Loans Receivable and The Allowance For Loan Losses: Impaired Loans and Allowance for Loan Losses Policy (Policies)

3 Months Ended

Jun. 30, 2012

Impaired Loans and Allowance for Loan Losses Policy:

Impaired Loans and Allowance for Loan Losses Policy

Impaired Loans and the Allowance for Loan Losses.  A loan is considered impaired when, based on current information and circumstances, the Company determines it is probable that it will be unable to collect all amounts due according to the contractual terms of the loan agreement, including scheduled interest payments.  Impaired loans are comprised of loans on nonaccrual, TDRs that are performing under their restructured terms, and loans that are 90 days or more past due, but are still on accrual.