Loans Receivable | Loans Receivable Loans receivable consisted of the following at the dates indicated: March 31, 2018 December 31, 2017 (In thousands) Real Estate: One-to-four family $ 347,453 $ 355,391 Multi-family 68,095 73,767 Commercial real estate 220,542 202,956 Construction and land 75,684 71,145 Total real estate loans 711,774 703,259 Consumer: Home equity 38,538 38,473 Other consumer 39,478 28,106 Total consumer loans 78,016 66,579 Commercial business loans 16,163 16,303 Total loans 805,953 786,141 Less: Net deferred loan fees 501 724 Premium on purchased loans, net (2,360 ) (2,454 ) Allowance for loan losses 8,984 8,760 Total loans receivable, net $ 798,828 $ 779,111 Allowance for Loan Losses. The Company maintains a general allowance for loan losses based on evaluating known and inherent risks in the loan portfolio, including management’s continuing analysis of the factors underlying the quality of the loan portfolio. These factors include changes in the size and composition of the loan portfolio, actual loan loss experience, and current and anticipated economic conditions. The reserve is an estimate based upon factors and trends identified by management at the time the financial statements are prepared. The following tables summarize changes in the ALLL and loan portfolio by segment and impairment method for the periods shown: At or For the Three Months Ended March 31, 2018 One-to- four family Multi-family Commercial real estate Construction and land Home equity Other consumer Commercial business Unallocated Total (In thousands) ALLL: Beginning balance $ 3,061 $ 648 $ 1,847 $ 648 $ 787 $ 712 $ 265 $ 792 $ 8,760 Provision for loan losses 105 (1 ) 206 31 (51 ) 331 444 (755 ) 310 Charge-offs — — — — — (123 ) — — (123 ) Recoveries 1 — — — 8 28 — — 37 Ending balance $ 3,167 $ 647 $ 2,053 $ 679 $ 744 $ 948 $ 709 $ 37 $ 8,984 At March 31, 2018 One-to- four family Multi-family Commercial real estate Construction and land Home equity Other consumer Commercial business Unallocated Total (In thousands) Total ALLL $ 3,167 $ 647 $ 2,053 $ 679 $ 744 $ 948 $ 709 $ 37 $ 8,984 General reserve 3,127 646 1,939 678 737 923 123 37 8,210 Specific reserve 40 1 114 1 7 25 586 — 774 Total loans $ 347,453 $ 68,095 $ 220,542 $ 75,684 $ 38,538 $ 39,478 $ 16,163 $ — $ 805,953 General reserves (1) 343,809 67,981 216,324 71,905 37,913 39,377 15,299 — 792,608 Specific reserves (2) 3,644 114 4,218 3,779 625 101 864 — 13,345 (1) Loans collectively evaluated for general reserves. (2) Loans individually evaluated for specific reserves. At or For the Three Months Ended March 31, 2017 One-to- four family Multi-family Commercial real estate Construction and land Home equity Other consumer Commercial business Unallocated Total ALLL: (In thousands) Beginning balance $ 2,892 $ 370 $ 1,488 $ 585 $ 794 $ 361 $ 652 $ 918 $ 8,060 Provision for loan losses 147 128 184 104 (58 ) 106 495 (891 ) 215 Charge-offs — — — — (79 ) (33 ) — — (112 ) Recoveries 25 — — — 125 14 1 — 165 Ending balance $ 3,064 $ 498 $ 1,672 $ 689 $ 782 $ 448 $ 1,148 $ 27 $ 8,328 At December 31, 2017 One-to- four family Multi-family Commercial real estate Construction and land Home equity Other consumer Commercial business Unallocated Total (In thousands) Total ALLL $ 3,061 $ 648 $ 1,847 $ 648 $ 787 $ 712 $ 265 $ 792 $ 8,760 General reserve 3,014 647 1,719 647 779 703 262 792 8,563 Specific reserve 47 1 128 1 8 9 3 — 197 Total loans $ 355,391 $ 73,767 $ 202,956 $ 71,145 $ 38,473 $ 28,106 $ 16,303 $ — $ 786,141 General reserves (1) 351,545 73,652 201,885 71,093 37,838 28,047 16,020 — 780,080 Specific reserves (2) 3,846 115 1,071 52 635 59 283 — 6,061 (1) Loans collectively evaluated for general reserves. (2) Loans individually evaluated for specific reserves. Impaired loans. A loan is considered impaired when First Federal has determined that it may be unable to collect payments of principal or interest when due under the contractual terms of the loan. In the process of identifying loans as impaired, management takes into consideration factors that include payment history and status, collateral value, financial condition of the borrower, and the probability of collecting scheduled payments in the future. Minor payment delays and insignificant payment shortfalls typically do not result in a loan being classified as impaired. The significance of payment delays and shortfalls is considered by management on a case-by-case basis after taking into consideration the totality of circumstances surrounding the loans and the borrowers, including payment history and amounts of any payment shortfall, length and reason for delay, and likelihood of return to stable performance. Impairment is measured on a loan-by-loan basis for all loans in the portfolio except smaller balance homogeneous loans and certain qualifying troubled debt restructuring ("TDR") loans. The following table presents a summary of loans individually evaluated for impairment by portfolio segment at the dates indicated: March 31, 2018 December 31, 2017 Recorded Investment Unpaid Principal Balance Related Allowance Recorded Investment Unpaid Principal Balance Related Allowance (In thousands) With no allowance recorded: One-to-four family $ 465 $ 523 $ — $ 382 $ 407 $ — Commercial real estate 3,426 3,479 — 256 378 — Construction and land 3,729 3,731 — — 3 — Home equity 358 507 — 365 515 — Other consumer — 177 — — 124 — Commercial business — 4 — — 4 — Total 7,978 8,421 — 1,003 1,431 — With an allowance recorded: One-to-four family 3,179 3,399 40 3,464 3,718 47 Multi-family 114 114 1 115 115 1 Commercial real estate 792 800 114 815 821 128 Construction and land 50 75 1 52 76 1 Home equity 267 335 7 270 338 8 Other consumer 101 110 25 59 67 9 Commercial business 864 864 586 283 283 3 Total 5,367 5,697 774 5,058 5,418 197 Total impaired loans: One-to-four family 3,644 3,922 40 3,846 4,125 47 Multi-family 114 114 1 115 115 1 Commercial real estate 4,218 4,279 114 1,071 1,199 128 Construction and land 3,779 3,806 1 52 79 1 Home equity 625 842 7 635 853 8 Other consumer 101 287 25 59 191 9 Commercial business 864 868 586 283 287 3 Total $ 13,345 $ 14,118 $ 774 $ 6,061 $ 6,849 $ 197 The following table presents the average recorded investment in loans individually evaluated for impairment and the related interest income recognized for the periods shown: Three Months Ended Three Months Ended March 31, 2018 March 31, 2017 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized (In thousands) With no allowance recorded: One-to-four family $ 408 $ 8 $ 1,512 $ 27 Commercial real estate 2,389 27 310 1 Construction and land 2,487 68 — — Home equity 361 4 301 6 Other consumer — 5 — 1 Total 5,645 112 2,123 35 With an allowance recorded: One-to-four family 3,381 66 4,022 75 Multi-family 114 1 119 1 Commercial real estate 795 10 1,293 17 Construction and land 51 3 9 — Home equity 286 6 376 7 Other consumer 101 2 30 — Commercial business 675 3 338 4 Total 5,403 91 6,187 104 Total impaired loans: One-to-four family 3,789 74 5,534 102 Multi-family 114 1 119 1 Commercial real estate 3,184 37 1,603 18 Construction and land 2,538 71 9 — Home equity 647 10 677 13 Other consumer 101 7 30 1 Commercial business 675 3 338 4 Total $ 11,048 $ 203 $ 8,310 $ 139 Interest income recognized on a cash basis on impaired loans for the three months ended March 31, 2018 and 2017 , was $166,000 and $88,000 , respectively. The following table presents the recorded investment in nonaccrual loans by class of loan at the dates indicated: March 31, 2018 December 31, 2017 (In thousands) One-to-four family $ 820 $ 681 Commercial real estate 260 378 Construction and land 50 52 Home equity 359 365 Other consumer 101 59 Commercial business 583 — Total nonaccrual loans $ 2,173 $ 1,535 Past due loans. Loans are considered past due if the required principal and interest payments have not been received as of the date such payments were due. There were no loans past due 90 days or more and still accruing interest at March 31, 2018 and December 31, 2017 . The following table presents past due loans, net of partial loan charge-offs, by class, as of March 31, 2018 : 30-59 Past Due 60-89 Past Due 90 Days Past Due Total Past Due Current Total Loans (In thousands) Real Estate: One-to-four family $ 1,656 $ — $ 201 $ 1,857 $ 345,596 $ 347,453 Multi-family — — — — 68,095 68,095 Commercial real estate — — — — 220,542 220,542 Construction and land 38 — — 38 75,646 75,684 Total real estate loans 1,694 — 201 1,895 709,879 711,774 Consumer: Home equity 453 5 — 458 38,080 38,538 Other consumer 145 46 27 218 39,260 39,478 Total consumer loans 598 51 27 676 77,340 78,016 Commercial business loans — — 583 583 15,580 16,163 Total loans $ 2,292 $ 51 $ 811 $ 3,154 $ 802,799 $ 805,953 The following table presents past due loans, net of partial loan charge-offs, by class, as of December 31, 2017 : 30-59 Past Due 60-89 Past Due 90 Days Past Due Total Past Due Current Total Loans (In thousands) Real Estate: One-to-four family $ 213 $ — $ 231 $ 444 $ 354,947 $ 355,391 Multi-family — — — — 73,767 73,767 Commercial real estate 91 — — 91 202,865 202,956 Construction and land 1,187 — 19 1,206 69,939 71,145 Total real estate loans 1,491 — 250 1,741 701,518 703,259 Consumer: Home equity 383 78 — 461 38,012 38,473 Other consumer 77 30 — 107 27,999 28,106 Total consumer loans 460 108 — 568 66,011 66,579 Commercial business loans 648 — — 648 15,655 16,303 Total loans $ 2,599 $ 108 $ 250 $ 2,957 $ 783,184 $ 786,141 Credit quality indicator. Federal regulations provide for the classification of lower quality loans and other assets, such as debt and equity securities, as substandard, doubtful, or loss; risk ratings 6, 7, and 8 in our 8-point risk rating system, respectively. An asset is considered substandard if it is inadequately protected by the current net worth and pay capacity of the borrower or of any collateral pledged. Substandard assets include those characterized by the distinct possibility that First Federal will sustain some loss if the deficiencies are not corrected. Assets classified as doubtful have all the weaknesses inherent in those classified substandard with the added characteristic that the weaknesses present make collection or liquidation in full highly questionable and improbable, on the basis of currently existing facts, conditions, and values. Assets classified as loss are those considered uncollectible and of such little value that their continuance as assets without the establishment of a specific loss reserve is not warranted. When First Federal classifies problem assets as either substandard or doubtful, it may establish a specific allowance to address the risk specifically or allow the loss to be addressed in the general allowance. General allowances represent loss allowances that have been established to recognize the inherent risk associated with lending activities but that, unlike specific allowances, have not been specifically allocated to particular problem assets. When an insured institution classifies problem assets as a loss, it is required to charge off such assets in the period in which they are deemed uncollectible. Assets that do not currently expose First Federal to sufficient risk to warrant classification as substandard or doubtful but do possess identified weaknesses are designated as either watch or special mention assets; risk ratings 4 and 5 in our risk rating system, respectively. Loans not otherwise classified are considered pass graded loans and are rated 1-3 in our risk rating system. Additionally, First Federal categorizes loans as performing or nonperforming based on payment activity. Loans that are more than 90 days past due and nonaccrual loans are considered nonperforming. The following table represents the internally assigned grade as of March 31, 2018 , by class of loans: Pass Watch Special Mention Sub- Standard Loss Total (In thousands) Real Estate: One-to-four family $ 340,762 $ 4,830 $ 660 $ 1,201 $ — $ 347,453 Multi-family 67,981 — 114 — — 68,095 Commercial real estate 206,082 10,015 755 3,690 — 220,542 Construction and land 65,577 6,314 — 3,793 — 75,684 Total real estate loans 680,402 21,159 1,529 8,684 — 711,774 Consumer: Home equity 37,492 417 99 530 — 38,538 Other consumer 39,031 165 81 190 11 39,478 Total consumer loans 76,523 582 180 720 11 78,016 Commercial business loans 14,346 953 281 583 — 16,163 Total loans $ 771,271 $ 22,694 $ 1,990 $ 9,987 $ 11 $ 805,953 The following table represents the internally assigned grade as of December 31, 2017 , by class of loans: Pass Watch Special Mention Sub- Standard Total (In thousands) Real Estate: One-to-four family $ 348,273 $ 4,134 $ 1,580 $ 1,404 $ 355,391 Multi-family 71,535 2,117 115 — 73,767 Commercial real estate 188,251 9,893 964 3,848 202,956 Construction and land 59,360 8,040 3,662 83 71,145 Total real estate loans 667,419 24,184 6,321 5,335 703,259 Consumer: Home equity 37,502 323 93 555 38,473 Other consumer 27,646 202 146 112 28,106 Total consumer loans 65,148 525 239 667 66,579 Commercial business loans 14,230 653 772 648 16,303 Total loans $ 746,797 $ 25,362 $ 7,332 $ 6,650 $ 786,141 The following table represents the credit risk profile based on payment activity as of March 31, 2018 , by class of loans: Nonperforming Performing Total (In thousands) Real Estate: One-to-four family $ 820 $ 346,633 $ 347,453 Multi-family — 68,095 68,095 Commercial real estate 260 220,282 220,542 Construction and land 50 75,634 75,684 Consumer: Home equity 359 38,179 38,538 Other consumer 101 39,377 39,478 Commercial business 583 15,580 16,163 Total loans $ 2,173 $ 803,780 $ 805,953 The following table represents the credit risk profile based on payment activity as of December 31, 2017 , by class of loans: Nonperforming Performing Total (In thousands) Real Estate: One-to-four family $ 681 $ 354,710 $ 355,391 Multi-family — 73,767 73,767 Commercial real estate 378 202,578 202,956 Construction and land 52 71,093 71,145 Consumer: Home equity 365 38,108 38,473 Other consumer 59 28,047 28,106 Commercial business — 16,303 16,303 Total loans $ 1,535 $ 784,606 $ 786,141 Troubled debt restructuring. A TDR is a loan to a borrower who is experiencing financial difficulty that has been modified from its original terms and conditions in such a way that First Federal is granting the borrower a concession of some kind. First Federal has granted a variety of concessions to borrowers in the form of loan modifications. The modifications are generally related to the loan's interest rate, term and payment amount or a combination thereof. Upon identifying a receivable as a TDR loan, First Federal classifies the loan as impaired for purposes of determining the allowance for loan losses. This requires the loan to initially be evaluated individually for impairment, generally based on the expected cash flows under the new terms discounted at the loan’s original effective interest rates. For TDR loans that subsequently default, the method of determining impairment is generally the fair value of the collateral less estimated selling costs. TDR loans may be upgraded in their classification and placed on accrual status once there is a sustained period of repayment performance, usually six months or longer, and there is a reasonable assurance that repayment will continue. First Federal allows reclassification of a troubled debt restructuring back into the general loan pool (as a non-troubled debt restructuring) if the borrower is able to refinance the loan at then-current market rates and meet all of the underwriting criteria of First Federal required of other borrowers. The refinance must be based on the borrower’s ability to repay the debt and no special concessions of rate and/or term are granted to the borrower. The following table is a summary of information pertaining to TDR loans included in impaired loans at the dates indicated: March 31, December 31, 2018 2017 (In thousands) Total TDR loans $ 4,543 $ 4,919 Allowance for loan losses related to TDR loans 159 182 Total nonaccrual TDR loans 372 393 The following table presents newly restructured and renewals or modifications of existing TDR loans by class that occurred during the three months ended March 31, 2018 , by type of concession granted. Number of Contracts Rate Modification Term Modification Combination Total Modifications (Dollars in thousands) Pre-modification outstanding recorded investment One- to four-family 2 $ — $ — $ 180 $ 180 2 $ — $ — $ 180 $ 180 Post-modification outstanding recorded investment One- to four-family 2 $ — $ — $ 179 $ 179 2 $ — $ — $ 179 $ 179 There were no TDR loans which incurred a payment default within 12 months of the restructure date during the three months ended March 31, 2018 . The following table presents newly restructured and renewals or modifications of existing TDR loans by class that occurred during the three months ended March 31, 2017 , by type of concession granted. Number of Contracts Rate Modification Term Modification Combination Total Modifications (Dollars in thousands) Pre-modification outstanding recorded investment One- to four-family 2 $ 95 $ 89 $ — $ 184 Commercial real estate 1 — — 134 134 3 $ 95 $ 89 $ 134 $ 318 Post-modification outstanding recorded investment One- to four-family 2 $ 94 $ 88 $ — $ 182 Commercial real estate 1 — — 134 134 3 $ 94 $ 88 $ 134 $ 316 The following is a summary of TDR loans which incurred a payment default within 12 months of the restructure date during the three months ended March 31, 2017 . Number of Contracts Rate Modification Term Modification Combination Total Modifications (Dollars in thousands) TDR loans that subsequently defaulted One- to four-family 1 $ — $ — $ 50 $ 50 No additional funds were committed to be advanced in connection with impaired loans at March 31, 2018 . The following table presents TDR loans by class at the dates indicated by accrual and nonaccrual status. March 31, 2018 December 31, 2017 Accrual Nonaccrual Total Accrual Nonaccrual Total (In thousands) One-to-four family $ 2,824 $ 265 $ 3,089 $ 3,165 $ 176 $ 3,341 Multi-family 114 — 114 115 — 115 Commercial real estate 685 107 792 693 217 910 Home equity 267 — 267 270 — 270 Commercial business 281 — 281 283 — 283 Total TDR loans $ 4,171 $ 372 $ 4,543 $ 4,526 $ 393 $ 4,919 |