Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | Loans Receivable and Related Allowance for Loan Losses (Dollar amounts in thousands) June 30, December 31, 2015 2014 Mortgage loans on real estate: Residential first mortgages $ 122,587 $ 107,173 Home equity loans and lines of credit 89,679 89,106 Commercial real estate 112,087 110,810 324,353 307,089 Other loans: Commercial business 70,663 70,185 Consumer 6,997 7,598 77,660 77,783 Total loans, gross 402,013 384,872 Less allowance for loan losses 5,370 5,224 Total loans, net $ 396,643 $ 379,648 During the second quarter of 2015, the Corporation purchased four syndicated national credits (SNCs) each having a principal amount of $ 1.0 4.0 21,000 1.0 4.0 15,000 11,000 Until sufficient historical performance data can be collected and analyzed, these During the six months ended June 30, 2015, the Corporation received $ 1.5 1.0 6.5 (Dollar amounts in thousands) Impaired Loans with Specific Allowance For the three months As of June 30, 2015 ended June 30, 2015 Cash Basis Unpaid Average Interest Income Interest Principal Recorded Related Recorded Recognized Recognized Balance Investment Allowance Investment in Period in Period Residential first mortgages $ 169 $ 169 $ 27 $ 170 $ 2 $ 2 Home equity and lines of credit - - - - - - Commercial real estate 3,538 2,597 216 2,603 49 41 Commercial business 1,159 1,159 342 1,859 118 106 Consumer - - - - - - Total $ 4,866 $ 3,925 $ 585 $ 4,632 $ 169 $ 149 For the six months ended June 30, 2015 Cash Basis Average Interest Income Interest Recorded Recognized Recognized Investment in Period in Period Residential first mortgages $ 170 $ 4 $ 4 Home equity and lines of credit - - - Commercial real estate 2,627 49 41 Commercial business 2,113 118 106 Consumer - - - Total $ 4,910 $ 171 $ 151 Impaired Loans with No Specific Allowance For the three months As of June 30, 2015 ended June 30, 2015 Cash Basis Unpaid Average Interest Income Interest Principal Recorded Recorded Recognized Recognized Balance Investment Investment in Period in Period Residential first mortgages $ - $ - $ 55 $ 7 $ 7 Home equity and lines of credit - - - - - Commercial real estate 805 406 608 1 1 Commercial business 73 73 62 - - Consumer - - - - - Total $ 878 $ 479 $ 725 $ 8 $ 8 For the six months ended June 30, 2015 Cash Basis Average Interest Income Interest Recorded Recognized Recognized Investment in Period in Period Residential first mortgages $ 75 $ 7 $ 7 Home equity and lines of credit - - - Commercial real estate 690 6 6 Commercial business 58 2 2 Consumer - - - Total $ 823 $ 15 $ 15 The following table presents impaired loans by class, segregated by those for which a specific allowance was required and those for which a specific allowance was not necessary as of December 31, 2014: (Dollar amounts in thousands) Impaired Loans with Specific Allowance For the year ended As of December 31, 2014 December 31, 2014 Cash Basis Unpaid Average Interest Income Interest Principal Recorded Related Recorded Recognized Recognized Balance Investment Allowance Investment in Period in Period Residential first mortgages $ 171 $ 171 $ 27 $ 136 $ 12 $ 12 Home equity and lines of credit - - - - - - Commercial real estate 3,615 2,674 268 2,673 16 - Commercial business 2,622 2,622 495 1,524 66 - Consumer - - - - - - Total $ 6,408 $ 5,467 $ 790 $ 4,333 $ 94 $ 12 Impaired Loans with No Specific Allowance For the year ended As of December 31, 2014 December 31, 2014 Cash Basis Unpaid Average Interest Income Interest Principal Recorded Recorded Recognized Recognized Balance Investment Investment in Period in Period Residential first mortgages $ 114 $ 114 $ 74 $ 2 $ - Home equity and lines of credit - - - - - Commercial real estate 1,254 855 839 15 4 Commercial business 51 51 250 1 1 Consumer - - 1,078 533 533 Total $ 1,419 $ 1,020 $ 2,241 $ 551 $ 538 The following table presents impaired loans by class, segregated by those for which a specific allowance was required and those for which a specific allowance was not necessary as of June 30, 2014: (Dollar amounts in thousands) Impaired Loans with Specific Allowance For the three months As of June 30, 2014 ended June 30, 2014 Cash Basis Unpaid Average Interest Income Interest Principal Recorded Related Recorded Recognized Recognized Balance Investment Allowance Investment in Period in Period Residential first mortgages $ 172 $ 172 $ 28 $ 127 $ 8 $ 2 Home equity and lines of credit - - - - - - Commercial real estate 3,649 2,708 227 2,715 10 10 Commercial business 2,210 2,210 540 1,314 51 4 Consumer - - - - - - Total $ 6,031 $ 5,090 $ 795 $ 4,156 $ 69 $ 16 For the six months ended June 30, 2014 Cash Basis Average Interest Income Interest Recorded Recognized Recognized Investment in Period in Period Residential first mortgages $ 112 $ 9 $ 3 Home equity and lines of credit - - - Commercial real estate 2,650 17 12 Commercial business 876 56 4 Consumer - - - Total $ 3,638 $ 82 $ 19 Impaired Loans with No Specific Allowance For the three months As of June 30, 2014 ended June 30, 2014 Cash Basis Unpaid Average Interest Income Interest Principal Recorded Recorded Recognized Recognized Balance Investment Investment in Period in Period Residential first mortgages $ 118 $ 118 $ 59 $ 2 $ - Home equity and lines of credit - - - - - Commercial real estate 1,488 1,089 896 12 1 Commercial business 430 428 407 1 1 Consumer 1,348 1,348 1,348 - - Total $ 3,384 $ 2,983 $ 2,710 $ 15 $ 2 For the six months ended June 30, 2014 Cash Basis Average Interest Income Interest Recorded Recognized Recognized Investment in Period in Period Residential first mortgages $ 46 $ 2 $ - Home equity and lines of credit - - - Commercial real estate 823 14 3 Commercial business 383 1 1 Consumer 1,348 - - Total $ 2,600 $ 17 $ 4 Unpaid principal balance includes any loans that have been partially charged off but not forgiven. Accrued interest is not included in the recorded investment in loans based on the amounts not being material. Troubled debt restructurings (TDR). The Corporation has certain loans that have been modified in order to maximize collection of loan balances. If, for economic or legal reasons related to the customer’s financial difficulties, management grants a concession compared to the original terms and conditions of the loan that it would not have otherwise considered, the modified loan is classified as a TDR. Concessions related to TDRs generally do not include forgiveness of principal balances. The Corporation generally does not extend additional credit to borrowers with loans classified as TDRs. At June 30, 2015 and December 31, 2014, the Corporation had $ 2.7 5.6 170,000 513,000 During the three and six month periods ended June 30, 2015, the Corporation did not modify any loans as TDRs. During the three and six month periods ended June 30, 2014, the Corporation modified eleven eight 2.4 two 2.1 76,000 93,000 5,000 13,000 6.25% 5.00% 15 year A loan is considered to be in payment default once it is 30 days contractually past due under the modified terms. During the three and six month periods ended June 30, 2015, there was a default on one $ 90,000 Credit Quality Indicators. Management categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information and current economic trends, among other factors. Commercial real estate and commercial business loans not identified as impaired are evaluated as risk rated pools of loans utilizing a risk rating practice that is supported by a quarterly special asset review. In this review process, strengths and weaknesses are identified, evaluated and documented for each criticized and classified loan and borrower, strategic action plans are developed, risk ratings are confirmed and the loan’s performance status is reviewed. Management has determined certain portions of the loan portfolio to be homogeneous in nature and assigns like reserve factors for the following loan pool types: residential real estate, home equity loans and lines of credit, and consumer installment and personal lines of credit. The reserve allocation for risk rated loan pools is developed by applying the following factors: Historic: Management utilizes a computer model to develop the historical net charge-off experience which is used to formulate the assumptions employed in the migration analysis applied to estimate future losses in the portfolio. Outstanding balance and charge-off information are input into the model and historical loss migration rate assumptions are developed to apply to pass, special mention, substandard and doubtful risk rated loans. A twelve-quarter rolling weighted-average is utilized to estimate probable incurred losses in the portfolios. Qualitative : Qualitative adjustment factors for pass, special mention, substandard and doubtful ratings are developed and applied to risk rated loans to allow for: quality of lending policies and procedures; national and local economic and business conditions; changes in the nature and volume of the portfolio; experiences, ability and depth of lending management; changes in trends, volume and severity of past due, nonaccrual and classified loans and loss and recovery trends; quality of loan review systems; concentrations of credit and other external factors. Management uses the following definitions for risk ratings: Pass: Loans classified as pass typically exhibit good payment performance and have underlying borrowers with acceptable financial trends where repayment capacity is evident. These borrowers typically would have a sufficient cash flow that would allow them to weather an economic downturn and the value of any underlying collateral could withstand a moderate degree of depreciation due to economic conditions. Special Mention: Loans classified as special mention are characterized by potential weaknesses that could jeopardize repayment as contractually agreed. These loans may exhibit adverse trends such as increasing leverage, shrinking profit margins and/or deteriorating cash flows. These borrowers would inherently be more vulnerable to the application of economic pressures. Substandard: Loans classified as substandard exhibit weaknesses that are well-defined to the point that repayment is jeopardized. Typically, the Corporation is no longer adequately protected by both the apparent net worth and repayment capacity of the borrower. Doubtful: Loans classified as doubtful have advanced to the point that collection or liquidation in full, on the basis of currently ascertainable facts, conditions and value, is highly questionable or improbable. (Dollar amounts in thousands) Special Not Rated Pass Mention Substandard Doubtful Total June 30, 2015: Residential first mortgages $ 121,574 $ - $ - $ 1,013 $ - $ 122,587 Home equity and lines of credit 89,091 - - 588 - 89,679 Commercial real estate - 105,968 97 6,022 - 112,087 Commercial business - 68,528 317 1,818 - 70,663 Consumer 6,997 - - - - 6,997 Total $ 217,662 $ 174,496 $ 414 $ 9,441 $ - $ 402,013 December 31, 2014: Residential first mortgages $ 106,448 $ - $ - $ 725 $ - $ 107,173 Home equity and lines of credit 88,699 - - 407 - 89,106 Commercial real estate - 103,908 515 6,387 - 110,810 Commercial business - 65,627 1,292 3,266 - 70,185 Consumer 7,598 - - - - 7,598 Total $ 202,745 $ 169,535 $ 1,807 $ 10,785 $ - $ 384,872 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. (Dollar amounts in thousands) Performing Nonperforming Accruing Accruing Accruing Accruing Loans Not 30-59 Days 60-89 Days 90 Days + Total Past Due Past Due Past Due Past Due Nonaccrual Loans June 30, 2015: Residential first mortgages $ 120,634 $ 566 $ 374 $ - $ 1,013 $ 122,587 Home equity and lines of credit 88,904 187 - 12 576 89,679 Commercial real estate 108,945 234 - - 2,908 112,087 Commercial business 69,504 - 213 - 946 70,663 Consumer 6,941 56 - - - 6,997 Total loans $ 394,928 $ 1,043 $ 587 $ 12 $ 5,443 $ 402,013 December 31, 2014: Residential first mortgages $ 104,523 $ 1,523 $ 402 $ 78 $ 647 $ 107,173 Home equity and lines of credit 87,982 675 42 - 407 89,106 Commercial real estate 107,292 30 55 16 3,417 110,810 Commercial business 67,808 - - - 2,377 70,185 Consumer 7,545 41 12 - - 7,598 Total loans $ 375,150 $ 2,269 $ 511 $ 94 $ 6,848 $ 384,872 (Dollar amounts in thousands) Not 30-59 Days 60-89 Days 90 Days + Total Past Due Past Due Past Due Past Due Loans June 30, 2015: Residential first mortgages $ 77 $ 79 $ 90 $ 767 $ 1,013 Home equity and lines of credit - 16 - 560 576 Commercial real estate 2,723 56 - 129 2,908 Commercial business 922 - - 24 946 Consumer - - - - - Total loans $ 3,722 $ 151 $ 90 $ 1,480 $ 5,443 December 31, 2014: Residential first mortgages $ 283 $ - $ 80 $ 284 $ 647 Home equity and lines of credit 33 18 - 356 407 Commercial real estate 2,848 - - 569 3,417 Commercial business 2,151 - 188 38 2,377 Consumer - - - - - Total loans $ 5,315 $ 18 $ 268 $ 1,247 $ 6,848 An allowance for loan losses (ALL) is maintained to absorb probable incurred losses from the loan portfolio. The ALL 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. 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 ALL. When information confirms all or part of specific loans to be uncollectible, these amounts are promptly charged off against the ALL. (Dollar amounts in thousands) Home Equity Residential & Lines Commercial Commercial Mortgages of Credit Real Estate Business Consumer Total Three months ended June 30, 2015: Allowance for loan losses: Beginning Balance $ 1,088 $ 611 $ 2,233 $ 1,360 $ 48 $ 5,340 Charge-offs - (22) - (182) (6) (210) Recoveries - 25 6 - 6 37 Provision 170 8 (78) 104 (1) 203 Ending Balance $ 1,258 $ 622 $ 2,161 $ 1,282 $ 47 $ 5,370 Six months ended June 30, 2015: Allowance for loan losses: Beginning Balance $ 955 $ 543 $ 2,338 $ 1,336 $ 52 $ 5,224 Charge-offs (4) (85) - (182) (29) (300) Recoveries - 30 12 20 13 75 Provision 307 134 (189) 108 11 371 Ending Balance $ 1,258 $ 622 $ 2,161 $ 1,282 $ 47 $ 5,370 June 30, 2015: Ending ALL balance attributable to loans: Individually evaluated for impairment 27 - 216 342 - 585 Collectively evaluated for impairment 1,231 622 1,945 940 47 4,785 Total loans: Individually evaluated for impairment 169 - 3,003 1,232 - 4,404 Collectively evaluated for impairment 122,418 89,679 109,084 69,431 6,997 397,609 At December 31, 2014: Ending ALL balance attributable to loans: Individually evaluated for impairment 27 - 268 495 - 790 Collectively evaluated for impairment 928 543 2,070 841 52 4,434 Total loans: Individually evaluated for impairment 285 - 3,529 2,673 - 6,487 Collectively evaluated for impairment 106,888 89,106 107,281 67,512 7,598 378,385 Three months ended June 30, 2014: Allowance for loan losses: Beginning Balance $ 936 $ 619 $ 2,221 $ 1,094 $ 51 $ 4,921 Charge-offs (19) (14) - - (33) (66) Recoveries - - 4 - 4 8 Provision - (137) 150 139 31 183 Ending Balance $ 917 $ 468 $ 2,375 $ 1,233 $ 53 $ 5,046 Six months ended June 30, 2014: Allowance for loan losses: Beginning Balance $ 923 $ 625 $ 2,450 $ 822 $ 49 $ 4,869 Charge-offs (97) (14) (2) (17) (67) (197) Recoveries - - 9 7 13 29 Provision 91 (143) (82) 421 58 345 Ending Balance $ 917 $ 468 $ 2,375 $ 1,233 $ 53 $ 5,046 The allowance for loan losses is based on estimates and actual losses may vary from current estimates. Management believes that the granularity of the homogeneous pools and the related historical loss ratios and other qualitative factors, as well as the consistency in the application of assumptions, result in an ALL that is representative of the risk found in the components of the portfolio at any given date. |