Loans Held-for-Sale	9 Months Ended
Sep. 30, 2013
Loans Held-for-Sale
Loans Held-for-Sale	3. Loans Held-for-Sale Loans held-for-sale, net, includes fifteen and thirty year fixed rate one-to-four family, or residential, mortgage loans originated for sale that conform to GSE guidelines (conforming loans), as well as certain delinquent and non-performing loans. Upon our decision to sell certain delinquent and non-performing loans held in portfolio, we reclassify them to held-for-sale at the lower of cost or fair value, less estimated selling costs. Non-performing loans held-for-sale included in loans held-for-sale, net of valuation allowances, totaled $884,000 at September 30, 2013 and $3.9 million at December 31, 2012. Non-performing loans held-for-sale were comprised primarily of multi-family mortgage loans at September 30, 2013. Substantially all of the non-performing loans held-for-sale were multi-family mortgage loans at December 31, 2012. We sold certain delinquent and non-performing mortgage loans, primarily multi-family and commercial real estate loans, totaling $18.4 million, net of charge-offs of $4.3 million, during the nine months ended September 30, 2013 and $20.4 million, net of charge-offs of $11.0 million, during the nine months ended September 30, 2012. Net gain on sales of non-performing loans totaled $56,000 for the three months ended September 30, 2013 and $118,000 for the nine months ended September 30, 2013. Net loss on sales of non-performing loans totaled $2,000 for the three months ended September 30, 2012 and net gain on sales of non-performing loans totaled $1.3 million for the nine months ended September 30, 2012. We recorded net lower of cost or market write-downs on non-performing loans held-for-sale totaling $54,000 for the three months ended September 30, 2013 and $89,000 for the nine months ended September 30, 2013. Net lower of cost or market write-downs on non-performing loans held-for-sale totaled $234,000 for the three months ended September 30, 2012 and $457,000 for the nine months ended September 30, 2012. Lower of cost or market write-downs and recoveries on non-performing loans held-for-sale and gains and losses recognized on sales of such loans are included in other non-interest income in the consolidated statements of income.

3. Loans Held-for-Sale

Loans held-for-sale, net, includes fifteen and thirty year fixed rate one-to-four family, or residential, mortgage loans originated for sale that conform to GSE guidelines (conforming loans), as well as certain delinquent and non-performing loans. Upon our decision to sell certain delinquent and non-performing loans held in portfolio, we reclassify them to held-for-sale at the lower of cost or fair value, less estimated selling costs. Non-performing loans held-for-sale included in loans held-for-sale, net of valuation allowances, totaled $884,000 at September 30, 2013 and $3.9 million at December 31, 2012. Non-performing loans held-for-sale were comprised primarily of multi-family mortgage loans at September 30, 2013. Substantially all of the non-performing loans held-for-sale were multi-family mortgage loans at December 31, 2012.

We sold certain delinquent and non-performing mortgage loans, primarily multi-family and commercial real estate loans, totaling $18.4 million, net of charge-offs of $4.3 million, during the nine months ended September 30, 2013 and $20.4 million, net of charge-offs of $11.0 million, during the nine months ended September 30, 2012. Net gain on sales of non-performing loans totaled $56,000 for the three months ended September 30, 2013 and $118,000 for the nine months ended September 30, 2013. Net loss on sales of non-performing loans totaled $2,000 for the three months ended September 30, 2012 and net gain on sales of non-performing loans totaled $1.3 million for the nine months ended September 30, 2012.

We recorded net lower of cost or market write-downs on non-performing loans held-for-sale totaling $54,000 for the three months ended September 30, 2013 and $89,000 for the nine months ended September 30, 2013. Net lower of cost or market write-downs on non-performing loans held-for-sale totaled $234,000 for the three months ended September 30, 2012 and $457,000 for the nine months ended September 30, 2012. Lower of cost or market write-downs and recoveries on non-performing loans held-for-sale and gains and losses recognized on sales of such loans are included in other non-interest income in the consolidated statements of income.