Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | Note 5 - Loans Receivable (Dollars in thousands) June 30, 2015 December 31, 2014 Loans secured by real estate: Residential, including home equity $ 182,729 $ 189,743 Commercial real estate, construction & land development, and other dwellings 230,466 211,162 Commercial participations purchased 321 2,289 Total loans secured by real estate 413,516 403,194 Consumer loans 398 358 Commercial business 66,345 58,790 Government loans 26,985 26,134 Subtotal 507,244 488,476 Less: Net deferred loan origination fees (172) (197) Undisbursed loan funds (84) (126) Loan receivables $ 506,988 $ 488,153 (Dollars in thousands) Residential Real Consumer Loans Commercial Real Commercial Commercial Government Total The Bancorp's activity in the allowance for loan losses, by loan segment, is summarized below for the three months ended June 30, 2015: Allowance for loan losses: Beginning Balance $ 1,965 $ 21 $ 3,694 $ 10 $ 815 $ 81 $ 6,586 Charge-offs (73) (9) (5) - - - (87) Recoveries - - - - 2 - 2 Provisions (364) 19 527 9 13 (6) 198 Ending Balance $ 1,528 $ 31 $ 4,216 $ 19 $ 830 $ 75 $ 6,699 The Bancorp's activity in the allowance for loan losses, by loan segment, is summarized below for the three months ended June 30, 2014: Allowance for loan losses: Beginning Balance $ 1,448 $ 17 $ 4,969 $ 41 $ 907 $ 61 $ 7,443 Charge-offs (11) (5) (1,417) - - - (1,433) Recoveries - - 1 - - - 1 Provisions 11 17 172 (16) (38) 19 165 Ending Balance $ 1,448 $ 29 $ 3,725 $ 25 $ 869 $ 80 $ 6,176 The Bancorp's activity in the allowance for loan losses, by loan segment, is summarized below for the six months ended June 30, 2015: Allowance for loan losses: Beginning Balance $ 1,878 $ 17 $ 3,645 $ 13 $ 733 $ 75 $ 6,361 Charge-offs (101) (14) (59) - - - (174) Recoveries - 1 22 - 4 - 27 Provisions (249) 27 608 6 93 - 485 Ending Balance $ 1,528 $ 31 $ 4,216 $ 19 $ 830 $ 75 $ 6,699 The Bancorp's activity in the allowance for loan losses, by loan segment, is summarized below for the six months ended June 30, 2014: Allowance for loan losses: Beginning Balance $ 1,444 $ 12 $ 4,789 $ 31 $ 859 $ 54 $ 7,189 Charge-offs (13) (12) (1,418) - - - (1,443) Recoveries 2 1 12 2 3 - 20 Provisions 15 28 342 (8) 7 26 410 Ending Balance $ 1,448 $ 29 $ 3,725 $ 25 $ 869 $ 80 $ 6,176 (Dollars in thousands) Residential Real Consumer Loans Commercial Real Commercial Commercial Government Total The Bancorp's allowance for loan losses impairment evaluation and loan receivables are summarized below at June 30, 2015: Ending balance: individually evaluated for impairment $ - $ - $ 336 $ 18 $ 67 $ - $ 421 Ending balance: collectively evaluated for impairment $ 1,528 $ 31 $ 3,880 $ 1 $ 763 $ 75 $ 6,278 LOAN RECEIVABLES Ending balance $ 182,538 $ 478 $ 230,464 $ 322 $ 66,283 $ 26,903 $ 506,988 Ending balance: individually evaluated for impairment $ 342 $ - $ 5,052 $ 96 $ 261 $ - $ 5,751 Ending balance: purchased credit impaired individually evaluated for impairment $ 880 $ - $ - $ - $ - $ - $ 880 Ending balance: collectively evaluated for impairment $ 181,316 $ 478 $ 225,412 $ 226 $ 66,022 $ 26,903 $ 500,357 The Bancorp's allowance for loan losses impairment evaluation and loan receivables are summarized below at December 31, 2014: Ending balance: individually evaluated for impairment $ 15 $ - $ 366 $ 11 $ 34 $ - $ 426 Ending balance: collectively evaluated for impairment $ 1,863 $ 17 $ 3,279 $ 2 $ 699 $ 75 $ 5,935 LOAN RECEIVABLES Ending balance $ 189,529 $ 357 $ 211,162 $ 2,289 $ 58,682 $ 26,134 $ 488,153 Ending balance: individually evaluated for impairment $ 97 $ - $ 6,240 $ 103 $ 328 $ - $ 6,768 Ending balance: purchased credit impaired individually evaluated for impairment $ 588 $ - $ - $ - $ - $ - $ 588 Ending balance: collectively evaluated for impairment $ 188,844 $ 357 $ 204,922 $ 2,186 $ 58,354 $ 26,134 $ 480,797 (Dollars in thousands) Corporate Credit Exposure - Credit Risk Portfolio By Creditworthiness Category Commercial Real Estate, Construction Commercial Participations Purchased Commercial Business Loans Government Loan Grades 2015 2014 2015 2014 2015 2014 2015 2014 2 Moderate risk $ - $ - $ - $ - $ 4,495 $ 4,920 $ - $ - 3 Acceptable risk 183,786 170,423 205 2,071 48,446 41,197 26,903 26,134 4 Pass/monitor 37,028 29,678 21 115 11,739 10,893 - - 5 Special mention (watch) 4,604 4,649 - - 1,342 1,343 - - 6 Substandard 5,046 6,412 96 103 261 329 - - 7 Doubtful - - - - - - - - Total $ 230,464 $ 211,162 $ 322 $ 2,289 $ 66,283 $ 58,682 $ 26,903 $ 26,134 (Dollars in thousands) Consumer Credit Exposure - Credit Risk Profile Based On Payment Activity Residential Real Estate, Consumer Loans 2015 2014 2015 2014 Performing $ 180,144 $ 185,996 $ 478 $ 357 Non-performing 2,394 3,533 - - Total $ 182,538 $ 189,529 $ 478 $ 357 The Bancorp has established a standard loan grading system to assist management, lenders and review personnel in their analysis and supervision of the loan portfolio. The use and application of these grades by the Bancorp is uniform and conforms to regulatory definitions. The loan grading system is as follows: 2 Moderate risk Borrower consistently internally generates sufficient cash flow to fund debt service, working assets, and some capital expenditures. Risk of default considered low. 3 Acceptable risk Borrower generates sufficient cash flow to fund debt service, but most working asset and all capital expansion needs are provided from external sources. Profitability ratios and key balance sheet ratios are usually close to peers but one or more ratios (e.g. leverage) may be higher than peers. Earnings may be trending down over the last three years. Borrower may be able to obtain similar financing from other banks with comparable or less favorable terms. Risk of default is acceptable but requires collateral protection. 4 Pass/monitor The borrower has significant weaknesses resulting from performance trends or management concerns. The financial condition of the company has taken a negative turn and may be temporarily strained. Cash flow may be weak but cash reserves remain adequate to meet debt service. Management weaknesses are evident. Borrowers in this category will warrant more than the normal level of supervision and more frequent reporting. 5 Special mention (watch) Special mention credits are considered bankable assets with no apparent loss of principal or interest envisioned but requiring a high level of management attention. Assets in this category are currently protected but are potentially weak. These borrowers are subject to economic, industry, or management factors having an adverse impact upon their prospects for orderly service of debt. The perceived risk in continued lending is considered to have increased beyond the level where such loans would normally be granted. These assets constitute an undue and unwarranted credit risk, but not to the point of justifying a classification of Substandard. 6 Substandard This classification consists of loans which are inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged. Financial statements normally reveal some or all of the following: poor trends, lack of earnings and cash flow, excessive debt, lack of liquidity, and the absence of creditor protection. Loans are still considered collectible, but due to increased risks and defined weaknesses of the credit, some loss could be incurred in collection if the deficiencies are not corrected. 7 Doubtful This classification consists of loans where the possibility of loss is high after collateral liquidation based upon existing facts, market conditions, and value. Loss is deferred until certain important and reasonably specific pending factors which may strengthen the credit can be exactly determined. These factors may include proposed acquisitions, liquidation procedures, capital injection and receipt of additional collateral, mergers or refinancing plans. Performing loans are loans that are paying as agreed and are approximately less than ninety days past due on payments of interest and principal. No loans were modified in a troubled debt restructuring, nor have any previous troubled debt restructurings subsequently defaulted, during the six months ended June 30, 2015 or 2014. As of June 30, 2015 For the six months ended (Dollars in thousands) Recorded Unpaid Principal Related Average Interest With no related allowance recorded: Residential real estate, including home equity $ 1,222 $ 2,210 $ - $ 1,246 $ 14 Commercial real estate, construction & land development, and other dwellings - - - - - Commercial participations purchased - - - - - Commercial business loans - - - - - With an allowance recorded: Residential real estate, including home equity - - - - - Commercial real estate, construction & land development, and other dwellings 5,052 5,052 336 5,068 43 Commercial participations purchased 96 96 18 98 4 Commercial business loans 261 529 67 287 2 Total: Residential real estate, including home equity $ 1,222 $ 2,210 $ - $ 1,246 $ 14 Commercial real estate, construction & land development, and other dwellings $ 5,052 $ 5,052 $ 336 $ 5,068 $ 43 Commercial participations purchased $ 96 $ 96 $ 18 $ 98 $ 4 Commercial business loans $ 261 $ 529 $ 67 $ 287 $ 2 As of December 31, 2014 For the six months ended (Dollars in thousands) Recorded Unpaid Principal Related Average Interest With no related allowance recorded: Residential real estate, including home equity $ - $ - $ - $ 160 $ 9 Commercial real estate, construction & land development, and other dwellings 524 524 - 956 38 Commercial participations purchased - - - - - Commercial business loans 25 25 - 256 1 With an allowance recorded: Residential real estate, including home equity 685 1,258 15 519 - Commercial real estate, construction & land development, and other dwellings 5,716 6,952 366 6,795 46 Commercial participations purchased 103 103 11 - - Commercial business loans 303 571 34 278 1 Total: Residential real estate, including home equity $ 685 $ 1,258 $ 15 $ 679 $ 9 Commercial real estate, construction & land development, and other dwellings $ 6,240 $ 7,476 $ 366 $ 7,751 $ 84 Commercial participations purchased $ 103 $ 103 $ 11 $ - $ - Commercial business loans $ 328 $ 596 $ 34 $ 534 $ 2 As part of the previously disclosed acquisition of First Federal Savings and Loan Association of Hammond (“First Federal”) which closed during the second quarter of 2014, the Bancorp acquired loans for which there was evidence of credit quality deterioration since origination and it was determined that it was probable that the Bancorp would be unable to collect all contractually required principal and interest payments. 1.9 880 The Bancorp’s age analysis of past due loans is summarized below: (Dollars in thousands) 30-59 Days Past 60-89 Days Past Greater Than 90 Total Past Due Current Total Loans Recorded June 30, 2015 Residential real estate, including home equity $ 4,501 $ 1,114 $ 1,539 $ 7,154 $ 175,384 $ 182,538 $ 131 Consumer loans 1 - - 1 477 478 - Commercial real estate, construction & land development, and other dwellings 543 421 537 1,501 228,963 230,464 - Commercial participations purchased - - 96 96 226 322 - Commercial business loans 212 149 178 539 65,744 66,283 - Government loans - - - - 26,903 26,903 - Total $ 5,257 $ 1,684 $ 2,350 $ 9,291 $ 497,697 $ 506,988 $ 131 December 31, 2014 Residential real estate, including home equity $ 4,405 $ 2,693 $ 2,579 $ 9,677 $ 179,852 $ 189,529 $ 941 Consumer loans - - - - 357 357 - Commercial real estate, construction & land development, and other dwellings 855 190 1,783 2,828 208,334 211,162 - Commercial participations purchased - - 103 103 2,186 2,289 - Commercial business loans 339 76 238 653 58,029 58,682 - Government loans - - - - 26,134 26,134 - Total $ 5,599 $ 2,959 $ 4,703 $ 13,261 $ 474,892 $ 488,153 $ 941 (Dollars in thousands) June 30, December 31, Residential real estate, including home equity $ 2,394 $ 2,443 Consumer loans - - Commercial real estate, construction & land development, and other dwellings 538 1,815 Commercial participations purchased 96 103 Commercial business loans 178 238 Government loans - - Total $ 3,206 $ 4,599 |