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Allowance for Loan Losses
9 Months Ended
Sep. 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 September 30, 2011 and December 31, 2010:

 
September 30, 2011
 
December 31, 2010
 
Commercial
 
Single-family
 
Commercial
 
Single-family
Unpaid principal balance of impaired securitized loans
$
4,770

 
$
3,487

 
$
18,219

 
$
3,587

Basis adjustments related to impaired securitized loans
(3
)
 
57

 
(65
)
 
59

Amortized cost basis of impaired securitized loans
4,767

 
3,544

 
18,154

 
3,646

Allowance for loan losses
(2,173
)
 
(208
)
 
(4,200
)
 
(270
)
Investment in excess of allowance
$
2,594

 
$
3,336

 
$
13,954

 
$
3,376


The Company recognized $27 and $83 of interest income on impaired securitized commercial mortgage loans for the three and nine months ended September 30, 2011 compared to $135 and $416 of interest income for the three and nine months ended September 30, 2010.  The Company recognized $49 and $146 of interest income on impaired securitized single-family mortgage loans for the three and nine months ended September 30, 2011 compared to $56 and $169 on impaired single-family mortgage loans for the three and nine months ended September 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
 
September 30,
 
2011
 
2010
 
Commercial
 
Single-family
 
Commercial
 
Single-family
Allowance at beginning of period
$
3,069

 
$
208

 
$
4,085

 
$
277

Provision for loan losses(1)
300

 
—

 
240

 
—

Credit losses, net of recoveries
(1,196
)
 
—

 
(616
)
 
(6
)
Allowance at end of period(2)
$
2,173

 
$
208

 
$
3,709

 
$
271

 
(1)
Activity shown for provision for loan losses for the three months ended September 30, 2010 excludes provision of $16 and credit losses of $(281) related to the Company’s unsecuritized mortgage loan portfolio.
(2)
The amount of allowance related to the Company's unsecuritized mortgage loan portfolio is $0 as of September 30, 2011 and September 30, 2010.
 
Nine Months Ended
 
September 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)
750

 
—

 
390

 
—

Credit losses, net of recoveries
(2,777
)
 
(62
)
 
(616
)
 
(6
)
Allowance at end of period(2)
$
2,173

 
$
208

 
$
3,709

 
$
271

(1)
Activity shown for provision for loan losses for the nine months ended September 30, 2010 excludes provision of $185 and credit losses of $(281) related to the Company’s unsecuritized mortgage loan portfolio.
(2)
The amount of allowance related to the Company's unsecuritized mortgage loan portfolio is $0 as of September 30, 2011 and September 30, 2010.