Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | NOTE 7 - LOANS AND RELATED ALLOWANCE FOR LOAN AND LEASE LOSSES Major classifications of loans are summarized as follows (in thousands): September 30, December 31, 2017 2016 Commercial and industrial $ 99,314 $ 60,630 Real estate - construction 40,760 23,709 Real estate - mortgage: Residential 316,191 270,830 Commercial 403,135 249,490 Consumer installment 19,141 4,481 878,541 609,140 Less: Allowance for loan and lease losses 6,852 6,598 Net loans $ 871,689 $ 602,542 The amounts above include deferred loan origination costs of $ 2.0 $1.7 September 30, 2017 December 31, 2016, The Company ’s primary business activity is with customers located within its local Northeastern Ohio trade area, eastern Geauga County, and contiguous counties to the north, east, and south. The Company also serves the central Ohio market with offices in Dublin, Sunbury and Westerville, Ohio. The Northeastern Ohio trade area includes the newly acquired Liberty locations in Beachwood, Twinsburg, and Solon, Ohio. Commercial, residential, consumer, and agricultural loans are granted. Although the Company has a diversified loan portfolio, loans outstanding to individuals and businesses are dependent upon the local economic conditions in the Company’s immediate trade area. Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff generally are reported at their outstanding unpaid principal balances net of the allowance for loan and lease losses. Interest income is recognized as income when earned on the accrual method. The accrual of interest is discontinued on a loan when management believes, after considering economic and business conditions, the borrower’s financial condition is such that collection of interest is doubtful. Interest received on nonaccrual loans is recorded as income or applied against principal according to management’s judgment as to the collectability of such principal. Loan origination fees and certain direct loan origination costs are being deferred and the net amount amortized as an adjustment of the related loan ’s yield. Management is amortizing these amounts over the contractual life of the related loans. The following tables summarize the primary segments of the loan portfolio and allowance for loan and lease losses (in thousands): Real Estate- Mortgage September 30, 2017 Commercial and industrial Real estate- construction Residential Commercial Consumer installment Total Loans: Individually evaluated for impairment $ 3,038 $ 185 $ 2,844 $ 5,788 $ 4 $ 11,859 Collectively evaluated for impairment 96,276 40,575 313,347 397,347 19,137 866,682 Total loans $ 99,314 $ 40,760 $ 316,191 $ 403,135 $ 19,141 $ 878,541 Real estate- Mortgage December 31, 2016 Commercial and industrial Real estate- construction Residential Commercial Consumer installment Total Loans: Individually evaluated for impairment $ 1,190 $ 913 $ 3,135 $ 7,187 $ 5 $ 12,430 Collectively evaluated for impairment 59,440 22,796 267,695 242,303 4,476 596,710 Total loans $ 60,630 $ 23,709 $ 270,830 $ 249,490 $ 4,481 $ 609,140 Real Estate- Mortgage September 30, 2017 Commercial and industrial Real estate- construction Residential Commercial Consumer installment Total Allowance for loan and lease losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ 436 $ - $ 132 $ 692 $ - $ 1,260 Collectively evaluated for impairment 291 259 1,704 2,991 347 5,592 Total ending allowance balance $ 727 $ 259 $ 1,836 $ 3,683 $ 347 $ 6,852 Real Estate- Mortgage December 31, 2016 Commercial and industrial Real estate- construction Residential Commercial Consumer installment Total Allowance for loan and lease losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ 90 $ - $ 251 $ 186 $ - $ 527 Collectively evaluated for impairment 358 172 2,567 2,949 25 6,071 Total ending allowance balance $ 448 $ 172 $ 2,818 $ 3,135 $ 25 $ 6,598 The Company ’s loan portfolio is segmented to a level that allows management to monitor risk and performance. The portfolio is segmented into Commercial and Industrial (“C&I”), Real Estate Construction, Real Estate - Mortgage which is further segmented into Residential and Commercial real estate (“CRE”), and Consumer Installment Loans. The C&I loan segment consists of loans made for the purpose of financing the activities of commercial customers. The residential mortgage loan segment consists of loans made for the purpose of financing the activities of residential homeowners. The commercial mortgage loan segment consists of loans made for the purpose of financing the activities of commercial real estate owners and operators. The consumer loan segment consists primarily of installment loans and overdraft lines of credit connected with customer deposit accounts. The increase in the allowance for loan loss for C&I, Real Estate Construction, CRE, and Consumer Installment loan portfolios were partially offset by a decrease in the allowance for the Residential loan portfolio. Management evaluates individual loans in all of the commercial segments for possible impairment based on guidance established by the Board of Directors. Loans are considered to be impaired when, based on current information and events, it is probable that the Company 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 evaluating impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. The Company does not Once the determination has been made that a loan is impaired, the determination of whether a specific allocation of the allowance is necessary is measured by comparing the recorded investment in the loan to the fair value of the loan using one the following methods: (a) the present value of expected future cash flows discounted at the loan’s effective interest rate; (b) the loan’s observable market price; or (c) the fair value of the collateral less selling costs. The method is selected on a loan-by-loan basis, with management primarily utilizing the fair value of collateral method. The evaluation of the need and amount of a specific allocation of the allowance and whether a loan can be removed from impairment status is made on a quarterly basis. The Company’s policy for recognizing interest income on impaired loans does not The following table s present impaired loans by class, segregated by those for which a specific allowance was required and those for which a specific allowance was not September 30, 2017 Impaired Loans Unpaid Recorded Principal Related Investment Balance Allowance With no related allowance recorded: Commercial and industrial $ 1,368 $ 1,550 $ - Real estate - construction 185 185 - Real estate - mortgage: Residential 1,875 2,092 - Commercial 2,969 3,108 - Total $ 6,397 $ 6,935 $ - With an allowance recorded: Commercial and industrial $ 1,670 $ 2,115 $ 436 Real estate - mortgage: Residential 969 1,005 132 Commercial 2,819 2,984 692 Consumer installment 4 4 - Total $ 5,462 $ 6,108 $ 1,260 Total: Commercial and industrial $ 3,038 $ 3,665 $ 436 Real estate - construction 185 185 - Real estate - mortgage: Residential 2,844 3,097 132 Commercial 5,788 6,092 692 Consumer installment 4 4 - Total $ 11,859 $ 13,043 $ 1,260 December 31, 2016 Impaired Loans Unpaid Recorded Principal Related Investment Balance Allowance With no related allowance recorded: Commercial and industrial $ 319 $ 318 $ - Real estate - construction 913 909 - Real estate - mortgage: Residential 2,142 2,140 - Commercial 2,031 2,027 - Total $ 5,405 $ 5,394 $ - With an allowance recorded: Commercial and industrial $ 871 $ 868 $ 90 Real estate - mortgage: Residential 993 991 251 Commercial 5,156 5,147 186 Consumer installment 5 5 - Total $ 7,025 $ 7,011 $ 527 Total: Commercial and industrial $ 1,190 $ 1,186 $ 90 Real estate - construction 913 909 - Real estate - mortgage: Residential 3,135 3,131 251 Commercial 7,187 7,174 186 Consumer installment 5 5 - Total $ 12,430 $ 12,405 $ 527 The tables above include troubled debt restructuring totaling $ 2.4 September 30, 2017 $2.7 December 31, 2016. The following table s present the average balance and interest income by class, recognized on impaired loans (in thousands): For the Three Months Ended September 30, 2017 For the Nine Months Ended September 30, 2017 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Total: Commercial and industrial $ 2,633 $ 69 $ 1,962 $ 210 Real estate - construction 431 - 738 1 Real estate - mortgage: Residential 2,988 19 3,149 69 Commercial 7,216 48 7,223 231 Consumer installment 5 1 5 1 $ 13,273 $ 137 $ 13,077 $ 512 For the Three Months Ended September 30, 2016 For the Nine Months Ended September 30, 2016 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Total: Commercial and industrial $ 864 $ 4 $ 1,218 $ 9 Real estate - construction 1,105 3 1,404 22 Real estate - mortgage: Residential 3,389 - 3,660 36 Commercial 7,939 8 7,449 115 Consumer installment 5 - 6 - $ 13,302 $ 15 $ 13,737 $ 182 Management uses a nine first five not ized and are aggregated as Pass rated. The criticized rating categories utilized by management generally follow bank regulatory definitions. The Special Mention category includes assets that are currently protected but are potentially weak, resulting in an undue and unwarranted credit risk, but not not 90 To help ensure that risk ratings are accurate and reflect the present and future capacity of borrowers to repay a loan as agreed, the Company has a structured loan-rating process with several layers of internal and external oversight. Generally, consumer and residential mortgage loans are included in the Pass categories unless a specific action, such as bankruptcy, repossession, or death, occurs to raise awareness of a possible credit event. The Company’s Commercial Loan Officers are responsible for the timely and accurate risk rating of the loans in their portfolios at origination and on an ongoing basis with the Chief Credit Officer ultimately responsible for accurate and timely risk ratings. The Credit Department performs an annual review of all commercial relationships with loan balances of $1,000,000 $250,000 $125,000. The primary risk of commercial and industrial loans is the cu rrent economic uncertainties. C&I loans are, by nature, secured by less substantial collateral than real estate-secured loans. The primary risk of real estate construction loans is potential delays and /or disputes during the completion process. The primary risk of residential real estate loans is current economic uncertainties along with the slow recovery in the housing market. The primary risk of commercial real estate loans is loss of income of the owner or occupier of the property and the inability of the market to sustain rent levels. Consumer installment loans historically have experienced higher delinquency rates. Consumer installments are typically secured by less substantial collateral than other types of credits. The following table s present the classes of the loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk-rating system (in thousands): Special Total Pass Mention Substandard Doubtful Loans September 30, 2017 Commercial and industrial $ 92,855 $ 2,188 $ 4,271 $ - $ 99,314 Real estate - construction 40,737 - 23 - 40,760 Real estate - mortgage: Residential 310,086 744 5,361 - 316,191 Commercial 393,538 4,477 5,120 - 403,135 Consumer installment 18,909 - 232 - 19,141 Total $ 856,125 $ 7,409 $ 15,007 $ - $ 878,541 Special Total December 31, 2016 Pass Mention Substandard Doubtful Loans Commercial and industrial $ 58,539 $ 663 $ 1,428 $ - $ 60,630 Real estate - construction 23,541 144 24 - 23,709 Real estate - mortgage: Residential 264,481 428 5,921 - 270,830 Commercial 240,678 4,422 4,390 - 249,490 Consumer installment 4,467 - 14 - 4,481 Total $ 591,706 $ 5,657 $ 11,777 $ - $ 609,140 Management further monitors the performance and credit quality of the loan portfolio by analyzing the age of the portfolio as determined by the length of time a recorded payment is past due. Nonperforming assets include non accrual loans, troubled debt restructurings (TDRs), loans 90 The following table s present the classes of the loan portfolio summarized by the aging categories of performing loans (in thousands): 30-59 Days 60-89 Days 90 Days+ Total Total Current Past Due Past Due Past Due Past Due Loans September 30, 2017 Commercial and industrial $ 98,449 $ 632 $ - $ 233 $ 865 $ 99,314 Real estate - construction 40,760 - - - - 40,760 Real estate - mortgage: Residential 313,720 1,101 37 1,333 2,471 316,191 Commercial 400,497 1,236 1,037 365 2,638 403,135 Consumer installment 19,128 10 3 - 13 19,141 Total $ 872,554 $ 2,979 $ 1,077 $ 1,931 $ 5,987 $ 878,541 30-59 Days 60-89 Days 90 Days+ Total Total Current Past Due Past Due Past Due Past Due Loans December 31, 2016 Commercial and industrial $ 60,407 $ 17 $ 2 $ 204 $ 223 $ 60,630 Real estate - construction 23,709 - - - - 23,709 Real estate - mortgage: Residential 268,041 1,909 207 673 2,789 270,830 Commercial 249,081 92 - 317 409 249,490 Consumer installment 4,465 - 10 6 16 4,481 Total $ 605,703 $ 2,018 $ 219 $ 1,200 $ 3,437 $ 609,140 The following tables present the classes of the loan portfolio summarized by nonaccrual loans (in thousands): September 30, 2017 90+ Days Past Nonaccrual Due and Accruing Commercial and industrial $ 1,367 $ 20 Real estate - mortgage: Residential 3,802 248 Commercial 3,356 - Total $ 8,525 $ 268 December 31, 2016 90+ Days Past Nonaccrual Due and Accruing Commercial and industrial $ 454 $ - Real estate - mortgage: Residential 4,034 - Commercial 1,409 - Consumer installment 6 - Total $ 5,903 $ - Interest income that would have been recorded had these loans not 398,000 nine September 30, 2017 $309,000 December 31, 2016. An allowance for loan and lease losses (“ALLL”) is maintained to absorb losses from the loan portfolio. The ALLL is based on management’s continuing evaluation of the risk characteristics and credit quality of the loan portfolio, assessment of current economic conditions, diversification and size of the portfolio, adequacy of collateral, past and anticipated loss experience, and the amount of nonperforming loans. The Company ’s methodology for determining the ALLL is based on the requirements of ASC Section 310 10 35 450 20 two may Loans that are collectively evaluated for impairment are analyzed with general allowances being made as appropriate. For general allowances, historical loss trends are used in the estimation of losses in the current portfolio. These historical loss amounts are modified by other qualitative factors. The classes described above, which are based on the purpose code assigned to each loan, provide the starting point for the ALLL analysis. Management tracks the historical net charge-off activity at the purpose code level. The historical charge-off factor was calculated using the last twelve Management has identified a number of additional qualitative factors which it uses to supplement the historical charge-off factor because these factors are likely to cause estimated credit losses associated with the existing loan pools to differ from historical loss experience. The additional factors that are evaluated quarterly and updated using information obtained from internal, regulatory, and governmental sources are: national and local economic trends and conditions; levels of and trends in delinquency rates and nonaccrual loans; trends in volumes and terms of loans; effects of changes in lending policies; experience, ability, and depth of lending staff; value of underlying collateral; and concentrations of credit from a loan type, industry and/or geographic standpoint. Management reviews the loan portfolio on a quarterly basis using a defined, consistently applied process in order to make appropriate and timely adjustments to the ALLL. When information confirms all or part of specific loans to be uncollectible, these amounts are promptly charged off against the ALLL. The following table s summarize the primary segments of the loan portfolio (in thousands): Commercial and industrial Real estate- construction Real estate- residential mortgage Real estate- commercial mortgage Consumer installment Total ALLL balance at December 31, 2016 $ 448 $ 172 $ 2,818 $ 3,135 $ 25 $ 6,598 Charge-offs (439 ) - (74 ) (39 ) (384 ) (936 ) Recoveries 189 34 59 111 182 575 Provision 529 53 (967 ) 476 524 615 ALLL balance at September 30, 2017 $ 727 $ 259 $ 1,836 $ 3,683 $ 347 $ 6,852 Commercial and industrial Real estate- construction Real estate- residential mortgage Real estate- commercial mortgage Consumer installment Total ALLL balance at December 31, 2015 $ 867 $ 276 $ 3,139 $ 2,078 $ 25 $ 6,385 Charge-offs (197 ) - (394 ) (70 ) (18 ) (679 ) Recoveries 51 - 113 140 9 313 Provision (208 ) (138 ) (97 ) 747 11 315 ALLL balance at September 30, 2016 $ 513 $ 138 $ 2,761 $ 2,895 $ 27 $ 6,334 Commercial and industrial Real estate- construction Real estate- residential mortgage Real estate- commercial mortgage Consumer installment Total ALLL balance at June 30, 2017 $ 613 $ 202 $ 1,767 $ 4,012 $ 11 $ 6,605 Charge-offs (4 ) - - (20 ) (229 ) (253 ) Recoveries 46 11 45 111 7 220 Provision 72 46 24 (420 ) 558 280 ALLL balance at September 30, 2017 $ 727 $ 259 $ 1,836 $ 3,683 $ 347 $ 6,852 Commercial and industrial Real estate- construction Real estate- residential mortgage Real estate- commercial mortgage Consumer installment Total ALLL balance at June 30, 2016 $ 484 $ 159 $ 2,788 $ 2,909 $ 26 $ 6,366 Charge-offs (74 ) - (149 ) - (3 ) (226 ) Recoveries 4 - 82 - 3 89 Provision 99 (21 ) 40 (14 ) 1 105 ALLL balance at September 30, 2016 $ 513 $ 138 $ 2,761 $ 2,895 $ 27 $ 6,334 The negative provision allocated to residential real estate loans in the amount of $967,000 three September 30, 2017 The negative provision allocated to commercial real estate loans in the amount of $420,000 nine September 30, 2017 The following table s summarize troubled debt restructurings (in thousands): For the Three Months Ended September 30, 2017 Number of Contracts Pre-Modification Post-Modification Term Outstanding Recorded Outstanding Recorded Troubled Debt Restructurings Modification Other Total Investment Investment Residential real estate 1 - 1 $ 29 $ 29 For the Nine Months Ended September 30, 2017 Number of Contracts Pre-Modification Post-Modification Term Outstanding Recorded Outstanding Recorded Troubled Debt Restructurings Modification Other Total Investment Investment Commercial and industrial 1 1 2 $ 954 $ 955 Residential real estate 3 - 3 39 39 For the Nine Months Ended September 30, 2016 Number of Contracts Pre-Modification Post-Modification Term Outstanding Recorded Outstanding Recorded Troubled Debt Restructurings Modification Other Total Investment Investment Commercial and industrial 2 - 2 $ 169 $ 169 Residential real estate 1 - 1 58 58 Commercial real estate 1 - 1 311 311 For the three September 30, 2016 no One $33,000, during 2017. September 30, 2017. no three nine September 30, 2017. The following tables summarize subsequent defaults of troubled debt restructurings (in thousands) for the three nine September 30, 2016: For the Three Months Ended September 30, 2016 Troubled Debt Restructurings subsequently defaulted Number of Contracts Recorded Investment Commercial and industrial 1 $ 3 Residential real estate 1 58 For the Nine Months Ended September 30, 2016 Troubled Debt Restructurings subsequently defaulted Number of Contracts Recorded Investment Commercial and industrial 2 $ 273 Real estate construction 1 58 |