Loans and Servicing (Tables)

9 Months Ended

Sep. 30, 2013

	At					At
	September 30,					December 31,
	2013					2012
	Amount			Percent		Amount			Percent
	(Dollars in thousands)

Residential loans:
One- to four-family	$	93,736		45.17	%	$	95,546		52.54	%
Home equity loans and lines of credit	15,240			7.34		15,560			8.56
Total residential mortgage loans	108,976			52.51		111,106			61.10

Commercial loans:
One- to four-family investment property	13,017			6.27		11,355			6.25
Multi-family real estate	5,731			2.76		5,346			2.94
Commercial real estate	47,987			23.13		32,730			18.00
Commercial business	11,408			5.50		8,653			4.76
Total commercial loans	78,143			37.66		58,084			31.95

Construction loans:
One- to four-family	7,897			3.81		7,379			4.06
Multi-family	6,947			3.35		3,665			2.02
Non-residential	5,120			2.47		1,161			0.64
Total construction loans	19,964			9.63		12,205			6.72

Consumer	419			0.20		414			0.23

Total loans	207,502			100.00	%	181,809			100.00	%

Other items:
Net deferred loan costs	494					570
Allowance for loan losses	(2,096		)			(1,780		)

Total loans, net	$	205,900				$	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)
Allowance for loan losses

Nine months ended September 30, 2013
Beginning Balance	$	378		$	254		$	62		$	40		$	668	$	159		$	149		$	34		$	25	$	11		$	1,780
Charge-offs	(130		)	—			—			—			—		—			—			—			—		(7		)	(137		)
Recoveries	43			—			—			—			—		—			—			—			—		3			46
Provision (benefit)	(4		)	(18		)	10			3			216		49			38			30			78		5			407
Ending Balance	$	287		$	236		$	72		$	43		$	884	$	208		$	187		$	64		$	103	$	12		$	2,096

Nine months ended September 30, 2012
Beginning Balance	$	346		$	341		$	59		$	98		$	400	$	234		$	228		$	98		$	11	$	9		$	1,824
Charge-offs	(144		)	—			—			—			—		(11		)	(191		)	—			—		(31		)	(377		)
Recoveries	137			—			—			—			—		—			—			—			—		5			142
Provision (benefit)	21			(82		)	(8		)	(27		)	248		(99		)	113			(32		)	1		27			162
Ending Balance	$	360		$	259		$	51		$	71		$	648	$	124		$	150		$	66		$	12	$	10		$	1,751

At September 30, 2013

Allowance for loan losses
Individually evaluated for impairment	$	7		$	—		$	—		$	—		$	210	$	—		$	—		$	—		$	—	$	—		$	217
Collectively evaluated for impairment	280			236			72			43			674		208			187			64			103		12			1,879
	$	287		$	236		$	72		$	43		$	884	$	208		$	187		$	64		$	103	$	12		$	2,096

Loans
Individually evaluated for impairment	$	322		$	429		$	—		$	—		$	2,408	$	—		$	—		$	—		$	—	$	—		$	3,159
Collectively evaluated for impairment	93,414			14,811			13,017			5,731			45,579		11,408			7,897			6,947			5,120		419			204,343
	$	93,736		$	15,240		$	13,017		$	5,731		$	47,987	$	11,408		$	7,897		$	6,947		$	5,120	$	419		$	207,502

At December 31, 2012

Allowance for loan losses
Individually evaluated for impairment	$	93		$	13		$	—		$	—		$	214	$	—		$	—		$	—		$	—	$	—		$	320
Collectively evaluated for impairment	285			241			62			40			454		159			149			34			25		11			1,460
	$	378		$	254		$	62		$	40		$	668	$	159		$	149		$	34		$	25	$	11		$	1,780

Loans
Individually evaluated for impairment	$	658		$	45		$	—		$	—		$	2,412	$	—		$	—		$	—		$	—	$	—		$	3,115
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
	$	95,546		$	15,560		$	11,355		$	5,346		$	32,730	$	8,653		$	7,379		$	3,665		$	1,161	$	414		$	181,809

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 September 30, 2013:

Residential loans:
One- to four-family	$	—	$	—	$	—	$	—	$	93,736	$	93,736	$	—	$	—
Home equity loans and lines of credit	15		—		399		414		14,826		15,240		—		399

Commercial loans:
One- to four-family investment property	—		—		—		—		13,017		13,017		—		—
Multi-family real estate	—		—		—		—		5,731		5,731		—		—
Commercial real estate	570		—		—		570		47,417		47,987		—		—
Commercial business	—		—		—		—		11,408		11,408		—		—

Construction loans:
One- to four-family	—		—		—		—		7,897		7,897		—		—
Multi-family	—		—		—		—		6,947		6,947		—		—
Non-residential	—		—		—		—		5,120		5,120		—		—

Consumer	1		—		—		1		418		419		—		—

Total	$	586	$	—	$	399	$	985	$	206,517	$	207,502	$	—	$	399

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 September 30, 2013

Impaired loans without a valuation allowance

Residential loans:
One- to four-family	$	—	$	—	$	—	$	—	$	—
Home equity loans and lines of credit	429		429		—		390		1
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	$	429	$	429	$	—	$	390	$	1

Impaired loans with a valuation allowance

Residential loans:
One- to four-family	$	322	$	322	$	7	$	397	$	9
Home equity loans and lines of credit	—		—		—		11		—

Commercial loans:
One- to four-family investment property	—		—		—		—		—
Multi-family real estate	—		—		—		—		—
Commercial real estate	2,408		2,511		210		2,410		93
Commercial business	—		—		—		—		—

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

Consumer	—		—		—		—		—
Total with an allowance recorded	$	2,730	$	2,833	$	217	$	2,818	$	102

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 September 30, 2013

Classification:
Not formally rated	$	93,414	$	14,841	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	419	$	108,674
Pass	—		—		13,017		5,731		45,579		11,343		7,897		6,947		5,120		—		95,634
Special mention	—		—		—		—		—		—		—		—		—		—		—
Substandard	322		399		—		—		2,408		65		—		—		—		—		3,194
Doubtful	—		—		—		—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—		—		—		—
Total loans	$	93,736	$	15,240	$	13,017	$	5,731	$	47,987	$	11,408	$	7,897	$	6,947	$	5,120	$	419	$	207,502

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

	Nine Months Ended
	September 30,
	2013			2012
	(In thousands)

Mortgage servicing rights:
Balance at beginning of period	$	910		$	475
Additions	440			386
Disposals	—			—
Amortization	(254		)	(173		)
Balance at end of period	1,096			688

Valuation allowances:
Balance at beginning of period	20			17
Additions	58			60
Recoveries	(15		)	—
Write-downs	—			—
Balance at end of period	63			77

Mortgage servicing assets, net	$	1,033		$	611

Fair value of mortgage servicing assets	$	1,286		$	639

- 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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