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 originates 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 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 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 underlying discounted collateral value (or present value of estimated future cash flows) of the impaired loan is lower than the carrying value of that loan. The general component covers loans not five Management also applies additional loss factor multiples to loans classified as watch, special mention and substandard that are not March 31, 2021 December 31, 2020. 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, 2020. 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 March 31, 2021 December 31, 2020, March 31, 2021 December 31, 2020, Loans at March 31, 2021 December 31, 2020 March 31, December 31, (In thousands) 2021 2020 Real estate mortgage loans: Residential $ 125,129 $ 131,217 Land 17,005 17,328 Residential construction 52,792 39,160 Commercial real estate 133,423 135,114 Commercial real estate construction 7,967 4,988 Commercial business loans 71,916 82,274 Consumer loans: Home equity and second mortgage loans 50,356 52,001 Automobile loans 43,326 43,770 Loans secured by savings accounts 962 1,083 Unsecured loans 2,465 2,766 Other consumer loans 15,544 16,117 Gross loans 520,885 525,818 Less undisbursed portion of loans in process (31,808 ) (19,179 ) Principal loan balance 489,077 506,639 Deferred loan origination fees and costs, net 174 317 Allowance for loan losses (6,628 ) (6,625 ) Loans, net $ 482,623 $ 500,331 At March 31, 2021 December 31, 2020, March 31, 2021 December 31, 2020, The following table provides the components of the Company’s recorded investment in loans at March 31, 2021: Home Equity Residential Commercial Commercial and Second Other Real Estate Land Construction Real Estate Business Mortgage Consumer Total (In thousands) Recorded Investment in Loans: Principal loan balance $ 125,129 $ 17,005 $ 28,951 $ 133,423 $ 71,916 $ 50,356 $ 62,297 $ 489,077 Accrued interest receivable 479 78 58 416 265 149 201 1,646 Net deferred loan origination fees and costs 119 16 (14 ) (62 ) (991 ) 1,106 - 174 Recorded investment in loans $ 125,727 $ 17,099 $ 28,995 $ 133,777 $ 71,190 $ 51,611 $ 62,498 $ 490,897 Recorded Investment in Loans as Evaluated for Impairment: Individually evaluated for impairment $ 1,879 $ 100 $ - $ 760 $ 201 $ 355 $ - $ 3,295 Collectively evaluated for impairment 123,577 16,999 28,995 132,992 70,989 51,256 62,498 487,306 Acquired with deteriorated credit quality 271 - - 25 - - - 296 Ending balance $ 125,727 $ 17,099 $ 28,995 $ 133,777 $ 71,190 $ 51,611 $ 62,498 $ 490,897 The following table provides the components of the Company’s recorded investment in loans at December 31, 2020: Home Equity Residential Commercial Commercial and Second Other Real Estate Land Construction Real Estate Business Mortgage Consumer Total (In thousands) Recorded Investment in Loans: Principal loan balance $ 131,217 $ 17,328 $ 24,969 $ 135,114 $ 82,274 $ 52,001 $ 63,736 $ 506,639 Accrued interest receivable 513 116 61 435 378 176 244 1,923 Net deferred loan origination fees and costs 120 17 (12 ) (65 ) (843 ) 1,100 - 317 Recorded investment in loans $ 131,850 $ 17,461 $ 25,018 $ 135,484 $ 81,809 $ 53,277 $ 63,980 $ 508,879 Recorded Investment in Loans as Evaluated for Impairment: Individually evaluated for impairment $ 1,728 $ 97 $ - $ 779 $ 211 $ 353 $ - $ 3,168 Collectively evaluated for impairment 129,851 17,364 25,018 134,679 81,598 52,924 63,980 505,414 Acquired with deteriorated credit quality 271 - - 26 - - - 297 Ending balance $ 131,850 $ 17,461 $ 25,018 $ 135,484 $ 81,809 $ 53,277 $ 63,980 $ 508,879 An analysis of the allowance for loan losses as of March 31, 2021 Home Equity Residential Commercial Commercial and Second Other Real Estate Land Construction Real Estate Business Mortgage Consumer Total (In thousands) Ending allowance balance attributable to loans: Individually evaluated for impairment $ - $ - $ - $ - $ - $ 9 $ - $ 9 Collectively evaluated for impairment 1,189 209 348 2,355 816 613 1,057 6,587 Acquired with deteriorated credit quality 32 - - - - - - 32 Ending balance $ 1,221 $ 209 $ 348 $ 2,355 $ 816 $ 622 $ 1,057 $ 6,628 An analysis of the allowance for loan losses as of December 31, 2020 Home Equity Residential Commercial Commercial and Second Other Real Estate Land Construction Real Estate Business Mortgage Consumer Total (In thousands) Ending allowance balance attributable to loans: Individually evaluated for impairment $ - $ - $ - $ - $ - $ - $ - $ - Collectively evaluated for impairment 1,208 209 292 2,358 843 617 1,067 6,594 Acquired with deteriorated credit quality 31 - - - - - - 31 Ending balance $ 1,239 $ 209 $ 292 $ 2,358 $ 843 $ 617 $ 1,067 $ 6,625 An analysis of the changes in the allowance for loan losses for the three March 31, 2021 Home Equity Residential Commercial Commercial and Second Other Real Estate Land Construction Real Estate Business Mortgage Consumer Total (In thousands) Allowance for loan losses: Beginning balance $ 1,239 $ 209 $ 292 $ 2,358 $ 843 $ 617 $ 1,067 $ 6,625 Provisions for loan losses (14 ) 3 56 (3 ) (27 ) 14 46 75 Charge-offs (4 ) (3 ) - - - (9 ) (114 ) (130 ) Recoveries - - - - - - 58 58 Ending balance $ 1,221 $ 209 $ 348 $ 2,355 $ 816 $ 622 $ 1,057 $ 6,628 An analysis of the changes in the allowance for loan losses for the three March 31, 2020 Home Equity Residential Commercial Commercial and Second Other Real Estate Land Construction Real Estate Business Mortgage Consumer Total (In thousands) Allowance for loan losses: Beginning balance $ 867 $ 163 $ 350 $ 1,623 $ 595 $ 515 $ 948 $ 5,061 Provisions for loan losses 62 - 3 112 25 33 116 351 Charge-offs - - - - - - (159 ) (159 ) Recoveries - - - - - 2 52 54 Ending balance $ 929 $ 163 $ 353 $ 1,735 $ 620 $ 550 $ 957 $ 5,307 At March 31, 2021 December 31, 2020, not 2020, 19. March 31, 2021, 19 Management also adjusts the historical loss factors for loans classified as watch, special mention and substandard that are not At March 31, 2021, December 31, 2020, March 31, 2021 December 31, 2020. The following table summarizes the Company’s impaired loans as of March 31, 2021 three March 31, 2021 2020. not three March 31, 2021 2020: At March 31, 2021 Three Months Ended March 31, 2021 Three Months Ended March 31, 2020 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 $ 1,879 $ 2,058 $ - $ 1,804 $ 5 $ 1,700 $ 6 Land 100 101 - 99 - 115 - Construction - - - - - - - Commercial real estate 760 768 - 770 9 400 9 Commercial business 201 201 - 206 2 248 2 Home equity and second mortgage 64 62 - 209 1 56 1 Other consumer - - - - - 45 - 3,004 3,190 - 3,088 17 2,564 18 Loans with an allowance recorded: Residential - - - - - 184 - Land - - - - - - - Construction - - - - - - - Commercial real estate - - - - - - - Commercial business - - - - - - - Home equity and second mortgage 291 294 9 146 - - - Other consumer - - - - - - - 291 294 9 146 - 184 - Total: Residential 1,879 2,058 - 1,804 5 1,884 6 Land 100 101 - 99 - 115 - Construction - - - - - - - Commercial real estate 760 768 - 770 9 400 9 Commercial business 201 201 - 206 2 248 2 Home equity and second mortgage 355 356 9 355 1 56 1 Other consumer - - - - - 45 - $ 3,295 $ 3,484 $ 9 $ 3,234 $ 17 $ 2,748 $ 18 The following table summarizes the Company’s impaired loans as of December 31, 2020: Unpaid Recorded Principal Related Investment Balance Allowance (In thousands) Loans with no related allowance recorded: Residential $ 1,728 $ 1,902 $ - Land 97 97 - Construction - - - Commercial real estate 779 784 - Commercial business 211 210 - Home equity and second mortgage 353 345 - Other consumer - - - 3,168 3,338 - Loans with an allowance recorded: Residential - - - Land - - - Construction - - - Commercial real estate - - - Commercial business - - - Home equity and second mortgage - - - Other consumer - - - - - - Total: Residential 1,728 1,902 - Land 97 97 - Construction - - - Commercial real estate 779 784 - Commercial business 211 210 - Home equity and second mortgage 353 345 - Other consumer - - - $ 3,168 $ 3,338 $ - Nonperforming loans consists of nonaccrual loans and loans over 90 March 31, 2021 December 31, 2020: March 31, 2021 December 31, 2020 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 $ 1,309 $ - $ 1,309 $ 1,154 $ - $ 1,154 Land 100 - 100 97 59 156 Construction - - - - - - Commercial real estate 147 - 147 155 - 155 Commercial business - - - - - - Home equity and second mortgage 304 - 304 - - - Other consumer - - - - - - Total $ 1,860 $ - $ 1,860 $ 1,406 $ 59 $ 1,465 The following table presents the aging of the recorded investment in loans at March 31, 2021: 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 $ 1,109 $ 20 $ 768 $ 1,897 $ 123,559 $ 271 $ 125,727 Land 237 - 45 282 16,817 - 17,099 Construction - - - - 28,995 - 28,995 Commercial real estate 147 - - 147 133,605 25 133,777 Commercial business - 13 - 13 71,177 - 71,190 Home equity and second mortgage 25 16 13 54 51,557 - 51,611 Other consumer 128 45 - 173 62,325 - 62,498 Total $ 1,646 $ 94 $ 826 $ 2,566 $ 488,035 $ 296 $ 490,897 The following table presents the aging of the recorded investment in loans at December 31, 2020: 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 $ 1,672 $ 227 $ 726 $ 2,625 $ 128,954 $ 271 $ 131,850 Land 130 65 156 351 17,110 - 17,461 Construction - - - - 25,018 - 25,018 Commercial real estate 155 - - 155 135,303 26 135,484 Commercial business - - - - 81,809 - 81,809 Home equity and second mortgage 53 302 - 355 52,922 - 53,277 Other consumer 285 101 - 386 63,594 - 63,980 Total $ 2,295 $ 695 $ 882 $ 3,872 $ 504,710 $ 297 $ 508,879 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: Home Equity Residential Commercial Commercial and Second Other Real Estate Land Construction Real Estate Business Mortgage Consumer Total (In thousands) March 31, 2021 Pass $ 123,905 $ 16,331 $ 28,920 $ 130,584 $ 70,780 $ 51,185 $ 62,358 $ 484,063 Special Mention - 62 - 2,286 285 - 24 2,657 Substandard 513 606 75 760 125 122 116 2,317 Doubtful 1,309 100 - 147 - 304 - 1,860 Loss - - - - - - - - Total $ 125,727 $ 17,099 $ 28,995 $ 133,777 $ 71,190 $ 51,611 $ 62,498 $ 490,897 December 31, 2020 Pass $ 130,054 $ 16,925 $ 25,018 $ 131,822 $ 81,452 $ 52,869 $ 63,919 $ 502,059 Special Mention - 315 - 2,289 284 - 10 2,898 Substandard 642 124 - 1,218 73 408 51 2,516 Doubtful 1,154 97 - 155 - - - 1,406 Loss - - - - - - - - Total $ 131,850 $ 17,461 $ 25,018 $ 135,484 $ 81,809 $ 53,277 $ 63,980 $ 508,879 The following table summarizes the Company’s TDRs by accrual status as of March 31, 2021 December 31, 2020: March 31, 2021 December 31, 2020 Related Related Allowance Allowance Accruing Nonaccrual Total for Loan Losses Accruing Nonaccrual Total for Loan Losses (In thousands) Troubled debt restructurings: Residential real estate $ 551 $ - $ 551 $ - $ 556 $ - $ 556 $ - Commercial real estate 610 - 610 - 621 - 621 - Commercial business 201 - 201 - 210 - 210 - Home equity and second mortgage 50 290 340 9 345 - 345 - Total $ 1,412 $ 290 $ 1,702 $ 9 $ 1,732 $ - $ 1,732 $ - At March 31, 2021 December 31, 2020, The Company restructured one one three March 31, 2020, three March 31, 2021. There were no principal charge-offs recorded as a result of TDRs and there was no three March 31, 2021 2020. There were no TDRs modified within the previous 12 90 three March 31, 2020. three March 31, 2021, second 12 may may three March 31, 2021. As discussed in Note 1, March 2020 six 19 not 19 December 31, 2019 not 2021 January 1, 2022, 60 19 March 31, 2021, one three 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 March 31, 2021 December 31, 2020: March 31, December 31, (In thousands) 2021 2020 Residential real estate $ 271 $ 271 Commercial real estate 25 26 Carrying amount 296 297 Allowance for loan losses 32 31 Carrying amount, net of allowance $ 264 $ 266 The outstanding balance of PCI loans accounted for under ASC 310 30, March 31, 2021 December 31, 2020, There was a $32,000 allowance for loan losses related to PCI loans at March 31, 2021 December 31, 2020. three March 31, 2021. three March 31, 2020. Accretable yield, or income expected to be collected, is as follows for the three March 31, 2021 2020: 2021 2020 Balance at beginning of period $ 316 $ 403 New loans purchased - - Accretion to income (8 ) (11 ) Disposals and other adjustments - - Reclassification from nonaccretable difference (5 ) (17 ) Balance at end of period $ 303 $ 375 |