LOANS RECEIVABLE (Tables)

3 Months Ended

Mar. 31, 2013

Loans receivable are summarized as follows:

	At
	March 31, 2013			December 31, 2012
	(in thousands)
Held for investment:
Residential
Residential mortgages	$	320,179		$	323,665

Commercial
Real estate-commercial		108,870			104,766
Real estate-residential		21,121			21,570
Real estate-multi-family		17,814			19,118
Construction loans		11,601			16,288
Commercial and industrial loans		5,202			4,646
Total commercial loans		164,608			166,388

Consumer
Home equity and second mortgage		39,357			40,143
Other consumer		1,755			1,835
Total consumer loans		41,112			41,978

Total loans		525,899			532,031
Net deferred loan origination costs and unamortized premiums		1,619			1,611
Less allowance for loan losses		(6,662	)		(6,922	)
Total loans receivable	$	520,856		$	526,720

Held for sale:
Residential
Residential mortgages	$	711		$	706

Loans Receivable Credit Quality Indicators

The following table presents the composition of the commercial loan portfolio by credit quality indicators:

	At March 31, 2013
	Pass		Special mention		Substandard		Doubtful		Total
	(in thousands)
Real estate-commercial	$	95,567	$	4,161	$	9,142	$	—	$	108,870
Real estate-residential		20,027		373		721		—		21,121
Real estate-multi-family		14,456		—		3,358		—		17,814
Construction loans		3,401		3,551		4,649		—		11,601
Commercial and industrial loans		5,124		78		—		—		5,202
Total	$	138,575	$	8,163	$	17,870	$	—	$	164,608

	At December 31, 2012
	Pass		Special mention		Substandard		Doubtful		Total
	(in thousands)
Real estate-commercial	$	91,446	$	4,192	$	9,128	$	—	$	104,766
Real estate-residential		19,244		1,018		1,308		—		21,570
Real estate-multi-family		15,751		—		3,367		—		19,118
Construction loans		7,397		4,097		4,794		—		16,288
Commercial and industrial loans		4,565		81		-		—		4,646
Total	$	138,403	$	9,388	$	18,597	$	—	$	166,388

Mortgage and Consumer Credit Exposure

The following table presents the composition of the residential mortgage and consumer loan portfolios by credit quality indicators:

	At March 31, 2013
	Performing		Nonperforming		Total
	(in thousands)
Residential mortgages	$	317,937	$	2,242	$	320,179
Home equity and second mortgage		39,214		143		39,357
Other consumer		1,744		11		1,755
Total	$	358,895	$	2,396	$	361,291

	At December 31, 2012
	Performing		Nonperforming		Total
	(in thousands)
Residential mortgages	$	321,400	$	2,265	$	323,665
Home equity and second mortgage		40,000		143		40,143
Other consumer		1,827		8		1,835
Total	$	363,227	$	2,416	$	365,643

Financing Receivables, Non Accrual Status

The following table presents by class nonperforming loans including impaired loans and loan balances 90 days or more past due for which the accrual of interest has been discontinued:

	At
	March 31, 2013		December 31, 2012
	(in thousands)
Residential
Residential mortgages	$	2,242	$	2,265
Commercial
Real estate-commercial		552		1,098
Real estate-residential		50		51
Construction loans		4,649		4,794
Commercial and industrial loans		—		—
Consumer
Home equity and second mortgage		143		143
Other consumer		11		8
Total nonperforming loans	$	7,647	$	8,359
Total loans past due 90 days as to interest or principal and accruing interest	$	—	$	—

Loans Individually Evaluated for Impairment by Class

The following tables present loans individually evaluated for impairment by class:

	At March 31, 2013
	Recorded investment		Unpaid principal balance		Related allowance		Average recorded investment		Interest income recognized
	(in thousands)
With an allowance recorded:
Residential
Residential mortgages	$	2,114	$	2,184	$	217	$	2,124	$	—
Commercial
Real estate-commercial		—		—		—		273		—
Construction loans		4,649		5,137		1,543		4,721		—
		6,763		7,321		1,760		7,118		—
With no allowance recorded:
Commercial
Real estate-commercial		552		552		—		552		—
Real estate-residential		50		50		—		75
		602		602		—		627		—
Total	$	7,365	$	7,923	$	1,760	$	7,745	$	—


	At December 31, 2012
	Recorded investment		Unpaid principal balance		Related allowance		Average recorded investment		Interest income recognized
	(in thousands)
With an allowance recorded:
Residential
Residential mortgages	$	2,137	$	2,214	$	218	$	2,061	$	—
Commercial
Real estate-commercial		546		1,497		296		697		—
Real estate-residential		51		51		4		298
Construction loans		4,737		5,137		1,029		3,604		—
Commercial and industrial loans		—		—		—		2		—
		7,471		8,899		1,547		6,662		—
With no allowance recorded:
Residential
Residential mortgages		—		—		—		698		—
Commercial
Real estate-commercial		552		552		—		1,012		—
Real estate-residential		—		—		—		216
Construction loans		57		116		—		1,932		—
		609		668		—		3,858		—
Total	$	8,080	$	9,567	$	1,547	$	10,520	$	—

Loans Receivable Aging

The following tables present the contractual aging of delinquent loans by class:

	At March 31, 2013
	Current		30-59 Days past due		60-89 Days past due		Loans past due 90 days or more		Total past due		Total loans		Recorded investment over 90 days and accruing interest
	(in thousands)
Residential
Residential mortgages	$	317,044	$	963	$	—	$	2,172	$	3,135	$	320,179	$	—
Commercial
Real estate-commercial		108,318		—		—		552		552		108,870		—
Real estate-residential		20,698		373		—		50		423		21,121		—
Real estate-multi-family		17,814		—		—		—		—		17,814		—
Construction loans		6,952		—		—		4,649		4,649		11,601		—
Commercial and industrial loans		5,193		—		9		—		9		5,202		—
Consumer
Home equity and second mortgage		39,115		94		5		143		242		39,357		—
Other consumer		1,741		2		1		11		14		1,755		—
Total	$	516,875	$	1,432	$	15	$	7,577	$	9,024	$	525,899	$	—

	At December 31, 2012
	Current		30-59 Days past due		60-89 Days past due		Loans past due 90 days or more		Total past due		Total loans		Recorded investment over 90 days and accruing interest
	(in thousands)
Residential
Residential mortgages	$	319,982	$	1,161	$	329	$	2,193	$	3,683	$	323,665	$	—
Commercial
Real estate-commercial		102,868		800		—		1,098		1,898		104,766		—
Real estate-residential		21,488		31		—		51		82		21,570		—
Real estate-multi-family		19,118		—		—		—		—		19,118		—
Construction loans		11,494		—		—		4,794		4,794		16,288		—
Commercial and industrial loans		4,646		—		—		—		—		4,646		—
Consumer
Home equity and second mortgage		39,842		34		124		143		301		40,143		—
Other consumer		1,824		—		3		8		11		1,835		—
Total	$	521,262	$	2,026	$	456	$	8,287	$	10,769	$	532,031	$	—

Allowance for Credit Losses on Loans Receivable

Activity in the allowance for loan losses for the three months ended March 31, 2013 and 2012 is summarized as follows:

	Balance January 1, 2013		Provision			Charge-offs			Recoveries		Balance March 31, 2013
	(in thousands)
Residential
Residential mortgages	$	1,849	$	49		$	(98	)	$	—	$	1,800
Commercial
Real estate-commercial		1,754		(8	)		(435	)		—		1,311
Real estate-residential		608		52			(59	)		—		601
Real estate-multi-family		245		(8	)		—			—		237
Construction loans		1,697		297			(111	)		11		1,894
Commercial and industrial loans		119		3			—			3		125
Consumer
Home equity and second mortgage		251		(33	)		(15	)		8		211
Other consumer		11		3			(3	)		—		11
Unallocated		388		84			—			—		472
Total	$	6,922	$	439		$	(721	)	$	22	$	6,662

	Balance January 1, 2012		Provision			Charge-offs			Recoveries		Balance March 31, 2012
	(in thousands)
Residential
Residential mortgages	$	2,194	$	151		$	(399	)	$	7	$	1,953
Commercial
Real estate-commercial		2,819		(362	)		(623	)		—		1,834
Real estate-residential		464		190			—			—		654
Real estate-multi-family		358		(8	)		—			—		350
Construction loans		1,260		519			(608	)		—		1,171
Commercial and industrial loans		138		(97	)		—			5		46
Consumer
Home equity and second mortgage		448		(139	)		—			—		309
Other consumer		22		(13	)		(2	)		1		8
Unallocated		397		259			—			—		656
Total	$	8,100	$	500		$	(1,632	)	$	13	$	6,981

Troubled Debt Restructurings on Loans Receivable

The following table presents loans classified as TDRs segregated by class for the period indicated:

	For the three months ended March 31, 2012
	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post Modification Outstanding Recorded Investment
Residential	(dollars in thousands)
Residential mortgage		1	$	852	$	825
Total		1	$	852	$	825

Impairment Method for Allowance for Loan Losses and Loan Balance

The following tables present the ending balance of the allowance for loan losses and ending loan balance by portfolio and by class based on impairment method as of March 31, 2013:


	Evaluated for impairment
Allowance	Individually		Collectively		Total
	(in thousands)
Residential
Residential mortgages	$	217	$	1,583	$	1,800
Commercial
Real estate-commercial		—		1,311		1,311
Real estate-residential		—		601		601
Real estate-multi-family		—		237		237
Construction loans		1,543		351		1,894
Commercial and industrial loans		—		125		125
Consumer
Home equity and second mortgage		—		211		211
Other consumer		—		11		11
Unallocated		—		472		472
Total	$	1,760	$	4,902	$	6,662

	Evaluated for impairment
Loan balance	Individually		Collectively		Total
	(in thousands)
Residential
Residential mortgages	$	2,114	$	318,065	$	320,179
Commercial
Real estate-commercial		552		108,318		108,870
Real estate-residential		50		21,071		21,121
Real estate-multi-family		—		17,814		17,814
Construction loans		4,649		6,952		11,601
Commercial and industrial loans		—		5,202		5,202
Consumer
Home equity and second mortgage		—		39,357		39,357
Other consumer		—		1,755		1,755
Total	$	7,365	$	518,534	$	525,899

The following tables present the ending balance of the allowance for loan losses and ending loan balance by portfolio and by class based on impairment method as of December 31, 2012:

	Evaluated for impairment
Allowance	Individually		Collectively		Total
	(in thousands)
Residential
Residential mortgages	$	218	$	1,631	$	1,849
Commercial
Real estate-commercial		296		1,458		1,754
Real estate-residential		4		604		608
Real estate-multi-family		—		245		245
Construction loans		1,029		668		1,697
Commercial and industrial loans		—		119		119
Consumer
Home equity and second mortgage		—		251		251
Other consumer		—		11		11
Unallocated		—		388		388
Total	$	1,547	$	5,375	$	6,922

	Evaluated for impairment
Loan balance	Individually		Collectively		Total
	(in thousands)
Residential
Residential mortgages	$	2,137	$	321,528	$	323,665
Commercial
Real estate-commercial		1,098		103,668		104,766
Real estate-residential		51		21,519		21,570
Real estate-multi-family		—		19,118		19,118
Construction loans		4,794		11,494		16,288
Commercial and industrial loans		—		4,646		4,646
Consumer
Home equity and second mortgage		—		40,143		40,143
Other consumer		—		1,835		1,835
Total	$	8,080	$	523,951	$	532,031