Previously, when a collateral-dependent loan was characterized as a loss, the Company typically established an SVA based on the estimated fair value of the underlying collateral, less any related selling costs and the actual charge off of the loan was not recorded until the foreclosure process was complete. The gross loan balance for these non-performing loans was reported as an outstanding loan with any associated SVAs included in the financial statements as part of the allowance for loan losses. Under the modified policy, which is also acceptable under Generally Accepted Accounting Principles, SVAs are no longer recognized and any losses on loans secured by real estate are charged off in the period the loans, or portion thereof, are deemed uncollectible. The change in policy resulted in additional charge offs in the fourth quarter of 2011 of $9.6 million. All of these charge offs were previously included in the Company’s loss history as part of the evaluation of the allowance for loan losses. Therefore, the additional charge offs did not affect the Company’s provision for loan losses or net income for the period.
The following table summarizes the amounts and categories of non-performing assets in the Bank’s portfolio and loan delinquency information as of the end of the two most recently completed quarters and December 31, 2010.
|December 31,||September 30,||December 31,|
|(Dollars in thousands)||2011||2011||2010|
|One-to-four family real estate||$||4,435||$||2,930||$||4,844|
|Commercial real estate||22,658||24,392||36,737|
|Foreclosed and Repossessed Assets:|
|One-to-four family real estate||352||1,003||972|
|Commercial real estate||16,264||20,141||15,409|
|Total non-performing assets||$||50,609||$||60,002||$||84,469|
|Total as a percentage of total assets||6.40||%||7.33||%||9.59||%|
|Total non-performing loans||$||33,993||$||38,858||$||68,074|
|Total as a percentage of total loans receivable, net||6.10||%||6.57||%||10.25||%|
|Allowance for loan loss to non-performing loans||70.27||%||66.11||%||62.91||%|
|Delinquencies as a percentage of|
|loan and lease portfolio (1)|
(1) Excludes non-accrual loans.