Loans Receivable, Net | 12 Months Ended |
Dec. 31, 2014 |
Receivables [Abstract] | |
Loans Receivable, Net | (4) Loans Receivable, Net |
A summary of loans receivable at December 31, 2014 and 2013 follows (in thousands): |
|
| | | | | | | | | | | | | | | | | | | | | | | | |
| | December 31, | | | | | | | | | | | | | | | | | |
| | 2014 | | | 2013 | | | | | | | | | | | | | | | | | |
Real estate mortgage: | | | | | | | | | | | | | | | | | | | | | | | | |
One-to-four family | | $ | 737,889 | | | $ | 750,585 | | | | | | | | | | | | | | | | | |
Commercial real estate, multi-family and land | | | 649,951 | | | | 528,945 | | | | | | | | | | | | | | | | | |
Residential construction | | | 47,552 | | | | 30,821 | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | 1,435,392 | | | | 1,310,351 | | | | | | | | | | | | | | | | | |
Consumer | | | 199,349 | | | | 200,683 | | | | | | | | | | | | | | | | | |
Commercial and industrial | | | 83,946 | | | | 60,545 | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total loans | | | 1,718,687 | | | | 1,571,579 | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Loans in process | | | (16,731 | ) | | | (12,715 | ) | | | | | | | | | | | | | | | | |
Deferred origination costs, net | | | 3,207 | | | | 3,526 | | | | | | | | | | | | | | | | | |
Allowance for loan losses | | | (16,317 | ) | | | (20,930 | ) | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | (29,841 | ) | | | (30,119 | ) | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | $ | 1,688,846 | | | $ | 1,541,460 | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
The Bank’s mortgage loans are pledged to secure FHLB advances. |
At December 31, 2014, 2013 and 2012 loans in the amount of $18,307,000, $45,360,000, and $43,374,000, respectively, were three or more months delinquent or in the process of foreclosure and the Company was not accruing interest income on these loans and has reversed previously accrued interest. 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, 2014, the impaired loan portfolio totaled $36,979,000 for which there was a specific allocation in the allowance for loan losses of $2,161,000. 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. The average balance of impaired loans for the years ended December 31, 2014, 2013 and 2012 was $41,023,000, $38,587,000, and $36,574,000, respectively. If interest income on non-accrual loans and impaired loans had been current in accordance with their original terms, approximately $1,630,000, $2,513,000 and $2,370,000, of interest income for the years ended December 31, 2014, 2013 and 2012, respectively, would have been recorded. At December 31, 2014, 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, 2014, 2013 and 2012 is as follows (in thousands): |
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| | | | | | | | | | | | | | | | | | | | | | | | |
| | Years Ended December 31, | | | | | | | | | | | | | |
| | 2014 | | | 2013 | | | 2012 | | | | | | | | | | | | | |
Balance at beginning of year | | $ | 20,930 | | | $ | 20,510 | | | $ | 18,230 | | | | | | | | | | | | | |
Provision charged to operations | | | 2,630 | | | | 2,800 | | | | 7,900 | | | | | | | | | | | | | |
Charge-offs | | | (7,827 | ) | | | (3,521 | ) | | | (7,084 | ) | | | | | | | | | | | | |
Recoveries | | | 584 | | | | 1,141 | | | | 1,464 | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Balance at end of year | | $ | 16,317 | | | $ | 20,930 | | | $ | 20,510 | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
|
The following table presents an analysis of the allowance for loan losses for the years ended December 31, 2014 and 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, 2014 and 2013 (in thousands): |
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| | | | | | | | | | | | | | | | | | | | | | | | |
| | Residential | | | Commercial | | | Consumer | | | Commercial | | | Unallocated | | | Total | |
Real Estate | Real Estate | and |
| | Industrial |
For the year ended December 31, 2014 | | | | | | | | | | | | | | | | | | | | |
Allowance for loan losses: | | | | | | | | | | | | | | | | | | | | |
Balance at beginning of year | | $ | 4,859 | | | $ | 10,371 | | | $ | 1,360 | | | $ | 1,383 | | | $ | 2,957 | | | $ | 20,930 | |
Provision (benefit) charged to operations | | | 5,862 | | | | (1,122 | ) | | | 211 | | | | (446 | ) | | | (1,875 | )(A) | | | 2,630 | |
Charge-offs | | | (6,955 | ) | | | (323 | ) | | | (471 | ) | | | (78 | ) | | | — | | | | (7,827 | ) |
Recoveries | | | 525 | | | | 9 | | | | 46 | | | | 4 | | | | — | | | | 584 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Balance at end of year | | $ | 4,291 | | | $ | 8,935 | | | $ | 1,146 | | | $ | 863 | | | $ | 1,082 | | | $ | 16,317 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
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 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
December 31, 2014 | | | | | | | | | | | | | | | | | | | | |
Allowance for loan losses: | | | | | | | | | | | | | | | | | | | | |
Ending allowance balance attributed to loans: | | | | | | | | | | | | | | | | | | | | |
Individually evaluated for impairment | | $ | 88 | | | $ | 1,741 | | | $ | 332 | | | $ | — | | | $ | — | | | $ | 2,161 | |
Collectively evaluated for impairment | | | 4,203 | | | | 7,194 | | | | 814 | | | | 863 | | | | 1,082 | | | | 14,156 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total ending allowance balance | | $ | 4,291 | | | $ | 8,935 | | | $ | 1,146 | | | $ | 863 | | | $ | 1,082 | | | $ | 16,317 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Loans: | | | | | | | | | | | | | | | | | | | | |
Loans individually evaluated for impairment | | $ | 12,879 | | | $ | 21,165 | | | $ | 2,221 | | | $ | 714 | | | $ | — | | | $ | 36,979 | |
Loans collectively evaluated for impairment | | | 772,562 | | | | 628,786 | | | | 197,128 | | | | 83,232 | | | | — | | | | 1,681,708 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total ending loan balance | | $ | 785,441 | | | $ | 649,951 | | | $ | 199,349 | | | $ | 83,946 | | | $ | — | | | $ | 1,718,687 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
December 31, 2013 | | | | | | | | | | | | | | | | | | | | | | | | |
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 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
|
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(A) | The reduction in the unallocated portion of the allowance for loan losses is due to the improved risk profile of the loan portfolio and related credit metrics, and the lower level of uncertainty relating to future loan losses. As a result of the bulk sale of most non-performing residential loans, the total amount of non-performing loans decreased, non-performing loans as percent of total loans decreased, and the allowance for loan losses as a percent of total non-performing loans increased, as compared to December 31, 2013 | | | | | | | | | | | | | | | | | | | | | | | |
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A summary of impaired loans at December 31, 2014 and 2013 is as follows (in thousands): |
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| | | | | | | | | | | | | | | | | | | | | | | | |
| | December 31, | | | | | | | | | | | | | | | | | |
| | 2014 | | | 2013 | | | | | | | | | | | | | | | | | |
Year-end impaired loans with no allocated allowance for loan losses | | $ | 26,487 | | | $ | 24,457 | | | | | | | | | | | | | | | | | |
Year-end impaired loans with allocated allowance for loan losses | | | 10,492 | | | | 15,446 | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | $ | 36,979 | | | $ | 39,903 | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Amount of the allowance for loan losses allocated | | $ | 2,161 | | | $ | 3,647 | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
At December 31, 2014, impaired loans include troubled debt restructuring loans of $23,493,000 of which $21,462,000 were performing in accordance with their restructured terms and were accruing interest. 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. |
The summary of loans individually evaluated for impairment by class of loans as of December 31, 2014 and 2013 and for the years ended December 31, 2014 and 2013 follows (in thousands): |
|
| | | | | | | | | | | | | | | | | | | | | | | | |
| | Unpaid | | | Recorded | | | Allowance for | | | | | | | | | | | | | |
Principal | Investment | Loan Losses | | | | | | | | |
Balance | | Allocated | | | | | | | | |
As of December 31, 2014 | | | | | | | | | | | | | | | | | | | | | | | | |
With no related allowance recorded: | | | | | | | | | | | | | | | | | | | | | | | | |
Residential real estate | | $ | 12,351 | | | $ | 11,931 | | | $ | — | | | | | | | | | | | | | |
Commercial real estate: | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial | | | 12,174 | | | | 12,142 | | | | — | | | | | | | | | | | | | |
Construction and land | | | — | | | | — | | | | — | | | | | | | | | | | | | |
Consumer | | | 2,243 | | | | 1,700 | | | | — | | | | | | | | | | | | | |
Commercial and industrial | | | 714 | | | | 714 | | | | — | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | $ | 27,482 | | | $ | 26,487 | | | $ | — | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
With an allowance recorded: | | | | | | | | | | | | | | | | | | | | | | | | |
Residential real estate | | $ | 948 | | | $ | 948 | | | $ | 88 | | | | | | | | | | | | | |
Commercial real estate: | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial | | | 9,023 | | | | 9,023 | | | | 1,741 | | | | | | | | | | | | | |
Construction and land | | | — | | | | — | | | | — | | | | | | | | | | | | | |
Consumer | | | 521 | | | | 521 | | | | 332 | | | | | | | | | | | | | |
Commercial and industrial | | | — | | | | — | | | | — | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | $ | 10,492 | | | $ | 10,492 | | | $ | 2,161 | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | | | | | | | | |
| | Unpaid | | | Recorded | | | Allowance for | | | | | | | | | | | | | |
Principal | Investment | Loan Losses | | | | | | | | |
Balance | | Allocated | | | | | | | | |
As of December 31, 2013 | | | | | | | | | | | | | | | | | | | | | | | | |
With no related allowance recorded: | | | | | | | | | | | | | | | | | | | | | | | | |
Residential real estate | | $ | 19,559 | | | $ | 18,130 | | | $ | — | | | | | | | | | | | | | |
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 | | $ | 62 | | | $ | 62 | | | $ | 2 | | | | | | | | | | | | | |
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 | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
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| | | | | | | | | | | | | | | | | | | | | | | | |
| | For the years ended of December 31, | | | | | | | | | |
| | 2014 | | | 2013 | | | | | | | | | |
| | Average | | | Interest | | | Average | | | Interest | | | | | | | | | |
Recorded | Income | Recorded | Income | | | | | | | | |
Investment | Recognized | Investment | Recognized | | | | | | | | |
With no related allowance recorded: | | | | | | | | | | | | | | | | | | | | |
Residential real estate | | $ | 16,253 | | | $ | 662 | | | $ | 20,697 | | | $ | 813 | | | | | | | | | |
Commercial real estate: | | | | | | | | | | | | | | | | | | | | |
Commercial | | | 11,396 | | | | 384 | | | | 2,704 | | | | 110 | | | | | | | | | |
Construction and land | | | 76 | | | | — | | | | — | | | | — | | | | | | | | | |
Consumer | | | 1,982 | | | | 96 | | | | 3,425 | | | | 124 | | | | | | | | | |
Commercial and industrial | | | 386 | | | | 10 | | | | 606 | | | | 8 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | $ | 30,093 | | | $ | 1,152 | | | $ | 27,432 | | | $ | 1,055 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
With an allowance recorded: | | | | | | | | | | | | | | | | | | | | |
Residential real estate | | $ | 990 | | | $ | 59 | | | $ | 36 | | | $ | 1 | | | | | | | | | |
Commercial real estate: | | | | | | | | | | | | | | | | | | | | |
Commercial | | | 9,196 | | | | 77 | | | | 10,683 | | | | 217 | | | | | | | | | |
Construction and land | | | 152 | | | | — | | | | 391 | | | | — | | | | | | | | | |
Consumer | | | 592 | | | | 48 | | | | 45 | | | | 2 | | | | | | | | | |
Commercial and industrial | | | — | | | | — | | | | — | | | | — | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | $ | 10,930 | | | $ | 184 | | | $ | 11,155 | | | $ | 220 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
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The following table presents the recorded investment in non-accrual loans by class of loans as of December 31, 2014 and 2013 (in thousands). The decrease from the prior year was primarily due to the bulk sale of most non-performing residential and consumer mortgage loans with an aggregate carrying value of $23.1 million. |
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| | | | | | | | | | | | | | | | | | | | | | | | |
| | December 31, | | | | | | | | | | | | | | | | | |
| | 2014 | | | 2013 | | | | | | | | | | | | | | | | | |
Residential real estate: | | | | | | | | | | | | | | | | | | | | | | | | |
Residential | | $ | 3,115 | | | $ | 28,213 | | | | | | | | | | | | | | | | | |
Residential construction | | | — | | | | — | | | | | | | | | | | | | | | | | |
Commercial real estate: | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial | | | 12,558 | | | | 11,995 | | | | | | | | | | | | | | | | | |
Construction and land | | | 200 | | | | 309 | | | | | | | | | | | | | | | | | |
Consumer | | | 1,877 | | | | 4,328 | | | | | | | | | | | | | | | | | |
Commercial and industrial | | | 557 | | | | 515 | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | $ | 18,307 | | | $ | 45,360 | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
The following table presents the aging of the recorded investment in past due loans as of December 31, 2014 and 2013 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, 2014 | | | | | | | | | | | | | | | | | | | | | | | | |
Residential real estate: | | | | | | | | | | | | | | | | | | | | | | | | |
Residential | | $ | 7,365 | | | $ | 1,695 | | | $ | 1,619 | | | $ | 10,679 | | | $ | 727,210 | | | $ | 737,889 | |
Residential construction | | | — | | | | — | | | | — | | | | — | | | | 47,552 | | | | 47,552 | |
Commercial real estate: | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial | | | 119 | | | | — | | | | 12,558 | | | | 12,677 | | | | 587,387 | | | | 600,064 | |
Construction and land | | | — | | | | — | | | | 200 | | | | 200 | | | | 49,687 | | | | 49,887 | |
Consumer | | | 845 | | | | 232 | | | | 1,833 | | | | 2,910 | | | | 196,439 | | | | 199,349 | |
Commercial and industrial | | | — | | | | — | | | | 557 | | | | 557 | | | | 83,389 | | | | 83,946 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | $ | 8,329 | | | $ | 1,927 | | | $ | 16,767 | | | $ | 27,023 | | | $ | 1,691,664 | | | $ | 1,718,687 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
December 31, 2013 | | | | | | | | | | | | | | | | | | | | | | | | |
Residential real estate: | | | | | | | | | | | | | | | | | | | | | | | | |
Residential | | $ | 6,304 | | | $ | 2,634 | | | $ | 25,296 | | | $ | 34,234 | | | $ | 716,350 | | | $ | 750,584 | |
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 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
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. |
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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, 2014 and 2013, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows (in thousands): |
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| | | | | | | | | | | | | | | | | | | | | | | | |
| | Pass | | | Special | | | Substandard | | | Doubtful | | | Total | | | | | |
Mention | | | | |
December 31, 2014 | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial real estate: | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial | | $ | 562,756 | | | $ | 12,684 | | | $ | 24,624 | | | $ | — | | | $ | 600,064 | | | | | |
Construction and land | | | 49,231 | | | | — | | | | 656 | | | | — | | | | 49,887 | | | | | |
Commercial and industrial | | | 82,693 | | | | 173 | | | | 1,080 | | | | — | | | | 83,946 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | $ | 694,680 | | | $ | 12,857 | | | $ | 26,360 | | | $ | — | | | $ | 733,897 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
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 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
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, 2014 and 2013 (in thousands): |
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| | | | | | | | | | | | | | | | | | | | | | | | |
| | Residential Real Estate | | | | | | | | | | | | | |
| | Residential | | | Residential | | | Consumer | | | | | | | | | | | | | |
construction | | | | | | | | | | | | |
31-Dec-14 | | | | | | | | | | | | | | | | | | | | | | | | |
Performing | | $ | 734,774 | | | $ | 47,552 | | | $ | 197,472 | | | | | | | | | | | | | |
Non-performing | | | 3,115 | | | | — | | | | 1,877 | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | $ | 737,889 | | | $ | 47,552 | | | $ | 199,349 | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
31-Dec-13 | | | | | | | | | | | | | | | | | | | | | | | | |
Performing | | $ | 722,371 | | | $ | 30,821 | | | $ | 196,355 | | | | | | | | | | | | | |
Non-performing | | | 28,213 | | | | — | | | | 4,328 | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | $ | 750,584 | | | $ | 30,821 | | | $ | 200,683 | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
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, 2014, 2013 and 2012 were $2,031,000, $9,663,000 and $18,160,000, respectively, of troubled debt restructurings. At December 31, 2014, 2013 and 2012, the Company has allocated $419,000, $1,816,000 and $2,418,000, 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, 2014, 2013 and 2012 which totaled $21,462,000, $21,456,000 and $17,733,000, respectively. All troubled debt restructurings, regardless of payment status, are considered impaired loans and are individually evaluated as part of the determination of the allowance for loan losses. |
The following table presents information about troubled debt restructurings which occurred during the years ended December 31, 2014 and 2013, and troubled debt restructurings modified within the previous year and which defaulted during the years ended December 31, 2014 and 2013 (dollars in thousands): |
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| | | | | | | | | | | | | | | | | | | | | | | | |
| | Number | | | Pre-modification | | | Post-modification | | | | | | | | | | | | | |
of Loans | Recorded Investment | Recorded Investment | | | | | | | | | | | | |
Year ended December 31, 2014 | | | | | | | | | | | | | | | | | | | | | | | | |
Troubled Debt Restructurings: | | | | | | | | | | | | | | | | | | | | | | | | |
Residential real estate | | | 10 | | | $ | 2,313 | | | $ | 1,901 | | | | | | | | | | | | | |
Consumer | | | 10 | | | | 234 | | | | 178 | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| | Number | | | Recorded Investment | | | | | | | | | | | | | | | | |
of Loans | | | | | | | | | | | | |
Troubled Debt Restructurings | | | | | | | | | | | | | | | | | | | | | | | | |
Which Subsequently Defaulted: | | | | | | | | | | | | | | | | | | | | | | | | |
Consumer | | | 1 | | | $ | 40 | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| | Number | | | Pre-modification | | | Post-modification | | | | | | | | | | | | | |
of Loans | Recorded Investment | Recorded Investment | | | | | | | | | | | | |
Year ended December 31, 2013 | | | | | | | | | | | | | | | | | | | | | | | | |
Troubled Debt Restructurings: | | | | | | | | | | | | | | | | | | | | | | | | |
Residential real estate | | | 6 | | | $ | 1,704 | | | $ | 1,696 | | | | | | | | | | | | | |
Consumer | | | 12 | | | | 601 | | | | 439 | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| | Number | | | Recorded Investment | | | | | | | | | | | | | | | | |
of Loans | | | | | | | | | | | | |
Troubled Debt Restructurings | | | | | | | | | | | | | | | | | | | | | | | | |
Which Subsequently Defaulted: | | | | | | | | | | | | | | | | | | | | | | | | |
Residential real estate | | | 2 | | | $ | 300 | | | | | | | | | | | | | | | | | |
Consumer | | | 1 | | | | 12 | | | | | | | | | | | | | | | | | |