Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | Note 3: Loans and Allowance for Loan Losses The Company’s loan and allowance for loan losses policies are as follows: Loans Receivable Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoffs are reported at their outstanding principal balances adjusted for unearned income, charge-offs, the allowance for loan losses and any unamortized deferred fees or costs on originated loans. For loans amortized at cost, interest income is accrued based on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, as well as premiums and discounts, are deferred and amortized as a level yield adjustment over the respective term of the loan. The accrual of interest on mortgage and commercial loans is discontinued at the time the loan is 90 All interest accrued but not Allowance for Loan Losses The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to income. Loan losses are charged against the allowance when management believes the uncollectability of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. The allowance for loan losses is evaluated on a regular basis by management and is based upon management’s periodic review of the collectability of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may The allowance consists of allocated and general components. The allocated component relates to loans that are classified as impaired. For those loans that are classified as impaired, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan. The general component covers nonclassified loans and is based on historical charge-off experience and expected loss given default derived from the Bank’s internal risk rating process. Other adjustments may not Classes of loans at September 30, 2018 December 31, 2017 September 30, December 31, 2018 2017 (Unaudited) (In thousands) Real estate loans Residential $ 35,793 $ 41,474 Commercial 49,445 45,623 Construction and land 9,371 10,746 Commercial business 898 909 Consumer and other 440 557 Total loans 95,947 99,309 Less: Net deferred loan fees, premiums and discounts (354 ) (176 ) Undisbursed loans in process (467 ) (498 ) Allowance for loan losses (1,076 ) (1,123 ) Net loans $ 94,050 $ 97,512 Residential Real Estate: 1 4 $4.9 $4.8 September 30, 2018 December 31, 2017, first second first Commercial Real Estate: may Construction and Land: may may Commercial Business: Consumer: The following tables present by portfolio segment, the activity in the allowance for loan losses for the three nine September 30, 2018 2017 September 30, 2018 December 31, 2017: For the Three Months Ended September 30, 2018 Real Estate Construction Commercial Residential Commercial and Land Business Consumer Total (In thousands) Allowance for loan losses: Balance, July 1, 2018 $ 440 $ 545 $ 69 $ 21 $ 1 $ 1,076 Provision (credit) for loan losses - - - - - - Charge-offs - - - - - - Recoveries - - - - - - Balance, September 30, 2018 $ 440 $ 545 $ 69 $ 21 $ 1 $ 1,076 For the Nine Months ended September 30, 2018 Allowance for loan losses: (In thousands) Balance, January 1, 2018 $ 540 $ 484 $ 76 $ 15 $ 8 $ 1,123 Provision (credit) for loan losses (100 ) 61 (7 ) 3 (7 ) (50 ) Charge-offs - - - - - - Recoveries - - - 3 - 3 Balance, September 30, 2018 $ 440 $ 545 $ 69 $ 21 $ 1 $ 1,076 For the Three Months Ended September 30, 2017 Allowance for loan losses: (In thousands) Balance, July 1, 2017 $ 545 $ 442 $ 76 $ 15 $ 8 $ 1,086 Provision (credit) for loan losses - 39 - - - 39 Charge-offs - - - - - - Recoveries - 2 - - - 2 Balance, September 30, 2017 $ 545 $ 483 $ 76 $ 15 $ 8 $ 1,127 For the Nine Months Ended September 30, 2017 Allowance for loan losses: (In thousands) Balance, January 1, 2017 $ 656 $ 326 $ 72 $ 4 $ 5 $ 1,063 Provision (credit) for loan losses (99 ) 151 4 11 3 70 Charge-offs (12 ) (9 ) - - - (21 ) Recoveries - 15 - - - 15 Balance, September 30, 2017 $ 545 $ 483 $ 76 $ 15 $ 8 $ 1,127 At September 30, 2018 Real Estate Construction Commercial Residential Commercial and Land Business Consumer Total (In thousands) Allowance for loan losses: Ending balance, individually evaluated for impairment $ - $ - $ - $ - $ - $ - Ending balance, collectively evaluated for impairment $ 440 $ 545 $ 69 $ 21 $ 1 $ 1,076 Loans: Ending balance $ 35,793 $ 49,445 $ 9,371 $ 898 $ 440 $ 95,947 Ending balance; individually evaluated for impairment $ 1,600 $ 37 $ 2,490 $ - $ - $ 4,127 Ending balance; collectively evaluated for impairment $ 34,193 $ 49,408 $ 6,881 $ 898 $ 440 $ 91,820 December 31, 2017 Real Estate Construction Commercial Residential Commercial and Land Business Consumer Total (In thousands) Allowance for loan losses: Ending balance, individually evaluated for impairment $ - $ - $ - $ - $ - $ - Ending balance, collectively evaluated for impairment $ 545 $ 480 $ 76 $ 15 $ 7 $ 1,123 Loans: Ending balance $ 41,474 $ 45,623 $ 10,746 $ 909 $ 557 $ 99,309 Ending balance; individually evaluated for impairment $ 2,294 $ 33 $ 2,312 $ - $ - $ 4,639 Ending balance; collectively evaluated for impairment $ 39,180 $ 45,590 $ 8,434 $ 909 $ 557 $ 94,670 Internal Risk Categories The Bank has adopted a standard loan grading system for all loans. Loans are selected for a grading review based on certain characteristics, including concentrations of credit and upon delinquency of 90 Pass : not Special Mention /Watch not may Substandard not may not may 90 Doubtful no not Loss not may The following tables present the credit risk profile of the Company’s loan portfolio based on internal rating category and payment activity as of September 30, 2018 December 31, 2017: September 30, 2018 Real Estate Construction Commercial Residential Commercial and Land Business Consumer Total (In thousands) Pass $ 34,149 $ 47,935 $ 8,250 $ 898 $ 440 $ 91,672 Special mention/Watch 291 984 - - - 1,275 Substandard 1,353 526 1,121 - - 3,000 Doubtful - - - - - - Total $ 35,793 $ 49,445 $ 9,371 $ 898 $ 440 $ 95,947 December 31, 2017 Real Estate Construction Commercial Residential Commercial and Land Business Consumer Total (In thousands) Pass $ 39,639 $ 45,136 $ 9,839 $ 876 $ 557 $ 96,047 Special mention/Watch 48 - - - - 48 Substandard 1,787 487 907 33 - 3,214 Doubtful - - - - - - Total $ 41,474 $ 45,623 $ 10,746 $ 909 $ 557 $ 99,309 The Company evaluates the loan risk grading system definitions and allowance for loan losses methodology on an ongoing basis. No The following tables present the Company’s loan portfolio aging analysis of the recorded investment in loans as of September 30, 2018 December 31, 2017: September 30, 2018 (Unaudited) Total Loans > 30-59 Days 60-89 Days Greater Than Total Total Loans 90 Days & Past Due Past Due 90 Days Past Due Current Receivable Accruing (In thousands) Real estate Residential $ 363 $ - $ - $ 363 $ 35,430 $ 35,793 $ - Commercial - - - - 49,445 49,445 - Construction and land - - - - 9,371 9,371 - Commercial business - - - - 898 898 - Consumer - - - - 440 440 - Total $ 363 $ - $ - $ 363 $ 95,584 $ 95,947 $ - December 31, 2017 Total Loans > 30-59 Days 60-89 Days Greater Than Total Total Loans 90 Days & Past Due Past Due 90 Days Past Due Current Receivable Accruing (In thousands) Real estate Residential $ 73 $ 196 $ - $ 269 $ 41,205 $ 41,474 $ - Commercial - - - - 45,623 45,623 - Construction and land - - - - 10,746 10,746 - Commercial business - - - - 909 909 - Consumer - - - - 557 557 Total $ 73 $ 196 $ - $ 269 $ 99,040 $ 99,309 $ - A loan is considered impaired, in accordance with the impairment accounting guidance (ASC 310 10 35 16 The following table presents impaired loans as of September 30, 2018 three nine September 30, 2018 2017: As of For the Three Months Ended September 30, 2018 September 30, 2018 September 30, 2017 Unpaid Average Balance of Interest Average Balance of Interest Recorded Balance Principal Balance Specific Allowance Impaired Income Recognized Impaired Income Recognized (Unaudited) (In thousands) Loans without a specific valuation allowance: Real estate Residential $ 1,600 $ 1,677 $ - $ 1,791 $ 7 $ 1,122 $ 16 Commercial 37 37 - 38 1 34 1 Construction and land 2,490 2,542 - 2,454 22 1,630 23 Commercial business - - - - - - - Consumer - - - - - - - Loans with a specific valuation allowance: Real estate Residential - - - - - - - Commercial - - - - - - - Construction and land - - - - - - - Commercial business - - - - - - - Consumer - - - - - - - Totals $ 4,127 $ 4,256 $ - $ 4,283 $ 30 $ 2,786 $ 40 For the Nine Months Ended September 30, 2018 September 30, 2017 Average Balance of Impaired Interest Income Recognized Average Balance of Impaired Interest Income Recognized (In thousands) Loans without a specific valuation allowance: Real estate Residential $ 1,988 $ 24 $ 2,134 $ 53 Commercial 37 2 149 1 Construction and land 2,427 63 1,672 70 Commercial business - - - - Consumer - - - - Loans with a specific valuation allowance: Real estate Residential - - - - Commercial - - - - Construction and land - - - - Commercial business - - - - Consumer - - - - Totals $ 4,452 $ 89 $ 3,955 $ 124 The following table presents impaired loans as of December 31, 2017: As of and for the year ended December 31, 2017 Unpaid Average Balance of Interest Recorded Balance Principal Balance Specific Allowance Impaired Income Recognized (In thousands) Loans without a specific valuation allowance: Real estate Residential $ 2,294 $ 2,439 $ - $ 2,166 $ 73 Commercial 33 33 - 35 2 Construction and land 2,312 2,323 - 1,799 90 Commercial business - - - - - Consumer - - - - - Loans with a specific valuation allowance: Real estate Residential - - - - - Commercial - - - - - Construction and land - - - - - Commercial business - - - - - Consumer - - - - - Totals $ 4,639 $ 4,795 $ - $ 4,000 $ 165 The following table presents the Company’s nonaccrual loans at September 30, 2018 December 31, 2017. September 30, December 31, 2018 2017 (In thousands) Real estate loans Residential $ 1,119 $ 1,629 Commercial - - Construction and land 950 728 Commercial business - - Consumer and other - - Total nonaccrual $ 2,069 $ 2,357 At September 30, 2018 ( December 31, 2017, one During the three nine September 30, 2018 2017, no The Company had no twelve September 30, 2018 2017 30 In order to determine whether a borrower is experiencing financial difficulty, an evaluation is performed of the probability that the borrower will be in payment default on any of its debt in the foreseeable future without the modification. This evaluation is performed under the Bank’s internal underwriting policy. The Company had no September 30, 2018 December 31, 2017. |