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LOANS RECEIVABLE (Tables)
 12 Months Ended
Dec. 31, 2013
LOANS RECEIVABLE [Abstract]  
Loans Receivable
Loans receivable are summarized as follows:

 
 
At December 31,
 
 
 
2013
  
2012
 
 
 
(in thousands)
 
Held for investment:
 
  
 
Residential
 
  
 
Residential mortgages
 
$
371,961
  
$
323,665
 
 
        
Commercial
        
Real estate-commercial
  
129,345
   
104,766
 
Real estate-residential
  
20,005
   
21,570
 
Real estate-multi-family
  
16,623
   
19,118
 
Construction loans
  
8,773
   
16,288
 
Commercial and industrial loans
  
6,849
   
4,646
 
Total commercial loans
  
181,595
   
166,388
 
 
        
Consumer
        
Home equity and second mortgage
  
64,202
   
40,143
 
Other consumer
  
1,697
   
1,835
 
Total consumer loans
  
65,899
   
41,978
 
 
        
Total loans
  
619,455
   
532,031
 
Net deferred loan origination costs and unamortized premiums
  
1,288
   
1,611
 
Less allowance for loan losses
  
(6,575
)
  
(6,922
)
Total loans receivable
 
$
614,168
  
$
526,720
 
 
        
Held for sale:
        
Residential
        
Residential mortgages
 
$
349
  
$
706
 
Loans Receivable Credit Quality Indicators
The following tables present by credit quality indicator the composition of the commercial loan portfolio:

Commercial credit exposure-credit risk profile by internally assigned grade

 
 
At December 31, 2013
 
 
 
Pass
  
Special
mention
  
Substandard
  
Doubtful
  
Total
 
 
 
(in thousands)
 
Real estate-commercial
 
$
113,260
  
$
7,142
  
$
8,943
  
$
—
  
$
129,345
 
Real estate-residential
  
17,182
   
487
   
2,336
   
—
   
20,005
 
Real estate-multi-family
  
13,114
   
—
   
3,509
   
—
   
16,623
 
Construction loans
  
5,596
   
—
   
3,177
   
—
   
8,773
 
Commercial and industrial loans
  
6,817
   
32
   
—
   
—
   
6,849
 
Total
 
$
155,969
  
$
7,661
  
$
17,965
  
$
—
  
$
181,595
 
 
                    
 
 
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 tables present by credit quality indicator the composition of the residential mortgage and consumer loan portfolios:

Mortgage and consumer credit exposure-credit risk profile by payment activity

 
 
At December 31, 2013
 
 
 
Performing
  
Nonperforming
  
Total
 
 
 
(in thousands)
 
Residential mortgages
 
$
368,967
  
$
2,994
  
$
371,961
 
Home equity and second mortgage
  
63,902
   
300
   
64,202
 
Other consumer
  
1,697
   
—
   
1,697
 
Total
 
$
434,566
  
$
3,294
  
$
437,860
 
 
            
 
 
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 past due over 90 days for which the accrual of interest has been discontinued:

 
 
At December 31,
 
 
 
2013
  
2012
 
 
 
(in thousands)
 
Residential
 
  
 
Residential mortgages
 
$
2,994
  
$
2,265
 
Commercial
        
Real estate-commercial
  
774
   
1,098
 
Real estate-residential
  
896
   
51
 
Real estate-multi-family
  
191
   
—
 
Construction loans
  
3,177
   
4,794
 
Commercial and industrial loans
  
—
   
—
 
Consumer
        
Home equity and second mortgage
  
300
   
143
 
Other consumer
  
—
   
8
 
Total nonperforming loans
 
$
8,332
  
$
8,359
 
Loans Individually Evaluated for Impairment by Class
The following tables present by class loans individually evaluated for impairment:
 
 
 
At December 31, 2013
 
 
 
Recorded investment
  
Unpaid principal balance
  
Related
allowance
  
Average recorded investment
  
Interest income recognized
 
With an allowance recorded:
 
(in thousands)
 
Residential
 
  
  
  
  
 
Residential mortgages
 
$
1,135
  
$
1,135
  
$
128
  
$
1,620
  
$
—
 
Commercial
                    
Real estate-commercial
  
—
   
—
   
—
   
109
   
—
 
Real estate-residential
  
712
   
712
   
77
   
211
   
—
 
Construction loans
  
3,177
   
3,375
   
2,021
   
3,701
   
—
 
 
  
5,024
   
5,222
   
2,226
   
5,641
   
—
 
With no allowance recorded:
                    
Residential
                    
Residential mortgages
  
1,184
   
1,184
   
—
   
241
   
—
 
Commercial
                    
Real estate-commercial
  
774
   
774
   
—
   
607
   
—
 
Real estate-residential
  
184
   
321
   
—
   
108
   
—
 
Real estate-multi-family
  
191
   
372
   
—
   
77
   
—
 
Consumer
                    
Home equity and second mortgage
  
47
   
81
   
—
   
7
   
—
 
 
  
2,380
   
2,732
   
—
   
1,040
   
—
 
Total
 
$
7,404
  
$
7,954
  
$
2,226
  
$
6,681
  
$
—
 

 
 
At December 31, 2012
 
 
 
 
Recorded
investment
  
Unpaid principal
balance
  
 
Related
allowance
  
Average recorded
investment
  
Interest income
recognized
 
With an allowance recorded:
 
(in thousands)
 
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 by class the contractual aging of delinquent loans:

 
 
At December 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
 
$
369,271
  
$
111
  
$
—
  
$
2,579
  
$
2,690
  
$
371,961
  
$
—
 
Commercial
                            
Real estate-commercial
  
127,786
   
785
   
—
   
774
   
1,559
   
129,345
   
—
 
Real estate-residential
  
18,589
   
180
   
340
   
896
   
1,416
   
20,005
   
—
 
Real estate-multi-family
  
16,432
   
—
   
—
   
191
   
191
   
16,623
   
—
 
Construction loans
  
5,596
   
—
   
—
   
3,177
   
3,177
   
8,773
   
—
 
Commercial and industrial loans
  
6,849
   
—
   
—
   
—
   
—
   
6,849
   
—
 
Consumer
                            
Home equity and second mortgage
  
63,543
   
355
   
4
   
300
   
659
   
64,202
   
—
 
Other consumer
  
1,686
   
7
   
4
   
—
   
11
   
1,697
   
—
 
Total
 
$
609,752
  
$
1,438
  
$
348
  
$
7,917
  
$
9,703
  
$
619,455
  
$
—
 
 
                            
 
 
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 is summarized as follows:

 
 
Balance
January 1,
2013
  
Provision
  
Charge-offs
  
Recoveries
  
Balance
December 31,
2013
 
 
 
(in thousands)
 
Residential
 
  
  
  
  
 
Residential mortgages
 
$
1,849
  
$
326
  
$
(465
)
 
$
12
  
$
1,722
 
Commercial
                    
Real estate-commercial
  
1,754
   
(99
)
  
(435
)
  
—
   
1,220
 
Real estate-residential
  
608
   
(81
)
  
(90
)
  
—
   
437
 
Real estate-multi-family
  
245
   
(109
)
  
—
   
—
   
136
 
Construction loans
  
1,697
   
647
   
(150
)
  
14
   
2,208
 
Commercial and industrial loans
  
119
   
(21
)
  
(10
)
  
9
   
97
 
Consumer
                    
Home equity and second mortgage
  
251
   
13
   
(58
)
  
8
   
214
 
Other consumer
  
11
   
60
   
(27
)
  
6
   
50
 
Unallocated
  
388
   
103
   
—
   
—
   
491
 
Total
 
$
6,922
  
$
839
  
$
(1,235
)
 
$
49
  
$
6,575
 
 
                    
 
 
Balance
January 1,
2012
  
Provision
  
Charge-offs
  
Recoveries
  
Balance
December 31,
2012
 
 
 
(in thousands)
 
Residential
                    
Residential mortgages
 
$
2,194
  
$
367
  
$
(768
)
 
$
56
  
$
1,849
 
Commercial
                    
Real estate-commercial
  
2,352
   
353
   
(951
)
  
—
   
1,754
 
Real estate-residential
  
369
   
726
   
(487
)
  
—
   
608
 
Real estate-multi-family
  
350
   
(105
)
  
—
   
—
   
245
 
Construction loans
  
1,830
   
1,049
   
(1,182
)
  
—
   
1,697
 
Commercial and industrial loans
  
138
   
115
   
(156
)
  
22
   
119
 
Consumer
                    
Home equity and second mortgage
  
448
   
(104
)
  
(93
)
  
—
   
251
 
Other consumer
  
22
   
8
   
(23
)
  
4
   
11
 
Unallocated
  
397
   
(9
)
  
—
   
—
   
388
 
Total
 
$
8,100
  
$
2,400
  
$
(3,660
)
 
$
82
  
$
6,922
 
Impairment Method for Allowance for Loan Losses and Loan Balance
The following tables present by class the ending balance of the allowance for loan losses and ending loan balance based on the impairment method as of December 31, 2013:

 
 
Evaluated for impairment
  
 
Allowance for loan losses
 
Loans
acquired
without
credit
deterioration
  
Loans
acquired
with credit
deterioration
  
Individually
  
Collectively
  
Total
 
 
 
(in thousands)
 
Residential
 
  
  
  
  
 
Residential mortgages
 
$
—
  
$
—
  
$
128
  
$
1,594
  
$
1,722
 
Commercial
                    
Real estate-commercial
  
—
   
—
   
—
   
1,220
   
1,220
 
Real estate-residential
  
—
   
—
   
77
   
360
   
437
 
Real estate-multi-family
  
—
   
—
   
—
   
136
   
136
 
Construction loans
  
—
   
—
   
2,021
   
187
   
2,208
 
Commercial and industrial loans
  
—
   
—
   
—
   
97
   
97
 
Consumer
                    
Home equity and second mortgage
  
—
   
—
   
—
   
214
   
214
 
Other consumer
  
—
   
—
   
—
   
50
   
50
 
Unallocated
  
—
   
—
   
—
   
491
   
491
 
Total
 
$
—
  
$
—
  
$
2,226
  
$
4,349
  
$
6,575
 

 
 
Evaluated for impairment
  
 
Loans receivable
 
Loans
acquired
without
credit
deterioration
  
Loans
acquired
with credit
deterioration
  
Individually
  
Collectively
  
Total
 
 
 
(in thousands)
 
Residential
 
  
  
  
  
 
Residential mortgages
 
$
50,985
  
$
22
  
$
2,297
  
$
318,657
  
$
371,961
 
Commercial
                    
Real estate-commercial
  
12,787
   
—
   
774
   
115,784
   
129,345
 
Real estate-residential
  
4,913
   
184
   
712
   
14,196
   
20,005
 
Real estate-multi-family
  
1,116
   
191
   
—
   
15,316
   
16,623
 
Construction loans
  
—
   
—
   
3,177
   
5,596
   
8,773
 
Commercial and industrial loans
  
279
   
—
   
—
   
6,570
   
6,849
 
Consumer
                    
Home equity and second mortgage
  
24,806
   
47
   
—
   
39,349
   
64,202
 
Other consumer
  
126
   
—
   
—
   
1,571
   
1,697
 
Total
 
$
95,012
  
$
444
  
$
6,960
  
$
517,039
  
$
619,455
 

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

 
 
Evaluated for impairment
  
 
Allowance for loan losses
 
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
  
 
Loans receivable
 
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
 
 
Troubled Debt Restructurings on Loans Receivable
The following table presents by class loans classified as TDRs segregated for the periods indicated:

 
 
For the year ended
December 31, 2013
  
For the year ended
December 31, 2012
 
 
 
Number
of
Contracts
  
Pre-
Modification
Outstanding
Recorded
Investment
  
Post
Modification
Outstanding
Recorded
Investment
  
Number
of
Contracts
  
Pre-
Modification
Outstanding
Recorded
Investment
  
Post
Modification
Outstanding
Recorded
Investment
 
Residential
 
(dollars in thousands)
 
Residential mortgage
  
0
  
$
—
  
$
—
   
2
  
$
950
  
$
923
 
Total
  
0
  
$
—
  
$
—
   
2
  
$
950
  
$
923
 

The following table presents loans classified as TDRs that subsequently defaulted:

 
 
For the year ended
December 31, 2013
 
 
 
Number
of
Contracts
  
Recorded
Investment
 
Residential
 
(in thousands)
 
Residential mortgage
  
1
  
$
337
 
Total
  
1
  
$
337
 
Components of purchase accounting adjustments related to the purchased impaired loans
The table below presents the components of the purchase accounting adjustments related to the purchased impaired loans acquired in the Roebling acquisition as of July 2, 2013:

 
 
At July 2, 2013
 
 
 
(in thousands)
 
Unpaid principal balance
 
$
1,320
 
Interest
  
638
 
Contractual cash flows
  
1,958
 
Non-accretable discount
  
(963
)
Expected cash flows
  
995
 
Accretable discount
  
(198
)
Estimated fair value
 
$
797
 
Changes in the amortizable yield for purchased credit-impaired loans
Changes in the amortizable yield for purchased credit-impaired loans were as follows for year ended December 31, 2013:

 
 
At December 31, 2013
 
 
 
(in thousands)
 
Balance at beginning of period
 
$
—
 
Acquisition of impaired loans
  
198
 
Accretion
  
(44
)
Balance at end of period
 
$
154
 
Information regarding loans acquired and accounted for in accordance with ASC 310-30
The following table presents additional information regarding loans acquired and accounted for in accordance with
ASC 310-30:

 
 
July 2, 2013
  
December 31, 2013
 
 
 
Acquired Loans with
  
Acquired Loans with
 
 
 
Specific Evidence of
  
Specific Evidence of
 
 
 
Deterioration in Credit
  
Deterioration in Credit
 
 
 
Quality (ASC 310-30)
  
Quality (ASC 310-30)
 
 
 
(in thousands)
 
Outstanding balance
 
$
1,958
  
$
1,508
 
Carrying amount
  
797
   
444