Loans Receivable | Loans Receivable Loans receivable consisted of the following at the dates indicated: September 30, 2019 December 31, 2018 (In thousands) Real Estate: One-to-four family $ 302,337 $ 336,178 Multi-family 62,173 82,331 Commercial real estate 254,058 253,235 Construction and land 64,954 54,102 Total real estate loans 683,522 725,846 Consumer: Home equity 36,898 37,629 Auto and other consumer 111,312 87,357 Total consumer loans 148,210 124,986 Commercial business loans 14,325 18,898 Total loans 846,057 869,730 Less: Net deferred loan fees 117 292 Premium on purchased loans, net (4,649 ) (3,947 ) Allowance for loan losses 9,443 9,533 Total loans receivable, net $ 841,146 $ 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 September 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 $ 3,417 $ 651 $ 2,357 $ 711 $ 465 $ 1,790 $ 171 $ 169 $ 9,731 (Recapture of) provision for loan losses (307 ) (64 ) 47 16 (30 ) 192 (13 ) (11 ) (170 ) Charge-offs — — — — — (237 ) 1 — (236 ) Recoveries 1 — — 1 23 93 — — 118 Ending balance $ 3,111 $ 587 $ 2,404 $ 728 $ 458 $ 1,838 $ 159 $ 158 $ 9,443 At or For the Nine Months Ended September 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 (190 ) (175 ) 115 142 (66 ) 785 (174 ) (17 ) 420 Charge-offs — — — — — (785 ) (3 ) — (788 ) Recoveries 4 — — 1 44 227 2 — 278 Ending balance $ 3,111 $ 587 $ 2,404 $ 728 $ 458 $ 1,838 $ 159 $ 158 $ 9,443 At September 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 $ 3,111 $ 587 $ 2,404 $ 728 $ 458 $ 1,838 $ 159 $ 158 $ 9,443 General reserve 3,080 586 2,394 728 454 1,735 153 158 9,288 Specific reserve 31 1 10 — 4 103 6 — 155 Total loans $ 302,337 $ 62,173 $ 254,058 $ 64,954 $ 36,898 $ 111,312 $ 14,325 $ — $ 846,057 Loans collectively evaluated (1) 299,496 62,065 252,152 64,925 36,619 110,836 14,059 — 840,152 Loans individually evaluated (2) 2,841 108 1,906 29 279 476 266 — 5,905 (1) Loans collectively evaluated for general reserves. (2) Loans individually evaluated for specific reserves. At or For the Three Months Ended September 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 $ 3,050 $ 841 $ 2,160 $ 514 $ 642 $ 1,332 $ 716 $ 27 $ 9,282 Provision for loan losses 3 (31 ) (47 ) 28 (81 ) 179 (31 ) 177 197 Charge-offs (2 ) — — — — (265 ) — — (267 ) Recoveries 2 — — — 7 114 — — 123 Ending balance $ 3,053 $ 810 $ 2,113 $ 542 $ 568 $ 1,360 $ 685 $ 204 $ 9,335 At or For the Nine Months Ended September 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 6 162 266 (107 ) (242 ) 986 419 (588 ) 902 Charge-offs (18 ) — — — — (522 ) — — (540 ) Recoveries 4 — — 1 23 184 1 — 213 Ending balance $ 3,053 $ 810 $ 2,113 $ 542 $ 568 $ 1,360 $ 685 $ 204 $ 9,335 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. 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: September 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 $ 235 $ 270 $ — $ 306 $ 339 $ — Commercial real estate 1,256 1,332 — 1,308 1,374 — Construction and land — — — — 1 — Home equity 49 143 — 330 478 — Auto and other consumer — 360 — — 276 — Commercial business — — — — 3 — Total 1,540 2,105 — 1,944 2,471 — With an allowance recorded: One-to-four family 2,606 2,817 31 2,810 3,085 35 Multi-family 108 108 1 110 110 1 Commercial real estate 650 650 10 664 663 8 Construction and land 29 63 — 44 71 1 Home equity 230 290 4 297 364 6 Auto and other consumer 476 622 103 244 244 59 Commercial business 266 266 6 445 445 166 Total 4,365 4,816 155 4,614 4,982 276 Total impaired loans: One-to-four family 2,841 3,087 31 3,116 3,424 35 Multi-family 108 108 1 110 110 1 Commercial real estate 1,906 1,982 10 1,972 2,037 8 Construction and land 29 63 — 44 72 1 Home equity 279 433 4 627 842 6 Auto and other consumer 476 982 103 244 520 59 Commercial business 266 266 6 445 448 166 Total $ 5,905 $ 6,921 $ 155 $ 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 Nine Months Ended September 30, 2019 September 30, 2019 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized (In thousands) With no allowance recorded: One-to-four family $ 236 $ 4 $ 243 $ 8 Commercial real estate 1,260 15 1,278 39 Home equity 52 14 144 30 Auto and other consumer — 10 — 14 Commercial business — 1 — 4 Total 1,548 44 1,665 95 With an allowance recorded: One-to-four family 2,891 64 2,850 146 Multi-family 108 1 109 4 Commercial real estate 651 8 657 23 Construction and land 52 2 57 2 Home equity 289 6 297 14 Auto and other consumer 394 9 324 16 Commercial business 266 2 299 9 Total 4,651 92 4,593 214 Total impaired loans: One-to-four family 3,127 68 3,093 154 Multi-family 108 1 109 4 Commercial real estate 1,911 23 1,935 62 Construction and land 52 2 57 2 Home equity 341 20 441 44 Auto and other consumer 394 19 324 30 Commercial business 266 3 299 13 Total $ 6,199 $ 136 $ 6,258 $ 309 Interest income recognized on a cash basis on impaired loans for the three and nine months ended September 30, 2019 , was $99,000 and $271,000 , 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 Nine Months Ended September 30, 2018 September 30, 2018 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized (In thousands) With no allowance recorded: One-to-four family $ 401 $ 9 $ 405 $ 12 Commercial real estate 1,334 13 2,148 34 Construction and land — — 1,658 — Home equity 344 3 353 3 Auto and other consumer — 7 — 11 Total 2,079 32 4,564 60 With an allowance recorded: One-to-four family 2,978 74 3,046 156 Multi-family 112 1 113 4 Commercial real estate 708 9 763 26 Construction and land 71 5 57 6 Home equity 266 7 274 16 Auto and other consumer 76 3 98 4 Commercial business 852 14 796 50 Total 5,063 113 5,147 262 Total impaired loans: One-to-four family 3,379 83 3,451 168 Multi-family 112 1 113 4 Commercial real estate 2,042 22 2,911 60 Construction and land 71 5 1,715 6 Home equity 610 10 627 19 Auto and other consumer 76 10 98 15 Commercial business 852 14 796 50 Total $ 7,142 $ 145 $ 9,711 $ 322 Interest income recognized on a cash basis on impaired loans for the three and nine months ended September 30, 2018 , was $101,000 and $278,000 , respectively. The following table presents the recorded investment in nonaccrual loans by class of loan at the dates indicated: September 30, 2019 December 31, 2018 (In thousands) One-to-four family $ 586 $ 759 Commercial real estate 116 133 Construction and land 29 44 Home equity 116 369 Auto and other consumer 475 245 Commercial business — 173 Total nonaccrual loans $ 1,322 $ 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 September 30, 2019 and December 31, 2018 . The following table presents past due loans, net of partial loan charge-offs, by class, as of September 30, 2019 : 30-59 Days 60-89 Days 90 Days or More Total Current Total Loans (In thousands) Real Estate: One-to-four family $ — $ 510 $ 26 $ 536 $ 301,801 $ 302,337 Multi-family — — — — 62,173 62,173 Commercial real estate — — — — 254,058 254,058 Construction and land — 33 — 33 64,921 64,954 Total real estate loans — 543 26 569 682,953 683,522 Consumer: Home equity 208 25 — 233 36,665 36,898 Auto and other consumer 1,148 496 177 1,821 109,491 111,312 Total consumer loans 1,356 521 177 2,054 146,156 148,210 Commercial business loans — — — — 14,325 14,325 Total loans $ 1,356 $ 1,064 $ 203 $ 2,623 $ 843,434 $ 846,057 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 September 30, 2019 , by class of loans: Pass Watch Special Mention Substandard Total (In thousands) Real Estate: One-to-four family $ 297,192 $ 2,913 $ 1,142 $ 1,090 $ 302,337 Multi-family 61,767 — 406 — 62,173 Commercial real estate 246,300 3,447 2,999 1,312 254,058 Construction and land 63,272 1,541 112 29 64,954 Total real estate loans 668,531 7,901 4,659 2,431 683,522 Consumer: Home equity 36,055 536 27 280 36,898 Auto and other consumer 107,432 2,721 598 561 111,312 Total consumer loans 143,487 3,257 625 841 148,210 Commercial business loans 12,356 354 266 1,349 14,325 Total loans $ 824,374 $ 11,512 $ 5,550 $ 4,621 $ 846,057 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 September 30, 2019 , by class of loans: Nonperforming Performing Total (In thousands) Real Estate: One-to-four family $ 586 $ 301,751 $ 302,337 Multi-family — 62,173 62,173 Commercial real estate 116 253,942 254,058 Construction and land 29 64,925 64,954 Consumer: Home equity 116 36,782 36,898 Auto and other consumer 475 110,837 111,312 Commercial business — 14,325 14,325 Total loans $ 1,322 $ 844,735 $ 846,057 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. The following table is a summary of information pertaining to TDR loans included in impaired loans at the dates indicated: September 30, 2019 December 31, 2018 (In thousands) Total TDR loans $ 3,576 $ 3,745 Allowance for loan losses related to TDR loans 45 43 Total nonaccrual TDR loans 133 84 There were no newly restructured and renewals or modifications of existing TDR loans that occurred during the three months ended September 30, 2019 . The following table presents newly restructured and renewals or modifications of existing TDR loans by class that occurred during the nine months ended September 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 nine months ended September 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 The following table presents newly restructured and renewals or modifications of existing TDR loans by class that occurred during the three months ended September 30, 2018 , 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 $ — $ — $ 49 $ 49 Post-modification outstanding recorded investment One- to four-family 1 $ — $ — $ 47 $ 47 The following table presents newly restructured and renewals or modifications of existing TDR loans by class that occurred during the nine months ended September 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 3 $ — $ — $ 229 $ 229 Post-modification outstanding recorded investment One- to four-family 3 $ — $ — $ 260 $ 260 There were no TDR loans which incurred a payment default within 12 months of the restructure date during the three and nine months ended September 30, 2018 . No additional funds were committed to be advanced in connection with impaired loans at September 30, 2019 . The following table presents TDR loans by class at the dates indicated by accrual and nonaccrual status. September 30, 2019 December 31, 2018 Accrual Nonaccrual Total Accrual Nonaccrual Total (In thousands) One-to-four family $ 2,255 $ 133 $ 2,388 $ 2,358 $ 84 $ 2,442 Multi-family 108 — 108 110 — 110 Commercial real estate 650 — 650 663 — 663 Home equity 164 — 164 258 — 258 Commercial business 266 — 266 272 — 272 Total TDR loans $ 3,443 $ 133 $ 3,576 $ 3,661 $ 84 $ 3,745 |