We recorded no provision for loan losses for the quarter ended December 31, 2012 compared to a provision for loan losses of $1.7 million for the quarter ended December 31, 2011. The provision for loan losses is charged to operations to bring the allowance for loan losses to a level that reflects management's best estimate of the losses inherent in the loan portfolio. The allowance for loan losses to total loans receivable ratio decreased to 0.93 percent at December 31, 2012 from 1.15 percent at December 31, 2011. Net charge-offs decreased $1.8 million, to $412,000, or 0.22 percent of average loans outstanding, for the three months ended December 31, 2012 from $2.3 million, or 1.32 percent of average loans outstanding, for the three months ended December 31, 2011.
Noninterest income increased by $322,000, or 8.3 percent, to $4.3 million for the quarter ended December 31, 2012 from $3.9 million for the quarter ended December 31, 2011, primarily due to increases in gains on sales of loans of $792,000, other income of $97,000, and the increase in cash surrender value of bank-owned life insurance of $93,000, partially offset by a decrease in gains on sales of securities available for sale of $786,000. The increase in gains on sales of loans resulted primarily from increased sales of mortgage loans as the Company began selling a portion of its fixed-rate one- to four-family residential real estate loans with terms of 15 to 25 years during the second half of 2012. The increase in other income was primarily attributable to an increase in income from the rental of our headquarters building. The improvement in the increase in cash surrender value of bank-owned life insurance was primarily due to the purchase of $10.0 million of life insurance policies during the year ended December 31, 2012. The decrease in gains on sales of investment securities is attributable to sales of $56.0 million of investment securities in the fourth quarter of 2011. No sales of investment securities occurred during the fourth quarter of 2012.
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