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

3 Months Ended

Mar. 31, 2014

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 months ended March 31, 2014 and 2013:

Three months ended March 31, 2014	One-to-four family residential			All other mortgage loans			Commercial business loans		Consumer loans			Total
	(In thousands)
Beginning balance	$	1,017		$	1,526		$	271	$	5		$	2,819
Provision charged to expense		(135	)		127			17		(1	)		8
Losses charged off		—			(260	)		—		—			(260	)
Recoveries		7			—			—		—			7
Ending balance	$	889		$	1,393		$	288	$	4		$	2,574

Three months ended March 31, 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		(61	)		(18	)		(63	)		1			(141	)
Losses charged off		(34	)		(176	)		—			(2	)		(212	)
Recoveries		—			—			1			1			2
Ending balance	$	1,027		$	1,731		$	213		$	6		$	2,977

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 March 31, 2014 and December 31, 2013:

March 31, 2014	One-to-four family residential		All other mortgage loans		Commercial business loans		Consumer loans		Total
	(In thousands)
Allowance Balances:
Ending balance:
Individually evaluated for impairment	$	153	$	359	$	61	$	—	$	573
Collectively evaluated for impairment		736		1,034		227		4		2,001
Total allowance for loan losses	$	889	$	1,393	$	288	$	4	$	2,574
Loan Balances:
Ending balance:
Individually evaluated for impairment	$	6,317	$	3,371	$	137	$	—	$	9,825
Collectively evaluated for impairment		160,648		82,469		14,064		1,939		259,120
Total balance	$	166,965	$	85,840	$	14,201	$	1,939	$	268,945

December 31, 2013	One-to-four family residential		All other mortgage loans		Commercial business loans		Consumer loans		Total
	(In thousands)
Allowance Balances:
Ending balance:
Individually evaluated for impairment	$	226	$	618	$	65	$	—	$	909
Collectively evaluated for impairment		791		908		206		5		1,910
Total allowance for loan losses	$	1,017	$	1,526	$	271	$	5	$	2,819
Loan Balances:
Ending balance:
Individually evaluated for impairment	$	6,411	$	3,661	$	142	$	—	$	10,214
Collectively evaluated for impairment		160,317		82,434		14,773		1,110		258,634
Total balance	$	166,728	$	86,095	$	14,915	$	1,110	$	268,848

Schedule of loans receivable by credit risk profile

The following tables present the credit risk profile of the Bank’s loan portfolio based on rating category and payment activity as of March 31, 2014 and December 31, 2013:

March 31, 2014	One-to-four family residential		All other mortgage loans		Commercial business loans		Consumer loans
	(In thousands)
Rating *
Pass (Risk 1-4)	$	158,883	$	81,400	$	13,730	$	1,937
Special Mention (Risk 5)		487		1,579		335		—
Substandard (Risk 6)		7,595		2,861		136		2
Total	$	166,965	$	85,840	$	14,201	$	1,939

December 31, 2013	One-to-four family residential		All other mortgage loans		Commercial business loans		Consumer loans
	(In thousands)
Rating *
Pass (Risk 1-4)	$	158,518	$	81,362	$	14,328	$	1,108
Special Mention (Risk 5)		419		1,587		445		—
Substandard (Risk 6)		7,791		3,146		142		2
Total	$	166,728	$	86,095	$	14,915	$	1,110

Aging analysis of loans receivable

The following tables present the Bank’s loan portfolio aging analysis for March 31, 2014 and December 31, 2013:

March 31, 2014	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	$	2,118	$	586	$	287	$	2,991	$	163,974	$	166,965	$	—
All other mortgage      loans		52		—		766		818		85,022		85,840		—
Commercial      business loans		39		—		—		39		14,162		14,201		—
Consumer loans		1		—		—		1		1,938		1,939		—
Total	$	2,210	$	586	$	1,053	$	3,849	$	265,096	$	268,945	$	—

December 31, 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	$	679	$	228	$	624	$	1,531	$	165,197	$	166,728	$	—
All other mortgage      loans		150		64		811		1,025		85,070		86,095		—
Commercial      business loans		—		—		—		—		14,915		14,915		—
Consumer loans		79		—		—		79		1,031		1,110		—
Total	$	908	$	292	$	1,435	$	2,635	$	266,213	$	268,848	$	—

Schedule of non-accrual loans

Nonaccrual loans were comprised of the following at:

Nonaccrual loans	March 31, 2014		December 31, 2013
	(In thousands)
One-to-four family residential loans	$	1,571	$	1,851
Nonresidential real estate loans		766		1,045
All other mortgage loans		—		—
Commercial business loans		—		2
Consumer loans		2		—
Total	$	2,339	$	2,898

Schedule of impaired loans

Information with respect to the Company’s impaired loans at March 31, 2014 and December 31, 2013 in combination with activity for the three months ended March 31, 2014 and 2013 is presented below:

	As of March 31, 2014						Three months ended March 31, 2014
	Recorded Balance		Unpaid Principal Balance		Specific Allowance		Average Investment in Impaired Loans		Interest Income Recognized
	(In thousands)
Loans without a specific valuation allowance
One-to-four family residential loans	$	5,596	$	5,596	$	—	$	5,583	$	64
All other mortgage loans		2,027		2,027		—		2,039		20
Commercial business loans		76		76		—		77		1
Loans with a specific valuation allowance
One-to-four family residential loans		721		721		153		782		9
All other mortgage loans		1,344		2,070		359		1,477		14
Commercial business loans		61		61		61		63		1
Total:
One-to-four family residential loans	$	6,317	$	6,317	$	153	$	6,365	$	73
All other mortgage loans		3,371		4,097		359		3,516		34
Commercial business loans		137		137		61		140		2
	$	9,825	$	10,551	$	573	$	10,021	$	109

	As of December 31, 2013						Three months ended March 31, 2013
	Recorded Balance		Unpaid Principal Balance		Specific Allowance		Average Investment in Impaired Loans		Interest Income Recognized
	(In thousands)
Loans without a specific valuation allowance
One-to-four family residential loans	$	5,569	$	5,569	$	—	$	5,620	$	78
All other mortgage loans		2,051		2,051		—		2,578		29
Commercial business loans		77		77		—		85		1
Loans with a specific valuation allowance
One-to-four family residential loans		842		842		226		1,324		13
All other mortgage loans		1,610		2,076		618		2,956		9
Commercial business loans		65		65		65		94		1
Total:
One-to-four family residential loans	$	6,411	$	6,411	$	226	$	6,944	$	91
All other mortgage loans		3,661		4,127		618		5,534		38
Commercial business loans		142		142		65		179		2
	$	10,214	$	10,680	$	909	$	12,657	$	131

Schedule of troubled debt restructurings

	Quarter-to-Date
Troubled Debt Restructurings	Number of loans		Pre-modification Unpaid Principal Balance		Post-modification Unpaid Principal Balance
	(dollars in thousands)
March 31, 2014
One-to-four family residential loans			$	—	$	—
All other mortgage loans		1		261		261
March 31, 2013
One-to-four family residential loans		1	$	113	$	113
All other mortgage loans		1		576		576