Loans Receivable, net (Tables)

3 Months Ended

Mar. 31, 2013

Loans Receivable, net [Abstract]

Loans receivables, net

	March 31, 2013			December 31, 2012
	(In thousands)
Commercial mortgage loans	$	124,102		$	128,401
SBIC commercial mortgage loans		51,613			47,621
SBA 7(a) loans, subject to secured borrowings		37,095			37,909
SBA 7(a) loans		31,211			28,196
Total loans receivable		244,021			242,127
Adjusted by:
Deferred capitalized costs, net		304			277
Loan loss reserves		(3,654	)		(3,413	)
Loans receivable, net	$	240,671		$	238,991

Aging of loans Receivable

March 31, 2013
Category	Totals				Commercial Mortgage Loans				SBA 7(a) Loans
	(Dollars in thousands)
Current (1)	$	201,280	97.3	%	$	170,770	97.2	%	$	30,510	97.8	%
Between 30 and 59 days delinquent		2,393	1.2	%		1,904	1.1	%		489	1.5	%
Between 60 and 89 days delinquent		—	—			—	—			—	—
Over 89 days delinquent (2)		3,253	1.5	%		3,041	1.7	%		212	0.7	%
	$	206,926	100.0	%	$	175,715	100.0	%	$	31,211	100.0	%

(1) Includes $8.5 million of loans classified as troubled debt restructurings which were current at March 31, 2013 based on revised note terms.

(2) Loans are classified as troubled debt restructurings. We are currently in the process of foreclosing on the collateral underlying these loans – three limited service hospitality properties.

December 31, 2012
Category	Totals				Commercial Mortgage Loans				SBA 7(a) Loans
	(Dollars in thousands)
Current (1)	$	198,282	97.1	%	$	170,429	96.8	%	$	27,853	98.8	%
Between 30 and 59 days delinquent (2)		2,824	1.4	%		2,482	1.4	%		342	1.2	%
Between 60 and 89 days delinquent		1	—			—	—			1	—
Over 89 days delinquent (3)		3,111	1.5	%		3,111	1.8	%		—	—
	$	204,218	100.0	%	$	176,022	100.0	%	$	28,196	100.0	%

(1) Includes $7.6 million of loans classified as troubled debt restructurings which were current at December 31, 2012 based on revised note terms.

(2) Includes $2.3 million of loans classified as troubled debt restructurings. We are currently in the process of foreclosing on the collateral underlying an SBA 7(a) Program loan – a limited service hospitality property – with a principal balance of $211,000.

(3) Loans are classified as troubled debt restructurings. We are currently in the process of foreclosing on the collateral underlying these loans – two limited service hospitality properties.

Classified loans receivable

	March 31, 2013
	Totals		%			Commercial Mortgage Loans		%			SBA 7(a) Loans		%
	(Dollars in thousands)
Satisfactory	$	190,365		92.0	%	$	160,394		91.3	%	$	29,971		96.0	%
OAEM		1,898		0.9	%		1,423		0.8	%		475		1.5	%
Substandard		11,136		5.4	%		10,857		6.2	%		279		0.9	%
Doubtful		3,527		1.7	%		3,041		1.7	%		486		1.6	%
	$	206,926		100.0	%	$	175,715		100.0	%	$	31,211		100.0	%

	December 31, 2012
	Totals		%			Commercial Mortgage Loans		%			SBA 7(a) Loans		%
	(Dollars in thousands)
Satisfactory	$	187,749		92.0	%	$	159,994		90.9	%	$	27,755		98.5	%
OAEM		81		—			—		—			81		0.3	%
Substandard		13,043		6.4	%		12,917		7.3	%		126		0.4	%
Doubtful		3,345		1.6	%		3,111		1.8	%		234		0.8	%
	$	204,218		100.0	%	$	176,022		100.0	%	$	28,196		100.0	%

Loan loss reserves

	Three Months Ended March 31, 2013
	Total			Commercial Mortgage Loans			SBA 7(a) Loans
	(In thousands)
Balance, beginning of year	$	3,413		$	2,850		$	563
Provision for loan losses		301			163			138
Reduction of loan losses		(59	)		(59	)		—
Principal balances written-off		(1	)		—			(1	)
Balance, end of period	$	3,654		$	2,954		$	700

	Three Months Ended March 31, 2012
	Total			Commercial Mortgage Loans			SBA 7(a) Loans
	(In thousands)
Balance, beginning of year	$	1,812		$	1,329		$	483
Provision for loan losses		482			410			72
Reduction of loan losses		(7	)		(7	)		—
Principal balances written-off		(15	)		—			(15	)
Balance, end of period	$	2,272		$	1,732		$	540

Loans considered to be impaired loans

	March 31, 2013
	Total		Commercial Mortgage Loans		SBA 7(a) Loans
	(In thousands)
Impaired loans requiring reserves (1)	$	10,893	$	9,413	$	1,480
Impaired loans expected to be fully recoverable (1)		2,208		2,089		119
Total impaired loans (2)	$	13,101	$	11,502	$	1,599
Loan loss reserves	$	1,730	$	1,488	$	242
	December 31, 2012
	Total		Commercial Mortgage Loans		SBA 7(a) Loans
	(In thousands)
Impaired loans requiring reserves (1)	$	10,927	$	10,049	$	878
Impaired loans expected to be fully recoverable (1)		2,244		2,123		121
Total impaired loans (3)	$	13,171	$	12,172	$	999
Loan loss reserves	$	1,535	$	1,382	$	153

(1) Balances represent our recorded investment. Includes loans classified as troubled debt restructurings.

(2) The unpaid principal balance of our impaired commercial mortgage loans was $12,176,000 at March 31, 2013. The unpaid principal balance of our impaired SBA 7(a) loans (excluding the government guaranteed portion) was $494,000 at March 31, 2013.

(3) The unpaid principal balance of our impaired commercial mortgage loans was $12,704,000 at December 31, 2012. The unpaid principal balance of our impaired SBA 7(a) loans (excluding the government guaranteed portion) was $362,000 at December 31, 2012.

	Three Months Ended March 31, 2013						Three Months Ended March 31, 2012
	Total		Commercial Mortgage Loans		SBA 7(a) Loans		Total		Commercial Mortgage Loans		SBA 7(a) Loans
	(In thousands)
Average impaired loans	$	12,842	$	11,707	$	1,135	$	8,261	$	7,726	$	535
Interest income on impaired loans	$	109	$	89	$	20	$	89	$	87	$	2

Troubled Debt Restructurings

	March 31, 2013
	Commercial Mortgage Loans				SBA 7(a) Loan
	Recorded Investment		Unpaid Principal Balance		Recorded Investment		Unpaid Principal Balance
	(In thousands)
Troubled debt restructurings requiring reserves (1)	$	9,393	$	10,035	$	212	$	237
Troubled debt restructurings without reserves		2,093		2,141		—		—
Total troubled debt restructurings	$	11,486	$	12,176	$	212	$	237
Number of loans		8				1
Loan loss reserves	$	1,488			$	131

	December 31, 2012
	Commercial Mortgage Loans				SBA 7(a) Loan
	Recorded Investment		Unpaid Principal Balance		Recorded Investment		Unpaid Principal Balance
	(In thousands)
Troubled debt restructurings requiring reserves (1)	$	10,049	$	10,531	$	854	$	846
Troubled debt restructurings without reserves		2,123		2,172		—		—
Total troubled debt restructurings	$	12,172	$	12,703	$	854	$	846
Number of loans		8				1
Loan loss reserves	$	1,382			$	130

(1) At December 31, 2012, the SBA 7(a) loan recorded investment and unpaid principal balance include the government guaranteed portion of $634,000 on which we have no credit loss exposure. However, during 2013, the government guaranteed portion of $634,000 was reclassified from secured borrowings to loans receivable, net, representing a non-cash transaction since it was repurchased by the SBA from the secondary market. Therefore, at March 31, 2013, the SBA 7(a) loan recorded investment and unpaid principal balance do not include the government guaranteed portion of $634,000.