LOANS RECEIVABLE, NET

6 Months Ended

Jun. 30, 2011

LOANS RECEIVABLE, NET [Abstract]

LOANS RECEIVABLE, NET

NOTE 6 - LOANS RECEIVABLE, NET

Loans receivable, net consisted of the following as of:

	June 30,			December 31,
(Dollars in thousands)	2011			2010
Commercial real estate loans:
Unpaid principal balance	$	1,965		$	2,015
Allowance for loan losses		(48	)		(48	)
Total commercial real estate loans, net		1,917			1,967
Commercial loans:
Revolving lines of credit		3,366			-
Purchased credit-impaired term loan		867			-
Total commercial loans		4,233			-
Loans receivable, net	$	6,150		$	1,967

On February 22, 2011, Signature Credit Partners, Inc., a wholly-owned subsidiary of Signature, purchased $8.4 million in senior secured debt of a manufacturing company that specializes in retail store fixtures and merchandise displays for $4.3 million.  At the time of acquisition, the estimated fair value of the performing revolving line of credit and credit-impaired term loan totaled $3.2 million and $1.1 million, respectively.  It is the Company's intent to restructure the loan relationship.

The following table presents a summary of credit-impaired commercial term loans purchased during the six months ended June 30, 2011:

(Dollars in thousands)
Contractually required payments receivable	$	5,449
Less: Non-accretable difference		(1,355	)
Cash flows expected to be collected		4,094
Less: accretable yield		(2,994	)
Fair value of loans acquired	$	1,100

The following table shows activity for the accretable yield on purchased credit-impaired commercial term loans for the three and six months ended June 30, 2011:

(Dollars in thousands)	Three Months Ended June 30, 2011			Six Months Ended June 30, 2011
Accretable yield, beginning of period	$	2,958		$	-
Purchases of credit-impaired loans		-			2,994
Accretion		(81	)		(117	)
Reclassifications (1)		329			329
Accretable yield, end of period	$	3,206		$	3,206

(1) During the three months ended June 30, 2011, $0.3 million was reclassified to accretable yield from non-accretable difference based on changes in estimated future cash flows.