Loan Quality and Allowance for Loan Losses | 9 Months Ended |
Mar. 31, 2015 |
Receivables [Abstract] | |
Loan Quality and Allowance for Loan Losses | |
11. LOAN QUALITY AND ALLOWANCE FOR LOAN LOSSES |
Past Due Loans. A loan’s “past due” status is generally determined based upon its “P&I delinquency” status in conjunction with its “past maturity” status, where applicable. A loan’s “P&I delinquency” status is based upon the number of calendar days between the date of the earliest P&I payment due and the “as of” measurement date. A loan’s “past maturity” status, where applicable, is based upon the number of calendar days between a loan’s contractual maturity date and the “as of” measurement date. Based upon the larger of these criteria, loans are categorized into the following “past due” tiers for financial statement reporting and disclosure purposes: Current (including 1-29 days past due), 30-59 days, 60-89 days and 90 or more days. |
Nonaccrual Loans. Loans are generally placed on nonaccrual status when contractual payments become 90 days or more past due, and are otherwise placed on nonaccrual status when the Company does not expect to receive all P&I payments owed substantially in accordance with the terms of the loan agreement. Loans that become 90 days past maturity, but remain non-delinquent with regard to ongoing P&I payments, may remain on accrual status if: (1) the Company expects to receive all P&I payments owed substantially in accordance with the terms of the loan agreement, past maturity status notwithstanding, and (2) the borrower is working actively and cooperatively with the Company to remedy the past maturity status through an expected refinance, payoff or modification of the loan agreement that is not expected to result in a troubled debt restructuring (“TDR”) classification. All TDRs are placed on nonaccrual status for a period of no less than six months after restructuring, irrespective of past due status. The sum of nonaccrual loans plus accruing loans that are 90 days or more past due are generally defined collectively as “nonperforming loans”. |
Payments received in cash on nonaccrual loans, including both the principal and interest portions of those payments, are generally applied to reduce the carrying value of the loan for financial statement purposes. When a loan is returned to accrual status, any accumulated interest payments previously applied to the carrying value of the loan during its nonaccrual period are recognized as interest income as an adjustment to the loan’s yield over its remaining term. |
Loans that are not considered to be TDRs are generally returned to accrual status when payments due are brought current and the Company expects to receive all remaining P&I payments owed substantially in accordance with the terms of the loan agreement. Non-TDR loans may also be returned to accrual status when a loan’s payment status falls below 90 days past due and the Company: (1) expects receipt of the remaining past due amounts within a reasonable timeframe, and (2) expects to receive all remaining P&I payments owed substantially in accordance with the terms of the loan agreement. |
Acquired Loans. Loans that we acquire through acquisitions are recorded at fair value with no carryover of the related allowance for credit losses. Determining the fair value of the loans involves estimating the amount and timing of principal and interest cash flows expected to be collected on the loans and discounting those cash flows at a market rate of interest. |
The excess of cash flows expected at acquisition over the estimated fair value is referred to as the accretable yield and is recognized into interest income over the remaining life of the loan. The difference between contractually required payments at acquisition and the cash flows expected to be collected at acquisition is referred to as the nonaccretable yield. The nonaccretable yield represents estimated future credit losses expected to be incurred over the life of the loan. Subsequent decreases to the expected cash flows require us to evaluate the need for an allowance for credit losses. Subsequent improvements in expected cash flows result in the reversal of a corresponding amount of the nonaccretable yield which we then reclassify as accretable yield that is recognized into interest income over the remaining life of the loan using the interest method. Our evaluation of the amount of future cash flows that we expect to collect is performed in a similar manner as that used to determine our allowance for credit losses. Charge-offs of the principal amount on acquired loans would be first applied to the nonaccretable yield portion of the fair value adjustment. |
Acquired loans that met the criteria for nonaccrual of interest prior to the acquisition may be considered performing upon acquisition, regardless of whether the customer is contractually delinquent, if we can reasonably estimate the timing and amount of the expected cash flows on such loans and if we expect to fully collect the new carrying value of the loans. As such, we may no longer consider the loan to be nonaccrual or nonperforming and may accrue interest on these loans, including the impact of any accretable yield. |
At March 31, 2015, the remaining outstanding principal balance and carrying amount of acquired credit-impaired loans totaled approximately $10,610,000 and $9,022,000, respectively. By comparison, at June 30, 2014, the remaining outstanding principal balance and carrying amount of acquired credit-impaired loans totaled approximately $11,778,000 and $10,138,000, respectively. |
The carrying amount of acquired credit-impaired loans for which interest is not being recognized due to the uncertainty of the cash flows relating to such loans totaled $1,947,000 and $2,374,000 at March 31, 2015 and June 30, 2014, respectively. |
The balance of the allowance for loan losses at March 31, 2015 and June 30, 2014 included approximately $88,000 and $98,000 of valuation allowances, respectively, for a specifically identified impairment attributable to acquired credit-impaired loans. The valuation allowances were attributable to additional impairment recognized on the applicable loans subsequent to their acquisition, net of any charge offs recognized during that time. |
The following table presents the changes in the accretable yield relating to the acquired credit-impaired loans for the three and nine months ended March 31, 2015 and March 31, 2014. |
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| Three Months Ended | | | Nine Months Ended | | | | | | | | | | | | | | | | | | | | | | | | | |
31-Mar-15 | 31-Mar-15 | | | | | | | | | | | | | | | | | | | | | | | | |
| (In Thousands) | | | (In Thousands) | | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning balance | $ | 1,684 | | | $ | 1,891 | | | | | | | | | | | | | | | | | | | | | | | | | |
Accretion to interest income | | (379 | ) | | | (586 | ) | | | | | | | | | | | | | | | | | | | | | | | | |
Disposals | | - | | | | - | | | | | | | | | | | | | | | | | | | | | | | | | |
Reclassifications from nonaccretable difference | | - | | | | - | | | | | | | | | | | | | | | | | | | | | | | | | |
Ending balance | $ | 1,305 | | | $ | 1,305 | | | | | | | | | | | | | | | | | | | | | | | | | |
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| Three Months Ended | | | Nine Months Ended | | | | | | | | | | | | | | | | | | | | | | | | | |
31-Mar-14 | 31-Mar-14 | | | | | | | | | | | | | | | | | | | | | | | | |
| (In Thousands) | | | (In Thousands) | | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning balance | $ | 2,123 | | | $ | 741 | | | | | | | | | | | | | | | | | | | | | | | | | |
Accretion to interest income | | (60 | ) | | | (172 | ) | | | | | | | | | | | | | | | | | | | | | | | | |
Disposals | | - | | | | - | | | | | | | | | | | | | | | | | | | | | | | | | |
Reclassifications from nonaccretable difference | | - | | | | 1,494 | | | | | | | | | | | | | | | | | | | | | | | | | |
Ending balance | $ | 2,063 | | | $ | 2,063 | | | | | | | | | | | | | | | | | | | | | | | | | |
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Classification of Assets. In compliance with regulatory guidelines, the Company’s loan review system includes an evaluation process through which certain loans exhibiting adverse credit quality characteristics are classified “Special Mention”, “Substandard”, “Doubtful” or “Loss”. |
An asset is classified as “Substandard” if it is inadequately protected by the paying capacity and net worth of the obligor or the collateral pledged, if any. Substandard assets include those characterized by the distinct possibility that the insured institution will sustain some loss if the deficiencies are not corrected. Assets classified as “Doubtful” have all of the weaknesses inherent in those classified as “Substandard”, with the added characteristic that the weaknesses present make collection or liquidation in full highly questionable and improbable, on the basis of currently existing facts, conditions and values. Assets, or portions thereof, classified as “Loss” are considered uncollectible or of so little value that their continuance as assets is not warranted. |
Management evaluates loans classified as substandard or doubtful for impairment in accordance with applicable accounting requirements. As discussed in greater detail below, a valuation allowance is established through the provision for loan losses for any impairment identified through such evaluations. |
To the extent that impairment identified on a loan is classified as “Loss”, that portion of the loan is charged off against the allowance for loan losses. The classification of loan impairment as “Loss” is based upon a confirmed expectation for loss. For loans primarily secured by real estate, the expectation for loss is generally confirmed when: (a) impairment is identified on a loan individually evaluated in the manner described below, and (b) the loan is presumed to be collateral-dependent such that the source of loan repayment is expected to arise solely from sale of the collateral securing the applicable loan. Impairment identified on non-collateral-dependent loans may or may not be eligible for a “Loss” classification depending upon the other salient facts and circumstances that affect the manner and likelihood of loan repayment. However, loan impairment that is classified as “Loss” is charged off against the allowance for loan losses concurrent with that classification. |
The timeframe between when loan impairment is first identified by the Company and when such impairment may ultimately be charged off varies by loan type. For example, unsecured consumer and commercial loans are generally classified as “Loss” at 120 days past due, resulting in their outstanding balances being charged off at that time. For the Company’s secured loans, the condition of collateral dependency generally serves as the basis upon which a “Loss” classification is ascribed to a loan’s impairment thereby confirming an expected loss and triggering charge off of that impairment. While the facts and circumstances that effect the manner and likelihood of repayment vary from loan to loan, the Company generally considers the referral of a loan to foreclosure, coupled with the absence of other viable sources of loan repayment, to be demonstrable evidence of collateral dependency. Depending upon the nature of the collections process applicable to a particular loan, an early determination of collateral dependency could result in a nearly concurrent charge off of a newly identified impairment. By contrast, a presumption of collateral dependency may only be determined after the completion of lengthy loan collection and/or workout efforts, including bankruptcy proceedings, which may extend several months or more after a loan’s impairment is first identified. |
In a limited number of cases, the entire net carrying value of a loan may be determined to be impaired based upon a collateral-dependent impairment analysis. However, the borrower’s adherence to contractual repayment terms precludes the recognition of a “Loss” classification and charge off. In these limited cases, a valuation allowance equal to 100% of the impaired loan’s carrying value may be maintained against the net carrying value of the asset. |
Assets which do not currently expose the Company to a sufficient degree of risk to warrant an adverse classification but have some credit deficiencies or other potential weaknesses are designated as “Special Mention” by management. Adversely classified assets, together with those rated as “Special Mention”, are generally referred to as “Classified Assets”. Non-classified assets are internally rated within one of four “Pass” categories or as “Watch” with the latter denoting a potential deficiency or concern that warrants increased oversight or tracking by management until remediated. |
Management performs a classification of assets review, including the regulatory classification of assets, generally on a monthly basis. The results of the classification of assets review are validated by the Company’s third party loan review firm during their quarterly independent review. In the event of a difference in rating or classification between those assigned by the internal and external resources, the Company will generally utilize the more critical or conservative rating or classification. Final loan ratings and regulatory classifications are presented monthly to the Board of Directors and are reviewed by regulators during the examination process. |
Allowance for Loan Losses. The allowance for loan losses is a valuation account that reflects the Company’s estimation of the losses in its loan portfolio to the extent they are both probable and reasonable to estimate. The balance of the allowance is generally maintained through provisions for loan losses that are charged to income in the period that estimated losses on loans are identified by the Company’s loan review system. The Company charges confirmed losses on loans against the allowance as such losses are identified. Recoveries on loans previously charged-off are added back to the allowance. |
The Company’s allowance for loan loss calculation methodology utilizes a “two-tier” loss measurement process that is generally performed monthly. Based upon the results of the classification of assets and credit file review processes described earlier, the Company first identifies the loans that must be reviewed individually for impairment. Factors considered in identifying individual loans to be reviewed include, but may not be limited to, loan type, classification status, contractual payment status, performance/accrual status and impaired status. |
The loans considered by the Company to be eligible for individual impairment review include its commercial mortgage loans, comprising multi-family and nonresidential real estate loans, construction loans, commercial business loans as well as its one-to-four family mortgage loans, home equity loans and home equity lines of credit. |
A reviewed loan is deemed to be impaired when, based on current information and events, it is probable that we will be unable to collect all amounts due according to the contractual terms of the loan agreement. Once a loan is determined to be impaired, management performs an analysis to determine the amount of impairment associated with that loan. |
In measuring the impairment associated with collateral-dependent loans, the fair value of the collateral securing the loan is generally used as a measurement proxy for that of the impaired loan itself as a practical expedient. In the case of real estate collateral, such values are generally determined based upon a discounted market value obtained through an automated valuation module or prepared by a qualified, independent real estate appraiser. The value of non-real estate collateral is similarly determined based upon an independent assessment of fair market value by a qualified resource. |
The Company generally obtains independent appraisals on properties securing mortgage loans when such loans are initially placed on nonperforming or impaired status with such values updated approximately every six to twelve months thereafter throughout the collections, bankruptcy and/or foreclosure processes. Appraised values are typically updated at the point of foreclosure, where applicable, and approximately every six to twelve months thereafter while the repossessed property is held as real estate owned. |
As supported by accounting and regulatory guidance, the Company reduces the fair value of the collateral by estimated selling costs, such as real estate brokerage commissions, to measure impairment when such costs are expected to reduce the cash flows available to repay the loan. |
The Company establishes valuation allowances in the fiscal period during which the loan impairments are identified. The results of management’s individual loan impairment evaluations are validated by the Company’s third party loan review firm during their quarterly independent review. Such valuation allowances are adjusted in subsequent fiscal periods, where appropriate, to reflect any changes in carrying value or fair value identified during subsequent impairment evaluations which are generally updated monthly by management. |
The second tier of the loss measurement process involves estimating the probable and estimable losses which addresses loans not otherwise reviewed individually for impairment as well as those individually reviewed loans that are determined to be non-impaired. Such loans include groups of smaller-balance homogeneous loans that may generally be excluded from individual impairment analysis, and therefore collectively evaluated for impairment, as well as the non-impaired loans within categories that are otherwise eligible for individual impairment review. |
Valuation allowances established through the second tier of the loss measurement process utilize historical and environmental loss factors to collectively estimate the level of probable losses within defined segments of the Company’s loan portfolio. These segments aggregate homogeneous subsets of loans with similar risk characteristics based upon loan type. For allowance for loan loss calculation and reporting purposes, the Company currently stratifies its loan portfolio into seven primary segments: residential mortgage loans, commercial mortgage loans, construction loans, commercial business loans, home equity loans, home equity lines of credit and other consumer loans. |
The risks presented by residential mortgage loans are primarily related to adverse changes in the borrower’s financial condition that threaten repayment of the loan in accordance with its contractual terms. Such risk to repayment can arise from job loss, divorce, illness and the personal bankruptcy of the borrower. For collateral dependent residential mortgage loans, additional risk of loss is presented by potential declines in the fair value of the collateral securing the loan. |
Home equity loans and home equity lines of credit generally share the same risks as those applicable to residential mortgage loans. However, to the extent that such loans represent junior liens, they are comparatively more susceptible to such risks given their subordinate position behind senior liens. |
In addition to sharing similar risks as those presented by residential mortgage loans, risks relating to commercial mortgage also arise from comparatively larger loan balances to single borrowers or groups of related borrowers. Moreover, the repayment of such loans is typically dependent on the successful operation of an underlying real estate project and may be further threatened by adverse changes to demand and supply of commercial real estate as well as changes generally impacting overall business or economic conditions. |
The risks presented by construction loans are generally considered to be greater than those attributable to residential and commercial mortgage loans. Risks from construction lending arise, in part, from the concentration of principal in a limited number of loans and borrowers and the effects of general economic conditions on developers and builders. Moreover, a construction loan can involve additional risks because of the inherent difficulty in estimating both a property’s value at completion of the project and the estimated cost, including interest, of the project. The nature of these loans is such that they are comparatively more difficult to evaluate and monitor than permanent mortgage loans. |
Commercial business loans are also considered to present a comparatively greater risk of loss due to the concentration of principal in a limited number of loans and/or borrowers and the effects of general economic conditions on the business. Commercial business loans may be secured by varying forms of collateral including, but not limited to, business equipment, receivables, inventory and other business assets which may not provide an adequate source of repayment of the outstanding loan balance in the event of borrower default. Moreover, the repayment of commercial business loans is primarily dependent on the successful operation of the underlying business which may be threatened by adverse changes to the demand for the business’ products and/or services as well as the overall efficiency and effectiveness of the business’ operations and infrastructure. |
Finally, our unsecured consumer loans generally have shorter terms and higher interest rates than other forms of lending but generally involve more credit risk due to the lack of collateral to secure the loan in the event of borrower default. Consumer loan repayment is dependent on the borrower’s continuing financial stability, and therefore is more likely to be adversely affected by job loss, divorce, illness and personal bankruptcy. By contrast, our consumer loans also include account loans that are fully secured by the borrower’s deposit accounts and generally present nominal risk to the Bank. |
Each primary segment is further stratified to distinguish between loans originated and purchased through third parties from loans acquired through business combinations. Commercial business loans include secured and unsecured loans as well as loans originated through SBA programs. Additional criteria may be used to further group loans with common risk characteristics. For example, such criteria may distinguish between loans secured by different collateral types or separately identify loans supported by government guarantees such as those issued by the SBA. |
In regard to historical loss factors, the Company’s allowance for loan loss calculation calls for an analysis of historical charge-offs and recoveries for each of the defined segments within the loan portfolio. The Company utilizes a two-year moving average of annual net charge-off rates (charge-offs net of recoveries) by loan segment, where available, to calculate its actual, historical loss experience. The outstanding principal balance of the non-impaired portion of each loan segment is multiplied by the applicable historical loss factor to estimate the level of probable losses based upon the Company’s historical loss experience. |
As noted, the second tier of the Company’s allowance for loan loss calculation also utilizes environmental loss factors to estimate the probable losses within the loan portfolio. Environmental loss factors are based upon specific qualitative criteria representing key sources of risk within the loan portfolio. Such risk criteria includes the level of and trends in nonperforming loans; the effects of changes in credit policy; the experience, ability and depth of the lending function’s management and staff; national and local economic trends and conditions; credit risk concentrations and changes in local and regional real estate values. During fiscal 2014, the environmental factors utilized by the Company in its allowance for loan loss calculation were expanded to include changes in the nature, volume and terms of loans, changes in the quality of loan review systems and resources and the effects of regulatory, legal and other external factors. |
For each category of the loan portfolio, a level of risk, developed from a number of internal and external resources, is assigned to each of the qualitative criteria utilizing a scale ranging from zero (negligible risk) to 15 (high risk), with higher values potentially ascribed to exceptional levels of risk that exceed the standard range, as appropriate. The sum of the risk values, expressed as a whole number, is multiplied by .01% to arrive at an overall environmental loss factor, expressed in basis points, for each loan category. |
The Company incorporates its credit-rating classification system into the calculation of environmental loss factors by loan type by including risk-rating classification “weights” in its calculation of those factors. The Company’s risk-rating classification system ascribes a numerical rating of “1” through “9” to each loan within the portfolio. The ratings “5” through “9” represent the numerical equivalents of the traditional loan classifications “Watch”, “Special Mention”, “Substandard”, “Doubtful” and “Loss”, respectively, while lower ratings, “1” through “4”, represent risk-ratings within the least risky “Pass” category. The environmental loss factor applicable to each non-impaired loan within a category, as described above, is “weighted” by a multiplier based upon the loan’s risk-rating classification. Within any single loan category, a “higher” environmental loss factor is ascribed to those loans with comparatively higher risk-rating classifications resulting in a proportionately greater ALLL requirement attributable to such loans compared to the comparatively lower risk-rated loans within that category. |
In evaluating the impact of the level and trends in nonperforming loans on environmental loss factors, the Company first broadly considers the occurrence and overall magnitude of prior losses recognized on such loans over an extended period of time. For this purpose, losses are considered to include both charge offs as well as loan impairments for which valuation allowances have been recognized through provisions to the allowance for loan losses, but have not yet been charged off. To the extent that prior losses have generally been recognized on nonperforming loans within a category, a basis is established to recognize existing losses on loans collectively evaluated for impairment based upon the current levels of nonperforming loans within that category. Conversely, the absence of material prior losses attributable to delinquent or nonperforming loans within a category may significantly diminish, or even preclude, the consideration of the level of nonperforming loans in the calculation of the environmental loss factors attributable to that category of loans. |
Once the basis for considering the level of nonperforming loans on environmental loss factors is established, the Company then considers the current dollar amount of nonperforming loans by loan type in relation to the total outstanding balance of loans within the category. A greater portion of nonperforming loans within a category in relation to the total suggests a comparatively greater level of risk and expected loss within that loan category and vice-versa. |
In addition to considering the current level of nonperforming loans in relation to the total outstanding balance for each category, the Company also considers the degree to which those levels have changed from period to period. A significant and sustained increase in nonperforming loans over a 12-24 month period suggests a growing level of expected loss within that loan category and vice-versa. |
As noted above, the Company considers these factors in a qualitative, rather than quantitative fashion when ascribing the risk value, as described above, to the level and trends of nonperforming loans that is applicable to a particular loan category. As with all environmental loss factors, the risk value assigned ultimately reflects the Company’s best judgment as to the level of expected losses on loans collectively evaluated for impairment. |
The sum of the probable and estimable loan losses calculated through the first and second tiers of the loss measurement processes as described above, represents the total targeted balance for the Company’s allowance for loan losses at the end of a fiscal period. As noted earlier, the Company establishes all additional valuation allowances in the fiscal period during which additional individually identified loan impairments and additional estimated losses on loans collectively evaluated for impairment are identified. The Company adjusts its balance of valuation allowances through the provision for loan losses as required to ensure that the balance of the allowance for loan losses reflects all probable and estimable loans losses at the close of the fiscal period. Notwithstanding calculation methodology and the noted distinction between valuation allowances established on loans collectively versus individually evaluated for impairment, the Company’s entire allowance for loan losses is available to cover all charge-offs that arise from the loan portfolio. |
Although the Company’s allowance for loans losses is established in accordance with management’s best estimate, actual losses are dependent upon future events and, as such, further additions to the level of loan loss allowances may be necessary. |
The following tables present the balance of the allowance for loan losses at March 31, 2015 and June 30, 2014 based upon the calculation methodology described above. The tables identify the valuation allowances attributable to specifically identified impairments on individually evaluated loans, including those acquired with deteriorated credit quality, as well as valuation allowances for impairments on loans evaluated collectively. The tables include the underlying balance of loans receivable applicable to each category as of those dates as well as the activity in the allowance for loan losses for the three and nine months ended March 31, 2015 and 2014. Unless otherwise noted, the balance of loans reported in the tables below excludes yield adjustments and the allowance for loan loss. |
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Allowance for Loan Losses and Loans Receivable | |
at March 31, 2015 | |
| Residential | | | Commercial | | | Construction | | | Commercial | | | Home Equity | | | Home Equity | | | Other | | | Total | |
Mortgage | Mortgage | Business | Loans | Lines of | Consumer |
| | | | Credit | |
| (In Thousands) | |
Balance of allowance for loan losses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Originated and purchased loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Loans individually evaluated | $ | 130 | | | $ | 381 | | | $ | - | | | $ | 43 | | | $ | 14 | | | $ | - | | | $ | - | | | $ | 568 | |
for impairment |
Loans collectively evaluated | | 2,018 | | | | 8,978 | | | | 27 | | | | 933 | | | | 203 | | | | 34 | | | | 19 | | | | 12,212 | |
for impairment |
Allowance for loan losses on | | 2,148 | | | | 9,359 | | | | 27 | | | | 976 | | | | 217 | | | | 34 | | | | 19 | | | | 12,780 | |
originated and purchased loans |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Loans acquired at fair value: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Loans acquired with deteriorated | | - | | | | - | | | | - | | | | 88 | | | | - | | | | - | | | | - | | | | 88 | |
credit quality |
Other acquired loans individually | | - | | | | 138 | | | | - | | | | 79 | | | | - | | | | - | | | | - | | | | 217 | |
evaluated for impairment |
Acquired loans collectively | | 13 | | | | 338 | | | | 4 | | | | 541 | | | | 64 | | | | 41 | | | | 1 | | | | 1,002 | |
evaluated for impairment |
Allowance for loan losses on | | 13 | | | | 476 | | | | 4 | | | | 708 | | | | 64 | | | | 41 | | | | 1 | | | | 1,307 | |
loans acquired at fair value |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total allowance for loan losses | $ | 2,161 | | | $ | 9,835 | | | $ | 31 | | | $ | 1,684 | | | $ | 281 | | | $ | 75 | | | $ | 20 | | | $ | 14,087 | |
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Allowance for Loan Losses and Loans Receivable | |
Period Ended March 31, 2015 | |
| Residential | | | Commercial | | | Construction | | | Commercial | | | Home Equity | | | Home Equity | | | Other | | | Total | |
Mortgage | Mortgage | Business | Loans | Lines of | Consumer |
| | | | Credit | |
| (In Thousands) | |
Changes in the allowance for loan | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
losses for the three months ended |
March 31, 2015: |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
At December 31, 2014: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Allocated | $ | 2,310 | | | $ | 8,392 | | | $ | 59 | | | $ | 1,407 | | | $ | 314 | | | $ | 80 | | | $ | 22 | | | $ | 12,584 | |
Unallocated | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | |
Total allowance for loan losses | | 2,310 | | | | 8,392 | | | | 59 | | | | 1,407 | | | | 314 | | | | 80 | | | | 22 | | | | 12,584 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total charge offs | | (183 | ) | | | - | | | | - | | | | (38 | ) | | | (38 | ) | | | - | | | | (1 | ) | | | (260 | ) |
Total recoveries | | - | | | | - | | | | - | | | | 2 | | | | - | | | | - | | | | - | | | | 2 | |
Total allocated provisions | | 34 | | | | 1,443 | | | | (28 | ) | | | 313 | | | | 5 | | | | (5 | ) | | | (1 | ) | | | 1,761 | |
Total unallocated provisions | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
At March 31, 2015: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Allocated | | 2,161 | | | | 9,835 | | | | 31 | | | | 1,684 | | | | 281 | | | | 75 | | | | 20 | | | | 14,087 | |
Unallocated | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | |
Total allowance for loan losses | $ | 2,161 | | | $ | 9,835 | | | $ | 31 | | | $ | 1,684 | | | $ | 281 | | | $ | 75 | | | $ | 20 | | | $ | 14,087 | |
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Allowance for Loan Losses and Loans Receivable | |
Period Ended March 31, 2015 (continued) | |
| Residential | | | Commercial | | | Construction | | | Commercial | | | Home Equity | | | Home Equity | | | Other | | | Total | |
Mortgage | Mortgage | Business | Loans | Lines of | Consumer |
| | | | Credit | |
| (In Thousands) | |
Changes in the allowance for loan | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
losses for the nine months ended |
March 31, 2015: |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
At June 30, 2014: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Allocated | $ | 2,729 | | | $ | 7,737 | | | $ | 67 | | | $ | 1,284 | | | $ | 460 | | | $ | 88 | | | $ | 22 | | | $ | 12,387 | |
Unallocated | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | |
Total allowance for loan losses | | 2,729 | | | | 7,737 | | | | 67 | | | | 1,284 | | | | 460 | | | | 88 | | | | 22 | | | | 12,387 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total charge offs | | (1,620 | ) | | | (612 | ) | | | - | | | | (489 | ) | | | (77 | ) | | | - | | | | (1 | ) | | | (2,799 | ) |
Total recoveries | | 141 | | | | - | | | | - | | | | 7 | | | | - | | | | - | | | | - | | | | 148 | |
Total allocated provisions | | 911 | | | | 2,710 | | | | (36 | ) | | | 882 | | | | (102 | ) | | | (13 | ) | | | (1 | ) | | | 4,351 | |
Total unallocated provisions | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
At March 31, 2015: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Allocated | | 2,161 | | | | 9,835 | | | | 31 | | | | 1,684 | | | | 281 | | | | 75 | | | | 20 | | | | 14,087 | |
Unallocated | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | |
Total allowance for loan losses | $ | 2,161 | | | $ | 9,835 | | | $ | 31 | | | $ | 1,684 | | | $ | 281 | | | $ | 75 | | | $ | 20 | | | $ | 14,087 | |
|
Allowance for Loan Losses and Loans Receivable | |
Period Ended March 31, 2014 | |
| Residential | | | Commercial | | | Construction | | | Commercial | | | Home Equity | | | Home Equity | | | Other | | | Total | |
Mortgage | Mortgage | Business | Loans | Lines of | Consumer |
| | | | Credit | |
| (In Thousands) | |
Changes in the allowance for loan | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
losses for the three months ended |
March 31, 2014: |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
At December 31, 2013: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Allocated | $ | 3,274 | | | $ | 6,574 | | | $ | 71 | | | $ | 1,042 | | | $ | 435 | | | $ | 74 | | | $ | 23 | | | $ | 11,493 | |
Unallocated | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | |
Total allowance for loan losses | | 3,274 | | | | 6,574 | | | | 71 | | | | 1,042 | | | | 435 | | | | 74 | | | | 23 | | | | 11,493 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total charge offs | | (296 | ) | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | (296 | ) |
Total recoveries | | 7 | | | | - | | | | - | | | | 2 | | | | 2 | | | | - | | | | - | | | | 11 | |
Total allocated provisions | | 8 | | | | 681 | | | | (11 | ) | | | 176 | | | | 27 | | | | 1 | | | | (2 | ) | | | 880 | |
Total unallocated provisions | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
At March 31, 2014: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Allocated | | 2,993 | | | | 7,255 | | | | 60 | | | | 1,220 | | | | 464 | | | | 75 | | | | 21 | | | | 12,088 | |
Unallocated | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | |
Total allowance for loan losses | $ | 2,993 | | | $ | 7,255 | | | $ | 60 | | | $ | 1,220 | | | $ | 464 | | | $ | 75 | | | $ | 21 | | | $ | 12,088 | |
|
Allowance for Loan Losses and Loans Receivable | |
Period Ended March 31, 2014 (continued) | |
| Residential | | | Commercial | | | Construction | | | Commercial | | | Home Equity | | | Home Equity | | | Other | | | Total | |
Mortgage | Mortgage | Business | Loans | Lines of | Consumer |
| | | | Credit | |
| (In Thousands) | |
Changes in the allowance for loan | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
losses for the nine months ended |
March 31, 2014: |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
At June 30, 2013: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Allocated | $ | 3,660 | | | $ | 5,359 | | | $ | 81 | | | $ | 1,218 | | | $ | 490 | | | $ | 76 | | | $ | 12 | | | $ | 10,896 | |
Unallocated | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | |
Total allowance for loan losses | | 3,660 | | | | 5,359 | | | | 81 | | | | 1,218 | | | | 490 | | | | 76 | | | | 12 | | | | 10,896 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total charge offs | | (804 | ) | | | (34 | ) | | | - | | | | (1,080 | ) | | | (34 | ) | | | - | | | | (29 | ) | | | (1,981 | ) |
Total recoveries | | 32 | | | | 525 | | | | - | | | | 7 | | | | 2 | | | | - | | | | - | | | | 566 | |
Total allocated provisions | | 105 | | | | 1,405 | | | | (21 | ) | | | 1,075 | | | | 6 | | | | (1 | ) | | | 38 | | | | 2,607 | |
Total unallocated provisions | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
At March 31, 2014: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Allocated | | 2,993 | | | | 7,255 | | | | 60 | | | | 1,220 | | | | 464 | | | | 75 | | | | 21 | | | | 12,088 | |
Unallocated | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | |
Total allowance for loan losses | $ | 2,993 | | | $ | 7,255 | | | $ | 60 | | | $ | 1,220 | | | $ | 464 | | | $ | 75 | | | $ | 21 | | | $ | 12,088 | |
|
Allowance for Loan Losses and Loans Receivable | |
at March 31, 2015 | |
| Residential | | | Commercial | | | Construction | | | Commercial | | | Home Equity | | | Home Equity | | | Other | | | Total | |
Mortgage | Mortgage | Business | Loans | Lines of | Consumer |
| | | | Credit | |
| (In Thousands) | |
Balance of loans receivable: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Originated and purchased loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Loans individually evaluated | $ | 11,021 | | | $ | 4,089 | | | $ | - | | | $ | 1,881 | | | $ | 1,038 | | | $ | 17 | | | $ | - | | | $ | 18,046 | |
for impairment |
Loans collectively evaluated | | 482,648 | | | | 1,136,177 | | | | 2,907 | | | | 66,905 | | | | 63,420 | | | | 10,860 | | | | 4,120 | | | | 1,767,037 | |
for impairment |
Total originated and purchased | | 493,669 | | | | 1,140,266 | | | | 2,907 | | | | 68,786 | | | | 64,458 | | | | 10,877 | | | | 4,120 | | | | 1,785,083 | |
loans |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Loans acquired at fair value: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Loans acquired with deteriorated | | 727 | | | | 322 | | | | - | | | | 7,973 | | | | - | | | | - | | | | - | | | | 9,022 | |
credit quality |
Other acquired loans individually | | 330 | | | | 4,239 | | | | 2,329 | | | | 1,924 | | | | 525 | | | | 948 | | | | - | | | | 10,295 | |
evaluated for impairment |
Acquired loans collectively | | 63,062 | | | | 89,034 | | | | 349 | | | | 19,103 | | | | 5,994 | | | | 10,403 | | | | 91 | | | | 188,036 | |
evaluated for impairment |
Total loans acquired at | | 64,119 | | | | 93,595 | | | | 2,678 | | | | 29,000 | | | | 6,519 | | | | 11,351 | | | | 91 | | | | 207,353 | |
fair value |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total loans | $ | 557,788 | | | $ | 1,233,861 | | | $ | 5,585 | | | $ | 97,786 | | | $ | 70,977 | | | $ | 22,228 | | | $ | 4,211 | | | | 1,992,436 | |
Unamortized yield | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (65 | ) |
adjustments |
Loans receivable, including | | | | | | | | | | | | | | | | | | | | | | | | | | | | | $ | 1,992,371 | |
unamortized yield adjustments |
|
Allowance for Loan Losses and Loans Receivable | |
at June 30, 2014 | |
| Residential | | | Commercial | | | Construction | | | Commercial | | | Home Equity | | | Home Equity | | | Other | | | Total | |
Mortgage | Mortgage | Business | Loans | Lines of | Consumer |
| | | | Credit | |
| (In Thousands) | |
Balance of allowance for loan losses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Originated and purchased loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Loans individually evaluated | $ | 528 | | | $ | 404 | | | $ | - | | | $ | - | | | $ | 75 | | | $ | - | | | $ | - | | | $ | 1,007 | |
for impairment |
Loans collectively evaluated | | 2,172 | | | | 6,760 | | | | 29 | | | | 352 | | | | 272 | | | | 35 | | | | 21 | | | | 9,641 | |
for impairment |
Allowance for loan losses on | | 2,700 | | | | 7,164 | | | | 29 | | | | 352 | | | | 347 | | | | 35 | | | | 21 | | | | 10,648 | |
originated and purchased loans |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Loans acquired at fair value: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Loans acquired with deteriorated | | - | | | | - | | | | - | | | | 98 | | | | - | | | | - | | | | - | | | | 98 | |
credit quality |
Other acquired loans individually | | - | | | | 165 | | | | - | | | | 346 | | | | 57 | | | | - | | | | - | | | | 568 | |
evaluated for impairment |
Acquired loans collectively | | 29 | | | | 408 | | | | 38 | | | | 488 | | | | 56 | | | | 53 | | | | 1 | | | | 1,073 | |
evaluated for impairment |
Allowance for loan losses on | | 29 | | | | 573 | | | | 38 | | | | 932 | | | | 113 | | | | 53 | | | | 1 | | | | 1,739 | |
loans acquired at fair value |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total allowance for loan losses | $ | 2,729 | | | $ | 7,737 | | | $ | 67 | | | $ | 1,284 | | | $ | 460 | | | $ | 88 | | | $ | 22 | | | $ | 12,387 | |
|
Allowance for Loan Losses and Loans Receivable | |
at June 30, 2014 (continued) | |
| Residential | | | Commercial | | | Construction | | | Commercial | | | Home Equity | | | Home Equity | | | Other | | | Total | |
Mortgage | Mortgage | Business | Loans | Lines of | Consumer |
| | | | Credit | |
| (In Thousands) | |
Balance of loans receivable: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Originated and purchased loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Loans individually evaluated | $ | 11,923 | | | $ | 5,403 | | | $ | - | | | $ | 1,263 | | | $ | 1,010 | | | $ | 17 | | | $ | - | | | $ | 19,616 | |
for impairment |
Loans collectively evaluated | | 494,522 | | | | 873,340 | | | | 3,619 | | | | 31,326 | | | | 66,163 | | | | 10,529 | | | | 4,248 | | | | 1,483,747 | |
for impairment |
Total originated and purchased | | 506,445 | | | | 878,743 | | | | 3,619 | | | | 32,589 | | | | 67,173 | | | | 10,546 | | | | 4,248 | | | | 1,503,363 | |
loans |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Loans acquired at fair value: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Loans acquired with deteriorated | | 742 | | | | 1,071 | | | | - | | | | 8,325 | | | | - | | | | - | | | | - | | | | 10,138 | |
credit quality |
Other acquired loans individually | | - | | | | 1,895 | | | | 1,448 | | | | 2,456 | | | | 692 | | | | 964 | | | | - | | | | 7,455 | |
evaluated for impairment |
Acquired loans collectively | | 73,425 | | | | 102,046 | | | | 2,214 | | | | 23,891 | | | | 7,746 | | | | 12,500 | | | | 90 | | | | 221,912 | |
evaluated for impairment |
Total loans acquired at | | 74,167 | | | | 105,012 | | | | 3,662 | | | | 34,672 | | | | 8,438 | | | | 13,464 | | | | 90 | | | | 239,505 | |
fair value |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total loans | $ | 580,612 | | | $ | 983,755 | | | $ | 7,281 | | | $ | 67,261 | | | $ | 75,611 | | | $ | 24,010 | | | $ | 4,338 | | | | 1,742,868 | |
Unamortized yield | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (1,397 | ) |
adjustments |
Loans receivable, including | | | | | | | | | | | | | | | | | | | | | | | | | | | | | $ | 1,741,471 | |
unamortized yield adjustments |
|
The following tables present key indicators of credit quality regarding the Company’s loan portfolio based upon loan classification and contractual payment status at March 31, 2015 and June 30, 2014. |
|
Credit-Rating Classification of Loans Receivable | |
at March 31, 2015 | |
| Residential | | | Commercial | | | Construction | | | Commercial | | | Home Equity | | | Home Equity | | | Other | | | Total | |
Mortgage | Mortgage | Business | Loans | Lines of | Consumer |
| | | | Credit | |
| (In Thousands) | |
Originated and purchased loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Non-classified | $ | 481,483 | | | $ | 1,134,882 | | | $ | 2,907 | | | $ | 66,765 | | | $ | 63,233 | | | $ | 10,680 | | | $ | 4,117 | | | $ | 1,764,067 | |
Classified: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Special Mention | | 833 | | | | 259 | | | | - | | | | 59 | | | | 57 | | | | 180 | | | | - | | | | 1,388 | |
Substandard | | 11,353 | | | | 4,854 | | | | - | | | | 1,962 | | | | 1,168 | | | | 17 | | | | 3 | | | | 19,357 | |
Doubtful | | - | | | | 271 | | | | - | | | | - | | | | - | | | | - | | | | - | | | | 271 | |
Loss | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | |
Total classified loans | | 12,186 | | | | 5,384 | | | | - | | | | 2,021 | | | | 1,225 | | | | 197 | | | | 3 | | | | 21,016 | |
Total originated and | | 493,669 | | | | 1,140,266 | | | | 2,907 | | | | 68,786 | | | | 64,458 | | | | 10,877 | | | | 4,120 | | | | 1,785,083 | |
purchased loans |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Loans acquired at fair value: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Non-classified | | 62,071 | | | | 84,202 | | | | - | | | | 14,448 | | | | 5,817 | | | | 9,915 | | | | 63 | | | | 176,516 | |
Classified: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Special Mention | | 374 | | | | 3,731 | | | | 349 | | | | 7,225 | | | | 76 | | | | 243 | | | | 25 | | | | 12,023 | |
Substandard | | 1,674 | | | | 5,662 | | | | 2,329 | | | | 7,321 | | | | 626 | | | | 1,193 | | | | 3 | | | | 18,808 | |
Doubtful | | - | | | | - | | | | - | | | | 6 | | | | - | | | | - | | | | - | | | | 6 | |
Loss | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | |
Total classified loans | | 2,048 | | | | 9,393 | | | | 2,678 | | | | 14,552 | | | | 702 | | | | 1,436 | | | | 28 | | | | 30,837 | |
Total loans acquired at | | 64,119 | | | | 93,595 | | | | 2,678 | | | | 29,000 | | | | 6,519 | | | | 11,351 | | | | 91 | | | | 207,353 | |
fair value |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total loans | $ | 557,788 | | | $ | 1,233,861 | | | $ | 5,585 | | | $ | 97,786 | | | $ | 70,977 | | | $ | 22,228 | | | $ | 4,211 | | | $ | 1,992,436 | |
|
Credit-Rating Classification of Loans Receivable | |
at June 30, 2014 | |
| Residential | | | Commercial | | | Construction | | | Commercial | | | Home Equity | | | Home Equity | | | Other | | | Total | |
Mortgage | Mortgage | Business | Loans | Lines of | Consumer |
| | | | Credit | |
| (In Thousands) | |
Originated and purchased loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Non-classified | $ | 492,531 | | | $ | 872,063 | | | $ | 3,461 | | | $ | 31,301 | | | $ | 66,016 | | | $ | 10,352 | | | $ | 4,247 | | | $ | 1,479,971 | |
Classified: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Special Mention | | 1,626 | | | | 357 | | | | 158 | | | | 25 | | | | 146 | | | | 84 | | | | 1 | | | | 2,397 | |
Substandard | | 12,288 | | | | 6,039 | | | | - | | | | 1,263 | | | | 1,011 | | | | 110 | | | | - | | | | 20,711 | |
Doubtful | | - | | | | 284 | | | | - | | | | - | | | | - | | | | - | | | | - | | | | 284 | |
Loss | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | |
Total classified loans | | 13,914 | | | | 6,680 | | | | 158 | | | | 1,288 | | | | 1,157 | | | | 194 | | | | 1 | | | | 23,392 | |
Total originated and | | 506,445 | | | | 878,743 | | | | 3,619 | | | | 32,589 | | | | 67,173 | | | | 10,546 | | | | 4,248 | | | | 1,503,363 | |
purchased loans |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Loans acquired at fair value: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Non-classified | | 73,425 | | | | 96,758 | | | | - | | | | 18,946 | | | | 7,582 | | | | 12,003 | | | | 71 | | | | 208,785 | |
Classified: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Special Mention | | - | | | | 4,600 | | | | 353 | | | | 4,602 | | | | 45 | | | | 245 | | | | 16 | | | | 9,861 | |
Substandard | | 742 | | | | 3,654 | | | | 3,309 | | | | 11,118 | | | | 811 | | | | 1,216 | | | | 3 | | | | 20,853 | |
Doubtful | | - | | | | - | | | | - | | | | 6 | | | | - | | | | - | | | | - | | | | 6 | |
Loss | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | |
Total classified loans | | 742 | | | | 8,254 | | | | 3,662 | | | | 15,726 | | | | 856 | | | | 1,461 | | | | 19 | | | | 30,720 | |
Total loans acquired at | | 74,167 | | | | 105,012 | | | | 3,662 | | | | 34,672 | | | | 8,438 | | | | 13,464 | | | | 90 | | | | 239,505 | |
fair value |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total loans | $ | 580,612 | | | $ | 983,755 | | | $ | 7,281 | | | $ | 67,261 | | | $ | 75,611 | | | $ | 24,010 | | | $ | 4,338 | | | $ | 1,742,868 | |
|
|
|
Contractual Payment Status of Loans Receivable | |
at March 31, 2015 | |
| Residential | | | Commercial | | | Construction | | | Commercial | | | Home Equity | | | Home Equity | | | Other | | | Total | |
Mortgage | Mortgage | Business | Loans | Lines of | Consumer |
| | | | Credit | |
| (In Thousands) | |
Originated and purchased loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Current | $ | 486,566 | | | $ | 1,138,013 | | | $ | 2,907 | | | $ | 67,222 | | | $ | 63,872 | | | $ | 10,802 | | | $ | 4,117 | | | $ | 1,773,499 | |
Past due: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
30-59 days | | 1,545 | | | | 222 | | | | - | | | | 23 | | | | 87 | | | | 58 | | | | - | | | | 1,935 | |
60-89 days | | 308 | | | | - | | | | - | | | | 435 | | | | 12 | | | | - | | | | 2 | | | | 757 | |
90+ days | | 5,250 | | | | 2,031 | | | | - | | | | 1,106 | | | | 487 | | | | 17 | | | | 1 | | | | 8,892 | |
Total past due | | 7,103 | | | | 2,253 | | | | - | | | | 1,564 | | | | 586 | | | | 75 | | | | 3 | | | | 11,584 | |
Total originated and | | 493,669 | | | | 1,140,266 | | | | 2,907 | | | | 68,786 | | | | 64,458 | | | | 10,877 | | | | 4,120 | | | | 1,785,083 | |
purchased loans |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Loans acquired at fair value: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Current | | 63,179 | | | | 90,988 | | | | 1,626 | | | | 25,864 | | | | 6,306 | | | | 10,357 | | | | 90 | | | | 198,410 | |
Past due: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
30-59 days | | - | | | | 717 | | | | - | | | | 17 | | | | 19 | | | | 27 | | | | 1 | | | | 781 | |
60-89 days | | - | | | | 525 | | | | 276 | | | | 25 | | | | 106 | | | | 19 | | | | - | | | | 951 | |
90+ days | | 940 | | | | 1,365 | | | | 776 | | | | 3,094 | | | | 88 | | | | 948 | | | | - | | | | 7,211 | |
Total past due | | 940 | | | | 2,607 | | | | 1,052 | | | | 3,136 | | | | 213 | | | | 994 | | | | 1 | | | | 8,943 | |
Total loans acquired at | | 64,119 | | | | 93,595 | | | | 2,678 | | | | 29,000 | | | | 6,519 | | | | 11,351 | | | | 91 | | | | 207,353 | |
fair value |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total loans | $ | 557,788 | | | $ | 1,233,861 | | | $ | 5,585 | | | $ | 97,786 | | | $ | 70,977 | | | $ | 22,228 | | | $ | 4,211 | | | $ | 1,992,436 | |
|
Contractual Payment Status of Loans Receivable | |
at June 30, 2014 | |
| Residential | | | Commercial | | | Construction | | | Commercial | | | Home Equity | | | Home Equity | | | Other | | | Total | |
Mortgage | Mortgage | Business | Loans | Lines of | Consumer |
| | | | Credit | |
| (In Thousands) | |
Originated and purchased loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Current | $ | 495,330 | | | $ | 875,887 | | | $ | 3,619 | | | $ | 31,081 | | | $ | 66,548 | | | $ | 10,499 | | | $ | 4,034 | | | $ | 1,486,998 | |
Past due: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
30-59 days | | 1,385 | | | | - | | | | - | | | | 245 | | | | 183 | | | | - | | | | 60 | | | | 1,873 | |
60-89 days | | 1,163 | | | | - | | | | - | | | | - | | | | 3 | | | | 30 | | | | 28 | | | | 1,224 | |
90+ days | | 8,567 | | | | 2,856 | | | | - | | | | 1,263 | | | | 439 | | | | 17 | | | | 126 | | | | 13,268 | |
Total past due | | 11,115 | | | | 2,856 | | | | - | | | | 1,508 | | | | 625 | | | | 47 | | | | 214 | | | | 16,365 | |
Total originated and | | 506,445 | | | | 878,743 | | | | 3,619 | | | | 32,589 | | | | 67,173 | | | | 10,546 | | | | 4,248 | | | | 1,503,363 | |
purchased loans |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Loans acquired at fair value: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Current | | 72,736 | | | | 102,881 | | | | 2,810 | | | | 32,346 | | | | 7,731 | | | | 12,390 | | | | 88 | | | | 230,982 | |
Past due: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
30-59 days | | 689 | | | | 561 | | | | - | | | | - | | | | 152 | | | | - | | | | - | | | | 1,402 | |
60-89 days | | - | | | | 427 | | | | - | | | | - | | | | 95 | | | | 110 | | | | 1 | | | | 633 | |
90+ days | | 742 | | | | 1,143 | | | | 852 | | | | 2,326 | | | | 460 | | | | 964 | | | | 1 | | | | 6,488 | |
Total past due | | 1,431 | | | | 2,131 | | | | 852 | | | | 2,326 | | | | 707 | | | | 1,074 | | | | 2 | | | | 8,523 | |
Total loans acquired at | | 74,167 | | | | 105,012 | | | | 3,662 | | | | 34,672 | | | | 8,438 | | | | 13,464 | | | | 90 | | | | 239,505 | |
fair value |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total loans | $ | 580,612 | | | $ | 983,755 | | | $ | 7,281 | | | $ | 67,261 | | | $ | 75,611 | | | $ | 24,010 | | | $ | 4,338 | | | $ | 1,742,868 | |
|
|
The following tables present information relating to the Company’s nonperforming and impaired loans at March 31, 2015 and June 30, 2014. Loans reported as “90+ days past due accruing” in the table immediately below are also reported in the preceding contractual payment status table under the heading “90+ days past due”. |
|
Performance Status of Loans Receivable | |
at March 31, 2015 | |
| Residential | | | Commercial | | | Construction | | | Commercial | | | Home Equity | | | Home Equity | | | Other | | | Total | |
Mortgage | Mortgage | Business | Loans | Lines of | Consumer |
| | | | Credit | |
| (In Thousands) | |
Originated and purchased loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Performing | $ | 485,116 | | | $ | 1,136,177 | | | $ | 2,907 | | | $ | 66,928 | | | $ | 63,959 | | | $ | 10,860 | | | $ | 4,117 | | | $ | 1,770,064 | |
Nonperforming: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
90+ days past due accruing | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | |
Nonaccrual | | 8,553 | | | | 4,089 | | | | - | | | | 1,858 | | | | 499 | | | | 17 | | | | 3 | | | | 15,019 | |
Total nonperforming | | 8,553 | | | | 4,089 | | | | - | | | | 1,858 | | | | 499 | | | | 17 | | | | 3 | | | | 15,019 | |
Total originated and | | 493,669 | | | | 1,140,266 | | | | 2,907 | | | | 68,786 | | | | 64,458 | | | | 10,877 | | | | 4,120 | | | | 1,785,083 | |
purchased loans |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Loans acquired at fair value: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Performing | | 63,061 | | | | 89,755 | | | | 349 | | | | 25,881 | | | | 6,178 | | | | 10,403 | | | | 91 | | | | 195,718 | |
Nonperforming: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
90+ days past due accruing | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | |
Nonaccrual | | 1,058 | | | | 3,840 | | | | 2,329 | | | | 3,119 | | | | 341 | | | | 948 | | | | - | | | | 11,635 | |
Total nonperforming | | 1,058 | | | | 3,840 | | | | 2,329 | | | | 3,119 | | | | 341 | | | | 948 | | | | - | | | | 11,635 | |
Total loans acquired at | | 64,119 | | | | 93,595 | | | | 2,678 | | | | 29,000 | | | | 6,519 | | | | 11,351 | | | | 91 | | | | 207,353 | |
fair value |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total loans | $ | 557,788 | | | $ | 1,233,861 | | | $ | 5,585 | | | $ | 97,786 | | | $ | 70,977 | | | $ | 22,228 | | | $ | 4,211 | | | $ | 1,992,436 | |
|
Performance Status of Loans Receivable | |
at June 30, 2014 | |
| Residential | | | Commercial | | | Construction | | | Commercial | | | Home Equity | | | Home Equity | | | Other | | | Total | |
Mortgage | Mortgage | Business | Loans | Lines of | Consumer |
| | | | Credit | |
| (In Thousands) | |
Originated and purchased loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Performing | $ | 497,243 | | | $ | 873,421 | | | $ | 3,619 | | | $ | 31,326 | | | $ | 66,734 | | | $ | 10,529 | | | $ | 4,122 | | | $ | 1,486,994 | |
Nonperforming: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
90+ days past due accruing | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | 125 | | | | 125 | |
Nonaccrual | | 9,202 | | | | 5,322 | | | | - | | | | 1,263 | | | | 439 | | | | 17 | | | | 1 | | | | 16,244 | |
Total nonperforming | | 9,202 | | | | 5,322 | | | | - | | | | 1,263 | | | | 439 | | | | 17 | | | | 126 | | | | 16,369 | |
Total originated and | | 506,445 | | | | 878,743 | | | | 3,619 | | | | 32,589 | | | | 67,173 | | | | 10,546 | | | | 4,248 | | | | 1,503,363 | |
purchased loans |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Loans acquired at fair value: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Performing | | 73,425 | | | | 103,399 | | | | 2,214 | | | | 31,016 | | | | 7,928 | | | | 12,500 | | | | 89 | | | | 230,571 | |
Nonperforming: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
90+ days past due accruing | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | |
Nonaccrual | | 742 | | | | 1,613 | | | | 1,448 | | | | 3,656 | | | | 510 | | | | 964 | | | | 1 | | | | 8,934 | |
Total nonperforming | | 742 | | | | 1,613 | | | | 1,448 | | | | 3,656 | | | | 510 | | | | 964 | | | | 1 | | | | 8,934 | |
Total loans acquired at | | 74,167 | | | | 105,012 | | | | 3,662 | | | | 34,672 | | | | 8,438 | | | | 13,464 | | | | 90 | | | | 239,505 | |
fair value |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total loans | $ | 580,612 | | | $ | 983,755 | | | $ | 7,281 | | | $ | 67,261 | | | $ | 75,611 | | | $ | 24,010 | | | $ | 4,338 | | | $ | 1,742,868 | |
|
|
Impairment Status of Loans Receivable | |
at March 31, 2015 | |
| Residential | | | Commercial | | | Construction | | | Commercial | | | Home Equity | | | Home Equity | | | Other | | | Total | |
Mortgage | Mortgage | Business | Loans | Lines of | Consumer |
| | | | Credit | |
| (In Thousands) | |
Carrying value of impaired loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Originated and purchased loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Non-impaired loans | $ | 482,648 | | | $ | 1,136,177 | | | $ | 2,907 | | | $ | 66,905 | | | $ | 63,420 | | | $ | 10,860 | | | $ | 4,120 | | | $ | 1,767,037 | |
Impaired loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Impaired loans with no allowance | | 8,788 | | | | 3,743 | | | | - | | | | 1,423 | | | | 950 | | | | 17 | | | | - | | | | 14,921 | |
for impairment |
Impaired loans with allowance | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
for impairment: |
Recorded investment | | 2,233 | | | | 346 | | | | - | | | | 458 | | | | 88 | | | | - | | | | - | | | | 3,125 | |
Allowance for impairment | | (130 | ) | | | (381 | ) | | | - | | | | (43 | ) | | | (14 | ) | | | - | | | | - | | | | (568 | ) |
Balance of impaired loans net | | 2,103 | | | | (35 | ) | | | - | | | | 415 | | | | 74 | | | | - | | | | - | | | | 2,557 | |
of allowance for impairment |
Total impaired loans, excluding | | 11,021 | | | | 4,089 | | | | - | | | | 1,881 | | | | 1,038 | | | | 17 | | | | - | | | | 18,046 | |
allowance for impairment: |
Total originated and | | 493,669 | | | | 1,140,266 | | | | 2,907 | | | | 68,786 | | | | 64,458 | | | | 10,877 | | | | 4,120 | | | | 1,785,083 | |
purchased loans |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Loans acquired at fair value: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Non-impaired loans | | 63,062 | | | | 89,034 | | | | 349 | | | | 19,103 | | | | 5,994 | | | | 10,403 | | | | 91 | | | | 188,036 | |
Impaired loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Impaired loans with no allowance | | 1,057 | | | | 3,713 | | | | 2,329 | | | | 9,534 | | | | 525 | | | | 948 | | | | - | | | | 18,106 | |
for impairment |
Impaired loans with allowance | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
for impairment: |
Recorded investment | | - | | | | 848 | | | | - | | | | 363 | | | | - | | | | - | | | | - | | | | 1,211 | |
Allowance for impairment | | - | | | | (138 | ) | | | - | | | | (167 | ) | | | - | | | | - | | | | - | | | | (305 | ) |
Balance of impaired loans net | | - | | | | 710 | | | | - | | | | 196 | | | | - | | | | - | | | | - | | | | 906 | |
of allowance for impairment |
Total impaired loans, excluding | | 1,057 | | | | 4,561 | | | | 2,329 | | | | 9,897 | | | | 525 | | | | 948 | | | | - | | | | 19,317 | |
allowance for impairment: |
Total loans acquired at | | 64,119 | | | | 93,595 | | | | 2,678 | | | | 29,000 | | | | 6,519 | | | | 11,351 | | | | 91 | | | | 207,353 | |
fair value |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total loans | $ | 557,788 | | | $ | 1,233,861 | | | $ | 5,585 | | | $ | 97,786 | | | $ | 70,977 | | | $ | 22,228 | | | $ | 4,211 | | | $ | 1,992,436 | |
|
|
Impairment Status of Loans Receivable | |
at March 31, 2015 (continued) | |
| Residential | | | Commercial | | | Construction | | | Commercial | | | Home Equity | | | Home Equity | | | Other | | | Total | |
Mortgage | Mortgage | Business | Loans | Lines of | Consumer |
| | | | Credit | |
| (In Thousands) | |
Unpaid principal balance | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
of impaired loans: |
Originated and purchased loans | $ | 17,734 | | | $ | 4,711 | | | $ | - | | | $ | 2,040 | | | $ | 1,060 | | | $ | 17 | | | $ | - | | | $ | 25,562 | |
Loans acquired at fair value | | 1,143 | | | | 4,735 | | | | 2,479 | | | | 11,627 | | | | 544 | | | | 975 | | | | - | | | | 21,503 | |
Total impaired loans | $ | 18,877 | | | $ | 9,446 | | | $ | 2,479 | | | $ | 13,667 | | | $ | 1,604 | | | $ | 992 | | | $ | - | | | $ | 47,065 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
For the three months ended | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
March 31, 2015: |
Average balance of impaired loans | $ | 12,462 | | | $ | 7,626 | | | $ | 2,421 | | | $ | 11,794 | | | $ | 1,657 | | | $ | 972 | | | $ | - | | | $ | 36,932 | |
Interest earned on impaired loans | $ | 33 | | | $ | 28 | | | $ | - | | | $ | 233 | | | $ | 10 | | | $ | - | | | $ | - | | | $ | 304 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
For the nine months ended | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
March 31, 2015: |
Average balance of impaired loans | $ | 12,867 | | | $ | 7,837 | | | $ | 1,818 | | | $ | 11,795 | | | $ | 1,645 | | | $ | 1,015 | | | $ | - | | | $ | 36,977 | |
Interest earned on impaired loans | $ | 105 | | | $ | 49 | | | $ | 5 | | | $ | 639 | | | $ | 35 | | | $ | - | | | $ | - | | | $ | 833 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
For the three months ended | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
March 31, 2014: |
Average balance of impaired loans | $ | 13,310 | | | $ | 8,412 | | | $ | 2,401 | | | $ | 11,677 | | | $ | 1,428 | | | $ | 676 | | | $ | - | | | $ | 37,904 | |
Interest earned on impaired loans | $ | 26 | | | $ | 49 | | | $ | - | | | $ | 176 | | | $ | 14 | | | $ | - | | | $ | - | | | $ | 265 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
For the nine months ended | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
March 31, 2014: |
Average balance of impaired loans | $ | 13,883 | | | $ | 10,040 | | | $ | 2,552 | | | $ | 10,556 | | | $ | 1,464 | | | $ | 635 | | | $ | - | | | $ | 39,130 | |
Interest earned on impaired loans | $ | 100 | | | $ | 135 | | | $ | - | | | $ | 546 | | | $ | 54 | | | $ | - | | | $ | - | | | $ | 835 | |
|
|
Impairment Status of Loans Receivable | |
at June 30, 2014 | |
| Residential | | | Commercial | | | Construction | | | Commercial | | | Home Equity | | | Home Equity | | | Other | | | Total | |
Mortgage | Mortgage | Business | Loans | Lines of | Consumer |
| | | | Credit | |
| (In Thousands) | |
Carrying value of impaired loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Originated and purchased loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Non-impaired loans | $ | 494,522 | | | $ | 873,340 | | | $ | 3,619 | | | $ | 31,326 | | | $ | 66,163 | | | $ | 10,529 | | | $ | 4,248 | | | $ | 1,483,747 | |
Impaired loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Impaired loans with no allowance | | 9,800 | | | | 5,037 | | | | - | | | | 1,263 | | | | 911 | | | | 17 | | | | - | | | | 17,028 | |
for impairment |
Impaired loans with allowance | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
for impairment: |
Recorded investment | | 2,123 | | | | 366 | | | | - | | | | - | | | | 99 | | | | - | | | | - | | | | 2,588 | |
Allowance for impairment | | (528 | ) | | | (404 | ) | | | - | | | | - | | | | (75 | ) | | | - | | | | - | | | | (1,007 | ) |
Balance of impaired loans net | | 1,595 | | | | (38 | ) | | | - | | | | - | | | | 24 | | | | - | | | | - | | | | 1,581 | |
of allowance for impairment |
Total impaired loans, excluding | | 11,923 | | | | 5,403 | | | | - | | | | 1,263 | | | | 1,010 | | | | 17 | | | | - | | | | 19,616 | |
allowance for impairment: |
Total originated and | | 506,445 | | | | 878,743 | | | | 3,619 | | | | 32,589 | | | | 67,173 | | | | 10,546 | | | | 4,248 | | | | 1,503,363 | |
purchased loans |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Loans acquired at fair value: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Non-impaired loans | | 73,425 | | | | 102,046 | | | | 2,214 | | | | 23,891 | | | | 7,746 | | | | 12,500 | | | | 90 | | | | 221,912 | |
Impaired loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Impaired loans with no allowance | | 742 | | | | 1,690 | | | | 1,448 | | | | 10,141 | | | | 617 | | | | 964 | | | | - | | | | 15,602 | |
for impairment |
Impaired loans with allowance | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
for impairment: |
Recorded investment | | - | | | | 1,276 | | | | - | | | | 640 | | | | 75 | | | | - | | | | - | | | | 1,991 | |
Allowance for impairment | | - | | | | (165 | ) | | | - | | | | (444 | ) | | | (57 | ) | | | - | | | | - | | | | (666 | ) |
Balance of impaired loans net | | - | | | | 1,111 | | | | - | | | | 196 | | | | 18 | | | | - | | | | - | | | | 1,325 | |
of allowance for impairment |
Total impaired loans, excluding | | 742 | | | | 2,966 | | | | 1,448 | | | | 10,781 | | | | 692 | | | | 964 | | | | - | | | | 17,593 | |
allowance for impairment: |
Total loans acquired at | | 74,167 | | | | 105,012 | | | | 3,662 | | | | 34,672 | | | | 8,438 | | | | 13,464 | | | | 90 | | | | 239,505 | |
fair value |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total loans | $ | 580,612 | | | $ | 983,755 | | | $ | 7,281 | | | $ | 67,261 | | | $ | 75,611 | | | $ | 24,010 | | | $ | 4,338 | | | $ | 1,742,868 | |
Impairment Status of Loans Receivable | |
at June 30, 2014 (continued) | |
| Residential | | | Commercial | | | Construction | | | Commercial | | | Home Equity | | | Home Equity | | | Other | | | Total | |
Mortgage | Mortgage | Business | Loans | Lines of | Consumer |
| | | | Credit | |
| (In Thousands) | |
Unpaid principal balance | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
of impaired loans: |
Originated and purchased loans | $ | 17,655 | | | $ | 5,919 | | | $ | - | | | $ | 1,407 | | | $ | 1,027 | | | $ | 17 | | | $ | - | | | $ | 26,025 | |
Loans acquired at fair value | | 742 | | | | 3,264 | | | | 1,547 | | | | 12,495 | | | | 726 | | | | 975 | | | | - | | | | 19,749 | |
Total impaired loans | $ | 18,397 | | | $ | 9,183 | | | $ | 1,547 | | | $ | 13,902 | | | $ | 1,753 | | | $ | 992 | | | $ | - | | | $ | 45,774 | |
|
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Troubled Debt Restructurings (“TDRs”). A modification to the terms of a loan is generally considered a TDR if the Bank grants a concession to the borrower that it would not otherwise consider for economic or legal reasons related to the debtor’s financial difficulties. In granting the concession, the Bank’s general objective is to make the best of a difficult situation by obtaining more cash or other value from the borrower or otherwise increase the probability of repayment. |
A TDR may include, but is not necessarily limited to, the modification of loan terms such as a temporary or permanent reduction of the loan’s stated interest rate, extension of the maturity date and/or reduction or deferral of amounts owed under the terms of the loan agreement. In measuring the impairment associated with restructured loans that qualify as TDRs, the Company compares the cash flows under the loan’s existing terms with those that are expected to be received in accordance with its modified terms. The difference between the comparative cash flows is discounted at the loan’s effective interest rate prior to modification to measure the associated impairment. The impairment is charged off directly against the allowance for loan loss at the time of restructuring resulting in a reduction in carrying value of the modified loan that is accreted into interest income as a yield adjustment over the remaining term of the modified cash flows. |
All restructured loans that qualify as TDRs are placed on nonaccrual status for a period of no less than six months after restructuring, irrespective of the borrower’s adherence to a TDR’s modified repayment terms during which time TDRs continue to be adversely classified and reported as impaired. TDRs may be returned to accrual status if (1) the borrower has paid timely P&I payments in accordance with the terms of the restructured loan agreement for no less than six consecutive months after restructuring, and (2) the Company expects to receive all P&I payments owed substantially in accordance with the terms of the restructured loan agreement at which time the loan may also be returned to a non-adverse classification while retaining its impaired status. |
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The following table presents information regarding the restructuring of the Company’s troubled debts during the three and nine months ended March 31, 2015 and 2014 and any defaults during those periods of TDRs that were restructured within 12 months of the date of default. |
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Troubled Debt Restructurings of Loans Receivable | |
at March 31, 2015 | |
| Residential | | | Commercial | | | Construction | | | Commercial | | | Home Equity | | | Home Equity | | | Other | | | Total | |
Mortgage | Mortgage | Business | Loans | Lines of | Consumer |
| | | | Credit | |
| (In Thousands) | |
Troubled debt restructuring activity for the | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
three months ended March 31, 2015 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Originated and purchased loans | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Number of loans | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | |
Pre-modification outstanding | $ | - | | | $ | - | | | $ | - | | | $ | - | | | $ | - | | | $ | - | | | $ | - | | | $ | - | |
recorded investment |
Post-modification outstanding | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | $ | - | |
recorded investment |
Charge offs against the allowance for loan | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | $ | - | |
loss recognized at modification |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Loans acquired at fair value | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Number of loans | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | |
Pre-modification outstanding | $ | - | | | $ | - | | | $ | - | | | $ | - | | | $ | - | | | $ | - | | | $ | - | | | $ | - | |
recorded investment |
Post-modification outstanding | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | $ | - | |
recorded investment |
Charge offs against the allowance for loan | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | $ | - | |
loss recognized at modification |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Troubled debt restructuring defaults for the | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
three months ended March 31, 2015 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Originated and purchased loans | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Number of loans | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | |
Outstanding recorded investment | $ | - | | | $ | - | | | $ | - | | | $ | - | | | $ | - | | | $ | - | | | $ | - | | | $ | - | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Loans acquired at fair value | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Number of loans | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | |
Outstanding recorded investment | $ | - | | | $ | - | | | $ | - | | | $ | - | | | $ | - | | | $ | - | | | $ | - | | | $ | - | |
|
Troubled Debt Restructurings of Loans Receivable | |
at March 31, 2015 | |
| Residential | | | Commercial | | | Construction | | | Commercial | | | Home Equity | | | Home Equity | | | Other | | | Total | |
Mortgage | Mortgage | Business | Loans | Lines of | Consumer |
| | | | Credit | |
| (In Thousands) | |
Troubled debt restructuring activity for the | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
nine months ended March 31, 2015 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Originated and purchased loans | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Number of loans | | 5 | | | | - | | | | - | | | | 2 | | | | - | | | | - | | | | - | | | | 7 | |
Pre-modification outstanding | $ | 1,955 | | | $ | - | | | $ | - | | | $ | 348 | | | $ | - | | | $ | - | | | $ | - | | | $ | 2,303 | |
recorded investment |
Post-modification outstanding | | 1,823 | | | | - | | | | - | | | | 322 | | | | - | | | | - | | | | - | | | $ | 2,145 | |
recorded investment |
Charge offs against the allowance for loan | | 261 | | | | - | | | | - | | | | 27 | | | | - | | | | - | | | | - | | | $ | 288 | |
loss recognized at modification |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Loans acquired at fair value | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Number of loans | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | |
Pre-modification outstanding | $ | - | | | $ | - | | | $ | - | | | $ | - | | | $ | - | | | $ | - | | | $ | - | | | $ | - | |
recorded investment |
Post-modification outstanding | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | $ | - | |
recorded investment |
Charge offs against the allowance for loan | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | $ | - | |
loss recognized at modification |
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Troubled debt restructuring defaults for the | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
nine months ended March 31, 2015 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Originated and purchased loans | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Number of loans | | 1 | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | 1 | |
Outstanding recorded investment | $ | 419 | | | $ | - | | | $ | - | | | $ | - | | | $ | - | | | $ | - | | | $ | - | | | $ | 419 | |
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Loans acquired at fair value | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Number of loans | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | |
Outstanding recorded investment | $ | - | | | $ | - | | | $ | - | | | $ | - | | | $ | - | | | $ | - | | | $ | - | | | $ | - | |
|
Troubled Debt Restructurings of Loans Receivable | |
at March 31, 2014 | |
| Residential | | | Commercial | | | Construction | | | Commercial | | | Home Equity | | | Home Equity | | | Other | | | Total | |
Mortgage | Mortgage | Business | Loans | Lines of | Consumer |
| | | | Credit | |
| (In Thousands) | |
Troubled debt restructuring activity for the | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
three months ended March 31, 2014 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Originated and purchased loans | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Number of loans | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | |
Pre-modification outstanding | $ | - | | | $ | - | | | $ | - | | | $ | - | | | $ | - | | | $ | - | | | $ | - | | | $ | - | |
recorded investment |
Post-modification outstanding | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | $ | - | |
recorded investment |
Charge offs against the allowance for loan | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | $ | - | |
loss recognized at modification |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Loans acquired at fair value | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Number of loans | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | |
Pre-modification outstanding | $ | - | | | $ | - | | | $ | - | | | $ | - | | | $ | - | | | $ | - | | | $ | - | | | $ | - | |
recorded investment |
Post-modification outstanding | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | $ | - | |
recorded investment |
Charge offs against the allowance for loan | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | $ | - | |
loss recognized at modification |
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Troubled debt restructuring defaults for the | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
three months ended March 31, 2014 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Originated and purchased loans | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Number of loans | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | |
Outstanding recorded investment | $ | - | | | $ | - | | | $ | - | | | $ | - | | | $ | - | | | $ | - | | | $ | - | | | $ | - | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Loans acquired at fair value | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Number of loans | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | |
Outstanding recorded investment | $ | - | | | $ | - | | | $ | - | | | $ | - | | | $ | - | | | $ | - | | | $ | - | | | $ | - | |
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Troubled Debt Restructurings of Loans Receivable | |
at March 31, 2014 | |
| Residential | | | Commercial | | | Construction | | | Commercial | | | Home Equity | | | Home Equity | | | Other | | | Total | |
Mortgage | Mortgage | Business | Loans | Lines of | Consumer |
| | | | Credit | |
| (In Thousands) | |
Troubled debt restructuring activity for the | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
nine months ended March 31, 2014 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Originated and purchased loans | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Number of loans | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | |
Pre-modification outstanding | $ | - | | | $ | - | | | $ | - | | | $ | - | | | $ | - | | | $ | - | | | $ | - | | | $ | - | |
recorded investment |
Post-modification outstanding | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | $ | - | |
recorded investment |
Charge offs against the allowance | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | $ | - | |
for loan loss for impairment |
recognized at modification |
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Loans acquired at fair value | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Number of loans | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | |
Pre-modification outstanding | $ | - | | | $ | - | | | $ | - | | | $ | - | | | $ | - | | | $ | - | | | $ | - | | | $ | - | |
recorded investment |
Post-modification outstanding | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | $ | - | |
recorded investment |
Charge offs against the allowance | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | $ | - | |
for loan loss for impairment |
recognized at modification |
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Troubled debt restructuring defaults for the | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
nine months ended March 31, 2014 |
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Originated and purchased loans | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Number of loans | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | |
Outstanding recorded investment | $ | - | | | $ | - | | | $ | - | | | $ | - | | | $ | - | | | $ | - | | | $ | - | | | $ | - | |
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Loans acquired at fair value | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Number of loans | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | |
Outstanding recorded investment | $ | - | | | $ | - | | | $ | - | | | $ | - | | | $ | - | | | $ | - | | | $ | - | | | $ | - | |
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The manner in which the terms of a loan are modified through a troubled debt restructuring generally includes one or more of the following changes to the loan’s repayment terms: |
· | Interest Rate Reduction: Temporary or permanent reduction of the interest rate charged against the outstanding balance of the loan. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
· | Capitalization of Prior Past Dues: Capitalization of prior amounts due to the outstanding balance of the loan. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
· | Extension of Maturity or Balloon Date: Extending the term of the loan past its original balloon or maturity date. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
· | Deferral of Principal Payments: Temporary deferral of the principal portion of a loan payment. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
· | Payment Recalculation and Re-amortization: Recalculation of the recurring payment obligation and resulting loan amortization/repayment schedule based on the loan’s modified terms. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |