Loans Receivable

12 Months Ended

Dec. 31, 2012

Receivables [Abstract]

Loans Receivable

LOANS RECEIVABLE

Loans receivable are summarized as follows:

	December 31,
	2012			2011
	(Dollars in thousands)
Commercial loans:
Commercial and industrial	$	102,628		$	85,160
Commercial real estate:
Owner occupied	98,046			93,833
Non-owner occupied	164,392			188,293
Multifamily	75,228			71,876
Commercial construction and land development	20,228			22,045
Commercial participations	5,311			12,053
Total commercial loans	465,833			473,260
Retail loans:
One-to-four family residential	175,943			181,698
Home equity lines of credit	46,477			52,873
Retail construction	1,176			1,022
Consumer	3,305			2,771
Total retail loans	226,901			238,364
Total loans receivable	692,734			711,624
Net deferred loan fees	(467		)	(398		)
Total loans receivable, net of deferred fees	$	692,267		$	711,226

The Bank’s lending activities are exposed to varying risks with concentrations of credit. Concentrations of credit include significant lending activities in specific geographic areas and large extensions of credit to individual borrowers. The Bank’s loan portfolio consists of loans secured by real estate within its primary market area. At December 31, 2012 and 2011, loans representing 45.8% and 47.6%, respectively, of the Bank’s total loans receivable were secured by real estate located in the state of Indiana and 36.5% and 36.3%, respectively, were secured by real estate located in the state of Illinois. At December 31, 2012, the Bank also had a concentration of loans secured by office and/or warehouse buildings totaling $204.3 million or 29.5% of its total loan portfolio compared to $212.3 million or 29.8% of its total loan portfolio at December 31, 2011.

At December 31, 2012 and 2011, the Company had loans held for sale of $1.5 million and $1.1 million, respectively.

At December 31, 2012, the Company serviced for others $69.4 million of one-to-four family residential mortgages and $12.7 million of commercial participations sold. At December 31, 2011, the Company serviced for others $20.9 million of one-to-four family residential mortgages and $20.0 million of commercial participations sold.