Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | 3. Loans and Allowance for Loan Losses The Company’s loan and allowance for loan loss policies are as follows: Loans are stated at unpaid principal balances, less net deferred loan fees and the allowance for loan losses. The Company grants real estate mortgage, commercial business and consumer loans. A substantial portion of the loan portfolio is represented by mortgage loans to customers in the Louisville, Kentucky metropolitan statistical area (MSA). The ability of the Company’s customers to honor their loan agreements is largely dependent upon the real estate and general economic conditions in this area. Loan origination and commitment fees, as well as certain direct costs of underwriting and closing loans, are deferred and amortized as a yield adjustment to interest income over the lives of the related loans using the interest method. Amortization of net deferred loan fees is discontinued when a loan is placed on nonaccrual status. The recognition of income on a loan is discontinued and previously accrued interest is reversed, when interest or principal payments become ninety 90 A loan is restored to accrual status when all principal and interest payments are brought current and the borrower has demonstrated the ability to make future payments of principal and interest as scheduled, which generally requires that the borrower demonstrate a period of performance of at least six For portfolio segments other than consumer loans, the Company’s practice is to charge-off any loan or portion of a loan when the loan is determined by management to be uncollectible due to the borrower’s failure to meet repayment terms, the borrower’s deteriorating or deteriorated financial condition, the depreciation of the underlying collateral, the loan’s classification as a loss by regulatory examiners, or for other reasons. A partial charge-off is recorded on a loan when the uncollectibility of a portion of the loan has been confirmed, such as when a loan is discharged in bankruptcy, the collateral is liquidated, a loan is restructured at a reduced principal balance, or other identifiable events that lead management to determine the full principal balance of the loan will not not June 30, 2017, six $196,000 Consumer loans not 90 45 The allowance for loan losses reflects management’s judgment of probable loan losses inherent in the loan portfolio at the balance sheet date. Additions to the allowance for loan losses are made by the provision for loan losses charged to earnings. Loan losses are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. The Company uses a disciplined process and methodology to evaluate the allowance for loan losses on at least a quarterly basis that is based upon management’s periodic review of the collectibility of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may The allowance consists of specific and general components. The specific component relates to loans that are individually evaluated for impairment or loans otherwise classified as doubtful, substandard, or special mention. For such loans that are also classified as impaired, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan. The general component covers non-classified loans and classified loans that are found, upon individual evaluation, to not twelve not Management also applies additional loss factor multiples to loans classified as watch, special mention and substandard that are not June 30, 2017 December 31, 2016. Management exercises significant judgment in evaluating the relevant historical loss experience and the qualitative factors. Management also monitors the differences between estimated and actual incurred loan losses for loans considered impaired in order to evaluate the effectiveness of the estimation process and make any changes in the methodology as necessary. Management utilizes the following portfolio segments in its analysis of the allowance for loan losses: residential real estate, land, construction, commercial real estate, commercial business, home equity and second 10 December 31, 2016. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not Values for collateral dependent loans are generally based on appraisals obtained from independent licensed real estate appraisers, with adjustments applied for estimated costs to sell the property, costs to complete unfinished or repair damaged property and other factors. New appraisals are generally obtained for all significant properties when a loan is identified as impaired, and a property is considered significant if the value of the property is estimated to exceed $200,000. not At June 30, 2017 December 31, 2016, $943,000 $793,000, Loans at June 30, 2017 December 31, 2016 June 30, December 31, (In thousands) 2017 2016 Real estate mortgage loans: Residential $ 134,773 $ 137,842 Land 17,870 13,895 Residential construction 33,736 29,561 Commercial real estate 93,638 96,462 Commercial real estate construction 9,467 8,921 Commercial business loans 28,092 24,056 Consumer loans: Home equity and second mortgage loans 46,089 42,908 Automobile loans 36,287 34,279 Loans secured by savings accounts 1,944 1,879 Unsecured loans 3,747 3,912 Other consumer loans 9,494 9,025 Gross loans 415,137 402,740 Less undisbursed portion of loans in process (18,125 ) (19,037 ) Principal loan balance 397,012 383,703 Deferred loan origination fees, net 966 837 Allowance for loan losses (3,526 ) (3,386 ) Loans, net $ 394,452 $ 381,154 The following table provides the components of the Company’s recorded investment in loans at June 30, 2017: Residential Commercial Commercial Home Equity & Other Real Estate Land Construction Real Estate Business 2nd Mtg Consumer Total (In thousands) Recorded Investment in Loans: Principal loan balance $ 134,773 $ 17,870 $ 25,078 $ 93,638 $ 28,092 $ 46,089 $ 51,472 $ 397,012 Accrued interest receivable 382 56 61 238 75 152 210 1,174 Net deferred loan origination fees and costs 85 17 (4 ) (33 ) 3 898 0 966 Recorded investment in loans $ 135,240 $ 17,943 $ 25,135 $ 93,843 $ 28,170 $ 47,139 $ 51,682 $ 399,152 Recorded Investment in Loans as Evaluated for Impairment: Individually evaluated for impairment $ 2,711 $ 0 $ 0 $ 435 $ 121 $ 259 $ 44 $ 3,570 Collectively evaluated for impairment 132,146 17,943 25,135 93,235 28,049 46,880 51,638 395,026 Acquired with deteriorated credit quality 383 0 0 173 0 0 0 556 Ending balance $ 135,240 $ 17,943 $ 25,135 $ 93,843 $ 28,170 $ 47,139 $ 51,682 $ 399,152 The following table provides the components of the Company’s recorded investment in loans at December 31, 2016: Residential Commercial Commercial Home Equity & Other Real Estate Land Construction Real Estate Business 2nd Mtg Consumer Total (In thousands) Recorded Investment in Loans: Principal loan balance $ 137,842 $ 13,895 $ 19,445 $ 96,462 $ 24,056 $ 42,908 $ 49,095 $ 383,703 Accrued interest receivable 455 42 44 249 67 141 226 1,224 Net deferred loan origination fees and costs 80 14 0 (42 ) 3 782 0 837 Recorded investment in loans $ 138,377 $ 13,951 $ 19,489 $ 96,669 $ 24,126 $ 43,831 $ 49,321 $ 385,764 Recorded Investment in Loans as Evaluated for Impairment: Individually evaluated for impairment $ 2,083 $ 0 $ 0 $ 1,217 $ 143 $ 244 $ 20 $ 3,707 Collectively evaluated for impairment 135,904 13,951 19,489 95,212 23,983 43,587 49,301 381,427 Acquired with deteriorated credit quality 390 0 0 240 0 0 0 630 Ending balance $ 138,377 $ 13,951 $ 19,489 $ 96,669 $ 24,126 $ 43,831 $ 49,321 $ 385,764 An analysis of the allowance for loan losses as of June 30, 2017 Residential Commercial Commercial Home Equity & Other Real Estate Land Construction Real Estate Business 2nd Mtg Consumer Total (In thousands) Ending allowance balance attributable to loans: Individually evaluated for impairment $ 17 $ 0 $ 0 $ 0 $ 40 $ 14 $ 4 $ 75 Collectively evaluated for impairment 195 124 306 1,583 250 666 327 3,451 Acquired with deteriorated credit quality 0 0 0 0 0 0 0 0 Ending balance $ 212 $ 124 $ 306 $ 1,583 $ 290 $ 680 $ 331 $ 3,526 An analysis of the allowance for loan losses as of December 31, 2016 Residential Commercial Commercial Home Equity & Other Real Estate Land Construction Real Estate Business 2nd Mtg Consumer Total (In thousands) Ending allowance balance attributable to loans: Individually evaluated for impairment $ 23 $ 0 $ 0 $ 0 $ 43 $ 13 $ 6 $ 85 Collectively evaluated for impairment 357 56 80 1,670 155 670 313 3,301 Acquired with deteriorated credit quality 0 0 0 0 0 0 0 0 Ending balance $ 380 $ 56 $ 80 $ 1,670 $ 198 $ 683 $ 319 $ 3,386 An analysis of the changes in the allowance for loan losses for the three six June 30, 2017 Residential Commercial Commercial Home Equity & Other Real Estate Land Construction Real Estate Business 2nd Mtg Consumer Total (In thousands) Allowance for loan losses: Changes in Allowance for Loan Losses for the three-months ended June 30, 2017 Beginning balance $ 271 $ 109 $ 223 $ 1,585 $ 244 $ 698 $ 288 $ 3,418 Provisions for loan losses (61 ) 15 83 (4 ) 46 (13 ) 190 256 Charge-offs (6 ) 0 0 (2 ) 0 (6 ) (186 ) (200 ) Recoveries 8 0 0 4 0 1 39 52 Ending balance $ 212 $ 124 $ 306 $ 1,583 $ 290 $ 680 $ 331 $ 3,526 Changes in Allowance for Loan Losses for the six-months ended June 30, 2017 Beginning balance $ 380 $ 56 $ 80 $ 1,670 $ 198 $ 683 $ 319 $ 3,386 Provisions for loan losses (146 ) 68 226 (132 ) 131 1 319 467 Charge-offs (46 ) 0 0 (3 ) (43 ) (6 ) (390 ) (488 ) Recoveries 24 0 0 48 4 2 83 161 Ending balance $ 212 $ 124 $ 306 $ 1,583 $ 290 $ 680 $ 331 $ 3,526 An analysis of the changes in the allowance for loan losses for the three six June 30, 2016 Residential Commercial Commercial Home Equity & Other Real Estate Land Construction Real Estate Business 2nd Mtg Consumer Total (In thousands) Allowance for loan losses: Changes in Allowance for Loan Losses for the three-months ended June 30, 2016 Beginning balance $ 470 $ 84 $ 45 $ 1,468 $ 273 $ 721 $ 258 $ 3,319 Provisions for loan losses (13 ) (37 ) (3 ) 73 (13 ) 66 77 150 Charge-offs (54 ) 0 0 (82 ) (100 ) 0 (95 ) (331 ) Recoveries 5 0 0 14 2 4 26 51 Ending balance $ 408 $ 47 $ 42 $ 1,473 $ 162 $ 791 $ 266 $ 3,189 Changes in Allowance for Loan Losses for the six-months ended June 30, 2016 Beginning balance $ 527 $ 157 $ 47 $ 1,541 $ 261 $ 626 $ 256 $ 3,415 Provisions for loan losses (42 ) (101 ) (5 ) (4 ) 12 192 173 225 Charge-offs (94 ) (9 ) 0 (82 ) (114 ) (36 ) (220 ) (555 ) Recoveries 17 0 0 18 3 9 57 104 Ending balance $ 408 $ 47 $ 42 $ 1,473 $ 162 $ 791 $ 266 $ 3,189 At June 30, 2017 December 31, 2016, not 0.33% 20% $2.2 $1.8 June 30, 2017 December 31, 2016, June 30, 2017 December 31, 2016. At June 30, 2017 December 31, 2016, 1.18 four 1.18 June 30, 2017 December 31, 2016. $526,000 $501,000 June 30, 2017 December 31, 2016, 10 December 31, 2016. no December 31, 2016 June 30, 2017. Management also adjusts the historical loss factors for loans classified as watch, special mention and substandard that are not $563,000 $559,000 June 30, 2017 December 31, 2016, December 31, 2016 June 30, 2017, The following table summarizes the Company’s impaired loans as of June 30, 2017 three six June 30, 2017. not three six June 30, 2017: At June 30, 2017 Three Months Ended Six Months Ended Unpaid Average Interest Average Interest Recorded Principal Related Recorded Income Recorded Income Investment Balance Allowance Investment Recognized Investment Recognized (In thousands) Loans with no related allowance recorded: Residential $ 2,626 $ 2,838 $ 0 $ 2,387 $ 6 $ 2,215 $ 14 Land 0 0 0 0 0 0 0 Construction 0 0 0 0 0 0 0 Commercial real estate 435 584 0 759 6 911 8 Commercial business 71 80 0 72 0 73 0 Home equity/2nd mortgage 227 233 0 228 0 229 1 Other consumer 11 11 0 11 0 7 0 3,370 3,746 0 3,457 12 3,435 23 Loans with an allowance recorded: Residential 85 92 17 87 0 128 0 Land 0 0 0 0 0 0 0 Construction 0 0 0 0 0 0 0 Commercial real estate 0 0 0 0 0 0 0 Commercial business 50 50 40 50 0 56 0 Home equity/2nd mortgage 32 32 14 23 0 19 0 Other consumer 33 33 4 25 0 23 0 200 207 75 185 0 226 0 Total: Residential 2,711 2,930 17 2,474 6 2,343 14 Land 0 0 0 0 0 0 0 Construction 0 0 0 0 0 0 0 Commercial real estate 435 584 0 759 6 911 8 Commercial business 121 130 40 122 0 129 0 Home equity/2nd mortgage 259 265 14 251 0 248 1 Other consumer 44 44 4 36 0 30 0 $ 3,570 $ 3,953 $ 75 $ 3,642 $ 12 $ 3,661 $ 23 The following table summarizes the Company’s impaired loans for the three six June 30, 2016. not three six June 30, 2016: Three Months Ended June 30, 2016 Six Months Ended June 30, 2016 Average Interest Average Interest Recorded Income Recorded Income Investment Recognized Investment Recognized Loans with no related allowance recorded: Residential $ 1,898 $ 8 $ 1,911 $ 14 Land 0 0 8 0 Construction 0 0 0 0 Commercial real estate 3,602 18 3,531 37 Commercial business 63 0 64 0 Home equity/2nd mortgage 53 1 54 1 Other consumer 5 0 3 0 5,621 27 5,571 52 Loans with an allowance recorded: Residential 176 0 136 0 Land 0 0 0 0 Construction 0 0 0 0 Commercial real estate 131 0 165 0 Commercial business 50 0 67 0 Home equity/2nd mortgage 14 0 36 0 Other consumer 34 0 23 0 405 0 427 0 Total: Residential 2,074 8 2,047 14 Land 0 0 8 0 Construction 0 0 0 0 Commercial real estate 3,733 18 3,696 37 Commercial business 113 0 131 0 Home equity/2nd mortgage 67 1 90 1 Other consumer 39 0 26 0 $ 6,026 $ 27 $ 5,998 $ 52 The following table summarizes the Company’s impaired loans as of December 31, 2016: Unpaid Recorded Principal Related Investment Balance Allowance (In thousands) Loans with no related allowance recorded: Residential $ 1,871 $ 2,223 $ 0 Land 0 0 0 Construction 0 0 0 Commercial real estate 1,217 1,540 0 Commercial business 75 81 0 Home equity/2nd mortgage 231 237 0 Other consumer 0 0 0 3,394 4,081 0 Loans with an allowance recorded: Residential 212 217 23 Land 0 0 0 Construction 0 0 0 Commercial real estate 0 0 0 Commercial business 68 68 43 Home equity/2nd mortgage 13 14 13 Other consumer 20 20 6 313 319 85 Total: Residential 2,083 2,440 23 Land 0 0 0 Construction 0 0 0 Commercial real estate 1,217 1,540 0 Commercial business 143 149 43 Home equity/2nd mortgage 244 251 13 Other consumer 20 20 6 $ 3,707 $ 4,400 $ 85 Nonperforming loans consists of nonaccrual loans and loans over 90 June 30, 2017 December 31, 2016: June 30, 2017 December 31, 2016 Loans 90+ Days Total Loans 90+ Days Total Nonaccrual Past Due Nonperforming Nonaccrual Past Due Nonperforming Loans Still Accruing Loans Loans Still Accruing Loans (In thousands) Residential $ 2,269 $ 0 $ 2,269 $ 1,634 $ 55 $ 1,689 Land 0 0 0 0 0 0 Construction 0 0 0 0 0 0 Commercial real estate 30 0 30 924 0 924 Commercial business 121 0 121 142 0 142 Home equity/2nd mortgage 242 0 242 226 0 226 Other consumer 44 0 44 20 23 43 Total $ 2,706 $ 0 $ 2,706 $ 2,946 $ 78 $ 3,024 The following table presents the aging of the recorded investment in loans at June 30, 2017: Purchased 30-59 Days 60-89 Days 90 Days or More Total Credit Total Past Due Past Due Past Due Past Due Current Impaired Loans Loans (In thousands) Residential $ 2,225 $ 624 $ 1,511 $ 4,360 $ 130,497 $ 383 $ 135,240 Land 0 51 0 51 17,892 0 17,943 Construction 0 0 0 0 25,135 0 25,135 Commercial real estate 0 0 30 30 93,640 173 93,843 Commercial business 45 0 65 110 28,060 0 28,170 Home equity/2nd mortgage 3 28 179 210 46,929 0 47,139 Other consumer 143 20 44 207 51,475 0 51,682 Total $ 2,416 $ 723 $ 1,829 $ 4,968 $ 393,628 $ 556 $ 399,152 The following table presents the aging of the recorded investment in loans at December 31, 2016: 30-59 Days 60-89 Days 90 Days or More Total Purchased Credit Total Past Due Past Due Past Due Past Due Current Impaired Loans Loans (In thousands) Residential $ 2,444 $ 707 $ 1,021 $ 4,172 $ 133,815 $ 390 $ 138,377 Land 0 52 0 52 13,899 0 13,951 Construction 0 0 0 0 19,489 0 19,489 Commercial real estate 0 0 27 27 96,402 240 96,669 Commercial business 155 0 83 238 23,888 0 24,126 Home equity/2nd mortgage 352 0 13 365 43,466 0 43,831 Other consumer 319 66 43 428 48,893 0 49,321 Total $ 3,270 $ 825 $ 1,187 $ 5,282 $ 379,852 $ 630 $ 385,764 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, public information, historical payment experience, credit documentation, and current economic trends, among other factors. The Company classifies loans based on credit risk at least quarterly. The Company uses the following regulatory definitions for risk ratings: Special Mention: may Substandard: not Doubtful: Loss: not Loans not The following table presents the recorded investment in loans by risk category as of the date indicated: Residential Commercial Commercial Home Equity & Other Real Estate Land Construction Real Estate Business 2nd Mtg Consumer Total (In thousands) June 30, 2017 Pass $ 131,490 $ 17,738 $ 25,135 $ 87,606 $ 27,182 $ 46,894 $ 51,623 $ 387,668 Special Mention 437 85 0 2,725 789 0 15 4,051 Substandard 886 120 0 3,309 78 3 0 4,396 Doubtful 2,427 0 0 203 121 242 44 3,037 Loss 0 0 0 0 0 0 0 0 Total $ 135,240 $ 17,943 $ 25,135 $ 93,843 $ 28,170 $ 47,139 $ 51,682 $ 399,152 December 31, 2016 Pass $ 135,328 $ 13,795 $ 19,489 $ 87,782 $ 23,246 $ 43,601 $ 49,256 $ 372,497 Special Mention 403 86 0 1,892 661 0 45 3,087 Substandard 721 70 0 5,991 77 4 0 6,863 Doubtful 1,925 0 0 1,004 142 226 20 3,317 Loss 0 0 0 0 0 0 0 0 Total $ 138,377 $ 13,951 $ 19,489 $ 96,669 $ 24,126 $ 43,831 $ 49,321 $ 385,764 The following table summarizes the Company’s troubled debt restructurings (TDRs) by accrual status as of June 30, 2017 December 31, 2016: June 30, 2017 December 31, 2016 Related Allowance Related Allowance Accruing Nonaccrual Total for Loan Losses Accruing Nonaccrual Total for Loan Losses (In thousands) Troubled debt restructurings: Residential real estate $ 390 $ 0 $ 390 $ 0 $ 433 $ 229 $ 662 $ 0 Commercial real estate 429 101 530 0 291 168 459 0 Home equity and 2nd mortgage 17 0 17 0 18 0 18 0 Total $ 836 $ 101 $ 937 $ 0 $ 742 $ 397 $ 1,139 $ 0 At June 30, 2017 December 31, 2016, no There were no three six June 30, 2017 2016. There were no no three six June 30, 2017 2016. There were no 12 90 three six June 30, 2017 2016. may may Purchased Credit Impaired (PCI) Loans Purchased loans acquired in a business combination are recorded at estimated fair value on their purchase date with no not 310 30. The following table presents the carrying amount of PCI loans accounted for under ASC 310 30 June 30, 2017 December 31, 2016: June 30 , December 31 , (In thousands) 2017 2016 Residential real estate $ 383 $ 390 Commercial real estate 173 240 Carrying amount 556 630 The outstanding balance of PCI loans accounted for under ASC 310 30, $649,000 $754,000 June 30, 2017 December 31, 2016, There was no June 30, 2017 December 31, 2016. no three six June 30, 2017. $6,000 six June 30, 2016. no three June 30, 2016. no three six June 30, 2017 2016. Accretable yield, or income expected to be collected, is as follows for the three six June 30, 2017 2016: Three Months Ended Six Months Ended 6/30/2017 6/30/2016 6/30/2017 6/30/2016 Balance at beginning of period $ 244 $ 145 $ 252 $ 319 New loans purchased - - - - Accretion to income (14 ) (19 ) (28 ) (44 ) Disposals and other adjustments (17 ) (21 ) (17 ) (74 ) Reclassification (to) from nonaccretable difference 10 60 16 (36 ) Balance at end of period $ 223 $ 165 $ 223 $ 165 |