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Loans Held For Sale
12 Months Ended
Dec. 31, 2013
Loans Receivable [Abstract]  
Loans Held For Sale

 

6.  Loans Held-for-Sale

 

Loans held-for-sale as of December 31, 2013 consisted of $38.2 million of residential loans, $4.2 million of first lien consumer home equity loans and $11.4 million of small business loans.  During the 2013 fourth quarter, management evaluated its residential loan portfolio in light of the general appreciation of residential real estate values during 2013 and decided to transfer first lien residential loans to loans held-for-sale as of December 31, 2013.  Loans held-for-sale are reported at the lower of cost or fair value. The Company charged down its first lien residential loan portfolio by $4.1 million and reduced its allowance for loan losses by $1.4 million upon the transfer of first lien residential loans to loans held-for-sale Loans held-for-sale as of December 31, 2012 consisted of $6.0 million of commercial real estate loans and $18.8 million of small business loans. Subsequent to the sale of BankAtlantic to BB&T, management evaluated its loan portfolio and transferred its entire portfolio of small business loans to loans held-for-sale and transferred $14.2 million of residential loans previously held-for-sale to loans held for investment.  The Company charged down its small business loans by $1.3 million and reduced its allowance for loan losses by $1.1 million upon the transfer of its small business loans to loans held-for-sale. The Company transfers loans to held-for-sale when, based on the current economic environment and related market conditions, it does not have the intent to hold those loans for the foreseeable future.  The Company transfers loans previously held-for-sale to loans held-for- investment at the lower of cost or fair value on the transfer date.