Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | NOTE 3. LOANS RECEIVABLE Loans receivable consisted of the following: September 30, December 31, 2016 2015 (In Thousands) First mortgage loans: Residential mortgage (1-4 family) $ 113,287 $ 118,133 Commercial real estate 205,819 167,930 Real estate construction 20,649 22,958 Other loans: Home equity 47,694 45,345 Consumer 14,867 14,641 Commercial 60,102 39,072 Total 462,418 408,079 Allowance for loan losses (4,650 ) (3,550 ) Deferred loan fees, net (919 ) (795 ) Total loans, net $ 456,849 $ 403,734 Within the commercial real estate loan category above, $11,723,000 and $12,117,000 was guaranteed by the United States Department of Agriculture Rural Development, at September 30, 2016 and December 31, 2015, respectively. In addition, within the commercial loan category above, $1,631,000 and $1,917,000 were in loans originated through a syndication program where the business resides outside of Montana, at September 30, 2016, and December 31, 2015, respectively. The following table includes information regarding nonperforming assets. September 30, December 31, 2016 2015 (Dollars in Thousands) Non-accrual loans $ 1,421 $ 2,030 Accruing loans delinquent 90 days or more 301 472 Restructured loans, net 44 46 Total nonperforming loans 1,766 2,548 Real estate owned and other repossessed assets, net 513 595 Total nonperforming assets $ 2,279 $ 3,143 Total non-performing assets as a percentage of total assets 0.34 % 0.50 % Allowance for loan losses $ 4,650 $ 3,550 Percent of allowance for loan losses to non-performing loans 263.31 % 139.32 % Percent of allowance for loan losses to non-performing assets 204.04 % 112.95 % Allowance for loan losses activity was as follows: Residential Mortgage Commercial Real Estate Home (1-4 Family) Real Estate Construction Equity Consumer Commercial Total (In Thousands) Allowance for loan losses: Beginning balance, July 1, 2016 $ 981 $ 2,007 $ 244 $ 365 $ 174 $ 489 $ 4,260 Charge-offs (4 ) - - - (79 ) - (83 ) Recoveries - - - - 1 - 1 Provision - 170 - 28 74 200 472 Ending balance, September 30, 2016 $ 977 $ 2,177 $ 244 $ 393 $ 170 $ 689 $ 4,650 Allowance for loan losses: Beginning balance, January 1, 2016 $ 911 $ 1,593 $ 184 $ 342 $ 66 $ 454 $ 3,550 Charge-offs (4 ) - - (7 ) (179 ) (104 ) (294 ) Recoveries - - - - 13 - 13 Provision 70 584 60 58 270 339 1,381 Ending balance, September 30, 2016 $ 977 $ 2,177 $ 244 $ 393 $ 170 $ 689 $ 4,650 Ending balance, September 30, 2016 allocated to loans individually evaluated for impairment $ - $ - $ - $ - $ 14 $ 15 $ 29 Ending balance, September 30, 2016 allocated to loans collectively evaluated for impairment $ 977 $ 2,177 $ 244 $ 393 $ 156 $ 674 $ 4,621 Loans receivable: Ending balance, September 30, 2016 $ 113,287 $ 205,819 $ 20,649 $ 47,694 $ 14,867 $ 60,102 $ 462,418 Ending balance, September 30, 2016 of loans individually evaluated for impairment $ 423 $ 374 $ - $ 339 $ 68 $ 261 $ 1,465 Ending balance, September 30, 2016 of loans collectively evaluated for impairment $ 112,864 $ 205,445 $ 20,649 $ 47,355 $ 14,799 $ 59,841 $ 460,953 Residential Mortgage Commercial Real Estate Home (1-4 Family) Real Estate Construction Equity Consumer Commercial Total (In Thousands) Allowance for loan losses: Beginning balance, July 1, 2015 $ 685 $ 1,425 $ 45 $ 326 $ 52 $ 417 $ 2,950 Charge-offs - - - - (14 ) (25 ) (39 ) Recoveries - - - - 8 1 9 Provision 67 168 34 10 16 15 310 Ending balance, September 30, 2015 $ 752 $ 1,593 $ 79 $ 336 $ 62 $ 408 $ 3,230 Allowance for loan losses: Beginning balance, January 1, 2015 $ 684 $ 1,098 $ 35 $ 270 $ 46 $ 317 $ 2,450 Charge-offs (137 ) - - - (29 ) (25 ) (191 ) Recoveries - - - - 10 1 11 Provision 205 495 44 66 35 115 960 Ending balance, September 30, 2015 $ 752 $ 1,593 $ 79 $ 336 $ 62 $ 408 $ 3,230 Ending balance, September 30, 2015 allocated to loans individually evaluated for impairment $ - $ - $ - $ - $ 15 $ - $ 15 Ending balance, September 30, 2015 allocated to loans collectively evaluated for impairment $ 752 $ 1,593 $ 79 $ 336 $ 47 $ 408 $ 3,215 Loans receivable: Ending balance, September 30, 2015 $ 117,320 $ 156,293 $ 23,210 $ 46,632 $ 14,885 $ 33,884 $ 392,224 Ending balance, September 30, 2015 of loans individually evaluated for impairment $ 1,207 $ 668 $ 731 $ 282 $ 61 $ 616 $ 3,565 Ending balance, September 30, 2015 of loans collectively evaluated for impairment $ 116,113 $ 155,625 $ 22,479 $ 46,350 $ 14,824 $ 33,268 $ 388,659 The Company utilizes a 5 point internal loan rating system, largely based on regulatory classifications, as follows: Loans rated Pass Loans rated Special Mention Loans rated Substandard Loans rated Doubtful Loans rated Loss On an annual basis, or more often if needed, the Company formally reviews the ratings of all commercial real estate, construction, and commercial business loans that have a principal balance of $750,000 or more. Quarterly, the Company reviews the rating of any consumer loan, broadly defined, that is delinquent 90 days or more. Likewise, quarterly, the Company reviews the rating of any commercial loan, broadly defined, that is delinquent 60 days or more. Annually, the Company engages an independent third-party to review a significant portion of loans within these segments. Management uses the results of these reviews as part of its annual review process. Internal classification of the loan portfolio was as follows: September 30, 2016 Residential Mortgage Commercial Real Estate Home (1-4 Family) Real Estate Construction Equity Consumer Commercial Total (In Thousands) Grade: Pass $ 112,285 $ 204,964 $ 20,193 $ 47,356 $ 14,785 $ 59,681 $ 459,264 Special mention - 30 456 - - 146 632 Substandard 1,002 825 - 338 68 260 2,493 Doubtful - - - - - - - Loss - - - - 14 15 29 Total $ 113,287 $ 205,819 $ 20,649 $ 47,694 $ 14,867 $ 60,102 $ 462,418 Credit risk profile based on payment activity Performing $ 112,567 $ 205,441 $ 20,649 $ 47,355 $ 14,799 $ 59,841 $ 460,652 Restructured loans - - - 44 - - 44 Nonperforming 720 378 - 295 68 261 1,722 Total $ 113,287 $ 205,819 $ 20,649 $ 47,694 $ 14,867 $ 60,102 $ 462,418 December 31, 2015 Residential Mortgage Commercial Home (1-4 Family) Real Estate Construction Equity Consumer Commercial Total (In Thousands) Grade: Pass $ 116,711 $ 167,263 $ 22,176 $ 45,100 $ 14,486 $ 38,675 $ 404,411 Special mention - - - - - - - Substandard 1,422 667 782 156 140 367 3,534 Doubtful - - - 82 4 - 86 Loss - - - 7 11 30 48 Total $ 118,133 $ 167,930 $ 22,958 $ 45,345 $ 14,641 $ 39,072 $ 408,079 Credit risk profile based on payment activity Performing $ 117,182 $ 167,259 $ 22,711 $ 45,138 $ 14,496 $ 38,745 $ 405,531 Restructured loans - - - 46 - - 46 Nonperforming 951 671 247 161 145 327 2,502 Total $ 118,133 $ 167,930 $ 22,958 $ 45,345 $ 14,641 $ 39,072 $ 408,079 The following tables include information regarding delinquencies within the loan portfolio. September 30, 2016 Recorded 90 Days Investment 30-89 Days and Total Total >90 Days and Past Due Greater Past Due Current Loans Still Accruing (In Thousands) Residential mortgage (1-4 family) $ 1,282 $ 720 $ 2,002 $ 111,285 $ 113,287 $ 297 Commercial real estate 224 378 602 205,217 205,819 4 Real estate construction 727 - 727 19,922 20,649 - Home equity 432 295 727 46,967 47,694 - Consumer 128 68 196 14,671 14,867 - Commercial 246 261 507 59,595 60,102 - Total $ 3,039 $ 1,722 $ 4,761 $ 457,657 $ 462,418 $ 301 December 31, 2015 Recorded 90 Days Investment 30-89 Days and Total Total >90 Days and Past Due Greater Past Due Current Loans Still Accruing (In Thousands) Residential mortgage (1-4 family) $ 1,163 $ 951 $ 2,114 $ 116,019 $ 118,133 $ 221 Commercial real estate 177 671 848 167,082 167,930 4 Real estate construction 662 247 909 22,049 22,958 247 Home equity 319 161 480 44,865 45,345 - Consumer 184 145 329 14,312 14,641 - Commercial 173 327 500 38,572 39,072 - Total $ 2,678 $ 2,502 $ 5,180 $ 402,899 $ 408,079 $ 472 The following tables include information regarding impaired loans. September 30, 2016 Unpaid Recorded Principal Related Investment Balance Allowance (In Thousands) With no related allowance: Residential mortgage (1-4 family) $ 423 $ 423 $ - Commercial real estate 374 374 - Construction - - - Home equity 339 386 - Consumer 54 101 - Commercial 246 246 - With a related allowance: Residential mortgage (1-4 family) - - - Commercial real estate - - - Construction - - - Home equity - - - Consumer 14 14 14 Commercial 15 15 15 Total: Residential mortgage (1-4 family) 423 423 - Commercial real estate 374 374 - Construction - - - Home equity 339 386 - Consumer 68 115 14 Commercial 261 261 15 Total $ 1,465 $ 1,559 $ 29 December 31, 2015 Unpaid Recorded Principal Related Investment Balance Allowance (In Thousands) With no related allowance: Residential mortgage (1-4 family) $ 730 $ 730 $ - Commercial real estate 667 667 - Construction - - - Home equity 200 234 - Consumer 134 134 - Commercial 297 297 - With a related allowance: Residential mortgage (1-4 family) - - - Commercial real estate - - - Construction - - - Home equity 7 7 7 Consumer 11 11 11 Commercial 30 30 30 Total: Residential mortgage (1-4 family) 730 730 - Commercial real estate 667 667 - Construction - - - Home equity 207 241 7 Consumer 145 145 11 Commercial 327 327 30 Total $ 2,076 $ 2,110 $ 48 Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Average Recorded Investment (In Thousands) Residential mortgage (1-4 family) $ 711 $ 919 $ 576 $ 1,340 Commercial real estate 374 334 521 333 Construction - 653 - 365 Home equity 336 272 273 305 Consumer 93 52 107 58 Commercial 261 602 294 423 Total $ 1,775 $ 2,832 $ 1,771 $ 2,824 Interest income recognized on impaired loans for the three and nine months ended September 30, 2016 and 2015 is considered insignificant. |