Loans Receivable, Net (Tables)

9 Months Ended

Sep. 30, 2012

Summary of Loans Receivable Net

Loans receivable, net at September 30, 2012 and December 31, 2011 consisted of the following (in thousands):

	September 30, 2012			December 31, 2011
Real estate:
One-to-four family	$	822,049		$	873,253
Commercial real estate, multi family and land		476,513			460,725
Residential construction		8,204			6,657
Consumer		201,443			192,918
Commercial		54,673			45,889
Total loans		1,562,882			1,579,442
Loans in process		(3,133	)		(2,559	)
Deferred origination costs, net		4,182			4,366
Allowance for loan losses		(18,291	)		(18,230	)
Loans receivable, net	$	1,545,640		$	1,563,019

Analysis of the Allowance for Loan Losses

An analysis of the allowance for loan losses for the three and nine months ended September 30, 2012 and 2011 is as follows (in thousands):

	Three months ended September 30,						Nine months ended September 30,
	2012			2011			2012			2011
Balance at beginning of period	$	17,657		$	21,454		$	18,230		$	19,700
Provision charged to operations		1,400			1,850			4,800			5,750
Charge-offs		(1,694	)		(403	)		(6,037	)		(2,565	)
Recoveries		928			4			1,298			20
Balance at end of period	$	18,291		$	22,905		$	18,291		$	22,905

Allowance for Loan Loses and the Recorded Investment in Loans by Portfolio Segment and Based on Impairment Method

The following table presents an analysis of the allowance for loan losses for the three and nine months ended September 30, 2012 and 2011 and the balance in the allowance for loan loses and the recorded investment in loans by portfolio segment and based on impairment method as of September 30, 2012 and December 31, 2011 (in thousands):

	Residential Real Estate			Commercial Real Estate			Consumer			Commercial			Unallocated			Total
For the three months ended September 30, 2012
Allowance for loan losses:
Balance at beginning of period	$	4,768		$	8,614		$	1,648		$	1,110		$	1,517		$	17,657
Provision (benefit) charged to operations		609			(90	)		963			(577	)		495			1,400
Charge-offs		(1,126	)		—			(491	)		(77	)		—			(1,694	)
Recoveries		210			—			104			614			—			928
Balance at end of period	$	4,461		$	8,524		$	2,224		$	1,070		$	2,012		$	18,291
For the three months ended September 30, 2011
Allowance for loan losses:
Balance at beginning of period	$	6,469		$	7,229		$	4,277		$	945		$	2,534		$	21,454
Provision (benefit) charged to operations		1,280			1,220			118			12			(780	)		1,850
Charge-offs		(217	)		(180	)		(6	)		—			—			(403	)
Recoveries		—			—			—			4			—			4
Balance at end of period	$	7,532		$	8,269		$	4,389		$	961		$	1,754		$	22,905
For the nine months ended September 30, 2012
Allowance for loan losses:
Balance at beginning of period	$	5,370		$	8,474		$	1,461		$	900		$	2,025		$	18,230
Provision (benefit) charged to operations		2,710			(57	)		2,533			(373	)		(13	)		4,800
Charge-offs		(4,030	)		(47	)		(1,882	)		(78	)		—			(6,037	)
Recoveries		411			154			112			621			—			1,298
Balance at end of period	$	4,461		$	8,524		$	2,224		$	1,070		$	2,012		$	18,291
For the nine months ended September 30, 2011
Allowance for loan losses:
Balance at beginning of period	$	5,977		$	6,837		$	3,264		$	962		$	2,660		$	19,700
Provision (benefit) charged to operations		2,216			3,129			1,180			131			(906	)		5,750
Charge-offs		(672	)		(1,697	)		(56	)		(140	)		—			(2,565	)
Recoveries		11			—			1			8			—			20
Balance at end of period	$	7,532		$	8,269		$	4,389		$	961		$	1,754		$	22,905
September 30, 2012
Allowance for loan losses:
Ending allowance balance attributed to loans:
Individually evaluated for impairment	$	203		$	1,952		$	339		$	—		$	—		$	2,494
Collectively evaluated for impairment		4,258			6,572			1,885			1,070			2,012			15,797
Total ending allowance balance	$	4,461		$	8,524		$	2,224		$	1,070		$	2,012		$	18,291
Loans:
Loans individually evaluated for impairment	$	21,612		$	11,557		$	2,101		$	294		$	—		$	35,564
Loans collectively evaluated for impairment		808,641			464,956			199,342			54,379			—			1,527,318
Total ending loan balance	$	830,253		$	476,513		$	201,443		$	54,673		$	—		$	1,562,882
December 31, 2011
Allowance for loan losses:
Ending allowance balance attributed to loans:
Individually evaluated for impairment	$	45		$	1,978		$	142		$	—		$	—		$	2,165
Collectively evaluated for impairment		5,325			6,496			1,319			900			2,025			16,065
Total ending allowance balance	$	5,370		$	8,474		$	1,461		$	900		$	2,025		$	18,230
Loans:
Loans individually evaluated for impairment	$	16,902		$	10,178		$	859		$	552		$	—		$	28,491
Loans collectively evaluated for impairment		863,008			450,547			192,059			45,337			—			1,550,951
Total ending loan balance	$	879,910		$	460,725		$	192,918		$	45,889		$	—		$	1,579,442

Summary of Impaired Loans

A summary of impaired loans at September 30, 2012 and December 31, 2011 is as follows (in thousands):

	September 30, 2012		December 31, 2011
Impaired loans with no allocated allowance for loan losses	$	22,378	$	19,186
Impaired loans with allocated allowance for loan losses		13,186		9,305
	$	35,564	$	28,491
Amount of the allowance for loan losses allocated	$	2,494	$	2,165

Summary of Loans Individually Evaluated for Impairment by Class of Loans

The summary of loans individually evaluated for impairment by class of loans as of September 30, 2012 and December 31, 2011 and for the three and nine months ended September 30, 2012 and 2011 follows (in thousands):

	Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses Allocated
As of September 30, 2012
With no related allowance recorded:
Residential real estate:
Originated by Bank	$	10,568	$	10,343	$	—
Originated by mortgage company		7,021		6,854		—
Originated by mortgage company – non-prime		2,064		1,773		—
Commercial real estate:
Commercial		1,707		1,701		—
Construction and land		—		—		—
Consumer		1,442		1,413		—
Commercial		295		294		—
	$	23,097	$	22,378	$	—
With an allowance recorded:
Residential real estate:
Originated by Bank	$	1,695	$	1,638	$	119
Originated by mortgage company		405		405		83
Originated by mortgage company – non-prime		720		599		1
Commercial real estate:
Commercial		10,025		9,856		1,952
Construction and land		—		—		—
Consumer		688		688		339
Commercial		—		—		—
	$	13,533	$	13,186	$	2,494
As of December 31, 2011
With no related allowance recorded:
Residential real estate:
Originated by Bank	$	9,491	$	9,247	$	—
Originated by mortgage Company		4,803		4,771		—
Originated by mortgage company – non-prime		2,794		2,494		—
Commercial real estate:
Commercial		1,438		1,405		—
Construction and land		—		—		—
Consumer		742		717		—
Commercial		558		552		—
	$	19,826	$	19,186	$	—
With an allowance recorded:
Residential real estate:
Originated by Bank	$	—	$	—	$	—
Originated by mortgage Company		402		390		45
Originated by mortgage company – non-prime		—		—		—
Commercial real estate:
Commercial		9,105		8,773		1,978
Construction and land		—		—		—
Consumer		142		142		142
Commercial		—		—		—
	$	9,649	$	9,305	$	2,165

	Three months ended September 30,
	2012				2011
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:
Residential real estate:
Originated by Bank	$	10,440	$	125	$	9,438	$	112
Originated by mortgage Company		6,824		68		5,214		72
Originated by mortgage company – non-prime		1,960		1		—		—
Commercial real estate:
Commercial		1,710		22		5,464		88
Construction and land		—		—		—		—
Consumer		1,406		19		698		10
Commercial		294		3		302		—
	$	22,634	$	238	$	21,116	$	282
With an allowance recorded:
Residential real estate:
Originated by Bank	$	1,605	$	14	$	566	$	—
Originated by mortgage Company		405		7		—		—
Originated by mortgage company – non-prime		636		—		2,742		—
Commercial real estate:
Commercial		9,834		89		5,113		44
Construction and land		—		—		—		—
Consumer		688		10		65		5
Commercial		—		—		—		—
	$	13,168	$	120	$	8,486	$	49

	Nine months ended September 30,
	2012				2011
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:
Residential real estate:
Originated by Bank	$	9,291	$	324	$	9,559	$	296
Originated by mortgage Company		5,686		178		5,207		191
Originated by mortgage company – non-prime		1,832		3		—		—
Commercial real estate:
Commercial		1,643		66		4,328		128
Construction and land		—		—		—		—
Consumer		952		38		704		23
Commercial		296		7		134		—
	$	19,700	$	616	$	19,932	$	638
With an allowance recorded:
Residential real estate:
Originated by Bank	$	1,050	$	61	$	378	$	—
Originated by mortgage Company		135		7		—		—
Originated by mortgage company – non-prime		674		—		2,608		—
Commercial real estate:
Commercial		9,255		277		2,273		74
Construction and land		—		—		1,142		—
Consumer		317		11		131		5
Commercial		—		—		—		—
	$	11,431	$	356	$	6,532	$	79

Recorded Investment in Non-accrual Loans by Class of Loans

The following table presents the recorded investment in non-accrual loans by class of loans as of September 30, 2012 and December 31, 2011 (in thousands):

	Recorded Investment in Non-accrual Loans
	September 30, 2012		December 31, 2011
Residential real estate:
Originated by Bank	$	11,579	$	15,874
Originated by mortgage company		10,418		9,768
Originated by mortgage company – non-prime		3,478		3,551
Residential construction		—		43
Commercial real estate:
Commercial		11,397		10,552
Construction and land		—		—
Consumer		3,670		3,653
Commercial		631		567
	$	41,173	$	44,008

Aging of the Recorded Investment in Past Due Loans

The following table presents the aging of the recorded investment in past due loans as of September 30, 2012 and December 31, 2011 by class of loans (in thousands):

	30-59 Days Past Due		60-89 Days Past Due		Greater than 90 Days Past Due		Total Past Due		Loans Not Past Due		Total
September 30, 2012
Residential real estate:
Originated by Bank	$	4,940	$	1,904	$	10,895	$	17,739	$	675,675	$	693,414
Originated by mortgage company		2,591		—		10,230		12,821		111,553		124,374
Originated by mortgage company – non-prime		823		653		2,356		3,832		429		4,261
Residential construction		—		—		—		—		8,204		8,204
Commercial real estate:
Commercial		1,057		—		1,965		3,022		461,342		464,364
Construction and land		—		—		—		—		12,149		12,149
Consumer		1,510		758		3,335		5,603		195,840		201,443
Commercial		—		—		338		338		54,335		54,673
	$	10,921	$	3,315	$	29,119	$	43,355	$	1,519,527	$	1,562,882
December 31, 2011
Residential real estate:
Originated by Bank	$	6,449	$	2,024	$	14,491	$	22,964	$	704,925	$	727,889
Originated by mortgage company		4,265		1,228		8,710		14,203		126,288		140,491
Originated by mortgage company – non-prime		59		—		3,551		3,610		1,263		4,873
Residential construction		—		—		43		43		6,614		6,657
Commercial real estate:
Commercial		7		746		373		1,126		442,322		443,448
Construction and land		—		—		—		—		17,277		17,277
Consumer		2,375		312		3,127		5,814		187,104		192,918
Commercial		—		—		15		15		45,874		45,889
	$	13,155	$	4,310	$	30,310	$	47,775	$	1,531,667	$	1,579,442

Risk Category of Loans by Class of Loans

rated are included in groups of homogeneous loans. As of September 30, 2012 and December 31, 2011, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows (in thousands):

	Pass		Special Mention		Substandard		Doubtful		Total
September 30, 2012
Commercial real estate:
Commercial	$	425,329	$	1,775	$	36,225	$	1,035	$	464,364
Construction and land		11,161		506		482		—		12,149
Commercial		48,912		—		5,761		—		54,673
	$	485,402	$	2,281	$	42,468	$	1,035	$	531,186
December 31, 2011
Commercial real estate:
Commercial	$	416,706	$	2,329	$	24,413	$	—	$	443,448
Construction and land		15,079		2,198		—		—		17,277
Commercial		41,589		—		4,232		68		45,889
	$	473,374	$	4,527	$	28,645	$	68	$	506,614

Recorded Investment in Residential and Consumer Loans Based on Payment Activity

payment activity. The following table presents the recorded investment in residential and consumer loans based on payment activity as of September 30, 2012 and December 31, 2011 (in thousands):

	Residential Real Estate
	Originated by Bank		Originated by mortgage company		Originated by mortgage company  – non-prime		Residential construction		Consumer
September 30, 2012
Performing	$	681,835	$	113,956	$	783	$	8,204	$	197,773
Non-performing		11,579		10,418		3,478		—		3,670
	$	693,414	$	124,374	$	4,261	$	8,204	$	201,443
December 31, 2011
Performing	$	712,015	$	130,723	$	1,322	$	6,614	$	189,265
Non-performing		15,874		9,768		3,551		43		3,653
	$	727,889	$	140,491	$	4,873	$	6,657	$	192,918

Troubled Debt Restructurings

The following table presents information about troubled debt restructurings which occurred during the three and nine months ended September 30, 2012 and troubled debt restructurings modified within the previous year and which defaulted during the three and nine months ended September 30, 2012 (dollars in thousands):

	Number of Loans		Pre-modification Recorded  Investment		Post-modification Recorded  Investment
Three months ended September 30, 2012
Troubled Debt Restructurings:
Residential real estate:
Originated by Bank		4	$	375	$	368
Originated by mortgage company		1	$	359	$	359
Consumer		1	$	56	$	56

	Number of Loans		Recorded Investment
Troubled Debt Restructurings Which Subsequently Defaulted:		None		None

	Number of Loans		Pre-modification Recorded  Investment		Post-modification Recorded  Investment
Nine months ended September 30, 2012
Troubled Debt Restructurings:
Residential real estate:
Originated by Bank		9	$	2,029	$	1,892
Originated by mortgage company		3	$	978	$	978
Commercial real estate:
Commercial		2	$	1,315	$	1,279
Consumer		4	$	185	$	185

	Number of Loans		Recorded Investment
Troubled Debt Restructurings Which Subsequently Defaulted:		None		None