Loans Receivable | Loans Receivable Loans receivable consisted of the following at the dates indicated: June 30, 2019 December 31, 2018 (In thousands) Real Estate: One-to-four family $ 331,748 $ 336,178 Multi-family 68,440 82,331 Commercial real estate 250,250 253,235 Construction and land 63,741 54,102 Total real estate loans 714,179 725,846 Consumer: Home equity 37,194 37,629 Auto and other consumer 112,583 87,357 Total consumer loans 149,777 124,986 Commercial business loans 15,098 18,898 Total loans 879,054 869,730 Less: Net deferred loan fees 103 292 Premium on purchased loans, net (4,738 ) (3,947 ) Allowance for loan losses 9,731 9,533 Total loans receivable, net $ 873,958 $ 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 June 30, 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 $ 3,441 $ 769 $ 2,337 $ 700 $ 467 $ 1,678 $ 191 $ 176 $ 9,759 Provision for loan losses (25 ) (118 ) 20 11 (22 ) 416 (20 ) (7 ) 255 Charge-offs — — — — — (362 ) — — (362 ) Recoveries 1 — — — 20 58 — — 79 Ending balance $ 3,417 $ 651 $ 2,357 $ 711 $ 465 $ 1,790 $ 171 $ 169 $ 9,731 At or For the Six Months Ended June 30, 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 117 (111 ) 68 126 (36 ) 593 (161 ) (6 ) 590 Charge-offs — — — — — (548 ) (4 ) — (552 ) Recoveries 3 — — — 21 134 2 — 160 Ending balance $ 3,417 $ 651 $ 2,357 $ 711 $ 465 $ 1,790 $ 171 $ 169 $ 9,731 At June 30, 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 $ 3,417 $ 651 $ 2,357 $ 711 $ 465 $ 1,790 $ 171 $ 169 $ 9,731 General reserve 3,381 650 2,347 710 458 1,740 164 169 9,619 Specific reserve 36 1 10 1 7 50 7 — 112 Total loans $ 331,748 $ 68,440 $ 250,250 $ 63,741 $ 37,194 $ 112,583 $ 15,098 $ — $ 879,054 Loans collectively evaluated (1) 328,739 68,331 248,320 63,676 36,793 112,343 14,800 — 873,002 Loans individually evaluated (2) 3,009 109 1,930 65 401 240 298 — 6,052 (1) Loans collectively evaluated for general reserves. (2) Loans individually evaluated for specific reserves. At or For the Three Months Ended June 30, 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 $ 3,167 $ 647 $ 2,053 $ 679 $ 744 $ 948 $ 709 $ 37 $ 8,984 Provision for loan losses (102 ) 194 107 (166 ) (110 ) 476 6 (10 ) 395 Charge-offs (16 ) — — — — (134 ) — — (150 ) Recoveries 1 — — 1 8 42 1 — 53 Ending balance $ 3,050 $ 841 $ 2,160 $ 514 $ 642 $ 1,332 $ 716 $ 27 $ 9,282 At or For the Six Months Ended June 30, 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 3 193 313 (135 ) (161 ) 807 450 (765 ) 705 Charge-offs (16 ) — — — — (257 ) — — (273 ) Recoveries 2 — — 1 16 70 1 — 90 Ending balance $ 3,050 $ 841 $ 2,160 $ 514 $ 642 $ 1,332 $ 716 $ 27 $ 9,282 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: June 30, 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 $ 188 $ 222 $ — $ 306 $ 339 $ — Commercial real estate 1,274 1,346 — 1,308 1,374 — Construction and land — — — — 1 — Home equity 57 161 — 330 478 — Auto and other consumer (7 ) 504 — — 276 — Commercial business — — — — 3 — Total 1,512 2,233 — 1,944 2,471 — With an allowance recorded: One-to-four family 2,821 3,088 36 2,810 3,085 35 Multi-family 109 109 1 110 110 1 Commercial real estate 656 656 10 664 663 8 Construction and land 65 99 1 44 71 1 Home equity 344 410 7 297 364 6 Auto and other consumer 247 247 50 244 244 59 Commercial business 298 298 7 445 445 166 Total 4,540 4,907 112 4,614 4,982 276 Total impaired loans: One-to-four family 3,009 3,310 36 3,116 3,424 35 Multi-family 109 109 1 110 110 1 Commercial real estate 1,930 2,002 10 1,972 2,037 8 Construction and land 65 99 1 44 72 1 Home equity 401 571 7 627 842 6 Auto and other consumer 240 751 50 244 520 59 Commercial business 298 298 7 445 448 166 Total $ 6,052 $ 7,140 $ 112 $ 6,558 $ 7,453 $ 276 The following table presents a summary of loans individually evaluated for impairment by portfolio segment at the dates indicated: Three Months Ended Six Months Ended June 30, 2019 June 30, 2019 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized (In thousands) With no allowance recorded: One-to-four family $ 189 $ 3 $ 246 $ 5 Commercial real estate 1,278 13 1,288 25 Home equity 55 9 190 17 Auto and other consumer — 9 — 11 Total 1,522 34 1,724 58 With an allowance recorded: One-to-four family 2,827 69 2,829 112 Multi-family 109 1 110 3 Commercial real estate 658 8 660 15 Construction and land 66 3 59 3 Home equity 307 8 303 13 Auto and other consumer 311 6 287 9 Commercial business 302 5 315 10 Total 4,580 100 4,563 165 Total impaired loans: One-to-four family 3,016 72 3,075 117 Multi-family 109 1 110 3 Commercial real estate 1,936 21 1,948 40 Construction and land 66 3 59 3 Home equity 362 17 493 30 Auto and other consumer 311 15 287 20 Commercial business 302 5 315 10 Total $ 6,102 $ 134 $ 6,287 $ 223 Interest income recognized on a cash basis on impaired loans for the three and six months ended June 30, 2019 , was $94,000 and $183,000 , respectively. 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 Six Months Ended June 30, 2018 June 30, 2018 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized (In thousands) With no allowance recorded: One-to-four family $ 407 $ 6 $ 408 $ 10 Commercial real estate 2,720 13 2,554 26 Construction and land 2,486 — 2,487 — Home equity 356 9 358 9 Auto and other consumer — 5 — 9 Total 5,969 33 5,807 54 With an allowance recorded: One-to-four family 2,779 62 3,080 102 Multi-family 113 1 114 3 Commercial real estate 785 7 790 17 Construction and land 49 3 50 4 Home equity 268 6 277 11 Auto and other consumer 116 4 108 5 Commercial business 862 33 769 36 Total 4,972 116 5,188 178 Total impaired loans: One-to-four family 3,186 68 3,488 112 Multi-family 113 1 114 3 Commercial real estate 3,505 20 3,344 43 Construction and land 2,535 3 2,537 4 Home equity 624 15 635 20 Auto and other consumer 116 9 108 14 Commercial business 862 33 769 36 Total $ 10,941 $ 149 $ 10,995 $ 232 Interest income recognized on a cash basis on impaired loans for the three and six months ended June 30, 2018 , was $111,000 and $194,000 , respectively. The following table presents the recorded investment in nonaccrual loans by class of loan at the dates indicated: June 30, 2019 December 31, 2018 (In thousands) One-to-four family $ 685 $ 759 Commercial real estate 123 133 Construction and land 65 44 Home equity 148 369 Auto and other consumer 240 245 Commercial business 30 173 Total nonaccrual loans $ 1,291 $ 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 June 30, 2019 and December 31, 2018 . The following table presents past due loans, net of partial loan charge-offs, by class, as of June 30, 2019 : 30-59 Days 60-89 Days 90 Days or More Total Current Total Loans (In thousands) Real Estate: One-to-four family $ 685 $ — $ 100 $ 785 $ 330,963 $ 331,748 Multi-family — — — — 68,440 68,440 Commercial real estate — — — — 250,250 250,250 Construction and land — — 31 31 63,710 63,741 Total real estate loans 685 — 131 816 713,363 714,179 Consumer: Home equity 145 — 25 170 37,024 37,194 Auto and other consumer 795 158 15 968 111,615 112,583 Total consumer loans 940 158 40 1,138 148,639 149,777 Commercial business loans — — 30 30 15,068 15,098 Total loans $ 1,625 $ 158 $ 201 $ 1,984 $ 877,070 $ 879,054 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 June 30, 2019 , by class of loans: Pass Watch Special Mention Substandard Total (In thousands) Real Estate: One-to-four family $ 326,047 $ 3,761 $ 1,136 $ 804 $ 331,748 Multi-family 68,028 303 109 — 68,440 Commercial real estate 242,070 3,821 3,026 1,333 250,250 Construction and land 62,102 1,527 47 65 63,741 Total real estate loans 698,247 9,412 4,318 2,202 714,179 Consumer: Home equity 36,119 648 154 273 37,194 Auto and other consumer 110,265 1,668 356 294 112,583 Total consumer loans 146,384 2,316 510 567 149,777 Commercial business loans 13,015 87 1,635 361 15,098 Total loans $ 857,646 $ 11,815 $ 6,463 $ 3,130 $ 879,054 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 June 30, 2019 , by class of loans: Nonperforming Performing Total (In thousands) Real Estate: One-to-four family $ 685 $ 331,063 $ 331,748 Multi-family — 68,440 68,440 Commercial real estate 123 250,127 250,250 Construction and land 65 63,676 63,741 Consumer: Home equity 148 37,046 37,194 Auto and other consumer 240 112,343 112,583 Commercial business 30 15,068 15,098 Total loans $ 1,291 $ 877,763 $ 879,054 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: June 30, 2019 December 31, 2018 (In thousands) Total TDR loans $ 3,744 $ 3,745 Allowance for loan losses related to TDR loans 48 43 Total nonaccrual TDR loans 134 84 The following table presents newly restructured and renewals or modifications of existing TDR loans by class that occurred during the three and six months ended June 30, 2019 , by type of concession granted. Number of Contracts Rate Modification Term Modification Combination Modification Total Modifications (Dollars in thousands) Pre-modification outstanding recorded investment One- to four-family 1 $ — $ 50 $ — $ 50 Post-modification outstanding recorded investment One- to four-family 1 $ — $ 51 $ — $ 51 The following is a summary of TDR loans which incurred a payment default within 12 months of the restructure date during the six months ended June 30, 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 There were no newly restructured and renewals or modifications of existing TDR loans by class that occurred during the three months ended June 30, 2018 , by type of concession granted. The following table presents newly restructured and renewals or modifications of existing TDR loans by class that occurred during the six months ended June 30, 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 Post-modification outstanding recorded investment One- to four-family 2 $ — $ — $ 179 $ 179 There were no TDR loans which incurred a payment default within 12 months of the restructure date during the three and six months ended June 30, 2018 . No additional funds were committed to be advanced in connection with impaired loans at June 30, 2019 . The following table presents TDR loans by class at the dates indicated by accrual and nonaccrual status. June 30, 2019 December 31, 2018 Accrual Nonaccrual Total Accrual Nonaccrual Total (In thousands) One-to-four family $ 2,324 $ 134 $ 2,458 $ 2,358 $ 84 $ 2,442 Multi-family 109 — 109 110 — 110 Commercial real estate 656 — 656 663 — 663 Home equity 253 — 253 258 — 258 Commercial business 268 — 268 272 — 272 Total TDR loans $ 3,610 $ 134 $ 3,744 $ 3,661 $ 84 $ 3,745 |