Loans and Allowance for Loan Losses

12 Months Ended

Dec. 31, 2011

Receivables [Abstract]

Loans and Allowance for Loan Losses

Note 4:  Loans and Allowance for Loan Losses

The allowance for loan losses represents management’s estimate of probable losses inherent in Lafayette Savings’ loan portfolios. In determining the appropriate amount of the allowance for loan losses, management makes numerous assumptions, estimates and assessments.

The strategy also emphasizes diversification on an industry and customer level, regular credit quality reviews and quarterly management reviews of large credit exposures and loans experiencing deterioration of credit quality.

Lafayette Savings’ allowance consists of three components: probable losses estimated from individual reviews of specific loans, probable losses estimated from historical loss rates, and probable losses resulting from economic or other deterioration above and beyond what is reflected in the first two components of the allowance.

Larger commercial loans that exhibit probable or observed credit weaknesses and all loans that are rated substandard or lower are subject to individual review. Where appropriate, reserves are allocated to individual loans based on management’s estimate of the borrower’s ability to repay the loan given the availability of collateral, other sources of cash flow and legal options available to the Bank. Included in the review of individual loans are those that are impaired as provided in Financial Accounting Standards Board (“FASB”) ASC 310-10 (formerly FAS 114, Accounting by Creditors for Impairment of a Loan). Any allowances for impaired loans are determined by the present value of expected future cash flows discounted at the loan’s effective interest rate or fair value of the underlying collateral based on the discounted appraised value. Historical loss rates are applied to other commercial loans not subject to specific reserve allocations.

Homogenous smaller balance loans, such as consumer installment and mortgage loans secured by various property types are not individually risk graded. Reserves are established for each pool of loans based on the expected net charge-offs. Loss rates are based on the average net charge-off history by loan category.

Historical loss rates for commercial and consumer loans may be adjusted for significant factors that, in management’s judgment, reflect the impact of any current conditions on loss recognition. Factors which management considers in the analysis include the effects of the national and local economies, trends in the nature and volume of loans (delinquencies, charge-offs and nonaccrual loans), changes in mix, asset quality trends, risk management and loan administration, changes in the internal lending policies and credit standards, collection practices, examination results from bank regulatory agencies and Lafayette Savings’ internal loan review.

Allowances on individual loans are reviewed quarterly and historical loss rates are reviewed annually and adjusted as necessary based on changing borrower and/or collateral conditions and actual collection and charge-off experience.

Lafayette Savings’ primary market area for lending is Tippecanoe County, Indiana and to a lesser extent the eight surrounding counties. When evaluating the adequacy of the allowance, consideration is given to this regional geographic concentration and the closely associated effect of changing economic conditions on Lafayette Savings’ customers.

Categories of loans at December 31 include:

	2011			2010
Real Estate
One-to-four family residential	$	108,867		$	122,856
Multi-family residential		60,612			53,458
Commercial real estate		90,879			90,395
Construction and land development		18,364			30,467
Commercial		14,366			16,332
Consumer and other		1,161			1,208
Home equity lines of credit		17,330			17,043
Total loans		311,579			331,759
Less
Net deferred loan fees, premiums and discounts		(496	)		(499	)
Undisbursed portion of loans		(3,242	)		(5,107	)
Allowance for loan losses		(5,331	)		(5,343	)
Net loans	$	302,510		$	320,810

The risk characteristics of each loan portfolio segment are as follows:

Commercial

Commercial loans are primarily based on the identified cash flows of the borrower and secondarily on the underlying collateral provided by the borrower. The cash flows of borrowers, however, may not be as expected and the collateral securing these loans may fluctuate in value. Most commercial loans are secured by the assets being financed or other business assets such as accounts receivable or inventory and may incorporate a personal guarantee; however, some short-term loans may be made on an unsecured basis. In the case of loans secured by accounts receivable, the availability of funds for the repayment of these loans may be substantially dependent on the ability of the borrower to collect amounts due from its customers.

Commercial real estate

These loans are viewed primarily as cash flow loans and secondarily as loans secured by real estate. Commercial real estate lending typically involves higher loan principal amounts and the repayment of these loans is generally dependent on the successful operation of the property securing the loan or the business conducted on the property securing the loan. Commercial real estate loans may be more adversely affected by conditions in the real estate markets or in the general economy. The properties securing the Company’s commercial real estate portfolio are diverse in terms of type and geographic location. Management monitors and evaluates commercial real estate loans based on collateral, geography and risk grade criteria. As a general rule, the Company avoids financing single purpose projects unless other underwriting factors are present to help mitigate risk. In addition, management tracks the level of owner-occupied commercial real estate loans versus non-owner occupied loans.

Construction

Construction loans are underwritten utilizing feasibility studies, independent appraisal reviews, sensitivity analysis of absorption and lease rates and financial analysis of the developers and property owners. Construction loans are generally based on estimates of costs and value associated with the complete project. These estimates may be inaccurate. Construction loans often involve the disbursement of substantial funds with repayment substantially dependent on the success of the ultimate project. Sources of repayment for these types of loans may be pre-committed permanent loans from approved long-term lenders, sales of developed property or an interim loan commitment from the Company until permanent financing is obtained. These loans are closely monitored by on-site inspections and are considered to have higher risks than other real estate loans due to their ultimate repayment being sensitive to interest rate changes, governmental regulation of real property, general economic conditions and the availability of long-term financing.

Residential, Home Equity and Consumer

With respect to residential loans that are secured by one- to four-family residences and are generally owner occupied, the Company generally establishes a maximum loan-to-value ratio and requires private mortgage insurance if that ratio is exceeded. Home equity loans are typically secured by a subordinate interest in one- to four-family residences, and consumer loans are secured by consumer assets such as automobiles or recreational vehicles. Some consumer loans are unsecured such as small installment loans and certain lines of credit. Repayment of these loans is primarily dependent on the personal income of the borrowers, which can be impacted by economic conditions in their market areas such as unemployment levels. Repayment can also be impacted by changes in property values on residential properties. Risk is mitigated by the fact that the loans are of smaller individual amounts and spread over a large number of borrowers.

Additional information on the allocation of loan loss reserves by loan category, which does not include loans held for sale, for the years ended December 31, 2011 and December 31, 2010 is provided below.

	Allowance for Loan Losses and Recorded Investment in Loans for the Year Ended December 31, 2011
2011	Commercial		Owner Occupied 1-4		Non-owner Occupied 1-4		Multi- family		Commercial Real Estate		Construction		Land		Consumer and Home Equity	Total
Allowance for losses
Beginning balance	$	565	$	242	$	773	$	1,138	$	2,061	$	---	$	480	84	5,343
Provision charged to expense		1,042		249		2,158		238		1,448		64		32	130	5,361
Losses charged off		940		77		1,615		730		1,721		---		278	79	5,440
Recoveries		---		22		14		---		---		---		30	1	67
Ending balance		667		436		1,330		646		1,788		64		264	136	5,331
ALL individually evaluated		129		13		84		---		413		---		---	---	639
ALL collectively evaluated		538		423		1,246		646		1,375		64		264	136	4,692
Total ALL		667		436		1,330		646		1,788		64		264	136	5,331
Loans individually evaluated		2,451		2,094		8,315		4,558		11,764		---		2,140	143	31,465
Loans collectively evaluated		11,915		48,248		50,209		56,054		79,115		8,060		8,164	18,349	280,114
Total loans evaluated		14,366		50,342		58,524		60,612		80,879		8,060		10,304	18,491	311,579

	Allowance for Loan Losses and Recorded Investment in Loans for the Year Ended December 31, 2010
2010	Commercial		Owner Occupied 1-4			Non-owner Occupied 1-4		Multi- family		Commercial Real Estate		Construction			Land		Consumer and Home Equity	Total
Allowance for losses
Beginning balance	$	103	$	402		$	1,214	$	344	$	1,095	$	38		$	518	23	3,737
Provision charged to expense		527		(61	)		3		794		1,140		(46	)		337	65	2,759
Losses charged off		68		117			579		---		211		---			402	5	1,382
Recoveries		3		18			135		---		37		8			27	1	229
Ending balance		565		242			773		1,138		2,061		---			480	84	5,343
ALL individually evaluated		169		34			30		6		1,005		---			120	---	1,364
ALL collectively evaluated		396		208			743		1,132		1,056		---			360	84	3,979
Total ALL		565		242			773		1,138		2,061		---			480	84	5,343
Loans individually evaluated		238		1,022			7,032		559		7,605		---			4,167	---	20,623
Loans collectively evaluated		16,094		59,283			55,519		52,899		82,790		15,957			10,343	18,251	311,136
Total loans evaluated		16,332		60,305			62,551		53,458		90,395		15,957			14,510	18,251	331,759

Management’s general practice is to charge down collateral dependent loans individually evaluated for impairment to the fair value of the underlying collateral.

Consistent with regulatory guidance, charge-offs on all loan segments are taken when specific loans, or portions thereof, are considered uncollectible. The Company’s policy is to promptly charge these loans off in the period the uncollectible loss is reasonably determined.

For all loan portfolio segments except one- to four-family residential properties and consumer, the Company promptly charges-off loans, or portions thereof, when available information confirms that specific loans are uncollectible based on information that includes, but is not limited to, (1) the deteriorating financial condition of the borrower, (2) declining collateral values, and/or (3) legal action, including bankruptcy, that impairs the borrower’s ability to adequately meet its obligations. For impaired loans that are considered to be solely collateral dependent, a partial charge-off is recorded when a loss has been confirmed by an updated appraisal or other appropriate valuation of the collateral.

The Company charges-off one- to four-family residential and consumer loans, or portions thereof, when the Company reasonably determines the amount of the loss. The Company adheres to timeframes established by applicable regulatory guidance which provides for the charge-down of one- to four-family first and junior lien mortgages to the net realizable value less costs to sell when the loan is 180 days past due, charge-off of unsecured open-end loans when the loan is 180 days past due, and charge-down to the net realizable value when other secured loans are 180 days past due. Loans at these respective delinquency thresholds for which the Company can clearly document that the loan is both well-secured and in the process of collection, such that collection will occur regardless of delinquency status, need not be charged off. Charge-offs may be taken sooner than the above-referenced timeframes if circumstances warrant.

The entire balance of a loan is considered delinquent if the minimum payment contractually required to be made is not received by the specified due date.

The historical loss experience is determined by portfolio segment and is based on the actual loss history experienced by the Company over the prior four years. Management believes the four year historical loss experience methodology is appropriate in the current economic environment, as it captures loss rates that are comparable to the current period being analyzed.

We rate all loans by credit quality using the following designations:

GRADE 1 - Pass, superior credit quality

Loans of the highest quality. Financial strength of the borrower (exhibited by extremely low debt-to-income ratios/high debt-service coverage, low loan-to-value ratio, and clean credit history) is such that no loss is anticipated. Probability of serious or rapid deterioration is extremely small.

GRADE 2 - Pass, good credit quality

Loans of good quality. Overall above average credit, with strong capacity to repay (exhibited by higher debt-to-income ratios/lower debt-service coverage than Grade 1, but still better than average levels), sound credit history and employment. Loan-to-value is not as strong as Grade 1, but is greater than Grade 3. Minor loss exposure with the probability of serious financial deterioration unlikely.

GRADE 3 - Pass, low risk

Loans of satisfactory quality. Average quality due to average capacity to repay (exhibited by higher debt-to-income ratios/lower debt-service coverage than Grade 2 but better than levels requiring Loan Committee approval), employment, credit history, loan-to-value ratio, or paying habits. Deterioration possible if adverse factors occur.

GRADE 4 - Pass, acceptable risk

Loans of marginal, but acceptable quality due to below average capacity to repay (exhibited by high debt-to-income ratios/low debt-service coverage), high loan-to-value, or poor paying habits. Deterioration likely if adverse factors occur.

GRADE W-4 - Pass, watch list credit

These loans have the same characteristics as standard Grade 4 loans, with an added significant weakness such as the global debt-service coverage of the borrower being below 1.00. Such loans should have no delinquencies within the previous 12 months.

GRADE 5- Special Mention

Loans in this classification are in a state of change that could adversely affect paying ability, collateral value or which require monthly monitoring to protect the asset value.

GRADE 6- Substandard

A substandard asset with a defined weakness. Heavy debt condition, deterioration of collateral, poor paying habits, or conditions present that unless deficiencies are corrected will result in some loss. Loans 90 or more days past due should be automatically included in this grade.

GRADE 7- Doubtful

Poor quality. Loans in this group are characterized by less than adequate collateral and all of the characteristics of a loan classified as substandard. The possibility of a loss is extremely high, but factors may be underway to minimize the loss or maximize the recovery.

GRADE 8 - Loss

Loans classified loss are considered uncollectible and of such little value that their continuance as an asset is not warranted.

Interest income on loans individually classified as impaired is recognized on a cash basis after all past due and current principal payments have been made.

Subsequent payments on non-accrual loans are recorded as a reduction of principal, and interest income is recorded only after principal recovery is reasonably assured. Nonaccrual loans are returned to accrual status when, in the opinion of management, the financial position of the borrower indicates there is no longer any reasonable doubt as to the timely collection of interest or principal. The Company requires a period of satisfactory performance of not less than six months before returning a nonaccrual loan to accrual status.

The following tables provide an analysis of loan quality using the above designations, based on property type at December 31, 2011 and December 31, 2010.

	Loan Quality Analysis as of December 31, 2011
Credit Rating	Commercial		Owner Occupied 1-4		Non-owner Occupied 1-4		Multi- Family		Commercial Real Estate		Construction		Land		Consumer and Home Equity		Total
1- Superior	$	257	$	2,911	$	115	$	---	$	107	$	---	$	200	$	1,743	$	5,333
2 - Good		2,719		18,638		5,167		8,176		10,761		1,094		763		11,336		58,654
3 - Pass Low risk		6,408		19,801		13,665		24,884		33,730		4,170		354		4,376		107,388
4 - Pass		2,229		6,403		28,118		20,475		25,302		2,796		1,312		803		87,438
4W - Watch		303		748		6,398		4,342		9,772		---		2,077		90		23,730
5 - Special mention		1,550		475		188		704		232		---		3,501		99		6,749
6 - Substandard		900		1,366		4,874		2,031		10,975		---		2,097		44		22,287.296
7 - Doubtful		---		---		---		---		---		---		---		---		---
8 - Loss		---		---		---		---		---		---		---		---		---
Total	$	14,366	$	50,342	$	58,525	$	60,612	$	90,879	$	8,060	$	10,304	$	18,491	$	311,579

	Loan Quality Analysis as of December 31, 2010
Credit Rating	Commercial		Owner Occupied 1-4		Non-owner Occupied 1-4		Multi- Family		Commercial Real Estate		Construction		Land		Consumer and Home Equity		Total
1- Superior	$	42	$	3,364	$	160	$	112	$	207	$	---	$	218	$	1,461	$	5,565
2 - Good		3,227		20,113		5,353		8,248		10,690		3,074		953		11,079		62,736
3 - Pass Low risk		3,767		26,149		15,514		26,040		31,532		8,843		1,150		4,404		117,399
4 - Pass		4,960		7,113		25,016		7,567		26,414		4,040		5,324		930		81,365
4W - Watch		172		1,351		5,591		4,353		8,332		---		2,483		116		22,397
5 - Special mention		3,899		462		5,535		2,478		4,799		---		---		97		17,270
6 - Substandard		265		1,753		5,382		4,660		8,421		---		4,382		164		25,027
7 - Doubtful		---		---		---		---		---		---		---		---		---
8 - Loss		---		---		---		---		---		---		---		---		---
Total	$	16,332	$	60,305	$	62,551	$	53,458	$	90,395	$	15,957	$	14,510	$	18,251	$	331,759

Analyses of past due loans segregated by loan type as of December 31, 2011 and December 31, 2010 are provided below.

	Loan Portfolio Aging Analysis as of December 31, 2011
	30-59 Days		60-89 Days		Over 90 Days		Total Past Due		Current		Total Loans		Under 90 Days and Not Accruing		Total 90 Days and Accruing
Commercial	$	1,387	$	572	$	148	$	2,107	$	12,259	$	14,366	$	568	$	---
Owner occupied 1-4		336		211		714		1,261		49,081		50,342		433		---
Non-owner occupied 1-4		435		25		1,918		2,378		56,147		58,525		1,184		---
Multi-family		---		116		801		917		59,695		60,612		501		---
Commercial real estate		19		74		1,974		2,067		88,812		90,879		1,677		---
Construction		---		---		---		---		8,060		8,060		---		---
Land		---		---		1,173		1,173		9,131		10,304		924		---
Consumer and home equity		86		8		36		130		18,361		18,491		8		---
Total	$	2,263	$	1,006	$	6,764	$	10,033	$	301,546	$	311,579	$	5,295	$	---

	Loan Portfolio Aging Analysis as of December 31, 2010
	30-59 Days		60-89 Days		Over 90 Days		Total Past Due		Current		Total Loans		Under 90 Days and Not Accruing		Total 90 Days and Accruing
Commercial	$	60	$	---	$	251	$	311	$	16,021	$	16,332	$	---	$	---
Owner occupied 1-4		139		539		515		1,193		59,113		60,306		715		---
Non-owner occupied 1-4		---		176		3,293		3,469		59,081		62,550		1,918		48
Multi-family		---		---		2,289		2,289		51,169		53,458		559		---
Commercial real estate		338		55		5,639		6,032		84,363		90,395		213		628
Construction		-		---		---		---		15,957		15,957		---		---
Land		17		---		1,022		1,039		13,471		14,510		1,468		---
Consumer and home equity		5		39		134		178		18,073		18,251		30		---
Total	$	559	$	809	$	13,143	$	14,511	$	316,247	$	331,759	$	4,903	$	676

Impaired loans are those for which we believe it is probable that we will not collect all principal and interest due in accordance with the original terms of the loan agreement. The following tables present impaired loans and interest recognized on them for the years ended December 31, 2011 and December 31, 2010.

	Impaired Loans as of and for the Year Ended December 31, 2011
	Recorded Balance		Unpaid Principal Balance		Specific Allowance		Average Impaired Loans		Interest Income Recognized
Loans without a specific valuation allowance
Commercial	$	2,233	$	2,257	$	---	$	1,935	$	128
Owner occupied 1-4		1,951		1,960		---		1,918		80
Non-owner occupied 1-4		7,475		8,605		---		7,392		268
Multi-family		4,558		6,083		---		5,208		204
Commercial real estate		8,854		10,406		---		6,157		305
Construction		---		---		---		---		---
Land		2,140		2,234		---		3,591		110
Consumer and home equity		143		148		---		205		3
Total loans without a specific valuation allowance		27,354		31,693		---		26,406		1,098
Loans with a specific valuation allowance
Commercial		218		231		129		64		17
Owner occupied 1-4		143		153		13		67		5
Non-owner occupied 1-4		840		840		84		856		23
Multi-family		---		---		---		---		---
Commercial real estate		2,910		2,910		413		3,785		135
Construction		---		---		---		---		---
Land		---		---		---		---		---
Consumer and home equity		---		---		---		---		---
Total loans with a specific valuation allowance		4,111		4,134		639		4,772		180
Total
Commercial		2,451		2,488		129		1,999		145
Owner occupied 1-4		2,094		2,113		13		1,985		85
Non-owner occupied 1-4		8,315		9,445		84		8,248		291
Multi-family		4,558		6,083		---		5,208		204
Commercial real estate		11,764		13,316		413		9,942		440
Construction		---		---		---		---		---
Land		2,140		2,234		---		3,591		110
Consumer and home equity		143		148		---		205		3
Total impaired loans	$	31,465	$	35,827	$	639	$	31,178	$	1,278

	Impaired Loans as of and for the Year Ended December 31, 2010
	Recorded Balance		Unpaid Principal Balance		Specific Allowance		Average Impaired Loans		Interest Income Recognized
Loans without a specific valuation allowance
Commercial	$	---	$	---	$	---	$	---	$	8
Owner occupied 1-4		723		714		---		542		---
Non-owner occupied 1-4		6,419		6,230		---		6,958		391
Multi-family		343		343		---		206		---
Commercial real estate		4,184		3,809		---		3,074		343
Construction		---		---		---		---		---
Land		3,054		3,054		---		3,692		---
Consumer and home equity		---		---		---		---		---
Total loans without a specific valuation allowance		14,723		14,150		---		14,472		742
Loans with a specific valuation allowance
Commercial		238		239		169		197		12
Owner occupied 1-4		299		299		34		317		---
Non-owner occupied 1-4		613		613		30		414		---
Multi-family		216		216		6		87		21
Commercial real estate		3,421		3,421		1,005		1,738		---
Construction		---		---		---		---		---
Land		1,113		1,113		120		890		77
Consumer and home equity		---		---		---		---		---
Total loans with a specific valuation allowance		5,900		5,901		1,364		3,643		110
Total
Commercial		238		239		169		197		12
Owner occupied 1-4		1,022		1,013		34		859		---
Non-owner occupied 1-4		7,032		6,843		30		7,372		391
Multi-family		559		559		6		293		21
Commercial real estate		7,605		7,230		1,005		4,812		343
Construction		---		---		---		---		---
Land		4,167		4,167		120		4,582		77
Consumer and home equity		---		---		---		---		---
Total impaired loans	$	20,623	$	20,051	$	1,364	$	18,115	$	844

All loans rated substandard are considered impaired. A loan is considered impaired when, based on current information and events, it is probable that the Bank will be unable to collect all amounts due (both principal and interest) according to contractual terms of the loan agreement. Loans that are considered impaired are reviewed to determine if a specific allowance is required based on the borrower’s financial condition, resources and payment record, support from guarantors and the realizable value of any collateral. As a practical expedient the Bank will typically use the collateral fair market value method to determine impairments unless circumstances preclude its use. In this method, any portion of the investment above the current fair market value of the collateral should be identified as an impairment. Fair market value is determined using a current appraisal or evaluation in compliance with federal appraisal regulations.

The following table gives a breakdown of non-accruing loans by loan class at December 31, 2011 and December 31, 2010.

	2011		2010
Commercial	$	716	$	251
Owner occupied 1-4		1,147		1,230
Non-owner occupied 1-4		3,102		5,211
Multi-family		1,302		2,848
Commercial real estate		3,651		5,852
Construction		---		---
Land		2,097		2,490
Consumer and home equity		44		164
Total	$	12,059	$	18,046

Loans are placed on non-accrual status when, in the judgment of management, the probability of collection of interest is deemed to be insufficient to warrant further accrual. All interest accrued, but not received for loans placed on non-accrual, is reversed against interest income. Interest subsequently received on such loans is accounted for by using the cost-recovery basis for commercial loans and the cash-basis for retail loans until qualifying for return to accrual status.

At December 31, 2011, there were no accruing loans delinquent 90 days or more. There were $676,000 accruing loans delinquent 90 days or more in 2010.

Loans to related parties at December 31, 2010 totaled $2.5 million. As reduced by paydowns of $505,000 and increased by new debt of $771,000, loans to related parties at December 31, 2011 totaled $2.7 million.

The following table presents information regarding newly restructured troubled debt restructurings by class for the year ended December 31, 2011. Restructured terms included rate concessions on all six loans, principal modifications on three loans and payment concessions on one loan.

Troubled Debt Restructurings for Year Ended December 31, 2011
	Number of Loans		Pre-Modification Recorded Balance		Post-Modification Recorded Balance
Commercial		1	$	130	$	130
Owner occupied 1-4		1		90		90
Non-owner occupied 1-4		1		156		100
Multi-family		1		446		410
Commercial Real Estate		2		2,450		1,750
Construction		---		---		---
Land		---		---		---
Consumer and home equity		---		---		---
Total		6	$	3,272	$	2,480

Troubled Debt Restructurings that Subsequently Defaulted for the Year Ended December 31, 2011
	Number of Loans		Recorded Balance
Commercial		---	$	---
Owner occupied 1-4		---		---
Non-owner occupied 1-4		1		824
Multi-family		---		---
Commercial Real Estate		---		---
Construction		---		---
Land		1		171
Consumer and home equity		---		---
Total		2	$	995

There were no troubled debt restructurings that subsequently defaulted for the year ended December 31, 2010.

As a result of adopting the amendments in Accounting Standards Update No. 2011-02 (the “ASU”), the Company reassessed all restructurings that occurred on or after the beginning of its current fiscal year (January 1, 2011) for identification as troubled debt restructurings. The Company identified as troubled debt restructurings certain receivables for which the allowance for credit losses had previously been measured under a general allowance for credit losses methodology. Upon identifying those receivables as troubled debt restructurings, the Company identified them as impaired under the guidance in Accounting Standards Codification (ASC) 310-10-35. The ASU requires prospective application of the impairment measurement guidance in ASC 310-10-35 for those receivables newly identified as impaired. At the end of the first interim period of adoption (September 30, 2011), the recorded investment in receivables for which the allowance for credit losses was previously measured under a general allowance for credit losses methodology and are now impaired under ASC 310-10-35 was $1.6 million and the allowance for credit losses associated with those receivables, on the basis of a current evaluation of loss, was $98,000. The restructuring was done in 2010.