Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | 7 . LOANS The loans receivable portfolio is segmented into residential mortgage, commercial and consumer loans. Loans outstanding at March 31, 2018 December 31, 2017 Summary of Loans by Type (In Thousands) March 31, Dec. 31, 2018 2017 Residential mortgage: Residential mortgage loans - first liens $ 358,786 $ 359,987 Residential mortgage loans - junior liens 25,870 25,325 Home equity lines of credit 34,595 35,758 1-4 Family residential construction 25,790 26,216 Total residential mortgage 445,041 447,286 Commercial: Commercial loans secured by real estate 161,571 159,266 Commercial and industrial 89,346 88,276 Political subdivisions 56,224 59,287 Commercial construction and land 13,232 14,527 Loans secured by farmland 7,015 7,255 Multi-family (5 or more) residential 7,621 7,713 Agricultural loans 5,803 6,178 Other commercial loans 16,079 10,986 Total commercial 356,891 353,488 Consumer 15,417 14,939 Total 817,349 815,713 Less: allowance for loan losses (9,049 ) (8,856 ) Loans, net $ 808,300 $ 806,857 The Corporation grants loans to individuals as well as commercial and tax-exempt entities. Commercial, residential and personal loans are made to customers geographically concentrated in the Pennsylvania and New York counties that comprise the market serviced by Citizens & Northern Bank. Although the Corporation has a diversified loan portfolio, a significant portion of its debtors’ ability to honor their contracts is dependent on the local economic conditions within the region. There is no 10% March 31, 2018 December 31, 2017. The Corporation maintains an allowance for loan losses that represents management’s estimate of the losses inherent in the loan portfolio as of the balance sheet date and recorded as a reduction of the investment in loans. The allowance for loan losses is maintained at a level considered adequate to provide for losses that can be reasonably anticipated. Management performs a quarterly evaluation of the adequacy of the allowance. The allowance is based on the Corporation’s past loan loss experience, known and inherent risks in the portfolio, adverse situations that may may March 31, 2018 December 31, 2017, no Transactions within the allowance for loan losses, summarized by segment and class, for the three March 31, 2018 2017 Three Months Ended March 31, 2018 Dec. 31, March 31, (In Thousands) 2017 Balance Charge-offs Recoveries Provision (Credit) 2018 Balance Allowance for Loan Losses: Residential mortgage: Residential mortgage loans - first liens $ 3,200 $ (53 ) $ 1 $ (81 ) $ 3,067 Residential mortgage loans - junior liens 224 0 1 126 351 Home equity lines of credit 296 0 0 (10 ) 286 1-4 Family residential construction 243 0 0 (4 ) 239 Total residential mortgage 3,963 (53 ) 2 31 3,943 Commercial: Commercial loans secured by real estate 2,584 (21 ) 0 72 2,635 Commercial and industrial 1,065 0 2 (31 ) 1,036 Commercial construction and land 150 0 0 (13 ) 137 Loans secured by farmland 105 0 0 (3 ) 102 Multi-family (5 or more) residential 172 0 0 (3 ) 169 Agricultural loans 57 0 0 148 205 Other commercial loans 102 0 0 47 149 Total commercial 4,235 (21 ) 2 217 4,433 Consumer 159 (41 ) 12 44 174 Unallocated 499 0 0 0 499 Total Allowance for Loan Losses $ 8,856 $ (115 ) $ 16 $ 292 $ 9,049 Three Months Ended March 31, 2017 Dec. 31, March 31, (In Thousands) 2016 Balance Charge-offs Recoveries Provision (Credit) 2017 B alance Allowance for Loan Losses: Residential mortgage: Residential mortgage loans - first liens $ 3,033 $ (63 ) $ 2 $ 153 $ 3,125 Residential mortgage loans - junior liens 258 0 1 (3 ) 256 Home equity lines of credit 350 0 0 (12 ) 338 1-4 Family residential construction 249 0 0 (9 ) 240 Total residential mortgage 3,890 (63 ) 3 129 3,959 Commercial: Commercial loans secured by real estate 2,380 (96 ) 0 401 2,685 Commercial and industrial 999 0 1 (94 ) 906 Commercial construction and land 162 0 0 7 169 Loans secured by farmland 110 0 0 1 111 Multi-family (5 or more) residential 241 0 0 (5 ) 236 Agricultural loans 40 0 0 (1 ) 39 Other commercial loans 115 0 0 (6 ) 109 Total commercial 4,047 (96 ) 1 303 4,255 Consumer 138 (41 ) 15 20 132 Unallocated 398 0 0 0 398 Total Allowance for Loan Losses $ 8,473 $ (200 ) $ 19 $ 452 $ 8,744 In the evaluation of the loan portfolio, management determines two 1 2 In determining the larger loan relationships for detailed assessment under the specific allowance component, the Corporation uses an internal risk rating system. Under the risk rating system, the Corporation classifies problem or potential problem loans as “Special Mention,” “Substandard,” or “Doubtful” on the basis of currently existing facts, conditions and values. Substandard loans include those characterized by the distinct possibility that the Corporation will sustain some loss if the deficiencies are not not not The following tables summarize the aggregate credit quality classification of outstanding loans by risk rating as of March 31, 2018 December 31, 2017: March 31, 2018 (In Thousands) Special Pass Mention Substandard Doubtful Total Residential Mortgage: Residential mortgage loans - first liens $ 349,713 $ 313 $ 8,708 $ 52 $ 358,786 Residential mortgage loans - junior liens 25,328 100 442 0 25,870 Home equity lines of credit 34,045 99 451 0 34,595 1-4 Family residential construction 25,790 0 0 0 25,790 Total residential mortgage 434,876 512 9,601 52 445,041 Commercial: Commercial loans secured by real estate 152,743 924 7,904 0 161,571 Commercial and Industrial 82,445 5,412 1,478 11 89,346 Political subdivisions 56,224 0 0 0 56,224 Commercial construction and land 13,155 0 77 0 13,232 Loans secured by farmland 5,001 626 1,376 12 7,015 Multi-family (5 or more) residential 7,047 0 574 0 7,621 Agricultural loans 4,851 268 684 0 5,803 Other commercial loans 16,007 0 72 0 16,079 Total commercial 337,473 7,230 12,165 23 356,891 Consumer 15,383 0 34 0 15,417 Totals $ 787,732 $ 7,742 $ 21,800 $ 75 $ 817,349 December 31, 2017 (In Thousands) Special Pass Mention Substandard Doubtful Total Residential Mortgage: Residential mortgage loans - first liens $ 350,609 $ 307 $ 9,019 $ 52 $ 359,987 Residential mortgage loans - junior liens 24,795 104 426 0 25,325 Home equity lines of credit 35,233 61 464 0 35,758 1-4 Family residential construction 26,216 0 0 0 26,216 Total residential mortgage 436,853 472 9,909 52 447,286 Commercial: Commercial loans secured by real estate 150,806 936 7,524 0 159,266 Commercial and Industrial 82,724 3,896 1,645 11 88,276 Political subdivisions 59,287 0 0 0 59,287 Commercial construction and land 14,449 0 78 0 14,527 Loans secured by farmland 5,283 581 1,379 12 7,255 Multi-family (5 or more) residential 7,130 0 583 0 7,713 Agricultural loans 5,203 270 705 0 6,178 Other commercial loans 10,913 0 73 0 10,986 Total commercial 335,795 5,683 11,987 23 353,488 Consumer 14,853 0 86 0 14,939 Totals $ 787,501 $ 6,155 $ 21,982 $ 75 $ 815,713 The general component of the allowance for loan losses covers pools of loans including commercial loans not not 1 2 $400,000 March 31, 2018 December 31, 2017, five three Qualitative risk factors are evaluated for the impact on each of the three The qualitative factors used in the general component calculations are designed to address credit risk characteristics associated with each segment. The Corporation’s credit risk associated with all of the segments is significantly impacted by these factors, which include economic conditions within its market area, the Corporation’s lending policies, changes or trends in the portfolio, risk profile, competition, regulatory requirements and other factors. Further, the residential mortgage segment is significantly affected by the values of residential real estate that provide collateral for the loans. The majority of the Corporation’s commercial segment loans (approximately 53% March 31, 2018) Loans are classified as impaired, when, based on current information and events, it is probable that the Corporation will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not The scope of loans reviewed individually each quarter to determine if they are impaired include all commercial loan relationships greater than $200,000 $400,000 one not not not March 31, 2018 December 31, 2017. $200,000 $400,000 $100,000 The following tables present a summary of loan balances and the related allowance for loan losses summarized by portfolio segment and class for each impairment method used as of March 31, 2018 December 31, 2017: March 31, 2018 Loans: Allowance for Loan Losses: (In Thousands) Individually Collectively Individually Collectively Evaluated Evaluated Totals Evaluated Evaluated Totals Residential mortgage: Residential mortgage loans - first liens $ 969 $ 357,817 $ 358,786 $ 0 $ 3,067 $ 3,067 Residential mortgage loans - junior liens 300 25,570 25,870 122 229 351 Home equity lines of credit 0 34,595 34,595 0 286 286 1-4 Family residential construction 0 25,790 25,790 0 239 239 Total residential mortgage 1,269 443,772 445,041 122 3,821 3,943 Commercial: Commercial loans secured by real estate 5,982 155,589 161,571 884 1,751 2,635 Commercial and industrial 498 88,848 89,346 157 879 1,036 Political subdivisions 0 56,224 56,224 0 0 0 Commercial construction and land 0 13,232 13,232 0 137 137 Loans secured by farmland 1,362 5,653 7,015 50 52 102 Multi-family (5 or more) residential 392 7,229 7,621 0 169 169 Agricultural loans 684 5,119 5,803 158 47 205 Other commercial loans 0 16,079 16,079 0 149 149 Total commercial 8,918 347,973 356,891 1,249 3,184 4,433 Consumer 19 15,398 15,417 0 174 174 Unallocated 499 Total $ 10,206 $ 807,143 $ 817,349 $ 1,371 $ 7,179 $ 9,049 December 31, 2017 Loans: Allowance for Loan Losses: (In Thousands) Individually Collectively Individually Collectively Evaluated Evaluated Totals Evaluated Evaluated Totals Residential mortgage: Residential mortgage loans - first liens $ 984 $ 359,003 $ 359,987 $ 0 $ 3,200 $ 3,200 Residential mortgage loans - junior liens 302 25,023 25,325 122 102 224 Home equity lines of credit 0 35,758 35,758 0 296 296 1-4 Family residential construction 0 26,216 26,216 0 243 243 Total residential mortgage 1,286 446,000 447,286 122 3,841 3,963 Commercial: Commercial loans secured by real estate 5,873 153,393 159,266 919 1,665 2,584 Commercial and industrial 568 87,708 88,276 188 877 1,065 Political subdivisions 0 59,287 59,287 0 0 0 Commercial construction and land 0 14,527 14,527 0 150 150 Loans secured by farmland 1,365 5,890 7,255 50 55 105 Multi-family (5 or more) residential 392 7,321 7,713 0 172 172 Agricultural loans 7 6,171 6,178 0 57 57 Other commercial loans 0 10,986 10,986 0 102 102 Total commercial 8,205 345,283 353,488 1,157 3,078 4,235 Consumer 20 14,919 14,939 0 159 159 Unallocated 499 Total $ 9,511 $ 806,202 $ 815,713 $ 1,279 $ 7,078 $ 8,856 Summary information related to impaired loans at March 31, 2018 December 31, 2017 (In Thousands) March 31, 2018 December 31, 2017 Unpaid Unpaid Principal Recorded Related Principal Recorded Related Balance Investment Allowance Balance Investment Allowance With no related allowance recorded: Residential mortgage loans - first liens $ 725 $ 696 $ 0 $ 740 $ 711 $ 0 Residential mortgage loans - junior liens 58 58 0 60 60 0 Commercial loans secured by real estate 3,375 3,375 0 3,230 3,230 0 Commercial and industrial 92 92 0 119 119 0 Loans secured by farmland 868 868 0 871 871 0 Multi-family (5 or more) residential 987 392 0 987 392 0 Agricultural loans 7 7 0 8 8 0 Consumer 19 19 0 20 20 0 Total with no related allowance recorded 6,131 5,507 0 6,035 5,411 0 With a related allowance recorded: Residential mortgage loans - first liens 273 273 0 273 273 0 Residential mortgage loans - junior liens 242 242 122 242 242 122 Commercial loans secured by real estate 2,607 2,607 884 2,641 2,641 919 Commercial and industrial 406 406 157 449 449 188 Loans secured by farmland 494 494 50 495 495 50 Agricultural loans 677 677 158 0 0 0 Total with a related allowance recorded 4,699 4,699 1,371 4,100 4,100 1,279 Total $ 10,830 $ 10,206 $ 1,371 $ 10,135 $ 9,511 $ 1,279 In the table immediately above, two one first one The average balance of impaired loans and interest income recognized on impaired loans is as follows: Interest Income Recognized on Average Investment in Impaired Loans Impaired Loans on a Cash Basis (In Thousands) 3 Months Ended 3 Months Ended March 31, March 31, 2018 2017 2018 2017 Residential mortgage: Residential mortgage loans - first lien $ 1,046 $ 748 $ 19 $ 9 Residential mortgage loans - junior lien 301 67 3 1 Total residential mortgage 1,347 815 22 10 Commercial: Commercial loans secured by real estate 5,882 6,889 35 56 Commercial and industrial 508 247 6 3 Loans secured by farmland 1,364 1,390 6 8 Multi-family (5 or more) residential 392 392 0 0 Agricultural loans 346 12 11 1 Total commercial 8,492 8,930 58 68 Consumer 19 33 0 0 Total $ 9,858 $ 9,778 $ 80 $ 78 Loans are placed on nonaccrual status for all classes of loans when, in the opinion of management, collection of interest is doubtful. Any unpaid interest previously accrued on those loans is reversed from income. Interest income is not six no The breakdown by portfolio segment and class of nonaccrual loans and loans past due ninety (In Thousands) March 31, 2018 December 31, 2017 Past Due Past Due 90+ Days and 90+ Days and Accruing Nonaccrual Accruing Nonaccrual Residential mortgage: Residential mortgage loans - first liens $ 1,840 $ 4,354 $ 2,340 $ 5,131 Residential mortgage loans - junior liens 10 242 105 242 Home equity lines of credit 230 42 203 44 Total residential mortgage 2,080 4,638 2,648 5,417 Commercial: Commercial loans secured by real estate 128 6,000 175 5,645 Commercial and industrial 347 498 603 517 Commercial construction and land 25 52 26 52 Loans secured by farmland 215 1,307 271 1,308 Multi-family (5 or more) residential 0 392 0 392 Agricultural loans 0 684 0 7 Total commercial 715 8,933 1,075 7,921 Consumer 0 16 1 66 Totals $ 2,795 $ 13,587 $ 3,724 $ 13,404 The amounts shown in the table immediately above include loans classified as troubled debt restructurings (described in more detail below), if such loans are past due ninety The table below presents a summary of the contractual aging of loans as of March 31, 2018 December 31, 2017: As of March 31, 2018 As of December 31, 2017 Current & Current & (In Thousands) Past Due Past Due Past Due Past Due Past Due Past Due Less than 30-89 90+ Less than 30-89 90+ 30 Days Days Days Total 30 Days Days Days Total Residential mortgage: Residential mortgage loans - first liens $ 351,132 $ 4,475 $ 3,179 $ 358,786 $ 347,032 $ 7,967 $ 4,988 $ 359,987 Residential mortgage loans - junior liens 25,716 144 10 25,870 25,133 87 105 25,325 Home equity lines of credit 33,960 381 254 34,595 34,789 732 237 35,758 1-4 Family residential construction 25,651 139 0 25,790 25,667 549 0 26,216 Total residential mortgage 436,459 5,139 3,443 445,041 432,621 9,335 5,330 447,286 Commercial: Commercial loans secured by real estate 157,605 581 3,385 161,571 155,917 311 3,038 159,266 Commercial and industrial 88,386 549 411 89,346 87,306 303 667 88,276 Political subdivisions 56,224 0 0 56,224 59,287 0 0 59,287 Commercial construction and land 12,839 316 77 13,232 14,400 49 78 14,527 Loans secured by farmland 5,548 494 973 7,015 6,226 12 1,017 7,255 Multi-family (5 or more) residential 7,229 0 392 7,621 7,321 0 392 7,713 Agricultural loans 5,651 145 7 5,803 6,114 57 7 6,178 Other commercial loans 16,079 0 0 16,079 10,986 0 0 10,986 Total commercial 349,561 2,085 5,245 356,891 347,557 732 5,199 353,488 Consumer 15,307 94 16 15,417 14,760 123 56 14,939 Totals $ 801,327 $ 7,318 $ 8,704 $ 817,349 $ 794,938 $ 10,190 $ 10,585 $ 815,713 Nonaccrual loans are included in the contractual aging in the immediately preceding table. A summary of the contractual aging of nonaccrual loans at March 31, 2018 December 31, 2017 Current & (In Thousands) Past Due Past Due Past Due Less than 30-89 90+ 30 Days Days Days Total March 31, 2018 Nonaccrual Totals $ 6,287 $ 1,391 $ 5,909 $ 13,587 December 31, 2017 Nonaccrual Totals $ 5,802 $ 741 $ 6,861 $ 13,404 Loans whose terms are modified are classified as Troubled Debt Restructurings (TDRs) if the Corporation grants such borrowers concessions, and it is deemed that those borrowers are experiencing financial difficulty. Loans classified as TDRs are designated as impaired. The outstanding balance of loans subject to TDRs, as well as contractual aging information at March 31, 2018 December 31, 2017 Current & (In Thousands) Past Due Past Due Past Due Less than 30-89 90+ 30 Days Days Days Nonaccrual Total March 31, 2018 Totals $ 774 $ 0 $ 0 $ 2,987 $ 3,761 December 31, 2017 Totals $ 636 $ 0 $ 0 $ 3,027 $ 3,663 At March 31, 2018 December 31, 2017, no TDRs that occurred during the three March 31, 2018 2017 (Balances in Thousands) March 31, 2018 March 31, 2017 Post- Post- Number Modification Number Modification of Recorded of Recorded Loans Investment Loans Investment Residential mortgage - first liens, Reduced monthly payments for a six-month period 1 $ 80 0 $ 0 Commercial loans secured by real estate, Extended interest only payments for a six-month period 2 36 0 0 Commercial and industrial, Extended interest only payments for a six-month period 1 46 0 0 Total 4 $ 162 0 $ 0 In the three March 31, 2018 2017, 12 (Balances in Thousands) March 31, 2018 March 31, 2017 Number Number of Recorded of Recorded Loans Investment Loans Investment Residential mortgage - first liens 0 $ 0 2 $ 293 Residential mortgage - junior liens 0 0 1 28 Consumer 0 0 1 26 Total 0 $ 0 4 $ 347 The carrying amount of foreclosed residential real estate properties held as a result of obtaining physical possession (included in Foreclosed assets held for sale in the unaudited consolidated balance sheets) is as follows: (In Thousands) March 31, Dec. 31, 2018 2017 Foreclosed residential real estate $ 396 $ 721 The recorded investment of consumer mortgage loans secured by residential real properties for which formal foreclosure proceedings were in process is as follows: (In Thousands) March 31, Dec. 31, 2018 2017 Residential real estate in process of foreclosure $ 1,470 $ 1,789 |