Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | 3. Loans and Allowance for Loan Losses June 30, December 31, (Dollars in thousands) 2015 2014 One-to-four family residential real estate $ 131,149 $ 127,555 Construction and land 17,251 21,950 Commercial real estate 118,645 118,411 Commercial loans 64,873 59,971 Agriculture loans 67,746 64,316 Municipal loans 7,927 8,982 Consumer loans 19,347 20,044 Total gross loans 426,938 421,229 Net deferred loan costs and loans in process 130 281 Allowance for loan losses (6,018) (5,320) Loans, net $ 421,050 $ 416,190 In the first quarter of 2015, the Company adjusted the historical loss analysis within the evaluation of the allowance for loan losses. The Company previously used a twelve quarter historical loss rate calculated by loan class. The updated historical loss analysis uses a migration analysis to track historical losses by loan class and risk categories over a longer period of time. In the opinion of management, the adjusted historical loss analysis more accurately allocates estimated losses. The adjustments resulted in reclassifications of the allocated allowance among various loan classes compared to December 31, 2014. The adjustments to the historical loss analysis did not have a significant impact on the total allowance for loan losses balance as of December 31, 2014. Three and six months ended June 30, 2015 (Dollars in thousands) One-to-four family residential Construction Commercial Commercial Agriculture Municipal Consumer real estate and land real estate loans loans loans loans Total Allowance for loan losses: Balance at April 1, 2015 $ 1,386 $ 103 $ 1,600 $ 1,515 $ 1,104 $ 25 $ 172 $ 5,905 Charge-offs (9) - - (10) - - (88) (107) Recoveries 3 4 2 2 - - 8 19 Provision for loan losses (55) (9) (63) 249 (2) (4) 84 200 Balance at June 30, 2015 1,325 99 1,539 1,756 1,102 21 176 6,018 Balance at January 1, 2015 $ 755 $ 762 $ 1,832 $ 836 $ 915 $ 51 $ 169 $ 5,320 Charge-offs (9) - - (10) - (88) (142) (249) Recoveries 5 1,719 2 3 - - 18 1,747 Provision for loan losses 574 (2,382) (295) 927 187 58 131 (800) Balance at June 30, 2015 1,325 99 1,539 1,756 1,102 21 176 6,018 Three and six months ended June 30, 2014 (Dollars in thousands) One-to-four family residential Construction Commercial Commercial Agriculture Municipal Consumer real estate and land real estate loans loans loans loans Total Allowance for loan losses: Balance at April 1, 2014 $ 747 $ 936 $ 1,806 $ 1,515 $ 435 $ 53 $ 148 $ 5,640 Charge-offs - - - (765) - - (47) (812) Recoveries 3 4 5 - - - 9 21 Provision for loan losses (154) (128) 65 284 162 5 66 300 Balance at June 30, 2014 596 812 1,806 1,515 597 58 176 5,560 Balance at January 1, 2014 $ 732 $ 1,343 $ 1,970 $ 769 $ 545 $ 47 $ 134 $ 5,540 Charge-offs (20) - - (771) - - (89) (880) Recoveries 6 7 5 1 - 20 39 Provision for loan losses (122) (538) (99) 1,035 52 11 111 450 Balance at June 30, 2014 596 812 1,806 1,515 597 58 176 5,560 As of June 30, 2015 (Dollars in thousands) One-to-four family residential Construction Commercial Commercial Agriculture Municipal Consumer real estate and land real estate loans loans loans loans Total Allowance for loan losses: Individually evaluated for loss 282 - - 246 - - 11 539 Collectively evaluated for loss 1,043 99 1,539 1,510 1,102 21 165 5,479 Total 1,325 99 1,539 1,756 1,102 21 176 6,018 Loan balances: Individually evaluated for loss 1,701 4,613 2,414 1,105 324 630 48 10,835 Collectively evaluated for loss 129,448 12,638 116,231 63,768 67,422 7,297 19,299 416,103 Total $ 131,149 $ 17,251 $ 118,645 $ 64,873 $ 67,746 $ 7,927 $ 19,347 $ 426,938 As of December 31, 2014 (Dollars in thousands) One-to-four family residential Construction Commercial Commercial Agriculture Municipal Consumer real estate and land real estate loans loans loans loans Total Allowance for loan losses: Individually evaluated for loss 287 - 17 28 5 - 12 349 Collectively evaluated for loss 468 762 1,815 808 910 51 157 4,971 Total 755 762 1,832 836 915 51 169 5,320 Loan balances: Individually evaluated for loss 1,589 4,805 2,880 371 285 706 67 10,703 Collectively evaluated for loss 125,966 17,145 115,531 59,600 64,031 8,276 19,977 410,526 Total $ 127,555 $ 21,950 $ 118,411 $ 59,971 $ 64,316 $ 8,982 $ 20,044 $ 421,229 The Company recorded net loan recoveries of $ 1.5 841 1.7 4.3 2.4 The Company’s impaired loans increased from $ 10.7 10.8 (Dollars in thousands) As of June 30, 2015 Impaired Impaired Year-to- Unpaid loans loans with Related Year-to- date interest contractual Impaired without an an allowance date average income principal loan balance allowance allowance recorded loan balance recognized One-to-four family residential real estate $ 1,701 $ 1,701 $ 440 $ 1,261 $ 282 $ 1,907 $ - Construction and land 6,348 4,613 4,613 - - 4,730 85 Commercial real estate 2,414 2,414 2,414 - - 2,552 11 Commercial loans 1,105 1,105 127 978 246 1,181 2 Agriculture loans 324 324 324 - - 348 2 Municipal loans 630 630 630 - - 635 10 Consumer loans 48 48 12 36 11 51 - Total impaired loans $ 12,570 $ 10,835 $ 8,560 $ 2,275 $ 539 $ 11,404 $ 110 (Dollars in thousands) As of December 31, 2014 Impaired Impaired Year-to- Unpaid loans loans with Related Year-to- date interest contractual Impaired without an an allowance date average income principal loan balance allowance allowance recorded loan balance recognized One-to-four family residential real estate $ 1,589 $ 1,589 $ 167 $ 1,422 $ 287 $ 1,611 $ - Construction and land 6,540 4,805 4,805 - - 6,366 235 Commercial real estate 2,880 2,880 2,833 47 17 3,009 24 Commercial loans 371 371 137 234 28 393 10 Agriculture loans 285 285 146 139 5 294 - Municipal loans 772 706 706 - - 772 19 Consumer loans 67 67 25 42 12 75 - Total impaired loans $ 12,504 $ 10,703 $ 8,819 $ 1,884 $ 349 $ 12,520 $ 288 The Company’s key credit quality indicator is a loan’s performance status, defined as accruing or non-accruing. Performing loans are considered to have a lower risk of loss. Non-accrual loans are those which the Company believes have a higher risk of loss. The accrual of interest on non-performing loans is discontinued at the time the loan is ninety days delinquent, unless the credit is well secured and in process of collection. Loans are placed on non-accrual or are charged off at an earlier date if collection of principal or interest is considered doubtful. There were no loans ninety days delinquent and accruing interest at June 30, 2015 or December 31, 2014. (Dollars in thousands) As of June 30, 2015 30-59 days 60-89 days 90 days or delinquent delinquent more Total past Total past and and delinquent due loans Non-accrual due and non- Total loans accruing accruing and accruing accruing loans accrual loans not past due One-to-four family residential real estate $ 191 $ 387 $ - $ 578 $ 1,697 $ 2,275 $ 128,874 Construction and land 12 - - 12 1,288 1,300 15,951 Commercial real estate - 854 - 854 2,038 2,892 115,753 Commercial loans 104 13 - 117 1,054 1,171 63,702 Agriculture loans 35 - - 35 273 308 67,438 Municipal loans - - - - - - 7,927 Consumer loans 56 36 - 92 48 140 19,207 Total $ 398 $ 1,290 $ - $ 1,688 $ 6,398 $ 8,086 $ 418,852 Percent of gross loans 0.09 % 0.30 % 0.00 % 0.40 % 1.50 % 1.89 % 98.11 % (Dollars in thousands) As of December 31, 2014 30-59 days 60-89 days 90 days or delinquent delinquent more Total past Total past and and delinquent due loans Non-accrual due and non- Total loans accruing accruing and accruing accruing loans accrual loans not past due One-to-four family residential real estate $ 127 $ 50 $ - $ 177 $ 1,585 $ 1,762 $ 125,793 Construction and land 163 - - 163 1,322 1,485 20,465 Commercial real estate - - - - 2,488 2,488 115,923 Commercial loans 34 - - 34 234 268 59,703 Agriculture loans 510 1 - 511 285 796 63,520 Municipal loans - - - - 65 65 8,917 Consumer loans 128 65 - 193 67 260 19,784 Total $ 962 $ 116 $ - $ 1,078 $ 6,046 $ 7,124 $ 414,105 Percent of gross loans 0.23 % 0.03 % 0.00 % 0.26 % 1.44 % 1.69 % 98.31 % Under the original terms of the Company’s non-accrual loans, interest earned on such loans for the six months ended June 30, 2015 and 2014, would have increased interest income by $ 237,000 280,000 The Company also categorizes loans into risk categories based on relevant information about the ability of the borrowers to service their debt such as current financial information, historical payment experience, credit documentation, public information and current economic trends, among other factors. The Company analyzes loans individually by classifying the loans as to credit risk. This analysis is performed on a quarterly basis. Non-classified loans generally include those loans that are expected to be repaid in accordance with contractual loan terms. Classified loans are those that are assigned a special mention, substandard or doubtful risk rating using the following definitions: Special Mention: Loans are currently protected by the current net worth and paying capacity of the obligor or of the collateral pledged but potentially weak. These loans constitute an undue and unwarranted credit risk, but not to the point of justifying a classification of substandard. The credit risk may be relatively minor, yet constitutes an unwarranted risk in light of the circumstances surrounding a specific asset. Substandard: Loans are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged. Loans have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. Loans are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. Doubtful: Loans classified doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. As of June 30, 2015 As of December 31, 2014 (Dollars in thousands) Nonclassified Classified Nonclassified Classified One-to-four family residential real estate $ 126,252 $ 4,897 $ 123,823 $ 3,732 Construction and land 14,397 2,854 18,815 3,135 Commercial real estate 107,408 11,237 111,428 6,983 Commercial loans 60,468 4,405 57,122 2,849 Agriculture loans 64,462 3,284 63,101 1,215 Municipal loans 7,927 - 8,894 88 Consumer loans 19,299 48 19,977 67 Total 400,213 26,725 403,160 18,069 At June 30, 2015, the Company had eleven loan relationships consisting of twenty one outstanding loans that were classified as TDRs. During the second quarter of 2015, the Company classified a commercial loan relationship consisting of $ 2.7 44,000 78,000 The Company evaluates each TDR individually and returns the loan to accrual status when a payment history is established after the restructuring and future payments are reasonably assured. There were no loans modified as TDRs for which there was a payment default within 12 months of modification as of June 30, 2015 and 2014. At June 30, 2015, there was a commitment of $ 84,000 As of June 30, 2015 As of December 31, 2014 Number of Non-accrual Accruing Number of Non-accrual Accruing loans balance balance loans balance balance One-to-four family residential real estate 1 $ - $ 4 1 $ - $ 4 Construction and land 8 1,272 3,325 7 613 3,483 Commercial real estate 6 1,991 376 2 - 392 Commercial loans 1 - 51 2 - 137 Agriculture 3 84 51 1 146 - Municipal loans 2 - 630 2 - 641 Total troubled debt restructurings 21 $ 3,347 $ 4,437 15 $ 759 $ 4,657 |