Hanmi Financial Corporation Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

LOANS (Tables)

LOANS (Tables)

9 Months Ended

Sep. 30, 2012

Loans receivable consisted of the following as of the dates indicated:


	September 30, 2012			December 31, 2011
	(In Thousands)
Real Estate Loans:
Commercial Property	$	728,419		$	663,023
Construction		7,868			33,976
Residential Property		103,774			52,921

Total Real Estate Loans		840,061			749,920
Commercial and Industrial Loans:
Commercial Term ⁽¹⁾		861,906			944,836
Commercial Lines of Credit ⁽²⁾		54,266			55,770
SBA Loans ⁽³⁾		134,264			116,192
International Loans		29,378			28,676

Total Commercial and Industrial Loans		1,079,814			1,145,474
Consumer Loans		38,415			43,346

Total Gross Loans		1,958,290			1,938,740
Allowance for Loans Losses		(66,107	)		(89,936	)
Deferred Loan Fees		630			216

Loan Receivables, Net	$	1,892,813		$	1,849,020

⁽¹⁾

Includes owner-occupied property loans of $743.1 million and $776.3 million as of September 30, 2012 and December 31, 2011, respectively.

⁽²⁾

Includes owner-occupied property loans of $1.3 million and $936,000 as of September 30, 2012 and December 31, 2011, respectively.

⁽³⁾

Includes owner-occupied property loans of $115.3 million and $93.6 million as of September 30, 2012 and December 31, 2011, respectively.

Loans Receivable to Loans Held for Sale

The following table details the information on the purchases, sales and reclassifications of loans receivable to loans held for sale by portfolio segment for the three months ended September 30, 2012 and 2011:


	Real Estate			Commercial and Industrial			Consumer		Total
	(In Thousands)
September 30, 2012
Balance at Beginning of Period	$	1,289		$	3,849		$	—	$	5,138
Origination of Loans Held For Sale		—			25,722			—		25,722
Reclassification from Loan Receivables to Loans Held for Sale		8,917			16,404			—		25,321
Sales of Loans Held for Sale		(8,828	)		(36,050	)		—		(44,878	)
Principal Payoffs and Amortization		(21	)		(27	)		—		(48	)
Valuation Adjustments		—			(519	)		—		(519	)

Balance at End of Period	$	1,357		$	9,379		$	—	$	10,736

September 30, 2011
Balance at Beginning of Period	$	974		$	43,131		$	—	$	44,105
Origination of Loans Held For Sale		—			13,560			—		13,560
Reclassification from Loan Receivables to Loans Held for Sale		14,236			17,117			—		31,353
Sales of Loans Held for Sale		(5,506	)		(46,238	)		—		(51,744	)
Principal Payoffs and Amortization		(7	)		(65	)		—		(72	)
Valuation Adjustments		—			—			—		—

Balance at End of Period	$	9,697		$	27,505		$	—	$	37,202

The following table details the information on the purchases, sales and reclassifications of loans receivable to loans held for sale by portfolio segment for the nine months ended September 30, 2012 and 2011:


	Real Estate			Commercial and Industrial			Consumer		Total
	(In Thousands)
September 30, 2012
Balance at Beginning of Period	$	11,068		$	11,519		$	—	$	22,587
Origination of Loans Held For Sale		—			86,311			—		86,311
Reclassification from Loan Receivables to Loans Held for Sale		41,141			48,651			—		89,792
Reclassification from Loans Held for Sale to Other Real Estate Owned		(360	)		—			—		(360	)
Reclassification from Loans Held for Sale to Loan Receivables		(1,647	)		(132	)		—		(1,779	)
Sales of Loans Held for Sale		(47,531	)		(135,505	)		—		(183,036	)
Principal Payoffs and Amortization		(190	)		(289	)		—		(479	)
Valuation Adjustments		(1,124	)		(1,176	)		—		(2,300	)

Balance at End of Period	$	1,357		$	9,379		$	—	$	10,736

September 30, 2011
Balance at Beginning of Period	$	3,666		$	32,954		$	—	$	36,620
Origination of Loans Held For Sale		—			28,656			—		28,656
Reclassification from Loan Receivables to Loans Held for Sale		33,514			38,523			—		72,037
Sales of Loans Held for Sale		(27,329	)		(68,682	)		—		(96,011	)
Principal Payoffs and Amortization		(21	)		(1,177	)		—		(1,198	)
Valuation Adjustments		(133	)		(2,769	)		—		(2,902	)

Balance at End of Period	$	9,697		$	27,505		$	—	$	37,202

Allowance for Loan Losses and Allowance for Off-Balance Sheet Items

Activity in the allowance for loan losses and allowance for off-balance sheet items was as follows for the periods indicated:


	As of and for the Three Months Ended									As of and for the Nine Months Ended
	September 30, 2012			June 30, 2012			September 30, 2011			September 30, 2012			September 30, 2011
	(In Thousands)
Allowance for Loan Losses:
Beginning Balance	$	71,893		$	81,052		$	109,029		$	89,936		$	146,059
Actual Charge-Offs		(7,223	)		(14,716	)		(16,551	)		(34,260	)		(62,384	)
Recoveries on Loans Previously Charged Off		1,320			1,324			1,045			3,681			8,822

Net Loan Charge-Offs		(5,903	)		(13,392	)		(15,506	)		(30,579	)		(53,562	)

Provision Charged to Operating Expense		117			4,233			7,269			6,750			8,295

Ending Balance	$	66,107		$	71,893		$	100,792		$	66,107		$	100,792

Allowance for Off-Balance Sheet Items:
Beginning Balance	$	2,348		$	2,581		$	2,391		$	2,981		$	3,417
Provision Charged to (Reversal of Charged to) Operating Expense		(117	)		(233	)		831			(750	)		(195	)

Ending Balance	$	2,231		$	2,348		$	3,222		$	2,231		$	3,222

Allowance for Credit Losses by Portfolio Segment

The following table details the information on the allowance for credit losses by portfolio segment for the three months ended September 30, 2012 and 2011:


	Real Estate			Commercial and Industrial		Consumer		Unallocated			Total
	(In Thousands)
September 30, 2012
Allowance for Loan Losses:
Beginning Balance	$	21,406		$	46,810	$	1,757	$	1,920		$	71,893
Charge-Offs		1,321			5,571		331		—			7,223
Recoveries on Loans Previously Charged Off		58			1,251		11		—			1,320
Provision		1,080			174		783		(1,920	)		117

Ending Balance	$	21,223		$	42,664	$	2,220	$	—		$	66,107

Ending Balance: Individually Evaluated for Impairment	$	768		$	5,148	$	398	$	—		$	6,314

Ending Balance: Collectively Evaluated for Impairment	$	20,455		$	37,516	$	1,822	$	—		$	59,793

Loans Receivables:
Ending Balance	$	840,061		$	1,079,814	$	38,415	$	—		$	1,958,290

Ending Balance: Individually Evaluated for Impairment	$	16,315		$	41,084	$	1,238	$	—		$	58,637

Ending Balance: Collectively Evaluated for Impairment	$	823,746		$	1,038,730	$	37,177	$	—		$	1,899,653

September 30, 2011
Allowance for Loan Losses:
Beginning Balance	$	24,115		$	82,845	$	1,587	$	482		$	109,029
Charge-Offs		2,142			14,023		386		—			16,551
Recoveries on Loans Previously Charged Off		—			1,014		31		—			1,045
Provision		(165	)		4,961		992		1,481			7,269

Ending Balance	$	21,808		$	74,797	$	2,224	$	1,963		$	100,792

Ending Balance: Individually Evaluated for Impairment	$	3,630		$	25,915	$	285	$	—		$	29,830

Ending Balance: Collectively Evaluated for Impairment	$	18,178		$	48,882	$	1,939	$	1,963		$	70,962

Loans Receivables:

Ending Balance	$	754,472		$	1,192,740	$	44,819	$	—		$	1,992,031

Ending Balance: Individually Evaluated for Impairment	$	47,172		$	95,959	$	1,158	$	—		$	144,289

Ending Balance: Collectively Evaluated for Impairment	$	707,300		$	1,096,781	$	43,661	$	—		$	1,847,742

The following table details the information on the allowance for credit losses by portfolio segment for the nine months ended September 30, 2012 and 2011:


	Real Estate		Commercial and Industrial			Consumer		Unallocated			Total
	(In Thousands)
September 30, 2012
Allowance for Loan Losses:
Beginning Balance	$	19,637	$	66,005		$	2,243	$	2,051		$	89,936
Charge-Offs		9,406		24,079			775		—			34,260
Recoveries on Loans Previously Charged Off		575		3,053			53		—			3,681
Provision		10,419		(2,317	)		699		(2,051	)		6,750

Ending Balance	$	21,223	$	42,664		$	2,220	$	—		$	66,107

Ending Balance: Individually Evaluated for Impairment	$	768	$	5,148		$	398	$	—		$	6,314

Ending Balance: Collectively Evaluated for Impairment	$	20,455	$	37,516		$	1,822	$	—		$	59,793

Loans Receivables:
Ending Balance	$	840,061	$	1,079,814		$	38,415	$	—		$	1,958,290

Ending Balance: Individually Evaluated for Impairment	$	16,315	$	41,084		$	1,238	$	—		$	58,637

Ending Balance: Collectively Evaluated for Impairment	$	823,746	$	1,038,730		$	37,177	$	—		$	1,899,653

September 30, 2011
Allowance for Loan Losses:
Beginning Balance	$	32,766	$	108,986		$	2,079	$	2,228		$	146,059

Charge-Offs		14,786		46,715			883		—			62,384
Recoveries on Loans Previously Charged Off		2,744		6,025			53		—			8,822
Provision		1,084		6,501			975		(265	)		8,295

Ending Balance	$	21,808	$	74,797		$	2,224	$	1,963		$	100,792

Ending Balance: Individually Evaluated for Impairment	$	3,630	$	25,915		$	285	$	—		$	29,830

Ending Balance: Collectively Evaluated for Impairment	$	18,178	$	48,882		$	1,939	$	1,963		$	70,962

Loans Receivables:
Ending Balance	$	754,472	$	1,192,740		$	44,819	$	—		$	1,992,031

Ending Balance: Individually Evaluated for Impairment	$	47,172	$	95,959		$	1,158	$	—		$	144,289

Ending Balance: Collectively Evaluated for Impairment	$	707,300	$	1,096,781		$	43,661	$	—		$	1,847,742

Credit Quality of Loan Portfolio

Loans classified as Loss are considered uncollectible and of such little value that their continuance as active bank assets is not warranted. This classification does not mean that the loan has absolutely no recovery or salvage value, but rather it is not practical or desirable to defer writing off this asset even though partial recovery may be possible in the future. Loans classified Loss will be charged off in a timely manner.


	Pass (Grade 0-4)		Criticized (Grade 5)		Classified (Grade 6-7)		Total Loans
	(In Thousands)
September 30, 2012
Real Estate Loans:
Commercial Property
Retail	$	362,174	$	3,073	$	5,121	$	370,368
Land		4,703		—		12,259		16,962
Other		318,598		20,988		1,503		341,089
Construction		—		—		7,868		7,868
Residential Property		99,815		—		3,959		103,774
Commercial and Industrial Loans:
Commercial Term
Unsecured		89,958		1,729		26,453		118,140
Secured By Real Estate		683,550		5,618		54,598		743,766
Commercial Lines of Credit		51,397		876		1,993		54,266
SBA Loans		121,260		1,442		11,562		134,264
International Loans		29,378		—		—		29,378
Consumer Loans		35,312		207		2,896		38,415

Total	$	1,796,145	$	33,933	$	128,212	$	1,958,290

December 31, 2011
Real Estate Loans:
Commercial Property
Retail	$	292,914	$	8,858	$	10,685	$	312,457
Land		4,351		—		3,418		7,769
Other		297,734		8,428		36,635		342,797
Construction		—		14,080		19,896		33,976
Residential Property		48,592		—		4,329		52,921
Commercial and Industrial Loans:								—
Commercial Term								—
Unsecured		100,804		8,680		41,796		151,280
Secured By Real Estate		634,822		36,290		122,444		793,556
Commercial Lines of Credit		44,985		7,676		3,109		55,770
SBA Loans		96,983		1,496		17,713		116,192
International Loans		26,566		—		2,110		28,676
Consumer Loans		40,454		676		2,216		43,346

Total	$	1,588,205	$	86,184	$	264,351	$	1,938,740

Analysis of Past Due Loans, Disaggregated by Class of Loans

The following is an aging analysis of past due loans, disaggregated by class of loan, as of September 30, 2012 and December 31, 2011:


	30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due		Total Past Due		Current		Total Loans		Accruing 90 Days or More Past Due
	(In Thousands)
September 30, 2012
Real Estate Loans:
Commercial Property
Retail	$	—	$	—	$	—	$	—	$	370,368	$	370,368	$	—
Land		—		—		—		—		16,962		16,962		—
Other		—		—		—		—		341,089		341,089		—
Construction		—		—		7,868		7,868		—		7,868		—
Residential Property		512		241		319		1,072		102,702		103,774		—
Commercial and Industrial Loans:
Commercial Term
Unsecured		1,125		731		613		2,469		115,671		118,140		—
Secured By Real Estate		—		—		1,921		1,921		741,845		743,766		—
Commercial Lines of Credit		—		—		416		416		53,850		54,266		—
SBA Loans		2,267		592		3,212		6,071		128,193		134,264		—
International Loans		—		—		—		—		29,378		29,378		—
Consumer Loans		271		15		136		422		37,993		38,415		—

Total	$	4,175	$	1,579	$	14,485	$	20,239	$	1,938,051	$	1,958,290	$	—

December 31, 2011
Real Estate Loans:
Commercial Property
Retail	$	485	$	—	$	—	$	485	$	311,972	$	312,457	$	—
Land		—		—		—		—		7,769		7,769		—
Other		—		—		—		—		342,797		342,797		—
Construction		—		—		8,310		8,310		25,666		33,976		—
Residential Property		277		1,613		2,221		4,111		48,810		52,921		—
Commercial and Industrial Loans:
Commercial Term
Unsecured		438		611		1,833		2,882		148,398		151,280		—
Secured By Real Estate		3,162		6,496		1,202		10,860		782,696		793,556		—
Commercial Lines of Credit		—		—		416		416		55,354		55,770		—
SBA Loans		260		472		7,108		7,840		108,352		116,192		—
International Loans		—		—		—		—		28,676		28,676		—
Consumer Loans		126		7		154		287		43,059		43,346		—

Total	$	4,748	$	9,199	$	21,244	$	35,191	$	1,903,549	$	1,938,740	$	—

Information on Impaired Loans, Disaggregated by Class of Loans

The following table provides information on impaired loans, disaggregated by class of loans, as of the dates indicated:


	Recorded Investment		Unpaid Principal Balance		With No Related Allowance Recorded		With Allowance Recorded		Related Allowance
	(In Thousands)
September 30, 2012
Real Estate Loans:
Commercial Property
Retail	$	2,606	$	2,680	$	2,606	$	—	$	—
Land		2,037		2,204		2,037		—		—
Other		532		532		—		532		37
Construction		7,868		8,075		7,868		—		—
Residential Property		3,272		3,323		576		2,696		731
Commercial and Industrial Loans:
Commercial Term
Unsecured		13,595		14,535		451		13,144		3,825
Secured By Real Estate		19,841		20,967		16,733		3,108		655
Commercial Lines of Credit		1,547		1,713		863		684		3
SBA Loans		6,101		10,113		4,515		1,586		665
Consumer Loans		1,238		1,283		266		972		398

Total	$	58,637	$	65,425	$	35,915	$	22,722	$	6,314

December 31, 2011
Real Estate Loans:
Commercial Property
Retail	$	1,260	$	1,260	$	1,100	$	160	$	126
Land		3,178		3,210		—		3,178		360
Other		14,773		14,823		1,131		13,642		3,004
Construction		14,120		14,120		14,120		—		—
Residential Property		5,368		5,408		3,208		2,160		128
Commercial and Industrial Loans:
Commercial Term
Unsecured		16,035		16,559		244		15,791		10,793
Secured By Real Estate		53,159		54,156		14,990		38,169		7,062
Commercial Lines of Credit		1,431		1,554		715		716		716
SBA Loans		11,619		12,971		9,445		2,174		1,167
Consumer Loans		746		788		511		235		26

Total	$	121,689	$	124,849	$	45,464	$	76,225	$	23,382

Impaired Loans Disaggregated by Class Average Recorded Investment and Interest Income Recognized

The following table provides information on impaired loans, disaggregated by class of loans, as of the dates indicated:


	Average Recorded Investment for the Three Months Ended		Interest Income Recognized for the Three Months Ended		Average Recorded Investment for the Nine Months Ended		Interest Income Recognized for the Nine Months Ended
		(In Thousands)
September 30, 2012
Real Estate Loans:
Commercial Property
Retail	$	2,597	$	47	$	2,162	$	95
Land		2,054		45		2,134		136
Other		534		5		937		38
Construction		7,868		29		8,016		207
Residential Property		3,279		34		3,265		118
Commercial and Industrial Loans:								—
Commercial Term								—
Unsecured		13,723		214		14,079		644
Secured By Real Estate		19,990		342		21,834		1,300
Commercial Lines of Credit		1,555		16		1,742		46
SBA Loans		6,168		330		7,489		813
Consumer Loans		1,257		49		1,021		59

Total	$	59,025	$	1,111	$	62,679	$	3,456

September 30, 2011
Real Estate Loans:
Commercial Property
Retail	$	8,754	$	27	$	9,733	$	78
Land		16,376		12		22,192		12
Other		21,768		282		21,879		372
Construction		11,057		272		11,201		317
Residential Property		2,364		8		2,386		8
Commercial and Industrial Loans:
Commercial Term
Unsecured		18,972		82		19,554		148
Secured By Real Estate		66,108		813		64,667		1,809
Commercial Lines of Credit		2,398		2		2,631		5
SBA Loans		19,333		23		20,256		63
Consumer Loans		1,181		1		1,286		3

Total	$	168,311	$	1,522	$	175,785	$	2,815

Summary of Interest Foregone on Impaired Loans

The following is a summary of interest foregone on impaired loans for the periods indicated:


	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2012			2011			2012			2011
		(In Thousands)
Interest Income That Would Have Been Recognized Had Impaired Loans Performed in Accordance With Their Original Terms	$	1,382		$	3,063		$	4,315		$	7,143
Less: Interest Income Recognized on Impaired Loans		(1,111	)		(1,522	)		(3,456	)		(2,815	)

Interest Foregone on Impaired Loans	$	271		$	1,541		$	859		$	4,328

Non-Accrual Loans, Disaggregated by Class of Loans

The following table details non-accrual loans, disaggregated by class of loan, for the periods indicated:


	September 30,		December 31,
	2012		2011
	(In Thousands)
Real Estate Loans:
Commercial Property
Retail	$	1,102	$	1,260
Land		2,037		2,362
Other		—		1,199
Construction		7,868		8,310
Residential Property		1,411		2,097
Commercial and Industrial Loans:
Commercial Term
Unsecured		8,106		7,706
Secured By Real Estate		8,418		11,725
Commercial Lines of Credit		1,359		1,431
SBA Loans		13,048		15,479
Consumer Loans		1,343		809

Total Non-Accrual Loans	$	44,692	$	52,378

Non-Performing Assets

The following table details non-performing assets as of the dates indicated:


	September 30, 2012		December 31, 2011
	(In Thousands)
Non-Accrual Loans	$	44,692	$	52,378
Loans 90 Days or More Past Due and Still Accruing		—		—

Total Non-Performing Loans		44,692		52,378
Other Real Estate Owned		364		180

Total Non-Performing Assets	$	45,056	$	52,558

Troubled Debt Restructuring, Disaggregated by Type of Concession and by Type of Loans

The following table details troubled debt restructuring, disaggregated by type of concession and by type of loans as of September 30, 2012 and December 31, 2011:


	Non-Accrual TDRs										Accrual TDRs
	Deferral of Principal		Deferral of Principal and Interest		Reduction of Principal or Interest		Extension of Maturity		Total		Deferral of Principal		Deferral of Principal and Interest		Reduction of Principal or Interest		Extension of Maturity		Total
	(In Thousands)
September 30, 2012
Real Estate Loans:
Commercial Property
Retail	$	—	$	—	$	—	$	1,102	$	1,102	$	—	$	—	$	—	$	177	$	177
Other		—		—		—		—		—		532		—		—		—		532
Residential Property		835		—		121		—		956		1,289		572		—		—		1,861
Commercial and Industrial Loans:
Commercial Term
Unsecured		—		615		5,802		869		7,286		1,010		—		1,127		2,388		4,525
Secured By Real Estate		2,374		1,385		338		1,413		5,510		2,111		—		324		6,495		8,930
Commercial Lines of Credit		684		—		—		258		942		—		—		188		—		188
SBA Loans		2,905		1,365		934		—		5,204		490		33		229		—		752

Total		$6,798	$	3,365	$	7,195	$	3,642	$	21,000	$	5,432	$	605	$	1,868	$	9,060	$	16,965


December 31, 2011
Real Estate Loans:
Commercial Property
Retail	$	—	$	—	$	—	$	1,260	$	1,260	$	—	$	—	$	—	$	—	$	—
Other		900		—		—		—		900		1,480		—		—		—		1,480
Residential Property		—		—		138		—		138		2,167		572		—		—		2,739
Commercial and Industrial Loans:
Commercial Term
Unsecured		765		669		4,650		484		6,568		185		—		7,069		1,584		8,838
Secured By Real Estate		1,202		1,523		2,403		3,243		8,371		2,005		—		8,628		2,699		13,332
Commercial Lines of Credit		715		—		—		198		913		—				—		—		—
SBA Loans		2,758		1,524		794		—		5,076		1,354		468		—		—		1,986

Total	$	6,340	$	3,716	$	7,985	$	5,185	$	23,226	$	7,191	$	1,040	$	15,697	$	4,283	$	28,375

Troubled Debt Restructurings, Disaggregated by Class of Loans

The following table details troubled debt restructurings, disaggregated by class of loans, for the three months ended September 30, 2012 and 2011:


	For the Three Months Ended
	September 30, 2012						September 30, 2011
	Number of Loans		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment		Number of Loans		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
	(In Thousands, Except Number of Loans)
Real Estate Loans:
Commercial Property
Retail ⁽¹⁾		1	$	131	$	177		—	$	—	$	—
Other ⁽²⁾		1		538		532		3		3,782		3,782
Residential Property ⁽^³⁾		—		—		—		1		458		449
Commercial and Industrial Loans:
Commercial Term
Unsecured ⁽^⁴⁾		5		777		759		29		8,279		8,131
Secured By Real Estate ⁽⁵⁾		3		4,525		4,475		7		6,706		6,115
Commercial Lines of Credit ⁽⁶⁾		—		—		—		1		123		120
SBA Loans ⁽^⁷⁾		3		78		89		17		2,684		2,615

Total		13	$	6,049	$	6,032		58	$	22,032	$	21,212

⁽¹⁾

Includes a modification of $177,000 through extension of maturity

⁽²⁾

Includes a modification of $532,000 through payment deferral for the three months ended September 30, 2012 and a modification of $3.8 million through payment deferral for the three months ended September 30, 2011

⁽³⁾

Includes a modification of $449,000 through payment deferral

⁽⁴⁾

Includes modifications of $750,000 through extension of maturity and $9,000 through payment deferral for the three months ended September 30, 2012 and modifications of $6.3 million through reduction of principal or accrued interest, $1.2 million through payment deferral and $700,000 through extension of maturity for the three months ended September 30, 2011

⁽⁵⁾

Includes modifications of $3.1 million through payment deferral and $1.4 million through extension of maturity for the three months ended September 30, 2012, and modifications of $1.2 million through reduction of principal or accrued interest and $4.9 million through payment deferral for the three months ended September 30, 2011

⁽⁶⁾

Includes a modification of $120,000 through extension of maturity

⁽⁷⁾

Includes modifications of $48,000 through payment deferral and $41,000 through reduction of principal or accrued interest for the three months ended September 30, 2012, and modifications of $2.3 million through payment deferral and $273,000 through reduction of principal or accrued interest

The following table details troubled debt restructurings, disaggregated by class of loans, for the nine months ended September 30, 2012 and 2011:


	For the Nine Months Ended
	September 30, 2012						September 30, 2011
	Number of Loans		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment		Number of Loans		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
	(In Thousands, Except Number of Loans)
Real Estate Loans:
Commercial Property
Retail ⁽¹⁾		1	$	184	$	177		2	$	2,982	$	2,895
Other ⁽²⁾		1		547		532		5		5,606		5,588
Residential Property ⁽³⁾		—		—		—		2		1,325		1,315
Commercial and Industrial Loans:
Commercial Term
Unsecured ⁽⁴⁾		31		5,362		4,940		45		14,126		13,556
Secured By Real Estate ⁽⁵⁾		5		5,584		5,307		17		21,342		20,033
Commercial Lines of Credit ⁽⁶⁾		1		202		188		1		123		120
SBA Loans ⁽⁷⁾		11		1,060		1,000		24		7,693		7,149

Total		50	$	12,939	$	12,144		96	$	53,197	$	50,656

⁽¹⁾

Includes a modification of $177,000 through extension of maturity for the nine months ended September 30, 2012 and a modification of $2.9 million through payment deferral for the nine months ended September 30, 2011

⁽²⁾

Includes a modification of $532,000 through payment deferral for the nine months ended September 30, 2012, and includes a modification of $5.6 million through payment deferral for the nine months ended September 30, 2011

⁽³⁾

Includes a modification of $1.3 million through payment deferral

⁽⁴⁾

Includes modifications of $2.2 million through extension of maturity, $1.9 million through reduction of principal or accrued interest, $884,000 through payment deferral for the nine months ended September 30, 2012, and modifications of $11.3 million through reduction of principal or accrued interest, $1.2 million through payment deferral, and $1.1 million through extension of maturity for the nine months ended September 30, 2011

⁽⁵⁾

Includes modifications of $3.1 million through payment deferral, $1.9 million through extension of maturity and $338,000 through reduction of principal or accrued interest for the nine months ended September 30, 2012, and modifications of $9.3 million through reduction of principal or accrued interest, $7.4 million through payment deferrals, and $3.3 million in extension of maturity for the nine months ended September 30, 2011

⁽⁶⁾

Includes a modification of $188,000 through reduction of principal or accrued interest for the nine months ended September 30, 2012, and a modification of $120,000 through extension of maturity for the nine months ended September 30, 2011

⁽⁷⁾

Includes modifications of $551,000 through payment deferral and $449,000 through reduction of principal or accrued interest for the nine months ended September 30, 2012, and modifications of $6.2 million through payment deferral and $919,000 through reduction of principal or accrued interest for the nine months ended September 30, 2011

Troubled Debt Restructurings that Defaulted Subsequent to the Modifications Occurring Within the Previous Twelve Months, Disaggregated by Class of Loans

The following table details troubled debt restructurings that defaulted subsequent to the modifications occurring within the previous twelve months, disaggregated by class of loans, during the three months and nine months ended September 30, 2012 and 2011:


	For the Three Months Ended								For the Nine Months Ended
	September 30, 2012				September 30, 2011				September 30, 2012				September 30, 2011
	Number of Loans		Recorded Investment		Number of Loans		Recorded Investment		Number of Loans		Recorded Investment		Number of Loans		Recorded Investment
	(In Thousands)
Real Estate Loans:
Commercial Property
Retail		—	$	—		—	$	—		—	$	—		1	$	1,425
Other		—		—		—		—		—		—		2		1,805
Residential Property		—		—		1		449		—		—		1		449
Commercial and Industrial Loans:
Commercial Term
Unsecured		3		171		8		3,344		6		431		18		6,055
Secured By Real Estate		—		—		3		3,137		—		—		9		10,684
Commercial Lines of Credit		—		—		—		—		1		258		—		—
SBA Loans		6		272		11		1,575		6		272		17		6,013

Totals		9	$	443		23	$	8,505		13	$	961		48	$	26,431

Changes in Servicing Assets

The changes in servicing assets were as follows for the nine months ended September 30, 2012 and 2011:


	September 30, 2012		September 30, 2011
	(In Thousands)
Balance at Beginning of Period	$	3,720	$	2,890
Additions		2,148		481
Amortization		720		(487	)

Balance at End of Period	$	5,148	$	2,884