PORTFOLIO LOANS

3 Months Ended

Mar. 31, 2015

Receivables [Abstract]

Loans, Notes, Trade and Other Receivables Disclosure [Text Block]

NOTE 7. PORTFOLIO LOANS

Following is a comparative composition of net portfolio loans as of March 31, 2015 and December 31, 2014:

	March 31, 2015		% of Total Loans			December 31,  2014		% of Total Loans
	(Dollars in Thousands)
Real estate loans:
One- to four-family	$	250,211		54.3	%	$	237,151		53.0	%
Commercial		49,973		10.8	%		50,322		11.3	%
Other (land and multi-family)		14,820		3.2	%		14,680		3.3	%
Total real estate loans		315,004		68.3	%		302,153		67.6	%
Real estate construction loans:
One- to four-family		4,971		1.1	%		2,580		0.6	%
Commercial		4,608		1.0	%		2,939		0.6	%
Acquisition and development		-		-			-		-
Total real estate construction loans		9,579		2.1	%		5,519		1.2	%
Other portfolio loans:
Home equity		45,076		9.8	%		46,343		10.4	%
Consumer		48,459		10.5	%		49,854		11.2	%
Commercial		43,096		9.3	%		43,119		9.6	%
Total other portfolio loans		136,631		29.6	%		139,316		31.2	%
Total portfolio loans		461,214		100.0	%		446,988		100.0	%
Allowance for portfolio loan losses		(7,150)					(7,107)
Net deferred portfolio loan costs		5,111					5,122
Premiums and discounts on purchased loans, net		1,802					1,867
Portfolio loans, net	$	460,977				$	446,870

The following table presents the contractual aging of the recorded investment in past due loans by class of portfolio loans as of March 31, 2015 and December 31, 2014:

	Current		30 – 59 Days  Past Due		60 – 89 Days  Past Due		> 90 Days  Past Due		Total Past Due		Total
	(Dollars in Thousands)
March 31, 2015
Real estate loans:
One- to four-family	$	245,868	$	1,685	$	629	$	2,029	$	4,343	$	250,211
Commercial		49,472		-		-		501		501		49,973
Other (land and multi-family)		14,311		61		-		448		509		14,820
Total real estate loans		309,651		1,746		629		2,978		5,353		315,004
Real estate construction loans:
One- to four-family		4,971		-		-		-		-		4,971
Commercial		4,608		-		-		-		-		4,608
Acquisition and development		-		-		-		-		-		-
Total real estate construction loans		9,579		-		-		-		-		9,579
Other portfolio loans:
Home equity		44,562		514		-		-		514		45,076
Consumer		47,906		198		164		191		553		48,459
Commercial		42,751		23		-		322		345		43,096
Total other portfolio loans		135,219		735		164		513		1,412		136,631
Total portfolio loans	$	454,449	$	2,481	$	793	$	3,491	$	6,765	$	461,214
December 31, 2014
Real estate loans:
One- to four-family	$	233,654	$	923	$	338	$	2,236	$	3,497	$	237,151
Commercial		49,478		343		-		501		844		50,322
Other (land and multi-family)		14,569		-		111		-		111		14,680
Total real estate loans		297,701		1,266		449		2,737		4,452		302,153
Real estate construction loans:
One- to four-family		2,580		-		-		-		-		2,580
Commercial		2,939		-		-		-		-		2,939
Acquisition and development		-		-		-		-		-		-
Total real estate construction loans		5,519		-		-		-		-		5,519
Other portfolio loans:
Home equity		45,363		650		118		212		980		46,343
Consumer		49,255		363		51		185		599		49,854
Commercial		42,797		-		-		322		322		43,119
Total other portfolio loans		137,415		1,013		169		719		1,901		139,316
Total portfolio loans	$	440,635	$	2,279	$	618	$	3,456	$	6,353	$	446,988

Nonperforming portfolio loans, including nonaccrual portfolio loans, as of March 31, 2015 and December 31, 2014 were $4.4 million and $4.5 million, respectively. There were no portfolio loans over 90 days past-due and still accruing interest as of March 31, 2015 and December 31, 2014. Nonperforming portfolio loans include both smaller balance homogeneous loans that are collectively evaluated for impairment and larger individually evaluated loans classified as impaired loans.

 

The following table presents performing and nonperforming portfolio loans by class of loans as of March 31, 2015 and December 31, 2014:

	Performing		Nonperforming		Total
	(Dollars in Thousands)
March 31, 2015
Real estate loans:
One- to four-family	$	247,523	$	2,688	$	250,211
Commercial		49,472		501		49,973
Other (land and multi-family)		14,363		457		14,820
Total real estate loans		311,358		3,646		315,004
Real estate construction loans:
One- to four-family		4,971		-		4,971
Commercial		4,608		-		4,608
Acquisition and development		-		-		-
Total real estate construction loans		9,579		-		9,579
Other portfolio loans:
Home equity		44,998		78		45,076
Consumer		48,118		341		48,459
Commercial		42,774		322		43,096
Total other portfolio loans		135,890		741		136,631
Total portfolio loans	$	456,827	$	4,387	$	461,214
December 31, 2014
Real estate loans:
One- to four-family	$	234,301	$	2,850	$	237,151
Commercial		49,821		501		50,322
Other (land and multi-family)		14,569		111		14,680
Total real estate loans		298,691		3,462		302,153
Real estate construction loans:
One- to four-family		2,580		-		2,580
Commercial		2,939		-		2,939
Acquisition and development		-		-		-
Total real estate construction loans		5,519		-		5,519
Other portfolio loans:
Home equity		46,131		212		46,343
Consumer		49,315		539		49,854
Commercial		42,797		322		43,119
Total other portfolio loans		138,243		1,073		139,316
Total portfolio loans	$	442,453	$	4,535	$	446,988

The Company utilizes an internal asset classification system for portfolio loans other than consumer and residential loans as a means of reporting problem and potential problem loans. Under the risk rating system, the Company classifies problem and potential problem loans as “Special Mention”, “Substandard” or “Doubtful”, which correspond to risk ratings five, six and seven, respectively. Portfolio loans that do not currently expose the Company to sufficient risk to warrant classification in one of the aforementioned categories, but possess weaknesses that deserve management’s close attention are deemed to be Special Mention, or risk rated five. Substandard portfolio loans, or risk rated six, include those characterized by the distinct possibility the Company may sustain some loss if the deficiencies are not corrected. Portfolio loans classified as Doubtful, or risk rated seven, have all the weaknesses inherent in those classified Substandard with the added characteristic that the weaknesses present make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. Risk ratings are updated any time the facts and circumstances warrant.

The Company evaluates consumer and residential loans based on whether the loans are performing or nonperforming as well as other factors. One- to four-family residential loan balances are charged down by the expected loss amount at the time they become nonperforming, which is generally 90 days past due. Consumer loans including automobile, manufactured housing, unsecured, and other secured loans are charged-off, net of expected recovery, when the loan becomes significantly past due over a range of up to 180 days, depending on the type of loan.

The following table presents the risk category of commercial and other real estate portfolio loans evaluated by internal asset classification as of March 31, 2015 and December 31, 2014:

	Pass		Special Mention		Substandard		Doubtful		Total
					(Dollars in Thousands)
March 31, 2015
Real estate loans:
Commercial	$	45,885	$	2,387	$	1,701	$	-	$	49,973
Other (land and multi-family)		8,772		-		6,048		-		14,820
Total real estate loans		54,657		2,387		7,749		-		64,793
Real estate construction loans:
Commercial		4,608		-		-		-		4,608
Total real estate construction loans		4,608		-		-		-		4,608
Other portfolio loans:
Commercial		40,600		1,835		661		-		43,096
Total other portfolio loans		40,600		1,835		661		-		43,096
Total portfolio loans	$	99,865	$	4,222	$	8,410	$	-	$	112,497
December 31, 2014
Real estate loans:
Commercial	$	46,749	$	2,084	$	1,489	$	-	$	50,322
Other (land and multi-family)		8,613		-		6,067		-		14,680
Total real estate loans		55,362		2,084		7,556		-		65,002
Real estate construction loans:
Commercial		2,939		-		-		-		2,939
Total real estate construction loans		2,939		-		-		-		2,939
Other portfolio loans:
Commercial		40,439		1,985		695		-		43,119
Total other portfolio loans		40,439		1,985		695		-		43,119
Total portfolio loans	$	98,740	$	4,069	$	8,251	$	-	$	111,060

When establishing the allowance, management categorizes loans into risk categories generally based on the nature of the collateral and the basis of repayment. These risk categories and the relevant risk characteristics are as follows:

Real Estate Loans

⋅ One- to four-family residential loans have historically had less risk than other loan types as they tend to be smaller balance loans without concentrations to a single borrower or group of borrowers. Repayment depends on the individual borrower’s capacity. If the real estate market deteriorates and the value of residential real estate declines, there is a potential risk of loss if actions such as foreclosure or short sale become necessary to collect the loan and private mortgage insurance was not purchased. In addition, depending on the state in which the collateral is located, the risk of loss may increase, due to the time required to complete the foreclosure process on a property.

⋅ Commercial real estate loans generally have greater credit risks compared to one- to four-family residential real estate loans, as they usually involve larger loan balances secured by non-homogeneous or specific use properties. Repayment of these loans typically relies on the successful operation of a business or the generation of lease income by the property and is therefore more sensitive to adverse conditions in the economy and real estate market.

⋅ Other real estate loans include loans secured by multi-family residential real estate and land. Generally these loans involve a greater degree of credit risk than residential real estate loans, but are normally smaller individual loan balances than commercial real estate loans. Land loans involve a greater degree of credit risk due to the lack of cash flow and reliance on borrower’s capacity and multi-family residential real estate loans involve a greater degree of credit risk due to the reliance on the successful operation of the project. Both loan types are also more sensitive to adverse economic conditions.

Real Estate Construction Loans

⋅ Real estate construction loans, including one- to four-family, commercial and acquisition and development loans, generally have greater credit risk than traditional one- to four-family residential and commercial real estate loans. The repayment of these loans can be dependent on the sale of the property to third parties or the successful completion of the improvements by the builder for the end user. In the event a loan is made on property that is not yet approved for the planned development, there is risk that approvals will not be granted or will be delayed. Construction loans also run the risk that improvements will not be completed on time or in accordance with specifications and projected costs. Construction loans include Small Business Administration (SBA) construction loans, which generally have less credit risk than traditional construction loans due to a portion of the balance being guaranteed upon completion of the construction.

Other Loans

⋅ Home equity loans and home equity lines of credit are similar to one- to four-family residential loans and generally carry less risk than other loan types as they tend to be smaller balance loans without concentrations to a single borrower or group of borrowers. However, similar to one- to four-family residential loans, there is a potential risk of loss if the real estate market deteriorates and the value of residential real estate declines.

⋅ Consumer loans often are secured by depreciating collateral, including automobiles and mobile homes, or are unsecured and may carry more risk than real estate secured loans. Consumer loan collections are dependent on the borrower’s continuing financial stability, and thus are more likely to be adversely affected by job loss, divorce, illness, or personal bankruptcy. 

⋅ Commercial loans are secured by business assets or may be unsecured, and repayment is directly dependent on the successful operation of the borrower’s business and ability to convert the assets to operating revenue. These possess greater risk than most other types of loans should the repayment capacity of the borrower not be adequate.

Activity in the allowance for the three months ended March 31, 2015 and 2014 was as follows:

	Beginning  Balance		Charge-Offs		Recoveries		Provisions		Ending  Balance
					(Dollars in Thousands)
March 31, 2015
Real estate loans:
One- to four-family	$	3,206	$	(136)	$	110	$	14	$	3,194
Commercial		1,023		-		-		37		1,060
Other (land and multi-family)		225		(26)		29		(3)		225
Total real estate loans		4,454		(162)		139		48		4,479
Real estate construction loans:
One- to four-family		16		-		-		25		41
Commercial		19		-		-		20		39
Acquisition and development		-		-		-		-		-
Total real estate construction loans		35		-		-		45		80
Other portfolio loans:
Home equity		992		(110)		8		49		939
Consumer		844		(88)		59		35		850
Commercial		663		-		-		(34)		629
Total other portfolio loans		2,499		(198)		67		50		2,418
Unallocated		119		-		-		54		173
Total	$	7,107	$	(360)	$	206	$	197	$	7,150
March 31, 2014
Real estate loans:
One- to four-family	$	3,188	$	(304)	$	88	$	329	$	3,301
Commercial		827		-		1		137		965
Other (land and multi-family)		282		(8)		8		33		315
Total real estate loans		4,297		(312)		97		499		4,581
Real estate construction loans:
One- to four-family		-		-		-		-		-
Commercial		125		-		-		(103)		22
Acquisition and development		-		-		-		-		-
Total real estate construction loans		125		-		-		(103)		22
Other portfolio loans:
Home equity		1,046		(140)		29		(22)		913
Consumer		1,223		(246)		126		(66)		1,037
Commercial		214		-		-		87		301
Total other portfolio loans		2,483		(386)		155		(1)		2,251
Unallocated		41		-		-		55		96
Total	$	6,946	$	(698)	$	252	$	450	$	6,950

The following table presents ending balances for the allowance and portfolio loans based on the impairment method as of March 31, 2015:

	Individually Evaluated for Impairment		Collectively Evaluated for Impairment		Total Ending Balance
			(Dollars in Thousands)
Allowance for portfolio loan losses:
Real estate loans:
One- to four-family	$	1,349	$	1,845	$	3,194
Commercial		302		758		1,060
Other (land and multi-family)		90		135		225
Total real estate loans		1,741		2,738		4,479
Real estate construction loans:
One- to four-family		-		41		41
Commercial		-		39		39
Acquisition and development		-		-		-
Total real estate construction loans		-		80		80
Other portfolio loans:
Home equity		474		465		939
Consumer		223		627		850
Commercial		56		573		629
Total other portfolio loans		753		1,665		2,418
Unallocated		-		173		173
Total ending allowance for portfolio loan losses balance	$	2,494	$	4,656	$	7,150
Portfolio loans:
Real estate loans:
One- to four-family	$	19,662	$	230,549	$	250,211
Commercial		3,844		46,129		49,973
Other (land and multi-family)		7,159		7,661		14,820
Total real estate loans		30,665		284,339		315,004
Real estate construction loans:
One- to four-family		-		4,971		4,971
Commercial		-		4,608		4,608
Acquisition and development		-		-		-
Total real estate construction loans		-		9,579		9,579
Other portfolio loans:
Home equity		3,612		41,464		45,076
Consumer		1,480		46,979		48,459
Commercial		710		42,386		43,096
Total other portfolio loans		5,802		130,829		136,631
Total ending portfolio loans balance	$	36,467	$	424,747	$	461,214

The following table presents ending balances for the allowance and portfolio loans based on the impairment method as of December 31, 2014:

	Individually Evaluated for Impairment		Collectively Evaluated for Impairment		Total Ending Balance
			(Dollars in Thousands)
Allowance for portfolio loan losses:
Real estate loans:
One- to four-family	$	1,374	$	1,832	$	3,206
Commercial		311		712		1,023
Other (land and multi-family)		91		134		225
Total real estate loans		1,776		2,678		4,454
Real estate construction loans:
One- to four-family		-		16		16
Commercial		-		19		19
Acquisition and development		-		-		-
Total real estate construction loans		-		35		35
Other portfolio loans:
Home equity		490		502		992
Consumer		217		627		844
Commercial		57		606		663
Total other portfolio loans		764		1,735		2,499
Unallocated		-		119		119
Total ending allowance for portfolio loan losses balance	$	2,540	$	4,567	$	7,107
Portfolio loans:
Real estate loans:
One- to four-family	$	18,885	$	218,266	$	237,151
Commercial		3,884		46,438		50,322
Other (land and multi-family)		7,131		7,549		14,680
Total real estate loans		29,900		272,253		302,153
Real estate construction loans:
One- to four-family		-		2,580		2,580
Commercial		-		2,939		2,939
Acquisition and development		-		-		-
Total real estate construction loans		-		5,519		5,519
Other portfolio loans:
Home equity		3,860		42,483		46,343
Consumer		1,489		48,365		49,854
Commercial		809		42,310		43,119
Total other portfolio loans		6,158		133,158		139,316
Total ending portfolio loans balance	$	36,058	$	410,930	$	446,988

Portfolio loans for which concessions have been granted as a result of the borrower’s financial difficulties are considered a TDR. These concessions, which in general are applied to all categories of portfolio loans, may include a reduction in the interest rate on the loan, payment extensions, forgiveness of principal, or a combination of these or other actions intended to maximize collection. The resulting TDR impairment is included in specific reserves.

For homogeneous loan categories, such as one- to four-family residential loans and home equity loans, the amount of impairment resulting from the modification of the loan terms is calculated in aggregate by category of portfolio loan. The resulting impairment is included in specific reserves. If an individual homogeneous loan defaults under terms of the TDR and becomes nonperforming, the Bank follows its usual practice of charging the loan down to its estimated fair value and the charge-off is considered as a factor in determining the amount of the general component of the allowance.

For larger non-homogeneous loans, each loan that is modified is evaluated individually for impairment based on either discounted cash flow or, for collateral-dependent loans, the appraised value of the collateral less selling costs. If the loan is not collateral-dependent, the amount of the impairment, if any, is recorded as a specific reserve in the allowance. If the loan is collateral-dependent, the amount of the impairment is charged off. There was an allocated allowance for loans individually evaluated for impairment of approximately $0.4 million at both March 31, 2015 and December 31, 2014.

Portfolio loans modified as TDRs with market rates of interest are classified as impaired portfolio loans. Once the TDR loan has performed for 12 months in accordance with the modified terms it is classified as a performing impaired loan. TDRs which do not perform in accordance with modified terms are reported as nonperforming portfolio loans. The policy for returning a nonperforming loan to accrual status is the same for any loan irrespective of whether the loan has been modified. As such, loans which are nonperforming prior to modification continue to be accounted for as nonperforming loans until they have demonstrated the ability to maintain sustained performance over a period of time, but no less than six months, and are reported as impaired nonperforming loans. Following this period such a modified loan is returned to accrual status and is classified as impaired and reported as a performing TDR. TDRs classified as impaired loans as of March 31, 2015 and December 31, 2014 were as follows:

	March 31, 2015		December 31, 2014
	(Dollars in Thousands)
Real estate loans:
One- to four-family	$	19,480	$	18,885
Commercial		3,563		3,248
Other (land and multi-family)		6,994		6,947
Total real estate loans		30,037		29,080
Real estate construction loans:
One- to four-family		-		-
Commercial		-		-
Acquisition and development		-		-
Total real estate construction loans		-		-
Other portfolio loans:
Home equity		3,612		3,816
Consumer		1,428		1,379
Commercial		554		606
Total other portfolio loans		5,594		5,801
Total TDRs classified as impaired loans	$	35,631	$	34,881

The TDR balances included performing TDRs of $22.1 million and $21.0 million as of March 31, 2015 and December 31, 2014, respectively. There were no commitments to lend additional amounts on TDRs as of March 31, 2015 and December 31, 2014.

 

The Bank is proactive in modifying residential, home equity and consumer loans in early stage delinquency because management believes modifying the loan prior to it becoming nonperforming results in the least cost to the Bank. The Bank also modifies commercial real estate and other large commercial loans as TDRs rather than pursuing other means of collection when it believes the borrower is committed to the successful repayment of the loan and the business operations are likely to support the modified loan terms.

The following table presents information on TDRs during the three months ended March 31, 2015 and 2014:

	Number of Contracts	Pre-Modification  Outstanding Recorded  Investments		Post-Modification  Outstanding Recorded  Investments
		(Dollars in Thousands)
March 31, 2015
Troubled debt restructuring:
Real estate loans:
One- to four-family	9	$	1,099	$	1,099
Other (land and multi-family)	2		61		61
Total real estate loans	11		1,160		1,160
Other portfolio loans:
Home equity	3		247		247
Consumer	2		10		10
Total other portfolio loans	5		257		257
Total troubled debt restructurings	16	$	1,417	$	1,417
March 31, 2014
Troubled debt restructuring:
Real estate loans:
One- to four-family	11	$	3,517	$	3,517
Total real estate loans	11		3,517		3,517
Other portfolio loans:
Home equity	3		134		134
Total other portfolio loans	3		134		134
Total troubled debt restructurings	14	$	3,651	$	3,651

There were no subsequent defaults on portfolio loans that were restructured as TDRs during the three months ended March 31, 2015 and 2014.

The following table presents information about impaired portfolio loans as of March 31, 2015:

	Recorded		Unpaid		Related
	Investment		Principal Balance		Allowance
			(Dollars in Thousands)
With no related allowance recorded:
Real estate loans:
One- to four-family	$	-	$	-	$	-
Commercial		1,172		1,172		-
Other (land and multi-family)		6,048		6,048		-
Total real estate loans		7,220		7,220		-
Real estate construction loans:
One- to four-family		-		-		-
Commercial		-		-		-
Acquisition and development		-		-		-
Total real estate construction loans		-		-		-
Other portfolio loans:
Home equity		-		-		-
Consumer		-		-		-
Commercial		280		280		-
Total other portfolio loans		280		280		-
Total with no related allowance recorded	$	7,500	$	7,500	$	-
With an allowance recorded:
Real estate loans:
One- to four-family	$	19,662	$	19,761	$	1,349
Commercial		2,672		2,672		302
Other (land and multi-family)		1,111		1,162		90
Total real estate loans		23,445		23,595		1,741
Real estate construction loans:
One- to four-family		-		-		-
Commercial		-		-		-
Acquisition and development		-		-		-
Total real estate construction loans		-		-		-
Other portfolio loans:
Home equity		3,612		3,769		474
Consumer		1,480		1,480		223
Commercial		430		430		56
Total other portfolio loans		5,522		5,679		753
Total with an allowance recorded	$	28,967	$	29,274	$	2,494

The following table presents information about impaired portfolio loans as of December 31, 2014:

	Recorded Investment		Unpaid Principal Balance		Related Allowance
			(Dollars in Thousands)
With no related allowance recorded:
Real estate loans:
One- to four-family	$	-	$	-	$	-
Commercial		1,182		1,182		-
Other (land and multi-family)		5,694		5,694		-
Total real estate loans		6,876		6,876		-
Real estate construction loans:
One- to four-family		-		-		-
Commercial		-		-		-
Acquisition and development		-		-		-
Total real estate construction loans		-		-		-
Other portfolio loans:
Home equity		-		-		-
Consumer		-		-		-
Commercial		371		371		-
Total other portfolio loans		371		371		-
Total with no related allowance recorded	$	7,247	$	7,247	$	-
With an allowance recorded:
Real estate loans:
One- to four-family	$	18,885	$	18,984	$	1,374
Commercial		2,702		2,702		311
Other (land and multi-family)		1,437		1,488		91
Total real estate loans		23,024		23,174		1,776
Real estate construction loans:
One- to four-family		-		-		-
Commercial		-		-		-
Acquisition and development		-		-		-
Total real estate construction loans		-		-		-
Other portfolio loans:
Home equity		3,860		4,063		490
Consumer		1,489		1,489		217
Commercial		438		438		57
Total other portfolio loans		5,787		5,990		764
Total with an allowance recorded	$	28,811	$	29,164	$	2,540

The following table presents interest income on impaired portfolio loans by class of portfolio loans for the three months ended March 31, 2015 and 2014:

			Interest Income		Cash Basis  Interest Income
	Average Balance		Recognized		Recognized
			(Dollars in Thousands)
March 31, 2015
Real estate loans:
One- to four-family	$	19,274	$	235	$	-
Commercial		3,864		38		-
Other (land and multi-family)		7,145		61		-
Total real estate loans		30,283		334		-
Real estate construction loans:
One- to four-family		-		-		-
Commercial		-		-		-
Acquisition and development		-		-		-
Total real estate construction loans		-		-		-
Other portfolio loans:
Home equity		3,736		44		-
Consumer		1,485		23		-
Commercial		760		6		-
Total other portfolio loans		5,981		73		-
Total	$	36,264	$	407	$	-
March 31, 2014
Real estate loans:
One- to four-family	$	16,014	$	186	$	-
Commercial		6,462		80		-
Other (land and multi-family)		7,108		68		-
Total real estate loans		29,584		334		-
Real estate construction loans:
One- to four-family		-		-		-
Commercial		-		-		-
Acquisition and development		-		-		-
Total real estate construction loans		-		-		-
Other portfolio loans:
Home equity		3,817		46		-
Consumer		714		16		-
Commercial		608		9		-
Total other portfolio loans		5,139		71		-
Total	$	34,723	$	405	$	-

The Company had $2.8 million and $4.2 million of one- to four-family residential and home equity loans in process of foreclosure as of March 31, 2015 and December 31, 2014, respectively.

The Company has originated portfolio loans with the Company’s directors and executive officers and their associates. These loans totaled $0.2 million as of both March 31, 2015 and December 31, 2014. The activity on these loans during the three months ended March 31, 2015 and the year ended December 31, 2014 was as follows:

 

	March 31, 2015		December 31, 2014
	(Dollars in Thousands)
Beginning balance	$	169	$	137
New portfolio loans and advances on existing loans		27		-
Effect of changes in related parties		-		37
Repayments		(2)		(5)
Ending balance	$	194	$	169