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Bank subsidiary (Tables)
 9 Months Ended
Sep. 30, 2013
Bank subsidiary  
Schedule of statements of income data
Selected financial information
American Savings Bank, F.S.B.
Statements of Income Data
 
 
 
Three months ended 
 September 30
 
Nine months ended 
 September 30
(in thousands)
 
2013
 
2012
 
2013
 
2012
Interest and dividend income
 
 

 
 

 
 

 
 

Interest and fees on loans
 
$
43,337

 
$
43,880

 
$
129,564

 
$
133,241

Interest and dividend on investment and mortgage-related securities
 
3,025

 
3,432

 
9,723

 
10,534

Total interest and dividend income
 
46,362

 
47,312

 
139,287

 
143,775

Interest expense
 
 

 
 

 
 

 
 

Interest on deposit liabilities
 
1,262

 
1,540

 
3,870

 
5,015

Interest on other borrowings
 
1,206

 
1,201

 
3,548

 
3,676

Total interest expense
 
2,468

 
2,741

 
7,418

 
8,691

Net interest income
 
43,894

 
44,571

 
131,869

 
135,084

Provision for loan losses
 
54

 
3,580

 
953

 
9,504

Net interest income after provision for loan losses
 
43,840

 
40,991

 
130,916

 
125,580

Noninterest income
 
 

 
 

 
 

 
 

Fees from other financial services
 
5,728

 
7,674

 
21,367

 
22,474

Fee income on deposit liabilities
 
4,819

 
4,527

 
13,566

 
13,127

Fee income on other financial products
 
2,714

 
1,660

 
6,288

 
4,741

Mortgage banking income
 
1,547

 
4,077

 
6,896

 
8,297

Gain on sale of securities
 
—

 
—

 
1,226

 
134

Other income
 
3,888

 
1,346

 
7,211

 
4,021

Total noninterest income
 
18,696

 
19,284

 
56,554

 
52,794

Noninterest expense
 
 

 
 

 
 

 
 

Compensation and employee benefits
 
20,564

 
18,684

 
60,715

 
56,026

Occupancy
 
4,208

 
4,400

 
12,550

 
12,866

Data processing
 
2,168

 
2,644

 
7,982

 
7,244

Services
 
2,424

 
3,062

 
6,855

 
7,066

Equipment
 
1,825

 
1,762

 
5,469

 
5,299

Other expense
 
8,539

 
8,096

 
24,634

 
22,909

Total noninterest expense
 
39,728

 
38,648

 
118,205

 
111,410

Income before income taxes
 
22,808

 
21,627

 
69,265

 
66,964

Income taxes
 
7,532

 
7,419

 
23,915

 
22,690

Net income
 
$
15,276

 
$
14,208

 
$
45,350

 
$
44,274
Schedule of statements of comprehensive income data
American Savings Bank, F.S.B.
Statements of Comprehensive Income Data
 
 
 
Three months  
 ended September 30
 
Nine months  
 ended September 30
(in thousands)
 
2013
 
2012
 
2013
 
2012
Net income
 
$
15,276

 
$
14,208

 
$
45,350

 
$
44,274

Other comprehensive income (loss), net of taxes:
 
 

 
 

 
 

 
 

Net unrealized gains (losses) on securities:
 
 

 
 

 
 

 
 

Net unrealized gains (losses) on securities arising during the period, net of (taxes) benefits, of $1,049 and ($689) for the three months ended September 30, 2013 and 2012 and $7,081 and ($1,261) for the nine months ended September 30, 2013 and 2012, respectively
 
(1,589
)
 
1,043

 
(10,724
)
 
1,910

Less: reclassification adjustment for net realized gains, included in net income, net of taxes, of nil for the three months ended September 30, 2013 and 2012 and $488 and $53 for the nine months ended September 30, 2013 and 2012, respectively
 
—

 
—

 
(738
)
 
(81
)
Retirement benefit plans:
 
 

 
 

 
 

 
 

Less: amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits of $278 and $176 for the three months ended September 30, 2013 and 2012 and $2,010 and $508 for the nine months ended September 30, 2013 and 2012, respectively
 
420

 
266

 
3,043

 
769

Other comprehensive income (loss), net of taxes
 
(1,169
)
 
1,309

 
(8,419
)
 
2,598

Comprehensive income
 
$
14,107

 
$
15,517

 
$
36,931

 
$
46,872
Schedule of balance sheets data
American Savings Bank, F.S.B.
Balance Sheets Data
 
(in thousands)
 
September 30, 2013
 
December 31, 2012
Assets
 
 

 
 

 
 

 
 

Cash and cash equivalents
 
 

 
$
189,524

 
 

 
$
184,430

Available-for-sale investment and mortgage-related securities
 
 

 
535,264

 
 

 
671,358

Investment in stock of Federal Home Loan Bank of Seattle
 
 

 
93,413

 
 

 
96,022

Loans receivable held for investment
 
 

 
4,046,184

 
 

 
3,779,218

Allowance for loan losses
 
 

 
(41,052
)
 
 

 
(41,985
)
Loans receivable held for investment, net
 
 

 
4,005,132

 
 

 
3,737,233

Loans held for sale, at lower of cost or fair value
 
 

 
5,829

 
 

 
26,005

Other
 
 

 
248,020

 
 

 
244,435

Goodwill
 
 

 
82,190

 
 

 
82,190

Total assets
 
 

 
$
5,159,372

 
 

 
$
5,041,673

 
 
 
 
 
 
 
 
 
Liabilities and shareholder’s equity
 
 

 
 

 
 

 
 

Deposit liabilities—noninterest-bearing
 
 

 
$
1,205,526

 
 

 
$
1,164,308

Deposit liabilities—interest-bearing
 
 

 
3,105,316

 
 

 
3,065,608

Other borrowings
 
 

 
239,612

 
 

 
195,926

Other
 
 

 
102,172

 
 

 
117,752

Total liabilities
 
 

 
4,652,626

 
 

 
4,543,594

Commitments and contingencies (see “Litigation” below)
 
 

 
 

 
 

 
 

Common stock
 
 

 
335,448

 
 

 
333,712

Retained earnings
 
 

 
195,113

 
 

 
179,763

Accumulated other comprehensive income (loss), net of taxes
 
 

 
 

 
 

 
 

Net unrealized gains (losses) on securities
 
$
(701
)
 
 

 
$
10,761

 
 

Retirement benefit plans
 
(23,114
)
 
(23,815
)
 
(26,157
)
 
(15,396
)
Total shareholder’s equity
 
 

 
506,746

 
 

 
498,079

Total liabilities and shareholder’s equity
 
 

 
$
5,159,372

 
 

 
$
5,041,673

 
 
 
 
 
 
 
 
 
Other assets
 
 

 
 

 
 

 
 

Bank-owned life insurance
 
 

 
$
128,833

 
 

 
$
125,726

Premises and equipment, net
 
 

 
67,634

 
 

 
62,458

Prepaid expenses
 
 

 
4,394

 
 

 
13,199

Accrued interest receivable
 
 

 
13,372

 
 

 
13,228

Mortgage-servicing rights
 
 

 
11,806

 
 

 
10,818

Real estate acquired in settlement of loans, net
 
 

 
1,488

 
 

 
6,050

Other
 
 

 
20,493

 
 

 
12,956

 
 
 

 
$
248,020

 
 

 
$
244,435

Other liabilities
 
 

 
 

 
 

 
 

Accrued expenses
 
 

 
$
20,463

 
 

 
$
17,103

Federal and state income taxes payable
 
 

 
30,249

 
 

 
35,408

Cashier’s checks
 
 

 
24,183

 
 

 
23,478

Advance payments by borrowers
 
 

 
5,694

 
 

 
9,685

Other
 
 

 
21,583

 
 

 
32,078

 
 
 

 
$
102,172

 
 

 
$
117,752
Schedule of information about the securities sold under agreements to repurchase, including the related collateral received from or pledged to counterparties
The following tables present information about the securities sold under agreements to repurchase, including the related collateral received from or pledged to counterparties:
 
(in millions)
 
Gross amount of
recognized liabilities
 
Gross amount offset in
the Balance Sheet
 
Net amount of liabilities presented
in the Balance Sheet
Repurchase agreements
 
 

 
 

 
 

September 30, 2013
 
$
140

 
$
—

 
$
140

December 31, 2012
 
146

 
—

 
146

 
 
 
Gross amount not offset in the Balance Sheet
(in millions)
 
Net amount of 
liabilities presented
in the Balance Sheet
 
Financial
instruments
 
Cash
collateral
pledged
 
Net amount
September 30, 2013
 
 

 
 

 
 

 
 

Financial institution
 
$
50

 
$
50

 
$
—

 
$
—

Commercial account holders
 
90

 
90

 
—

 
—

Total
 
$
140

 
$
140

 
$
—

 
$
—

 
 
 
 
 
 
 
 
 
December 31, 2012
 
 

 
 

 
 

 
 

Financial institution
 
$
50

 
$
50

 
$
—

 
$
—

Commercial account holders
 
96

 
96

 
—

 
—

Total
 
$
146

 
$
146

 
$
—

 
$
—
Schedule of the book value and aggregate fair value by major security type
Available-for-sale securities.  The book value (amortized cost), gross unrealized gains and losses, estimated fair value and gross unrealized losses (fair value and amount by duration of time in which positions have been held in a continuous loss position) for securities held in ASB’s “available-for-sale” portfolio by major security type were as follows:
 
 
 
Amortized cost
 
Gross unrealized gains
 
Gross unrealized losses
 
Estimated fair
value
 
Gross unrealized losses
 
 
 
 
 
 
Less than 12 months
 
12 months or longer
(in thousands)
 
 
 
 
 
Fair value
 
Amount
 
Fair value
 
Amount
September 30, 2013
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Federal agency obligations
 
$
99,812

 
$
389

 
$
(1,936
)
 
$
98,265

 
$
29,755

 
$
(1,936
)
 
$
—

 
$
—

Mortgage-related securities- FNMA, FHLMC and GNMA
 
359,437

 
6,308

 
(7,768
)
 
357,977

 
164,998

 
(7,620
)
 
3,910

 
(148
)
Municipal bonds
 
77,181

 
2,034

 
(193
)
 
79,022

 
26,526

 
(193
)
 
—

 
—

 
 
$
536,430

 
$
8,731

 
$
(9,897
)
 
$
535,264

 
$
221,279

 
$
(9,749
)
 
$
3,910

 
$
(148
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2012
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Federal agency obligations
 
$
168,324

 
$
3,167

 
$
—

 
$
171,491

 
$
—

 
$
—

 
$
—

 
$
—

Mortgage-related securities- FNMA, FHLMC and GNMA
 
407,175

 
10,412

 
(204
)
 
417,383

 
32,269

 
(204
)
 
—

 
—

Municipal bonds
 
77,993

 
4,491

 
—

 
82,484

 
—

 
—

 
—

 
—

 
 
$
653,492

 
$
18,070

 
$
(204
)
 
$
671,358

 
$
32,269

 
$
(204
)
 
$
—

 
$
—
Schedule of contractual maturities of available-for-sale securities
The following table details the contractual maturities of available-for-sale securities. All positions with variable maturities (e.g. callable debentures and mortgage-related securities) are disclosed based upon the bond’s contractual maturity. Actual maturities will likely differ from these contractual maturities because borrowers have the right to prepay obligations with or without prepayment penalties.
 
September 30, 2013
 
Amortized cost
 
Fair value
(in thousands)
 
 
 
 
Due in one year or less
 
$
28,120

 
$
28,143

Due after one year through five years
 
37,922

 
38,324

Due after five years through ten years
 
85,760

 
87,192

Due after ten years
 
25,191

 
23,628

 
 
176,993

 
177,287

Mortgage-related securities-FNMA,FHLMC and GNMA
 
359,437

 
357,977

Total available-for-sale securities
 
$
536,430

 
$
535,264
Schedule of allowance for loan losses
The allowance for loan losses (balances and changes) and financing receivables were as follows:
 
(in thousands)
 
Residential
1-4 family
 
Commercial real
estate
 
Home
equity line of credit
 
Residential land
 
Commercial construction
 
Residential construction
 
Commercial loans
 
Consumer loans
 
Unallocated
 
Total
Three months ended September 30, 2013
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Allowance for loan losses:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Beginning balance
 
$
6,357

 
$
4,117

 
$
5,009

 
$
2,187

 
$
2,305

 
$
14

 
$
16,307

 
$
2,399

 
$
2,309

 
$
41,004

Charge-offs
 
(106
)
 
—

 
(44
)
 
(3
)
 
—

 
—

 
(305
)
 
(407
)
 
—

 
(865
)
Recoveries
 
157

 
—

 
78

 
282

 
—

 
—

 
166

 
176

 
—

 
859

Provision
 
(604
)
 
204

 
12

 
(361
)
 
44

 
2

 
(361
)
 
42

 
1,076

 
54

Ending balance
 
$
5,804

 
$
4,321

 
$
5,055

 
$
2,105

 
$
2,349

 
$
16

 
$
15,807

 
$
2,210

 
$
3,385

 
$
41,052

Three months ended September 30, 2012
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Allowance for loan losses:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Beginning balance
 
$
7,212

 
$
2,078

 
$
4,843

 
$
3,340

 
$
2,255

 
$
3

 
$
13,961

 
$
3,797

 
$
1,974

 
$
39,463

Charge-offs
 
(964
)
 
—

 
(363
)
 
(1,093
)
 
—

 
—

 
(1,130
)
 
(601
)
 
—

 
(4,151
)
Recoveries
 
379

 
—

 
7

 
226

 
—

 
—

 
155

 
151

 
—

 
918

Provision
 
100

 
4

 
378

 
1,324

 
(324
)
 
5

 
1,344

 
462

 
287

 
3,580

Ending balance
 
$
6,727

 
$
2,082

 
$
4,865

 
$
3,797

 
$
1,931

 
$
8

 
$
14,330

 
$
3,809

 
$
2,261

 
$
39,810

Nine months ended September 30, 2013
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Allowance for loan losses:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Beginning balance
 
$
6,068

 
$
2,965

 
$
4,493

 
$
4,275

 
$
2,023

 
$
9

 
$
15,931

 
$
4,019

 
$
2,202

 
$
41,985

Charge-offs
 
(1,162
)
 
—

 
(782
)
 
(238
)
 
—

 
—

 
(1,655
)
 
(1,811
)
 
—

 
(5,648
)
Recoveries
 
1,382

 
—

 
334

 
782

 
—

 
—

 
778

 
486

 
—

 
3,762

Provision
 
(484
)
 
1,356

 
1,010

 
(2,714
)
 
326

 
7

 
753

 
(484
)
 
1,183

 
953

Ending balance
 
$
5,804

 
$
4,321

 
$
5,055

 
$
2,105

 
$
2,349

 
$
16

 
$
15,807

 
$
2,210

 
$
3,385

 
$
41,052

Ending balance: individually evaluated for impairment
 
$
944

 
$
888

 
$
—

 
$
1,585

 
$
—

 
$
—

 
$
2,679

 
$
—

 
$
—

 
$
6,096

Ending balance: collectively evaluated for impairment
 
$
4,860

 
$
3,433

 
$
5,055

 
$
520

 
$
2,349

 
$
16

 
$
13,128

 
$
2,210

 
$
3,385

 
$
34,956

Financing Receivables:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Ending balance
 
$
2,015,082

 
$
405,037

 
$
703,210

 
$
18,400

 
$
51,067

 
$
10,460

 
$
749,733

 
$
102,400

 
$
—

 
$
4,055,389

Ending balance: individually evaluated for impairment
 
$
22,123

 
$
4,484

 
$
960

 
$
12,747

 
$
—

 
$
—

 
$
22,777

 
$
19

 
$
—

 
$
63,110

Ending balance: collectively evaluated for impairment
 
$
1,992,959

 
$
400,553

 
$
702,250

 
$
5,653

 
$
51,067

 
$
10,460

 
$
726,956

 
$
102,381

 
$
—

 
$
3,992,279

Nine months ended September 30, 2012
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Allowance for loan losses:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Beginning balance
 
$
6,500

 
$
1,688

 
$
4,354

 
$
3,795

 
$
1,888

 
$
4

 
$
14,867

 
$
3,806

 
$
1,004

 
$
37,906

Charge-offs
 
(2,476
)
 
—

 
(402
)
 
(2,340
)
 
—

 
—

 
(2,964
)
 
(1,853
)
 
—

 
(10,035
)
Recoveries
 
974

 
—

 
95

 
471

 
—

 
—

 
511

 
384

 
—

 
2,435

Provision
 
1,729

 
394

 
818

 
1,871

 
43

 
4

 
1,916

 
1,472

 
1,257

 
9,504

Ending balance
 
$
6,727

 
$
2,082

 
$
4,865

 
$
3,797

 
$
1,931

 
$
8

 
$
14,330

 
$
3,809

 
$
2,261

 
$
39,810

Ending balance: individually evaluated for impairment
 
$
324

 
$
7

 
$
313

 
$
2,321

 
$
—

 
$
—

 
$
1,656

 
$
—

 
$
—

 
$
4,621

Ending balance: collectively evaluated for impairment
 
$
6,403

 
$
2,075

 
$
4,552

 
$
1,476

 
$
1,931

 
$
8

 
$
12,674

 
$
3,809

 
$
2,261

 
$
35,189

Financing Receivables:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
0

Ending balance
 
$
1,899,580

 
$
367,765

 
$
604,279

 
$
29,280

 
$
42,913

 
$
5,648

 
$
704,100

 
$
104,338

 
$
—

 
$
3,757,903

Ending balance: individually evaluated for impairment
 
$
26,912

 
$
2,929

 
$
1,913

 
$
25,146

 
$
—

 
$
—

 
$
17,956

 
$
22

 
$
—

 
$
74,878

Ending balance: collectively evaluated for impairment
 
$
1,872,668

 
$
364,836

 
$
602,366

 
$
4,134

 
$
42,913

 
$
5,648

 
$
686,144

 
$
104,316

 
$
—

 
$
3,683,025
Schedule of credit risk profile by internally assigned grade for loans
The credit risk profile by internally assigned grade for loans was as follows:
 
 
 
September 30, 2013
 
December 31, 2012
(in thousands)
 
Commercial
real estate
 
Commercial
construction
 
Commercial
 
Commercial
real estate
 
Commercial
construction
 
Commercial
Grade:
 
 

 
 

 
 

 
 

 
 

 
 

Pass
 
$
332,407

 
$
51,067

 
$
661,720

 
$
314,182

 
$
39,063

 
$
638,854

Special mention
 
40,437

 
—

 
18,948

 
25,437

 
4,925

 
24,511

Substandard
 
28,403

 
—

 
65,571

 
29,308

 
—

 
53,538

Doubtful
 
3,790

 
—

 
3,494

 
6,750

 
—

 
4,446

Loss
 
—

 
—

 
—

 
—

 
—

 
—

Total
 
$
405,037

 
$
51,067

 
$
749,733

 
$
375,677

 
$
43,988

 
$
721,349
Schedule of credit risk profile based on payment activity for loans
The credit risk profile based on payment activity for loans was as follows:
 
(in thousands)
 
30-59
days
past due
 
60-89
days
past due
 
Greater
than
90 days
 
Total
past due
 
Current
 
Total
financing
receivables
 
Recorded
investment>
90 days and
accruing
September 30, 2013
 
 

 
 

 
 

 
 

 
 

 
 

 
 

Real estate loans:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

Residential 1-4 family
 
$
3,026

 
$
1,599

 
$
15,060

 
$
19,685

 
$
1,995,397

 
$
2,015,082

 
$
—

Commercial real estate
 
—

 
—

 
3,790

 
3,790

 
401,247

 
405,037

 
—

Home equity line of credit
 
658

 
373

 
880

 
1,911

 
701,299

 
703,210

 
—

Residential land
 
684

 
80

 
5,352

 
6,116

 
12,284

 
18,400

 
1,746

Commercial construction
 
—

 
—

 
—

 
—

 
51,067

 
51,067

 
—

Residential construction
 
—

 
—

 
—

 
—

 
10,460

 
10,460

 
—

Commercial loans
 
1,026

 
166

 
4,105

 
5,297

 
744,436

 
749,733

 
—

Consumer loans
 
420

 
212

 
182

 
814

 
101,586

 
102,400

 
—

Total loans
 
$
5,814

 
$
2,430

 
$
29,369

 
$
37,613

 
$
4,017,776

 
$
4,055,389

 
$
1,746

December 31, 2012
 
 

 
 

 
 

 
 

 
 

 
 

 
 

Real estate loans:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

Residential 1-4 family
 
$
6,353

 
$
1,741

 
$
24,054

 
$
32,148

 
$
1,834,302

 
$
1,866,450

 
$
—

Commercial real estate
 
85

 
—

 
6,750

 
6,835

 
368,842

 
375,677

 
—

Home equity line of credit
 
1,077

 
142

 
1,319

 
2,538

 
627,637

 
630,175

 
—

Residential land
 
2,851

 
75

 
7,788

 
10,714

 
15,101

 
25,815

 
—

Commercial construction
 
—

 
—

 
—

 
—

 
43,988

 
43,988

 
—

Residential construction
 
—

 
—

 
—

 
—

 
6,171

 
6,171

 
—

Commercial loans
 
3,052

 
2,814

 
1,098

 
6,964

 
714,385

 
721,349

 
131

Consumer loans
 
598

 
348

 
424

 
1,370

 
119,861

 
121,231

 
242

Total loans
 
$
14,016

 
$
5,120

 
$
41,433

 
$
60,569

 
$
3,730,287

 
$
3,790,856

 
$
373
Schedule of credit risk profile based on nonaccrual loans, accruing loans 90 days or more past due
The credit risk profile based on nonaccrual loans and accruing loans 90 days or more past due was as follows:
 
 
 
September 30, 2013
 
December 31, 2012
(in thousands)
 
Nonaccrual
loans
 
Accruing loans
90 days or
more past due
 
Nonaccrual
loans
 
Accruing loans
90 days or
more past due
Real estate loans:
 
 

 
 

 
 

 
 

Residential 1-4 family
 
$
18,908

 
$
—

 
$
26,721

 
$
—

Commercial real estate
 
4,483

 
—

 
6,750

 
—

Home equity line of credit
 
1,948

 
—

 
2,349

 
—

Residential land
 
3,606

 
1,746

 
8,561

 
—

Commercial construction
 
—

 
—

 
—

 
—

Residential construction
 
—

 
—

 
—

 
—

Commercial loans
 
21,308

 
—

 
20,222

 
131

Consumer loans
 
519

 
—

 
284

 
242

Total
 
$
50,772

 
$
1,746

 
$
64,887

 
$
373
Schedule of the carrying amount and the total unpaid principal balance of impaired loans, with and without recorded allowance for loans losses
The total carrying amount and the total unpaid principal balance of impaired loans, with and without recorded allowance for loan losses and combined, were as follows:
 
 
 
September 30, 2013
 
Three months ended 
 September 30, 2013
 
Nine months ended 
 September 30, 2013
(in thousands)
 
Recorded
investment
 
Unpaid
principal
balance
 
Related
Allowance
 
Average
recorded
investment
 
Interest
income
recognized*
 
Average
recorded
investment
 
Interest
income
recognized*
With no related allowance recorded
 
 

 
 

 
 

 
 

 
 

 
 

 
 

Real estate loans:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

Residential 1-4 family
 
$
10,121

 
$
13,122

 
$
—

 
$
9,777

 
$
62

 
$
12,304

 
$
294

Commercial real estate
 
—

 
—

 
—

 
—

 
—

 
1,069

 
—

Home equity line of credit
 
523

 
1,068

 
—

 
526

 
—

 
606

 
—

Residential land
 
5,734

 
6,712

 
—

 
6,095

 
216

 
7,477

 
435

Commercial construction
 
—

 
—

 
—

 
—

 
—

 
—

 
—

Residential construction
 
—

 
—

 
—

 
—

 
—

 
—

 
—

Commercial loans
 
6,311

 
8,624

 
—

 
4,941

 
7

 
4,518

 
8

Consumer loans
 
19

 
19

 
—

 
20

 
—

 
20

 
—

 
 
22,708

 
29,545

 
—

 
21,359

 
285

 
25,994

 
737

With an allowance recorded
 
 

 
 

 
 

 
 

 
 

 
 

 
 

Real estate loans:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

Residential 1-4 family
 
7,147

 
7,167

 
943

 
7,155

 
83

 
6,411

 
259

Commercial real estate
 
4,484

 
4,536

 
888

 
4,028

 
—

 
6,157

 
151

Home equity line of credit
 
—

 
—

 
—

 
—

 
—

 
—

 
—

Residential land
 
6,101

 
6,228

 
1,585

 
6,105

 
102

 
7,123

 
304

Commercial construction
 
—

 
—

 
—

 
—

 
—

 
—

 
—

Residential construction
 
—

 
—

 
—

 
—

 
—

 
—

 
—

Commercial loans
 
16,466

 
17,978

 
2,679

 
16,524

 
67

 
15,606

 
72

Consumer loans
 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
 
34,198

 
35,909

 
6,095

 
33,812

 
252

 
35,297

 
786

Total
 
 

 
 

 
 

 
 

 
 

 
 

 
 

Real estate loans:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

Residential 1-4 family
 
17,268

 
20,289

 
943

 
16,932

 
145

 
18,715

 
553

Commercial real estate
 
4,484

 
4,536

 
888

 
4,028

 
—

 
7,226

 
151

Home equity line of credit
 
523

 
1,068

 
—

 
526

 
—

 
606

 
—

Residential land
 
11,835

 
12,940

 
1,585

 
12,200

 
318

 
14,600

 
739

Commercial construction
 
—

 
—

 
—

 
—

 
—

 
—

 
—

Residential construction
 
—

 
—

 
—

 
—

 
—

 
—

 
—

Commercial loans
 
22,777

 
26,602

 
2,679

 
21,465

 
74

 
20,124

 
80

Consumer loans
 
19

 
19

 
—

 
20

 
—

 
20

 
—

 
 
$
56,906

 
$
65,454

 
$
6,095

 
$
55,171

 
$
537

 
$
61,291

 
$
1,523


 
 
December 31, 2012
 
Year ended December 31, 2012
(in thousands)
 
Recorded
investment
 
Unpaid
principal
balance
 
Related
allowance
 
Average
recorded
investment
 
Interest
income
recognized*
With no related allowance recorded
 
 

 
 

 
 

 
 

 
 

Real estate loans:
 
 

 
 

 
 

 
 

 
 

Residential 1-4 family
 
$
14,633

 
$
20,247

 
$
—

 
$
16,688

 
$
294

Commercial real estate
 
2,929

 
2,929

 
—

 
7,771

 
237

Home equity line of credit
 
581

 
1,374

 
—

 
632

 
1

Residential land
 
7,691

 
10,624

 
—

 
21,589

 
1,185

Commercial construction
 
—

 
—

 
—

 
—

 
—

Residential construction
 
—

 
—

 
—

 
—

 
—

Commercial loans
 
4,265

 
6,994

 
—

 
24,605

 
986

Consumer loans
 
21

 
21

 
—

 
23

 
—

 
 
30,120

 
42,189

 
—

 
71,308

 
2,703

With an allowance recorded
 
 

 
 

 
 

 
 

 
 

Real estate loans:
 
 

 
 

 
 

 
 

 
 

Residential 1-4 family
 
4,803

 
4,803

 
384

 
4,204

 
250

Commercial real estate
 
3,821

 
3,840

 
535

 
1,295

 
—

Home equity line of credit
 
—

 
—

 
—

 
26

 
—

Residential land
 
9,984

 
10,364

 
3,221

 
7,428

 
575

Commercial construction
 
—

 
—

 
—

 
—

 
—

Residential construction
 
—

 
—

 
—

 
—

 
—

Commercial loans
 
16,033

 
16,912

 
2,659

 
8,429

 
23

Consumer loans
 
—

 
—

 
—

 
—

 
—

 
 
34,641

 
35,919

 
6,799

 
21,382

 
848

Total
 
 

 
 

 
 

 
 

 
 

Real estate loans:
 
 

 
 

 
 

 
 

 
 

Residential 1-4 family
 
19,436

 
25,050

 
384

 
20,892

 
544

Commercial real estate
 
6,750

 
6,769

 
535

 
9,066

 
237

Home equity line of credit
 
581

 
1,374

 
—

 
658

 
1

Residential land
 
17,675

 
20,988

 
3,221

 
29,017

 
1,760

Commercial construction
 
—

 
—

 
—

 
—

 
—

Residential construction
 
—

 
—

 
—

 
—

 
—

Commercial loans
 
20,298

 
23,906

 
2,659

 
33,034

 
1,009

Consumer loans
 
21

 
21

 
—

 
23

 
—

 
 
$
64,761

 
$
78,108

 
$
6,799

 
$
92,690

 
$
3,551

 
___________________________________________
*                 Since loan was classified as impaired.
Schedule of loan modifications
Loan modifications that occurred were as follows for the indicated periods:
 
 
 
Three months ended September 30, 2013
 
Nine months ended September 30, 2013
 
 
Number of
 
Outstanding recorded investment
 
Number of
 
Outstanding recorded investment
(dollars in thousands)
 
contracts
 
Pre-modification
 
Post-modification
 
contracts
 
Pre-modification
 
Post-modification
Troubled debt restructurings
 
 
 
 

 
 

 
 
 
 

 
 

Real estate loans:
 
 
 
 

 
 

 
 
 
 

 
 

Residential 1-4 family
 
14
 
$
2,864

 
$
2,874

 
32
 
$
8,631

 
$
8,712

Commercial real estate
 
—
 
—

 
—

 
—
 
—

 
—

Home equity line of credit
 
—
 
—

 
—

 
4
 
462

 
215

Residential land
 
9
 
2,943

 
2,943

 
16
 
4,983

 
4,974

Commercial loans
 
3
 
2,076

 
2,076

 
6
 
2,790

 
2,790

Consumer loans
 
—
 
—

 
—

 
—
 
—

 
—

 
 
26
 
$
7,883

 
$
7,893

 
58
 
$
16,866

 
$
16,691

 
 
 
Three months ended September 30, 2012
 
Nine months ended September 30, 2012
 
 
Number of
 
Outstanding recorded investment
 
Number of
 
Outstanding recorded investment
(dollars in thousands)
 
contracts
 
Pre-modification
 
Post-modification
 
contracts
 
Pre-modification
 
Post-modification
Troubled debt restructurings
 
 
 
 

 
 

 
 
 
 

 
 

Real estate loans:
 
 
 
 

 
 

 
 
 
 

 
 

Residential 1-4 family
 
4
 
$
1,415

 
$
1,332

 
26
 
$
5,884

 
$
5,614

Commercial real estate
 
—
 
—

 
—

 
—
 
—

 
—

Home equity line of credit
 
—
 
—

 
—

 
—
 
—

 
—

Residential land
 
6
 
1,168

 
1,001

 
21
 
4,676

 
4,022

Commercial loans
 
4
 
517

 
517

 
18
 
2,546

 
2,546

Consumer loans
 
—
 
—

 
—

 
—
 
—

 
—

 
 
14
 
$
3,100

 
$
2,850

 
65
 
$
13,106

 
$
12,182
Schedule of loans modified in TDRS that experienced a payment default of 90 days or more, and for which payment default occurred within one year of the modification
Loans modified in TDRs that experienced a payment default of 90 days or more in 2013 and 2012, and for which the payment default occurred within one year of the modification, were as follows:
 
 
Three months ended September 30, 2013
 
Nine months ended September 30, 2013
(dollars in thousands)
 
Number of contracts
 
Recorded investment
 
Number of contracts
 
Recorded investment
Troubled debt restructurings that
 subsequently defaulted
 
 
 
 
 
 
 
 
Real estate loans:
 
 
 
 

 
 
 
 

Residential 1-4 family
 
—
 
$
—

 
—
 
$
—

Commercial real estate
 
—
 
—

 
—
 
—

Home equity line of credit
 
1
 
67

 
1
 
67

Residential land
 
—
 
—

 
—
 
—

Commercial loans
 
3
 
669

 
3
 
669

Consumer loans
 
—
 
—

 
—
 
—

 
 
4
 
$
736

 
4
 
$
736


 
 
 
Three months ended September 30, 2012
 
Nine months ended September 30, 2012
(dollars in thousands)
 
Number of contracts
 
Recorded investment
 
Number of contracts
 
Recorded investment
Troubled debt restructurings that
 subsequently defaulted
 
 
 
 
 
 
 
 
Real estate loans:
 
 
 
 

 
 
 
 

Residential 1-4 family
 
—
 
$
—

 
—
 
$
—

Commercial real estate
 
—
 
—

 
—
 
—

Home equity line of credit
 
—
 
—

 
—
 
—

Residential land
 
—
 
—

 
—
 
—

Commercial loans
 
—
 
—

 
1
 
488

Consumer loans
 
—
 
—

 
—
 
—

 
 
—
 
$
—

 
1
 
$
488