Loans Receivable | Loans Receivable Loans receivable consisted of the following at the dates indicated: March 31, 2019 December 31, 2018 (In thousands) Real Estate: One-to-four family $ 338,669 $ 336,178 Multi-family 81,576 82,331 Commercial real estate 250,521 253,235 Construction and land 63,536 54,102 Total real estate loans 734,302 725,846 Consumer: Home equity 37,058 37,629 Auto and other consumer 99,070 87,357 Total consumer loans 136,128 124,986 Commercial business loans 18,496 18,898 Total loans 888,926 869,730 Less: Net deferred loan fees 285 299 Premium on purchased loans, net (4,313 ) (3,954 ) Allowance for loan losses 9,759 9,533 Total loans receivable, net $ 883,195 $ 863,852 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, 2019 One-to- four family Multi-family Commercial real estate Construction and land Home equity Auto and other consumer Commercial business Unallocated Total (In thousands) ALLL: Beginning balance $ 3,297 $ 762 $ 2,289 $ 585 $ 480 $ 1,611 $ 334 $ 175 $ 9,533 Provision for loan losses 142 7 48 115 (14 ) 177 (141 ) 1 335 Charge-offs — — — — — (186 ) (4 ) — (190 ) Recoveries 2 — — — 1 76 2 — 81 Ending balance $ 3,441 $ 769 $ 2,337 $ 700 $ 467 $ 1,678 $ 191 $ 176 $ 9,759 At March 31, 2019 One-to- four family Multi-family Commercial real estate Construction and land Home equity Auto and other consumer Commercial business Unallocated Total (In thousands) Total ALLL $ 3,441 $ 769 $ 2,337 $ 700 $ 467 $ 1,678 $ 191 $ 176 $ 9,759 General reserve 3,403 768 2,328 699 463 1,624 184 176 9,645 Specific reserve 38 1 9 1 4 54 7 — 114 Total loans $ 338,669 $ 81,576 $ 250,521 $ 63,536 $ 37,058 $ 99,070 $ 18,496 $ — $ 888,926 Loans collectively evaluated (1) 335,525 81,466 248,568 63,467 36,450 98,852 18,191 — 882,519 Loans individually evaluated (2) 3,144 110 1,953 69 608 218 305 — 6,407 (1) Loans collectively evaluated for general reserves. (2) Loans individually evaluated for specific reserves. At or For the Three Months Ended March 31, 2018 One-to- four family Multi-family Commercial real estate Construction and land Home equity Auto and other consumer Commercial business Unallocated Total ALLL: (In thousands) 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 December 31, 2018 One-to- four family Multi-family Commercial real estate Construction and land Home equity Auto and other consumer Commercial business Unallocated Total (In thousands) Total ALLL $ 3,297 $ 762 $ 2,289 $ 585 $ 480 $ 1,611 $ 334 $ 175 $ 9,533 General reserve 3,262 761 2,281 584 474 1,552 168 175 9,257 Specific reserve 35 1 8 1 6 59 166 — 276 Total loans $ 336,178 $ 82,331 $ 253,235 $ 54,102 $ 37,629 $ 87,357 $ 18,898 $ — $ 869,730 Loans collectively evaluated (1) 333,062 82,221 251,263 54,058 37,002 87,113 18,453 — 863,172 Loans individually evaluated (2) 3,116 110 1,972 44 627 244 445 — 6,558 (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, 2019 December 31, 2018 Recorded Investment Unpaid Principal Balance Related Allowance Recorded Investment Unpaid Principal Balance Related Allowance (In thousands) With no allowance recorded: One-to-four family $ 303 $ 336 $ — $ 306 $ 339 $ — Commercial real estate 1,292 1,360 — 1,308 1,374 — Construction and land — 1 — — 1 — Home equity 323 469 — 330 478 — Auto and other consumer — 306 — — 276 — Commercial business — — — — 3 — Total 1,918 2,472 — 1,944 2,471 — With an allowance recorded: One-to-four family 2,841 3,112 38 2,810 3,085 35 Multi-family 110 110 1 110 110 1 Commercial real estate 661 661 9 664 663 8 Construction and land 69 101 1 44 71 1 Home equity 285 353 4 297 364 6 Auto and other consumer 218 218 54 244 244 59 Commercial business 305 305 7 445 445 166 Total 4,489 4,860 114 4,614 4,982 276 Total impaired loans: One-to-four family 3,144 3,448 38 3,116 3,424 35 Multi-family 110 110 1 110 110 1 Commercial real estate 1,953 2,021 9 1,972 2,037 8 Construction and land 69 102 1 44 72 1 Home equity 608 822 4 627 842 6 Auto and other consumer 218 524 54 244 520 59 Commercial business 305 305 7 445 448 166 Total $ 6,407 $ 7,332 $ 114 $ 6,558 $ 7,453 $ 276 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, 2019 March 31, 2018 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized (In thousands) With no allowance recorded: One-to-four family $ 304 $ 5 $ 408 $ 8 Commercial real estate 1,296 12 2,389 27 Construction and land — — 2,487 68 Home equity 324 10 361 4 Auto and other consumer — 7 — 5 Total 1,924 34 5,645 112 With an allowance recorded: One-to-four family 2,831 68 3,381 66 Multi-family 110 1 114 1 Commercial real estate 663 7 795 10 Construction and land 53 2 51 3 Home equity 300 7 286 6 Auto and other consumer 263 7 101 2 Commercial business 328 5 675 3 Total 4,548 97 5,403 91 Total impaired loans: One-to-four family 3,135 73 3,789 74 Multi-family 110 1 114 1 Commercial real estate 1,959 19 3,184 37 Construction and land 53 2 2,538 71 Home equity 624 17 647 10 Auto and other consumer 263 14 101 7 Commercial business 328 5 675 3 Total $ 6,472 $ 131 $ 11,048 $ 203 Interest income recognized on a cash basis on impaired loans for the three months ended March 31, 2019 and 2018 , was $92,000 and $166,000 , respectively. The following table presents the recorded investment in nonaccrual loans by class of loan at the dates indicated: March 31, 2019 December 31, 2018 (In thousands) One-to-four family $ 803 $ 759 Commercial real estate 129 133 Construction and land 69 44 Home equity 352 369 Auto and other consumer 218 245 Commercial business 35 173 Total nonaccrual loans $ 1,606 $ 1,723 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, 2019 and December 31, 2018 . The following table presents past due loans, net of partial loan charge-offs, by class, as of March 31, 2019 : 30-59 Days 60-89 Days 90 Days or More Total Current Total Loans (In thousands) Real Estate: One-to-four family $ 625 $ 50 $ 100 $ 775 $ 337,894 $ 338,669 Multi-family — — — — 81,576 81,576 Commercial real estate — — — — 250,521 250,521 Construction and land 48 — 66 114 63,422 63,536 Total real estate loans 673 50 166 889 733,413 734,302 Consumer: Home equity 149 — — 149 36,909 37,058 Auto and other consumer 578 230 11 819 98,251 99,070 Total consumer loans 727 230 11 968 135,160 136,128 Commercial business loans — — 35 35 18,461 18,496 Total loans $ 1,400 $ 280 $ 212 $ 1,892 $ 887,034 $ 888,926 The following table presents past due loans, net of partial loan charge-offs, by class, as of December 31, 2018 : 30-59 Days 60-89 Days 90 Days or More Total Current Total Loans (In thousands) Real Estate: One-to-four family $ 289 $ 176 $ 164 $ 629 $ 335,549 $ 336,178 Multi-family — — — — 82,331 82,331 Commercial real estate — — — — 253,235 253,235 Construction and land 35 14 31 80 54,022 54,102 Total real estate loans 324 190 195 709 725,137 725,846 Consumer: Home equity 97 30 9 136 37,493 37,629 Auto and other consumer 471 92 — 563 86,794 87,357 Total consumer loans 568 122 9 699 124,287 124,986 Commercial business loans 923 — — 923 17,975 18,898 Total loans $ 1,815 $ 312 $ 204 $ 2,331 $ 867,399 $ 869,730 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, 2019 , by class of loans: Pass Watch Special Mention Substandard Total (In thousands) Real Estate: One-to-four family $ 332,957 $ 3,779 $ 666 $ 1,267 $ 338,669 Multi-family 77,470 3,996 110 — 81,576 Commercial real estate 236,666 9,630 2,872 1,353 250,521 Construction and land 63,116 351 — 69 63,536 Total real estate loans 710,209 17,756 3,648 2,689 734,302 Consumer: Home equity 35,955 540 82 481 37,058 Auto and other consumer 96,928 1,571 319 252 99,070 Total consumer loans 132,883 2,111 401 733 136,128 Commercial business loans 15,669 1,096 1,696 35 18,496 Total loans $ 858,761 $ 20,963 $ 5,745 $ 3,457 $ 888,926 The following table represents the internally assigned grade as of December 31, 2018 , by class of loans: Pass Watch Special Mention Substandard Total (In thousands) Real Estate: One-to-four family $ 330,476 $ 3,767 $ 957 $ 978 $ 336,178 Multi-family 82,221 — 110 — 82,331 Commercial real estate 244,919 6,281 663 1,372 253,235 Construction and land 51,480 2,578 — 44 54,102 Total real estate loans 709,096 12,626 1,730 2,394 725,846 Consumer: Home equity 36,559 465 123 482 37,629 Auto and other consumer 85,579 1,310 151 317 87,357 Total consumer loans 122,138 1,775 274 799 124,986 Commercial business loans 16,520 1,733 472 173 18,898 Total loans $ 847,754 $ 16,134 $ 2,476 $ 3,366 $ 869,730 The following table represents the credit risk profile based on payment activity as of March 31, 2019 , by class of loans: Nonperforming Performing Total (In thousands) Real Estate: One-to-four family $ 803 $ 337,866 $ 338,669 Multi-family — 81,576 81,576 Commercial real estate 129 250,392 250,521 Construction and land 69 63,467 63,536 Consumer: Home equity 352 36,706 37,058 Auto and other consumer 218 98,852 99,070 Commercial business 35 18,461 18,496 Total loans $ 1,606 $ 887,320 $ 888,926 The following table represents the credit risk profile based on payment activity as of December 31, 2018 , by class of loans: Nonperforming Performing Total (In thousands) Real Estate: One-to-four family $ 759 $ 335,419 $ 336,178 Multi-family — 82,331 82,331 Commercial real estate 133 253,102 253,235 Construction and land 44 54,058 54,102 Consumer: Home equity 369 37,260 37,629 Auto and other consumer 245 87,112 87,357 Commercial business 173 18,725 18,898 Total loans $ 1,723 $ 868,007 $ 869,730 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, 2019 December 31, 2018 (In thousands) Total TDR loans $ 3,722 $ 3,745 Allowance for loan losses related to TDR loans 46 43 Total nonaccrual TDR loans 83 84 There were no newly restructured and renewals or modifications of existing TDR loans that occurred during the three months ended March 31, 2019 . 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, 2019 . Number of Contracts Rate Modification Term Modification Combination Total Modifications (Dollars in thousands) TDR loans that subsequently defaulted One- to four-family 1 $ — $ — $ 48 $ 48 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 . No additional funds were committed to be advanced in connection with impaired loans at March 31, 2019 . The following table presents TDR loans by class at the dates indicated by accrual and nonaccrual status. March 31, 2019 December 31, 2018 Accrual Nonaccrual Total Accrual Nonaccrual Total (In thousands) One-to-four family $ 2,342 $ 83 $ 2,425 $ 2,358 $ 84 $ 2,442 Multi-family 110 — 110 110 — 110 Commercial real estate 661 — 661 663 — 663 Home equity 256 — 256 258 — 258 Commercial business 270 — 270 272 — 272 Total TDR loans $ 3,639 $ 83 $ 3,722 $ 3,661 $ 84 $ 3,745 |