Real Estate and Other Assets Owned

3 Months Ended

Mar. 31, 2013

Real Estate and Other Assets Owned [Abstract]

REAL ESTATE AND OTHER ASSETS OWNED

(6) REAL ESTATE AND OTHER ASSETS OWNED

The Company’s real estate and other assets owned represent properties and personal collateral acquired through customer loan defaults. The property is recorded at the lower of cost or fair value less estimated cost to sell and carrying cost at the date acquired. Any difference between the book value and estimated market value is recognized as a charge off through the allowance for loan loss account. Additional real estate owned and other asset losses may be determined on individual properties at specific intervals or at the time of disposal. In general, the Company will obtain a new appraisal on all real estate owned with a book balance in excess of $250,000 on an annual basis. Additional losses are recognized as a non-interest expense.

At March 31, 2013, December 31, 2012, and March 31, 2012, the Company had balances in other real estate and assets owned consisting of the following:

	March 31, 2013			December 31, 2012			March 31, 2012
				(Dollars in Thousands)
One-to-four family mortgages	$	295			258			540
Multi-family		—			—			—
Construction		—			130			216
Land		1,112			1,112			425
Non-residential real estate		73			44			—
Consumer assets owned by bank		—			4			—
Total other assets owned		1,480			1,548			1,181
Total non-accrual loans		7,036			7,663			11,216
Total non-performing assets	$	8,516			9,211			12,397
Non-performing assets / Total assets		0.86	%		0.95	%		1.18	%

The following is a summary of the activity in the Company’s real estate and other assets owned for the three month period ending March 31, 2013:

	Balance							Reduction			Gain (Loss)		Balance
	12/31/2012		Foreclosures		Proceeds			in Values			on Sale		3/31/2013
			(Dollars in Thousands)
One-to-four family mortgages	$	258		37		—			—			—		295
Multi-family		—		—		—			—			—		—
Construction		130		—		(110	)		(110	)		90		—
Land		1,112		—		—			—			—		1,112
Non-residential real estate		44		40		—			(11	)		—		73
Consumer assets		4		—		—			(4	)		—		—
Total	$	1,548		77		(110	)		(125	)		90		1,480

The following is a summary of the activity in the Company’s real estate and other assets owned for the year ended December 31, 2012:

			Activity During 2012
	Balance							Reduction			Gain (Loss)			Balance
	12/31/2011		Foreclosures		Proceeds			in Values			on Sale			12/31/2012
			(Dollars in Thousands)
One-to-four family mortgages	$	480		983		(1,084	)		(92	)		(29	)		258
Multi-family		905		—		(875	)		—			(30	)		—
Construction		465		—		(321	)		—			(14	)		130
Land		248		1,229		(269	)		(77	)		(19	)		1,112
Non-residential real estate		160		64		(178	)		(20	)		18			44
Consumer assets		9		9		(11	)		—			(3	)		4
Total	$	2,267		2,285		(2,738	)		(189	)		(77	)		1,548