Loans and Servicing (Tables)

3 Months Ended

Mar. 31, 2013

	At					At
	March 31,					December 31,
	2013					2012
	Amount			Percent		Amount			Percent
	(Dollars in thousands)

Residential loans:
One- to four-family	$	94,689		51.46	%	$	95,546		52.54	%
Home equity loans and lines of credit	14,813			8.05		15,560			8.56
Total residential mortgage loans	109,502			59.51		111,106			61.10

Commercial loans:
One- to four-family investment property	12,164			6.61		11,355			6.25
Multi-family real estate	5,451			2.96		5,346			2.94
Commercial real estate	34,067			18.51		32,730			18.00
Commercial business	8,361			4.54		8,653			4.76
Total commercial loans	60,043			32.62		58,084			31.95

Construction loans:
One- to four-family	6,545			3.56		7,379			4.06
Multi-family	3,975			2.16		3,665			2.02
Non-residential	3,572			1.94		1,161			0.64
Total construction loans	14,092			7.66		12,205			6.72

Consumer	384			0.21		414			0.23

Total loans	184,021			100.00	%	181,809			100.00	%

Other items:
Net deferred loan costs	546					570
Allowance for loan losses	(1,741		)			(1,780		)

Total loans, net	$	182,826				$	180,599

Schedule of analysis of allowance for loan losses

	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 March 31, 2013

Allowance for loan losses

Beginning Balance	$	378		$	254		$	62	$	40		$	668	$	159		$	149		$	34		$	25	$	11		$	1,780
Charge-offs	(130		)	—			—		—			—		—			—			—			—		(2		)	(132		)
Recoveries	—			—			—		—			—		—			—			—			—		3			3
Provision (benefit)	49			(12		)	5		1			20		(6		)	(20		)	3			52		(2		)	90
Ending Balance	$	297		$	242		$	67	$	41		$	688	$	153		$	129		$	37		$	77	$	10		$	1,741

Ending balance:
individually evaluated for impairment	$	14		$	13		$	—	$	—		$	213	$	—		$	—		$	—		$	—	$	—		$	240

Ending balance:
collectively evaluated for impairment	$	283		$	229		$	67	$	41		$	475	$	153		$	129		$	37		$	77	$	10		$	1,501

Loans

Ending Balance	$	94,689		$	14,813		$	12,164	$	5,451		$	34,067	$	8,361		$	6,545		$	3,975		$	3,572	$	384		$	184,021

Ending balance:
individually evaluated for impairment	$	280		$	443		$	—	$	—		$	2,410	$	—		$	—		$	—		$	—	$	—		$	3,133

Ending balance:
collectively evaluated for impairment	$	94,409		$	14,370		$	12,164	$	5,451		$	31,657	$	8,361		$	6,545		$	3,975		$	3,572	$	384		$	180,888

At December 31, 2012

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

Summary of past-due and non-accrual loans

	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)
At March 31, 2013:

Residential loans:
One- to four-family	$	—	$	—	$	—	$	—	$	94,689	$	94,689	$	—	$	280
Home equity loans and lines of credit	—		—		399		399		14,414		14,813		—		412

Commercial loans:
One- to four-family investment property	—		—		—		—		12,164		12,164		—		—
Multi-family real estate	—		—		—		—		5,451		5,451		—		—
Commercial real estate	—		—		—		—		34,067		34,067		—		2,105
Commercial business	—		—		—		—		8,361		8,361		—		—

Construction loans:
One- to four-family	—		—		—		—		6,545		6,545		—		—
Multi-family	—		—		—		—		3,975		3,975		—		—
Non-residential	—		—		—		—		3,572		3,572		—		—

Consumer	1		—		—		1		383		384		—		—

Total	$	1	$	—	$	399	$	400	$	183,621	$	184,021	$	—	$	2,797

At December 31, 2012:

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

Schedule of analysis of impaired loans

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

At March 31, 2013

Impaired loans without a valuation allowance

Residential loans:
One- to four-family	$	—	$	—	$	—	$	—	$	—
Home equity loans and lines of credit	430		430		—		331		—
Commercial loans:
One- to four-family investment property	—		—		—		—		—
Multi-family real estate	—		—		—		—		—
Commercial real estate	—		—		—		—		—
Commercial business	—		—		—		—		—

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

Consumer	—		—		—		—		—

Total impaired with no related allowance	$	430	$	430	$	—	$	331	$	—

Impaired loans with a valuation allowance

Residential loans:
One- to four-family	$	280	$	280	$	14	$	563	$	4
Home equity loans and lines of credit	13		13		13		13		—

Commercial loans:
One- to four-family investment property	—		—		—		—		—
Multi-family real estate	—		—		—		—		—
Commercial real estate	2,410		2,517		213		2,411		26
Commercial business	—		—		—		—		—

Construction loans:
One- to four-family	—		—		—		—		—
Multi-family	—		—		—		—		—
Non-residential	—		—		—		—		—
Consumer	—		—		—		—		—

Total with an allowance recorded	$	2,703	$	2,810	$	240	$	2,987	$	30

At December 31, 2012

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

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 March 31, 2013

Classification:
Not formally rated	$	94,409	$	14,370	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	384	$	109,163
Pass	—		—		12,164		5,451		30,949		8,294		6,545		3,975		3,572		—		70,950
Special mention	—		—		—		—		—		—		—		—		—		—		—
Substandard	280		443		—		—		3,118		67		—		—		—		—		3,908
Doubtful	—		—		—		—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—		—		—		—
Total loans	$	94,689	$	14,813	$	12,164	$	5,451	$	34,067	$	8,361	$	6,545	$	3,975	$	3,572	$	384	$	184,021

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

Schedule of mortgage servicing rights capitalized and amortized

	Three Months Ended
	March 31,
	2013			2012
	(In thousands)

Mortgage servicing rights:
Balance at beginning of period	$	910		$	475
Additions	227			80
Disposals	—			—
Amortization	(79		)	(42		)
Balance at end of period	1,058			513

Valuation allowances:
Balance at beginning of period	20			17
Additions	—			54
Recoveries	(15		)	—
Write-downs	—			—
Balance at end of period	5			71

Mortgage servicing assets, net	$	1,053		$	442

Fair value of mortgage servicing assets	$	1,403		$	459

- 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.

+ References+ Details