LOANS | 6. LOANS Portfolio loans consist of the following: June 30, December 31, 2019 2018 (Dollars in thousands) Commercial loans Multifamily $ 154,630 $ 134,143 Nonresidential 414,780 409,979 Land 16,955 16,830 Construction 138,043 141,686 Secured 243,044 233,306 Unsecured 6,854 6,987 Total commercial loans 974,306 942,931 Residential mortgage loans One-to four-family 942,698 927,255 Construction 46,196 43,435 Total residential mortgage loans 988,894 970,690 Consumer loans Home equity 184,676 185,661 Auto 82,715 78,686 Marine 1,097 1,206 Recreational vehicle 3,433 4,347 Other 7,610 7,141 Total consumer loans 279,531 277,041 Total loans 2,242,731 2,190,662 Less: Allowance for loan losses 20,482 20,443 Deferred loan costs, net (7,077 ) (6,623 ) Total 13,405 13,820 Loans, net $ 2,229,326 $ 2,176,842 The following tables present the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and are based on impairment method as of June 30, 2019 and December 31, 2018 and activity for the three and six months ended June 30, 2019 and 2018. Allowance For Loan Losses Commercial Loans Residential Loans Consumer Loans Total (Dollars in thousands) For the three months ended June 30, 2019 Beginning balance $ 12,114 $ 5,823 $ 2,509 $ 20,446 Provision (recovery) 263 (312 ) (2 ) (51 ) Charge-offs — (79 ) (115 ) (194 ) Recoveries 170 26 85 281 Ending balance $ 12,547 $ 5,458 $ 2,477 $ 20,482 For the six months ended June 30, 2019 Beginning balance $ 11,875 $ 5,923 $ 2,645 $ 20,443 Provision 444 (490 ) 56 10 Charge-offs (88 ) (99 ) (440 ) (627 ) Recoveries 316 124 216 656 Ending balance $ 12,547 $ 5,458 $ 2,477 $ 20,482 As of June 30, 2019 Period-end amount allocated to: Loans individually evaluated for impairment $ 857 $ 669 $ 290 1,816 Loans collectively evaluated for impairment 11,690 4,789 2,187 18,666 Ending balance $ 12,547 $ 5,458 $ 2,477 $ 20,482 Period-end balances: Loans individually evaluated for impairment 7,680 12,402 5,057 25,139 Loans collectively evaluated for impairment 966,626 976,492 274,474 2,217,592 Ending balance $ 974,306 $ 988,894 $ 279,531 $ 2,242,731 Allowance For Loan Losses Commercial Loans Residential Loans Consumer Loans Total For the three months ended June 30, 2018 Beginning balance $ 13,095 $ 5,701 $ 2,814 $ 21,610 Provision (recovery) (263 ) 180 (55 ) (138 ) Charge-offs (75 ) (96 ) (83 ) (254 ) Recoveries 51 82 54 187 Ending balance $ 12,808 $ 5,867 $ 2,730 $ 21,405 For the six months ended June 30, 2018 Beginning balance $ 12,542 $ 5,860 $ 2,800 $ 21,202 Provision 133 87 49 269 Charge-offs (75 ) (181 ) (269 ) (525 ) Recoveries 208 101 150 459 Ending balance $ 12,808 $ 5,867 $ 2,730 $ 21,405 As of December 31, 2018 Period-end amount allocated to: Loans individually evaluated for impairment $ 103 $ 798 $ 300 1,201 Loans collectively evaluated for impairment 11,772 5,125 2,345 19,242 Ending balance $ 11,875 $ 5,923 $ 2,645 $ 20,443 Period-end balances: Loans individually evaluated for impairment 2,017 13,086 5,491 20,594 Loans collectively evaluated for impairment 940,914 957,604 271,550 2,170,068 Ending balance $ 942,931 $ 970,690 $ 277,041 $ 2,190,662 The allowance for loan losses is a valuation allowance for probable incurred credit losses. Loan losses are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. Management estimates the allowance balance required based on an analysis using past loan loss experience, the nature and volume of the portfolio, information about specific borrower situations, estimated collateral values, general economic conditions in the market area and other factors. Allocations of the allowance may be made for specific loans, but the entire allowance is available for any loan that, in management’s judgment, should be charged-off. Other loans not reviewed specifically by management are evaluated as a homogenous group of loans (generally single-family residential mortgage loans and all consumer credits except marine loans) using a loss factor applied to the outstanding loan balance to determine the level of reserve required. This loss factor consists of two components, a quantitative and a qualitative component. The quantitative component is based on a historical analysis of all charged-off loans, net of recoveries. In determining the qualitative factors, consideration is given to such attributes as lending policies, economic conditions, nature and volume of the portfolio, management, loan quality trend, loan review, collateral value, concentrations, economic cycles and other external factors. As of June 30, 2019, the Company evaluated 28 quarters of net charge-off history and applied this information to the current period. This component is combined with the qualitative component to arrive at the loss factor, which is applied to the outstanding balance of homogenous loans. The following table presents loans individually evaluated for impairment by class of loans as of and for six months ended June 30, 2019: Impaired Loans (Dollars in thousands) Unpaid Principal Balance Recorded Investment Allowance for Loan Losses Allocated Average Recorded Investment Interest Income Recognized Cash Basis Income Recognized With no specific allowance recorded Commercial loans Multifamily $ 155 $ — $ — $ 57 $ 1 $ 1 Nonresidential 2,942 2,801 — 1,019 17 17 Land — — — — — — Construction 2,446 — — — — — Secured 235 — — — — — Unsecured 474 — — — — — Total commercial loans 6,252 2,801 — 1,076 18 18 Residential mortgage loans One-to four-family 5,579 4,792 — 4,672 64 55 Construction — — — — — — Total residential mortgage loans 5,579 4,792 — 4,672 64 55 Consumer loans Home equity 1,041 926 — 912 7 6 Auto 33 25 — 19 — — Marine 354 105 — 118 — — Recreational vehicle 386 49 — 95 4 4 Other — — — — — — Total consumer loans 1,814 1,105 — 1,144 11 10 Total $ 13,645 $ 8,698 $ — $ 6,892 $ 93 $ 83 With a specific allowance recorded Commercial loans Multifamily $ — $ — $ — $ — $ — $ — Nonresidential — — — 1,301 45 37 Land — — — — — — Construction — — — — — — Secured 5,654 4,879 857 1,947 137 137 Unsecured — — — — — — Total commercial loans 5,654 4,879 857 3,248 182 174 Residential mortgage loans One-to four-family 7,741 7,610 669 8,077 239 202 Construction — — — — — — Total residential mortgage loans 7,741 7,610 669 8,077 239 202 Consumer loans Home equity 3,620 3,535 274 3,680 110 97 Auto — — — — — — Marine 86 86 1 89 2 2 Recreational vehicle 343 331 15 314 11 10 Other — — — — — — Total consumer loans 4,049 3,952 290 4,083 123 109 Total 17,444 16,441 1,816 15,408 544 485 Total impaired loans $ 31,089 $ 25,139 $ 1,816 $ 22,300 $ 637 $ 568 The following table presents loans individually evaluated for impairment by class of loans as of and for six months ended June 30, 2018: Impaired Loans (Dollars in thousands) Unpaid Principal Balance Recorded Investment Allowance for Loan Losses Allocated Average Recorded Investment Interest Income Recognized Cash Basis Income Recognized With no specific allowance recorded Commercial loans Multifamily $ 28 $ — $ — $ — $ — $ — Nonresidential 630 137 — 100 4 4 Land 706 — — 6 — — Construction 2,457 — — — — — Secured 1,115 907 — 901 — — Unsecured 184 — — — — — Total commercial loans 5,120 1,044 — 1,007 4 4 Residential mortgage loans One-to four-family 6,918 5,994 — 5,602 74 58 Construction — — — — — — Total residential mortgage loans 6,918 5,994 — 5,602 74 58 Consumer loans Home equity 1,496 1,224 — 1,087 11 10 Auto 29 22 — 33 — — Marine 553 181 — 181 — — Recreational vehicle 520 100 — 122 4 4 Other 1 — — 6 — — Total consumer loans 2,599 1,527 — 1,429 15 14 Total $ 14,637 $ 8,565 $ — $ 8,038 $ 93 $ 76 With a specific allowance recorded Commercial loans Multifamily $ 422 $ 275 $ 28 $ 275 $ — $ — Nonresidential 1,235 1,232 13 1,356 52 44 Land — — — — — — Construction — — — — — — Secured 819 568 473 579 — — Unsecured — — — — — — Total commercial loans 2,476 2,075 514 2,210 52 44 Residential mortgage loans One-to four-family 8,574 8,461 834 9,793 233 195 Construction — — — — — — Total residential mortgage loans 8,574 8,461 834 9,793 233 195 Consumer loans Home equity 4,282 4,201 295 4,505 123 110 Auto — — — — — — Marine 95 95 1 97 2 2 Recreational vehicle 393 381 17 393 11 10 Other — — — — — — Total consumer loans 4,770 4,677 313 4,995 136 122 Total 15,820 15,213 1,661 16,998 421 361 Total impaired loans $ 30,457 $ 23,778 $ 1,661 $ 25,036 $ 514 $ 437 The following table presents loans individually evaluated for impairment by class of loans as of December 31, 2018: Unpaid Principal Balance Recorded Investment Allowance for Loan Losses Allocated With no specific allowance recorded Commercial loans Multifamily $ 443 $ 170 $ — Nonresidential 588 130 — Land — — — Construction 2,447 — — Secured 806 — — Unsecured 474 — — Total commercial loans 4,758 300 — Residential mortgage loans One-to four-family 5,840 4,908 — Construction — — — Total residential mortgage loans 5,840 4,908 — Consumer loans Home equity 1,084 957 — Auto 25 17 — Marine 502 145 — Recreational vehicle 592 172 — Other — — — Total consumer loans 2,203 1,291 — Total $ 12,801 $ 6,499 $ — With a specific allowance recorded Commercial loans Multifamily $ — $ — $ — Nonresidential 1,186 1,186 12 Land — — — Construction — — — Secured 989 531 91 Unsecured — — — Total commercial loans 2,175 1,717 103 Residential mortgage loans One-to four-family 8,298 8,178 798 Construction — — — Total residential mortgage loans 8,298 8,178 798 Consumer loans Home equity 3,925 3,842 283 Auto — — — Marine 91 91 1 Recreational vehicle 279 267 16 Other — — — Total consumer loans 4,295 4,200 300 Total 14,768 14,095 1,201 Total impaired loans $ 27,569 $ 20,594 $ 1,201 The following table presents loans individually evaluated for impairment by class of loans for the three months ended June 30, 2019: Average Recorded Investment Interest Income Recognized Cash Basis Income Recognized With no specific allowance recorded Commercial loans Multifamily $ — $ — Nonresidential 1,464 16 16 Land — — — Construction — — — Secured — — — Unsecured — — — Total commercial loans 1,464 16 16 Residential mortgage loans One-to four-family 4,554 35 35 Construction — — — Total residential mortgage loans 4,554 35 35 Consumer loans Home equity 889 6 6 Auto 20 — — Marine 105 — — Recreational vehicle 56 2 2 Other — — — Total consumer loans 1,070 8 8 Total $ 7,088 $ 59 $ 59 With a specific allowance recorded Commercial loans Multifamily $ — $ — $ — Nonresidential 1,359 — — Land — — — Construction — — — Secured 2,656 134 134 Unsecured — — — Total commercial loans 4,015 134 134 Residential mortgage loans One-to four-family 8,027 92 91 Construction — — — Total residential mortgage loans 8,027 92 91 Consumer loans Home equity 3,600 49 48 Auto — — — Marine 88 1 1 Recreational vehicle 338 5 5 Other — — — Total consumer loans 4,026 55 54 Total 16,068 281 279 Total impaired loans $ 23,156 $ 340 $ 338 The following table presents loans individually evaluated for impairment by class of loans for the three months ended June 30, 2018: Average Recorded Investment Interest Income Recognized Cash Basis Income Recognized With no specific allowance recorded Commercial loans Multifamily $ — $ — $ — Nonresidential 78 1 1 Land 5 — — Construction — — — Secured 905 — — Unsecured — — — Total commercial loans 988 1 1 Residential mortgage loans One-to four-family 5,683 30 30 Construction — — — Total residential mortgage loans 5,683 30 30 Consumer loans Home equity 1,101 6 6 Auto 42 — — Marine 181 — — Recreational vehicle 108 2 2 Other 8 — — Total consumer loans 1,440 8 8 Total $ 8,111 $ 39 $ 39 With a specific allowance recorded Commercial loans Multifamily $ 275 $ — $ — Nonresidential 1,323 22 22 Land — — — Construction — — — Secured 563 — — Unsecured — — — Total commercial loans 2,161 22 22 Residential mortgage loans One-to four-family 9,340 98 96 Construction — — — Total residential mortgage loans 9,340 98 96 Consumer loans Home equity 4,338 57 56 Auto — — — Marine 96 1 1 Recreational vehicle 387 5 5 Other — — — Total consumer loans 4,821 63 62 Total 16,322 183 180 Total impaired loans $ 24,433 $ 222 $ 219 Home Savings reclassifies a collateralized mortgage loan and a consumer loan secured by real estate to real estate owned and other repossessed assets once it has either obtained legal title to the real estate collateral or the borrower voluntarily conveys all interest in the real property to the Bank to satisfy the loan through a deed in lieu of foreclosure or similar legal agreement. The table below presents loans that are in the process of foreclosure at June 30, 2019 and December 31, 2018, but legal title, deed in lieu of foreclosure or similar legal agreement to the property has not yet been obtained: June 30, 2019 December 31, 2018 Unpaid Principal Balance Recorded Investment Unpaid Principal Balance Recorded Investment (Dollars in thousands) (Dollars in thousands) Mortgage loans in process of foreclosure $ 3,847 $ 3,686 $ 3,687 $ 3,636 Consumer loans in process of foreclosure 358 350 700 685 The following table presents the recorded investment in nonaccrual loans and loans past due over 90 days and still on accrual by class of loans as of June 30, 2019: Nonaccrual Loans and Loans Past Due Over 90 Days and Still Accruing As of June 30, 2019 Nonaccrual Loans past due over 90 days and still accruing (Dollars in thousands) Commercial loans Multifamily $ — $ — Nonresidential 2,688 — Land — — Construction — — Secured 4,678 — Unsecured — — Total commercial loans 7,366 — Residential mortgage loans One-to four-family 4,365 — Construction — — Total residential mortgage loans 4,365 — Consumer Loans Home equity 936 — Auto 57 — Marine 105 — Recreational vehicle 34 — Other 9 — Total consumer loans 1,141 — Total nonaccrual loans and loans past due over 90 days and still accruing $ 12,872 $ — The following table presents the recorded investment in nonaccrual loans and loans past due over 90 days and still on accrual by class of loans as of December 31, 2018: Nonaccrual Loans and Loans Past Due Over 90 Days and Still Accruing As of December 31, 2018 Nonaccrual Loans past due over 90 days and still accruing (Dollars in thousands) Commercial loans Multifamily $ 171 $ — Nonresidential 13 — Land — — Construction — — Secured 531 — Unsecured — — Total commercial loans 715 — Residential mortgage loans One-to four-family 4,170 — Construction — — Total residential mortgage loans 4,170 — Consumer Loans Home equity 1,223 — Auto 131 — Marine 145 — Recreational vehicle 145 — Other 10 — Total consumer loans 1,654 — Total nonaccrual loans and loans past due over 90 days and still accruing $ 6,539 $ — The following table presents an age analysis of past-due loans, segregated by class of loans as of June 30, 2019: Past Due Loans (Dollars in thousands) 30-59 Days Past Due 60-89 Days Past Due Greater than 90 Days Past Due Total Past Due Current Loans Total Loans Commercial loans Multifamily $ — $ — $ — $ — $ 154,630 $ 154,630 Nonresidential 104 1,681 — 1,785 412,995 414,780 Land — — — — 16,955 16,955 Construction — — — — 138,043 138,043 Secured 24 44 427 495 242,549 243,044 Unsecured — — — — 6,854 6,854 Total commercial loans 128 1,725 427 2,280 972,026 974,306 Residential mortgage loans One-to four-family 3,059 765 3,867 7,691 935,007 942,698 Construction — — — — 46,196 46,196 Total residential mortgage loans 3,059 765 3,867 7,691 981,203 988,894 Consumer Loans: Home equity 1,166 319 893 2,378 182,298 184,676 Automobile 254 49 57 360 82,355 82,715 Marine — — 105 105 992 1,097 Recreational vehicle 59 73 34 166 3,267 3,433 Other 31 11 9 51 7,559 7,610 Total consumer loans 1,510 452 1,098 3,060 276,471 279,531 Total loans $ 4,697 $ 2,942 $ 5,392 $ 13,031 $ 2,229,700 $ 2,242,731 The following table presents an age analysis of past-due loans, segregated by class of loans as of December 31, 2018: Past Due Loans (Dollars in thousands) 30-59 Days Past Due 60-89 Days Past Due Greater than 90 Days Past Due Total Past Due Current Loans Total Loans Commercial loans Multifamily $ — $ — $ 171 $ 171 $ 133,972 $ 134,143 Nonresidential — — — — 409,979 409,979 Land — — — — 16,830 16,830 Construction — — — — 141,686 141,686 Secured 195 — 531 726 232,580 233,306 Unsecured — — — — 6,987 6,987 Total commercial loans 195 — 702 897 942,034 942,931 Residential mortgage loans One-to four-family 2,139 882 3,470 6,491 920,764 927,255 Construction — — — — 43,435 43,435 Total residential mortgage loans 2,139 882 3,470 6,491 964,199 970,690 Consumer Loans: Home equity 658 295 1,147 2,100 183,561 185,661 Automobile 283 112 131 526 78,160 78,686 Marine — — 145 145 1,061 1,206 Recreational vehicle 548 — 145 693 3,654 4,347 Other 33 — 10 43 7,098 7,141 Total consumer loans 1,522 407 1,578 3,507 273,534 277,041 Total loans $ 3,856 $ 1,289 $ 5,750 $ 10,895 $ 2,179,767 $ 2,190,662 As of June 30, 2019 and December 31, 2018, the Company has a recorded investment in troubled debt restructurings of $15.3 million and $16.6 million, respectively. The Company allocated $989,000 of specific allowance for those loans at June 30, 2019 and $1.1 million at December 31, 2018. The Company has committed to lend, to existing troubled debt restructuring relationships, additional amounts totaling up to $45,000 and $41,000 at June 30, 2019 and December 31, 2018, respectively. The following table presents loans by class modified as troubled debt restructurings that occurred during the three months ended June 30, 2019: Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Recorded Investment (In thousands) Commercial loans Multifamily — $ — $ — Nonresidential — — — Land — — — Construction — — — Secured 1 824 824 Unsecured — — — Total commercial loans 1 824 824 Residential mortgage loans One-to four-family — — — Construction — — — Total residential mortgage loans — — — Consumer loans Home equity 1 40 44 Auto — — — Marine — — — Recreational vehicle — — — Other — — — Total consumer loans 1 40 44 Total restructured loans 2 $ 864 $ 868 The troubled debt restructurings described above increased the allowance for loan losses by $1,000 and resulted in no charge-offs during the three months ended June 30, 2019. The following table presents loans by class modified as troubled debt restructurings that occurred during the six months ended June 30, 2019: Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Recorded Investment (In thousands) Commercial loans Multifamily — $ — $ — Nonresidential — — — Land — — — Construction — — — Secured 1 824 824 Unsecured — — — Total commercial loans 1 824 824 Residential mortgage loans One-to four-family 1 335 355 Construction — — — Total residential mortgage loans 1 335 355 Consumer loans Home equity 1 40 44 Auto — — — Marine — — — Recreational vehicle Other — — — Total consumer loans 1 40 44 Total restructured loans 3 $ 1,199 $ 1,223 The troubled debt restructurings described above increased the allowance for loan losses by $1,000 and resulted in no charge-offs during the six months ended June 30, 2019. The following table presents loans by class modified as troubled debt restructurings that occurred during the three months ended June 30, 2018: Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Recorded Investment (Dollars in thousands) Commercial loans Multifamily — $ — $ — Nonresidential — — — Land — — — Construction — — — Secured — — — Unsecured — — — Total commercial loans — — — Residential mortgage loans One-to four-family 3 521 547 Construction — — — Total residential mortgage loans 3 521 547 Consumer loans Home equity 2 113 113 Auto — — — Marine — — — Recreational vehicle — — — Other — — — Total consumer loans 2 113 113 Total restructured loans 5 $ 634 $ 660 The troubled debt restructurings described above increased the allowance for loans losses by $3,000 and resulted in no charge-offs during the three months ended June 30, 2018. The following table presents loans by class modified as troubled debt restructurings that occurred during the six months ended June 30, 2018: Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Recorded Investment (Dollars in thousands) Commercial loans Multifamily — $ — $ — Nonresidential 1 124 124 Land — — — Construction — — — Secured — — — Unsecured — — — Total commercial loans 1 124 124 Residential mortgage loans One-to four-family 3 521 547 Construction — — — Total residential mortgage loans 3 521 547 Consumer loans Home equity 2 113 113 Auto — — — Marine — — — Recreational vehicle — — — Other — — — Total consumer loans 2 113 113 Total restructured loans 6 $ 758 $ 784 The troubled debt restructurings described above increased the allowance for loans losses by $3,000 and resulted in no charge-offs during the six months ended June 30, 2018. There were no loans modified as troubled debt restructurings for which there was a payment default within a twelve-month cycle following the modification during the period ended June 30, 2019. The following table presents loans by class modified as troubled debt restructurings for which there was a payment default within a twelve month cycle following the modification during the period ended June 30, 2018: Number of loans Recorded Investment (Dollars in thousands) Commercial loans Multifamily — $ — Nonresidential 1 121 Land — — Construction — — Secured — — Unsecured — — Total commercial loans 1 121 Residential mortgage loans One-to four-family 2 357 Construction — — Total residential mortgage loans 2 357 Consumer loans Home equity — — Auto — — Marine — — Recreational vehicle — — Other — — Total consumer loans — — Total restructured loans 3 $ 478 The troubled debt restructurings that subsequently defaulted described above resulted in no charge-offs during the three and six months ended June 30, 2018, and had no effect on the provision for loan losses. A troubled debt restructuring is considered to be in payment default once it is 30 days contractually past due under the modified terms. In order to determine whether a borrower is experiencing financial difficulty, an evaluation is performed of the probability that the borrower will be in payment default on any of its debt in the foreseeable future without the modification. This evaluation is performed in accordance with the Company’s internal underwriting policy. Credit Quality Indicators: The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt, such as: current financial information, historical payment experience, credit documentation, public information and current economic trends. The Company analyzes loans individually by classifying the loans as to credit risk. This analysis includes homogeneous loans past due 90 cumulative days, and all non-homogeneous loans, including commercial loans and commercial real estate loans. Smaller balance homogeneous loans are primarily monitored by payment status. Asset quality ratings are divided into two groups: Pass (unclassified) and Classified. Within the unclassified group, certain loans that display potential weakness are risk rated as special mention. In addition, there are three classified risk ratings: substandard, doubtful and loss. These specific credit risk categories are defined as follows: Special Mention. Loans classified as special mention have potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date. Substandard. Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Doubtful. Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. Loss. Loans classified as loss are considered uncollectible and of such little value, that continuance as assets is not warranted. Although there may be a chance of recovery on these assets, it is not practical or desirable to defer writing off the asset. The Company monitors loans on a monthly basis to determine if they should be included in one of the categories listed above. All impaired non-homogeneous credits classified as substandard, doubtful or loss are analyzed on an individual basis for a specific reserve requirement. This analysis is performed on each individual credit at least annually or more frequently if warranted. As of June 30, 2019 and December 31, 2018, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows: June 30, 2019 (Dollars in thousands) Unclassified Classified Unclassified Special Mention Substandard Doubtful Loss Total Classified Total Loans Commercial Loans Multifamily $ 142,730 $ 10,824 $ 1,076 $ — $ — $ 1,076 $ 154,630 Nonresidential 389,262 15,346 10,172 — — 10,172 414,780 Land 16,955 — — — — — 16,955 Construction 135,658 2,385 — — — — 138,043 Secured 220,556 3,065 19,423 — — 19,423 243,044 Unsecured 6,771 — 83 — — 83 6,854 Total commercial loans 911,932 31,620 30,754 — — 30,754 974,306 Residential mortgage loans One-to four-family 937,532 96 5,070 — — 5,070 942,698 Construction 46,196 — — — — — 46,196 Total residential mortgage loans 983,728 96 5,070 — — 5,070 988,894 Consumer Loans Home equity 183,700 — 976 — — 976 184,676 Auto 82,658 — 57 — — 57 82,715 Marine 992 — 105 — — 105 1,097 Recreational vehicle 3,399 — 34 — — 34 3,433 Other 7,597 — 13 — — 13 7,610 Total consumer loans 278,346 — 1,185 — — 1,185 279,531 Total loans $ 2,174,006 $ 31,716 $ 37,009 $ — $ — $ 37,009 $ 2,242,731 December 31, 2018 (Dollars in thousands) Unclassified Classified Unclassified Special Mention Substandard Doubtful Loss Total Classified Total Loans Commercial Loans Multifamily $ 133,972 $ — $ 171 $ — $ — $ 171 $ 134,143 Nonresidential 378,160 18,420 13,399 — — 13,399 409,979 Land 16,830 — — — — — 16,830 Construction 139,540 2,146 — — — — 141,686 Secured 214,924 2,184 16,198 — — 16,198 233,306 Unsecured 6,894 — 93 — — 93 6,987 Total commercial loans 890,320 22,750 29,861 — — 29,861 942,931 Residential mortgage loans One-to four-family 921,694 591 4,970 — — 4,970 927,255 Construction 43,435 — — — — — 43,435 Total residential mortgage loans 965,129 591 4,970 — — 4,970 970,690 Consumer Loans Home equity 184,438 — 1,223 — — 1,223 185,661 Auto 78,551 — 135 — — 135 78,686 Marine 1,061 — 145 — — 145 1,206 Recreational vehicle 4,221 — 126 — — 126 4,347 Other 7,131 — 10 — — 10 7,141 Total consumer loans 275,402 — 1,639 — — 1,639 277,041 Total loans $ 2,130,851 $ 23,341 $ 36,470 $ — $ — $ 36,470 $ 2,190,662 Purchased Credit Impaired Loans: The Company has purchased loans for which there was, at acquisition, evidence of deterioration of credit quality since origination and it was probable, at acquisition, that all contractually required payments would not be collected. As of June 30, 2019 and December 31, 2018 there were no outstanding purchase credit impaired loans. Accretable yield, or income expected to be collected, is as follows: Three Months Ended Three Months Ended For the six months ended For the six months ended June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 (Dollars in thousands) (Dollars in thousands) Beginning of period $ — $ 110 $ — $ 110 Accretion of income — 6 — 6 Balance at end of period $ — $ 104 $ — $ 104 For the purchased credit impaired loans disclosed above, there was no change in the allowance for loan losses for the three and six months ended June 30, 2019 and 2018. Income is not recognized on purchased credit impaired loans if the Company cannot reasonably estimate cash flows expected to be collected. The carrying amounts of such loans are as follows: June 30, 2019 June 30, 2018 (Dollars in thousands) Loans at beginning of period $ — $ 1,194 Loans purchased during the period — — Loans at end of period — 1,091 |