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Loans Receivable, net (Tables)
 12 Months Ended
Dec. 31, 2013
Receivables [Abstract]  
Loans Receivables, Net

Loans receivable, net, consisted of the following:

 

     December 31,  
     2013      2012  
     (In thousands)  

Commercial mortgage loans

     $ 119,030           $ 128,401      

SBIC commercial mortgage loans

      52,848            47,621      

SBA 7(a) loans, subject to secured borrowings

      37,403            37,909      

SBA 7(a) loans

      30,325            28,196      
  

 

 

     

 

 

  

Total loans receivable

      239,606            242,127      

Add/(deduct):

      

Deferred capitalized costs, net

      267            277      

Loan loss reserves

      (3,284)           (3,413)     
  

 

 

     

 

 

  

Loans receivable, net

     $ 236,589           $ 238,991      
  

 

 

     

 

 

  
Aging of Loans Receivable

The following tables represent an aging of our Loans Receivable Subject To Credit Risk (loans receivable less SBA 7(a) loans, subject to secured borrowings, as the SBA has guaranteed payment of principal on these loans). Balances are prior to loan loss reserves and deferred capitalized costs, net.

December 31, 2013

  

Category

    Totals      Commercial
Mortgage
Loans		      SBA 7(a)
Loans		  
     (Dollars in thousands)  

Current (1)

      $ 199,307           98.5%          $ 169,570           98.6%          $ 29,737           98.1%    

Between 29 and 59 days delinquent (2)

      1,556           0.8%          968           0.6%          588           1.9%    

Between 60 and 89 days delinquent

      -           -           -           -           -           -     

Over 89 days delinquent (3)

      1,340           0.7%          1,340           0.8%          -           -     
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
     $   202,203             100.0%          $   171,878             100.0%          $   30,325             100.0%    
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

(1)

Includes $5.8 million of commercial mortgage loans classified as troubled debt restructurings which are current at December 31, 2013 based on revised note terms.
(2)

Includes a $1.0 million loan classified as a troubled debt restructuring.
(3)

Loan is classified as a troubled debt restructuring.

 

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 29 and 59 days delinquent

      2,824           1.4%          2,482           1.4%          342           1.2%    

Between 60 and 89 days delinquent

      1           -           -           -           1           -     

Over 89 days delinquent (2)

      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 commercial mortgage 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.
(3)

Loans were classified as troubled debt restructurings.
Classified Loans Receivable

Management has classified our Loans Receivable Subject To Credit Risk as follows (balances represent our investment in the loans prior to loan loss reserves and deferred capitalized costs, net):

 

     December 31, 2013  
     Totals      %      Commercial
Mortgage
Loans		      %      SBA 7(a)
Loans		      %  
     (Dollars in thousands)  

Satisfactory

     $   190,245           94.1%          $ 161,424           93.9%          $ 28,821           95.0%     

OAEM

      4,144           2.0%           3,862           2.2%           282           0.9%     

Substandard

      5,484           2.7%           4,284           2.5%           1,200           4.0%     

Doubtful

      2,330           1.2%           2,308           1.4%           22           0.1%     
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
    $   202,203           100.0%          $ 171,878           100.0%          $ 30,325           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

The activity in our loan loss reserves was as follows:

 

     Year Ended December 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

      1,679           1,365           314     

Reduction of loan losses

      (442)          (438)          (4)    

Principal balances written-off, net

      (1,366)          (1,147)          (219)    
  

 

 

     

 

 

     

 

 

  

Balance, end of year

     $ 3,284          $ 2,630          $ 654     
  

 

 

     

 

 

     

 

 

  

 

     Year Ended December 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

      2,505           2,219           286     

Reduction of loan losses

      (104)          (70)          (34)    

Recoveries

      (467)          (467)          -       

Principal balances written-off

      (333)          (161)          (172)    
  

 

 

     

 

 

     

 

 

  

Balance, end of year

     $ 3,413          $ 2,850          $ 563     
  

 

 

     

 

 

     

 

 

  

Recoveries represent cash proceeds from collections on personal loan guarantees to the extent there is a deficiency after foreclosure of the real property collateral and to the extent cash received does not exceed realized losses taken on the property.

 

     Year Ended December 31, 2011  
     Total      Commercial
Mortgage
Loans		      SBA 7(a)
Loans		  
     (In thousands)  

Balance, beginning of year

     $ 1,609          $ 1,303          $ 306     

Provision for loan losses

      826           429           397     

Reduction of loan losses

      (366)          (342)          (24)    

Principal balances written-off

      (257)          (61)          (196)    
  

 

 

     

 

 

     

 

 

  

Balance, end of year

     $ 1,812          $ 1,329          $ 483     
  

 

 

     

 

 

     

 

 

  
Loans Considered to be Impaired

Information on those loans considered to be impaired was as follows:

 

     At December 31, 2013  
     Total      Commercial
Mortgage
Loans		      SBA 7(a)
Loans		  
     (In thousands)  

Impaired loans requiring reserves (1)

     $ 3,748          $ 3,725          $ 23     

Impaired loans expected to be fully recoverable (1)

      4,340           4,340           -     
  

 

 

     

 

 

     

 

 

  

Total impaired loans (2)

     $ 8,088          $ 8,065          $ 23     
  

 

 

     

 

 

     

 

 

  

Loan loss reserves

     $ 1,406          $ 1,385          $ 21     
  

 

 

     

 

 

     

 

 

  
     At 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     
  

 

 

     

 

 

     

 

 

  
     At December 31, 2011  
     Total      Commercial
Mortgage
Loans		      SBA 7(a)
Loans		  
     (In thousands)  

Impaired loans requiring reserves (1)

     $ 7,411          $ 7,027          $ 384     

Impaired loans expected to be fully recoverable (1)

      846           689           157     
  

 

 

     

 

 

     

 

 

  

Total impaired loans (4)

     $ 8,257          $ 7,716          $ 541     
  

 

 

     

 

 

     

 

 

  

Loan loss reserves

     $ 563          $ 372          $ 191     
  

 

 

     

 

 

     

 

 

  

 

(1)

Balances represent our recorded investment including loans classified as troubled debt restructurings.
(2)

The unpaid principal balance of our impaired commercial mortgage loans was $8,534,000 at December 31, 2013. The unpaid principal balance of our impaired SBA 7(a) loans (excluding the government guaranteed portion) was $150,000 at December 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.
(4)

The unpaid principal balance of our impaired commercial mortgage loans was $7,940,000 at December 31, 2011. The unpaid principal balance of our impaired SBA 7(a) loans (excluding the government guaranteed portion) was $593,000 at December 31, 2011.

 

     Year Ended December 31, 2013  
     Total      Commercial
Mortgage
Loans		      SBA 7(a)
Loans		  
     (In thousands)  

Average impaired loans

     $ 11,121          $ 10,042          $ 1,079     
  

 

 

     

 

 

     

 

 

  

Interest income on impaired loans

     $ 388          $ 348          $ 40     
  

 

 

     

 

 

     

 

 

  
     Year Ended December 31, 2012  
     Total      Commercial
Mortgage
Loans		      SBA 7(a)
Loans		  
     (In thousands)  

Average impaired loans

     $ 9,895          $ 9,116          $ 779     
  

 

 

     

 

 

     

 

 

  

Interest income on impaired loans

     $ 372          $ 359          $ 13     
  

 

 

     

 

 

     

 

 

  
     Year Ended December 31, 2011  
     Total      Commercial
Mortgage
Loans		      SBA 7(a)
Loans		  
     (In thousands)  

Average impaired loans

     $ 8,176          $ 7,610          $ 566     
  

 

 

     

 

 

     

 

 

  

Interest income on impaired loans

     $ 290          $ 271          $ 19     
  

 

 

     

 

 

     

 

 

  
Troubled Debt Restructurings

Detailed information on our troubled debt restructurings was as follows at December 31, 2013 and 2012:

 

    December 31, 2013  
    Commercial Mortgage Loans  
    Recorded
Investment		     Unpaid
Principal
Balance		  
    (In thousands)  

Troubled debt restructurings requiring reserves

    $ 3,716         $ 4,148     

Troubled debt restructurings without reserves

     4,334          4,386     
 

 

 

    

 

 

  

Total troubled debt restructurings

    $ 8,050         $ 8,534     
 

 

 

    

 

 

  

Number of loans

     6       
 

 

 

    

Loan loss reserves

    $ 1,385       
 

 

 

    

 

     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)

The SBA 7(a) loan recorded investment and unpaid principal balance included the government guaranteed portion of $634,000 on which we had no credit loss exposure. This loan was no longer complying with its modified terms, including lack of required payments.