Customers Affected by the Coronavirus . Accordingly, these loans were not categorized as TDRs. Information about the Company’s TDRs is presented in the following tables. As of December 31, 2020 (dollars in thousands) Current Past Due Greater Than 30 Days Nonaccrual TDRs Total TDRs Originated loans: Real estate loans: One- to four-family first mortgage $ 342 $ 257 $ 1,099 $ 1,698 Home equity loans and lines 48 — 24 72 Commercial real estate 712 — 5,291 6,003 Construction and land 83 — — 83 Multi-family residential — — — — Total real estate loans 1,185 257 6,414 7,856 Other loans: Commercial and industrial — — — — Consumer 70 — 44 114 Total other loans 70 — 44 114 Total loans $ 1,255 $ 257 $ 6,458 $ 7,970 Acquired loans: Real estate loans: One- to four-family first mortgage $ 376 $ — $ 964 $ 1,340 Home equity loans and lines — — 14 14 Commercial real estate 86 — 2,133 2,219 Construction and land — — 185 185 Multi-family residential 102 — — 102 Total real estate loans 564 — 3,296 3,860 Other loans: Commercial and industrial — — 520 520 Consumer 9 — 23 32 Total other loans 9 — 543 552 Total loans $ 573 $ — $ 3,839 $ 4,412 Total loans: Real estate loans: One- to four-family first mortgage $ 718 $ 257 $ 2,063 $ 3,038 Home equity loans and lines 48 — 38 86 Commercial real estate 798 — 7,424 8,222 Construction and land 83 — 185 268 Multi-family residential 102 — — 102 Total real estate loans 1,749 257 9,710 11,716 Other loans: Commercial and industrial — — 520 520 Consumer 79 — 67 146 Total other loans 79 — 587 666 Total loans $ 1,828 $ 257 $ 10,297 $ 12,382 As of December 31, 2019 (dollars in thousands) Current Past Due Nonaccrual Total Originated loans: Real estate loans: One- to four-family first mortgage $ 671 $ 82 $ 1,370 $ 2,123 Home equity loans and lines 235 53 36 324 Commercial real estate 670 — 5,824 6,494 Construction and land 100 — — 100 Multi-family residential — — — — Total real estate loans 1,676 135 7,230 9,041 Other loans: Commercial and industrial — — 303 303 Consumer 92 — 54 146 Total other loans 92 — 357 449 Total loans $ 1,768 $ 135 $ 7,587 $ 9,490 Acquired loans: Real estate loans: One- to four-family first mortgage $ 365 $ — $ 617 $ 982 Home equity loans and lines — — 20 20 Commercial real estate 90 — 194 284 Construction and land — — — — Multi-family residential — — — — Total real estate loans 455 — 831 1,286 Other loans: Commercial and industrial — — 1,362 1,362 Consumer 20 — 25 45 Total other loans 20 — 1,387 1,407 Total loans $ 475 $ — $ 2,218 $ 2,693 Total loans: Real estate loans: One- to four-family first mortgage $ 1,036 $ 82 $ 1,987 $ 3,105 Home equity loans and lines 235 53 56 344 Commercial real estate 760 — 6,018 6,778 Construction and land 100 — — 100 Multi-family residential — — — — Total real estate loans 2,131 135 8,061 10,327 Other loans: Commercial and industrial — — 1,665 1,665 Consumer 112 — 79 191 Total other loans 112 — 1,744 1,856 Total loans $ 2,243 $ 135 $ 9,805 $ 12,183 A summary of information pertaining to loans modified as of the periods indicated is as follows. For the Year Ended December 31 2020 2019 (dollars in thousands) Number of Contracts Pre-modification Outstanding Recorded Investment Post-modification Outstanding Recorded Investment Number of Contracts Pre-modification Outstanding Recorded Investment Post-modification Outstanding Recorded Investment Troubled debt restructurings: One- to four-family first mortgage 11 $ 1,409 $ 778 6 $ 932 $ 919 Home equity loans and lines — — — — — — Commercial real estate 9 3,193 3,100 2 193 192 Construction and land 1 185 185 — — — Multi-family residential — — — — — — Commercial and industrial 5 96 81 18 842 820 Other consumer 2 13 8 6 78 70 Total 28 $ 4,896 $ 4,152 32 $ 2,045 $ 2,001 As of December 31, 2020 and 2019, the Company had no unfunded commitments to borrowers whose loan terms had been modified through troubled debt restructurings. Two commercial real estate loans totaling $282,000, four residential mortgages totaling $582 |