Loans | 9 Months Ended |
Sep. 30, 2014 |
Receivables [Abstract] | ' |
Loans | ' |
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(3) Loans |
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The loan portfolio segments and classes are as follows (in thousands): |
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| | September 30, | | | December 31, | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 2014 | | | 2013 | | | | | | | | | | | | | | | | | | | | | | | | | |
Real estate mortgage loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
One-to four-family residential | | $ | 55,858 | | | | 59,976 | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial | | | 22,740 | | | | 23,900 | | | | | | | | | | | | | | | | | | | | | | | | | |
Multi-family | | | 9,329 | | | | 3,363 | | | | | | | | | | | | | | | | | | | | | | | | | |
Land and construction | | | 7,518 | | | | 6,514 | | | | | | | | | | | | | | | | | | | | | | | | | |
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Total real estate mortgage loans | | | 95,445 | | | | 93,753 | | | | | | | | | | | | | | | | | | | | | | | | | |
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Commercial loans | | | 16,340 | | | | 17,358 | | | | | | | | | | | | | | | | | | | | | | | | | |
Consumer loans | | | 1,312 | | | | 2,277 | | | | | | | | | | | | | | | | | | | | | | | | | |
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Total loans | | | 113,097 | | | | 113,388 | | | | | | | | | | | | | | | | | | | | | | | | | |
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Deduct: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Deferred loan fees, net | | | (136 | ) | | | (147 | ) | | | | | | | | | | | | | | | | | | | | | | | | |
Allowance for loan losses | | | (1,796 | ) | | | (1,718 | ) | | | | | | | | | | | | | | | | | | | | | | | | |
Undisbursed loan proceeds | | | (229 | ) | | | (260 | ) | | | | | | | | | | | | | | | | | | | | | | | | |
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Loans, net | | $ | 110,936 | | | | 111,263 | | | | | | | | | | | | | | | | | | | | | | | | | |
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The Company has divided the loan portfolio into three portfolio segments, each with different risk characteristics and methodologies for assessing risk. All loans are underwritten in accordance with policies set forth and approved by the Company’s board of directors. The portfolio segments identified by the Company are as follows: |
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Real Estate Mortgage Loans. Real estate mortgage loans are typically segmented into four classes: one-to four-family residential, commercial, multi-family and land and construction. |
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One-to four-family residential real estate loans are underwritten based on repayment capacity and source, value of the underlying property, credit history and stability. |
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Commercial real estate loans are secured by the subject property. Underwriting standards include, among other factors, loan to value limits, cash flow coverage and general creditworthiness of the obligors. |
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Multi-family real estate loans follow the same underwriting criteria as commercial real estate loans. These loans are generally considered to have more credit risk than traditional one-to four-family residential loans because these loans tend to involve larger loan balances and their repayment is typically dependent upon the successful operation and management of the underlying real estate. |
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Land and construction loans are to finance the construction of owner-occupied and lease properties. These loans are categorized as construction loans during the construction period, later converting to commercial or one-to four-family residential real estate loans after the construction is complete and amortization of the loan begins. Real estate development and construction loans are approved based on an analysis of the borrower and guarantor, the viability of the project and on an acceptable percentage of the appraised value of the property securing the loan. Real estate development and construction loan funds are disbursed periodically based on the percentage of construction completed. The Company carefully monitors these loans with on-site inspections and requires the receipt of lien waivers on funds advanced. Development and construction loans are typically secured by the properties under development or construction, and personal guarantees are typically obtained. Further, to assure that reliance is not placed solely on the value of the underlying property, the Company considers the market conditions and feasibility of proposed projects, the financial condition and reputation of the borrower and guarantors, the amount of the borrower’s equity in the project, independent appraisals, cost estimates and pre-construction sale information. The Company also makes loans on occasion for the purchase of land for future development by the borrower. Land loans are extended for the future development for either commercial or residential use by the borrower. The Company carefully analyzes the intended use of the property and the viability thereof. |
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Commercial Loans. Commercial loans are primarily underwritten on the basis of the borrowers’ ability to service such debt from income. The cash flows of borrowers, however, may not be as expected and the collateral securing these loans may fluctuate in value. As a general practice, the Company takes as collateral a security interest in any available real estate, equipment, or other chattel, although loans may also be made on an unsecured basis. Collateralized working capital loans typically are secured by short-term assets whereas long-term loans are primarily secured by long-term assets. |
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Consumer Loans. Consumer loans are extended for various purposes, including purchases of automobiles, recreational vehicles, and boats. The Company also offers lines of credit, personal loans, and deposit account collateralized loans. Repayment of these loans is primarily dependent on the personal income of the borrowers, which can be impacted by economic conditions in their market areas such as unemployment levels. Loans to consumers are extended after a credit evaluation, including the creditworthiness of the borrower(s), the purpose of the credit, and the secondary source of repayment. Consumer loans are made at fixed interest rates and may be made on terms of up to five years. Risk is mitigated by the fact that the loans are of smaller individual amounts. |
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An analysis of the change in the allowance for loan losses follows (in thousands): |
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| | Real | | | Commercial | | | Consumer | | | Unallocated | | | Total | | | | | | | | | | | | | |
Estate | Loans | Loans | | | | | | | | | | | | |
Mortgage | | | | | | | | | | | | | | |
Loans | | | | | | | | | | | | | | |
Three Months Ended September 30, 2014: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning balance | | $ | 1,517 | | | | 245 | | | | 9 | | | | — | | | | 1,771 | | | | | | | | | | | | | |
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(Credit) provision for loan losses | | | (6 | ) | | | 24 | | | | 2 | | | | — | | | | 20 | | | | | | | | | | | | | |
Charge-offs | | | (14 | ) | | | — | | | | (4 | ) | | | — | | | | (18 | ) | | | | | | | | | | | | |
Recoveries | | | 3 | | | | 19 | | | | 1 | | | | — | | | | 23 | | | | | | | | | | | | | |
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Ending balance | | $ | 1,500 | | | | 288 | | | | 8 | | | | — | | | | 1,796 | | | | | | | | | | | | | |
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Three Months Ended September 30, 2013: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning balance | | $ | 1,484 | | | | 160 | | | | 12 | | | | 252 | | | | 1,908 | | | | | | | | | | | | | |
Provision (credit) for loan losses | | | 141 | | | | 28 | | | | (1 | ) | | | (168 | ) | | | — | | | | | | | | | | | | | |
Charge-offs | | | (212 | ) | | | — | | | | — | | | | — | | | | (212 | ) | | | | | | | | | | | | |
Recoveries | | | 23 | | | | 6 | | | | — | | | | — | | | | 29 | | | | | | | | | | | | | |
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Ending balance | | $ | 1,436 | | | | 194 | | | | 11 | | | | 84 | | | | 1,725 | | | | | | | | | | | | | |
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Nine Months Ended September 30, 2014: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning balance | | | 1,417 | | | | 208 | | | | 10 | | | | 83 | | | | 1,718 | | | | | | | | | | | | | |
Provision (credit) for loan losses | | | 84 | | | | 661 | | | | (2 | ) | | | (83 | ) | | | 660 | | | | | | | | | | | | | |
Charge-offs | | | (20 | ) | | | (626 | ) | | | (9 | ) | | | — | | | | (655 | ) | | | | | | | | | | | | |
Recoveries | | | 19 | | | | 45 | | | | 9 | | | | — | | | | 73 | | | | | | | | | | | | | |
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Ending balance | | $ | 1,500 | | | | 288 | | | | 8 | | | | — | | | | 1,796 | | | | | | | | | | | | | |
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Nine Months Ended September 30, 2013: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning balance | | | 1,520 | | | | 189 | | | | 13 | | | | 554 | | | | 2,276 | | | | | | | | | | | | | |
Provision (credit) for loan losses | | | 493 | | | | (21 | ) | | | (2 | ) | | | (470 | ) | | | — | | | | | | | | | | | | | |
Charge-offs | | | (664 | ) | | | — | | | | (2 | ) | | | — | | | | (666 | ) | | | | | | | | | | | | |
Recoveries | | | 87 | | | | 26 | | | | 2 | | | | — | | | | 115 | | | | | | | | | | | | | |
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Ending balance | | $ | 1,436 | | | | 194 | | | | 11 | | | | 84 | | | | 1,725 | | | | | | | | | | | | | |
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(3) Loans, Continued |
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| | Real | | | Commercial | | | Consumer | | | Unallocated | | | Total | | | | | | | | | | | | | |
Estate | Loans | Loans | | | | | | | | | | | | |
Mortgage | | | | | | | | | | | | | | |
Loans | | | | | | | | | | | | | | |
At September 30, 2014: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Individually evaluated for impairment: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Recorded investment | | $ | 6,803 | | | | 785 | | | | — | | | | — | | | | 7,588 | | | | | | | | | | | | | |
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Balance in allowance for loan losses | | $ | 354 | | | | 9 | | | | — | | | | — | | | | 363 | | | | | | | | | | | | | |
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Collectively evaluated for impairment: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Recorded investment | | $ | 88,642 | | | | 15,555 | | | | 1,312 | | | | — | | | | 105,509 | | | | | | | | | | | | | |
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Balance in allowance for loan losses | | $ | 1,146 | | | | 279 | | | | 8 | | | | — | | | | 1,433 | | | | | | | | | | | | | |
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At December 31, 2013: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Individually evaluated for impairment: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Recorded investment | | $ | 7,035 | | | | 703 | | | | — | | | | — | | | | 7,738 | | | | | | | | | | | | | |
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Balance in allowance for loan losses | | $ | 354 | | | | — | | | | — | | | | — | | | | 354 | | | | | | | | | | | | | |
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Collectively evaluated for impairment: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Recorded investment | | $ | 86,718 | | | | 16,655 | | | | 2,277 | | | | — | | | | 105,650 | | | | | | | | | | | | | |
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Balance in allowance for loan losses | | $ | 1,063 | | | | 208 | | | | 10 | | | | 83 | | | | 1,364 | | | | | | | | | | | | | |
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The following summarizes the loan credit quality (in thousands): |
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| | Real Estate Mortgage Loans | | | | | | | | | | | | | | |
| | One-to | | | Commercial | | | Multi- | | | Land | | | Commercial | | | Consumer | | | Total | | | | | |
Four-Family | Family | and | Loans | Loans | | | | |
Residential | | Construction | | | | | | |
Credit Risk Profile by Internally | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Assigned Grade: | | | | |
At September 30, 2014: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Grade: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Pass | | $ | 53,146 | | | | 19,508 | | | | 9,199 | | | | 7,101 | | | | 15,337 | | | | 1,312 | | | | 105,603 | | | | | |
Special mention | | | 317 | | | | 417 | | | | — | | | | 214 | | | | 95 | | | | — | | | | 1,043 | | | | | |
Substandard | | | 2,395 | | | | 2,815 | | | | 130 | | | | 203 | | | | 908 | | | | — | | | | 6,451 | | | | | |
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Total | | $ | 55,858 | | | | 22,740 | | | | 9,329 | | | | 7,518 | | | | 16,340 | | | | 1,312 | | | | 113,097 | | | | | |
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At December 31, 2013: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Grade: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Pass | | | 56,691 | | | | 20,512 | | | | 3,193 | | | | 6,080 | | | | 15,881 | | | | 2,277 | | | | 104,634 | | | | | |
Special mention | | | 43 | | | | 429 | | | | — | | | | — | | | | 514 | | | | — | | | | 986 | | | | | |
Substandard | | | 3,242 | | | | 2,959 | | | | 170 | | | | 434 | | | | 963 | | | | — | | | | 7,768 | | | | | |
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Total | | $ | 59,976 | | | | 23,900 | | | | 3,363 | | | | 6,514 | | | | 17,358 | | | | 2,277 | | | | 113,388 | | | | | |
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The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. |
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The Company analyzes loans individually by classifying the loans as to credit risk. Loans classified as substandard or special mention are reviewed quarterly by the Company for further deterioration or improvement to determine if they are appropriately classified and whether there is any impairment. All loans are graded upon initial issuance. Further, commercial, multi-family and commercial real estate loans over $25,000 are typically reviewed at least annually to determine the appropriate loan grading. In addition, during the renewal process of any loan, as well as if a loan becomes past due, the Company will determine the appropriate loan grade. |
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Loans excluded from the review process above are generally classified as pass credits until: (a) they become past due; (b) management becomes aware of a deterioration in the credit worthiness of the borrower; or (c) the borrower contacts the Company for a modification. In these circumstances, the loan is specifically evaluated for potential classification as to special mention, substandard or even charged-off. The Company uses the following definitions for risk ratings: |
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Pass – A Pass loan’s primary source of loan repayment is satisfactory, with secondary sources very likely to be realized if necessary. |
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Special Mention – A Special Mention loan has potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in the deterioration of the repayment prospects for the asset or the Company’s credit position at some future date. Special Mention loans are not adversely classified and do not expose an institution to sufficient risk to warrant adverse classification. |
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Substandard – A Substandard loan is inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified must have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. |
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Doubtful – A loan classified Doubtful has all the weaknesses inherent in one classified Substandard with the added characteristics that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. At September 30, 2014 and December 31, 2013, the Company had no loans listed as doubtful in its loan credit quality. |
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Loss – A loan classified Loss is considered uncollectible and of such little value that continuance as a bankable asset is not warranted. This classification does not mean that the asset has absolutely no recovery or salvage value, but rather it is not practical or desirable to defer writing off this asset even though partial recovery may be affected in the future. At September 30, 2014 and December 31, 2013, the Company had no loans listed as loss in its loan credit quality. |
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Age analysis of past-due loans is as follows (in thousands): |
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| | Accruing Loans | | | | | | | | | | | |
| | 30-59 | | | 60-89 | | | Greater | | | Total | | | Current | | | Nonaccrual | | | Total | | | | | |
Days | Days | Than 90 | Past | Loans | Loans | | | | |
Past Due | Past Due | Days | Due | | | | | | |
| | Past Due | | | | | | | |
At September 30, 2014: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Real estate mortgage loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
One-to four-family residential | | $ | 24 | | | | — | | | | — | | | | 24 | | | | 53,719 | | | | 2,115 | | | | 55,858 | | | | | |
Commercial | | | — | | | | — | | | | — | | | | — | | | | 21,338 | | | | 1,402 | | | | 22,740 | | | | | |
Multi-family | | | — | | | | — | | | | — | | | | — | | | | 9,199 | | | | 130 | | | | 9,329 | | | | | |
Land and construction | | | — | | | | — | | | | — | | | | — | | | | 7,331 | | | | 187 | | | | 7,518 | | | | | |
Commercial loans | | | 368 | | | | — | | | | — | | | | 368 | | | | 15,091 | | | | 881 | | | | 16,340 | | | | | |
Consumer loans | | | 2 | | | | — | | | | — | | | | 2 | | | | 1,310 | | | | — | | | | 1,312 | | | | | |
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Total | | $ | 394 | | | | — | | | | — | | | | 394 | | | | 107,988 | | | | 4,715 | | | | 113,097 | | | | | |
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At December 31, 2013: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Real estate mortgage loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
One-to four-family residential | | | 333 | | | | 15 | | | | — | | | | 348 | | | | 57,342 | | | | 2,286 | | | | 59,976 | | | | | |
Commercial | | | 233 | | | | — | | | | — | | | | 233 | | | | 23,220 | | | | 447 | | | | 23,900 | | | | | |
Multi-family | | | — | | | | — | | | | — | | | | — | | | | 3,193 | | | | 170 | | | | 3,363 | | | | | |
Land and construction | | | 221 | | | | — | | | | — | | | | 221 | | | | 6,079 | | | | 214 | | | | 6,514 | | | | | |
Commercial loans | | | 181 | | | | 272 | | | | — | | | | 453 | | | | 16,202 | | | | 703 | | | | 17,358 | | | | | |
Consumer loans | | | 51 | | | | 2 | | | | — | | | | 53 | | | | 2,222 | | | | 2 | | | | 2,277 | | | | | |
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Total | | $ | 1,019 | | | | 289 | | | | — | | | | 1,308 | | | | 108,258 | | | | 3,822 | | | | 113,388 | | | | | |
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The following summarizes the amount of impaired loans (in thousands): |
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| | With No Related | | | With an Allowance Recorded | | | Total | |
Allowance Recorded |
| | Recorded | | | Unpaid | | | Recorded | | | Unpaid | | | Related | | | Recorded | | | Unpaid | | | Related | |
Investment | Principal | Investment | Principal | Allowance | Investment | Principal | Allowance |
| Balance | | Balance | | | Balance | |
At September 30, 2014: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Real estate mortgage loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
One-to four-family residential | | $ | 1,514 | | | | 1,778 | | | | 307 | | | | 323 | | | | 19 | | | | 1,821 | | | | 2,101 | | | | 19 | |
Commercial | | | 394 | | | | 966 | | | | 4,347 | | | | 4,347 | | | | 335 | | | | 4,741 | | | | 5,313 | | | | 335 | |
Multi-family | | | 130 | | | | 269 | | | | — | | | | — | | | | — | | | | 130 | | | | 269 | | | | — | |
Land and construction | | | 111 | | | | 177 | | | | — | | | | — | | | | — | | | | 111 | | | | 177 | | | | — | |
Commercial loans | | | 676 | | | | 775 | | | | 109 | | | | 110 | | | | 9 | | | | 785 | | | | 885 | | | | 9 | |
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| | $ | 2,825 | | | | 3,965 | | | | 4,763 | | | | 4,780 | | | | 363 | | | | 7,588 | | | | 8,745 | | | | 363 | |
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At December 31, 2013: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Real estate mortgage loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
One-to four-family residential | | | 1,506 | | | | 1,712 | | | | 317 | | | | 327 | | | | 19 | | | | 1,823 | | | | 2,039 | | | | 19 | |
Commercial | | | 446 | | | | 983 | | | | 4,418 | | | | 4,418 | | | | 335 | | | | 4,864 | | | | 5,401 | | | | 335 | |
Multi-family | | | 170 | | | | 294 | | | | — | | | | — | | | | — | | | | 170 | | | | 294 | | | | — | |
Land and construction | | | 178 | | | | 288 | | | | — | | | | — | | | | — | | | | 178 | | | | 288 | | | | — | |
Commercial loans | | | 703 | | | | 781 | | | | — | | | | — | | | | — | | | | 703 | | | | 781 | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | $ | 3,003 | | | | 4,058 | | | | 4,735 | | | | 4,745 | | | | 354 | | | | 7,738 | | | | 8,803 | | | | 354 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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The average net investment in impaired loans and interest income recognized and received on impaired loans are as follows (in thousands): |
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| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended September 30, | | | | | | | | | |
| | 2014 | | | 2013 | | | | | | | | | |
| | Average | | | Interest | | | Interest | | | Average | | | Interest | | | Interest | | | | | | | | | |
Recorded | Income | Income | Recorded | Income | Income | | | | | | | | |
Investment | Recognized | Received | Investment | Recognized | Received | | | | | | | | |
Real estate mortgage loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
One-to-four-family residential | | $ | 1,636 | | | | 22 | | | | 32 | | | | 2,568 | | | | 60 | | | | 69 | | | | | | | | | |
Commercial | | | 4,755 | | | | 67 | | | | 80 | | | | 4,918 | | | | 70 | | | | 81 | | | | | | | | | |
Multi-family | | | 134 | | | | — | | | | 5 | | | | 177 | | | | — | | | | 7 | | | | | | | | | |
Land and construction | | | 111 | | | | — | | | | 1 | | | | 178 | | | | — | | | | — | | | | | | | | | |
Commercial loans | | | 720 | | | | — | | | | 16 | | | | 708 | | | | — | | | | 3 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 7,356 | | | | 89 | | | | 134 | | | | 8,549 | | | | 130 | | | | 160 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | |
| | Nine Months Ended September 30, | | | | | | | | | |
| | 2014 | | | 2013 | | | | | | | | | |
| | Average | | | Interest | | | Interest | | | Average | | | Interest | | | Interest | | | | | | | | | |
Recorded | Income | Income | Recorded | Income | Income | | | | | | | | |
Investment | Recognized | Received | Investment | Recognized | Received | | | | | | | | |
Real estate mortgage loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
One-to-four-family residential | | $ | 1,653 | | | | 31 | | | | 53 | | | | 2,367 | | | | 67 | | | | 93 | | | | | | | | | |
Commercial | | | 4,796 | | | | 222 | | | | 236 | | | | 4,939 | | | | 232 | | | | 245 | | | | | | | | | |
Multi-family | | | 147 | | | | — | | | | 15 | | | | 250 | | | | — | | | | 7 | | | | | | | | | |
Land and construction | | | 112 | | | | — | | | | 2 | | | | 164 | | | | 2 | | | | 4 | | | | | | | | | |
Commercial loans | | | 708 | | | | — | | | | 22 | | | | 708 | | | | — | | | | 17 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 7,416 | | | | 253 | | | | 328 | | | | 8,428 | | | | 301 | | | | 366 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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Troubled Debt Restructurings (TDRs) entered into during the three and nine months ended September 30, 2014 and 2013 are as follows (dollars in thousands): |
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| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Number | | | Pre- | | | Post- | | | | | | | | | | | | | | | | | | | | | |
of | Modification | Modification | | | | | | | | | | | | | | | | | | | | |
Contracts | Outstanding | Outstanding | | | | | | | | | | | | | | | | | | | | |
| Recorded | Recorded | | | | | | | | | | | | | | | | | | | | |
| Investment | Investment | | | | | | | | | | | | | | | | | | | | |
Troubled Debt Restructurings: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
For the Three Months Ended September 30, 2014: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial loans- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Modified interest rate and amortization | | | 6 | | | $ | 740 | | | | 116 | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
For the Three Months Ended September 30, 2013: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Real estate mortgage loans- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
One-to four-family residential loans- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Modified interest rate and amortization | | | 1 | | | $ | 144 | | | | 144 | | | | | | | | | | | | | | | | | | | | | |
Commercial loans- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Modified interest rate and amortization | | | 1 | | | | 105 | | | | 105 | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | | 2 | | | $ | 249 | | | | 249 | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
For the Nine Months Ended September 30, 2014: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial loans- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Modified interest rate and amortization | | | 6 | | | $ | 740 | | | | 116 | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
For the Nine Months Ended September 30, 2013: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Real estate mortgage loans- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
One-to four-family residential loans- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Modified interest rate and amortization | | | 1 | | | $ | 144 | | | | 144 | | | | | | | | | | | | | | | | | | | | | |
Commercial loans- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Modified interest rate and amortization | | | 1 | | | | 105 | | | | 105 | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | | 2 | | | $ | 249 | | | | 249 | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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The allowance for loan losses on all loans that have been restructured and are considered TDRs is included in the Bank’s specific allowance for loan losses. The specific allowance for loan losses is determined on a loan by loan basis by either the present value of expected future cash flows discounted at the loan’s effective interest rate, or the fair value of the collateral if the loan is collateral-dependent. TDRs that have subsequently defaulted are considered collateral-dependent. |
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During the three and nine months ended September 30, 2014 and 2013, the Company had no loans restructured as troubled debt restructurings that subsequently defaulted that had been modified in the previous twelve month period. |