Loans Receivable | Loans Receivable Loans receivable consisted of the following at the dates indicated: March 31, 2020 December 31, 2019 (In thousands) Real Estate: One-to-four family $ 302,688 $ 306,014 Multi-family 88,794 96,098 Commercial real estate 260,321 255,722 Construction and land 48,565 37,187 Total real estate loans 700,368 695,021 Consumer: Home equity 35,260 35,046 Auto and other consumer 114,194 112,119 Total consumer loans 149,454 147,165 Commercial business loans 55,853 41,571 Total loans 905,675 883,757 Less: Net deferred loan fees 433 206 Premium on purchased loans, net (4,742 ) (4,514 ) Allowance for loan losses 10,830 9,628 Total loans receivable, net $ 899,154 $ 878,437 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, 2020 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 $ 3,024 $ 888 $ 2,243 $ 399 $ 454 $ 2,261 $ 208 $ 151 $ 9,628 Provision for loan losses 319 35 479 191 (6 ) 176 42 30 1,266 Charge-offs — — — — — (134 ) — — (134 ) Recoveries 53 — — 2 1 14 — — 70 Ending balance $ 3,396 $ 923 $ 2,722 $ 592 $ 449 $ 2,317 $ 250 $ 181 $ 10,830 At March 31, 2020 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 $ 3,396 $ 923 $ 2,722 $ 592 $ 449 $ 2,317 $ 250 $ 181 $ 10,830 General reserve 3,363 922 2,713 591 443 2,263 245 181 10,721 Specific reserve 33 1 9 1 6 54 5 — 109 Total loans $ 302,688 $ 88,794 $ 260,321 $ 48,565 $ 35,260 $ 114,194 $ 55,853 $ — $ 905,675 Loans collectively evaluated (1) 299,947 88,391 258,451 48,537 34,971 113,485 55,590 — 899,372 Loans individually evaluated (2) 2,741 403 1,870 28 289 709 263 — 6,303 (1) Loans collectively evaluated for general reserves. (2) Loans individually evaluated for specific reserves. 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 ALLL: (In thousands) 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 December 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 $ 3,024 $ 888 $ 2,243 $ 399 $ 454 $ 2,261 $ 208 $ 151 $ 9,628 General reserve 2,993 887 2,235 399 439 2,119 203 151 9,426 Specific reserve 31 1 8 — 15 142 5 — 202 Total loans $ 306,014 $ 96,098 $ 255,722 $ 37,187 $ 35,046 $ 112,119 $ 41,571 $ — $ 883,757 Loans collectively evaluated (1) 303,026 95,991 253,839 37,158 34,775 111,271 41,308 — 877,368 Loans individually evaluated (2) 2,988 107 1,883 29 271 848 263 — 6,389 (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: March 31, 2020 December 31, 2019 Recorded Investment Unpaid Principal Balance Related Allowance Recorded Investment Unpaid Principal Balance Related Allowance (In thousands) With no allowance recorded: One-to-four family $ 72 $ 99 $ — $ 297 $ 332 $ — Multi-family 296 296 — — — — Commercial real estate 1,227 1,310 — 1,240 1,320 — Construction and land — 32 — — 33 — Home equity 42 114 — 45 110 — Auto and other consumer — 271 — 251 548 — Commercial business — — — — — — Total 1,637 2,122 — 1,833 2,343 — With an allowance recorded: One-to-four family 2,669 2,884 33 2,691 2,911 31 Multi-family 107 107 1 107 107 1 Commercial real estate 643 643 9 643 643 8 Construction and land 28 28 1 29 29 — Home equity 247 307 6 226 286 15 Auto and other consumer 709 818 54 597 690 142 Commercial business 263 263 5 263 263 5 Total 4,666 5,050 109 4,556 4,929 202 Total impaired loans: One-to-four family 2,741 2,983 33 2,988 3,243 31 Multi-family 403 403 1 107 107 1 Commercial real estate 1,870 1,953 9 1,883 1,963 8 Construction and land 28 60 1 29 62 — Home equity 289 421 6 271 396 15 Auto and other consumer 709 1,089 54 848 1,238 142 Commercial business 263 263 5 263 263 5 Total $ 6,303 $ 7,172 $ 109 $ 6,389 $ 7,272 $ 202 The following table presents a summary of loans individually evaluated for impairment by portfolio segment at the dates indicated: Three Months Ended March 31, 2020 Average Recorded Investment Interest Income Recognized (In thousands) With no allowance recorded: One-to-four family $ 108 $ 1 Multi-family 99 — Commercial real estate 1,231 15 Home equity 42 3 Auto and other consumer — 10 Commercial business — — Total 1,480 29 With an allowance recorded: One-to-four family 2,676 64 Multi-family 305 — Commercial real estate 643 — Construction and land 28 2 Home equity 248 6 Auto and other consumer 689 17 Commercial business 263 — Total 4,852 89 Total impaired loans: One-to-four family 2,784 65 Multi-family 404 — Commercial real estate 1,874 15 Construction and land 28 2 Home equity 290 9 Auto and other consumer 689 27 Commercial business 263 — Total $ 6,332 $ 118 Interest income recognized on a cash basis on impaired loans for the three months ended March 31, 2020 , was $76,000 . 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 March 31, 2019 Average Recorded Investment Interest Income Recognized (In thousands) With no allowance recorded: One-to-four family $ 304 $ 5 Commercial real estate 1,296 12 Construction and land — — Home equity 324 10 Auto and other consumer — 7 Total 1,924 34 With an allowance recorded: One-to-four family 2,831 68 Multi-family 110 1 Commercial real estate 663 7 Construction and land 53 2 Home equity 300 7 Auto and other consumer 263 7 Commercial business 328 5 Total 4,548 97 Total impaired loans: One-to-four family 3,135 73 Multi-family 110 1 Commercial real estate 1,959 19 Construction and land 53 2 Home equity 624 17 Auto and other consumer 263 14 Commercial business 328 5 Total $ 6,472 $ 131 Interest income recognized on a cash basis on impaired loans for the three months ended March 31, 2019 , was $92,000 . The following table presents the recorded investment in nonaccrual loans by class of loan at the dates indicated: March 31, 2020 December 31, 2019 (In thousands) One-to-four family $ 467 $ 698 Multi-family 297 — Commercial real estate 106 109 Construction and land 28 29 Home equity 133 112 Auto and other consumer 709 848 Commercial business — — Total nonaccrual loans $ 1,740 $ 1,796 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, 2020 and December 31, 2019 . The following table presents past due loans, net of partial loan charge-offs, by class, as of March 31, 2020 : 30-59 Days 60-89 Days 90 Days or More Total Current Total Loans (In thousands) Real Estate: One-to-four family $ 1,791 $ — $ — $ 1,791 $ 300,897 $ 302,688 Multi-family — 107 297 404 88,390 88,794 Commercial real estate — 643 — 643 259,678 260,321 Construction and land 689 — — 689 47,876 48,565 Total real estate loans 2,480 750 297 3,527 696,841 700,368 Consumer: Home equity 13 12 24 49 35,211 35,260 Auto and other consumer 2,157 324 380 2,861 111,333 114,194 Total consumer loans 2,170 336 404 2,910 146,544 149,454 Commercial business loans 417 263 — 680 55,173 55,853 Total loans $ 5,067 $ 1,349 $ 701 $ 7,117 $ 898,558 $ 905,675 The following table presents past due loans, net of partial loan charge-offs, by class, as of December 31, 2019 : 30-59 Days 60-89 Days 90 Days or More Total Current Total Loans (In thousands) Real Estate: One-to-four family $ 928 $ 92 $ 116 $ 1,136 $ 304,878 $ 306,014 Multi-family — — — — 96,098 96,098 Commercial real estate — — — — 255,722 255,722 Construction and land 38 — — 38 37,149 37,187 Total real estate loans 966 92 116 1,174 693,847 695,021 Consumer: Home equity 299 24 — 323 34,723 35,046 Auto and other consumer 1,423 370 614 2,407 109,712 112,119 Total consumer loans 1,722 394 614 2,730 144,435 147,165 Commercial business loans — 115 — 115 41,456 41,571 Total loans $ 2,688 $ 601 $ 730 $ 4,019 $ 879,738 $ 883,757 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 certain 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 enough 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, 2020 , by class of loans: Pass Watch Special Mention Substandard Total (In thousands) Real Estate: One-to-four family $ 297,391 $ 3,455 $ 1,206 $ 636 $ 302,688 Multi-family 88,390 — 107 297 88,794 Commercial real estate 256,166 94 2,782 1,279 260,321 Construction and land 37,987 10,353 186 39 48,565 Total real estate loans 679,934 13,902 4,281 2,251 700,368 Consumer: Home equity 34,196 712 127 225 35,260 Auto and other consumer 108,858 3,806 759 771 114,194 Total consumer loans 143,054 4,518 886 996 149,454 Commercial business loans 53,894 60 570 1,329 55,853 Total loans $ 876,882 $ 18,480 $ 5,737 $ 4,576 $ 905,675 The following table represents the internally assigned grade as of December 31, 2019 , by class of loans: Pass Watch Special Mention Substandard Total (In thousands) Real Estate: One-to-four family $ 301,312 $ 2,685 $ 1,148 $ 869 $ 306,014 Multi-family 95,694 — 107 297 96,098 Commercial real estate 251,531 97 2,800 1,294 255,722 Construction and land 35,897 1,184 77 29 37,187 Total real estate loans 684,434 3,966 4,132 2,489 695,021 Consumer: Home equity 34,260 470 89 227 35,046 Auto and other consumer 107,327 3,243 594 955 112,119 Total consumer loans 141,587 3,713 683 1,182 147,165 Commercial business loans 39,653 376 263 1,279 41,571 Total loans $ 865,674 $ 8,055 $ 5,078 $ 4,950 $ 883,757 The following table represents the credit risk profile based on payment activity as of March 31, 2020 , by class of loans: Nonperforming Performing Total (In thousands) Real Estate: One-to-four family $ 467 $ 302,221 $ 302,688 Multi-family 297 88,497 88,794 Commercial real estate 106 260,215 260,321 Construction and land 28 48,537 48,565 Consumer: Home equity 133 35,127 35,260 Auto and other consumer 709 113,485 114,194 Commercial business — 55,853 55,853 Total loans $ 1,740 $ 903,935 $ 905,675 The following table represents the credit risk profile based on payment activity as of December 31, 2019 , by class of loans: Nonperforming Performing Total (In thousands) Real Estate: One-to-four family $ 698 $ 305,316 $ 306,014 Multi-family — 96,098 96,098 Commercial real estate 109 255,613 255,722 Construction and land 29 37,158 37,187 Consumer: Home equity 112 34,934 35,046 Auto and other consumer 848 111,271 112,119 Commercial business — 41,571 41,571 Total loans $ 1,796 $ 881,961 $ 883,757 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: March 31, 2020 December 31, 2019 (In thousands) Total TDR loans $ 3,523 $ 3,544 Allowance for loan losses related to TDR loans 44 41 Total nonaccrual TDR loans 81 81 There were no newly restructured and renewals or modifications of existing TDR loans that occurred during the three months ended March 31, 2020 or March 31, 2019 . There were no TDR loans which incurred a payment default within 12 months of the restructure date during the three months ended March 31, 2020 . 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 No additional funds were committed to be advanced in connection with impaired loans at March 31, 2020 . The following table presents TDR loans by class at the dates indicated by accrual and nonaccrual status. March 31, 2020 December 31, 2019 Accrual Nonaccrual Total Accrual Nonaccrual Total (In thousands) One-to-four family $ 2,273 $ 81 $ 2,354 $ 2,290 $ 81 $ 2,371 Multi-family 107 — 107 107 — 107 Commercial real estate 642 — 642 643 — 643 Home equity 157 — 157 160 — 160 Commercial business 263 — 263 263 — 263 Total TDR loans $ 3,442 $ 81 $ 3,523 $ 3,463 $ 81 $ 3,544 |