Loans Receivable Held for Investment (Tables)

12 Months Ended

Dec. 31, 2012

Loans at year-end were as follows:


	December 31,
	2012			2011
	(In thousands)
Real estate:
One-to-four units	$	57,733		$	76,682
Five or more units		83,350			108,161
Commercial real estate		41,124			54,259
Church		76,254			89,099
Construction		735			3,790
Commercial:
Sports		1,711			1,996
Other		2,115			4,900
Consumer:
Loan on savings		0			821
Other		104			108

Total gross loans receivable		263,126			339,816
Less:
Loans in process		74			202
Net deferred loan fees (costs)		(557	)		(473	)
Unamortized discounts		17			18
Allowance for loan losses		11,869			17,299

Loans receivable, net	$	251,723		$	322,770

Allowance for Loan Losses by Portfolio Segment

The following tables present the activity in the allowance for loan losses by portfolio segment for the years ended December 31, 2012 and 2011:


	For the year ended December 31, 2012
	One-to-four units			Five or more units			Commercial real estate			Church			Construction			Commercial			Consumer			Total
	(In thousands)
Beginning balance	$	4,855		$	2,972		$	3,108		$	5,742		$	249		$	247		$	126		$	17,299
Provision for loan losses		2,318			(747	)		61			415			(241	)		(561	)		(55	)		1,190
Recoveries		25			1			60			15			0			412			7			520
Loans charged off		(5,138	)		(104	)		(544	)		(1,354	)		0			0			0			(7,140	)

Ending balance	$	2,060		$	2,122		$	2,685		$	4,818		$	8		$	98		$	78		$	11,869


	For the year ended December 31, 2011
	One-to-four units			Five or more units			Commercial real estate			Church			Construction		Commercial			Consumer			Total
	(In thousands)
Beginning balance	$	4,579		$	2,469		$	3,493		$	6,909		$	74	$	1,300		$	1,634		$	20,458
Provision for loan losses		1,172			939			4,144			2,616			175		2,796			311			12,153
Recoveries		0			2			15			4			0		67			24			112
Loans charged off		(896	)		(438	)		(4,544	)		(3,787	)		0		(3,916	)		(1,843	)		(15,424	)

Ending balance	$	4,855		$	2,972		$	3,108		$	5,742		$	249	$	247		$	126		$	17,299

Allowance for Loan Losses and Recorded Investment in Loans By Portfolio Segment and Based on Impairment Method

The following tables present the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of December 31, 2012 and 2011:


	December 31, 2012
	One-to- four units		Five or more units		Commercial real estate		Church		Construction		Commercial		Consumer		Total
	(In thousands)
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	719	$	125	$	543	$	1,276	$	0	$	0	$	69	$	2,732
Collectively evaluated for impairment		1,341		1,997		2,142		3,542		8		98		9		9,137

Total ending allowance balance	$	2,060	$	2,122	$	2,685	$	4,818	$	8	$	98	$	78	$	11,869

Loans:
Loans individually evaluated for impairment	$	4,576	$	3,766	$	10,364	$	25,328	$	273	$	0	$	69	$	44,376
Loans collectively evaluated for impairment		53,157		79,584		30,760		50,926		462		3,826		35		218,750

Total ending loans balance	$	57,733	$	83,350	$	41,124	$	76,254	$	735	$	3,826	$	104	$	263,126


	December 31, 2011
	One-to- four units		Five or more units		Commercial real estate		Church		Construction		Commercial		Consumer		Total
	(In thousands)
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	1,678	$	161	$	255	$	1,683	$	97	$	0	$	70	$	3,944
Collectively evaluated for impairment		3,177		2,811		2,853		4,059		152		247		56		13,355

Total ending allowance balance	$	4,855	$	2,972	$	3,108	$	5,742	$	249	$	247	$	126	$	17,299

Loans:
Loans individually evaluated for impairment	$	13,246	$	3,837	$	7,396	$	31,494	$	302	$	0	$	70	$	56,345
Loans collectively evaluated for impairment		63,436		104,324		46,863		57,605		3,488		6,896		859		283,471

Total ending loans balance	$	76,682	$	108,161	$	54,259	$	89,099	$	3,790	$	6,896	$	929	$	339,816

Impaired Loans by Class of Loans

The following table presents information related to loans individually evaluated for impairment by class of loans as of December 31, 2012 and 2011:


	December 31, 2012						December 31, 2011
	Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses Allocated		Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses Allocated
	(In thousands)
With no related allowance recorded:
One-to-four units	$	1,986	$	1,484	$	0	$	6,904	$	4,636	$	0
Five or more units		2,038		1,819		0		2,946		2,871		0
Commercial real estate		10,184		6,423		0		9,105		5,449		0
Church		18,664		15,689		0		24,680		20,560		0
Construction		279		273		0		0		0		0
Commercial:
Sports		3,888		0		0		4,000		0		0
Other		0		0		0		285		0		0
With an allowance recorded:
One-to-four units		3,092		3,092		719		8,610		8,610		1,678
Five or more units		1,947		1,947		125		966		966		161
Commercial real estate		3,941		3,941		543		1,947		1,947		255
Church		9,677		9,639		1,276		10,934		10,934		1,683
Construction		0		0		0		302		302		97
Commercial:
Other		69		69		69		70		70		70

Total	$	55,765	$	44,376	$	2,732	$	70,749	$	56,345	$	3,944

Average of Individually Impaired Loans by Class of Loans and Related Interest Income

The following table presents monthly average of individually impaired loans by class of loans and the related interest income for the years ended December 31, 2012 and 2011.


	For the year ended December 31, 2012				For the year ended December 31, 2011
	Average Recorded Investment		Cash Basis Interest Income Recognized		Average Recorded Investment		Cash Basis Interest Income Recognized

	(In thousands)
One-to-four units	$	13,112	$	528	$	10,836	$	486
Five or more units		2,964		86		3,199		153
Commercial real estate		7,922		230		11,687		483
Church		30,802		967		30,148		1,445
Construction		290		12		314		23
Commercial:
Sports		0		0		2,566		0
Other		0		0		297		16
Consumer:
Loan on savings		0		0		796		0
Other		70		5		0		0

Total	$	55,160	$	1,828	$	59,843	$	2,606

Recorded Investment in Nonaccrual Loans by Class of Loans

The following table presents the recorded investment in non-accrual loans by class of loans as of December 31, 2012 and 2011:


	December 31,
	2012		2011
	(In thousands)
Loans receivable held for sale:
One-to-four units	$	6,656	$	0
Five or more units		1,956		2,496
Commercial real estate		0		338
Church		1,556		2,778
Loans receivable held for investment:
One-to-four units		1,489		7,974
Five or more units		2,312		3,450
Commercial real estate		7,090		5,449
Church		15,689		21,891
Construction		273		302
Consumer:
Other		69		70

Total non-accrual loans	$	37,090	$	44,748

Aging of Recorded Investment in Past Due Loans, Including Loans Held For Sale

The following tables present the aging of the recorded investment in past due loans, including loans held for sale, as of December 31, 2012 and 2011 by class of loans:


	December 31, 2012
	30-59 Days Past Due		60-89 Days Past Due		Greater than 90 Days Past Due		Total Past Due		Total Loans Not Past Due
	(In thousands)
Loans receivable held for sale:
One-to-four units	$	0	$	871	$	6,656	$	7,527	$	389
Five or more units		0		0		1,956		1,956		3,839
Commercial real estate		0		0		0		0		1,358
Church		0		0		1,556		1,556		2,744
Loans receivable held for investment:
One-to-four units		1,077		0		1,489		2,566		55,167
Five or more units		587		554		2,312		3,453		79,897
Commercial real estate		0		0		7,090		7,090		34,034
Church		1,617		0		15,689		17,306		58,948
Construction		0		0		273		273		462
Commercial:
Sports		0		0		0		0		1,711
Other		0		0		0		0		2,115
Consumer:
Other		0		0		69		69		35

Total	$	3,281	$	1,425	$	37,090	$	41,796	$	240,699


	December 31, 2011
	30-59 Days Past Due		60-89 Days Past Due		Greater than 90 Days Past Due		Total Past Due		Total Loans Not Past Due
					(In thousands)
Loans receivable held for sale:
Five or more units	$	0	$	0	$	2,496	$	2,496	$	3,899
Commercial real estate		0		0		338		338		1,374
Church		0		0		2,778		2,778		2,772
Loans receivable held for investment:
One to four units		921		2,464		7,974		11,359		65,323
Five or more units		1,324		63		3,450		4,837		103,324
Commercial real estate		2,247		525		5,449		8,221		46,038
Church		2,647		1,440		21,891		25,978		63,121
Construction		0		264		302		566		3,224
Commercial:
Sports		0		0		0		0		1,996
Other		125		0		0		125		4,775
Consumer:
Loan on savings		0		0		0		0		821
Other		0		0		70		70		38

Total	$	7,264	$	4,756	$	44,748	$	56,768	$	296,705

Loans by Class Modified as Troubled Debt Restructurings

The following table presents loans by class modified as troubled debt restructurings that occurred during the years ended December 31, 2012 and 2011:


	Year Ended December 31, 2012						Year Ended December 31, 2011
	Number of Loans		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment		Number of Loans		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment
	(Dollars in thousands)
One-to-four units		2	$	115	$	115		9	$	7,711	$	7,745
Five or more units		6		2,205		2,351		1		494		459
Commercial real estate		6		4,515		4,716		0		0		0
Church		13		7,036		7,123		12		9,211		8,681
Other		1		0		0		1		70		70

Total		28	$	13,871	$	14,305		23	$	17,486	$	16,955

Loans by Class Modified as Troubled Debt Restructurings

The following table presents loans by class modified as troubled debt restructurings for which there was a payment default within twelve months following the modification during the years ended December 31, 2012 and 2011:


	Year Ended December 31, 2012				Year Ended December 31, 2011
	Number of Loans		Pre-Modification Outstanding Recorded Investment		Number of Loans		Pre-Modification Outstanding Recorded Investment
	(Dollars in thousands)
Commercial real estate		0	$	0		1	$	418
Church		4		3,211		0		0

Total		4	$	3,211		1	$	418

Summary of Loan Risk Rating by Category

Based on the most recent analysis performed, the risk category of loans by class of loans as of December 31, 2012 and December 31, 2011 was as follows:


	December 31, 2012
	Pass		Special Mention		Substandard		Doubtful		Loss
					(In thousands)
One-to-four units	$	55,613	$	631	$	1,489	$	0	$	0
Five or more units		73,673		5,250		4,427		0		0
Commercial real estate		25,605		2,541		12,921		57		0
Church		33,532		19,502		23,220		0		0
Construction		462		0		273		0		0
Commercial:
Sports		0		1,711		0		0		0
Other		1,877		141		97		0		0
Consumer:
Other		35		0		69		0		0

Total	$	190,797	$	29,776	$	42,496	$	57	$	0


	December 31, 2011
	Pass		Special Mention		Substandard		Doubtful		Loss
					(In thousands)
One-to-four units	$	63,483	$	3,044	$	9,846	$	309	$	0
Five or more units		95,621		7,450		4,939		151		0
Commercial real estate		36,098		6,721		11,364		76		0
Church		37,532		13,100		37,873		594		0
Construction		500		2,988		302		0		0
Commercial:
Sports		0		1,996		0		0		0
Other		2,363		2,369		168		0		0
Consumer:
Loan on savings		821		0		0		0		0
Other		108		0		0		0		0

Total	$	236,526	$	37,668	$	64,492	$	1,130	$	0