Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | N OTE 4 – LOANS AND ALLOWANCE FOR LOAN LOSSES March 31, 2016 December 31, 2015 Residential real estate $ 227,026 $ 223,875 Commercial real estate: Owner-occupied 71,117 73,458 Nonowner-occupied 71,731 72,002 Construction 26,512 23,852 Commercial and industrial 81,034 81,936 Consumer: Automobile 44,952 44,566 Home equity 19,558 20,841 Other 43,915 45,222 585,845 585,752 Less: Allowance for loan losses 6,946 6,648 Loans, net $ 578,899 $ 579,104 The following table presents the activity in the allowance for loan losses by portfolio segment for the three months ended March 31, 2016 and 2015: March 31, 2016 Residential Real Estate Commercial Real Estate Commercial and Industrial Consumer Total Allowance for loan losses: Beginning balance $ 1,087 $ 1,959 $ 2,589 $ 1,013 $ 6,648 Provision for loan losses 40 17 82 340 479 Loans charged off (104 ) ---- ---- (483 ) (587 ) Recoveries 162 19 1 224 406 Total ending allowance balance $ 1,185 $ 1,995 $ 2,672 $ 1,094 $ 6,946 March 31, 2015 Residential Real Estate Commercial Real Estate Commercial and Industrial Consumer Total Allowance for loan losses: Beginning balance $ 1,426 $ 4,195 $ 1,602 $ 1,111 $ 8,334 Provision for loan losses 31 6 14 (129 ) (78 ) Loans charged-off (97 ) (8 ) (2 ) (261 ) (368 ) Recoveries 105 17 124 186 432 Total ending allowance balance $ 1,465 $ 4,210 $ 1,738 $ 907 $ 8,320 The following table presents the balance in the allowance for loan losses and the recorded investment of loans by portfolio segment and based on impairment method as of March 31, 2016 and December 31, 2015: March 31, 2016 Residential Real Estate Commercial Real Estate Commercial and Industrial Consumer Total Allowance for loan losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ ---- $ 309 $ 1,900 $ 3 $ 2,212 Collectively evaluated for impairment 1,185 1,686 772 1,091 4,734 Total ending allowance balance $ 1,185 $ 1,995 $ 2,672 $ 1,094 $ 6,946 Loans: Loans individually evaluated for impairment $ 730 $ 8,022 $ 8,869 $ 218 $ 17,839 Loans collectively evaluated for impairment 226,296 161,338 72,165 108,207 568,006 Total ending loans balance $ 227,026 $ 169,360 $ 81,034 $ 108,425 $ 585,845 December 31, 2015 Residential Real Estate Commercial Real Estate Commercial and Industrial Consumer Total Allowance for loan losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ ---- $ 311 $ 1,850 $ 3 $ 2,164 Collectively evaluated for impairment 1,087 1,648 739 1,010 4,484 Total ending allowance balance $ 1,087 $ 1,959 $ 2,589 $ 1,013 $ 6,648 Loans: Loans individually evaluated for impairment $ 1,001 $ 7,318 $ 8,691 $ 218 $ 17,228 Loans collectively evaluated for impairment 222,874 161,994 73,245 110,411 568,524 Total ending loans balance $ 223,875 $ 169,312 $ 81,936 $ 110,629 $ 585,752 The following tables present information related to loans individually evaluated for impairment by class of loans as of March 31, 2016 and December 31, 2015: March 31, 2016 Unpaid Principal Balance Recorded Investment Allowance for Loan Losses Allocated With an allowance recorded: Commercial real estate: Owner-occupied $ 204 $ 204 $ 204 Nonowner-occupied 393 393 105 Commercial and industrial 4,524 4,524 1,900 Consumer: Home equity 218 218 3 With no related allowance recorded: Residential real estate 730 730 ---- Commercial real estate: Owner-occupied 3,797 3,250 ---- Nonowner-occupied 5,896 3,495 ---- Construction 680 680 ---- Commercial and industrial 4,345 4,345 ---- Total $ 20,787 $ 17,839 $ 2,212 December 31, 2015 Unpaid Principal Balance Recorded Investment Allowance for Loan Losses Allocated With an allowance recorded: Commercial real estate: Owner-occupied $ 204 $ 204 $ 204 Nonowner-occupied 396 396 107 Commercial and industrial 4,355 4,355 1,850 Consumer: Home equity 218 218 3 With no related allowance recorded: Residential real estate 1,001 1,001 ---- Commercial real estate: Owner-occupied 3,812 3,265 ---- Nonowner-occupied 5,178 2,773 ---- Construction 680 680 ---- Commercial and industrial 4,336 4,336 ---- Total $ 20,180 $ 17,228 $ 2,164 The following tables present information related to loans individually evaluated for impairment by class of loans for the three months ended March 31, 2016 and 2015: Three months ended March 31, 2016 Average Impaired Loans Interest Income Recognized Cash Basis Interest Recognized With an allowance recorded: Commercial real estate: Owner-occupied $ 204 $ 4 $ 4 Nonowner-occupied 395 5 5 Commercial and industrial 4,439 41 41 Consumer: Home equity 219 2 2 With no related allowance recorded: Residential real estate 731 9 9 Commercial real estate: Owner-occupied 3,257 43 43 Nonowner-occupied 3,134 13 13 Construction 680 ---- ---- Commercial and industrial 4,341 51 51 Total $ 17,400 $ 168 $ 168 Three months ended March 31, 2015 Average Impaired Loans Interest Income Recognized Cash Basis Interest Recognized With an allowance recorded: Commercial real estate: Owner-occupied $ 827 $ ---- $ ---- Nonowner-occupied 7,618 16 16 Commercial and industrial 2,701 25 25 Consumer: Home equity 219 3 3 With no related allowance recorded: Residential real estate 1,412 9 9 Commercial real estate: Owner-occupied 2,566 30 30 Nonowner-occupied 300 12 12 Construction 340 ---- ---- Commercial and industrial 4,390 55 55 Total $ 20,373 $ 150 $ 150 The recorded investment of a loan is its carrying value excluding accrued interest and deferred loan fees. Nonaccrual loans and loans past due 90 days or more and still accruing include both smaller balance homogenous loans that are collectively evaluated for impairment and individually classified as impaired loans. The Company transfers loans to other real estate owned, at fair value less cost to sell, in the period the Company obtains physical possession of the property (through legal title or through a deed in lieu). As of March 31, 2016 and December 31, 2015, other real estate owned secured by residential real estate totaled $951 and $1,131, respectively. In addition, nonaccrual residential mortgage loans that are in the process of foreclosure had a recorded investment of $1,114 and $988 as of March 31, 2016 and December 31, 2015, respectively. The following table presents the recorded investment of nonaccrual loans and loans past due 90 days or more and still accruing by class of loans as of March 31, 2016 and December 31, 2015: March 31, 2016 Loans Past Due 90 Days And Still Accruing Nonaccrual Residential real estate $ 90 $ 2,103 Commercial real estate: Owner-occupied ---- 367 Nonowner-occupied ---- 2,635 Construction ---- 769 Commercial and industrial ---- 1,185 Consumer: Automobile 47 15 Home equity ---- 63 Other 4 5 Total $ 141 $ 7,142 December 31, 2015 Loans Past Due 90 Days And Still Accruing Nonaccrual Residential real estate $ 20 $ 2,048 Commercial real estate: Owner-occupied ---- 404 Nonowner-occupied ---- 2,737 Construction ---- 769 Commercial and industrial ---- 1,152 Consumer: Automobile 18 27 Home equity ---- 96 Other 1 3 Total $ 39 $ 7,236 The following table presents the aging of the recorded investment of past due loans by class of loans as of March 31, 2016 and December 31, 2015: March 31, 2016 30-59 Days Past Due 60-89 Days Past Due 90 Days Or More Past Due Total Past Due Loans Not Past Due Total Residential real estate $ 3,116 $ 755 $ 1,919 $ 5,790 $ 221,236 $ 227,026 Commercial real estate: Owner-occupied 412 1,038 231 1,681 69,436 71,117 Nonowner-occupied ---- 239 2,635 2,874 68,857 71,731 Construction ---- ---- 769 769 25,743 26,512 Commercial and industrial 71 75 1,077 1,223 79,811 81,034 Consumer: Automobile 552 198 62 812 44,140 44,952 Home equity 35 15 45 95 19,463 19,558 Other 324 73 4 401 43,514 43,915 Total $ 4,510 $ 2,393 $ 6,742 $ 13,645 $ 572,200 $ 585,845 December 31, 2015 30-59 Days Past Due 60-89 Days Past Due 90 Days Or More Past Due Total Past Due Loans Not Past Due Total Residential real estate $ 2,564 $ 1,484 $ 1,708 $ 5,756 $ 218,119 $ 223,875 Commercial real estate: Owner-occupied 141 33 371 545 72,913 73,458 Nonowner-occupied 35 334 2,737 3,106 68,896 72,002 Construction ---- 2 769 771 23,081 23,852 Commercial and industrial 31 88 1,077 1,196 80,740 81,936 Consumer: Automobile 727 197 36 960 43,606 44,566 Home equity 75 ---- 76 151 20,690 20,841 Other 420 104 4 528 44,694 45,222 Total $ 3,993 $ 2,242 $ 6,778 $ 13,013 $ 572,739 $ 585,752 Troubled Debt Restructurings: A troubled debt restructuring (“TDR”) occurs when the Company has agreed to a loan modification in the form of a concession for a borrower who is experiencing financial difficulty. All TDR’s are considered to be impaired. The modification of the terms of such loans included one or a combination of the following: a reduction of the stated interest rate of the loan; an extension of the maturity date at a stated rate of interest lower than the current market rate for new debt with similar risk; a reduction in the contractual principal and interest payments of the loan; or short-term interest-only payment terms. The Company has allocated reserves for a portion of its TDR’s to reflect the fair values of the underlying collateral or the present value of the concessionary terms granted to the customer. The following table presents the types of TDR loan modifications by class of loans as of March 31, 2016 and December 31, 2015: March 31, 2016 TDR’s Performing to Modified Terms TDR’s Not Performing to Modified Terms Total TDR’s Residential real estate Interest only payments $ 730 $ ---- $ 730 Commercial real estate: Owner-occupied Interest only payments 456 ---- 456 Rate reduction ---- 232 232 Reduction of principal and interest payments 598 ---- 598 Maturity extension at lower stated rate than market rate 1,964 ---- 1,964 Credit extension at lower stated rate than market rate 204 ---- 204 Nonowner-occupied Interest only payments 539 2,375 2,914 Rate reduction 393 ---- 393 Credit extension at lower stated rate than market rate 581 ---- 581 Commercial and industrial Interest only payments 7,544 ---- 7,544 Credit extension at lower stated rate than market rate 439 391 830 Consumer: Home equity Maturity extension at lower stated rate than market rate 218 ---- 218 Total TDR’s $ 13,666 $ 2,998 $ 16,664 December 31, 2015 TDR’s Performing to Modified Terms TDR’s Not Performing to Modified Terms Total TDR’s Residential real estate Interest only payments $ 1,001 $ ---- $ 1,001 Commercial real estate: Owner-occupied Interest only payments 433 ---- 433 Rate reduction ---- 232 232 Reduction of principal and interest payments 604 ---- 604 Maturity extension at lower stated rate than market rate 1,996 ---- 1,996 Credit extension at lower stated rate than market rate 204 ---- 204 Nonowner-occupied Interest only payments 300 2,473 2,773 Rate reduction 396 ---- 396 Commercial and industrial Interest only payments 7,579 ---- 7,579 Credit extension at lower stated rate than market rate 226 391 617 Consumer: Home equity Maturity extension at lower stated rate than market rate 218 ---- 218 Total TDR’s $ 12,957 $ 3,096 $ 16,053 During the three months ended March 31, 2016, the TDR's described above increased the provision expense and the allowance for loan losses by $48 with no corresponding charge-offs. During the year ended December 31, 2015, the TDR's described above increased the allowance for loan losses and provision expense by $93 with corresponding charge-offs of $1,422. The charge-offs of $1,422 during 2015 included $1,304 that were related to specific reserves that had already been provided for during 2014, and, as a result, did not impact provision expense during 2015. At March 31, 2016, the balance in TDR loans increased $611, or 3.8%, from year-end 2015. The increase was largely due to concessions granted on two commercial real estate nonowner-occupied loans during the first quarter of 2016. The Company had 82% of its TDR's performing according to their modified terms at March 31, 2016, as compared to 81% at December 31, 2015. The Company's specific allocations in reserves to customers whose loan terms have been modified in TDR’s totaled $1,717 at March 31, 2016, as compared to $1,669 in reserves at December 31, 2015. At March 31, 2016, the Company had $823 in commitments to lend additional amounts to customers with outstanding loans that are classified as TDR’s, as compared to $995 at December 31, 2015. The following table presents the pre- and post-modification balances of TDR loan modifications by class of loans that occurred during the three months ended March 31, 2016: TDR’s Performing to Modified Terms TDR’s Not Performing to Modified Terms Three months ended March 31, 2016 Pre- Modification Recorded Investment Post- Modification Recorded Investment Pre- Modification Recorded Investment Post- Modification Recorded Investment Commercial real estate: Nonowner-occupied Interest only payments $ 238 $ 238 $ ---- $ ---- Credit extension at lower stated rate than market rate 581 581 ---- ---- Total TDR’s $ 819 $ 819 $ ---- $ ---- All of the Company’s loans that were restructured during the three months ended March 31, 2016 were performing in accordance with their modified terms. Furthermore, there were no TDR’s described above at March 31, 2016 that experienced any payment defaults within twelve months following their loan modification. A default is considered to have occurred once the TDR is past due 90 days or more or it has been placed on nonaccrual. TDR loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. The loans modified during the three months ended March 31, 2016 had no impact on the provision expense or the allowance for loan losses. As of March 31, 2016, the Company had no allocation of reserves to customers whose loan terms were modified during the first three months of 2016. There were no TDR loan modifications that occurred during the three months ended March 31, 2015. Credit Quality Indicators: The Company 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. These risk categories are represented by a loan grading scale from 1 through 10. The Company analyzes loans individually with a higher credit risk rating and groups these loans into categories called “criticized” and ”classified” assets. The Company considers its criticized assets to be loans that are graded 8 and its classified assets to be loans that are graded 9 through 10. The Company’s risk categories are reviewed at least annually on loans that have aggregate borrowing amounts that meet or exceed $500. The Company uses the following definitions for its criticized loan risk ratings: Special Mention (Loan Grade 8). The Company uses the following definitions for its classified loan risk ratings: Substandard (Loan Grade 9). Doubtful (Loan Grade 10). Criticized and classified loans will mostly consist of commercial and industrial and commercial real estate loans. The Company considers its loans that do not meet the criteria for a criticized and classified asset rating as pass rated loans, which will include loans graded from 1 (Prime) to 7 (Watch). All commercial loans are categorized into a risk category either at the time of origination or reevaluation date. As of March 31, 2016 and December 31, 2015, and based on the most recent analysis performed, the risk category of commercial loans by class of loans was as follows: March 31, 2016 Pass Criticized Classified Total Commercial real estate: Owner-occupied $ 61,731 $ 5,548 $ 3,838 $ 71,117 Nonowner-occupied 61,968 1,775 7,988 71,731 Construction 25,375 ---- 1,137 26,512 Commercial and industrial 69,708 4,809 6,517 81,034 Total $ 218,782 $ 12,132 $ 19,480 $ 250,394 December 31, 2015 Pass Criticized Classified Total Commercial real estate: Owner-occupied $ 62,287 $ 6,738 $ 4,433 $ 73,458 Nonowner-occupied 61,577 6,305 4,120 72,002 Construction 23,080 ---- 772 23,852 Commercial and industrial 70,852 5,232 5,852 81,936 Total $ 217,796 $ 18,275 $ 15,177 $ 251,248 The Company also obtains the credit scores of its borrowers upon origination (if available by the credit bureau), but the scores are not updated. The Company focuses mostly on the performance and repayment ability of the borrower as an indicator of credit risk and does not consider a borrower's credit score to be a significant influence in the determination of a loan's credit risk grading. For residential and consumer loan classes, the Company evaluates credit quality based on the aging status of the loan, which was previously presented, and by payment activity. The following table presents the recorded investment of residential and consumer loans by class of loans based on repayment activity as of March 31, 2016 and December 31, 2015: March 31, 2016 Consumer Automobile Home Equity Other Residential Real Estate Total Performing $ 44,890 $ 19,495 $ 43,906 $ 224,833 $ 333,124 Nonperforming 62 63 9 2,193 2,327 Total $ 44,952 $ 19,558 $ 43,915 $ 227,026 $ 335,451 December 31, 2015 Consumer Automobile Home Equity Other Residential Real Estate Total Performing $ 44,521 $ 20,745 $ 45,218 $ 221,807 $ 332,291 Nonperforming 45 96 4 2,068 2,213 Total $ 44,566 $ 20,841 $ 45,222 $ 223,875 $ 334,504 The Company, through its subsidiaries, originates residential, consumer, and commercial loans to customers located primarily in the southeastern areas of Ohio as well as the western counties of West Virginia. Approximately 6.09% of total loans were unsecured at March 31, 2015, up from 6.06% at December 31, 2015. |