Credit Quality of Loans and Allowance for Loan Losses (Tables)

6 Months Ended

Jun. 30, 2013

Credit Quality Of Loans And Allowance For Loan Losses Tables

Schedule of Allowance for Loan Losses

The following presents by portfolio segment, the activity in the allowance for loan losses for the three and six months ended June 30, 2013 and 2012:

Three months ended June 30, 2013	One-to-four family residential			All other mortgage loans			Commercial business loans			Consumer loans			Total
	(In thousands)
Beginning balance	$	1,027		$	1,731		$	213		$	6		$	2,977
Provision charged           to expense		216			(174	)		(29	)		(3	)		10
Losses charged off		(4	)		—			—			—			(4	)
Recoveries		—			—			1			3			4
Ending balance	$	1,239		$	1,557		$	185		$	6		$	2,987

Three months ended June 30, 2012	One-to-four family residential			All other mortgage loans			Commercial business loans			Consumer loans			Total
	(In thousands)
Beginning balance	$	1,251		$	3,140		$	174		$	9		$	4,574
Provision (credit)           charged to expense		(182	)		(181	)		(31	)		—			(394	)
Losses charged off		(23	)		(597	)		—			(4	)		(624	)
Recoveries		36			—			—			—			36
Ending balance	$	1,082		$	2,362		$	143		$	5		$	3,592

Six months ended June 30, 2013	One-to-four family residential			All other mortgage loans			Commercial business loans			Consumer loans			Total
	(In thousands)
Beginning balance	$	1,122		$	1,925		$	275		$	6		$	3,328
Provision (credit)           charged to expense		155			(192	)		(92	)		(2	)		(131	)
Losses charged off		(38	)		(176	)		—			(2	)		(216	)
Recoveries		—			—			2			4			6
Ending balance	$	1,239		$	1,557		$	185		$	6		$	2,987

Six months ended June 30, 2012	One-to-four family residential			All other mortgage loans			Commercial business loans			Consumer loans			Total
	(In thousands)
Beginning balance	$	1,128		$	2,547		$	169		$	10		$	3,854
Provision charged           to expense		3			417			(26	)		(1	)		393
Losses charged off		(88	)		(602	)		—			(4	)		(694	)
Recoveries		39			—			—			—			39
Ending balance	$	1,082		$	2,362		$	143		$	5		$	3,592

The following tables present the balance in the allowance for loan losses and the recorded investment in loans based on the portfolio segment and impairment method as of June 30, 2013 and December 31, 2012:

June 30, 2013	One-to-four family residential		All other mortgage loans		Commercial business loans		Consumer loans		Total
Allowance Balances:	(In thousands)
Ending balance:
Individually evaluated for           impairment	$	339	$	922	$	76	$	—	$	1,337
Collectively evaluated for           impairment		900		635		109		6		1,650
Total allowance for loan losses	$	1,239	$	1,557	$	185	$	6	$	2,987
Loan Balances:
Ending balance:
Individually evaluated for           impairment	$	7,071	$	4,832	$	158	$	—	$	12,061
Collectively evaluated for           impairment		156,699		74,177		11,173		1,349		243,398
Total balance	$	163,770	$	79,009	$	11,331	$	1,349	$	255,459

December 31, 2012	One-to-four family residential		All other mortgage loans		Commercial business loans		Consumer loans		Total
Allowance Balances:	(In thousands)
Ending balance:
Individually evaluated for           impairment	$	248	$	1,074	$	100	$	—	$	1,422
Collectively evaluated for           impairment		874		851		175		6		1,906
Total allowance for loan losses	$	1,122	$	1,925	$	275	$	6	$	3,328
Loan Balances:
Ending balance:
Individually evaluated for           impairment	$	6,878	$	5,837	$	185	$	—	$	12,900
Collectively evaluated for           impairment		154,032		71,884		14,060		1,517		241,493
Total balance	$	160,910	$	77,721	$	14,245	$	1,517	$	254,393

Schedule of Loans Receivable Quality Indicators

The following tables present the credit risk profile of the Bank’s loan portfolio based on rating category and payment activity as of June 30, 2013 and December 31, 2012:

June 30, 2013	One-to-four family residential		All other mortgage loans		Commercial business loans		Consumer loans
	(In thousands)
Rating *
Pass (Risk 1-4)	$	155,030	$	72,253	$	11,151	$	1,347
Special Mention (Risk 5)		121		1,924		22		—
Substandard (Risk 6)		8,619		4,832		158		2
Total	$	163,770	$	79,009	$	11,331	$	1,349

December 31, 2012	One-to-four family residential		All other mortgage loans		Commercial business loans		Consumer loans
	(In thousands)
Rating *
Pass (Risk 1-4)	$	151,749	$	68,949	$	14,034	$	1,513
Special Mention (Risk 5)		708		2,934		26		—
Substandard (Risk 6)		8,453		5,838		185		4
Total	$	160,910	$	77,721	$	14,245	$	1,517

* Ratings are generally assigned to consumer and residential mortgage loans on a “pass” or “fail” basis, where “fail” results in a substandard classification. Commercial loans, both secured by real estate or other assets or unsecured, are analyzed in accordance with an analytical matrix codified in the Bank’s loan policy that produces a risk rating as described below.

Aging Analysis of Loans Receivable

The following tables present the Bank’s loan portfolio aging analysis for June 30, 2013 and December 31, 2012:

June 30, 2013	30-59 Days Past Due		60-89 Days Past Due		Greater Than 90 Days		Total Past Due		Current		Total Loans Receivable		Total Loans > 90 Days and Accruing
	(In thousands)
One-to-four family      residential loans	$	316	$	108	$	905	$	1,329	$	162,441	$	163,770	$	—
All other mortgage      loans		807		—		819		1,626		77,383		79,009		—
Commercial      business loans		—		—		—		—		11,331		11,331		—
Consumer loans		2		1		—		3		1,346		1,349		—
Total	$	1,125	$	109	$	1,724	$	2,958	$	252,501	$	255,459	$	—

December 31, 2012	30-59 Days Past Due		60-89 Days Past Due		Greater Than 90 Days		Total Past Due		Current		Total Loans Receivable		Total Loans > 90 Days and Accruing
	(In thousands)
One-to-four family      residential loans	$	1,049	$	339	$	1,190	$	2,578	$	158,332	$	160,910	$	—
All other mortgage      loans		1,544		—		1,309		2,853		74,868		77,721		—
Commercial      business loans		—		—		—		—		14,245		14,245		—
Consumer loans		1		2		2		5		1,512		1,517		—
Total	$	2,594	$	341	$	2,501	$	5,436	$	248,957	$	254,393	$	—

Schedule of Non-accrual Loans

Nonaccrual loans were comprised of the following at:

Nonaccrual loans	June 30, 2013		December 31, 2012
	(In thousands)
One-to-four family residential loans	$	2,316	$	2,097
Nonresidential real estate loans		1,910		3,123
All other mortgage loans		—		—
Commercial business loans		—		32
Consumer loans		2		4
Total	$	4,228	$	5,256

Schedule of Impaired Loans

Information with respect to the Company’s impaired loans at June 30, 2013 and December 31, 2012 in combination with activity for the three and six months ended June 30, 2013 and 2012 is presented below:

	As of June 30, 2013						Three months ended June 30, 2013				Six months ended June 30, 2013
	Recorded Balance		Unpaid Principal Balance		Specific Allowance		Average Investment in Impaired Loans		Interest Income Recognized		Average Investment in Impaired Loans		Interest Income Recognized
	(In thousands)
Loans without a      specific valuation      allowance
One-to-four family      residential loans	$	5,967	$	5,967	$	—	$	5,810	$	60	$	5,736	$	138
All other mortgage      loans		2,326		2,326		—		2,351		20		2,494		49
Commercial business      loans		82		82		—		83		—		84		1
Loans with a specific      valuation      allowance
One-to-four family      residential loans		1,104		1,104		339		1,230		2		1,250		15
All other mortgage      loans		2,506		3,102		922		2,681		27		2,806		36
Commercial business      loans		76		76		76		82		1		88		2
Total:
One-to-four family      residential loans	$	7,071	$	7,071	$	339	$	7,040	$	62	$	6,986	$	153
All other mortgage      loans		4,832		5,428		922		5,031		47		5,300		85
Commercial business      loans		158		158		76		165		1		171		3
	$	12,061	$	12,657	$	1,337	$	12,236	$	110	$	12,457	$	241

	As of December 31, 2012						Three months ended June 30, 2012				Six months ended June 30, 2012
	Recorded Balance		Unpaid Principal Balance		Specific Allowance		Average Investment in impaired Loans		Interest Income Recognized		Average Investment in Impaired Loans		Interest Income Recognized
	(In thousands)
Loans without a      specific valuation      allowance
One-to-four family      residential loans	$	5,587	$	5,587	$	—	$	3,148	$	30	$	3,118	$	69
All other mortgage      loans		2,781		2,781		—		2,067		28		1,916		55
Commercial business      loans		85		85		—		—		—		—		—
Loans with a      specific valuation      allowance
One-to-four family      residential loans		1,291		1,291		248		1,224		8		828		33
All other mortgage      loans		3,056		3,652		1,074		4,973		19		4,909		39
Commercial business      loans		100		100		100		49		—		70		—
Total:
One-to-four family      residential loans	$	6,878	$	6,878	$	248	$	4,372	$	38	$	3,946	$	102
All other mortgage      loans		5,837		6,433		1,074		7,040		7		6,825		94
Commercial business      loans		185		185		100		49		—		70		—
	$	12,900	$	13,496	$	1,422	$	11,461	$	85	$	10,841	$	196

Schedule of Troubled Debt Restructurings

	Quarter-to-Date						Year-to-Date
Troubled Debt Restructurings	Number of loans		Pre- modification Unpaid Principal Balance		Post- modification Unpaid Principal Balance		Number of loans		Pre- modification Unpaid Principal Balance		Post- modification Unpaid Principal Balance
	(dollars in thousands)
June 30, 2013
One-to-four family residential loans		1	$	303	$	303		2	$	416	$	416
All other mortgage loans		—		—		—		1		576		576
June 30, 2012
One-to-four family residential loans		—	$	—	$	—		2	$	538	$	538