Loans Receivable, Net | 6 Months Ended |
Dec. 31, 2014 |
Loans Receivable, Net [Abstract] | |
Loans Receivable, Net | Note 8 - Loans Receivable, net |
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Loans receivable consisted of the following at the dates indicated: |
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| 31-Dec-14 | | June 30, | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
2014 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (In thousands) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Real estate: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
One-to-four family | $ | 60,013 | | | $ | 63,009 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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Multi-family | 43,978 | | | 47,507 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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Commercial | 106,482 | | | 107,828 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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Construction | 24,250 | | | 19,690 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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Land | 4,154 | | | 4,126 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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Total real estate | 238,877 | | | 242,160 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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Consumer: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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Home equity | 18,971 | | | 20,894 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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Credit cards | 3,326 | | | 3,548 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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Automobile | 894 | | | 1,073 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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Other consumer | 2,356 | | | 2,838 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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Total consumer | 25,547 | | | 28,353 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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Commercial business | 17,214 | | | 16,737 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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Total loans | 281,638 | | | 287,250 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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Less: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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Deferred loan fees | 1,108 | | | 1,100 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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Allowance for loan losses | 4,000 | | | 4,624 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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Loans receivable, net | $ | 276,530 | | | $ | 281,526 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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Allowance for Loan Losses. The allowance for loan losses must be maintained at a level necessary to absorb specific losses on impaired loans and probable losses inherent in the loan portfolio. The assessment includes analysis of several different factors, including delinquency, charge-off rates and the changing risk profile of our loan portfolio, as well as local economic conditions such as unemployment rates, bankruptcies and vacancy rates of business and residential properties. |
The following table presents the activity in the allowance for loan losses by portfolio segment for the three months ended December 31, 2014: |
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| One-to- four family | | Multi- | | Commercial | | Construction | | Land | | Consumer | | Commercial | | Unallocated | | Three months ended 12/31/14 | | | | | | | | |
family | real estate | -1 | business | | | | | | | | |
| (In thousands) | | | | | | | | |
Allowance for loan losses: | | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning balance | $ | 1,281 | | | $ | 83 | | | $ | 379 | | | $ | 300 | | | $ | 75 | | | $ | 568 | | | $ | 1,226 | | | $ | 82 | | | $ | 3,994 | | | | | | | | | |
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Provision (benefit) for loan losses | 114 | | | (19 | ) | | (35 | ) | | 12 | | | 19 | | | (19 | ) | | (55 | ) | | (17 | ) | | — | | | | | | | | | |
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Charge-offs | (121 | ) | | — | | | — | | | — | | | — | | | (60 | ) | | — | | | — | | | (181 | ) | | | | | | | | |
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Recoveries | 14 | | | — | | | — | | | 109 | | | — | | | 44 | | | 20 | | | — | | | 187 | | | | | | | | | |
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Ending balance | $ | 1,288 | | | $ | 64 | | | $ | 344 | | | $ | 421 | | | $ | 94 | | | $ | 533 | | | $ | 1,191 | | | $ | 65 | | | $ | 4,000 | | | | | | | | | |
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(1) | Consumer loans include home equity, credit cards, auto, and other consumer loans. The only consumer loans with impairment are home equity loans. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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The following table presents the activity in the allowance for loan losses by portfolio segment for the six months ended December 31, 2014: |
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| One-to- four family | | Multi- | | Commercial | | Construction | | Land | | Consumer | | Commercial | | Unallocated | | Six months ended 12/31/14 | | | | | | | | |
family | real estate | -1 | business | | | | | | | | |
| (In thousands) | | | | | | | | |
Allowance for loan losses: | | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning balance | $ | 1,550 | | | $ | 229 | | | $ | 682 | | | $ | 190 | | | $ | 74 | | | $ | 587 | | | $ | 1,231 | | | $ | 81 | | | $ | 4,624 | | | | | | | | | |
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Provision (benefit) for loan losses | (73 | ) | | (5 | ) | | 2 | | | 110 | | | 20 | | | 7 | | | (45 | ) | | (16 | ) | | — | | | | | | | | | |
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Charge-offs | (214 | ) | | (160 | ) | | (340 | ) | | — | | | — | | | (141 | ) | | (88 | ) | | — | | | (943 | ) | | | | | | | | |
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Recoveries | 25 | | | — | | | — | | | 121 | | | — | | | 80 | | | 93 | | | — | | | 319 | | | | | | | | | |
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Ending balance | $ | 1,288 | | | $ | 64 | | | $ | 344 | | | $ | 421 | | | $ | 94 | | | $ | 533 | | | $ | 1,191 | | | $ | 65 | | | $ | 4,000 | | | | | | | | | |
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(1) Consumer loans include home equity, credit cards, auto, and other consumer loans. The only consumer loans with impairment are home equity loans. |
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The following table presents the activity in the allowance for loan losses by portfolio segment for the three months ended December 31, 2013: |
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| One-to- four family | | Multi- | | Commercial | | Construction | | Land | | Consumer | | Commercial | | Unallocated | | Three months ended 12/31/13 | | | | | | | | |
family | real estate | -1 | business | | | | | | | | |
| (In thousands) | | | | | | | | |
Allowance for loan losses: | | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning balance | $ | 1,454 | | | $ | 206 | | | $ | 674 | | | $ | 206 | | | $ | 443 | | | $ | 800 | | | $ | 1,107 | | | $ | 51 | | | $ | 4,941 | | | | | | | | | |
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Provision (benefit) for loan losses | 414 | | | 32 | | | 103 | | | (89 | ) | | (381 | ) | | 99 | | | (157 | ) | | (21 | ) | | — | | | | | | | | | |
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Charge-offs | (474 | ) | | — | | | — | | | — | | | — | | | (234 | ) | | (22 | ) | | — | | | (730 | ) | | | | | | | | |
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Recoveries | 4 | | | — | | | — | | | 10 | | | — | | | 29 | | | 19 | | | — | | | 62 | | | | | | | | | |
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Ending balance | $ | 1,398 | | | $ | 238 | | | $ | 777 | | | $ | 127 | | | $ | 62 | | | $ | 694 | | | $ | 947 | | | $ | 30 | | | $ | 4,273 | | | | | | | | | |
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(1) | Consumer loans include home equity, credit cards, auto, and other consumer loans. The only consumer loans with impairment are home equity loans. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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The following table presents the activity in the allowance for loan losses by portfolio segment for the six months ended December 31, 2013: |
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| One-to- four family | | Multi- | | Commercial | | Construction | | Land | | Consumer | | Commercial | | Unallocated | | Six months ended 12/31/13 | | | | | | | | |
family | real estate | -1 | business | | | | | | | | |
| (In thousands) | | | | | | | | |
Allowance for loan losses: | | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning balance | $ | 1,393 | | | $ | 156 | | | $ | 671 | | | $ | 356 | | | $ | 531 | | | $ | 817 | | | $ | 1,172 | | | $ | 51 | | | $ | 5,147 | | | | | | | | | |
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Provision (benefit) for loan losses | 621 | | | (127 | ) | | 106 | | | (247 | ) | | (469 | ) | | 352 | | | (215 | ) | | (21 | ) | | — | | | | | | | | | |
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Charge-offs | (672 | ) | | — | | | — | | | — | | | — | | | (533 | ) | | (43 | ) | | — | | | (1,248 | ) | | | | | | | | |
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Recoveries | 56 | | | 209 | | | — | | | 18 | | | — | | | 58 | | | 33 | | | — | | | 374 | | | | | | | | | |
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Ending balance | $ | 1,398 | | | $ | 238 | | | $ | 777 | | | $ | 127 | | | $ | 62 | | | $ | 694 | | | $ | 947 | | | $ | 30 | | | $ | 4,273 | | | | | | | | | |
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(1) Consumer loans include home equity, credit cards, auto, and other consumer loans. The only consumer loans with impairment are home equity loans. |
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A loan is considered impaired when the Company has determined that it may be unable to collect payments of principal or interest when due under the terms of the loan. In the process of 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 totality of circumstances surrounding the loans and the borrowers, including payment history and amounts of any payment shortfall, length and reason for delay, and likelihood of return to stable performance. Impairment is measured on a loan by loan basis for all loans in the portfolio except for the smaller groups of homogeneous consumer loans in the portfolio. |
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The following table presents loans individually evaluated for impairment by class of loans as of December 31, 2014: |
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| Recorded Investments | | Unpaid Principal Balance | | Related Allowance | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (In thousands) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
With no allowance recorded | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
One-to-four family | $ | 2,580 | | | $ | 3,027 | | | $ | — | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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Multi-family | 373 | | | 373 | | | — | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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Land | 233 | | | 247 | | | — | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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Home equity | 65 | | | 67 | | | — | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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Commercial business | 186 | | | 248 | | | — | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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With an allowance recorded | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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One-to-four family | $ | 8,301 | | | $ | 8,311 | | | $ | 712 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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Land | 484 | | | 484 | | | 34 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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Home equity | 293 | | | 296 | | | 70 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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Commercial business | 157 | | | 157 | | | 2 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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Total | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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One-to-four family | $ | 10,881 | | | $ | 11,338 | | | $ | 712 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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Multi-family | 373 | | | 373 | | | — | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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Land | 717 | | | 731 | | | 34 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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Home equity | 358 | | | 363 | | | 70 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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Commercial business | 343 | | | 405 | | | 2 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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Total | $ | 12,672 | | | $ | 13,210 | | | $ | 818 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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The following table presents loans individually evaluated for impairment by class of loans as of June 30, 2014: |
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| Recorded Investments | | Unpaid Principal Balance | | Related Allowance | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (In thousands) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
With no allowance recorded | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
One-to-four family | $ | 2,213 | | | $ | 2,653 | | | $ | — | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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Commercial real estate | 219 | | | 219 | | | — | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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Land | 307 | | | 321 | | | — | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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Home equity | 145 | | | 147 | | | — | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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Commercial business | 64 | | | 126 | | | — | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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With an allowance recorded | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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One-to-four family | $ | 8,475 | | | $ | 8,486 | | | $ | 780 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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Multi-family | 158 | | | 158 | | | 158 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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Commercial real estate | 1,850 | | | 1,850 | | | 340 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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Land | 508 | | | 508 | | | 28 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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Home equity | 223 | | | 223 | | | 43 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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Commercial business | 393 | | | 393 | | | 90 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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Total | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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One-to-four family | $ | 10,688 | | | $ | 11,139 | | | $ | 780 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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Multi-family | 158 | | | 158 | | | 158 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial real estate | 2,069 | | | 2,069 | | | 340 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Land | 815 | | | 829 | | | 28 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Home equity | 368 | | | 370 | | | 43 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial business | 457 | | | 519 | | | 90 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | $ | 14,555 | | | $ | 15,084 | | | $ | 1,439 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
|
The following table presents the average recorded investment in loans individually evaluated for impairment and the interest income recognized for the three and six months ended December 31, 2014: |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended December 31, 2014 | | Six Months Ended December 31, 2014 | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Average Recorded Investment | | Interest Income | | Average Recorded Investment | | Interest Income | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Recognized | Recognized | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (In thousands) | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
With no allowance recorded | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
One-to-four family | $ | 3,037 | | | $ | 16 | | | $ | 2,620 | | | $ | 49 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Multi-family | 187 | | | 2 | | | 373 | | | 5 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial real estate | — | | | — | | | 110 | | | — | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Land | 291 | | | 2 | | | 277 | | | 6 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Home equity | 68 | | | 1 | | | 106 | | | 2 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial business | 187 | | | 2 | | | 156 | | | 6 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
With an allowance recorded | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
One-to-four family | $ | 8,117 | | | $ | 57 | | | $ | 8,393 | | | $ | 171 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Multi-family | — | | | — | | | 79 | | | — | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial real estate | — | | | — | | | 925 | | | — | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Land | 451 | | | 4 | | | 496 | | | 13 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Home equity | 297 | | | 2 | | | 260 | | | 6 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial business | 157 | | | 1 | | | 275 | | | 4 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
One-to-four family | $ | 11,154 | | | $ | 73 | | | $ | 11,013 | | | $ | 220 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Multi-family | 187 | | | 2 | | | 452 | | | 5 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial real estate | — | | | — | | | 1,035 | | | — | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Land | 742 | | | 6 | | | 773 | | | 19 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Home equity | 365 | | | 3 | | | 366 | | | 8 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial business | 344 | | | 3 | | | 431 | | | 10 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | $ | 12,792 | | | $ | 87 | | | $ | 14,070 | | | $ | 262 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
|
The following table presents the average recorded investment in loans individually evaluated for impairment and the interest income recognized for the three and six months ended December 31, 2013: |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended December 31, 2013 | | Six Months Ended December 31, 2013 | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Average Recorded Investment | | Interest Income | | Average Recorded Investment | | Interest Income | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Recognized | Recognized | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (In thousands) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
With no allowance recorded | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
One-to-four family | $ | 4,992 | | | $ | 37 | | | $ | 4,862 | | | $ | 74 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Multi-family | 2,336 | | | 31 | | | 2,336 | | | 61 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial real estate | 1,948 | | | 10 | | | 1,957 | | | 20 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Land | 359 | | | 6 | | | 437 | | | 11 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Home equity | 199 | | | 2 | | | 207 | | | 3 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial business | 251 | | | 3 | | | 723 | | | 5 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
With an allowance recorded | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
One-to-four family | $ | 8,465 | | | $ | 92 | | | $ | 8,276 | | | $ | 184 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Multi-family | 79 | | | — | | | 79 | | | — | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial real estate | 600 | | | 14 | | | 600 | | | 28 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Land | 773 | | | 7 | | | 773 | | | 13 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Home equity | 437 | | | 7 | | | 503 | | | 14 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial business | 140 | | | 1 | | | 144 | | | 2 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
One-to-four family | $ | 13,457 | | | $ | 129 | | | $ | 13,138 | | | $ | 258 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Multi-family | 2,415 | | | 31 | | | 2,415 | | | 61 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial real estate | 2,548 | | | 24 | | | 2,557 | | | 48 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Land | 1,132 | | | 13 | | | 1,210 | | | 24 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Home equity | 636 | | | 9 | | | 710 | | | 17 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial business | 391 | | | 4 | | | 867 | | | 7 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | $ | 20,579 | | | $ | 210 | | | $ | 20,897 | | | $ | 415 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
|
|
|
|
The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of December 31, 2014: |
| | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| One-to-four | | Multi- | | Commercial | | Construction | | Land | | Consumer(1) | | Commercial | | Unallocated | | Total | | | | | | | | |
family | family | real estate | business | | | | | | | | |
| (In thousands) | | | | | | | | |
Allowance for loan losses: | | | | | | | | | | | | | | | | | | | | | | | | | |
Ending balance | $ | 1,288 | | | $ | 64 | | | $ | 344 | | | $ | 421 | | | $ | 94 | | | $ | 533 | | | $ | 1,191 | | | $ | 65 | | | $ | 4,000 | | | | | | | | | |
| | | | | | | |
Ending balance: individually evaluated for impairment | 712 | | | — | | | — | | | — | | | 34 | | | 70 | | | 2 | | | — | | | 818 | | | | | | | | | |
| | | | | | | |
Ending balance: collectively evaluated for impairment | $ | 576 | | | $ | 64 | | | $ | 344 | | | $ | 421 | | | $ | 60 | | | $ | 463 | | | $ | 1,189 | | | $ | 65 | | | $ | 3,182 | | | | | | | | | |
| | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Loans receivable: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
Ending balance | $ | 60,013 | | | $ | 43,978 | | | $ | 106,482 | | | $ | 24,250 | | | $ | 4,154 | | | $ | 25,547 | | | $ | 17,214 | | | $ | — | | | $ | 281,638 | | | | | | | | | |
| | | | | | | |
Ending balance: individually evaluated for impairment | 10,881 | | | 373 | | | — | | | — | | | 717 | | | 358 | | | 343 | | | — | | | 12,672 | | | | | | | | | |
| | | | | | | |
Ending balance: collectively evaluated for impairment | $ | 49,132 | | | $ | 43,605 | | | $ | 106,482 | | | $ | 24,250 | | | $ | 3,437 | | | $ | 25,189 | | | $ | 16,871 | | | $ | — | | | $ | 268,966 | | | | | | | | | |
| | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
(1) | Consumer loans include home equity, credit cards, auto and other consumer loans. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of June 30, 2014: |
| | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| One-to-four | | Multi- | | Commercial | | Construction | | Land | | Consumer(1) | | Commercial | | Unallocated | | Total | | | | | | | | |
family | family | real estate | business | | | | | | | | |
| (In thousands) | | | | | | | | |
Allowance for loan losses: | | | | | | | | | | | | | | | | | | | | | | | | | |
Ending balance | $ | 1,550 | | | $ | 229 | | | $ | 682 | | | $ | 190 | | | $ | 74 | | | $ | 587 | | | $ | 1,231 | | | $ | 81 | | | $ | 4,624 | | | | | | | | | |
| | | | | | | |
Ending balance: individually evaluated for impairment | 780 | | | 158 | | | 340 | | | — | | | 28 | | | 43 | | | 90 | | | — | | | 1,439 | | | | | | | | | |
| | | | | | | |
Ending balance: collectively evaluated for impairment | $ | 770 | | | $ | 71 | | | $ | 342 | | | $ | 190 | | | $ | 46 | | | $ | 544 | | | $ | 1,141 | | | $ | 81 | | | $ | 3,185 | | | | | | | | | |
| | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Loans receivable: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
Ending balance | $ | 63,009 | | | $ | 47,507 | | | $ | 107,828 | | | $ | 19,690 | | | $ | 4,126 | | | $ | 28,353 | | | $ | 16,737 | | | $ | — | | | $ | 287,250 | | | | | | | | | |
| | | | | | | |
Ending balance: individually evaluated for impairment | 10,688 | | | 158 | | | 2,069 | | | — | | | 815 | | | 368 | | | 457 | | | — | | | 14,555 | | | | | | | | | |
| | | | | | | |
Ending balance: collectively evaluated for impairment | $ | 52,321 | | | $ | 47,349 | | | $ | 105,759 | | | $ | 19,690 | | | $ | 3,311 | | | $ | 27,985 | | | $ | 16,280 | | | $ | — | | | $ | 272,695 | | | | | | | | | |
| | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
(1) | Consumer loans include home equity, credit cards, auto, and other consumer loans. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Nonaccrual and Past Due Loans. Loans are considered past due if the required principal and interest payments have not been received as of the date such payments were due. Loans are placed on nonaccrual when, in management's opinion, the borrower may be unable to meet payment of obligations as they become due, as well as when required by regulatory provisions. |
|
The following table presents the recorded investment in nonaccrual and loans past due 90 days still accruing interest by type of loans as of the dates indicated: |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 31-Dec-14 | | 30-Jun-14 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (In thousands) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
One-to-four family | $ | 2,124 | | | $ | 2,101 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Multi-family | 374 | | | 158 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial | — | | | 2,070 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Land | 70 | | | 150 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Home equity | 75 | | | — | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Credit cards | 5 | | | — | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Other consumer | 32 | | | — | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial business | 122 | | | 235 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | $ | 2,802 | | | $ | 4,714 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
|
|
The following table presents past due loans, net of partial loan charge-offs, by class, as of December 31, 2014: |
|
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 30-59 Days | | 60-89 Days | | 90 Days Or | | Total Past | | Current | | Total Loans | | | | | | | | | | | | | | | | | | | | |
Past Due | Past Due | More Past Due (1) | Due | | | | | | | | | | | | | | | | | | | | |
| (In thousands) | | | | | | | | | | | | | | | | | | | | |
One-to-four family | $ | 1,967 | | | $ | 346 | | | $ | 2,124 | | | $ | 4,437 | | | $ | 55,576 | | | $ | 60,013 | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Multi-family | — | | | — | | | 374 | | | 374 | | | 43,604 | | | 43,978 | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Commercial real estate | — | | | — | | | — | | | — | | | 106,482 | | | 106,482 | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Construction | — | | | — | | | — | | | — | | | 24,250 | | | 24,250 | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Land | — | | | — | | | 70 | | | 70 | | | 4,084 | | | 4,154 | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Home equity | 230 | | | 15 | | | 75 | | | 320 | | | 18,651 | | | 18,971 | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Credit cards | 5 | | | 4 | | | 5 | | | 14 | | | 3,312 | | | 3,326 | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Automobile | 21 | | | — | | | — | | | 21 | | | 873 | | | 894 | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Other consumer | 45 | | | — | | | 32 | | | 77 | | | 2,279 | | | 2,356 | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Commercial business | 181 | | | — | | | 122 | | | 303 | | | 16,911 | | | 17,214 | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Total | $ | 2,449 | | | $ | 365 | | | $ | 2,802 | | | $ | 5,616 | | | $ | 276,022 | | | $ | 281,638 | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (1) Includes loans on nonaccrual status and loans that may be less than 90 days past due. At December 31, 2014, there were $5 in loans 90 days past due and still accruing interest. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
The following table presents past due loans, net of partial loan charge-offs, by class as of June 30, 2014: |
|
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 30-59 Days | | 60-89 Days | | 90 Days Or | | Total Past | | Current | | Total | | | | | | | | | | | | | | | | | | | | |
Past Due | Past Due | More Past Due (1) | Due | Loans | | | | | | | | | | | | | | | | | | | | |
| (In thousands) | | | | | | | | | | | | | | | | | | | | |
One-to-four family | $ | 1,384 | | | $ | 819 | | | $ | 2,101 | | | $ | 4,304 | | | $ | 58,705 | | | $ | 63,009 | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Multi-family | 32 | | | — | | | 158 | | | 190 | | | 47,317 | | | 47,507 | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Commercial real estate | — | | | — | | | 2,070 | | | 2,070 | | | 105,758 | | | 107,828 | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Construction | — | | | — | | | — | | | — | | | 19,690 | | | 19,690 | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Land | — | | | — | | | 150 | | | 150 | | | 3,976 | | | 4,126 | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Home equity | 239 | | | 108 | | | — | | | 347 | | | 20,547 | | | 20,894 | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Credit cards | 32 | | | 27 | | | — | | | 59 | | | 3,489 | | | 3,548 | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Automobile | 14 | | | — | | | — | | | 14 | | | 1,059 | | | 1,073 | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Other consumer | 43 | | | — | | | — | | | 43 | | | 2,795 | | | 2,838 | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Commercial business | 64 | | | — | | | 235 | | | 299 | | | 16,438 | | | 16,737 | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Total | $ | 1,808 | | | $ | 954 | | | $ | 4,714 | | | $ | 7,476 | | | $ | 279,774 | | | $ | 287,250 | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
(1) Includes loans on nonaccrual status and loans that may be less than 90 days past due. At June 30, 2014, there were no loans 90 days past due and still accruing interest. |
|
Credit Quality Indicators. We utilize a ten-point risk rating system and assign 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 7 are considered to be “pass” credits. Pass credits can be assets where there is virtually no credit risk, such as cash secured loans with funds on deposit with the Bank. Pass credits also include credits that are on our watch and special mention lists, 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. A seasoned loan with a Debt Service Coverage Ratio ("DSCR") of greater than 1.00 is the minimum acceptable level for a " Pass Credit". Particular attention is paid to the coverage trend analysis as any loan with a declining DSCR trend may warrant a higher risk grade even if the current coverage is at or above the 1.00 threshold. |
|
Credits classified as Watch are risk rated 6 and possess weaknesses that deserve management's close attention. These assets do not expose the Bank to sufficient risk to warrant adverse classification in the substandard, doubtful or loss categories. We use this rating when a material documentation deficiency exists but correction is anticipated within an acceptable time frame. |
|
A loan classified as Watch may have the following characteristics: |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
• | Acceptable asset quality, but requiring increased monitoring. Strained liquidity and less than anticipated performance. The loan may be fully leveraged. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
• | Apparent management weakness, perhaps demonstrated by an irregular flow of adequate and/or timely performance information required to support the credit. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
• | The borrower has a plausible plan to correct problem(s) in the near future that is devoid of material uncertainties. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
• | Lacks reserve capacity, so the risk rating will improve or decline in relatively short time (results of corrective actions should be apparent within six months or less). | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Credits classified as Special Mention are risk rated 7. These credits have potential weaknesses that deserve management's close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the asset. Special Mention assets are not adversely classified and do not expose the Bank to sufficient risk to warrant adverse classification. |
|
A loan classified as Special Mention may have the following characteristics: |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
• | Performance is poor or significantly less than expected. A debt service deficiency either exists or cannot be ruled out. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
• | Generally an undesirable business credit. Assets in this category are protected, but are potentially weak. These assets constitute an undue and unwarranted credit risk, but not to the point of justifying a classification of Substandard. Special Mention assets have potential weaknesses which may, if not checked or corrected, weaken the asset or inadequately protect the Bank's credit position at some future date. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
• | Assets which might be detailed in this category include credits that the lending officer may be unable to supervise properly because of lack of expertise, an inadequate loan agreement, the condition of and control over collateral, failure to obtain proper documentation, or any other deviations from prudent lending practices. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
• | An adverse trend in the borrower's operations or an imbalanced position in the balance sheet which does not jeopardize liquidation may best be handled by this classification. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
• | A Special Mention classification should not be used as a compromise between a pass and substandard rating. Assets in which actual, not potential, weaknesses are evident and significant, and should be considered for more serious criticism. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
A loan classified as Substandard is risk rated 8. They are characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected. 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. |
|
A loan classified as Substandard may have the following characteristics: |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
• | Unacceptable business credit. The asset is inadequately protected by the current sound worth and paying capacity of the borrower or of the collateral pledged, if any. Assets so classified must have a well defined weakness or weaknesses that jeopardize the liquidation of the debt. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
• | Though no loss is envisioned, the outlook is sufficiently uncertain to preclude ruling out the possibility. Some liquidation of assets will likely be necessary as a corrective measure. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
• | Assets in this category may demonstrate performance problems such as debt servicing deficiencies with no immediate relief, including having a DSCR of less than 1.00. Borrowers have an inability to adjust to prolonged and unfavorable industry or economic trends. Management's character and/or effectiveness have become suspect. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
A loan classified as Doubtful is risk rated 9 and has all the inherent weaknesses as those classified Substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values highly questionable is improbable. |
A loan classified as Doubtful is risk rated 9 and has the following characteristics: |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
• | The possibility of loss is extremely high, but because of certain important and reasonable specific pending factors which may work to the advantage and strengthening of the asset, its classification as an estimated loss is deferred until its more exact status may be determined. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
• | Pending factors include proposed merger, acquisition, or liquidation procedures, capital injection, perfecting liens on additional collateral and refinancing plans. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
A loan risk rated 10 is a loan for which a total loss is expected. |
A loan classified as a Loss has the following characteristics: |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
• | An uncollectible asset or one of such little value that it does not warrant classification as an active, earning asset. Such an asset may, however, have recovery or salvageable value, but not to the point of deferring full write off, even though some recovery may occur in the future. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
• | The Bank will charge off such assets as a loss during the accounting period in which they were identified. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
• | Loan to be eliminated from the active loan reporting system via charge off. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
The following table presents the internally assigned grade as of December 31, 2014, by class of loans: |
|
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| One-to- four | | Multi- | | Commercial | | Construction | | Land | | Home equity | | Credit cards | | Automobile | | Other | | Commercial business | | Total |
family | family | real estate | consumer |
| (In thousands) |
Grade: | | | | | | | | | | | | | | | | | | | | | |
Pass | $ | 46,612 | | | $ | 43,605 | | | $ | 102,404 | | | $ | 24,250 | | | $ | 3,437 | | | $ | 17,256 | | | $ | 3,312 | | | $ | 811 | | | $ | 2,221 | | | $ | 13,734 | | | $ | 257,642 | |
|
Watch | 5,171 | | | — | | | 440 | | | — | | | — | | | 1,204 | | | 9 | | | 83 | | | 103 | | | 1,099 | | | 8,109 | |
|
Special Mention | 4,641 | | | — | | | 3,638 | | | — | | | 233 | | | 386 | | | — | | | — | | | — | | | 1,663 | | | 10,561 | |
|
Substandard | 3,589 | | | 373 | | | — | | | — | | | 484 | | | 125 | | | 5 | | | — | | | 32 | | | 718 | | | 5,326 | |
|
Doubtful | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | |
|
Total | $ | 60,013 | | | $ | 43,978 | | | $ | 106,482 | | | $ | 24,250 | | | $ | 4,154 | | | $ | 18,971 | | | $ | 3,326 | | | $ | 894 | | | $ | 2,356 | | | $ | 17,214 | | | $ | 281,638 | |
|
|
The following table presents the credit risk profile based on payment activity as of December 31, 2014, by class of loans: |
|
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| One-to- four | | Multi-family | | Commercial | | Construction | | Land | | Home equity | | Credit cards | | Automobile | | Other | | Commercial business | | Total |
family | real estate | consumer |
| (In thousands) |
Performing | $ | 57,889 | | | $ | 43,604 | | | $ | 106,482 | | | $ | 24,250 | | | $ | 4,084 | | | $ | 18,896 | | | $ | 3,321 | | | $ | 894 | | | $ | 2,324 | | | $ | 17,092 | | | $ | 278,836 | |
|
Nonperforming (1) | 2,124 | | | 374 | | | — | | | — | | | 70 | | | 75 | | | 5 | | | — | | | 32 | | | 122 | | | 2,802 | |
|
Total | $ | 60,013 | | | $ | 43,978 | | | $ | 106,482 | | | $ | 24,250 | | | $ | 4,154 | | | $ | 18,971 | | | $ | 3,326 | | | $ | 894 | | | $ | 2,356 | | | $ | 17,214 | | | $ | 281,638 | |
|
(1) Loans that are more than 90 days past due and still accruing interest and nonaccrual loans are considered nonperforming. At December 31, 2014, there were $5 in loans 90 days past due and still accruing interest. |
|
The following table presents the internally assigned grade as of June 30, 2014, by class of loans: |
|
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| One-to- four family | | Multi-family | | Commercial | | Construction | | Land | | Home equity | | Credit cards | | Automobile | | Other | | Commercial business | | Total |
real estate | consumer |
| (In thousands) |
Grade: | | | | | | | | | | | | | | | | | | | | | |
Pass | $ | 49,504 | | | $ | 47,317 | | | $ | 102,216 | | | $ | 19,690 | | | $ | 3,248 | | | $ | 18,925 | | | $ | 3,489 | | | $ | 976 | | | $ | 2,732 | | | $ | 13,040 | | | $ | 261,137 | |
|
Watch | 4,505 | | | 32 | | | 449 | | | — | | | — | | | 1,434 | | | 59 | | | 97 | | | 106 | | | 1,005 | | | 7,687 | |
|
Special Mention | 6,171 | | | — | | | 3,093 | | | — | | | 307 | | | 406 | | | — | | | — | | | — | | | 1,841 | | | 11,818 | |
|
Substandard | 2,829 | | | 158 | | | 2,070 | | | — | | | 571 | | | 129 | | | — | | | — | | | — | | | 851 | | | 6,608 | |
|
Doubtful | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | |
|
Total | $ | 63,009 | | | $ | 47,507 | | | $ | 107,828 | | | $ | 19,690 | | | $ | 4,126 | | | $ | 20,894 | | | $ | 3,548 | | | $ | 1,073 | | | $ | 2,838 | | | $ | 16,737 | | | $ | 287,250 | |
|
|
The following table presents the credit risk profile based on payment activity as of June 30, 2014, by class of loans: |
|
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| One-to- four | | Multi-family | | Commercial | | Construction | | Land | | Home equity | | Credit cards | | Automobile | | Other | | Commercial business | | Total |
family | real estate | consumer |
| (In thousands) |
Performing | $ | 60,908 | | | $ | 47,349 | | | $ | 105,758 | | | $ | 19,690 | | | $ | 3,976 | | | $ | 20,894 | | | $ | 3,548 | | | $ | 1,073 | | | $ | 2,838 | | | $ | 16,502 | | | $ | 282,536 | |
|
Nonperforming (1) | 2,101 | | | 158 | | | 2,070 | | | — | | | 150 | | | — | | | — | | | — | | | — | | | 235 | | | 4,714 | |
|
Total | $ | 63,009 | | | $ | 47,507 | | | $ | 107,828 | | | $ | 19,690 | | | $ | 4,126 | | | $ | 20,894 | | | $ | 3,548 | | | $ | 1,073 | | | $ | 2,838 | | | $ | 16,737 | | | $ | 287,250 | |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
(1) | Loans that are more than 90 days past due and still accruing interest and nonaccrual loans are considered nonperforming. At June 30, 2014, there were no loans 90 days past due and still accruing interest. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Troubled Debt Restructures. At December 31, 2014 and June 30, 2014, troubled debt restructured loans (“TDRs”), included in impaired loans above, totaled $10.8 million with $1.3 million in nonaccrual and $11.3 million with $1.4 million in nonaccrual, respectively. Restructured loans are an option that the Bank uses to minimize risk of loss and are a concession granted to a borrower experiencing financial difficulties that it would not otherwise consider. The modifications have included items such as lowering the interest rate on the loan for a period of time and extending the maturity date of the loan. These modifications are made only when there is a reasonable and attainable workout plan that has been agreed to by the borrower and is in the Bank's best interest. At December 31, 2014, there were no commitments to lend additional funds to borrowers whose loans have been modified in a TDR. |
The following table presents TDRs by accrual versus nonaccrual status and by loan class as of December 31, 2014: |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| December 31, 2014 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Accrual | | Nonaccrual | | Total | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Status | Status | Modifications | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (In thousands) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
One-to-four family | $ | 8,306 | | | $ | 1,236 | | | $ | 9,542 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Land | 647 | | | — | | | 647 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Home equity | 283 | | | 73 | | | 356 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial business | 221 | | | — | | | 221 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | $ | 9,457 | | | $ | 1,309 | | | $ | 10,766 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
|
The following table presents TDRs by accrual versus nonaccrual status and by loan class as of June 30, 2014: |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| June 30, 2014 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Accrual | | Nonaccrual | | Total | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Status | Status | Modifications | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (In thousands) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
One-to-four family | $ | 8,590 | | | $ | 1,355 | | | $ | 9,945 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Land | 727 | | | — | | | 727 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Home equity | 367 | | | — | | | 367 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial business | 222 | | | — | | | 222 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | $ | 9,906 | | | $ | 1,355 | | | $ | 11,261 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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The following tables present TDRs and their recorded investment prior to the modification and after the modification for TDR transactions that originated during the three and six months ended December 31, 2014 and 2013: |
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| Three Months Ended December 31, 2014 | | Six Months Ended December 31, 2014 | | | | | | | | | | | | | | | | | | | | | | |
| Number of | | Pre-TDR Recorded Investment | | Post-TDR Recorded Investment | | Number of | | Pre-TDR Recorded Investment | | Post-TDR Recorded Investment | | | | | | | | | | | | | | | | | | | | | | |
Contracts | Contracts | | | | | | | | | | | | | | | | | | | | | | |
| (Dollars in thousands) | | | | | | | | | | | | | | | | | | | | | | |
One-to-four family | — | | | $ | — | | | $ | — | | | 1 | | | $ | 197 | | | $ | 196 | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Total | — | | | $ | — | | | $ | — | | | 1 | | | $ | 197 | | | $ | 196 | | | | | | | | | | | | | | | | | | | | | | | |
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| Three Months Ended December 31, 2013 | | Six Months Ended December 31, 2013 | | | | | | | | | | | | | | | | | | | | | | |
| Number of | | Pre-TDR Recorded Investment | | Post-TDR Recorded Investment | | Number of | | Pre-TDR Recorded Investment | | Post-TDR Recorded Investment | | | | | | | | | | | | | | | | | | | | | | |
Contracts | Contracts | | | | | | | | | | | | | | | | | | | | | | |
| (Dollars in thousands) | | | | | | | | | | | | | | | | | | | | | | |
One-to-four family | 1 | | | $ | 223 | | | $ | 226 | | | 4 | | | $ | 704 | | | $ | 725 | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Home equity | 1 | | | 75 | | | 69 | | | 2 | | | 75 | | | 69 | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Commercial business | 1 | | | 145 | | | 160 | | | 1 | | | 145 | | | 160 | | | | | | | | | | | | | | | | | | | | | | | |
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Total | 3 | | | $ | 443 | | | $ | 455 | | | 7 | | | $ | 924 | | | $ | 954 | | | | | | | | | | | | | | | | | | | | | | | |
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For the three and six months ended December 31, 2014, there were no TDRs modified within the previous 12 months for which there was a payment default and the total of payment defaults within 12 months of their restructure. |
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The following table presents TDRs modified within the previous 12 months for which there was a payment default and the total of payment defaults within 12 months of their restructure for the dates indicated: |
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| | | Three Months Ended December 31, 2013 | | | | Six Months Ended December 31, 2013 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Number of Contracts | | | Number of Contracts | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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| (Dollars in thousands) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
One-to-four family | 1 | | | $ | 117 | | | 1 | | | $ | 117 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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Home equity | — | | | — | | | 1 | | | 80 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | 1 | | | $ | 117 | | | 2 | | | $ | 197 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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