Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | Note 3: A summary of the major categories of loans outstanding is shown in the following tables. At December 31, 2016 Commercial Commercial Construction Residential Consumer Total (In thousands) Originated loans $ 342,792 $ 473,558 $ 2,409 $ 85,439 $ 331,361 $ 1,235,559 Purchased covered loans - - - 2,086 8,941 11,027 Purchased non-covered loans : Gross purchased non-covered loans 12,452 71,250 146 222 26,113 110,183 Purchased loan discount (547 ) (2,637 ) - (23 ) (851 ) (4,058 ) Total $ 354,697 $ 542,171 $ 2,555 $ 87,724 $ 365,564 $ 1,352,711 At December 31, 2015 Commercial Commercial Construction Residential Consumer Total (In thousands) Originated loans $ 368,117 $ 517,070 $ 2,978 $ 117,631 $ 346,043 $ 1,351,839 Purchased covered loans : Gross purchased covered loans - - - 2,385 11,828 14,213 Purchased loan discount - - - (133 ) (19 ) (152 ) Purchased non-covered loans : Gross purchased non-covered loans 15,620 124,650 973 231 32,454 173,928 Purchased loan discount (989 ) (4,264 ) - (23 ) (1,156 ) (6,432 ) Total $ 382,748 $ 637,456 $ 3,951 $ 120,091 $ 389,150 $ 1,533,396 Changes in the carrying amount of impaired purchased loans were as follows: For the Years Ended December 31, 2016 2015 Impaired purchased loans (In thousands) Carrying amount at the beginning of the period $ 3,887 $ 4,672 Reductions during the period (3,022 ) (785 ) Carrying amount at the end of the period $ 865 $ 3,887 Changes in the accretable yield for purchased loans were as follows: For the Years Ended December 31, 2016 2015 Accretable yield: (In thousands) Balance at the beginning of the period $ 1,259 $ 2,261 Reclassification from nonaccretable difference 3,912 3,051 Accretion (3,934 ) (4,053 ) Balance at the end of the period $ 1,237 $ 1,259 Accretion $ (3,934 ) $ (4,053 ) Change in FDIC indemnification 1,053 698 (Increase) in interest income $ (2,881 ) $ (3,355 ) The following summarizes activity in the allowance for loan losses: Allowance for Loan Losses Commercial Commercial Construction Residential Consumer Purchased Purchased Unallocated Total (In thousands) Allowance for loan losses: Balance at beginning of period $ 9,559 $ 4,224 $ 177 $ 1,801 $ 7,080 $ 967 $ - $ 5,963 $ 29,771 Additions: (Reversal) provision (2,065 ) (954 ) (34 ) (493 ) 2,344 (923 ) 53 (1,128 ) (3,200 ) Deductions: Chargeoffs (2,023 ) - - - (4,404 ) (345 ) - - (6,772 ) Recoveries 2,836 60 - - 1,512 1,747 - - 6,155 Net loan recoveries (losses) 813 60 - - (2,892 ) 1,402 - - (617 ) Total allowance for loan losses $ 8,307 $ 3,330 $ 143 $ 1,308 $ 6,532 $ 1,446 $ 53 $ 4,835 $ 25,954 Allowance for Loan Losses Commercial Commercial Construction Residential Consumer Purchased Purchased Unallocated Total (In thousands) Allowance for loan losses: Balance at beginning of period $ 5,460 $ 4,245 $ 644 $ 2,241 $ 7,717 $ 2,120 $ - $ 9,058 $ 31,485 Additions: Provision (reversal) 3,702 356 (512 ) (440 ) 950 (961 ) - (3,095 ) - Deductions: Chargeoffs (756 ) (449 ) - - (3,493 ) (431 ) - - (5,129 ) Recoveries 1,153 72 45 - 1,906 239 - - 3,415 Net loan recoveries (losses) 397 (377 ) 45 - (1,587 ) (192 ) - - (1,714 ) Total allowance for loan losses $ 9,559 $ 4,224 $ 177 $ 1,801 $ 7,080 $ 967 $ - $ 5,963 $ 29,771 Allowance for Credit Losses Commercial Commercial Construction Residential Consumer Purchased Purchased Unallocated Total (In thousands) Allowance for loan losses: Balance at beginning of period $ 4,005 $ 12,070 $ 602 $ 405 $ 3,198 $ - $ 1,561 $ 9,852 $ 31,693 Additions: Provision (reversal) 1,095 (7,276 ) 39 1,866 6,864 1,006 - (794 ) 2,800 Deductions: Chargeoffs (1,890 ) (762 ) - (30 ) (4,214 ) (522 ) - - (7,418 ) Recoveries 2,250 213 3 - 1,869 75 - - 4,410 Net loan recoveries (losses) 360 (549 ) 3 (30 ) (2,345 ) (447 ) - - (3,008 ) Indemnification expiration - - - - - 1,561 (1,561 ) - - Balance at end of period 5,460 4,245 644 2,241 7,717 2,120 - 9,058 31,485 Liability for off-balance sheet credit exposure 2,408 - 344 - 437 - - (496 ) 2,693 Total allowance for credit losses $ 7,868 $ 4,245 $ 988 $ 2,241 $ 8,154 $ 2,120 $ - $ 8,562 $ 34,178 FDIC indemnification expired February 6, 2014 The allowance for loan losses and recorded investment in loans were evaluated for impairment as follows: Allowance for Loan Losses and Recorded Investment in Loans Evaluated for Impairment Commercial Commercial Construction Residential Consumer Purchased Non- Purchased Unallocated Total (In thousands) Allowance for loan losses: Individually evaluated for impairment $ 5,048 $ - $ - $ - $ - $ - $ - $ - $ 5,048 Collectively evaluated for impairment 3,259 3,330 143 1,308 6,532 1,446 53 4,835 20,906 Purchased loans with evidence of credit deterioration - - - - - - - - - Total $ 8,307 $ 3,330 $ 143 $ 1,308 $ 6,532 $ 1,446 $ 53 $ 4,835 $ 25,954 Carrying value of loans: Individually evaluated for impairment $ 11,140 $ 5,264 $ - $ - $ - $ 7,694 $ 617 $ - $ 24,715 Collectively evaluated for impairment 331,652 468,294 2,409 85,439 331,361 97,751 10,225 - 1,327,131 Purchased loans with evidence of credit deterioration - - - - - 680 185 - 865 Total $ 342,792 $ 473,558 $ 2,409 $ 85,439 $ 331,361 $ 106,125 $ 11,027 $ - $ 1,352,711 Allowance for Loan Losses and Recorded Investment in Loans Evaluated for Impairment Commercial Commercial Construction Residential Consumer Purchased Non- Purchased Unallocated Total (In thousands) Allowance for loan losses: Individually evaluated for impairment $ 4,942 $ 585 $ - $ - $ - $ - $ - $ - $ 5,527 Collectively evaluated for impairment 4,617 3,639 177 1,801 7,080 967 - 5,963 24,244 Purchased loans with evidence of credit deterioration - - - - - - - - - Total $ 9,559 $ 4,224 $ 177 $ 1,801 $ 7,080 $ 967 $ - $ 5,963 $ 29,771 Carrying value of loans: Individually evaluated for impairment $ 12,587 $ 5,541 $ - $ - $ - $ 11,777 $ - $ - $ 29,905 Collectively evaluated for impairment 355,530 511,529 2,978 117,631 346,043 152,038 13,855 - 1,499,604 Purchased loans with evidence of credit deterioration - - - - - 3,681 206 - 3,887 Total $ 368,117 $ 517,070 $ 2,978 $ 117,631 $ 346,043 $ 167,496 $ 14,061 $ - $ 1,533,396 The Bank’s customers are small businesses, professionals and consumers. Given the scale of these borrowers, corporate credit rating agencies do not evaluate the borrowers’ financial condition. The Bank maintains a Loan Review Department which reports directly to the Board of Directors. The Loan Review Department performs independent evaluations of loans and assigns credit risk grades to evaluated loans using grading standards employed by bank regulatory agencies. Loans judged to carry lower-risk attributes are assigned a “pass” grade, with a minimal likelihood of loss. Loans judged to carry higher-risk attributes are referred to as “classified loans,” and are further disaggregated, with increasing expectations for loss recognition, as “substandard,” “doubtful,” and “loss.” Loan Review Department evaluations occur every calendar quarter. If the Bank becomes aware of deterioration in a borrower’s performance or financial condition between Loan Review Department examinations, assigned risk grades are re-evaluated promptly. Credit risk grades assigned by the Loan Review Department are subject to review by the Bank’s regulatory authorities during regulatory examinations. The following summarizes the credit risk profile by internally assigned grade: Credit Risk Profile by Internally Assigned Grade Commercial Commercial Construction Residential Consumer Purchased Non- Purchased (1) Total (In thousands) Grade: Pass $ 329,964 $ 459,771 $ 2,409 $ 82,715 $ 329,961 $ 95,373 $ 9,419 $ 1,309,612 Substandard 12,828 13,787 - 2,724 1,056 13,368 1,608 45,371 Doubtful - - - - 6 1,300 - 1,306 Loss - - - - 338 142 - 480 Purchased loan discount - - - - - (4,058 ) - (4,058 ) Total $ 342,792 $ 473,558 $ 2,409 $ 85,439 $ 331,361 $ 106,125 $ 11,027 $ 1,352,711 (1) Credit risk profile reflects internally assigned grade of purchased covered loans without regard to FDIC indemnification. Credit Risk Profile by Internally Assigned Grade Commercial Commercial Construction Residential Consumer Purchased Non- Purchased (1) Total (In thousands) Grade: Pass $ 353,474 $ 496,744 $ 2,978 $ 114,525 $ 344,876 $ 149,100 $ 12,563 $ 1,474,260 Substandard 14,643 20,326 - 3,106 781 24,810 1,650 65,316 Doubtful - - - - 12 18 - 30 Loss - - - - 374 - - 374 Purchased loan discount - - - - - (6,432 ) (152 ) (6,584 ) Total $ 368,117 $ 517,070 $ 2,978 $ 117,631 $ 346,043 $ 167,496 $ 14,061 $ 1,533,396 (1) The following tables summarize loans by delinquency and nonaccrual status: Summary of Loans by Delinquency and Nonaccrual Status Current and 30-59 Days 60-89 Days Past Due 90 Nonaccrual Total Loans (In thousands) Commercial $ 341,632 $ 926 $ 40 $ - $ 194 $ 342,792 Commercial real estate 467,529 407 445 - 5,177 473,558 Construction 2,183 226 - - - 2,409 Residential real estate 84,430 528 37 - 444 85,439 Consumer installment and other 327,029 3,028 949 355 - 331,361 Total originated loans 1,222,803 5,115 1,471 355 5,815 1,235,559 Purchased non-covered loans 102,878 1,353 40 142 1,712 106,125 Purchased covered loans 10,169 - - - 858 11,027 Total $ 1,335,850 $ 6,468 $ 1,511 $ 497 $ 8,385 $ 1,352,711 Summary of Loans by Delinquency and Nonaccrual Status Current and 30-59 Days 60-89 Days Past Due 90 Nonaccrual Total Loans (In thousands) Commercial $ 365,450 $ 1,777 $ 122 $ - $ 768 $ 368,117 Commercial real estate 504,970 5,930 726 - 5,444 517,070 Construction 2,978 - - - - 2,978 Residential real estate 115,575 1,202 414 - 440 117,631 Consumer installment and other 341,566 3,263 919 295 - 346,043 Total originated loans 1,330,539 12,172 2,181 295 6,652 1,351,839 Purchased non-covered loans 158,554 589 7 - 8,346 167,496 Purchased covered loans 13,929 132 - - - 14,061 Total $ 1,503,022 $ 12,893 $ 2,188 $ 295 $ 14,998 $ 1,533,396 The following is a summary of the effect of nonaccrual loans on interest income: For the Years Ended December 31, 2016 2015 2014 (In thousands) Interest income that would have been recognized had the loans performed in accordance with their original terms $ 874 $ 1,277 $ 1,146 Interest income recognized on nonaccrual loans (1,097 ) (362 ) (60 ) Total (addition) reduction of interest income $ (223 ) $ 915 $ 1,086 There were no December 31, 2016 December 31, 2015. The following summarizes impaired loans: Impaired Loans Recorded Unpaid Related (In thousands) Impaired loans with no related allowance recorded: Commercial $ 1,234 $ 1,303 $ - Commercial real estate 13,233 15,610 - Construction - - - Residential real estate 1,279 1,309 - Consumer installment and other 569 675 - Impaired loans with an allowance recorded: Commercial 10,163 10,172 5,048 Commercial real estate - - - Construction - - - Residential real estate - - - Consumer installment and other - - - Total: Commercial $ 11,397 $ 11,475 $ 5,048 Commercial real estate 13,233 15,610 - Construction - - - Residential real estate 1,279 1,309 - Consumer installment and other 569 675 - Impaired Loans Recorded Unpaid Related (In thousands) Impaired loans with no related allowance recorded: Commercial $ 2,917 $ 2,979 $ - Commercial real estate 16,309 21,168 - Construction 271 271 - Residential real estate 666 697 - Consumer installment and other 350 456 - Impaired loans with an allowance recorded: Commercial 10,170 10,170 4,942 Commercial real estate 4,660 5,109 585 Construction - - - Residential real estate - - - Consumer installment and other - - - Total: Commercial $ 13,087 $ 13,149 $ 4,942 Commercial real estate 20,969 26,277 585 Construction 271 271 - Residential real estate 666 697 - Consumer installment and other 350 456 - Impaired loans include troubled debt restructured loans. Impaired loans at December 31, 2016, $12,381 $5,302 December 31, 2015, $15,712 $7,464 Impaired Loans 2016 2015 2014 Average Recognized Average Recognized Average Recognized (In thousands) Commercial $ 12,923 $ 512 $ 12,631 $ 584 $ 5,240 $ 325 Commercial real estate 16,701 725 20,307 674 19,880 469 Construction 102 - 263 - 2,015 - Residential real estate 746 19 643 31 153 - Consumer installment and other 473 25 739 25 1,399 29 Total $ 30,945 $ 1,281 $ 34,583 $ 1,314 $ 28,687 $ 823 The following table provides information on troubled debt restructurings: Troubled Debt Restructurings Number of Pre-Modification Period-End Period-End ($ in thousands) Commercial 7 $ 2,719 $ 1,489 $ 113 Commercial real estate 10 11,257 10,673 - Residential real estate 1 241 219 - Total 18 $ 14,217 $ 12,381 $ 113 Troubled Debt Restructurings Number of Pre-Modification Period-End Period-End ($ in thousands) Commercial 6 $ 3,138 $ 2,802 $ 194 Commercial real estate 10 12,927 12,684 - Residential real estate 1 242 226 - Total 17 $ 16,307 $ 15,712 $ 194 Troubled Debt Restructurings Number of Pre-Modification Period-End Period-End (In thousands) Commercial 3 $ 2,075 $ 1,901 $ - Commercial real estate 4 2,890 2,928 - Consumer installment and other 1 18 8 - Total 8 $ 4,983 $ 4,837 $ - During the year ended December 31, 2016, four $4,731 four 2016 three one During the year ended December 31, 2015, ten $11,026 2015 four six During the year ended December 31, 2014, five $713 five 2014 During the years ended December 31, 2016, 2015 2014, 12 ninety There were no December 31, 2016 December 31, 2015. There were no December 31, 2016 December 31, 2015. At December 31, 2016 December 31, 2015, $3,095 $1,816 $9,264 $1,986 0 0 December 31, 2016 December 31, 2015. |