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)

6 Months Ended

Jun. 30, 2013

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


	June 30,			December 31,
	2013			2012
	(In thousands)
Real estate loans:
Commercial property	$	887,782		$	787,094
Residential property		88,654			101,778

Total real estate loans		976,436			888,872
Commercial and industrial loans:
Commercial term ⁽¹⁾		940,555			884,364
Commercial lines of credit ⁽²⁾		45,195			56,121
SBA loans ⁽³⁾		157,240			148,306
International loans		32,583			34,221

Total commercial and industrial loans		1,175,573			1,123,012
Consumer loans		35,380			36,676

Total gross loans		2,187,389			2,048,560
Allowance for loans losses		(59,876	)		(63,305	)
Deferred loan fees		695			796

Loans receivable, net	$	2,128,208		$	1,986,051

(1)

Includes owner-occupied property loans of $838.5 million and $774.2 million as of June 30, 2013 and December 31, 2012, respectively.

(2)

Includes owner-occupied property loans of $1.0 million and $1.4 million as of June 30, 2013 and December 31, 2012, respectively.

(3)

Includes owner-occupied property loans of $142.9 million and $128.4 million as of June 30, 2013 and December 31, 2012, respectively.

Loans Receivable to Loans Held for Sale

The following table details the information on the sales and reclassifications of loans receivable to loans held for sale by portfolio segment for the three months ended June 30, 2013 and 2012:


	Real Estate			Commercial and Industrial			Consumer		Total
	(In thousands)
June 30, 2013
Balance at beginning of period	$	—		$	6,043		$	—	$	6,043
Origination of loans held for sale		—			22,834			—		22,834
Reclassification from loans receivable to loans held for sale		780			3,857			—		4,637
Sales of loans held for sale		—			(30,956	)		—		(30,956	)
Principal payoffs and amortization		—			(5	)		—		(5	)

Balance at end of period	$	780		$	1,773		$	—	$	2,553

June 30, 2012
Balance at beginning of period	$	10,879		$	45,114		$	—	$	55,993
Origination of loans held for sale		—			34,723			—		34,723
Reclassification from loans receivable to loans held for sale		15,148			11,842			—		26,990
Reclassification from loans held for sale to loans receivable		(1,647	)		(132	)		—		(1,779	)
Sales of loans held for sale		(21,909	)		(87,552	)		—		(109,461	)
Principal payoffs and amortization		(58	)		(146	)		—		(204	)
Valuation adjustments		(1,124	)		—			—		(1,124	)

Balance at end of period	$	1,289		$	3,849		$	—	$	5,138

The following table details the information on the sales and reclassifications of loans receivable to loans held for sale by portfolio segment for the six months ended June 30, 2013 and 2012:


	Real Estate			Commercial and Industrial			Consumer		Total
	(In thousands)
June 30, 2013
Balance at beginning of period	$	—		$	8,306		$	—	$	8,306
Origination of loans held for sale		—			45,978			—		45,978
Reclassification from loans receivable to loans held for sale		780			7,230			—		8,010
Sales of loans held for sale		—			(59,721	)		—		(59,721	)
Principal payoffs and amortization		—			(20	)		—		(20	)

Balance at end of period	$	780		$	1,773		$	—	$	2,553

June 30, 2012
Balance at beginning of period	$	11,068		$	11,519		$	—	$	22,587
Origination of loans held for sale		—			60,589			—		60,589
Reclassification from loans receivable to loans held for sale		32,224			32,247			—		64,471
Reclassification from loans held for sale to other real estate owned		(360	)		—			—		(360	)
Reclassification from loans held for sale to loans receivable		(1,647	)		(132	)		—		(1,779	)
Sales of loans held for sale		(38,703	)		(99,455	)		—		(138,158	)
Principal payoffs and amortization		(169	)		(262	)		—		(431	)
Valuation adjustments		(1,124	)		(657	)		—		(1,781	)

Balance at end of period	$	1,289		$	3,849		$	—	$	5,138

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									As of and for the
	Three Months Ended									Six Months Ended
	June 30,			March 31,			June 30,			June 30,			June 30,
	2013			2013			2012			2013			2012
	(In thousands)
Allowance for loan losses:
Balance at beginning of period	$	61,191		$	63,305		$	81,052		$	63,305		$	89,936
Actual charge-offs		(3,490	)		(3,024	)		(14,716	)		(6,514	)		(27,037	)
Recoveries on loans previously charged off		1,867			714			1,324			2,581			2,361

Net loan charge-offs		(1,623	)		(2,310	)		(13,392	)		(3,933	)		(24,676	)
Provision charged to operating expense		308			196			4,233			504			6,633

Balance at end of period	$	59,876		$	61,191		$	71,893		$	59,876		$	71,893

Allowance for off-balance sheet items:
Balance at beginning of period	$	1,628		$	1,824		$	2,581		$	1,822		$	2,981
Provision charged to operating expense		(308	)		(196	)		(233	)		(504	)		(633	)

Balance at end of period	$	1,320		$	1,628		$	2,348		$	1,318		$	2,348

Allowance for Loan Losses by Portfolio Segment

The following table details the information on the allowance for loan losses by portfolio segment for the three months ended June 30, 2013 and 2012:


				Commercial
	Real Estate			and Industrial			Consumer			Unallocated			Total
	(In thousands)
June 30, 2013
Allowance for loan losses:
Beginning balance	$	17,832		$	39,560		$	1,795		$	2,004		$	61,191
Charge-offs		(146	)		(3,308	)		(36	)		—			(3,490	)
Recoveries on loans previously charged off		1,042			819			6			—			1,867
Provision		(248	)		1,963			119			(1,526	)		308

Ending balance	$	18,480		$	39,034		$	1,884		$	478		$	59,876

Ending balance: individually evaluated for impairment	$	28		$	5,011		$	385		$	—		$	5,424

Ending balance: collectively evaluated for impairment	$	18,452		$	34,023		$	1,499		$	478		$	54,452

Loans receivable:
Ending balance	$	976,436		$	1,175,573		$	35,380		$	—		$	2,187,389

Ending balance: individually evaluated for impairment	$	6,972		$	37,055		$	1,647		$	—		$	45,674

Ending balance: collectively evaluated for impairment	$	969,464		$	1,138,518		$	33,733		$	—		$	2,141,715

June 30, 2012
Allowance for loan losses:
Beginning balance	$	22,230		$	54,638		$	2,244		$	1,940		$	81,052
Charge-offs		(5,243	)		(9,393	)		(80	)		—			(14,716	)
Recoveries on loans previously charged off		517			789			18			—			1,324
Provision		3,902			776			(425	)		(20	)		4,233

Ending balance	$	21,406		$	46,810		$	1,757		$	1,920		$	71,893

Ending balance: individually evaluated for impairment	$	437		$	7,224		$	—		$	—		$	7,661

Ending balance: collectively evaluated for impairment	$	20,969		$	39,586		$	1,757		$	1,920		$	64,232

Loans receivable:
Ending balance	$	839,816		$	1,070,469		$	39,339		$	—		$	1,949,624

Ending balance: individually evaluated for impairment	$	16,619		$	42,087		$	1,401		$	—		$	60,107

Ending balance: collectively evaluated for impairment	$	823,197		$	1,028,382		$	37,938		$	—		$	1,889,517

The following table details the information on the allowance for loan losses by portfolio segment for the six months ended June 30, 2013 and 2012:


				Commercial
	Real Estate			and Industrial			Consumer			Unallocated			Total
	(In thousands)
June 30, 2013
Allowance for loan losses:
Beginning balance	$	18,180		$	41,928		$	2,280		$	917		$	63,305
Charge-offs		(359	)		(5,955	)		(200	)		—			(6,514	)
Recoveries on loans previously charged off		1,050			1,476			55			—			2,581
Provision		(391	)		1,585			(251	)		(439	)		504

Ending balance	$	18,480		$	39,034		$	1,884		$	478		$	59,876

Ending balance: individually evaluated for impairment	$	28		$	5,011		$	385		$	—		$	5,424

Ending balance: collectively evaluated for impairment	$	18,452		$	34,023		$	1,499		$	478		$	54,452

Loans receivable:
Ending balance	$	976,436		$	1,175,573		$	35,380		$	—		$	2,187,389

Ending balance: individually evaluated for impairment	$	6,972		$	37,055		$	1,647		$	—		$	45,674

Ending balance: collectively evaluated for impairment	$	969,464		$	1,138,518		$	33,733		$	—		$	2,141,715

June 30, 2012
Allowance for loan losses:
Beginning balance	$	19,637		$	66,005		$	2,243		$	2,051		$	89,936
Charge-offs		(8,085	)		(18,508	)		(444	)		—			(27,037	)
Recoveries on loans previously charged off		517			1,802			42			—			2,361
Provision		9,337			(2,489	)		(84	)		(131	)		6,633

Ending balance	$	21,406		$	46,810		$	1,757		$	1,920			71,893

Ending balance: individually evaluated for impairment	$	437		$	7,224		$	—		$	—			7,661

Ending balance: collectively evaluated for impairment	$	20,969		$	39,586		$	1,757		$	1,920			64,232

Loans receivable:														—
Ending balance	$	839,816		$	1,070,469		$	39,339		$	—			1,949,624

Ending balance: individually evaluated for impairment	$	16,619		$	42,087		$	1,401		$	—			60,107

Ending balance: collectively evaluated for impairment	$	823,197		$	1,028,382		$	37,938		$	—			1,889,517

Credit Quality of Loan Portfolio

As of June 30, 2013 and December 31, 2012, pass (grade 0-4), criticized (grade 5) and classified (grade 6-7) loans, disaggregated by loan class, were as follows:


	Pass (Grade 0-4)		Criticized (Grade 5)		Classified (Grade 6-7)		Total Loans
	(In thousands)
June 30, 2013
Real estate loans:
Commercial property
Retail	$	433,954	$	3,755	$	2,362	$	440,071
Land		5,465		—		7,981		13,446
Other		419,664		12,026		2,575		434,265
Residential property		86,677		—		1,977		88,654
Commercial and industrial loans:
Commercial term
Unsecured		84,786		631		16,612		102,029
Secured by real estate		779,408		16,105		43,013		838,526
Commercial lines of credit		42,914		608		1,673		45,195
SBA loans		146,716		884		9,640		157,240
International loans		31,303		—		1,280		32,583
Consumer loans		32,617		181		2,582		35,380

Total gross loans	$	2,063,504	$	34,190	$	89,695	$	2,187,389

December 31, 2012
Real estate loans:
Commercial property
Retail	$	386,650	$	3,971	$	2,324	$	392,945
Land		5,491		—		8,516		14,007
Other		366,518		12,132		1,492		380,142
Residential property		99,250		—		2,528		101,778
Commercial and industrial loans:
Commercial term
Unsecured		87,370		663		22,139		110,172
Secured by real estate		710,723		13,038		50,431		774,192
Commercial lines of credit		53,391		863		1,867		56,121
SBA loans		136,058		1,119		11,129		148,306
International loans		34,221		—		—		34,221
Consumer loans		33,707		201		2,768		36,676

Total gross loans	$	1,913,379	$	31,987	$	103,194	$	2,048,560

Analysis of Past Due Loans, Disaggregated by Loan Class

The following is an aging analysis of past due loans, disaggregated by loan class, as of June 30, 2013 and December 31, 2012:


	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)
June 30, 2013
Real estate loans:
Commercial property
Retail	$	—	$	—	$	—	$	—	$	440,071	$	440,071	$	—
Land		—		—		—		—		13,446		13,446		—
Other		—		—		—		—		434,265		434,265		—
Residential property		—		219		810		1,029		87,625		88,654		—
Commercial and industrial loans:
Commercial term
Unsecured		416		455		1,885		2,756		99,273		102,029		—
Secured by real estate		—		—		122		122		838,404		838,526		—
Commercial lines of credit		—		146		188		334		44,861		45,195		—
SBA loans		2,376		2,707		3,718		8,801		148,439		157,240		—
International loans		—		—		—		—		32,583		32,583		—
Consumer loans		492		962		413		1,867		33,513		35,380		—

Total gross loans	$	3,284	$	4,489	$	7,136	$	14,909	$	2,172,480	$	2,187,389	$	—

December 31, 2012
Real estate loans:
Commercial property
Retail	$	—	$	111	$	—	$	111	$	392,834	$	392,945	$	—
Land		—		—		335		335		13,672		14,007		—
Other		—		—		—		—		380,142		380,142		—
Residential property		—		588		311		899		100,879		101,778		—
Commercial and industrial loans:
Commercial term
Unsecured		918		1,103		1,279		3,300		106,872		110,172		—
Secured by real estate		1,949		—		926		2,875		771,317		774,192		—
Commercial lines of credit		—		188		416		604		55,517		56,121		—
SBA loans		3,759		1,039		2,800		7,598		140,708		148,306		—
International loans		—		—		—		—		34,221		34,221		—
Consumer loans		61		146		538		745		35,931		36,676		—

Total gross loans	$	6,687	$	3,175	$	6,605	$	16,467	$	2,032,093	$	2,048,560	$	—

Information on Impaired Loans, Disaggregated by Loan Class

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


	Recorded Investment		Unpaid Principal Balance		With No Related Allowance Recorded		With an Allowance Recorded		Related Allowance
	(In thousands)
June 30, 2013
Real estate loans:
Commercial property
Retail	$	1,818	$	1,818	$	1,818	$	—	$	—
Land		1,612		1,902		1,612		—		—
Other		523		523		—		523		28
Residential property		3,019		3,091		3,019		—		—
Commercial and industrial loans:
Commercial term
Unsecured		12,689		13,742		3,440		9,249		3,863
Secured by real estate		16,492		17,649		15,887		605		119
Commercial lines of credit		1,052		1,259		1,052		—		—
SBA loans		5,541		8,832		3,363		2,178		998
International loans		1,281		1,280		572		709		31
Consumer loans		1,647		1,718		457		1,190		385

Total gross loans	$	45,674	$	51,814	$	31,220	$	14,454	$	5,424

December 31, 2012
Real estate loans:
Commercial property
Retail	$	2,930	$	3,024	$	2,930	$	—	$	—
Land		2,097		2,307		2,097		—		—
Other		527		527		—		527		67
Residential property		3,265		3,308		1,866		1,399		94
Commercial and industrial loans:
Commercial term
Unsecured		14,532		15,515		6,826		7,706		2,144
Secured by real estate		22,050		23,221		9,520		12,530		2,319
Commercial lines of credit		1,521		1,704		848		673		230
SBA loans		6,170		10,244		4,294		1,876		762
International loans		—		—		—		—		—
Consumer loans		1,652		1,711		449		1,203		615

Total gross loans	$	54,744	$	61,561	$	28,830	$	25,914	$	6,231

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


	Average Recorded Investment for the Three Months Ended		Interest Income Recognized for the Three Months Ended		Average Recorded Investment for the Six Months Ended		Interest Income Recognized for the Six Months Ended
	(In thousands)
June 30, 2013
Real estate loans:
Commercial property
Retail	$	1,823	$	18	$	2,309	$	44
Land		1,637		40		1,674		80
Other		524		6		525		10
Residential property		3,027		31		3,043		59
Commercial and industrial loans:
Commercial term
Unsecured		12,933		221		13,093		406
Secured by real estate		16,539		305		17,026		618
Commercial lines of credit		1,060		9		1,286		24
SBA loans		5,595		281		6,034		554
International loans		1,330		—		1,414		—
Consumer loans		1,649		15		1,646		27

Total gross loans	$	46,117	$	926	$	48,050	$	1,822

June 30, 2012
Real estate loans:
Commercial property
Retail	$	2,546	$	19	$	1,945	$	48
Land		2,137		45		2,175		91
Other		878		11		1,138		33
Construction		7,983		89		8,090		178
Residential property		3,177		48		3,259		84
Commercial and industrial loans:
Commercial term
Unsecured		13,474		192		14,257		430
Secured by real estate		19,021		525		22,756		958
Commercial lines of credit		1,788		22		1,835		30
SBA loans		8,336		286		8,150		483
Consumer loans		1,402		2		903		10

Total gross loans	$	60,742	$	1,239	$	64,508	$	2,345

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						Six Months Ended
	June 30,			June 30,			June 30,			June 30,
	2013			2012			2013			2012
	(In thousands)
Interest income that would have been recognized had impaired loans performed in accordance with their original terms	$	1,057		$	1,505		$	2,125		$	2,933
Less: Interest income recognized on impaired loans		(926	)		(1,239	)		(1,822	)		(2,345	)

Interest foregone on impaired loans	$	131		$	266		$	303		$	588

Non-Accrual Loans, Disaggregated by Loan Class

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


	June 30,		December 31,
	2013		2012
	(In thousands)
Real estate loans:
Commercial property
Retail	$	—	$	1,079
Land		1,612		2,097
Residential property		1,620		1,270
Commercial and industrial loans:
Commercial term
Unsecured		6,209		8,311
Secured by real estate		5,389		8,679
Commercial lines of credit		1,052		1,521
SBA loans		10,596		12,563
Consumer loans		1,497		1,759

Total non-accrual loans	$	27,975	$	37,279

Non-Performing Assets

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


	June 30,		December 31,
	2013		2012
	(In thousands)
Non-accrual loans	$	27,975	$	37,279
Loans 90 days or more past due and still accruing		—		—

Total non-performing loans		27,975		37,279
Other real estate owned		900		774

Total non-performing assets	$	28,875	$	38,053

Troubled Debt Restructurings, Disaggregated by Type of Concession and by Loan Type

The following table details troubled debt restructurings, disaggregated by concession type and by loan type, as of June 30, 2013 and December 31, 2012:


	Non-Accrual TDRs										Accrual TDRs
	Deferral of Principal		Deferral of Principal and Interest		Reduction of Principal and Interest		Extension of Maturity		Total		Deferral of Principal		Deferral of Principal and Interest		Reduction of Principal and Interest		Extension of Maturity		Total
									(In thousands)
June 30, 2013
Real estate loans:
Commercial property
Retail	$	—	$	—	$	—	$	—	$	—	$	342	$	—	$	—	$	174	$	516
Other		—		—		—		—		—		523		—		—		—		523
Residential property		811		—		—		—		811		—		—		—		—		—
Commercial and industrial loans:
Commercial term
Unsecured		—		570		2,830		926		4,326		906		—		1,848		2,671		5,425
Secured by real estate		2,221		1,035		279		—		3,535		2,116		—		579		4,510		7,205
Commercial lines of credit		656		—		188		208		1,052		—		—		—		—		—
SBA loans		1,641		1,191		811		—		3,643		450		—		75		—		525
International loans		—		—		—		—		—		—		—		1,280		—		1,280
Consumer loans		—		—		—		—		—		—		—		149		—		149

Total	$	5,329	$	2,796	$	4,108	$	1,134	$	13,367	$	4,337	$	—	$	3,931	$	7,355	$	15,623

December 31, 2012
Real estate loans:
Commercial property
Retail	$	—	$	—	$	—	$	1,080	$	1,080	$	357	$	—	$	—	$	175	$	532
Other		—		—		—		—		—		527		—		—		—		527
Residential property		827		—		—		—		827		—		572		—		—		572
Commercial and industrial loans:
Commercial term
Unsecured		—		658		4,558		1,413		6,629		976		—		1,090		3,260		5,326
Secured by real estate		2,317		1,343		318		—		3,978		4,444		—		448		4,547		9,439
Commercial lines of credit		673		—		188		244		1,105		—				—		—		—
SBA loans		2,831		1,287		1,032		—		5,150		484		—		100		—		584

Total	$	6,648	$	3,288	$	6,096	$	2,737	$	18,769	$	6,788	$	572	$	1,638	$	7,982	$	16,980

Troubled Debt Restructuring, Disaggregated by Loan Class

The following table details troubled debt restructuring, disaggregated by loan class, for the three months ended June 30, 2013 and 2012:


	June 30, 2013						June 30, 2012
	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)
Commercial and industrial loans:
Commercial term
Unsecured ⁽¹⁾		6	$	518	$	498		10	$	1,640	$	1,588
Secured by real estate ⁽²⁾		—		—		—		1		378		358
Commercial lines of credit ⁽³⁾		1		—		—		1		196		192
SBA loans ⁽⁴⁾		1		148		140		4		681		653
Consumer loans ⁽⁵⁾		1		149		149		—		—		—

Total		9	$	815	$	787		16	$	2,895	$	2,791

(1)

Includes modifications of $42,000 through a reduction of principal or accrued interest and $456,000 through extensions of maturity for the three months ended June 30, 2013, and modifications of $1.2 million through payment deferrals and $394,000 through extensions of maturity for the three months ended June 30, 2012.

(2)

Includes a modification of $358,000 through a reduction of principal or accrued interest for the three months ended June 30, 2012.

(3)

Includes a modification of zero through a reduction of principal or accrued interest for the three months ended June 30, 2013 and a modification of $192,000 through a reduction of principal or accrued interest for the three months ended June 30, 2012.

(4)

Includes a modification of $140,000 through a reduction of principal or accrued interest for the three months ended June 30, 2013, and modifications of $362,000 through payment deferrals and $291,000 through reductions of principal or accrued interest for the three months ended June 30, 2012.

(5)

Includes a modification of $149,000 through a reduction of principal or accrued interest for the three months ended June 30, 2013.


	June 30, 2013						June 30, 2012
	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)
Commercial and industrial loans:
Commercial term
Unsecured ⁽¹⁾		7		764		692		27		4,696		4,426
Secured by real estate ⁽²⁾		—		—		—		3		2,211		2,144
Commercial lines of credit ⁽³⁾		1		—		—		1		202		192
SBA loans ⁽⁴⁾		2		161		147		9		975		934
International loans ⁽⁵⁾		2		1,584		1,280		—		—		—
Consumer loans ⁽⁶⁾		1		149		149		—		—		—

Total		13	$	2,658	$	2,268		40	$	8,084	$	7,696

(1)

Includes modifications of $42,000 through a reduction of principal or accrued interest and $650,000 through extensions of maturity for the six months ended June 30, 2013, and modifications of $893,000 through payment deferrals, $1.9 million through reductions of principal or accrued interest and $1.6 million through extensions of maturity for the six months ended June 30, 2012.

(2)

Includes modifications of $1.6 million through reductions of principal or accrued interest and $497,000 through an extension of maturity for the six months ended June 30, 2012.

(3)

(4)

Includes modifications of $7,000 through a payment deferral and $140,000 through a reduction of principal or accrued interest for the six months ended June 30, 2013, and modifications of $503,000 through payments deferral and $442,000 through reductions of principal or accrued interest for the six months ended June 30, 2012.

(5)

Includes a modification of $1.3 million through reductions of principal or accrued interest for the six months ended June 30, 2013.

(6)

Includes a modification of $149,000 through a reduction of principal or accrued interest for the six months ended June 30, 2013.

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

The following table details troubled debt restructurings that defaulted subsequent to the modifications occurring within the previous twelve months, disaggregated by loan class, for the three and six months ended June 30, 2013 and 2012, respectively:


	Three Months Ended								Six Months Ended
	June 30, 2013				June 30, 2012				June 30, 2013				June 30, 2012
	Number of Loans		Recorded Investment		Number of Loans		Recorded Investment		Number of Loans		Recorded Investment		Number of Loans		Recorded Investment
	(In thousands except number of loans)
Commercial and industrial loans:
Commercial term
Unsecured		4	$	311		6	$	636		4	$	311		7	$	677
Secured by real estate		—		—		—		—		1		1,274		—		—
Commercial lines of credit		—		—		1		273		—		—		1		273
SBA loans		2		170		12		1,042		2		170		12		1,042

Total		6	$	481		19	$	1,951		7	$	1,755		20	$	1,992

Changes in Servicing Assets

The changes in servicing assets for the six months ended June 30, 2013 and 2012 were as follows:


	Six Months Ended June 30,
	2013			2012
	(In thousands)
Balance at beginning of period	$	5,542		$	3,720
Additions		1,580			1,702
Amortization		(739	)		(419	)

Balance at end of period	$	6,383		$	5,003