Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | (6) Loans and Allowance for Loan Losses As of December 31, (Dollars in thousands) 2015 2014 One-to-four family residential real estate loans $ 131,930 $ 127,555 Construction and land loans 15,043 21,950 Commercial real estate loans 118,983 118,411 Commercial loans 61,300 59,971 Agriculture loans 71,030 64,316 Municipal loans 7,635 8,982 Consumer loans 19,895 20,044 Total gross loans 425,816 421,229 Net deferred loan costs and loans in process 29 281 Allowance for loan losses (5,922) (5,320) Loans, net $ 419,923 $ 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. (Dollars in thousands) Year ended December 31, 2015 One-to-four Construction Commercial Commercial Agriculture Municipal Consumer Total Allowance for loan losses: Balance at January 1, 2015 $ 755 $ 762 $ 1,832 $ 836 $ 915 $ 51 $ 169 $ 5,320 Charge-offs (57) - (13) (78) - (88) (318) (554) Recoveries 10 1,722 2 15 73 - 34 1,856 Provision for loan losses 217 (2,407) (81) 757 440 60 314 (700) Balance at December 31, 2015 925 77 1,740 1,530 1,428 23 199 5,922 Allowance for loan losses: Individually evaluated for loss 78 - - - - - 10 88 Collectively evaluated for loss 847 77 1,740 1,530 1,428 23 189 5,834 Total 925 77 1,740 1,530 1,428 23 199 5,922 Loan balances: Individually evaluated for loss 752 2,220 2,429 620 189 591 36 6,837 Collectively evaluated for loss 131,178 12,823 116,554 60,680 70,841 7,044 19,859 418,979 Total $ 131,930 $ 15,043 $ 118,983 $ 61,300 $ 71,030 $ 7,635 $ 19,895 $ 425,816 (Dollars in thousands) Year ended December 31, 2014 One-to-four Construction Commercial Commercial Agriculture Municipal Consumer Total Allowance for loan losses: Balance at January 1, 2014 $ 732 $ 1,343 $ 1,970 $ 769 $ 545 $ 47 $ 134 $ 5,540 Charge-offs (29) - - (783) - - (237) (1,049) Recoveries 12 166 4 2 - - 45 229 Provision for loan losses 40 (747) (142) 848 370 4 227 600 Balance at December 31, 2014 755 762 1,832 836 915 51 169 5,320 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 Year ended December 31, 2013 One-to-four Construction Commercial Commercial Agriculture Municipal Consumer Total Allowance for loan losses: Balance at January 1, 2013 $ 714 $ 1,214 $ 1,313 $ 707 $ 367 $ 107 $ 159 $ 4,581 Charge-offs (93) (53) (11) (200) - (65) (194) (616) Recoveries 202 523 - 20 - - 30 775 Provision for loan losses (91) (341) 668 242 178 5 139 800 Balance at December 31, 2013 732 1,343 1,970 769 545 47 134 5,540 Allowance for loan losses: Individually evaluated for loss 82 234 140 488 - - 7 951 Collectively evaluated for loss 650 1,109 1,830 281 545 47 127 4,589 Total 732 1,343 1,970 769 545 47 134 5,540 Loan balances: Individually evaluated for loss 782 8,160 2,936 4,148 - 706 24 16,756 Collectively evaluated for loss 124,305 15,616 116,454 57,235 62,287 8,140 18,576 402,613 Total $ 125,087 $ 23,776 $ 119,390 $ 61,383 $ 62,287 $ 8,846 $ 18,600 $ 419,369 The Company’s impaired loans decreased from $ 10.7 6.8 (Dollars in thousands) As of December 31, 2015 Unpaid Impaired Impaired Impaired Related Year-to- Year-to- One-to-four family residential real estate loans $ 752 $ 752 $ 408 $ 344 $ 78 $ 1,041 $ - Construction and land loans 3,955 2,220 2,220 - - 2,389 88 Commercial real estate loans 2,429 2,429 2,429 - - 2,484 175 Commercial loans 637 620 620 - - 634 3 Agriculture loans 189 189 189 - - 188 3 Municipal loans 591 591 591 - - 631 19 Consumer loans 36 36 10 26 10 41 - Total impaired loans $ 8,589 $ 6,837 $ 6,467 $ 370 $ 88 $ 7,408 $ 288 As of December 31, 2014 Unpaid Impaired Impaired Impaired Related Year-to- Year-to- One-to-four family residential real estate loans $ 1,589 $ 1,589 $ 167 $ 1,422 $ 287 $ 1,611 $ - Construction and land loans 6,540 4,805 4,805 - - 6,366 235 Commercial real estate loans 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 As of December 31, 2013 Unpaid Impaired Impaired Impaired Related Year-to- Year-to- One-to-four family residential real estate loans $ 782 $ 782 $ 326 $ 456 $ 82 $ 800 $ - Construction and land loans 9,895 8,160 6,098 2,062 234 8,383 279 Commercial real estate loans 2,936 2,936 278 2,658 140 3,046 18 Commercial loans 4,148 4,148 154 3,994 488 192 - Agriculture loans Municipal loans 772 706 706 - - 772 20 Consumer loans 24 24 6 18 7 26 - Total impaired loans $ 18,557 $ 16,756 $ 7,568 $ 9,188 $ 951 $ 13,219 $ 317 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 December 31, 2015 or December 31, 2014. (Dollars in thousands) As of December 31, 2015 30-59 days 60-89 days 90 days or Total past Non-accrual Total past Total loans One-to-four family residential real estate loans $ 70 $ 712 $ - $ 782 $ 749 $ 1,531 $ 130,399 Construction and land loans 4 - - 4 614 618 14,425 Commercial real estate loans 240 - - 240 47 287 118,696 Commercial loans 90 40 - 130 583 713 60,587 Agriculture loans 174 5 - 179 139 318 70,712 Municipal loans - - - - - - 7,635 Consumer loans 65 2 - 67 36 103 19,792 Total $ 643 $ 759 $ - $ 1,402 $ 2,168 $ 3,570 $ 422,246 Percent of gross loans 0.15 % 0.18 % 0.00 % 0.33 % 0.51 % 0.84 % 99.16 % As of December 31, 2014 30-59 days 60-89 days 90 days or Total past Non- Total past Total loans One-to-four family residential real estate loans $ 127 $ 50 $ - $ 177 $ 1,585 $ 1,762 $ 125,793 Construction and land loans 163 - - 163 1,322 1,485 20,465 Commercial real estate loans - - - - 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 years 2015, 2014 and 2013, would have increased interest income by $ 99,000 525,000 511,000 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 December 31, 2015 As of December 31, 2014 (Dollars in thousands) Nonclassified Classified Nonclassified Classified One-to-four family residential real estate loans $ 130,575 $ 1,355 $ 123,823 $ 3,732 Construction and land loans 14,429 614 18,815 3,135 Commercial real estate loans 111,016 7,967 111,428 6,983 Commercial loans 58,862 2,438 57,122 2,849 Agriculture loans 68,186 2,844 63,101 1,215 Municipal loans 7,635 - 8,894 88 Consumer loans 19,839 56 19,977 67 Total $ 410,542 $ 15,274 $ 403,160 $ 18,069 At December 31, 2015, the Company had ten loan relationships consisting of fourteen outstanding loans totaling $5.3 million that were classified as TDRs compared to ten relationships consisting of fifteen outstanding loans totaling $5.4 million that were classified as TDRs at December 31, 2014. During 2015, the Company classified a $ 2.0 4.4 50,000 1.6 78,000 During 2014, the Company classified a $ 128,000 146,000 59,000 78,000 During 2013, the Company classified a $ 278,000 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 December 31, 2015, 2014 and 2013. At December 31, 2015, there was a commitment of $ 84,000 (Dollars in thousands) As of December 31, 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 loans 2 $ 55 $ 3 1 $ - $ 4 Construction and land loans 4 600 1,606 7 613 3,483 Commercial real estate loans 3 - 2,382 2 - 392 Commerical loans 1 - 37 2 - 137 Agriculture 2 - 50 1 146 - Municipal loans 2 - 591 2 - 641 Total troubled debt restructurings 14 $ 655 $ 4,669 15 $ 759 $ 4,657 and unfunded commitments and unfunded commitments (Dollars in thousands) Balance at December 31, 2014 $ 10,310 New loans 1,580 Repayments (390) Balance at December 31, 2015 $ 11,500 |