LOANS | NOTE 6 - LOANS March 31, December 31, 2016 2015 (unaudited) (In Thousands) Real estate loans: One-to four- family residential $ 114,614 $ 104,861 Commercial 22,276 21,848 Multi-family 15,691 16,559 Home equity loans and lines of credit 2,045 2,093 Construction 18,867 18,755 Commercial and industrial loans 3,845 3,964 Consumer loans: Consumer lines of credit 19 20 Other consumer loans 2,794 3,060 180,151 171,160 Net deferred loan origination fees, costs and discounts 244 153 Allowance for loan losses (922) (886) Net loans $ 179,473 $ 170,427 Real Estate: Consumer One- to four-family Home Equity Loans Commercial and Consumer Residential Commercial Multi-family and Lines of Credit Construction Industrial Loans Line of Credit Other Consumer Unallocated Total (In Thousands) Three months ended March 31, 2016 (unaudited): Allowance for loan losses: Beginning balance $ 373 $ 146 $ 62 $ 14 $ 216 $ 13 $ 1 $ 29 $ 32 $ 886 Charge-offs - - - - - - - - - - Recoveries - - - - - - - - - - Provision (benefit) 81 (7) (3) (2) (8) (1) - (4) (20) 36 Ending balance $ 454 $ 139 $ 59 $ 12 $ 208 $ 12 $ 1 $ 25 $ 12 $ 922 Three months ended March 31, 2015 (unaudited): Allowance for loan losses: Beginning balance $ 362 $ 134 $ 36 $ 27 $ 121 $ 8 $ 1 $ 20 $ 34 $ 743 Charge-offs - - - - - - - - - - Recoveries - - - - - - - - - - (Benefit) provision (22) (16) 6 (3) 65 3 - 2 (13) 22 Ending balance $ 340 $ 118 $ 42 $ 24 $ 186 $ 11 $ 1 $ 22 $ 21 $ 765 At March 31, 2016 (unaudited): Allowance for loan losses: Ending balance: Individually evaluated for impairment $ 21 $ - $ - $ - $ - $ - $ - $ - $ - $ 21 Ending balance: Collectively evaluated for impairment 433 139 59 12 208 12 1 25 12 901 Total allowance for loan losses ending balance $ 454 $ 139 $ 59 $ 12 $ 208 $ 12 $ 1 $ 25 $ 12 $ 922 Loans: Ending balance: Individually evaluated for impairment $ 4,242 $ 674 $ - $ 59 $ - $ - $ - $ - $ - $ 4,975 Ending balance: Collectively evaluated for impairment 110,372 21,602 15,691 1,986 18,867 3,845 19 2,794 - 175,176 Total loans ending balance $ 114,614 $ 22,276 $ 15,691 $ 2,045 $ 18,867 $ 3,845 $ 19 $ 2,794 $ - $ 180,151 Real Estate: Consumer One- to four-family Home Equity Loans Commercial and Consumer Residential Commercial Multi-family and Lines of Credit Construction Industrial Loans Lines of Credit Other Consumer Unallocated Total (In Thousands) December 31, 2015: Allowance for loan losses: Beginning balance $ 362 $ 134 $ 36 $ 27 $ 121 $ 8 $ 1 $ 20 $ 34 $ 743 Charge-offs - - - - - - - (1) - (1) Recoveries - - - - - - - - - - Provision (benefit) 11 12 26 (13) 95 5 - 10 (2) 144 Ending balance $ 373 $ 146 $ 62 $ 14 $ 216 $ 13 $ 1 $ 29 $ 32 $ 886 Ending balance: Individually evaluated for impairment $ 21 $ - $ - $ - $ - $ - $ - $ - $ - $ 21 Ending balance: Collectively evaluated for impairment 352 146 62 14 216 13 1 29 32 865 Total allowance for loan losses ending balance $ 373 $ 146 $ 62 $ 14 $ 216 $ 13 $ 1 $ 29 $ 32 $ 886 Loans: Ending balance: Individually evaluated for impairment $ 5,665 $ 679 $ - $ 59 $ - $ - $ - $ - $ - $ 6,403 Ending balance: Collectively evaluated for impairment 99,196 21,169 16,559 2,034 18,755 3,964 20 3,060 - 164,757 Total loans ending balance $ 104,861 $ 21,848 $ 16,559 $ 2,093 $ 18,755 $ 3,964 $ 20 $ 3,060 $ - $ 171,160 The following tables set forth information regarding nonaccrual loans and past-due loans at March 31, 2016 (unaudited) and December 31, 2015: 90 Days 90 Days or More or More Total Total Past Due Nonaccrual 30-59 Days 60-89 Days Past Due Past Due Current Total and Accruing Loans (In Thousands) March 31, 2016 (unaudited): Real estate loans: One- to four-family residential $ 1,104 $ - $ - $ 1,104 $ 113,510 $ 114,614 $ - $ 16 Commercial - - - - 22,276 22,276 - - Multi-family - - - - 15,691 15,691 - - Home equity loans and lines of credit - 59 - 59 1,986 2,045 - - Construction - - - - 18,867 18,867 - - Commercial and industrial loans - - - - 3,845 3,845 - - Consumer loans: Consumer lines of credit - - - - 19 19 - - Other consumer - - - - 2,794 2,794 - - Total $ 1,104 $ 59 $ - $ 1,163 $ 178,988 $ 180,151 $ - $ 16 December 31, 2015: Real estate loans: One- to four-family residential $ 1,088 $ 18 $ 1,393 $ 2,499 $ 102,362 $ 104,861 $ - $ 1,410 Commercial - - - - 21,848 21,848 - - Multi-family - - - - 16,559 16,559 - - Home equity loans and lines of credit - 59 - 59 2,034 2,093 - - Construction - - - - 18,755 18,755 - - Commercial and industrial loans - - - - 3,964 3,964 - - Consumer loans: Consumer lines of credit - - - - 20 20 - - Other consumer 16 - - 16 3,044 3,060 - - Total $ 1,104 $ 77 $ 1,393 $ 2,574 $ 168,586 $ 171,160 $ - $ 1,410 Unpaid Average Interest Recorded Principal Related Recorded Income Investment Balance Allowance Investment Recognized (In Thousands) March 31, 2016 (unaudited): With no related allowance recorded: Real estate loans: One- to four-family residential $ 3,675 $ 3,675 $ - $ 3,688 $ 44 Commercial 674 674 - 676 7 Home equity loans and lines of credit 59 141 - 59 1 Total impaired with no related allowance $ 4,408 $ 4,490 $ - $ 4,423 $ 52 With an allowance recorded: Real estate loans: One- to four-family residential $ 567 $ 567 $ 21 $ 567 $ 5 Commercial - - - - - Home equity loans and lines of credit - - - - - Total impaired with an allowance recorded $ 567 $ 567 $ 21 $ 567 $ 5 Total Real estate loans: One- to four-family residential $ 4,242 $ 4,242 $ 21 $ 4,255 $ 49 Commercial 674 674 - 676 7 Home equity loans and lines of credit 59 141 - 59 1 Total impaired loans $ 4,975 $ 5,057 $ 21 $ 4,990 $ 57 December 31, 2015: With no related allowance recorded: Real estate loans: One- to four-family residential $ 5,098 $ 5,098 $ - $ 5,657 $ 183 Commercial 679 679 - 689 44 Home equity loans and lines of credit 59 141 - 54 4 Total impaired with no related allowance $ 5,836 $ 5,918 $ - $ 6,400 $ 231 With an allowance recorded: Real estate loans: One- to four-family residential $ 567 $ 567 $ 21 $ 571 $ 19 Commercial - - - - - Home equity loans and lines of credit - - - - - Total impaired with an allowance recorded $ 567 $ 567 $ 21 $ 571 $ 19 Total Real estate loans: One- to four-family residential $ 5,665 $ 5,665 $ 21 $ 6,228 $ 202 Commercial 679 679 - 689 44 Home equity loans and lines of credit 59 141 - 54 4 Total impaired loans $ 6,403 $ 6,485 $ 21 $ 6,971 $ 250 Real Estate: Consumer One- to four-family Home Equity Loans Commercial and Consumer Residential Commercial Multi-family and Lines of Credit Construction Industrial Loans Lines of Credit Other Consumer Total (In Thousands) March 31, 2016 (unaudited): Grade: Pass $ - $ 21,602 $ 15,691 $ - $ 18,867 $ 3,845 $ - $ - $ 60,005 Special mention 2,354 674 - 53 - - - - 3,081 Substandard 567 - - 6 - - - - 573 Loans not formally rated 111,693 - - 1,986 - - 19 2,794 116,492 Total $ 114,614 $ 22,276 $ 15,691 $ 2,045 $ 18,867 $ 3,845 $ 19 $ 2,794 $ 180,151 December 31, 2015: Grade: Pass $ - $ 21,169 $ 16,559 $ - $ 18,755 $ 3,964 $ - $ - $ 60,447 Special mention 539 - - 53 - - - - 592 Substandard 3,796 679 - 6 - - - - 4,481 Loans not formally rated 100,526 - - 2,034 - - 20 3,060 105,640 Total $ 104,861 $ 21,848 $ 16,559 $ 2,093 $ 18,755 $ 3,964 $ 20 $ 3,060 $ 171,160 Credit Quality Information The Company utilizes a seven grade internal loan rating system for commercial real estate, construction and commercial loans as follows: Loans rated 1 - 3: Loans in these categories are considered “pass” rated loans with low to average risk. Loans rated 4: Loans in this category are considered “special mention.” These loans are starting to show signs of potential weakness and are being closely monitored by management. Loans rated 5: Loans in this category are considered “substandard.” Generally, a loan is considered substandard if it is inadequately protected by the current net worth and paying capacity of the obligors and/or the collateral pledged. There is a distinct possibility that the Company will sustain some loss if the weakness is not corrected. Loans rated 6: Loans in this category are considered “doubtful.” Loans classified as doubtful have all the weaknesses inherent in those classified substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, highly questionable and improbable. Loans rated 7: Loans in this category are considered uncollectible (“loss”) and of such little value that their continuance as loans is not warranted. On an annual basis, or more often if needed, the Company formally reviews the ratings on all commercial real estate, construction and commercial loans. For residential real estate and consumer loans, the Company initially assesses credit quality based upon the borrower’s ability to pay and subsequently monitors these loans based on the borrower’s payment activity. The Company classifies loans modified as troubled debt restructurings (TDRs) as impaired loans with an allowance established as part of the allocated component of the allowance for loan losses when the discounted cash flows or value of the underlying collateral of the impaired loan is lower than its carrying value. During the three months ended March 31, 2016 (unaudited), there were no loans modified as TDRs. As of March 31, 2016 (unaudited), there were no commitments to lend additional funds to borrowers whose loans were modified as troubled debt restructurings. Loans serviced for others are not included in the accompanying consolidated balance sheets. The unpaid principal balances of mortgage and other loans serviced for others were $ 23.8 21.8 |