Note 5. Allowances For Loan And Real Estate Losses

6 Months Ended

Jun. 30, 2012

Allowance for Credit Losses [Text Block]

5.         ALLOWANCES FOR LOAN AND LEASE LOSSES AND REAL ESTATE LOSSES

The tables below provide a rollforward of the allowance for loan and lease losses (“ALLL”) by portfolio segment (in thousands):

	One- to four-family residential			Home equity and second mortgage			Multifamily residential			Commercial real estate			One- to four-family construction		Other construction and land			Commercial			Consumer			Total
Three Months Ended June 30, 2012
ALLL:
Balance, beginning of period:	$	5,873		$	574			1,398			6,230		$	69		3,547		$	491		$	158			18,340
Provision charged to expense		771			(15	)		(512	)		1,939			28		(2,034	)		(201	)		30			6
Losses charged off		(606	)		(11	)		--			(505	)		--		(37	)		--			(50	)		(1,209	)
Recoveries		8			39			--			24			--		11			23			22			127
Balance, end of period	$	6,046		$	587		$	886			7,688		$	97	$	1,487		$	313		$	160			17,264
Six Months Ended June 30, 2012
ALLL:
Balance, beginning of year:	$	6,306		$	693			2,654			7,316		$	84		2,567		$	972		$	226			20,818
Provision charged to expense		661			(39	)		(788	)		2,589			13		(1,760	)		(688	)		34			22
Losses charged off		(941	)		(112	)		(997	)		(2,241	)		--		(37	)		--			(145	)		(4,473	)
Recoveries		20			45			17			24			--		717			29			45			897
Balance, end of period	$	6,046		$	587		$	886			7,688		$	97	$	1,487		$	313		$	160			17,264
Ending balance: individually evaluated for impairment	$	204		$	137		$	--		$	884		$	--	$	323		$	--		$	--			1,548
Ending balance: collectively evaluated for impairment	$	5,842		$	450		$	886		$	6,804		$	97	$	1,164		$	313		$	160			15,716
Loan balances:
Ending balance	$	161,081		$	9,922		$	13,254		$	116,706		$	2,631	$	22,253		$	17,531			6,638			350,016
Ending balance: individually evaluated for impairment	$	4,142		$	269		$	279		$	9,143		$	--	$	7,698		$	402		$	2			21,935
Ending balance: collectively evaluated for impairment	$	156,939		$	9,653		$	12,975		$	107,563		$	2,631	$	14,555			17,129			6,636			328,081

Impairment is measured on a loan by loan basis for loans where the aggregate relationship balance exceeds $250,000 by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent.  Impaired loans under this threshold are aggregated and impairment measured on a collective basis.

Year Ended December 31, 2011	One- to four-family residential			Home equity and second mortgage			Multifamily residential			Commercial real estate			One- to four-family construction			Other construction and land			Commercial			Consumer			Total
ALLL:
Balance, beginning of year:	$	5,440		$	1,275		$	6,581		$	9,491		$	81		$	4,035		$	3,543		$	638		$	31,084
Provision charged to expense		3,993			(160	)		(1,132	)		189			31			204			(2,139	)		(127	)		859
Losses charged off		(3,177	)		(486	)		(2,795	)		(2,375	)		(28	)		(2,190	)		(517	)		(409	)		(11,977	)
Recoveries		50			64			--			11			--			68			85			124			852
Balance, end of year	$	6,306		$	693		$	2,654		$	7,316		$	84		$	2,567		$	972		$	226		$	20,818
Ending balance: individually evaluated for impairment	$	305		$	81		$	703		$	1,879		$	--		$	280		$	--		$	45		$	3,293
Ending balance: collectively evaluated for impairment	$	6,001		$	612		$	1,951		$	5,437		$	84		$	2,287		$	972		$	181		$	17,525
Loan balances:
Ending balance	$	183,158		$	12,502		$	20,476		$	95,920		$	2,391		$	23,443		$	7,603		$	8,015		$	353,508
Ending balance: individually evaluated for impairment	$	13,085		$	831		$	8,133		$	13,238		$	--		$	3,683		$	72		$	119		$	39,161
Ending balance: collectively evaluated for impairment	$	170,073		$	11,671		$	12,343		$	82,682		$	2,391		$	19,760		$	7,531		$	7,896		$	314,347

The Bank does not have any loans acquired with deteriorated credit quality.

A summary of the activity in the allowances for loan and lease losses and real estate losses is as follows for the three and six months ended June 30 (in thousands):

	Three Months Ended June 30, 2012						Three Months Ended June 30, 2011
	Loans and Leases			Real Estate			Loans and Leases			Real Estate
Balance—beginning of year	$	18,340		$	20,501		$	29,113		$	8,853
Provisions for estimated losses		6			280			631			1,355
Recoveries		127			--			98			--
Losses charged off		(1,209	)		(1,132	)		(244	)		(574	)
Balance—end of period	$	17,264		$	19,649		$	29,598		$	9,634

	Six Months Ended June 30, 2012						Six Months Ended June 30, 2011
	Loans and Leases			Real Estate			Loans and Leases			Real Estate
Balance—beginning of period	$	20,818		$	20,934		$	31,084		$	7,841
Provisions for estimated losses		22			308			791			2,999
Recoveries		897			--			627			--
Losses charged off		(4,473	)		(1,593	)		(2,904	)		(1,206	)
Balance—end of period	$	17,264		$	19,649		$	29,598		$	9,634