Loans and the Allowance for Loan Losses (Tables)

6 Months Ended

Jun. 30, 2012

Loans And Allowance For Loan Losses Tables

Schedule of activity in the allowance for loan losses, by segment

The following presents by portfolio segment, the activity in the allowance for loan losses for the three and six months ended June 30, 2012 and June 30, 2011:

Three months ended June 30, 2012	One-to-four family residential			All other mortgage loans			Commercial business loans			Consumer loans			Unallocated		Total
	(In thousands)
Beginning balance	$	1,251		$	3,140		$	174		$	9		$	—	$	4,574
Provision charged to expense		(182	)		(181	)		(31	)		—			—		(394	)
Losses charged off		(23	)		(597	)		—			(4	)		—		(624	)
Recoveries		36			—			—			—			—		36
Ending balance	$	1,082		$	2,362		$	143		$	5		$	—	$	3,592

Three months ended June 30, 2011	One-to-four family residential			All other mortgage loans			Commercial business loans		Consumer loans		Unallocated		Total
	(In thousands)
Beginning balance	$	1,073		$	1,967		$	158	$	5	$	—	$	3,203
Provision charged to expense		55			(127	)		137		5		—		70
Losses charged off		(53	)		—			—		—		—		(53	)
Recoveries		1			—			—		—		—		1
Ending balance	$	1,076		$	1,840		$	295	$	10	$	—	$	3,221

Six months ended June 30, 2012	One-to-four family residential			All other mortgage loans			Commercial  business loans			Consumer loans			Unallocated		Total
	(In thousands)
Beginning balance	$	1,128		$	2,547		$	169		$	10		$	—	$	3,854
Provision charged to expense		3			417			(26	)		(1	)		—		393
Losses charged off		(88	)		(602	)		—			(4	)		—		(694	)
Recoveries		39			—			—			—			—		39
Ending balance	$	1,082		$	2,362		$	143		$	5		$	—	$	3,592

Six months ended June 30, 2011	One-to-four family residential			All other mortgage loans		Commercial business loans		Consumer loans		Unallocated			Total
	(In thousands)
Beginning balance	$	1,199		$	1,603	$	253	$	8	$	2		$	3,065
Provision charged to expense		(72	)		222		42		2		(2	)		192
Losses charged off		(53	)		—		—		—		—			(53	)
Recoveries		2			15		—		—		—			17
Ending balance	$	1,076		$	1,840	$	295	$	10	$	—		$	3,221

Schedule of allowance for loan losses and recorded investment in loans based on portfolio segment and impairment method

The following tables present the balance in the allowance for loan losses and the recorded investment in loans based on the portfolio segment and impairment method as of June 30, 2012 and December 31, 2011:

June 30, 2012	One-to-four family residential		All other  mortgage loans		Commercial business loans		Consumer loans		Unallocated		Total
Allowance Balances:
		(in thousands)
Ending balance:  individually evaluated for impairment	$	291	$	1,834	$	43	$	—	$	—	$	2,168
Ending balance:  collectively evaluated for impairment		791		528		100		5		—		1,424
Total allowance for loan losses	$	1,082	$	2,362	$	143	$	5	$	—	$	3,592
Loan Balances:
Ending balance:  individually evaluated for impairment	$	4,147	$	6,694	$	47	$	—			$	10,888
Ending balance:  collectively evaluated for impairment		150,685		67,980		11,167		2,095				231,927
Ending balance	$	154,832	$	74,674	$	11,214	$	2,095			$	242,815

December 31, 2011	One-to-four family residential		All other mortgage loans		Commercial business loans		Consumer loans		Unallocated		Total
Allowance Balances:
		(in thousands)
Ending balance:  individually evaluated for impairment	$	320	$	1,941	$	53	$	—	$	—	$	2,314
Ending balance:  collectively evaluated for impairment		808		606		116		10		—		1,540
Total allowance for loan losses	$	1,128	$	2,547	$	169	$	10	$	—	$	3,854
Loan Balances:
Ending balance:  individually evaluated for impairment	$	3,744	$	6,955	$	92	$	—			$	10,791
Ending balance:  collectively evaluated for impairment		149,320		65,251		10,434		2,257				227,262
Ending balance	$	153,064	$	72,206	$	10,526	$	2,257			$	238,053

Schedule credit risk profile of the entities loan portfolio based on rating category and payment activity

The following tables present the credit risk profile of the Bank’s loan portfolio based on rating category and payment activity as of June 30, 2012 and December 31, 2011:

March 31, 2012	One-to-four family residential		All other mortgage loans		Commercial business loans		Consumer loans
			(In thousands)
Rating *
Pass (Risk 1-4)	$	147,697	$	64,073	$	11,022	$	2,095
Special Mention (Risk 5)		2,988		3,907		145		—
Substandard (Risk 6)		4,147		6,694		47		—
Total	$	154,832	$	74,674	$	11,214	$	2,095

December 31, 2011	One-to-four family residential		All other mortgage loans		Commercial business loans		Consumer loans
			(In thousands)
Rating *
Pass (Risk 1-4)	$	145,061	$	61,970	$	10,268	$	2,257
Special Mention (Risk 5)		2,979		3,281		166		—
Substandard (Risk 6)		5,024		6,955		92		—
Total	$	153,064	$	72,206	$	10,526	$	2,257

Schedule of loan portfolio aging analysis

The following tables present the Bank’s loan portfolio aging analysis for June 30, 2012 and December 31, 2011:

June 30, 2012	30-59 Days Past Due		60-89 Days Past Due		Greater Than 90  Days		Total Past Due		Current		Total Loans Receivable		Total Loans > 90 Days & Accruing
					(In thousands)
One-to-four family residential loans	$	183	$	503	$	344	$	1,030	$	153,802	$	154,832	$	—
All other mortgage loans		967		—		1,775		2,742		71,932		74,674		—
Commercial business loans		—		—		2		2		11,212		11,214		—
Consumer loans		2		3		6		11		2,084		2,095		—
Total	$	1,152	$	506	$	2,127	$	3,785	$	239,030	$	242,815	$	—

December 31, 2011	30-59 Days Past Due		60-89 Days Past Due		Greater Than 90 Days		Total Past Due		Current		Total Loans Receivable		Total Loans > 90 Days & Accruing
					(In thousands)
One-to-four family residential loans	$	1,513	$	280	$	844	$	2,637	$	150,427	$	153,064	$	—
All other mortgage loans		903		—		1,905		2,808		69,398		72,206		—
Commercial business loans		17		—		35		52		10,474		10,526		—
Consumer loans		17		9		—		26		2,231		2,257		—
Total	$	2,450	$	289	$	2,784	$	5,523	$	232,530	$	238,053	$	—

Schedule of non-accrual loans

Non-accrual loans were comprised of the following at:

	June 30, 2012		December 31, 2011
	Nonaccrual		Nonaccrual
	(In thousands)
One-to-four family residential loans	$	2,202	$	2,433
All other mortgage loans		3,102		3,271
Commercial business loans		47		92
Consumer loans		8		12
Total	$	5,359	$	5,808

Schedule of impaired financing receivables

Information with respect to the Company’s impaired loans at June 30, 2012 and December 31, 2011 in combination with activity for the three and six month periods ended June 30, 2012 and June 30, 2011 is presented below:

	As of June 30, 2012						3 months ended June 30, 2012				6 months ended June 30, 2012
	Recorded Balance		Unpaid Principal Balance		Specific Allowance		Average Investment in Impaired Loans		Interest Income Recognized		Average Investment in Impaired Loans		Interest Income Recognized
	(in thousands)
Loans without a specific valuation allowance
One-to-four family residential loans	$	2,998	$	2,998	$	—	$	3,148	$	30	$	3,118	$	69
All other mortgage loans		2,060		2,060		—		2,067		28		1,916		55
Loans with a specific valuation allowance
One-to-four family residential loans		1,149		1,149		291		1,224		8		828		33
All other mortgage loans		4,634		4,634		1,834		4,973		19		4,909		39
Commercial business loans		47		47		43		49		—		70		—
Total:
One-to-four family residential loans	$	4,147	$	4,147	$	291	$	4,372	$	38	$	3,946	$	102
All other mortgage loans		6,694		6,694		1,834		7,040		47		6,825		94
Commercial business loans		47		47		43		49		—		70		—
	$	10,888	$	10,888	$	2,168	$	11,461	$	85	$	10,841	$	196

	As of December 31, 2011						3 months ended June 30, 2011				6 months ended June 30, 2011
	Recorded Balance		Unpaid Principal  Balance		Specific Allowance		Average Investment in Impaired Loans		Interest Income Recognized		Average Investment in Impaired Loans		Interest Income Recognized
	(in thousands)
Loans without a specific valuation allowance
One-to-four family residential loans	$	3,238	$	3,238	$	—	$	2,603	$	32	$	3,003	$	55
All other mortgage loans		1,771		1,771		—		1,493		—		1,985		10
Commercial business loans		—		—		—		—		—		26		—
Loans with a specific valuation allowance
One-to-four family residential loans		506		506		320		567		8		198		10
All other mortgage loans		5,184		5,184		1,941		5,055		65		4,070		97
Commercial business loans		92		92		53		163		—		149		2
Total:
One-to-four family residential loans	$	3,744	$	3,744	$	320	$	3,170	$	40	$	3,201	$	65
All other mortgage loans		6,955		6,955		1,941		6,548		65		6,055		107
Commercial business loans		92		92		53		163		—		175		2
	$	10,791	$	10,791	$	2,314	$	9,881	$	105	$	9,431	$	174

Schedule Troubled Debt Restructuring Loans

The interest income recognized in the above tables reflects interest income recognized and is not materially different from the cash basis method.

June 30, 2012	Quarter-to-Date						Year-to-Date
	Number  of loans		Pre- modification Unpaid Principal Balance		Post- modification Unpaid Principal Balance		Number of loans		Pre- modification Unpaid Principal Balance		Post- modification Unpaid Principal Balance
Troubled Debt Restructurings	(dollars in thousands)
One-to-four family residential loans		—	$	—	$	—		2	$	538	$	538