Note 6 - Loans held for sale

3 Months Ended

Mar. 31, 2013

Loans Held For Sale [Text Block]

6.  Loans held for sale

Loans held for sale are carried at the lower of cost or estimated fair value.

The following table shows our Loans held for sale for the periods indicated:

	March 31, 2013				December 31, 2012
(Dollars in thousands)	Number of loans		Carrying Value		Number of loans		Carrying Value
Multi-family residential		6	$	2,892		4	$	3,442
Commercial real estate		4		970		-		-
One-to-four family - mixed-use property		25		5,906		4		1,871
One-to-four family - residential		2		139		-		-
Total		37	$	9,907		8	$	5,313

The Company has implemented a strategy of selling certain delinquent and non-performing loans. Once the Company has decided to sell a loan, the sale usually closes in a short period of time, generally within the same quarter.  Loans designated held for sale are reclassified from loans held for investment to loans held for sale. Terms of sale include cash due upon the closing of the sale, no contingencies or recourse to the Company and servicing is released to the buyer.

The following table shows delinquent and non-performing loans sold during the period indicated:

	For the three months ended March 31, 2013
(Dollars in thousands)	Loans sold		Proceeds		Net charge-offs			Net gain (loss)
Multi-family residential		6	$	4,612	$	(109	)	$	6
Commercial real estate		2		1,115		(76	)		-
One-to-four family - mixed-use property		6		2,373		(40	)		(15	)
Commercial business and other		2		66		(185	)		-
Total		16	$	8,166	$	(410	)	$	(9	)

The following table shows delinquent and non-performing loans sold during the period indicated:

	For the three months ended March 31, 2012
(Dollars in thousands)	Loans sold		Proceeds		Net charge-offs			Net gain (loss)
Multi-family residential		6	$	3,968	$	(181	)	$	-
Commercial real estate		3		1,678		(250	)		-
One-to-four family - mixed-use property		4		1,280		(399	)		-
Construction		3		2,540		(57	)		-
Commercial business and other		1		215		(136	)		-
Total		17	$	9,681	$	(1,023	)	$	-