Loans Receivable, Net | 12 Months Ended |
Dec. 31, 2013 |
Receivables [Abstract] | ' |
Loans Receivable, Net | ' |
(4) Loans Receivable, Net |
A summary of loans receivable at December 31, 2013 and 2012 follows (in thousands): |
|
| | | | | | | | | | | | | | | | | | | | | | | | |
| | December 31, | | | | | | | | | | | | | | | | | |
| | 2013 | | | 2012 | | | | | | | | | | | | | | | | | |
Real estate mortgage: | | | | | | | | | | | | | | | | | | | | | | | | |
One-to-four family | | $ | 750,585 | | | $ | 802,959 | | | | | | | | | | | | | | | | | |
Commercial real estate, multi-family and land | | | 528,945 | | | | 475,155 | | | | | | | | | | | | | | | | | |
Residential construction | | | 30,821 | | | | 9,013 | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | 1,310,351 | | | | 1,287,127 | | | | | | | | | | | | | | | | | |
Consumer | | | 200,683 | | | | 198,143 | | | | | | | | | | | | | | | | | |
Commercial and industrial | | | 60,545 | | | | 57,967 | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total loans | | | 1,571,579 | | | | 1,543,237 | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Loans in process | | | (12,715 | ) | | | (3,639 | ) | | | | | | | | | | | | | | | | |
Deferred origination costs, net | | | 3,526 | | | | 4,112 | | | | | | | | | | | | | | | | | |
Allowance for loan losses | | | (20,930 | ) | | | (20,510 | ) | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | (30,119 | ) | | | (20,037 | ) | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | $ | 1,541,460 | | | $ | 1,523,200 | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
At December 31, 2013, 2012 and 2011 loans in the amount of $45,360,000, $43,374,000, and $44,008,000, respectively, were three or more months delinquent or in the process of foreclosure and the Company was not accruing interest income on these loans. There were no loans ninety days or greater past due and still accruing interest. Non-accrual loans include both smaller balance homogenous loans that are collectively evaluated for impairment and individually classified impaired loans. |
The Company defines an impaired loan as all non-accrual commercial real estate, multi-family land, construction and commercial and industrial loans in excess of $250,000. Impaired loans also include all loans modified as troubled debt restructurings. At December 31, 2013, the impaired loan portfolio totaled $39,903,000 for which there was a specific allocation in the allowance for loan losses of $3,647,000. At December 31, 2012, the impaired loan portfolio totaled $37,546,000 for which there was a specific allocation in the allowance for loan losses of $2,554,000. The average balance of impaired loans for the years ended December 31, 2013, 2012 and 2011 was $38,587,000, $36,574,000 and $25,472,000, respectively. If interest income on non-accrual loans and impaired loans had been current in accordance with their original terms, approximately $2,040,000, $2,432,000, and $2,125,000 of interest income for the years ended December 31, 2013, 2012 and 2011, respectively, would have been recorded. At December 31, 2013, there were no commitments to lend additional funds to borrowers whose loans are in non-accrual status. |
An analysis of the allowance for loan losses for the years ended December 31, 2013, 2012 and 2011 is as follows (in thousands): |
|
| | | | | | | | | | | | | | | | | | | | | | | | |
| | Years Ended December 31, | | | | | | | | | | | | | |
| | 2013 | | | 2012 | | | 2011 | | | | | | | | | | | | | |
Balance at beginning of year | | $ | 20,510 | | | $ | 18,230 | | | $ | 19,700 | | | | | | | | | | | | | |
Provision charged to operations | | | 2,800 | | | | 7,900 | | | | 7,750 | | | | | | | | | | | | | |
Charge-offs | | | (3,521 | ) | | | (7,084 | ) | | | (9,249 | ) | | | | | | | | | | | | |
Recoveries | | | 1,141 | | | | 1,464 | | | | 29 | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Balance at end of year | | $ | 20,930 | | | $ | 20,510 | | | $ | 18,230 | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
|
The following table presents an analysis of the allowance for loan losses for the year ended December 31, 2013, the balance in the allowance for loan loses and the recorded investment in loans by portfolio segment and based on impairment method as of December 31, 2013 and 2012 (in thousands): |
|
| | | | | | | | | | | | | | | | | | | | | | | | |
| | Residential | | | Commercial | | | Consumer | | | Commercial | | | Unallocated | | | Total | |
Real Estate | Real Estate | and |
| | Industrial |
For the year ended December 31, 2013 | | | | | | | | | | | | | | | | | | | | |
Allowance for loan losses: | | | | | | | | | | | | | | | | | | | | |
Balance at beginning of year | | $ | 5,241 | | | $ | 8,937 | | | $ | 2,264 | | | $ | 1,348 | | | $ | 2,720 | | | $ | 20,510 | |
Provision (benefit) charged to operations | | | 1,236 | | | | 1,383 | | | | (297 | ) | | | 241 | | | | 237 | | | | 2,800 | |
Charge-offs | | | (2,444 | ) | | | — | | | | (842 | ) | | | (235 | ) | | | — | | | | (3,521 | ) |
Recoveries | | | 826 | | | | 51 | | | | 235 | | | | 29 | | | | — | | | | 1,141 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Balance at end of year | | $ | 4,859 | | | $ | 10,371 | | | $ | 1,360 | | | $ | 1,383 | | | $ | 2,957 | | | $ | 20,930 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
For the year ended December 31, 2012 | | | | | | | | | | | | | | | | |
Allowance for loan losses: | | | | | | | | | | | | | | | | |
Balance at beginning of year | | $ | 5,370 | | | $ | 8,474 | | | $ | 1,461 | | | $ | 900 | | | $ | 2,025 | | | $ | 18,230 | |
Provision (benefit) charged to operations | | | 4,038 | | | | 293 | | | | 2,972 | | | | (98 | ) | | | 695 | | | | 7,900 | |
Charge-offs | | | (4,679 | ) | | | (47 | ) | | | (2,282 | ) | | | (76 | ) | | | — | | | | (7,084 | ) |
Recoveries | | | 512 | | | | 217 | | | | 113 | | | | 622 | | | | — | | | | 1,464 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Balance at end of year | | $ | 5,241 | | | $ | 8,937 | | | $ | 2,264 | | | $ | 1,348 | | | $ | 2,720 | | | $ | 20,510 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
31-Dec-13 | | | | | | | | | | | | | | | | | | | | |
Allowance for loan losses: | | | | | | | | | | | | | | | | | | | | |
Ending allowance balance attributed to loans: | | | | | | | | | | | | | | | | | | | | |
Individually evaluated for impairment | | $ | 2 | | | $ | 3,612 | | | $ | 33 | | | $ | — | | | $ | — | | | $ | 3,647 | |
Collectively evaluated for impairment | | | 4,857 | | | | 6,759 | | | | 1,327 | | | | 1,383 | | | | 2,957 | | | | 17,283 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total ending allowance balance | | $ | 4,859 | | | $ | 10,371 | | | $ | 1,360 | | | $ | 1,383 | | | $ | 2,957 | | | $ | 20,930 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Loans: | | | | | | | | | | | | | | | | | | | | |
Loans individually evaluated for impairment | | $ | 18,192 | | | $ | 17,643 | | | $ | 2,961 | | | $ | 1,107 | | | $ | — | | | $ | 39,903 | |
Loans collectively evaluated for impairment | | | 763,214 | | | | 511,302 | | | | 197,722 | | | | 59,438 | | | | — | | | | 1,531,676 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total ending loan balance | | $ | 781,406 | | | $ | 528,945 | | | $ | 200,683 | | | $ | 60,545 | | | $ | — | | | $ | 1,571,579 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
December 31, 2012 | | | | | | | | | | | | | | | | | | | | | | | | |
Allowance for loan losses: | | | | | | | | | | | | | | | | | | | | | | | | |
Ending allowance balance attributed to loans: | | | | | | | | | | | | | | | | | | | | | | | | |
Individually evaluated for impairment | | $ | 179 | | | $ | 1,834 | | | $ | 541 | | | $ | — | | | $ | — | | | $ | 2,554 | |
Collectively evaluated for impairment | | | 5,062 | | | | 7,103 | | | | 1,723 | | | | 1,348 | | | | 2,720 | | | | 17,956 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total ending allowance balance | | $ | 5,241 | | | $ | 8,937 | | | $ | 2,264 | | | $ | 1,348 | | | $ | 2,720 | | | $ | 20,510 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Loans: | | | | | | | | | | | | | | | | | | | | | | | | |
Loans individually evaluated for impairment | | $ | 22,427 | | | $ | 12,116 | | | $ | 2,712 | | | $ | 291 | | | $ | — | | | $ | 37,546 | |
Loans collectively evaluated for impairment | | | 789,545 | | | | 463,039 | | | | 195,431 | | | | 57,676 | | | | — | | | | 1,505,691 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total ending loan balance | | $ | 811,972 | | | $ | 475,155 | | | $ | 198,143 | | | $ | 57,967 | | | $ | — | | | $ | 1,543,237 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
A summary of impaired loans at December 31, 2013 and 2012 is as follows (in thousands): |
|
| | | | | | | | | | | | | | | | | | | | | | | | |
| | December 31, | | | | | | | | | | | | | | | | | |
| | 2013 | | | 2012 | | | | | | | | | | | | | | | | | |
Year-end impaired loans with no allocated allowance for loan losses | | $ | 24,457 | | | $ | 25,513 | | | | | | | | | | | | | | | | | |
Year-end impaired loans with allocated allowance for loan losses | | | 15,446 | | | | 12,033 | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | $ | 39,903 | | | $ | 37,546 | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Amount of the allowance for loan losses allocated | | $ | 3,647 | | | $ | 2,554 | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
|
At December 31, 2013, impaired loans include troubled debt restructuring loans of $31,119,000 of which $21,456,000 were performing in accordance with their restructured terms and were accruing interest. At December 31, 2012, impaired loans include troubled debt restructuring loans of $35,893,000 of which $17,733,000 were performing in accordance with their restructured terms and were accruing interest. |
The summary of loans individually evaluated for impairment by class of loans as of December 31, 2013 and 2012 and for the years ended December 31, 2013 and 2012 follows (in thousands): |
|
| | | | | | | | | | | | | | | | | | | | | | | | |
| | Unpaid | | | Recorded | | | Allowance for | | | | | | | | | | | | | |
Principal | Investment | Loan Losses | | | | | | | | |
Balance | | Allocated | | | | | | | | |
As of December 31, 2013 | | | | | | | | | | | | | | | | | | | | | | | | |
With no related allowance recorded: | | | | | | | | | | | | | | | | | | | | | | | | |
Residential real estate: | | | | | | | | | | | | | | | | | | | | | | | | |
Originated by Bank | | $ | 10,537 | | | $ | 9,885 | | | $ | — | | | | | | | | | | | | | |
Originated by mortgage company | | | 7,762 | | | | 7,387 | | | | — | | | | | | | | | | | | | |
Originated by mortgage company-non-prime | | | 1,260 | | | | 858 | | | | — | | | | | | | | | | | | | |
Commercial real estate: | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial | | | 2,303 | | | | 2,292 | | | | — | | | | | | | | | | | | | |
Construction and land | | | — | | | | — | | | | — | | | | | | | | | | | | | |
Consumer | | | 3,435 | | | | 2,928 | | | | — | | | | | | | | | | | | | |
Commercial and industrial | | | 1,107 | | | | 1,107 | | | | — | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | $ | 26,404 | | | $ | 24,457 | | | $ | — | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
With an allowance recorded: | | | | | | | | | | | | | | | | | | | | | | | | |
Residential real estate: | | | | | | | | | | | | | | | | | | | | | | | | |
Originated by Bank | | $ | 62 | | | $ | 62 | | | $ | 2 | | | | | | | | | | | | | |
Originated by mortgage company | | | — | | | | — | | | | — | | | | | | | | | | | | | |
Originated by mortgage company-non-prime | | | — | | | | — | | | | — | | | | | | | | | | | | | |
Commercial real estate: | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial | | | 15,128 | | | | 15,042 | | | | 3,389 | | | | | | | | | | | | | |
Construction and land | | | 309 | | | | 309 | | | | 223 | | | | | | | | | | | | | |
Consumer | | | 33 | | | | 33 | | | | 33 | | | | | | | | | | | | | |
Commercial and industrial | | | — | | | | — | | | | — | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | $ | 15,532 | | | $ | 15,446 | | | $ | 3,647 | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | | | | | | | | |
| | Unpaid | | | Recorded | | | Allowance for | | | | | | | | | | | | | |
Principal | Investment | Loan Losses | | | | | | | | |
Balance | | Allocated | | | | | | | | |
As of December 31, 2012 | | | | | | | | | | | | | | | | | | | | | | | | |
With no related allowance recorded: | | | | | | | | | | | | | | | | | | | | | | | | |
Residential real estate: | | | | | | | | | | | | | | | | | | | | | | | | |
Originated by Bank | | $ | 11,200 | | | $ | 10,956 | | | $ | — | | | | | | | | | | | | | |
Originated by mortgage company | | | 7,210 | | | | 7,061 | | | | — | | | | | | | | | | | | | |
Originated by mortgage company-non-prime | | | 2,335 | | | | 2,251 | | | | — | | | | | | | | | | | | | |
Commercial real estate: | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial | | | 2,722 | | | | 2,691 | | | | — | | | | | | | | | | | | | |
Construction and land | | | 482 | | | | 482 | | | | — | | | | | | | | | | | | | |
Consumer | | | 1,956 | | | | 1,781 | | | | — | | | | | | | | | | | | | |
Commercial and industrial | | | 291 | | | | 291 | | | | — | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | $ | 26,196 | | | $ | 25,513 | | | $ | — | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
With an allowance recorded: | | | | | | | | | | | | | | | | | | | | | | | | |
Residential real estate: | | | | | | | | | | | | | | | | | | | | | | | | |
Originated by Bank | | $ | 1,761 | | | $ | 1,755 | | | $ | 142 | | | | | | | | | | | | | |
Originated by mortgage company | | | 404 | | | | 404 | | | | 37 | | | | | | | | | | | | | |
Originated by mortgage company-non-prime | | | — | | | | — | | | | — | | | | | | | | | | | | | |
Commercial real estate: | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial | | | 9,022 | | | | 8,943 | | | | 1,834 | | | | | | | | | | | | | |
Construction and land | | | — | | | | — | | | | — | | | | | | | | | | | | | |
Consumer | | | 934 | | | | 931 | | | | 541 | | | | | | | | | | | | | |
Commercial and industrial | | | — | | | | — | | | | — | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | $ | 12,121 | | | $ | 12,033 | | | $ | 2,554 | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | | | | | | | | |
| | For the years ended of December 31, | | | | | | | | | |
| | 2013 | | | 2012 | | | | | | | | | |
| | Average | | | Interest | | | Average | | | Interest | | | | | | | | | |
Recorded | Income | Recorded | Income | | | | | | | | |
Investment | Recognized | Investment | Recognized | | | | | | | | |
With no related allowance recorded: | | | | | | | | | | | | | | | | | | | | |
Residential real estate: | | | | | | | | | | | | | | | | | | | | |
Originated by Bank | | $ | 11,188 | | | $ | 383 | | | $ | 10,962 | | | $ | 468 | | | | | | | | | |
Originated by mortgage company | | | 7,508 | | | | 292 | | | | 6,936 | | | | 261 | | | | | | | | | |
Originated by mortgage company – non-prime | | | 2,001 | | | | 138 | | | | 2,415 | | | | 7 | | | | | | | | | |
Commercial real estate: | | | | | | | | | | | | | | | | | | | | |
Commercial | | | 2,704 | | | | 110 | | | | 2,555 | | | | 142 | | | | | | | | | |
Construction and land | | | — | | | | — | | | | 121 | | | | — | | | | | | | | | |
Consumer | | | 3,425 | | | | 124 | | | | 1,753 | | | | 60 | | | | | | | | | |
Commercial and industrial | | | 606 | | | | 8 | | | | 294 | | | | 11 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | $ | 27,432 | | | $ | 1,055 | | | $ | 25,036 | | | $ | 949 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
With an allowance recorded: | | | | | | | | | | | | | | | | | | | | |
Residential real estate: | | | | | | | | | | | | | | | | | | | | |
Originated by Bank | | $ | 36 | | | $ | 1 | | | $ | 1,759 | | | $ | 111 | | | | | | | | | |
Originated by mortgage company | | | — | | | | — | | | | 404 | | | | 14 | | | | | | | | | |
Originated by mortgage company – non-prime | | | — | | | | — | | | | — | | | | — | | | | | | | | | |
Commercial real estate: | | | | | | | | | | | | | | | | | | | | |
Commercial | | | 10,683 | | | | 217 | | | | 8,551 | | | | 314 | | | | | | | | | |
Construction and land | | | 391 | | | | — | | | | — | | | | — | | | | | | | | | |
Consumer | | | 45 | | | | 2 | | | | 824 | | | | 52 | | | | | | | | | |
Commercial and industrial | | | — | | | | — | | | | — | | | | — | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | $ | 11,155 | | | $ | 220 | | | $ | 11,538 | | | $ | 491 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
|
The following table presents the recorded investment in non-accrual loans by class of loans as of December 31, 2013 and 2012 (in thousands): |
|
| | | | | | | | | | | | | | | | | | | | | | | | |
| | December 31, | | | | | | | | | | | | | | | | | |
| | 2013 | | | 2012 | | | | | | | | | | | | | | | | | |
Residential real estate: | | | | | | | | | | | | | | | | | | | | | | | | |
Originated by Bank | | $ | 16,145 | | | $ | 13,156 | | | | | | | | | | | | | | | | | |
Originated by mortgage company | | | 10,589 | | | | 10,477 | | | | | | | | | | | | | | | | | |
Originated by mortgage company – non-prime | | | 1,479 | | | | 2,888 | | | | | | | | | | | | | | | | | |
Residential construction | | | — | | | | — | | | | | | | | | | | | | | | | | |
Commercial real estate: | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial | | | 11,995 | | | | 11,085 | | | | | | | | | | | | | | | | | |
Construction and land | | | 309 | | | | 482 | | | | | | | | | | | | | | | | | |
Consumer | | | 4,328 | | | | 4,540 | | | | | | | | | | | | | | | | | |
Commercial and industrial | | | 515 | | | | 746 | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | $ | 45,360 | | | $ | 43,374 | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
As used in these footnotes, loans “Originated by mortgage company” are mortgage loans originated under the Bank’s underwriting guidelines by the Bank’s shuttered mortgage company, and retained as part of the Bank’s mortgage portfolio. These loans have significantly higher delinquency rates than similar loans originated by the Bank. Loans “Originated by mortgage company – non-prime” are subprime or Alt-A loans which were originated for sale into the secondary market by the Bank’s shuttered mortgage company. |
The following table presents the aging of the recorded investment in past due loans as of December 31, 2013 and 2012 by class of loans (in thousands): |
|
| | | | | | | | | | | | | | | | | | | | | | | | |
| | 30-59 | | | 60-89 | | | Greater | | | Total | | | Loans Not | | | Total | |
Days | Days | than | Past Due | Past Due |
Past Due | Past Due | 90 Days | | |
| | Past Due | | |
December 31, 2013 | | | | | | | | | | | | | | | | | | | | | | | | |
Residential real estate: | | | | | | | | | | | | | | | | | | | | | | | | |
Originated by Bank | | $ | 6,102 | | | $ | 2,526 | | | $ | 13,800 | | | $ | 22,428 | | | $ | 632,653 | | | $ | 655,081 | |
Originated by mortgage company | | | 202 | | | | 108 | | | | 10,031 | | | | 10,341 | | | | 82,544 | | | | 92,885 | |
Originated by mortgage company -non-prime | | | — | | | | — | | | | 1,465 | | | | 1,465 | | | | 1,153 | | | | 2,618 | |
Residential construction | | | 195 | | | | — | | | | — | | | | 195 | | | | 30,626 | | | | 30,821 | |
Commercial real estate: | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial | | | 985 | | | | 849 | | | | 9,217 | | | | 11,051 | | | | 491,817 | | | | 502,868 | |
Construction and land | | | — | | | | — | | | | 309 | | | | 309 | | | | 25,769 | | | | 26,078 | |
Consumer | | | 864 | | | | 298 | | | | 4,219 | | | | 5,381 | | | | 195,302 | | | | 200,683 | |
Commercial and industrial | | | — | | | | — | | | | 515 | | | | 515 | | | | 60,030 | | | | 60,545 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | $ | 8,348 | | | $ | 3,781 | | | $ | 39,556 | | | $ | 51,685 | | | $ | 1,519,894 | | | $ | 1,571,579 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
December 31, 2012 | | | | | | | | | | | | | | | | | | | | | | | | |
Residential real estate: | | | | | | | | | | | | | | | | | | | | | | | | |
Originated by Bank | | $ | 5,863 | | | $ | 782 | | | $ | 10,624 | | | $ | 17,269 | | | $ | 666,833 | | | $ | 684,102 | |
Originated by mortgage company | | | 2,870 | | | | 7 | | | | 10,294 | | | | 13,171 | | | | 101,437 | | | | 114,608 | |
Originated by mortgage company -non-prime | | | 431 | | | | 47 | | | | 2,369 | | | | 2,847 | | | | 1,402 | | | | 4,249 | |
Residential construction | | | — | | | | — | | | | — | | | | — | | | | 9,013 | | | | 9,013 | |
Commercial real estate: | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial | | | 2,422 | | | | 608 | | | | 2,863 | | | | 5,893 | | | | 457,394 | | | | 463,287 | |
Construction and land | | | — | | | | — | | | | 482 | | | | 482 | | | | 11,386 | | | | 11,868 | |
Consumer | | | 719 | | | | 576 | | | | 4,457 | | | | 5,752 | | | | 192,391 | | | | 198,143 | |
Commercial and industrial | | | — | | | | — | | | | 112 | | | | 112 | | | | 57,855 | | | | 57,967 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | $ | 12,305 | | | $ | 2,020 | | | $ | 31,201 | | | $ | 45,526 | | | $ | 1,497,711 | | | $ | 1,543,237 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
|
The Company categorizes all commercial and industrial and commercial real estate loans, except for small business loans, into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation and current economic trends, among other factors. This analysis is performed on a quarterly basis. The Company uses the following definitions for risk ratings: |
Special Mention. Loans classified as Special Mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the Bank’s credit position at some future date. |
Substandard. Loans classified as Substandard are inadequately protected by the current net worth and paying capacity of the borrower or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. |
Doubtful. Loans classified as Doubtful have all the weaknesses inherent in those classified as Substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. |
Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass related loans. Loans not rated are included in groups of homogeneous loans. As of December 31, 2013 and 2012, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows (in thousands): |
|
| | | | | | | | | | | | | | | | | | | | | | | | |
| | Pass | | | Special | | | Substandard | | | Doubtful | | | Total | | | | | |
Mention | | | | |
December 31, 2013 | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial real estate: | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial | | $ | 471,435 | | | $ | — | | | $ | 30,576 | | | $ | 857 | | | $ | 502,868 | | | | | |
Construction and land | | | 25,018 | | | | — | | | | 1,059 | | | | — | | | | 26,077 | | | | | |
Commercial and industrial | | | 59,089 | | | | 1,070 | | | | 386 | | | | — | | | | 60,545 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | $ | 555,542 | | | $ | 1,070 | | | $ | 32,021 | | | $ | 857 | | | $ | 589,490 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
December 31, 2012 | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial real estate: | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial | | $ | 429,393 | | | $ | 1,775 | | | $ | 31,275 | | | $ | 844 | | | $ | 463,287 | | | | | |
Construction and land | | | 10,880 | | | | 506 | | | | 482 | | | | — | | | | 11,868 | | | | | |
Commercial and industrial | | | 57,341 | | | | — | | | | 391 | | | | 235 | | | | 57,967 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | $ | 497,614 | | | $ | 2,281 | | | $ | 32,148 | | | $ | 1,079 | | | $ | 533,122 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
|
For residential and consumer loan classes, the Company evaluates credit quality based on the aging status of the loan, which was previously presented, and by payment activity. The following table presents the recorded investment in residential and consumer loans based on payment activity as of December 31, 2013 and 2012 (in thousands): |
|
| | | | | | | | | | | | | | | | | | | | | | | | |
| | Residential Real Estate | | | | | | | | |
| | Originated | | | Originated by | | | Originated by | | | Residential | | | Consumer | | | | | |
by Bank | mortgage | mortgage | construction | | | | |
| company | company – | | | | | |
| | non-prime | | | | | |
31-Dec-13 | | | | | | | | | | | | | | | | | | | | | | | | |
Performing | | $ | 638,936 | | | $ | 82,296 | | | $ | 1,139 | | | $ | 30,821 | | | $ | 196,355 | | | | | |
Non-performing | | | 16,145 | | | | 10,589 | | | | 1,479 | | | | — | | | | 4,328 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | $ | 655,081 | | | $ | 92,885 | | | $ | 2,618 | | | $ | 30,821 | | | $ | 200,683 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
31-Dec-12 | | | | | | | | | | | | | | | | | | | | | | | | |
Performing | | $ | 670,946 | | | $ | 104,131 | | | $ | 1,361 | | | $ | 9,013 | | | $ | 193,603 | | | | | |
Non-performing | | | 13,156 | | | | 10,477 | | | | 2,888 | | | | — | | | | 4,540 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | $ | 684,102 | | | $ | 114,608 | | | $ | 4,249 | | | $ | 9,013 | | | $ | 198,143 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
The Company classifies certain loans as troubled debt restructurings (“TDR”) when credit terms to a borrower in financial difficulty are modified. The modifications may include a reduction in rate, an extension in term and/or the capitalization of past due amounts. One-to-four family and consumer loans where the borrower’s debt is discharged in a bankruptcy filing are also considered troubled debt restructurings. For these loans, the Bank retains its security interest in the real estate collateral. Included in the non-accrual loan total at December 31, 2013, 2012 and 2011 were $9,663,000, $18,160,000 and $14,491,000, respectively, of troubled debt restructurings. At December 31, 2013, 2012 and 2011 the Company has allocated $1,816,000, $2,418,000 and $1,985,000, respectively, of specific reserves to loans which are classified as troubled debt restructurings. Non-accrual loans which become troubled debt restructurings are generally returned to accrual status after six months of performance. In addition to the troubled debt restructurings included in non-accrual loans, the Company also has loans classified as troubled debt restructuring which are accruing at December 31, 2013, 2012 and 2011 which totaled $21,456,000, $17,733,000 and $13,118,000, respectively. Troubled debt restructurings with six months of performance are considered in the allowance for loan losses similar to other performing loans. Troubled debt restructurings which are non-accrual or classified are considered in the allowance for loan losses similar to other non-accrual or classified loans. |
|
The following table presents information about troubled debt restructurings which occurred during the years ended December 31, 2013 and 2012, and troubled debt restructurings modified within the previous year and which defaulted during the years ended December 31, 2013 and 2012 (dollars in thousands): |
|
| | | | | | | | | | | | | | | | | | | | | | | | |
| | Number | | | Pre-modification | | | Post-modification | | | | | | | | | | | | | |
of Loans | Recorded Investment | Recorded Investment | | | | | | | | | | | | |
Year ended December 31, 2013 | | | | | | | | | | | | | | | | | | | | | | | | |
Troubled Debt Restructurings: | | | | | | | | | | | | | | | | | | | | | | | | |
Residential real estate: | | | | | | | | | | | | | | | | | | | | | | | | |
Originated by Bank | | | 4 | | | $ | 926 | | | $ | 926 | | | | | | | | | | | | | |
Originated by mortgage company | | | 2 | | | | 778 | | | | 770 | | | | | | | | | | | | | |
Consumer | | | 12 | | | | 601 | | | | 439 | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| | Number | | | Recorded Investment | | | | | | | | | | | | | | | | |
of Loans | | | | | | | | | | | | |
Troubled Debt Restructurings | | | | | | | | | | | | | | | | | | | | | | | | |
Which Subsequently Defaulted: | | | | | | | | | | | | | | | | | | | | | | | | |
Residential real estate: | | | | | | | | | | | | | | | | | | | | | | | | |
Originated by Bank | | | 1 | | | $ | 61 | | | | | | | | | | | | | | | | | |
Originated by mortgage company | | | 1 | | | | 239 | | | | | | | | | | | | | | | | | |
Consumer | | | 1 | | | | 12 | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| | Number | | | Pre-modification | | | Post-modification | | | | | | | | | | | | | |
of Loans | Recorded Investment | Recorded Investment | | | | | | | | | | | | |
Year ended December 31, 2012 | | | | | | | | | | | | | | | | | | | | | | | | |
Troubled Debt Restructurings: | | | | | | | | | | | | | | | | | | | | | | | | |
Residential real estate: | | | | | | | | | | | | | | | | | | | | | | | | |
Originated by Bank | | | 11 | | | $ | 2,462 | | | $ | 2,392 | | | | | | | | | | | | | |
Originated by mortgage company | | | 3 | | | | 1,051 | | | | 1,051 | | | | | | | | | | | | | |
Commercial real estate: | | | 1 | | | | 360 | | | | 255 | | | | | | | | | | | | | |
Commercial | | | | | | | | | | | | | | | | | | | | | | | | |
Consumer | | | 2 | | | | 1,305 | | | | 1,275 | | | | | | | | | | | | | |
Commercial and industrial | | | 13 | | | | 1,152 | | | | 998 | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| | Number | | | Recorded Investment | | | | | | | | | | | | | | | | |
of Loans | | | | | | | | | | | | |
Troubled Debt Restructurings | | | | | | | | | | | | | | | | | | | | | | | | |
Which Subsequently Defaulted: | | | None | | | | None | | | | | | | | | | | | | | | | | |
The Bank’s mortgage loans are pledged to secure FHLB advances. |