XML 77 R12.htm IDEA: XBRL DOCUMENT
v2.4.0.6

LOANS | 9 Months Ended
--- | ---
Sep. 30, 2012
LOANS | NOTE 4 – LOANS The following table presents the recorded investment in loans by portfolio segment. The recorded investment in loans includes the principal balance outstanding adjusted for purchase premiums and discounts, deferred loan fees and costs and includes accrued interest.
|  | September 30, 2012 |  |  | December 31, 2011 |
Commercial |  | $ | 18,187 |  |  | $ | 25,994 |
Real estate: |  |  |  |  |  |  |  |
Single-family residential |  |  | 15,425 |  |  |  | 18,214 |
Multi-family residential |  |  | 22,900 |  |  |  | 27,163 |
Commercial |  |  | 57,687 |  |  |  | 69,757 |
Consumer: |  |  |  |  |  |  |  |
Home equity lines of credit |  |  | 13,145 |  |  |  | 14,921 |
Other |  |  | 1,038 |  |  |  | 1,221 |
Subtotal |  |  | 128,382 |  |  |  | 157,270 |
Less: ALLL |  |  | (5,442 | ) |  |  | (6,110 | )
Loans, net |  | $ | 122,940 |  |  | $ | 151,160 |
Commercial loans included $9,376 and $12,472, respectively, of commercial lines of credit which required interest only payments at September 30, 2012 and December 31, 2011. Home equity lines of credit included $10,524 and $12,739, respectively, of loans which required interest only payments at September 30, 2012 and December 31, 2011. The ALLL is a valuation allowance for probable incurred credit losses in the loan portfolio based on management’s evaluation of various factors including past loan loss experience, the nature and volume of the portfolio, information about specific borrower situations and estimated collateral values, economic conditions and other factors. A provision for loan losses is charged to operations based on management’s periodic evaluation of these and other pertinent factors described in Note 1 of the Notes to Consolidated Financial Statements contained in the Company’s 2011 Annual Report that was filed as Exhibit 13.1 to the Company’s Form 10-K for the year ended December 31, 2011. The following tables present the activity in the ALLL by portfolio segment for the three and nine months ended September 30, 2012:
|  | Three months ended September 30, 2012 |
|  |  |  |  | Real Estate |  |  | Consumer |  |  |  |
|  | Commercial |  |  | Single-family |  |  | Multi-family |  |  | Commercial |  |  | Home equity lines of credit |  |  | Other |  |  | Total |
Beginning balance |  | $ | 1,386 |  |  | $ | 245 |  |  | $ | 1,370 |  |  | $ | 2,130 |  |  | $ | 286 |  |  | $ | 17 |  |  | $ | 5,434 |
Addition to (reduction in) provision for loan losses |  |  | (370 | ) |  |  | (15 | ) |  |  | 544 |  |  |  | 510 |  |  |  | (115 | ) |  |  | (11 | ) |  |  | 543 |
Charge-offs |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (536 | ) |  |  | — |  |  |  | — |  |  |  | (536 | )
Recoveries |  |  | — |  |  |  | 1 |  |  |  | — |  |  |  | — |  |  |  | 3 |  |  |  | 6 |  |  |  | 10 |
Reclass of ALLL on loan-related commitments (1) |  |  | (9 | ) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (9 | )
Ending balance |  | $ | 1,007 |  |  | $ | 231 |  |  | $ | 1,914 |  |  | $ | 2,104 |  |  | $ | 174 |  |  | $ | 12 |  |  | $ | 5,442 |
(1) | Reclassified from (to) accrued interest payable and other liabilities in the consolidated balance sheet
|  | Nine months ended September 30, 2012 |
|  |  |  |  | Real Estate |  |  | Consumer |  |  |  |
|  | Commercial |  |  | Single-family |  |  | Multi-family |  |  | Commercial |  |  | Home equity lines of credit |  |  | Other |  |  | Total |
Beginning balance |  | $ | 2,281 |  |  | $ | 207 |  |  | $ | 1,470 |  |  | $ | 1,863 |  |  | $ | 272 |  |  | $ | 17 |  |  | $ | 6,110 |
Addition to (reduction in) provision for loan losses |  |  | (1,467 | ) |  |  | 23 |  |  |  | 856 |  |  |  | 1,570 |  |  |  | (51 | ) |  |  | 12 |  |  |  | 943 |
Charge-offs |  |  | (99 | ) |  |  | (7 | ) |  |  | (434 | ) |  |  | (1,467 | ) |  |  | (60 | ) |  |  | (34 | ) |  |  | (2,101 | )
Recoveries |  |  | 292 |  |  |  | 8 |  |  |  | 22 |  |  |  | 138 |  |  |  | 13 |  |  |  | 17 |  |  |  | 490 |
Ending balance |  | $ | 1,007 |  |  | $ | 231 |  |  | $ | 1,914 |  |  | $ | 2,104 |  |  | $ | 174 |  |  | $ | 12 |  |  | $ | 5,442 |
The following tables present the activity in the ALLL by portfolio segment for the three and nine months ended September 30, 2011:
|  | Three months ended September 30, 2011 |
|  |  |  |  | Real Estate |  |  | Consumer |  |  |  |
|  | Commercial |  |  | Single-family |  |  | Multi-family |  |  | Commercial |  |  | Home equity lines of credit |  |  | Other |  |  | Total |
Beginning balance |  | $ | 2,754 |  |  | $ | 242 |  |  | $ | 2,183 |  |  | $ | 2,632 |  |  | $ | 220 |  |  | $ | 19 |  |  | $ | 8,050 |
Addition to (reduction in) provision for loan losses |  |  | (266 | ) |  |  | (54 | ) |  |  | 1,015 |  |  |  | (387 | ) |  |  | 100 |  |  |  | (3 | ) |  |  | 405 |
Charge-offs |  |  | — |  |  |  | — |  |  |  | (867 | ) |  |  | (580 | ) |  |  | (149 | ) |  |  | — |  |  |  | (1,596 | )
Recoveries |  |  | 29 |  |  |  | 2 |  |  |  | — |  |  |  | 47 |  |  |  | 15 |  |  |  | 1 |  |  |  | 94 |
Reclass of ALLL on loan-related commitments (1) |  |  | 2 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 2 |
Ending balance |  | $ | 2,519 |  |  | $ | 190 |  |  | $ | 2,331 |  |  | $ | 1,712 |  |  | $ | 186 |  |  | $ | 17 |  |  | $ | 6,955 |
(1) | Reclassified from (to) accrued interest payable and other liabilities in the consolidated balance sheet
|  | Nine months ended September 30, 2011 |
|  |  |  |  | Real Estate |  |  | Consumer |  |  |  |
|  | Commercial |  |  | Single-family |  |  | Multi-family |  |  | Commercial |  |  | Construction |  |  | Home equity lines of credit |  |  | Other |  |  | Total |
Beginning balance |  | $ | 1,879 |  |  | $ | 241 |  |  | $ | 2,520 |  |  | $ | 4,719 |  |  | $ | 74 |  |  | $ | 303 |  |  | $ | 22 |  |  | $ | 9,758 |
Addition to (reduction in) provision for loan losses |  |  | 1,679 |  |  |  | (43 | ) |  |  | 1,926 |  |  |  | (1,247 | ) |  |  | (74 | ) |  |  | 12 |  |  |  | 3 |  |  |  | 2,256 |
Charge-offs |  |  | (1,140 | ) |  |  | (14 | ) |  |  | (2,117 | ) |  |  | (1,930 | ) |  |  | — |  |  |  | (149 | ) |  |  | (18 | ) |  |  | (5,368 | )
Recoveries |  |  | 100 |  |  |  | 6 |  |  |  | 2 |  |  |  | 170 |  |  |  | — |  |  |  | 20 |  |  |  | 10 |  |  |  | 308 |
Reclass of ALLL on loan-related commitments (1) |  |  | 1 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 1 |
Ending balance |  | $ | 2,519 |  |  | $ | 190 |  |  | $ | 2,331 |  |  | $ | 1,712 |  |  | $ | — |  |  | $ | 186 |  |  | $ | 17 |  |  | $ | 6,955 |
(1) | Reclassified from (to) accrued interest payable and other liabilities in the consolidated balance sheet
The following table presents the balance in the ALLL and the recorded investment in loans by portfolio segment and based on the impairment method as of September 30, 2012:
|  |  |  |  | Real Estate |  |  | Consumer |  |  |  |
|  | Commercial |  |  | Single-family |  |  | Multi-family |  |  | Commercial |  |  | Home equity lines of credit |  |  | Other |  |  | Total |
ALLL: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Ending allowance balance attributable to loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Individually evaluated for impairment |  | $ | 564 |  |  | $ | 47 |  |  | $ | 585 |  |  | $ | 297 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,493 |
Collectively evaluated for impairment |  |  | 443 |  |  |  | 184 |  |  |  | 1,329 |  |  |  | 1,807 |  |  |  | 174 |  |  |  | 12 |  |  |  | 3,949 |
Total ending allowance balance |  | $ | 1,007 |  |  | $ | 231 |  |  | $ | 1,914 |  |  | $ | 2,104 |  |  | $ | 174 |  |  | $ | 12 |  |  | $ | 5,442 |
Loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Individually evaluated for impairment |  | $ | 797 |  |  | $ | 129 |  |  | $ | 4,024 |  |  | $ | 6,610 |  |  | $ | — |  |  | $ | — |  |  | $ | 11,560 |
Collectively evaluated for impairment |  |  | 17,390 |  |  |  | 15,296 |  |  |  | 18,876 |  |  |  | 51,077 |  |  |  | 13,145 |  |  |  | 1,038 |  |  |  | 116,822 |
Total ending loan balance |  | $ | 18,187 |  |  | $ | 15,425 |  |  | $ | 22,900 |  |  | $ | 57,687 |  |  | $ | 13,145 |  |  | $ | 1,038 |  |  | $ | 128,382 |
The following table presents the balance in the ALLL and the recorded investment in loans by portfolio segment and based on the impairment method as of December 31, 2011:
|  |  |  |  | Real Estate |  |  | Consumer |  |  |  |
|  | Commercial |  |  | Single-family |  |  | Multi-family |  |  | Commercial |  |  | Home equity lines of credit |  |  | Other |  |  | Total |
ALLL: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Ending allowance balance attributable to loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Individually evaluated for impairment |  | $ | 624 |  |  | $ | — |  |  | $ | 11 |  |  | $ | 262 |  |  | $ | — |  |  | $ | — |  |  | $ | 897 |
Collectively evaluated for impairment |  |  | 1,657 |  |  |  | 207 |  |  |  | 1,459 |  |  |  | 1,601 |  |  |  | 272 |  |  |  | 17 |  |  |  | 5,213 |
Total ending allowance balance |  | $ | 2,281 |  |  | $ | 207 |  |  | $ | 1,470 |  |  | $ | 1,863 |  |  | $ | 272 |  |  | $ | 17 |  |  | $ | 6,110 |
Loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Individually evaluated for impairment |  | $ | 821 |  |  | $ | — |  |  | $ | 5,090 |  |  | $ | 6,085 |  |  | $ | 135 |  |  | $ | — |  |  | $ | 12,131 |
Collectively evaluated for impairment |  |  | 25,173 |  |  |  | 18,214 |  |  |  | 22,073 |  |  |  | 63,672 |  |  |  | 14,786 |  |  |  | 1,221 |  |  |  | 145,139 |
Total ending loan balance |  | $ | 25,994 |  |  | $ | 18,214 |  |  | $ | 27,163 |  |  | $ | 69,757 |  |  | $ | 14,921 |  |  | $ | 1,221 |  |  | $ | 157,270 |
The following table presents loans individually evaluated for impairment by class of loans at September 30, 2012. The unpaid principal balance is the contractual principal balance outstanding. The recorded investment is the unpaid principal balance adjusted for partial charge-offs, purchase premiums and discounts, deferred loan fees and costs and includes accrued interest. The table presents accrual basis interest income recognized during the three and nine months ended September 30, 2012. Cash payments of interest during the three and nine months ended September 30, 2012 totaled $120 and $289, respectively.
|  | As of September 30, 2012 |  |  | Three months ended September 30, 2012 |  |  | Nine months ended September 30, 2012 |
|  | Unpaid Principal Balance |  |  | Recorded Investment |  |  | ALLL Allocated |  |  | Average Recorded Investment |  |  | Interest Income Recognized |  |  | Average Recorded Investment |  |  | Interest Income Recognized |
With no related allowance recorded: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial |  | $ | 143 |  |  | $ | 128 |  |  | $ | — |  |  | $ | 130 |  |  | $ | — |  |  | $ | 137 |  |  | $ | — |
Real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Multi-family residential |  |  | 2,934 |  |  |  | 2,029 |  |  |  | — |  |  |  | 2,032 |  |  |  | — |  |  |  | 2,170 |  |  |  | — |
Commercial: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Non-owner occupied |  |  | 2,645 |  |  |  | 1,839 |  |  |  | — |  |  |  | 1,869 |  |  |  | — |  |  |  | 2,357 |  |  |  | — |
Owner occupied |  |  | 2,244 |  |  |  | 1,293 |  |  |  | — |  |  |  | 1,360 |  |  |  | — |  |  |  | 1,400 |  |  |  | — |
Total with no allowance recorded |  |  | 7,966 |  |  |  | 5,289 |  |  |  | — |  |  |  | 5,391 |  |  |  | — |  |  |  | 6,064 |  |  |  | — |
With an allowance recorded: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial |  |  | 669 |  |  |  | 669 |  |  |  | 564 |  |  |  | 672 |  |  |  | 8 |  |  |  | 686 |  |  |  | 30 |
Real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Single-family residential |  |  | 129 |  |  |  | 129 |  |  |  | 47 |  |  |  | 129 |  |  |  | 1 |  |  |  | 131 |  |  |  | 1 |
Multi-family residential |  |  | 2,117 |  |  |  | 1,995 |  |  |  | 585 |  |  |  | 1,996 |  |  |  | 61 |  |  |  | 2,002 |  |  |  | 103 |
Commercial: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Non-owner occupied |  |  | 2,662 |  |  |  | 2,662 |  |  |  | 274 |  |  |  | 2,670 |  |  |  | 40 |  |  |  | 2,684 |  |  |  | 127 |
Owner occupied |  |  | 401 |  |  |  | 401 |  |  |  | 7 |  |  |  | 402 |  |  |  | 6 |  |  |  | 406 |  |  |  | 19 |
Land |  |  | 460 |  |  |  | 415 |  |  |  | 16 |  |  |  | 416 |  |  |  | 6 |  |  |  | 452 |  |  |  | 19 |
Total with an allowance recorded |  |  | 6,438 |  |  |  | 6,271 |  |  |  | 1,493 |  |  |  | 6,285 |  |  |  | 122 |  |  |  | 6,361 |  |  |  | 299 |
Total |  | $ | 14,404 |  |  | $ | 11,560 |  |  | $ | 1,493 |  |  | $ | 11,676 |  |  | $ | 122 |  |  | $ | 12,425 |  |  | $ | 299 |
The following table presents loans individually evaluated for impairment by class of loans at December 31, 2011. The unpaid principal balance is the contractual principal balance outstanding. The recorded investment is the unpaid principal balance adjusted for partial charge-offs, purchase premiums and discounts, deferred loan fees and costs and includes accrued interest. The table presents accrual basis interest income recognized during the three and nine months ended September 30, 2011. Cash payments of interest during the three and nine months ended September 30, 2011 totaled $96 and $118, respectively.
|  | As of December 31, 2011 |  |  | Three months ended September 30, 2011 |  |  | Nine months ended September 30, 2011 |
|  | Unpaid Principal Balance |  |  | Recorded Investment |  |  | ALLL Allocated |  |  | Average Recorded Investment |  |  | Interest Income Recognized |  |  | Average Recorded Investment |  |  | Interest Income Recognized |
With no related allowance recorded: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial |  | $ | 573 |  |  | $ | 47 |  |  | $ | — |  |  | $ | 1,248 |  |  | $ | 7 |  |  | $ | 515 |  |  | $ | 7 |
Real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Single-family residential |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 32 |  |  |  | — |
Multi-family residential |  |  | 6,742 |  |  |  | 4,996 |  |  |  | — |  |  |  | 787 |  |  |  | 1 |  |  |  | 262 |  |  |  | 1 |
Commercial: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Non-owner occupied |  |  | 2,177 |  |  |  | 1,755 |  |  |  | — |  |  |  | 2,236 |  |  |  | 9 |  |  |  | 796 |  |  |  | 9 |
Owner occupied |  |  | 876 |  |  |  | 446 |  |  |  | — |  |  |  | 1,314 |  |  |  | 21 |  |  |  | 438 |  |  |  | 21 |
Land |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 684 |  |  |  | 11 |  |  |  | 688 |  |  |  | 32 |
Consumer: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Home equity lines of credit: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Originated for portfolio |  |  | 135 |  |  |  | 135 |  |  |  | — |  |  |  | 135 |  |  |  | — |  |  |  | 136 |  |  |  | — |
Total with no allowance recorded |  |  | 10,503 |  |  |  | 7,379 |  |  |  | — |  |  |  | 6,404 |  |  |  | 49 |  |  |  | 2,867 |  |  |  | 70 |
With an allowance recorded: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial |  |  | 796 |  |  |  | 774 |  |  |  | 624 |  |  |  | 515 |  |  |  | 8 |  |  |  | 1,163 |  |  |  | 8 |
Real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Multi-family residential |  |  | 94 |  |  |  | 94 |  |  |  | 11 |  |  |  | 2,278 |  |  |  | — |  |  |  | 3,048 |  |  |  | — |
Commercial: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Non-owner occupied |  |  | 2,823 |  |  |  | 2,823 |  |  |  | 210 |  |  |  | 1,379 |  |  |  | 31 |  |  |  | 1,752 |  |  |  | 31 |
Owner occupied |  |  | 411 |  |  |  | 411 |  |  |  | 20 |  |  |  | 350 |  |  |  | — |  |  |  | 817 |  |  |  | — |
Land |  |  | 766 |  |  |  | 650 |  |  |  | 32 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Total with an allowance recorded |  |  | 4,890 |  |  |  | 4,752 |  |  |  | 897 |  |  |  | 4,522 |  |  |  | 39 |  |  |  | 6,780 |  |  |  | 39 |
Total |  | $ | 15,393 |  |  | $ | 12,131 |  |  | $ | 897 |  |  | $ | 10,926 |  |  | $ | 88 |  |  | $ | 9,647 |  |  | $ | 109 |
The following table presents the recorded investment in nonaccrual loans by class of loans:
|  | September 30, 2012 |  |  | December 31, 2011 |
Commercial |  | $ | 667 |  |  | $ | 47 |
Real estate: |  |  |  |  |  |  |  |
Single-family residential |  |  | 44 |  |  |  | 736 |
Multi-family residential |  |  | 3,937 |  |  |  | 4,996 |
Commercial: |  |  |  |  |  |  |  |
Non-owner occupied |  |  | 1,839 |  |  |  | 1,910 |
Owner occupied |  |  | 1,293 |  |  |  | 446 |
Consumer: |  |  |  |  |  |  |  |
Home equity lines of credit: |  |  |  |  |  |  |  |
Originated for portfolio |  |  | 66 |  |  |  | 157 |
Purchased for portfolio |  |  | 81 |  |  |  | 9 |
Total nonaccrual and nonperforming loans |  | $ | 7,927 |  |  | $ | 8,301 |
Nonaccrual loans include both smaller balance single-family mortgage and consumer loans that are collectively evaluated for impairment and individually classified impaired loans. There were no loans 90 days or more past due and still accruing interest at September 30, 2012 or December 31, 2011. The following table presents the aging of the recorded investment in past due loans by class of loans as of September 30, 2012:
|  | 30 - 59 Days Past Due |  |  | 60 - 89 Days Past Due |  |  | Greater than 90 Days Past Due |  |  | Total Past Due |  |  | Loans Not Past Due |  |  | Nonaccrual Loans Not > 90 days Past Due |
Commercial |  | $ | 21 |  |  | $ | 112 |  |  | $ | 120 |  |  | $ | 253 |  |  | $ | 17,934 |  |  | $ | 547 |
Real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Single-family residential |  |  | 302 |  |  |  | 706 |  |  |  | — |  |  |  | 1,008 |  |  |  | 14,417 |  |  |  | 44 |
Multi-family residential |  |  | — |  |  |  | — |  |  |  | 2,029 |  |  |  | 2,029 |  |  |  | 20,871 |  |  |  | 1,908 |
Commercial: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Non-owner occupied |  |  | 42 |  |  |  | — |  |  |  | 1,243 |  |  |  | 1,285 |  |  |  | 29,507 |  |  |  | 596 |
Owner occupied |  |  | — |  |  |  | — |  |  |  | 300 |  |  |  | 300 |  |  |  | 22,386 |  |  |  | 993 |
Land |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 4,639 |  |  |  | — |
Consumer: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Home equity lines of credit: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Originated for portfolio |  |  | — |  |  |  | — |  |  |  | 66 |  |  |  | 66 |  |  |  | 10,734 |  |  |  | — |
Purchased for portfolio |  |  | 130 |  |  |  | — |  |  |  | 81 |  |  |  | 211 |  |  |  | 2,134 |  |  |  | — |
Other |  |  | 61 |  |  |  | — |  |  |  | — |  |  |  | 61 |  |  |  | 977 |  |  |  | — |
Total |  | $ | 556 |  |  | $ | 818 |  |  | $ | 3,839 |  |  | $ | 5,213 |  |  | $ | 123,599 |  |  | $ | 4,088 |
The following table presents the aging of the recorded investment in past due loans by class of loans as of December 31, 2011:
|  | 30 - 59 Days Past Due |  |  | 60 - 89 Days Past Due |  |  | Greater than 90 Days Past Due |  |  | Total Past Due |  |  | Loans Not Past Due |  |  | Nonaccrual Loans Not > 90 Days Past Due |
Commercial |  | $ | 103 |  |  | $ | — |  |  | $ | — |  |  | $ | 103 |  |  | $ | 25,891 |  |  | $ | 47 |
Real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Single-family residential |  |  | 714 |  |  |  | 474 |  |  |  | 491 |  |  |  | 1,679 |  |  |  | 16,535 |  |  |  | 245 |
Multi-family residential |  |  | — |  |  |  | — |  |  |  | 3,065 |  |  |  | 3,065 |  |  |  | 24,098 |  |  |  | 1,931 |
Commercial: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Non-owner occupied |  |  | 173 |  |  |  | 275 |  |  |  | 68 |  |  |  | 516 |  |  |  | 35,899 |  |  |  | 1,842 |
Owner occupied |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 27,900 |  |  |  | 446 |
Land |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 5,442 |  |  |  | — |
Consumer: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Home equity lines of credit: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Originated for portfolio |  |  | 22 |  |  |  | — |  |  |  | 135 |  |  |  | 157 |  |  |  | 12,126 |  |  |  | 22 |
Purchased for portfolio |  |  | — |  |  |  | — |  |  |  | 9 |  |  |  | 9 |  |  |  | 2,629 |  |  |  | — |
Other |  |  | — |  |  |  | 30 |  |  |  | — |  |  |  | 30 |  |  |  | 1,191 |  |  |  | — |
Total |  | $ | 1,012 |  |  | $ | 779 |  |  | $ | 3,768 |  |  | $ | 5,559 |  |  | $ | 151,711 |  |  | $ | 4,533 |
Troubled Debt Restructurings (TDRs): The Company has allocated $1,493 and $897 of specific reserves to loans whose terms have been modified in TDRs as of September 30, 2012 and December 31, 2011. The Company has not committed to lend additional amounts as of September 30, 2012 or December 31, 2011 to customers with outstanding loans that are classified as nonaccrual TDRs. During the quarter ended September 30, 2012, no loans were modified as a TDR, where concessions were granted to a borrower experiencing financial difficulties. During the nine months ended September 30, 2012, the terms of 2 loans were modified as TDRs, where concessions were granted to borrowers experiencing financial difficulties. One non-owner occupied commercial real estate loan included an extension of the maturity date from May 31, 2012 to September 30, 2012 and required a $50 principal repayment at the date of modification. One single-family residential loan was modified as a TDR during the nine months ended September 30, 2012 and included a reduction in the stated interest rate of the loan from 10% to 5%, a waiver of a portion of the accrued and unpaid interest, addition of the remaining accrued and unpaid interest to the principal balance and extension of the maturity date from 2034 to 2042. This modification involved a reduction in the stated interest rate of the loan for a period of 30 years. The following table presents loans modified as TDRs by class of loans during the nine months ended September 30, 2012:
|  | Nine months ended September 30, 2012 |
|  | Number of Loans |  |  | Pre-Modification Outstanding Recorded Investment |  |  | Post-Modification Outstanding Recorded Investment |
Real estate: |  |  |  |  |  |  |  |  |  |  |  |
Single-family residential |  |  | 1 |  |  |  | 132 |  |  |  | 138 |
Commercial: |  |  |  |  |  |  |  |  |  |  |  |
Non-owner occupied |  |  | 1 |  |  |  | 478 |  |  |  | 428 |
Total |  |  | 2 |  |  | $ | 610 |  |  | $ | 566 |
The TDRs described resulted in a $46 increase in the ALLL during the nine months ended September 30, 2012 and did not result in a charge-off during the three and nine months ended September 30, 2012. There were no TDRs in payment default or that became nonperforming during the period ended September 30, 2012, that had been modified within the twelve months ended September 30, 2012. A loan is considered to be in payment default once it is 90 days contractually past due under the modified terms, at which time the loan is re-evaluated to determine whether an impairment loss should be recognized, either through a write-off or specific valuation allowance, so that the loan is reported, net, at the present value of estimated future cash flows, or at the fair value of collateral, less cost to sell, if repayment is expected solely from the collateral. The terms of certain other loans were modified during the nine months ended September 30, 2012 that did not meet the definition of a TDR because the borrowers were not experiencing financial difficulties or there were no concessions granted. These loans had a total recorded investment as of September 30, 2012 of $9,235. In order to determine whether a borrower is experiencing financial difficulty, an evaluation is performed of the probability that the borrower will be in payment default on any of its debt in the foreseeable future without the modification. This evaluation is performed under the Company’s internal underwriting policy. There were no loans which were modified during the three or nine months ended September 30, 2012 that did not meet the definition of a TDR due to a delay in payment that was considered to be insignificant. Nonaccrual loans include loans that were modified and identified as TDRs and the loans are not performing. At September 30, 2012 and December 31, 2011, nonaccrual TDRs were as follows:
|  | September 30, 2012 |  |  | December 31, 2011 |
Commercial |  | $ | 539 |  |  | $ | 47 |
Real estate: |  |  |  |  |  |  |  |
Multi-family residential |  |  | 1,908 |  |  |  | 2,527 |
Commercial: |  |  |  |  |  |  |  |
Owner occupied |  |  | 300 |  |  |  | 446 |
Total |  | $ | 2,747 |  |  |  | 3,020 |
Nonaccrual loans at September 30, 2012 and December 31, 2011 do not include $3,824 and $4,597, respectively, of TDRs where customers have established a sustained period of repayment performance, generally six months, the loans are current according to their modified terms and repayment of the remaining contractual payments is expected. These loans are included in total impaired loans. Credit Quality Indicators: The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt, such as current financial information, historical payment experience, credit documentation, public information and current economic trends, among other factors. Management analyzes loans individually by classifying the loans as to credit risk. This analysis includes commercial, commercial real estate and multi-family residential real estate loans. Internal loan reviews for these loan types are performed at least annually, and more often for loans with higher credit risk. Adjustments to loan risk ratings are made based on the reviews and at any time information is received that may affect risk ratings. The following definitions are used for risk ratings: Special Mention. Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of CFBank’s credit position at some future date. Substandard. Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that there will be some loss if the deficiencies are not corrected. Doubtful. Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. Loans not meeting the criteria to be classified into one of the above categories are considered to be not rated or pass-rated loans. Loans listed as not rated are primarily groups of homogeneous loans. Past due information is the primary credit indicator for groups of homogenous loans. Loans listed as pass-rated loans are loans that are subject to internal loan reviews and are determined not to meet the criteria required to be classified as special mention, substandard or doubtful. The recorded investment in loans by risk category and by class of loans as of September 30, 2012 and based on the most recent analysis performed follows. There were no loans rated doubtful at September 30, 2012.
|  | Not Rated |  |  | Pass |  |  | Special Mention |  |  | Substandard |  |  | Total |
Commercial |  | $ | 389 |  |  | $ | 13,568 |  |  | $ | 2,960 |  |  | $ | 1,270 |  |  | $ | 18,187 |
Real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Single-family residential |  |  | 15,381 |  |  |  | — |  |  |  | — |  |  |  | 44 |  |  |  | 15,425 |
Multi-family residential |  |  | — |  |  |  | 12,285 |  |  |  | 5,815 |  |  |  | 4,800 |  |  |  | 22,900 |
Commercial: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Non-owner occupied |  |  | 331 |  |  |  | 21,865 |  |  |  | 3,018 |  |  |  | 5,578 |  |  |  | 30,792 |
Owner occupied |  |  | — |  |  |  | 18,555 |  |  |  | 1,629 |  |  |  | 2,072 |  |  |  | 22,256 |
Land |  |  | 121 |  |  |  | 1,013 |  |  |  | 434 |  |  |  | 3,071 |  |  |  | 4,639 |
Consumer: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Home equity lines of credit: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Originated for portfolio |  |  | 10,734 |  |  |  | — |  |  |  | — |  |  |  | 66 |  |  |  | 10,800 |
Purchased for portfolio |  |  | 1,825 |  |  |  | — |  |  |  | 439 |  |  |  | 81 |  |  |  | 2,345 |
Other |  |  | 1,038 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 1,038 |
|  | $ | 29,819 |  |  | $ | 67,286 |  |  | $ | 14,295 |  |  | $ | 16,982 |  |  | $ | 128,382 |
The recorded investment in loans by risk category and by class of loans as of December 31, 2011 follows.
|  | Not Rated |  |  | Pass |  |  | Special Mention |  |  | Substandard |  |  | Doubtful |  |  | Total |
Commercial |  | $ | 432 |  |  | $ | 19,591 |  |  | $ | 2,062 |  |  | $ | 3,909 |  |  | $ | — |  |  | $ | 25,994 |
Real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Single-family residential |  |  | 17,478 |  |  |  | — |  |  |  | — |  |  |  | 736 |  |  |  | — |  |  |  | 18,214 |
Multi-family residential |  |  | — |  |  |  | 15,395 |  |  |  | 4,539 |  |  |  | 6,822 |  |  |  | 407 |  |  |  | 27,163 |
Commercial: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Non-owner occupied |  |  | 365 |  |  |  | 22,159 |  |  |  | 5,717 |  |  |  | 8,176 |  |  |  | — |  |  |  | 36,417 |
Owner occupied |  |  | — |  |  |  | 22,526 |  |  |  | 3,474 |  |  |  | 1,898 |  |  |  | — |  |  |  | 27,898 |
Land |  |  | 954 |  |  |  | 1,123 |  |  |  | — |  |  |  | 3,365 |  |  |  | — |  |  |  | 5,442 |
Consumer: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Home equity lines of credit: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Originated for portfolio |  |  | 12,126 |  |  |  | — |  |  |  | — |  |  |  | 157 |  |  |  | — |  |  |  | 12,283 |
Purchased for portfolio |  |  | 2,182 |  |  |  | — |  |  |  | 447 |  |  |  | 9 |  |  |  | — |  |  |  | 2,638 |
Other |  |  | 1,221 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 1,221 |
|  | $ | 34,758 |  |  | $ | 80,794 |  |  | $ | 16,239 |  |  | $ | 25,072 |  |  | $ | 407 |  |  | $ | 157,270 |

X
- Definition The entire disclosure for claims held for amounts due a entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(k)) -URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 3, 4 -Article 5 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=7512638&loc=d3e5074-111524 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -Section 50 -Paragraph 11 -URI http://asc.fasb.org/extlink&oid=7512638&loc=d3e5162-111524 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.3,4) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph k -Article 4 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Statement of Position (SOP) -Number 01-6 -Paragraph 13 -Subparagraph d -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=7512638&loc=d3e5066-111524 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph 7 -Article 9 + Details
Name: | us-gaap_LoansNotesTradeAndOtherReceivablesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration