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Allowance for Loan Losses
 6 Months Ended
Jun. 30, 2011
ALLOWANCE FOR LOAN LOSSES [Abstract]  
Allowance for Loan Losses
ALLOWANCE FOR LOAN LOSSES
 
As discussed in Note 1, the Company estimates for currently existing and probable losses for its mortgage loans that are considered impaired. A loan does not have to be seriously delinquent (60 or more days past due) in order to be considered impaired. The following table presents certain information on impaired securitized commercial and single-family mortgage loans as of June 30, 2011 and December 31, 2010:


 
June 30, 2011
 
December 31, 2010
 
Commercial
 
Single-family
 
Commercial
 
Single-family
Unpaid principal balance of impaired securitized loans
$
8,618


 
$
5,082


 
$
18,219


 
$
3,587


Basis adjustments related to impaired securitized loans
(22
)
 
82


 
(65
)
 
59


Amortized cost basis of impaired securitized loans
8,596


 
5,164


 
18,154


 
3,646


Allowance for loan losses
(3,069
)
 
(208
)
 
(4,200
)
 
(270
)
Investment in excess of allowance
$
5,527


 
$
4,956


 
$
13,954


 
$
3,376




The Company recognized $28 and $56 of interest income on impaired securitized commercial mortgage loans for the three and six months ended June 30, 2011 compared to $102 and $223 of interest income for the three and six months ended June 30, 2010.  The Company recognized $71 and $143 of interest income on impaired securitized single-family mortgage loans for the three and six months ended June 30, 2011 compared to $60 and $120 on impaired single-family mortgage loans for the three and six months ended June 30, 2010.


The following table summarizes the aggregate activity for the portion of the allowance for loan losses that relates to the securitized mortgage loan portfolio for the periods indicated:


 
Three Months Ended
 
June 30,
 
2011
 
2010
 
Commercial
 
Single-family
 
Commercial
 
Single-family
Allowance at beginning of period
$
4,237


 
$
249


 
$
4,085


 
$
277


Provision for loan losses(1)
200


 
—


 
240


 
—


Credit losses, net of recoveries
(1,368
)
 
(41
)
 
(616
)
 
(6
)
Allowance at end of period(2)
$
3,069


 
$
208


 
$
3,709


 
$
271


 
(1)
Activity shown for provision for loan losses for the three months ended June 30, 2010 excludes the reversal of $90 of provision related to the Company’s unsecuritized mortgage loan portfolio.
(2)
Balance as of June 30, 2010 excludes allowance of $265 related to the Company’s unsecuritized mortgage loan portfolio. As of June 30, 2011, the amount of allowance related to the Company's unsecuritized mortgage loan portfolio is $0.


 
Six Months Ended
 
June 30,
 
2011
 
2010
 
Commercial
 
Single-family
 
Commercial
 
Single-family
Allowance at beginning of period
$
4,200


 
$
270


 
$
3,935


 
$
277


Provision for loan losses(1)
450


 
—


 
390


 
—


Credit losses, net of recoveries
(1,581
)
 
(62
)
 
(616
)
 
(6
)
Allowance at end of period(2)
$
3,069


 
$
208


 
$
3,709


 
$
271


(1)
Activity shown for provision for loan losses for the six months ended June 30, 2010 excludes provision of $169 related to the Company’s unsecuritized mortgage loan portfolio.
(2)
Balance as of June 30, 2010 excludes allowance of $265 related to the Company’s unsecuritized mortgage loan portfolio.