Loans Receivable | 3 Months Ended |
Mar. 31, 2015 |
Receivables [Abstract] | |
Loans Receivable | Loans Receivable |
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Loans receivable are summarized as follows at the dates indicated: |
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| March 31, 2015 | | 31-Dec-14 | | | | | | | | | | | | | | | | | | | | | | |
| (In thousands) | | | | | | | | | | | | | | | | | | | | | | |
One-to-four family residential: | | | | | | | | | | | | | | | | | | | | | | | | | |
Permanent owner occupied | $ | 158,541 | | | $ | 161,013 | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Permanent non-owner occupied | 106,809 | | | 112,180 | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Construction non-owner occupied (1) | 500 | | | 500 | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| 265,850 | | | 273,693 | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Multifamily: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Permanent | 117,359 | | | 116,014 | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Construction (1) | 4,450 | | | 4,450 | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| 121,809 | | | 120,464 | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Commercial real estate: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Permanent | 238,227 | | | 239,211 | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Construction (1) | 6,100 | | | 6,100 | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Land (2) | 5,370 | | | 2,956 | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| 249,697 | | | 248,267 | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Construction/land development: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
One-to-four family residential (1) | 28,810 | | | 19,860 | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Multifamily (1) | 19,452 | | | 17,902 | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Commercial (1) | 4,300 | | | 4,300 | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Land development (2) | 8,673 | | | 8,993 | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| 61,235 | | | 51,055 | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Business | 5,313 | | | 3,783 | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Consumer | 6,716 | | | 7,130 | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Total loans | 710,620 | | | 704,392 | | | | | | | | | | | | | | | | | | | | | | | |
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Less: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Loans in process ("LIP") | 28,788 | | | 27,359 | | | | | | | | | | | | | | | | | | | | | | | |
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Deferred loan fees, net | 2,610 | | | 2,604 | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
ALLL | 10,508 | | | 10,491 | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Loans receivable, net | $ | 668,714 | | | $ | 663,938 | | | | | | | | | | | | | | | | | | | | | | | |
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___________ |
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(1) Construction/land development excludes construction loans that will convert to permanent loans. The Company considers these loans to be "rollovers" in that one loan is originated for both the construction loan and permanent financing. These loans are classified according to the underlying collateral. At March 31, 2015, the Company had $6.1 million, or 2.4% of the total commercial real estate portfolio, $4.5 million, or 3.7% of its total multifamily portfolio, and $500,000 or 0.2% of the total one-to-four family residential portfolio in these rollover loans. At December 31, 2014, the Company had $6.1 million, or 2.5% of the total commercial real estate portfolio and $4.5 million, or 3.7% of the total multifamily portfolio, and $500,000 or 0.2% of the total one-to-four family residential portfolio in these rollover loans. |
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(2)At March 31, 2015, and December 31, 2014, $5.4 million and $3.0 million, respectively, of commercial real estate loans were not included in the construction/land development category because the Company classifies raw land or buildable lots (where we do not intend to finance the construction) as commercial real estate land loans. |
At both March 31, 2015 and December 31, 2014, there were no loans classified as held for sale. |
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ALLL. The Company maintains an ALLL as a reserve against probable and inherent risk of losses in its loan portfolios. The ALLL is comprised of a general reserve component for loans evaluated collectively for loss and a specific reserve component for loans evaluated individually. We continually monitor our loan portfolio for delinquent loans and changes in our borrower's financial condition. When an issue is identified and it is determined that the loan needs to be classified as nonperforming and/or impaired, an evaluation of the collateral is performed and, if necessary, an appraisal is ordered in accordance with our appraisal policy guidelines. Based on this evaluation, any additional provision for loan loss or charge-offs is recorded prior to the end of the financial reporting period. |
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The following tables summarize changes in the ALLL and loan portfolio by loan type and impairment method for the periods shown: |
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| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| At or For the Three Months Ended March 31, 2015 | | |
| One-to-Four | | Multifamily | | Commercial | | Construction/ | | Business | | Consumer | | Total | | |
Family | Real Estate | Land | | |
Residential | | Development | | |
| (In thousands) | | |
ALLL: | | | | | | | | | | | | | | | |
Beginning balance | $ | 3,694 | | | $ | 1,646 | | | $ | 4,597 | | | $ | 355 | | | $ | 47 | | | $ | 152 | | | $ | 10,491 | | | |
| |
Charge-offs | (25 | ) | | (281 | ) | | — | | | — | | | — | | | (34 | ) | | (340 | ) | | |
| |
Recoveries | 173 | | | — | | | — | | | — | | | 3 | | | 281 | | | 457 | | | |
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Provision (recapture) | (154 | ) | | (342 | ) | | 38 | | | 386 | | | 4 | | | (32 | ) | | (100 | ) | | |
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Ending balance | $ | 3,688 | | | $ | 1,023 | | | $ | 4,635 | | | $ | 741 | | | $ | 54 | | | $ | 367 | | | $ | 10,508 | | | |
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| | | | | | | | | | | | | | | |
Allowance by category: | | | | | | | | | | | | | | | |
General reserve | $ | 3,027 | | | $ | 1,002 | | | $ | 4,242 | | | $ | 741 | | | $ | 54 | | | $ | 323 | | | $ | 9,389 | | | |
| |
Specific reserve | 661 | | | 21 | | | 393 | | | — | | | — | | | 44 | | | 1,119 | | | |
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| | | | | | | | | | | | | | | |
Loans: (1) | | | | | | | | | | | | | | | |
Total loans | $ | 265,822 | | | $ | 121,715 | | | $ | 249,398 | | | $ | 32,868 | | | $ | 5,313 | | | $ | 6,716 | | | $ | 681,832 | | | |
| |
Loans with general | 224,385 | | | 117,869 | | | 240,732 | | | 32,868 | | | 5,313 | | | 6,520 | | | 627,687 | | | |
valuation allowance (2) | | |
Loans with specific | 41,437 | | | 3,846 | | | 8,666 | | | — | | | — | | | 196 | | | 54,145 | | | |
reserves (3) | | |
____________ |
|
(1) Net of LIP. |
(2) Loans collectively evaluated for general reserves. |
(3) Loans individually evaluated for specific reserves. |
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| At or For the Three Months Ended March 31, 2014 | | |
| One-to-Four | | Multifamily | | Commercial | | Construction/ | | Business | | Consumer | | Total | | |
Family | Real Estate | Land | | |
Residential | | Development | | |
| (In thousands) | | |
ALLL: | | | | | | | | | | | | | | | |
Beginning balance | $ | 5,141 | | | $ | 1,377 | | | $ | 5,881 | | | $ | 399 | | | $ | 14 | | | $ | 182 | | | $ | 12,994 | | | |
| |
Charge-offs | (18 | ) | | — | | | (311 | ) | | (223 | ) | | — | | | (1 | ) | | (553 | ) | | |
| |
Recoveries | — | | | — | | | 151 | | | — | | | — | | | 1 | | | 152 | | | |
| |
Provision (recapture) | (548 | ) | | 29 | | | (185 | ) | | 212 | | | (7 | ) | | (1 | ) | | (500 | ) | | |
| |
Ending balance | $ | 4,575 | | | $ | 1,406 | | | $ | 5,536 | | | $ | 388 | | | $ | 7 | | | $ | 181 | | | $ | 12,093 | | | |
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| | | | | | | | | | | | | | | |
Allowance by category: | | | | | | | | | | | | | | | |
General reserve | $ | 3,056 | | | $ | 1,326 | | | $ | 4,970 | | | $ | 388 | | | $ | 7 | | | $ | 181 | | | $ | 9,928 | | | |
| |
Specific reserve | 1,519 | | | 80 | | | 566 | | | — | | | — | | | — | | | 2,165 | | | |
| |
| | | | | | | | | | | | | | | |
Loans: (1) | | | | | | | | | | | | | | | | |
| |
Total loans | $ | 279,244 | | | $ | 121,639 | | | $ | 253,420 | | | $ | 23,065 | | | $ | 614 | | | $ | 8,583 | | | $ | 686,565 | | | |
| |
Loans with general | 231,882 | | | 119,210 | | | 240,648 | | | 23,065 | | | 614 | | | 8,540 | | | 623,959 | | | |
valuation allowance (2) | | |
Loans with specific | 47,362 | | | 2,429 | | | 12,772 | | | — | | | — | | | 43 | | | 62,606 | | | |
reserves (3) | | |
_____________ |
|
(1) Net of LIP. |
(2) Loans collectively evaluated for general reserves. |
(3) Loans individually evaluated for specific reserves. |
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Past Due Loans. Loans are considered past due if a scheduled principal or interest payment is due and unpaid for 30 days or more. At March 31, 2015, total past due loans comprised 0.52% of total loans receivable as compared to 0.66% at December 31, 2014. The following tables represent a summary of the aging of loans by type at the dates indicated: |
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| Loans Past Due as of March 31, 2015 | | | | | | | | | | |
| 30-59 Days | | 60-89 Days | | 90 Days and | | Total Past | | Current | | Total (1) (2) | | | | | | |
Greater | Due | | | | | | |
| (In thousands) | | | | | | |
Real estate: | | | | | | | | | | | | | | | | | |
One-to-four family residential: | | | | | | | | | | | | | | | | | |
Owner occupied | $ | 256 | | | $ | 345 | | | $ | 475 | | | $ | 1,076 | | | $ | 157,465 | | | $ | 158,541 | | | | | | | |
| | | | | |
Non-owner occupied | — | | | — | | | — | | | — | | | 107,281 | | | 107,281 | | | | | | | |
| | | | | |
Multifamily | — | | | — | | | 1,683 | | | 1,683 | | | 120,032 | | | 121,715 | | | | | | | |
| | | | | |
Commercial real estate | 306 | | | 324 | | | 105 | | | 735 | | | 248,663 | | | 249,398 | | | | | | | |
| | | | | |
Construction/land development | — | | | — | | | — | | | — | | | 32,868 | | | 32,868 | | | | | | | |
| | | | | |
Total real estate | 562 | | | 669 | | | 2,263 | | | 3,494 | | | 666,309 | | | 669,803 | | | | | | | |
| | | | | |
Business | — | | | — | | | — | | | — | | | 5,313 | | | 5,313 | | | | | | | |
| | | | | |
Consumer | — | | | 74 | | | — | | | 74 | | | 6,642 | | | 6,716 | | | | | | | |
| | | | | |
Total loans | $ | 562 | | | $ | 743 | | | $ | 2,263 | | | $ | 3,568 | | | $ | 678,264 | | | $ | 681,832 | | | | | | | |
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________________ |
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(1) There were no loans 90 days and greater past due and still accruing interest at March 31, 2015. |
(2) Net of LIP. |
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| | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Loans Past Due as of December 31, 2014 | | | | | | | | | | |
| 30-59 Days | | 60-89 Days | | 90 Days and | | Total Past | | Current | | Total (1) (2) | | | | | | |
Greater | Due | | | | | | |
| (In thousands) | | | | | | |
Real estate: | | | | | | | | | | | | | | | | | |
One-to-four family residential: | | | | | | | | | | | | | | | | | |
Owner occupied | $ | 666 | | | $ | 575 | | | $ | 666 | | | $ | 1,907 | | | $ | 159,106 | | | $ | 161,013 | | | | | | | |
| | | | | |
Non-owner occupied | — | | | — | | | 164 | | | 164 | | | 112,388 | | | 112,552 | | | | | | | |
| | | | | |
Multifamily | 1,965 | | | — | | | — | | | 1,965 | | | 118,306 | | | 120,271 | | | | | | | |
| | | | | |
Commercial real estate | — | | | 325 | | | 11 | | | 336 | | | 247,632 | | | 247,968 | | | | | | | |
| | | | | |
Construction/land development | — | | | — | | | — | | | — | | | 24,316 | | | 24,316 | | | | | | | |
| | | | | |
Total real estate | 2,631 | | | 900 | | | 841 | | | 4,372 | | | 661,748 | | | 666,120 | | | | | | | |
| | | | | |
Business | — | | | — | | | — | | | — | | | 3,783 | | | 3,783 | | | | | | | |
| | | | | |
Consumer | — | | | 75 | | | — | | | 75 | | | 7,055 | | | 7,130 | | | | | | | |
| | | | | |
Total loans | $ | 2,631 | | | $ | 975 | | | $ | 841 | | | $ | 4,447 | | | $ | 672,586 | | | $ | 677,033 | | | | | | | |
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_________________ |
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(1) There were no loans 90 days and greater past due and still accruing interest at December 31, 2014. |
(2) Net of LIP. |
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Nonaccrual Loans. Loans are placed on nonaccrual when they are 90 days delinquent or when, in management's opinion, the borrower is unable to meet scheduled payment obligations. |
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In order to return a nonaccrual loan to accrual status, the Company evaluates the borrower's financial condition to ensure that future loan payments are reasonably assured. The Company also takes into consideration the borrower's willingness and ability to make the loan payments, as well as historical repayment performance. The Company requires the borrower to make loan payments consistently for a period of at least six months as agreed to under the terms of the loan agreement before the Company will consider reclassifying the loan to accrual status. |
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The following table is a summary of nonaccrual loans by loan type at the dates indicated: |
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| 31-Mar-15 | | 31-Dec-14 | | | | | | | | | | | | | | | | | | | | | | |
| (In thousands) | | | | | | | | | | | | | | | | | | | | | | |
One-to-four family residential | $ | 494 | | | $ | 830 | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Multifamily | 1,683 | | | — | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Commercial real estate | 425 | | | 434 | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Consumer | 74 | | | 75 | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Total nonaccrual loans | $ | 2,676 | | | $ | 1,339 | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
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Foregone interest on nonperforming loans for the three months ended March 31, 2015, was $26,000, compared to $44,000 for the same quarter in 2014. |
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The following tables summarize the loan portfolio by type and payment status at the dates indicated: |
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| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| March 31, 2015 | | |
| One-to-Four | | Multifamily | | Commercial | | Construction / | | Business | | Consumer | | Total (1) | | |
Family | Real Estate | Land | | |
Residential | | Development | | |
| (In thousands) | | |
Performing (2) | $ | 265,328 | | | $ | 120,032 | | | $ | 248,973 | | | $ | 32,868 | | | $ | 5,313 | | | $ | 6,642 | | | $ | 679,156 | | | |
| |
Nonperforming (3) | 494 | | | 1,683 | | | 425 | | | — | | | — | | | 74 | | | 2,676 | | | |
| |
Total loans | $ | 265,822 | | | $ | 121,715 | | | $ | 249,398 | | | $ | 32,868 | | | $ | 5,313 | | | $ | 6,716 | | | $ | 681,832 | | | |
| |
_____________ |
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(1) | Net of LIP. | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
(2) | There were $158.0 million of owner-occupied one-to-four family residential loans and $107.3 million of non-owner occupied one-to-four family residential loans classified as performing. | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
(3) | There were $494,000 of owner-occupied one-to-four family residential loans and no non-owner occupied one-to-four family residential loans classified as nonperforming. | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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| 31-Dec-14 | | |
| One-to-Four | | Multifamily | | Commercial | | Construction/ | | Business | | Consumer | | Total (1) | | |
Family | Real Estate | Land | | |
Residential | | Development | | |
| (In thousands) | | |
Performing (2) | $ | 272,735 | | | $ | 120,271 | | | $ | 247,534 | | | $ | 24,316 | | | $ | 3,783 | | | $ | 7,055 | | | $ | 675,694 | | | |
| |
Nonperforming (3) | 830 | | | — | | | 434 | | | — | | | — | | | 75 | | | 1,339 | | | |
| |
Total loans | $ | 273,565 | | | $ | 120,271 | | | $ | 247,968 | | | $ | 24,316 | | | $ | 3,783 | | | $ | 7,130 | | | $ | 677,033 | | | |
| |
_____________ |
|
(1) Net of LIP. |
(2) There were $160.3 million of owner-occupied one-to-four family residential loans and $112.4 million of non-owner occupied one-to-four family residential loans classified as performing. |
(3) There were $666,000 of owner-occupied one-to-four family residential loans and $164,000 of non-owner occupied one-to-four family residential loans classified as nonperforming. |
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Impaired Loans. A loan is considered impaired when we have determined that we may be unable to collect payments of principal or interest when due under the terms of the original loan document. When identifying loans as impaired, management takes into consideration factors which include payment history and status, collateral value, financial condition of the borrower, and the probability of collecting scheduled payments in the future. Minor payment delays and insignificant payment shortfalls typically do not result in a loan being classified as impaired. The significance of payment delays and shortfalls is considered by management on a case-by-case basis after taking into consideration the circumstances surrounding the loan and the borrower, including payment history and the amounts of any payment shortfall, length and reason for delay and the likelihood of a return to stable performance. Impairment is measured on a loan-by-loan basis for all loans in the portfolio. We obtain annual updated appraisals for impaired collateral dependent loans that exceed $1.0 million. |
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There were no funds committed to be advanced in connection with impaired loans at either March 31, 2015, or December 31, 2014. |
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The following tables present a summary of loans individually evaluated for impairment by loan type at the dates indicated: |
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| 31-Mar-15 | | | | | | | | | | | | | | | | | | |
| Recorded Investment (1) | | Unpaid Principal Balance (2) | | Related Allowance | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| (In thousands) | | | | | | | | | | | | | | | | | | |
Loans with no related allowance: | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
One-to-four family residential: | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Owner occupied | $ | 3,322 | | | $ | 3,680 | | | $ | — | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Non-owner occupied | 27,831 | | | 27,907 | | | — | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Multifamily | 1,683 | | | 1,965 | | | — | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Commercial real estate | 4,533 | | | 4,837 | | | — | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Consumer | 117 | | | 152 | | | — | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Total | 37,486 | | | 38,541 | | | — | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Loans with an allowance: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
One-to-four family residential: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Owner occupied | 2,143 | | | 2,213 | | | 100 | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Non-owner occupied | 8,141 | | | 8,141 | | | 561 | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Multifamily | 2,163 | | | 2,163 | | | 21 | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Commercial real estate | 4,133 | | | 4,133 | | | 393 | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Consumer | 79 | | | 79 | | | 44 | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Total | 16,659 | | | 16,729 | | | 1,119 | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Total impaired loans: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
One-to-four family residential: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Owner occupied | 5,465 | | | 5,893 | | | 100 | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Non-owner occupied | 35,972 | | | 36,048 | | | 561 | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Multifamily | 3,846 | | | 4,128 | | | 21 | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Commercial real estate | 8,666 | | | 8,970 | | | 393 | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Consumer | 196 | | | 231 | | | 44 | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Total | $ | 54,145 | | | $ | 55,270 | | | $ | 1,119 | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
_________________ |
|
(1) Represents the loan balance less charge-offs. |
(2) Contractual loan principal balance. |
|
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 31-Dec-14 | | | | | | | | | | | | | | | | | | |
| Recorded Investment (1) | | Unpaid Principal Balance (2) | | Related Allowance | | | | | | | | | | | | | | | | | | |
| (In thousands) | | | | | | | | | | | | | | | | | | |
Loans with no related allowance: | | | | | | | | | | | | | | | | | | | | | | | |
One-to-four family residential: | | | | | | | | | | | | | | | | | | | | | | | |
Owner occupied | $ | 3,308 | | | $ | 3,661 | | | $ | — | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Non-owner occupied | 29,224 | | | 29,266 | | | — | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Commercial real estate | 4,553 | | | 4,851 | | | — | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Consumer | 118 | | | 153 | | | — | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Total | 37,203 | | | 37,931 | | | — | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Loans with an allowance: | | | | | | | | | | | | | | | | | | | | | | | |
One-to-four family residential: | | | | | | | | | | | | | | | | | | | | | | | |
Owner occupied | 2,554 | | | 2,624 | | | 121 | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Non-owner occupied | 8,652 | | | 8,704 | | | 679 | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Multifamily | 2,172 | | | 2,172 | | | 27 | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Commercial real estate | 4,999 | | | 4,999 | | | 329 | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Consumer | 79 | | | 79 | | | 59 | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Total | 18,456 | | | 18,578 | | | 1,215 | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Total impaired loans: | | | | | | | | | | | | | | | | | | | | | | | |
One-to-four family residential: | | | | | | | | | | | | | | | | | | | | | | | |
Owner occupied | 5,862 | | | 6,285 | | | 121 | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Non-owner occupied | 37,876 | | | 37,970 | | | 679 | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Multifamily | 2,172 | | | 2,172 | | | 27 | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Commercial real estate | 9,552 | | | 9,850 | | | 329 | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Consumer | 197 | | | 232 | | | 59 | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Total | $ | 55,659 | | | $ | 56,509 | | | $ | 1,215 | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
_________________ |
|
(1) Represents the loan balance less charge-offs. |
(2) Contractual loan principal balance. |
|
|
|
The following table present the average recorded investment in loans individually evaluated for impairment and the interest income recognized for the three months ended March 31, 2015 and 2014: |
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended March 31, 2015 | | Three Months Ended March 31, 2014 | | | | | | | | | | | | | | |
| Average Recorded Investment | | Interest Income Recognized | | Average Recorded Investment | | Interest Income Recognized | | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| (In thousands) | | | | | | | | | | | | | | |
Loans with no related allowance: | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
One-to-four family residential: | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Owner occupied | $ | 3,315 | | | $ | 47 | | | $ | 3,633 | | | $ | 38 | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Non-owner occupied | 28,527 | | | 430 | | | 29,006 | | | 432 | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Multifamily | 842 | | | — | | | 231 | | | — | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Commercial real estate | 4,543 | | | 70 | | | 5,964 | | | 82 | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Construction/land development | — | | | — | | | 112 | | | — | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Consumer | 118 | | | 1 | | | 43 | | | — | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Total | 37,345 | | | 548 | | | 38,989 | | | 552 | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Loans with an allowance: | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
One-to-four family residential: | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Owner occupied | 2,349 | | | 30 | | | 3,295 | | | 39 | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Non-owner occupied | 8,397 | | | 119 | | | 11,822 | | | 157 | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Multifamily | 2,167 | | | 33 | | | 2,204 | | | 34 | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Commercial real estate | 4,566 | | | 58 | | | 7,076 | | | 87 | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Consumer | 79 | | | 1 | | | — | | | — | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Total | 17,558 | | | 241 | | | 24,397 | | | 317 | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Total impaired loans: | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
One-to-four family residential: | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Owner occupied | 5,664 | | | 77 | | | 6,928 | | | 77 | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Non-owner occupied | 36,924 | | | 549 | | | 40,828 | | | 589 | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Multifamily | 3,009 | | | 33 | | | 2,435 | | | 34 | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Commercial real estate | 9,109 | | | 128 | | | 13,040 | | | 169 | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Construction/land development | — | | | — | | | 112 | | | — | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Consumer | 197 | | | 2 | | | 43 | | | — | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Total | $ | 54,903 | | | $ | 789 | | | $ | 63,386 | | | $ | 869 | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
|
Troubled Debt Restructurings. Certain loan modifications are accounted for as troubled debt restructured loans ("TDRs"). In general, the modification or restructuring of a debt is considered a TDR if, for economic or legal reasons related to the borrower's financial difficulties, a concession is granted to the borrower that the Company would not otherwise consider. Once the loan is restructured, a current, well-documented credit evaluation of the borrower's financial condition and prospects for repayment are performed to assess the likelihood that all principal and interest payments required under the terms of the modified agreement will be collected in full. A loan that is classified as a TDR is generally reported as a TDR until the loan is paid in full or otherwise settled, sold, or charged-off. |
|
The accrual status of a loan may change after it has been classified as a TDR. Management considers the following in determining the accrual status of restructured loans: (1) if the loan was on accrual status prior to the restructuring, the borrower has demonstrated performance under the previous terms, and a credit evaluation shows the borrower's capacity to continue to perform under the restructured terms (both principal and interest payments), the loan will remain on accrual at the time of the restructuring; (2) if the loan was on nonaccrual status before the restructuring, and the Company's credit evaluation shows the borrower's capacity to meet the restructured terms, the loan would remain as nonaccrual for a minimum of six months after restructuring until the borrower has demonstrated a reasonable period of sustained repayment performance, thereby providing reasonable assurance as to the ultimate collection of principal and interest in full under the modified terms. |
|
At March 31, 2015 and December 31, 2014, the TDR portfolio totaled $51.4 million and $54.2 million, respectively, all of which were on accrual status and performing in accordance with the terms of their restructure. |
|
The following table presents loans that were modified as TDRs within the periods indicated, and their recorded investment both prior to and after the modification: |
| | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended March 31, 2015 | | Three Months Ended March 31, 2014 | | | | | | | | |
| Number of Loans | | Pre-Modification Outstanding | | Post-Modification Outstanding | | Number of Loans | | Pre-Modification Outstanding | | Post-Modification Outstanding | | | | | | | | |
Recorded | Recorded | Recorded | Recorded | | | | | | | | |
Investment | Investment | Investment | Investment | | | | | | | | |
| (Dollars in thousands) | | | | | | | | |
One-to-four family | | | | | | | | | | | | | | | | | | | |
residential: | | | | | | | | |
Principal and interest with | — | | | $ | — | | | $ | — | | | 1 | | | $ | 221 | | | $ | 221 | | | | | | | | | |
interest rate concession | | | | | | | | |
Advancement of maturity | 2 | | | 248 | | | 248 | | | — | | | — | | | — | | | | | | | | | |
date | | | | | | | | |
Commercial real estate: | | | | | | | | | | | | | | | | | | | |
Advancement of maturity date | 1 | | | 454 | | | 454 | | | — | | | — | | | — | | | | | | | | | |
| | | | | | | |
Interest-only payments with advancement of maturity date | 1 | | | 2,004 | | | 2,004 | | | — | | | — | | | — | | | | | | | | | |
| | | | | | | |
Total | 4 | | | $ | 2,706 | | | $ | 2,706 | | | 1 | | | $ | 221 | | | $ | 221 | | | | | | | | | |
| | | | | | | |
|
At March 31, 2015, the Company had no commitments to extend additional credit to borrowers whose loan terms have been modified in TDRs. All TDRs are also classified as impaired loans and are included in the loans individually evaluated for impairment in the calculation of the ALLL. |
|
The TDRs that occurred during the three months ended March 31, 2015 and 2014, were the result of advancing the maturity date for balloon payments on loans otherwise current on principal and interest payments, or granting the borrower interest rate concessions and/or interest-only payments for a period of time ranging from one to three years. The impaired portion of the loan with an interest rate concession and/or interest-only payments for a specific period of time are calculated based on the present value of expected future cash flows discounted at the loan’s effective interest rate. The effective interest rate is the rate of return implicit on the original loan. This impaired amount increases the ALLL and is expensed to earnings. As loan payments are received in future periods, the entry is amortized over the life of the concession, reducing ALLL and recapturing provision expense. TDRs resulted in no charge-offs to the ALLL for the three months ended March 31, 2015 and 2014. |
|
The following is a summary of loans that were modified as TDRs within the 12 months prior to March 31, 2015 or 2014, and for which there was a payment default during the three months ended March 31, 2015 or 2014: |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Types of Modification |
| Three Months Ended March 31, 2015 | | Three Months Ended March 31, 2014 |
|
| Number of Loans | | No Interest Rate Concession | | Interest Rate Concession | | Advancement of Maturity Date | | Number of Loans | | No Interest Rate Concession with Modified Payment | | Interest Rate Concession | | Advancement of Maturity Date |
with Modified Payment |
| (Dollars in thousands) |
Commercial | — | | | $ | — | | | $ | — | | | $ | — | | | 1 | | | $ | — | | | $ | — | | | $ | 430 | |
real estate |
Total | — | | | $ | — | | | $ | — | | | $ | — | | | 1 | | | $ | — | | | $ | — | | | $ | 430 | |
|
|
TDRs that default after they have been modified are typically evaluated individually on a collateral basis. Any additional impairment further reduces the ALLL. For the three months ended March 31, 2015, no loans defaulted that had been modified within the previous 12 months. For the three months ended March 31, 2014, one loan that was restructured during the previous 12 months missed a payment, but has since become current. |
|
Credit Quality Indicators. The Company utilizes a nine-category risk rating system and assigns a risk rating for all credit exposures. The risk rating system is designed to define the basic characteristics and identify risk elements of each credit extension. Credits risk rated 1 through 5 are considered to be “pass” credits. Pass credits include assets, such as cash secured loans with funds on deposit with the Bank, where there is virtually no credit risk. Pass credits also include credits that are on the Company's watch list, where the borrower exhibits potential weaknesses, which may, if not checked or corrected, negatively affect the borrower’s financial capacity and threaten their ability to fulfill debt obligations in the future. Credits classified as special mention are risk rated 6 and possess weaknesses that deserve management’s close attention. Special mention assets do not expose the Company to sufficient risk to warrant adverse classification in the substandard, doubtful or loss categories. Substandard credits are risk rated 7. An asset is considered substandard if it is inadequately protected by the current net worth and payment capacity of the borrower or of any collateral pledged. |
|
Substandard assets include those characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. Assets classified as doubtful are risk rated 8 and have all the weaknesses inherent in those credits 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 classified as loss are risk rated 9 and are considered uncollectible and cannot be justified as a viable asset for the Company. There were no loans classified as doubtful or loss at March 31, 2015 and December 31, 2014. |
|
The following tables represent a summary of loans by type and risk category at the dates indicated: |
| | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| March 31, 2015 | | |
| One-to-Four | | Multifamily | | Commercial | | Construction/ | | Business | | Consumer | | Total (1) | | |
Family | Real Estate | Land | | |
Residential | | Development | | |
| (In thousands) | | |
Risk Rating: | | | | | | | | | | | | | | | |
Pass | $ | 256,900 | | | $ | 118,622 | | | $ | 236,908 | | | $ | 32,868 | | | $ | 5,313 | | | $ | 6,454 | | | $ | 657,065 | | | |
| |
Special mention | 5,365 | | | 1,410 | | | 10,904 | | | — | | | — | | | — | | | 17,679 | | | |
| |
Substandard | 3,557 | | | 1,683 | | | 1,586 | | | — | | | — | | | 262 | | | 7,088 | | | |
| |
Total loans | $ | 265,822 | | | $ | 121,715 | | | $ | 249,398 | | | $ | 32,868 | | | $ | 5,313 | | | $ | 6,716 | | | $ | 681,832 | | | |
| |
_____________ |
|
(1) Net of LIP. |
|
| | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 31-Dec-14 | | |
| One-to-Four | | Multifamily | | Commercial | | Construction / | | Business | | Consumer | | Total (1) | | |
Family | Real Estate | Land | | |
Residential | | Development | | |
| (In thousands) | | |
Risk Rating: | | | | | | | | | | | | | | | |
Pass | $ | 263,094 | | | $ | 116,891 | | | $ | 235,841 | | | $ | 24,316 | | | $ | 3,783 | | | $ | 6,833 | | | $ | 650,758 | | | |
| |
Special mention | 4,157 | | | 1,416 | | | 10,529 | | | — | | | — | | | — | | | 16,102 | | | |
| |
Substandard | 6,314 | | | 1,964 | | | 1,598 | | | — | | | — | | | 297 | | | 10,173 | | | |
| |
Total loans | $ | 273,565 | | | $ | 120,271 | | | $ | 247,968 | | | $ | 24,316 | | | $ | 3,783 | | | $ | 7,130 | | | $ | 677,033 | | | |
| |
_____________ |
|
(1) Net of LIP. |