LOANS (Tables)

12 Months Ended

Dec. 31, 2014

Receivables [Abstract]

Schedule of Portfolio of Loans

Portfolio loans consist of the following:

	December 31,			December 31,
	2014			2013
	(Dollars in thousands)
Commercial loans
Multifamily	$	60,546		$	54,485
Nonresidential		121,595			131,251
Land		9,484			9,683
Construction		16,064			4,452
Secured		45,088			25,714
Unsecured		134			427
Total commercial loans		252,911			226,012
Residential mortgage loans
One-to four-family		694,105			585,025
Construction		37,113			48,897
Total residential mortgage loans		731,218			633,922
Consumer loans
Home equity		154,776			159,795
Auto		5,902			5,669
Marine		3,917			4,308
Recreational vehicle		14,054			17,347
Other		2,105			2,112
Total consumer loans		180,754			189,231
Total loans		1,164,883			1,049,165
Less:
Allowance for loan losses		17,687			21,116
Deferred loan fees, net		(897	)		(1,143	)
Total		16,790			19,973
Loans, net	$	1,148,093		$	1,029,192

Number of Outstanding Commitments to Extend Credit

Home Savings normally has a number of outstanding commitments to extend credit.

	December 31,
	2014				2013
	Fixed Rate		Variable Rate		Fixed Rate		Variable Rate
	(Dollars in thousands)
Commitments to make loans	$	44,192	$	17,539	$	38,386	$	10,883
Undisbursed loans in process		480		86,736		—		67,295
Unused lines of credit		13,995		93,802		18,852		82,365

Investment in Loans by Portfolio Segment and Based on Impairment

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, 2014 and December 31, 2013 and activity for the years ended December 31, 2014, 2013 and 2012. In accordance with GAAP, the net losses associated with loans sold as part of the bulk asset sale in 2012 were recorded as net charge-offs through the allowance for loan losses.

	Commercial Loans			Residential Loans			Consumer Loans			Total
	(Dollars in thousands)
2014
Beginning balance	$	6,984		$	9,830		$	4,302		$	21,116
Provision		(649	)		(550	)		(72	)		(1,271	)
Charge-offs		(1,656	)		(1,005	)		(1,578	)		(4,239	)
Recoveries		1,011			242			828			2,081
Ending balance	$	5,690		$	8,517		$	3,480		$	17,687
Period-end amount allocated to:
Loans indivdually evaluated for impairment	$	717		$	1,751		$	842		$	3,310
Loans collectively evaluated for impairment		4,973			6,766			2,638			14,377
Ending balance	$	5,690		$	8,517		$	3,480		$	17,687
Period-end balances:
Loans indivdually evaluated for impairment	$	14,845		$	19,209		$	11,843		$	45,897
Loans collectively evaluated for impairment		238,066			712,009			168,911			1,118,986
Ending balance	$	252,911		$	731,218		$	180,754		$	1,164,883

	Commercial Loans			Residential Loans			Consumer Loans			Total
	(Dollars in thousands)
2013
Beginning balance	$	9,156		$	7,515		$	4,459		$	21,130
Provision		(491	)		3,598			1,009			4,116
Charge-offs		(5,208	)		(1,536	)		(1,883	)		(8,627	)
Recoveries		3,527			253			717			4,497
Ending balance	$	6,984		$	9,830		$	4,302		$	21,116
Period-end amount allocated to:
Loans indivdually evaluated for impairment	$	791		$	1,675		$	859		$	3,325
Loans collectively evaluated for impairment		6,193			8,155			3,443			17,791
Ending balance	$	6,984		$	9,830		$	4,302		$	21,116
Period-end balances:
Loans indivdually evaluated for impairment	$	14,154		$	20,206		$	13,821		$	48,181
Loans collectively evaluated for impairment		211,858			613,716			175,410			1,000,984
Ending balance	$	226,012		$	633,922		$	189,231		$	1,049,165

	Commercial Loans			Residential Loans			Consumer Loans			Total
	(Dollars in thousands)
2012
Beginning balance	$	29,427		$	8,268		$	4,576		$	42,271
Provision		20,306			16,298			2,721			39,325
Charge-offs		(19,049	)		(2,479	)		(2,740	)		(24,268	)
Recoveries		1,056			180			724			1,960
Net (charge-offs)recovery from asset sale		(22,584	)		(14,752	)		(822	)		(38,158	)
Ending balance	$	9,156		$	7,515		$	4,459		$	21,130

Presentation of Loans Individually Evaluated for Impairment by Class

The following table presents loans individually evaluated for impairment by class of loans as of and for the year ended December 31, 2014:

Impaired Loans

(Dollars in thousands)

	Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses Allocated		Average Recorded Investment		Interest Income Recognized		Cash Basis Income Recognized
With no specific allowance recorded
Commercial loans
Multifamily	$	185	$	85	$	—	$	87	$	—	$	—
Nonresidential		7,201		5,582		—		4,248		256		363
Land		3,958		532		—		521		—		—
Construction		1,126		188		—		552		—		—
Secured		3,903		3,702		—		3,706		—		2
Unsecured		3,258		—		—		—		—		90
Total commercial loans		19,631		10,089		—		9,114		256		455
Residential mortgage loans
One-to four-family		6,015		4,518		—		5,287		77		175
Construction		—		—		—		—		—		—
Total residential mortgage loans		6,015		4,518		—		5,287		77		175
Consumer loans
Home equity		1,901		1,262		—		1,757		29		71
Auto		47		37		—		66		1		4
Marine		151		151				155		—		9
Recreational vehicle		124		81		—		181		3		6
Other		—		—		—		3		—		—
Total consumer loans		2,223		1,531		—		2,162		33		90
Total	$	27,869	$	16,138	$	—	$	16,563	$	366	$	720
With a specific allowance recorded
Commercial loans
Multifamily	$	33	$	8	$	6	$	293	$	—	$	—
Nonresidential		3,944		3,561		615		2,408		—		10
Land		—		—		—		—		—		—
Construction		2,815		863		93		1,682		—		—
Secured		324		324		3		324		—		—
Unsecured		—		—		—		—		—		—
Total commercial loans		7,116		4,756		717		4,707		—		10
Residential mortgage loans
One-to four-family		14,691		14,691		1,751		15,039		561		581
Construction		—		—		—		—		—		—
Total residential mortgage loans		14,691		14,691		1,751		15,039		561		581
Consumer loans
Home equity		9,577		9,577		722		10,007		470		487
Auto		7		6		1		8		—		—
Marine		—		—		—		—		—		—
Recreational vehicle		729		729		119		765		23		23
Other		—		—		—		—		—		—
Total consumer loans		10,313		10,312		842		10,780		493		510
Total		32,120		29,759		3,310		30,526		1,054		1,101
Total impaired loans	$	59,989	$	45,897	$	3,310	$	47,089	$	1,420	$	1,821

The following table presents loans individually evaluated for impairment by class of loans as of and for the year ended December 31, 2013:

Impaired Loans

(Dollars in thousands)

	Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses Allocated		Average Recorded Investment		Interest Income Recognized		Cash Basis Income Recognized
With no specific allowance recorded
Commercial loans
Multifamily	$	662	$	567	$	—	$	638	$	2	$	13
Nonresidential		6,451		5,311		—		5,377		19		63
Land		3,913		487		—		1,290		—		—
Construction		1,433		825		—		1,381		—		—
Secured		4,414		4,044		—		3,506		—		11
Unsecured		4,067		—		—		179		1		82
Total commercial loans		20,940		11,234		—		12,371		22		169
Residential mortgage loans
One-to four-family		13,321		11,309		—		14,679		361		449
Construction		—		—		—		—		—		—
Total residential mortgage loans		13,321		11,309		—		14,679		361		449
Consumer loans
Home equity		6,458		5,808		—		8,404		234		285
Auto		83		66		—		45		1		6
Marine		160		160				174		—		9
Recreational vehicle		429		386		—		685		22		26
Other		2		2		—		2		—		—
Total consumer loans		7,132		6,422		—		9,310		257		326
Total	$	41,393	$	28,965	$	—	$	36,360	$	640	$	944
With a specific allowance recorded
Commercial loans
Multifamily	$	185	$	85	$	25	$	330	$	—	$	—
Nonresidential		908		568		86		3,835		—		7
Land		—		—		—		532		—		—
Construction		3,895		2,267		680		2,559		—		1
Secured		—		—		—		102		—		—
Unsecured		—		—		—		—		—		—
Total commercial loans		4,988		2,920		791		7,358		—		8
Residential mortgage loans
One-to four-family		8,897		8,897		1,675		4,077		342		342
Construction		—		—		—		—		—		—
Total residential mortgage loans		8,897		8,897		1,675		4,077		342		342
Consumer loans
Home equity		6,743		6,743		719		2,369		303		303
Auto		—		—		—		—		—		—
Marine		—		—		—		—		—		—
Recreational vehicle		656		656		140		346		16		16
Other		—		—		—		—		—		—
Total consumer loans		7,399		7,399		859		2,715		319		319
Total		21,284		19,216		3,325		14,150		661		669
Total impaired loans	$	62,677	$	48,181	$	3,325	$	50,510	$	1,301	$	1,613

The following table presents loans individually evaluated for impairment by class of loans as of and for the year ended December 31, 2012:

Impaired Loans

(Dollars in thousands)

	Average Recorded Investment		Interest Income Recognized		Cash Basis Income Recognized
With no specific allowance recorded
Commercial loans
Multifamily	$	2,581	$	36	$	63
Nonresidential		19,425		21		68
Land		4,918		—		—
Construction		6,051		—		14
Secured		1,480		—		124
Unsecured		261		2		11
Total commercial loans		34,716		59		280
Residential mortgage loans
One-to four-family		22,526		613		715
Construction		—		—		—
Total residential mortgage loans		22,526		613		715
Consumer loans
Home equity		5,571		265		326
Auto		52		1		6
Marine		268		—		13
Recreational vehicle		659		—		35
Other		5		—		—
Total consumer loans		6,555		266		380
Total	$	63,797	$	938	$	1,375
With a specific allowance recorded
Commercial loans
Multifamily	$	2,390	$	—	$	—
Nonresidential		17,420		19		17
Land		2,603		—		57
Construction		9,511		—		2
Secured		487		—		3
Unsecured		—		—		—
Total commercial loans		32,411		19		79
Residential mortgage loans
One-to four-family		1,242		—		—
Construction		—		—		—
Total residential mortgage loans		1,242		—		—
Consumer loans
Home equity		—		—		—
Auto		—		—		—
Marine		—		—		—
Recreational vehicle		27		—		—
Other		—		—		—
Total consumer loans		27		—		—
Total		33,680		19		79
Total impaired loans	$	97,477	$	957	$	1,454

Presentation of Recorded Investment in Nonaccrual Loans and Loans Past Due Over 90 Days and Still on Accrual by Class of Loans

The following tables present the recorded investment in nonaccrual and loans past due over 90 days and still on accrual by class of loans as of December 31, 2014:

Nonaccrual Loans and Loans Past Due Over 90 Days and Still Accruing

As of December 31, 2014

	Nonaccrual		Loans past due over 90 days and still accruing
	(Dollars in thousands)
Commercial loans
Multifamily	$	93	$	—
Nonresidential		5,781		—
Land		531		—
Construction		1,051		—
Secured		4,016		—
Unsecured		—		—
Total commercial loans		11,472		—
Residential mortgage loans
One-to four-family		6,816		—
Construction		—		—
Total residential mortgage loans		6,816		—
Consumer Loans
Home equity		1,792		—
Auto		66		—
Marine		119		—
Recreational vehicle		184		—
Other		2		—
Total consumer loans		2,163		—
Total nonaccrual loans and loans past due over 90 days and still accruing	$	20,451	$	—

The following tables present the recorded investment in nonaccrual and loans past due over 90 days and still on accrual by class of loans as of December 31, 2013:

Nonaccrual Loans and Loans Past Due Over 90 Days and Still Accruing

As of December 31, 2013

	Nonaccrual		Loans past due over 90 days and still accruing
	(Dollars in thousands)
Commercial loans
Multifamily	$	641	$	—
Nonresidential		5,560		—
Land		496		—
Construction		3,084		—
Secured		4,028		—
Unsecured		130		—
Total commercial loans		13,939		—
Residential mortgage loans
One-to four-family		6,356		—
Construction		—		—
Total residential mortgage loans		6,356		—
Consumer Loans
Home equity		2,726		45
Auto		110		—
Marine		136		—
Recreational vehicle		263		—
Other		13		—
Total consumer loans		3,248		45
Total nonaccrual loans and loans past due over 90 days and still accruing	$	23,543	$	45

Presentation of Age Analysis of Past-Due Loans, Segregated by Class of Loans

The following tables present an age analysis of past-due loans, segregated by class of loans as of December 31, 2014:

Past Due Loans

(Dollars in thousands)

	30-59 Days Past Due		60-89 Days Past Due		Greater than 90 Days Past Due		Total Past Due		Current Loans		Total Loans
Commercial loans
Multifamily	$	—	$	—	$	93	$	93	$	60,453	$	60,546
Nonresidential		—		—		3,891		3,891		117,704		121,595
Land		—		—		531		531		8,953		9,484
Construction		—		—		1,051		1,051		15,013		16,064
Secured		—		—		4,016		4,016		41,072		45,088
Unsecured		—		—		—		—		134		134
Total commercial loans		—		—		9,582		9,582		243,329		252,911
Residential mortgage loans
One-to four-family		2,279		605		4,856		7,740		686,365		694,105
Construction		—		—		—		—		37,113		37,113
Total residential mortgage loans		2,279		605		4,856		7,740		723,478		731,218
Consumer Loans:
Home equity		588		183		1,531		2,302		152,474		154,776
Automobile		21		—		30		51		5,851		5,902
Marine		—		686		—		686		3,231		3,917
Recreational vehicle		452		109		18		579		13,475		14,054
Other		3		4		1		8		2,097		2,105
Total consumer loans		1,064		982		1,580		3,626		177,128		180,754
Total loans	$	3,343	$	1,587	$	16,018	$	20,948	$	1,143,935	$	1,164,883

The following tables present an age analysis of past-due loans, segregated by class of loans as of December 31, 2013:

Past Due Loans

(Dollars in thousands)

	30-59 Days Past Due		60-89 Days Past Due		Greater than 90 Days Past Due		Total Past Due		Current Loans		Total Loans
Commercial loans
Multifamily	$	359	$	—	$	190	$	549	$	53,936	$	54,485
Nonresidential		13		—		5,456		5,469		125,782		131,251
Land		—		36		496		532		9,151		9,683
Construction		—		—		3,084		3,084		1,368		4,452
Secured		—		11		4,017		4,028		21,686		25,714
Unsecured		—		—		130		130		297		427
Total commercial loans		372		47		13,373		13,792		212,220		226,012
Residential mortgage loans
One-to four-family		1,482		379		4,687		6,548		578,477		585,025
Construction		—		—		—		—		48,897		48,897
Total residential mortgage loans		1,482		379		4,687		6,548		627,374		633,922
Consumer Loans:
Home equity		541		452		2,111		3,104		156,691		159,795
Automobile		5		—		49		54		5,615		5,669
Marine		—		—		—		—		4,308		4,308
Recreational vehicle		117		199		3		319		17,028		17,347
Other		1		7		10		18		2,094		2,112
Total consumer loans		664		658		2,173		3,495		185,736		189,231
Total loans	$	2,518	$	1,084	$	20,233	$	23,835	$	1,025,330	$	1,049,165

Loans by Class Modified as TDRs

The following table presents loans by class modified as TDRs that occurred during the year ended December 31, 2014:

	Number of Loans		Pre-Modification Outstanding Recorded Investment		Post-Modification Recorded Investment
			(In thousands)
Commercial loans
Multifamily		—	$	—	$	—
Nonresidential		1		120		120
Land		—		—		—
Construction		—		—		—
Secured		—		—		—
Unsecured		—		—		—
Total commercial loans		1		120		120
Residential mortgage loans
One-to four-family		29		2,385		2,447
Construction		—		—		—
Total residential mortgage loans		29		2,385		2,447
Consumer loans
Home equity		27		1,449		1,452
Auto		—		—		—
Marine		—		—		—
Recreational vehicle		—		—		—
Other		—		—		—
Total consumer loans		27		1,449		1,452
Total restructured loans		57	$	3,954	$	4,019

The TDRs described above increased the allowance for loan losses by $193,000, and resulted in $73,000 charge-offs during the twelve months ended December 31, 2014.

The following table presents loans by class modified as TDRs that occurred during the year ended December 31, 2013:

	Number of Loans		Pre-Modification Outstanding Recorded Investment		Post-Modification Recorded Investment
			(Dollars in thousands)
Commercial loans
Multifamily		1	$	469	$	469
Nonresidential		1		41		41
Land		2		2,127		487
Construction		1		942		823
Secured		—		—		—
Unsecured		—		—		—
Total commercial loans		5		3,579		1,820
Residential mortgage loans
One-to four-family		42		3,568		3,381
Construction		—		—		—
Total residential mortgage loans		42		3,568		3,381
Consumer loans
Home equity		110		4,556		4,487
Auto		—		—		—
Marine		—		—		—
Recreational vehicle		4		791		804
Other		—		—		—
Total consumer loans		114		5,347		5,291
Total TDRs		161	$	12,494	$	10,492

The TDRs described above increased the allowance for loan losses by $951,000, and resulted in $1.8 million charge-offs during the twelve months ended December 31, 2013.

The following table presents loans by class modified as TDRs that occurred during the year ended December 31, 2012:

	Number of Loans		Pre-Modification Outstanding Recorded Investment		Post-Modification Recorded Investment
			(Dollars in thousands)
Commercial loans
Multifamily		6	$	1,439	$	1,438
Nonresidential		1		424		424
Land		—		—		—
Construction		3		853		830
Secured		—		—		—
Unsecured		1		446		446
Total commercial loans		11		3,162		3,138
Residential mortgage loans
One-to four-family		114		6,618		5,574
Construction		—		—		—
Total residential mortgage loans		114		6,618		5,574
Consumer loans
Home equity		86		6,951		7,033
Auto		—		—		—
Marine		—		—		—
Recreational vehicle		—		—		—
Other		—		—		—
Total consumer loans		86		6,951		7,033
Total restructured loans		211	$	16,731	$	15,745

Loans by Class Modified as TDRs with Payment Default

The following table presents loans by class modified as TDRs for which there was a payment default within twelve months following the modification during the period ended December 31, 2014:

	Number of loans		Recorded Investment
			(Dollars in thousands)
Commercial loans
Multifamily		—	$	—
Nonresidential		—		—
Land		—		—
Construction		—		—
Secured		—		—
Unsecured		—		—
Total commercial loans		—		—
Residential mortgage loans
One-to four-family		3		440
Construction		—		—
Total residential mortgage loans		3		440
Consumer loans
Home equity		2		90
Auto		—		—
Marine		—		—
Recreational vehicle		—		—
Other		—		—
Total consumer loans		2		90
Total restructured loans		5	$	530

The following table presents loans by class modified as TDRs for which there was a payment default within twelve months following the modification during the period ended December 31, 2013:

	Number of loans		Recorded Investment
			(Dollars in thousands)
Commercial loans
Multifamily		1	$	463
Nonresidential		—		—
Land		2		487
Construction		1		623
Secured		—		—
Unsecured		—		—
Total commercial loans		4		1,573
Residential mortgage loans
One-to four-family		4		576
Construction		—		—
Total residential mortgage loans		4		576
Consumer loans
Home equity		6		207
Auto		—		—
Marine		—		—
Recreational vehicle		2		184
Other		—		—
Total consumer loans		8		391
Total restructured loans		16	$	2,540

Risk Category of Loans by Class of Loans

As of December 31, 2014 and December 31, 2013, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows:

December 31, 2014

(Dollars in thousands)

	Unclassified				Classified
	Unclassified		Special Mention		Substandard		Doubtful		Loss		Total Classified		Total Loans
Commercial Loans
Multifamily	$	53,485	$	4,134	$	2,927	$	—	$	—	$	2,927	$	60,546
Nonresidential		92,074		12,290		17,231		—		—		17,231		121,595
Land		8,952		—		532		—		—		532		9,484
Construction		15,013		—		1,051		—		—		1,051		16,064
Secured		39,480		900		4,708		—		—		4,708		45,088
Unsecured		22		—		112		—		—		112		134
Total commercial loans		209,026		17,324		26,561		—		—		26,561		252,911
Residential mortgage loans
One-to four-family		684,779		939		8,387		—		—		8,387		694,105
Construction		37,113		—		—		—		—		—		37,113
Total residential mortgage loans		721,892		939		8,387		—		—		8,387		731,218
Consumer Loans
Home equity		152,599		—		2,177		—		—		2,177		154,776
Auto		5,829		10		63		—		—		63		5,902
Marine		3,766		—		151		—		—		151		3,917
Recreational vehicle		13,846		—		208		—		—		208		14,054
Other		2,099		—		6		—		—		6		2,105
Total consumer loans		178,139		10		2,605		—		—		2,605		180,754
Total loans	$	1,109,057	$	18,273	$	37,553	$	—	$	—	$	37,553	$	1,164,883

December 31, 2013

(Dollars in thousands)

	Unclassified				Classified
	Unclassified		Special Mention		Substandard		Doubtful		Loss		Total Classified		Total Loans
Commercial Loans
Multifamily	$	48,918	$	2,962	$	2,605	$	—	$	—	$	2,605	$	54,485
Nonresidential		90,115		12,222		28,914		—		—		28,914		131,251
Land		9,069		127		487		—		—		487		9,683
Construction		1,360		—		3,092		—		—		3,092		4,452
Secured		19,714		190		5,810		—		—		5,810		25,714
Unsecured		68		—		359		—		—		359		427
Total commercial loans		169,244		15,501		41,267		—		—		41,267		226,012
Residential mortgage loans
One-to four-family		575,903		404		8,718		—		—		8,718		585,025
Construction		48,897		—		—		—		—		—		48,897
Total residential mortgage loans		624,800		404		8,718		—		—		8,718		633,922
Consumer Loans
Home equity		156,795		46		2,954		—		—		2,954		159,795
Auto		5,548		5		116		—		—		116		5,669
Marine		4,148		—		160		—		—		160		4,308
Recreational vehicle		17,066		—		281		—		—		281		17,347
Other		2,099		—		13		—		—		13		2,112
Total consumer loans		185,656		51		3,524		—		—		3,524		189,231
Total loans	$	979,700	$	15,956	$	53,509	$	—	$	—	$	53,509	$	1,049,165

Loans to Officers and/or Directors

The following describes loans to officers and/or directors of United Community and Home Savings:

	(Dollars in thousands)
Balance as of December 31, 2013	$	720
New loans to officers and/or directors		—
Loan payments during 2014		(191	)
Reductions due to changes in officers and/or directors		(2	)
Balance as of December 31, 2014	$	527