LOANS AND SERVICING (Tables)

12 Months Ended

Dec. 31, 2012

	December 31,
	2012			2011
	(In thousands)
Residential loans:
One- to four-family	$	95,546		$	62,613
Home equity loans and lines of credit	15,560			17,118
Total residential mortgage loans	111,106			79,731

Commercial loans:
One- to four-family investment property	11,355			10,816
Multi-family real estate	5,346			13,037
Commercial real estate	32,730			25,399
Commercial business	8,653			10,137
Total commercial loans	58,084			59,389

Construction loans:
One- to four-family	7,379			11,941
Multi-family	3,665			10,656
Non-residential	1,161			629
Total construction loans	12,205			23,226

Consumer	414			451

Total loans	181,809			162,797

Other items:
Net deferred loan costs	570			147
Allowance for loan losses	(1,780		)	(1,824		)

Total loans, net	$	180,599		$	161,120

Schedule of analysis of allowance for loan losses

	Years Ended
	December 31,
	2012			2011
	(In thousands)

Balance at beginning of period	$	1,824		$	1,651
Provision for loan losses	200			949
Recoveries	142			12
Charge-offs	(386		)	(788		)

Balance at end of period	$	1,780		$	1,824

Schedule of information pertaining to the allowance for loan losses by portfolio segment

Further information pertaining to the allowance for loan losses at and for the year ended December 31, 2012 follows:

	Residential						Commercial										Construction
	One- to four- family			Home equity loans and lines of credit			One- to four- family investment property		Multi-family real estate			Commercial real estate		Commercial business			One- to four- family			Multi-family			Non- residential		Consumer			Total
	(In thousands)

Allowance for loan losses

Beginning Balance	$	346		$	341		$	59	$	98		$	400	$	234		$	228		$	98		$	11	$	9		$	1,824
Charge-offs	(144		)	—			—		—			—		(13		)	(191		)	—			—		(38		)	(386		)
Recoveries	137			—			—		—			—		—			—			—			—		5			142
Provision (benefit)	39			(87		)	3		(58		)	268		(62		)	112			(64		)	14		35			200
Ending Balance	$	378		$	254		$	62	$	40		$	668	$	159		$	149		$	34		$	25	$	11		$	1,780

Ending balance:
individually evaluated for impairment	$	93		$	13		$	—	$	—		$	214	$	—		$	—		$	—		$	—	$	—		$	320

Ending balance:
collectively evaluated for impairment	$	285		$	241		$	62	$	40		$	454	$	159		$	149		$	34		$	25	$	11		$	1,460

Loans

Ending Balance	$	95,546		$	15,560		$	11,355	$	5,346		$	32,730	$	8,653		$	7,379		$	3,665		$	1,161	$	414		$	181,809

Ending balance:
individually evaluated for impairment	$	658		$	45		$	—	$	—		$	2,412	$	—		$	—		$	—		$	—	$	—		$	3,115

Ending balance:
collectively evaluated for impairment	$	94,888		$	15,515		$	11,355	$	5,346		$	30,318	$	8,653		$	7,379		$	3,665		$	1,161	$	414		$	178,694

Further information pertaining to the allowance for loan losses at December 31, 2011 follows:

	Residential					Commercial												Construction
	One- to four- family		Home equity loans and lines of credit			One- to four- family investment property			Multi-family real estate			Commercial real estate			Commercial business			One- to four- family		Multi-family		Non- residential		Consumer			Total
	(In thousands)

Allowance for loan losses

Beginning Balance	$	233	$	320		$	60		$	106		$	431		$	304		$	93	$	83	$	6	$	15		$	1,651
Charge-offs	—		(741		)	—			—			(10		)	(3		)	—		—		—		(34		)	(788		)
Recoveries	9		—			—			—			—			1			—		—		—		2			12
Provision (benefit)	104		762			(1		)	(8		)	(21		)	(68		)	135		15		5		26			949
Ending Balance	$	346	$	341		$	59		$	98		$	400		$	234		$	228	$	98	$	11	$	9		$	1,824

Ending balance:
individually evaluated for impairment	$	185	$	13		$	—		$	—		$	—		$	—		$	121	$	—	$	—	$	—		$	319

Ending balance:
collectively evaluated for impairment	$	161	$	328		$	59		$	98		$	400		$	234		$	107	$	98	$	11	$	9		$	1,505

Loans

Ending Balance	$	62,613	$	17,118		$	10,816		$	13,037		$	25,399		$	10,137		$	11,941	$	10,656	$	629	$	451		$	162,797

Ending balance:
individually evaluated for impairment	$	898	$	13		$	—		$	—		$	314		$	—		$	1,168	$	1,269	$	—	$	—		$	3,662

Ending balance:
collectively evaluated for impairment	$	61,715	$	17,105		$	10,816		$	13,037		$	25,085		$	10,137		$	10,773	$	9,387	$	629	$	451		$	159,135

Summary of past-due and non-accrual loans

The following is a summary of past-due and non-accrual loans at December 31, 2012:

	Loans delinquent for:												90 days
					90 days		Total		Total		Total		or more		Non-accrual
	30 - 59 Days		60 - 89 Days		or more		Past Due		Current		Loans		and accruing		Loans
	(In thousands)

Residential loans:
One- to four-family	$	—	$	284	$	374	$	658	$	94,888	$	95,546	$	—	$	658
Home equity loans and lines of credit	16		—		399		415		15,145		15,560		—		412

Commercial loans:
One- to four-family investment property	—		—		—		—		11,355		11,355		—		—
Multi-family real estate	—		—		—		—		5,346		5,346		—		—
Commercial real estate	1,258		—		—		1,258		31,472		32,730		—		2,105
Commercial business	—		—		—		—		8,653		8,653		—		—

Construction loans:
One- to four-family	—		—		—		—		7,379		7,379		—		—
Multi-family	—		—		—		—		3,665		3,665		—		—
Non-residential	—		—		—		—		1,161		1,161		—		—

Consumer	20		2		—		22		392		414		—		—

Total	$	1,294	$	286	$	773	$	2,353	$	179,456	$	181,809	$	—	$	3,175

The following is a summary of past-due and non-accrual loans at December 31, 2011:

	Loans delinquent for:												90 days
					90 days		Total		Total		Total		or more		Non-accrual
	30 - 59 Days		60 - 89 Days		or more		Past Due		Current		Loans		and accruing		Loans
	(In thousands)

Residential loans:
One- to four-family	$	431	$	175	$	391	$	997	$	61,616	$	62,613	$	—	$	683
Home equity loans and lines of credit	—		—		—		—		17,118		17,118		—		13

Commercial loans:
One- to four-family investment property	—		—		—		—		10,816		10,816		—		—
Multi-family real estate	—		—		—		—		13,037		13,037		—		—
Commercial real estate	314		—		—		314		25,085		25,399		—		—
Commercial business	—		—		—		—		10,137		10,137		—		—

Construction loans:
One- to four-family	—		100		1,168		1,268		10,673		11,941		—		1,168
Multi-family	—		—		—		—		10,656		10,656		—		1,269
Non-residential	—		—		—		—		629		629		—		—

Consumer	4		—		—		4		447		451		—		—

Total	$	749	$	275	$	1,559	$	2,583	$	160,214	$	162,797	$	—	$	3,133

Schedule of analysis of impaired loans

The following is an analysis of impaired loans at December 31, 2012:

			Unpaid				Average		Interest
	Recorded		Principal		Related		Recorded		Income
	Investment		Balance		Allowance		Investment		Recognized
	(In thousands)

Impaired loans without a valuation allowance

Residential loans:
One- to four-family	$	—	$	—	$	—	$	176	$	—
Home equity loans and lines of credit	32		32		—		30		—
Commercial loans:
One- to four-family investment property	—		—		—		—		—
Multi-family real estate	—		—		—		—		—
Commercial real estate	—		—		—		—		—
Commercial business	—		—		—		—		—
Construction loans:
One- to four-family	—		—		—		801		—
Multi-family	—		—		—		344		23
Non-residential	—		—		—		—		—
Consumer	—		—		—		—		—

Total impaired with no related allowance	$	32	$	32	$	—	$	1,351	$	23

Impaired loans with a valuation allowance

Residential loans:
One- to four-family	$	658	$	684	$	93	$	734	$	10
Home equity loans and lines of credit	13		13		13		13		1
Commercial loans:
One- to four-family investment property	—		—		—		—		—
Multi-family real estate	—		—		—		—		—
Commercial real estate	2,412		2,519		214		958		19
Commercial business	—		—		—		6		—
Construction loans:
One- to four-family	—		—		—		—		—
Multi-family	—		—		—		—		—
Non-residential	—		—		—		—		—
Consumer	—		—		—		—		—

Total with an allowance recorded	$	3,083	$	3,216	$	320	$	1,711	$	30

The following is an analysis of impaired loans at December 31, 2011:

			Unpaid				Average		Interest
	Recorded		Principal		Related		Recorded		Income
	Investment		Balance		Allowance		Investment		Recognized
	(In thousands)

Impaired loans without a valuation allowance

Residential loans:
One- to four-family	$	—	$	—	$	—	$	16	$	—
Home equity loans and lines of credit	—		—		—		—		—
Commercial loans:
One- to four-family investment property	—		—		—		—		—
Multi-family real estate	—		—		—		—		—
Commercial real estate	314		314		—		145		10
Commercial business	—		—		—		63		42
Construction loans:
One- to four-family	732		732		—		225		—
Multi-family	1,269		1,269		—		448		62
Non-residential	—		—		—		—		—
Consumer	—		—		—		—		—

Total impaired with no related allowance	$	2,315	$	2,315	$	—	$	897	$	114

Impaired loans with a valuation allowance

Residential loans:
One- to four-family	$	898	$	898	$	185	$	297	$	7
Home equity loans and lines of credit	13		13		13		182		1
Commercial loans:
One- to four-family investment property	—		—		—		—		—
Multi-family real estate	—		—		—		—		—
Commercial real estate	—		—		—		—		—
Commercial business	—		—		—		—		—
Construction loans:
One- to four-family	436		436		121		226		19
Multi-family	—		—		—		—		—
Non-residential	—		—		—		—		—
Consumer	—		—		—		—		—

Total with an allowance recorded	$	1,347	$	1,347	$	319	$	705	$	27

Summary of loans modified and classified as troubled debt restructures

	Years Ended December 31,
	2012					2011
		Pre-Modification		Post-Modification			Pre-Modification		Post-Modification
	Number of	Outstanding Recorded		Outstanding Recorded		Number of	Outstanding Recorded		Outstanding Recorded
	Contracts	Investment		Investment		Contracts	Investment		Investment
	(Dollars in thousands)

Residential loans:
One- to four-family	—	$	—	$	—	—	$	—	$	—
Home equity loans and lines of credit	1	—		34		—	—		—

Commercial loans:
One- to four-family investment property	—	—		—		—	—		—
Multi-family real estate	—	—		—		—	—		—
Commercial real estate	1	2,105		2,105		1	312		315
Commercial business	—	—		—		—	—		—

Construction loans:
One- to four-family	1	732		767		—	—		—
Multi-family	—	—		—		—	—		—
Non-residential	—	—		—		—	—		—

Consumer	—	—		—		—	—		—

Total troubled debt restructurings	3	$	2,837	$	2,906	1	$	312	$	315

Schedule of loans by risk rating

	Residential				Commercial								Construction
	One- to four-family		Home equity loans and lines of credit		One- to four-family investment property		Multi-family real estate		Commercial real estate		Commercial business		One- to four-family		Multi-family		Non- residential		Consumer		Total
	(In thousands)
At December 31, 2012

Classification:
Not formally rated	$	94,888	$	15,116	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	414	$	110,418
Pass	—		—		11,355		5,346		29,147		8,486		7,379		3,665		1,161		—		66,539
Special mention	—		—		—		—		—		—		—		—		—		—		—
Substandard	658		444		—		—		3,583		167		—		—		—		—		4,852
Doubtful	—		—		—		—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—		—		—		—
Total loans	$	95,546	$	15,560	$	11,355	$	5,346	$	32,730	$	8,653	$	7,379	$	3,665	$	1,161	$	414	$	181,809

At December 31, 2011

Classification:
Not formally rated	$	61,715	$	17,105	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	451	$	79,271
Pass	—		—		10,816		13,037		21,643		9,208		10,773		9,387		139		—		75,003
Special mention	—		—		—		—		458		289		—		—		—		—		747
Substandard	898		13		—		—		3,298		640		1,168		1,269		490		—		7,776
Doubtful	—		—		—		—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—		—		—		—
Total loans	$	62,613	$	17,118	$	10,816	$	13,037	$	25,399	$	10,137	$	11,941	$	10,656	$	629	$	451	$	162,797

Schedule of mortgage servicing rights capitalized and amortized

	Years Ended
	December 31,
	2012			2011
	(In thousands)

Mortgage servicing rights:
Balance at beginning of period	$	475		$	424
Additions	697			186
Disposals	—			—
Amortization	(262		)	(135		)
Balance at end of period	910			475

Valuation allowances:
Balance at beginning of period	17			4
Additions	60			55
Recoveries	(57		)	(42		)
Write-downs	—			—
Balance at end of period	20			17

Mortgage servicing assets, net	$	890		$	458

Fair value of mortgage servicing assets	$	1,099		$	493

- Definition

Tabular disclosure of the activity in the balance of servicing assets (including a description of where changes in fair value are reported in the statement of income for each period for which results of operations are presented), including but not limited to, the following: beginning and ending balances, additions (for instance, through purchases of servicing assets), disposals, changes in fair value during the period resulting from changes in inputs or assumptions used in the valuation model, other changes in fair value along with a description of those changes, and other changes that affect the balance along with a description of those changes.

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