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

6 Months Ended

Jun. 30, 2015

Credit Quality of Loans and the Allowance for Loan Losses [Abstract]

Three months ended June 30, 2015	One-to-four family residential		All other mortgage loans		Commercial business loans		Consumer loans			Unallocated	Total
	(In thousands)
Beginning balance	$	910	$	1,055	$	380	$	4	$	-	$	2,349
Provision charged to expense		367		109		(34)		1		38		481
Losses charged off		(205)		-		-		-				(205)
Recoveries		43		-		-		-		-		43
Ending balance	$	1,115	$	1,164	$	346	$	5	$	38	$	2,668

Three months ended June 30, 2014	One-to-four family residential			All other mortgage loans			Commercial business loans			Consumer loans			Unallocated	Total
	(In thousands)
Beginning balance	$	889		$	1,393		$	288		$	4	$	-	$	2,574
Provision charged to expense		63			(255	)		271			-		-		79
Losses charged off		(11	)		-			(112	)		-		-		(123	)
Recoveries		-			17			2			-		-		19
Ending balance	$	941		$	1,155		$	449		$	4	$	-	$	2,549

Six months ended June 30, 2015	One-to-four family residential			All other mortgage loans			Commercial business loans			Consumer loans				Unallocated	Total
	(In thousands)
Beginning balance	$	1,533		$	885		$	343		$	8		$	-	$	2,769
Provision charged to expense		397			279			3			(3)			38		714
Losses charged off		(859)			-			-			-			-		(859)
Recoveries		44			-			-			-			-		44
Ending balance	$	1,115		$	1,164		$	346		$	5		$	38	$	2,668

Six months ended June 30, 2014		One-to-four family residential			All other mortgage loans			Commercial business loans			Consumer loans			Unallocated		Total
	(In thousands)
Beginning balance	$	1,017		$	1,526		$	271		$	5		$	-	$	2,819
Provision charged to expense		(72	)		(128	)		288			(1	)		-		87
Losses charged off		(11	)		(260	)		(112	)		-			-		(383	)
Recoveries		7			17			2			-			-		26
Ending balance	$	941		$	1,155		$	449		$	4		$	-	$	2,549

June 30, 2015	One-to-four family residential		All other mortgage loans		Commercial business loans		Consumer loans		Unallocated		Total
Allowance Balances:	(In thousands)
Ending balance:
Individually evaluated for impairment	$	146	$	109	$	123	$	-	$	-	$	378
Collectively evaluated for impairment		969		1,055		223		5		38		2,290
Total allowance for loan losses	$	1,115	$	1,164	$	346	$	5	$	38	$	2,668

Loan Balances:
Ending balance:
Individually evaluated for impairment	$	2,609	$	1,215	$	123	$	-	$	-	$	3,947
Collectively evaluated for impairment		168,856		94,023		15,436		1,814		-		280,129
Total balance	$	171,465	$	95,238	$	15,559	$	1,814	$	-	$	284,076

December 31, 2014	One-to-four family residential		All other mortgage loans		Commercial business loans		Consumer loans		Unallocated		Total
Allowance Balances:	(In thousands)
Ending balance:
Individually evaluated for impairment	$	653	$	18	$	145	$	-	$	-	$	816
Collectively evaluated for impairment		880		867		198		8		-		1,953
Total allowance for loan losses	$	1,533	$	885	$	343	$	8	$	-	$	2,769

Loan Balances:
Ending balance:
Individually evaluated for impairment	$	3,279	$	18	$	145	$	-	$	-	$	3,442
Collectively evaluated for impairment		166,397		86,902		16,130		2,311		-		271,740
Total balance	$	169,676	$	86,920	$	16,275	$	2,311	$	-	$	275,182

Schedule of Loans Receivable by Credit Risk Profile

June 30, 2015	One - to - four family residential		All other mortgage loans		Commercial business loans		Consumer loans
	(In thousands)
Rating *
Pass (Risk 1-4)	$	163,607	$	91,865	$	15,134	$	1,814
Special Mention (Risk 5)		1,174		1,486		168		-
Substandard (Risk 6)		6,684		1,887		257		-
Total	$	171,465	$	95,238	$	15,559	$	1,814

December 31, 2014		One - to - four family residential		All other mortgage loans		Commercial business loans		Consumer loans
	(In thousands)
Rating *
Pass (Risk 1-4)	$	160,190	$	84,168	$	15,812	$	2,311
Special Mention (Risk 5)		2,015		851		318		-
Substandard (Risk 6)		7,471		1,901		145		-
Total	$	169,676	$	86,920	$	16,275	$	2,311

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.

Risk 1 is unquestioned credit quality for any credit product. Loans are secured by cash and near cash collateral with immediate access to proceeds.

Risk 2 is very low risk with strong credit and repayment sources. Borrower is well capitalized in a stable industry, financial ratios exceed peers and financial trends are positive.

Risk 3 is very favorable risk with highly adequate credit strength and repayment sources. Borrower has good overall financial condition and adequate capitalization.

Risk 4 is acceptable, average risk with adequate credit strength and repayment sources. Collateral positions must be within Bank policies.

Risk 5 or “Special Mention,” also known as “watch,” has potential weakness that deserves Management's close attention. This risk includes loans where the borrower has developed financial uncertainties or the borrower is resolving the financial uncertainties. Bank credits have been secured or negotiations will be ongoing to secure further collateral.

Risk 6 or “Substandard” loans are inadequately protected by the current net worth and paying capacity of the borrower or of the collateral pledged. This risk category contains loans that exhibit a weakening of the borrower's credit strength with limited credit access and all nonperforming loans.

Risk 7 or “Doubtful” loans are significantly under protected by the current net worth and paying capacity of the borrower or of the collateral pledged. This risk category contains loans that are likely to experience a loss of some magnitude, but where the amount of the expected loss is not known with enough certainty to allow for an accurate calculation of a loss amount for charge- off. This category is considered to be temporary until a charge-off amount can be reasonably determined.

Schedule of Aging Analysis of Loans Receivable

June 30, 2015	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	$	79	$	679	$	531	$	1,289	$	170,176	$	171,465	$	-
All other mortgage loans		107		-		346		453		94,785		95,238		-
Commercial business loans		34		-		44		78		15,481		15,559		-
Consumer loans		-		-		-		-		1,814		1,814		-
Total	$	220	$	679	$	921	$	1,820	$	282,256	$	284,076	$	-


December 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	$	466	$	297	$	1,575	$	2,338	$	167,338	$	169,676	$	-
All other mortgage loans		-		198		152		350		86,570		86,920		-
Commercial business loans		-		-		59		59		16,216		16,275		-
Consumer loans		-		-		-		-		2,311		2,311		-
Total	$	466	$	495	$	1,786	$	2,747	$	272,435	$	275,182	$	-

Schedule of Non-accrual Loans

Nonaccrual loans	June 30, 2015		December 31, 2014
	(In thousands)
One-to-four family residential loans	$	1,449	$	2,740
Nonresidential real estate loans		346		350
All other mortgage loans		-		-
Commercial business loans		81		96
Consumer loans		-		-
Total	$	1,876	$	3,186

Schedule of Impaired Loans

	As of June 30, 2015						Three months ended June 30, 2015				Six months ended June 30, 2015
	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	$	1,475	$	1,475	$	-	$	1,794	$	13	$	1,565	$	25
All other mortgage loans		1,066		1,066		-		1,063		18		709		36
Commercial business loans		-		-		-		-		-		-		-

Loans with a specific valuation allowance
One-to-four family residential loans		1,134		1,134		146		1,010		12		1,397		25
All other mortgage loans		149		149		109		83		-		61		-
Commercial business loans		123		123		123		125		1		131		1

Total:
One-to-four family residential loans	$	2,609	$	2,609	$	146	$	2,804	$	25	$	2,962	$	50
All other mortgage loans		1,215		1,215		109		1,146		18		770		36
Commercial business loans		123		123		123		125		1		131		1
	$	3,947	$	3,947	$	378	$	4,075	$	44	$	3,863	$	87

	As of December 31, 2014						Three months ended June 30, 2014				Six months ended June 30, 2014
		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	$	1,108	$	1,108	$	-	$	5,247	$	41	$	5,354	$	105
All other mortgage loans		-		-		-		2,194		43		2,146		63
Commercial business loans		-		-		-		38		-		51		-

Loans with a specific valuation allowance
One-to-four family residential loans		2,171		2,171		653		826		18		831		27
All other mortgage loans		18		18		18		936		4		1,160		18
Commercial business loans		145		145		145		151		2		122		3

Total:
One-to-four family residential loans	$	3,279	$	3,279	$	653	$	6,073	$	59	$	6,185	$	132
All other mortgage loans		18		18		18		3,130		47		3,306		81
Commercial business loans		145		145		145		189		2		173		3
	$	3,442	$	3,442	$	816	$	9,392	$	108	$	9,664	$	216

Schedule of balance of mortgage loans collateralized by residential real estate properties held as foreclosed assets

	June 30, 2015		December 31, 2014
	Recorded Investment
	(In thousands)
One-to-four family residential loans	$	299	$	179

Schedule of balance of mortgage loans collateralized by residential real estate properties that are in formal process of foreclosure

	June 30, 2015		December 31, 2014
	Recorded Investment
	(In thousands)
One-to-four family residential loans	$	135	$	24