Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | Note 4 - Loans Receivable Loans receivable are summarized below: (Dollars in thousands) March 31, 2017 December 31, 2016 Loans secured by real estate: Residential real estate, including home equity $ 209,505 $ 205,979 Commercial real estate, construction & land development, and other dwellings 274,541 270,092 Commercial participations purchased 409 369 Total loans secured by real estate 484,455 476,440 Consumer 479 522 Commercial business 80,250 77,513 Government 31,771 29,529 Subtotal 596,955 584,004 Less: Net deferred loan origination fees (162 ) (162 ) Undisbursed loan funds (693 ) (192 ) Loans receivable $ 596,100 $ 583,650 (Dollars in thousands) Residential Real Consumer 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 March 31, 2017: Allowance for loan losses: Beginning Balance $ 2,410 $ 34 $ 4,302 $ - $ 896 $ 56 $ 7,698 Charge-offs (858 ) (5 ) - - (245 ) - (1,108 ) Recoveries - 2 - - 8 - 10 Provisions 49 (3 ) 50 - 136 2 234 Ending Balance $ 1,601 $ 28 $ 4,352 $ - $ 795 $ 58 $ 6,834 The Bancorp's activity in the allowance for loan losses, by loan segment, is summarized below for the three months ended March 31, 2016: Allowance for loan losses: Beginning Balance $ 1,711 $ 38 $ 4,422 $ 14 $ 698 $ 70 $ 6,953 Charge-offs (49 ) (4 ) - - - - (53 ) Recoveries 1 3 - - 8 - 12 Provisions 68 7 179 (1 ) 41 2 296 Ending Balance $ 1,731 $ 44 $ 4,601 $ 13 $ 747 $ 72 $ 7,208 (Dollars in thousands) Residential Consumer Commercial Commercial Commercial Government Total The Bancorp's allowance for loan losses impairment evaluation and loan receivables are summarized below at March 31, 2017: Ending balance: individually evaluated for impairment $ - $ - $ 115 $ - $ 81 $ - $ 196 Ending balance: collectively evaluated for impairment $ 1,601 $ 28 $ 4,237 $ - $ 714 $ 58 $ 6,638 LOAN RECEIVABLES Ending balance $ 209,361 $ 481 $ 274,541 $ 409 $ 79,537 $ 31,771 $ 596,100 Ending balance: individually evaluated for impairment $ 544 $ - $ 615 $ 80 $ 384 $ - $ 1,623 Ending balance: purchased credit impaired individually evaluated for impairment $ 847 $ - $ - $ - $ - $ - $ 847 Ending balance: collectively evaluated for impairment $ 207,970 $ 481 $ 273,926 $ 329 $ 79,153 $ 31,771 $ 593,630 (Dollars in thousands) Residential Real Estate, Including Home Equity Consumer Commercial Real Estate, Construction & Land Development, and Other Dwellings Commercial Participations Purchased Commercial Business Government Total The Bancorp's allowance for loan losses impairment evaluation and loan receivables are summarized below at December 31, 2016: Ending balance: individually evaluated for impairment $ 879 $ - $ 3 $ - $ 354 $ - $ 1,236 Ending balance: collectively evaluated for impairment $ 1,531 $ 34 $ 4,299 $ - $ 542 $ 56 $ 6,462 LOAN RECEIVABLES Ending balance $ 205,837 $ 524 $ 270,092 $ 369 $ 77,299 $ 29,529 $ 583,650 Ending balance: individually evaluated for impairment $ 1,419 $ - $ 374 $ 82 $ 687 $ - $ 2,562 Ending balance: purchased credit impaired individually evaluated for impairment $ 956 $ - $ - $ - $ - $ - $ 956 Ending balance: collectively evaluated for impairment $ 203,462 $ 524 $ 269,718 $ 287 $ 76,612 $ 29,529 $ 580,132 The Bancorp's credit quality indicators are summarized below at March 31, 2017 and December 31, 2016: (Dollars in thousands) Corporate Credit Exposure - Credit Risk Portfolio By Creditworthiness Category Commercial Real Estate, Construction Commercial Participations Purchased Commercial Business Government Loan Grades 2017 2016 2017 2016 2017 2016 2017 2016 2 Moderate risk $ 242 $ 248 $ - $ - $ 6,923 $ 6,315 $ - $ - 3 Above average acceptable risk 2,838 3,147 - - 20,189 15,043 912 955 4 Acceptable risk 120,706 121,583 182 188 20,341 24,754 27,759 25,474 5 Marginally acceptable risk 102,827 100,615 131 83 18,470 18,787 3,100 3,100 6 Pass/monitor 41,582 38,326 16 16 11,714 10,653 - - 7 Special mention (watch) 5,731 5,799 - - 1,008 533 - - 8 Substandard 615 374 80 82 892 1,214 - - Total $ 274,541 $ 270,092 $ 409 $ 369 $ 79,537 $ 77,299 $ 31,771 $ 29,529 (Dollars in thousands) Consumer Credit Exposure - Credit Risk Profile Based On Payment Activity Residential Real Estate, Including Consumer 2017 2016 2017 2016 Performing $ 204,936 $ 200,816 $ 481 $ 524 Non-performing 4,425 5,021 - - Total $ 209,361 $ 205,837 $ 481 $ 524 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 theses 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 Above average acceptable risk Borrower generates sufficient cash flow to fund debt service and some working assets and/or capital expansion needs. Profitability and key balance sheet ratios are at or slightly above peers. Current trends are positive or stable. Earnings may be level or trending down slightly or be erratic; however, positive strengths are offsetting. Risk of default is reasonable but may warrant collateral protection. 4 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 peer. 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. 5 Marginally acceptable risk Borrower may exhibit excessive growth, declining earnings, strained cash flow, increasing leverage and/or weakening market position that indicate above average risk. Limited additional debt capacity, modest coverage, and average or below average asset quality, margins and market share. Interim losses and/or adverse trends may occur, but not to the level that would affect the Bank’s position. The potential for default is higher than normal but considered marginally acceptable based on prospects for improving financial performance and the strength of the collateral. 6 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. 7 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. 8 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. Performing loans are loans that are paying as agreed and are approximately less than ninety days past due on payments of interest and principal. During the first quarter of 2017, no loans were modified as a troubled debt restructuring. No troubled debt restructurings have subsequently defaulted during the periods presented. All of the loans classified as troubled debt restructurings are also considered impaired. The valuation basis for the Bancorp’s troubled debt restructurings is based on the present value of cash flows, unless consistent cash flows are not present, then the fair value of the collateral securing the loan is the basis for valuation. The Bancorp's individually evaluated impaired loans are summarized below: As of March 31, 2017 For the three months ended (Dollars in thousands) Recorded Unpaid Principal Related Average Interest With no related allowance recorded: Residential real estate, including home equity $ 1,391 $ 4,233 $ - $ 1,350 $ 11 Commercial real estate, construction & land development, and other dwellings 475 475 - 416 - Commercial participations purchased 80 80 - 81 1 Commercial business 206 206 - 209 1 With an allowance recorded: Residential real estate, including home equity - - - 533 - Commercial real estate, construction & land development, and other dwellings 140 140 115 79 - Commercial participations purchased - - - - - Commercial business 178 178 81 327 - Total: Residential real estate, including home equity $ 1,391 $ 4,233 $ - $ 1,883 $ 11 Commercial real estate, construction & land development, and other dwellings $ 615 $ 615 $ 115 $ 495 $ - Commercial participations purchased $ 80 $ 80 $ - $ 81 $ 1 Commercial business $ 384 $ 384 $ 81 $ 536 $ 1 As of December 31, 2016 For the three months ended (Dollars in thousands) Recorded Unpaid Principal Related Average Interest With no related allowance recorded: Residential real estate, including home equity $ 1,309 $ 3,293 $ - $ 2,610 $ 48 Commercial real estate, construction & land development, and other dwellings 356 356 - 2,604 - Commercial participations purchased 82 82 - - - Commercial business 212 212 - 83 1 With an allowance recorded: Residential real estate, including home equity 1,066 1,066 879 174 - Commercial real estate, construction & land development, and other dwellings 18 18 3 120 - Commercial participations purchased - - - 92 1 Commercial business 475 475 354 125 - Total: Residential real estate, including home equity $ 2,375 $ 4,359 $ 879 $ 2,784 $ 48 Commercial real estate, construction & land development, and other dwellings $ 374 $ 374 $ 3 $ 2,724 $ - Commercial participations purchased $ 82 $ 82 $ - $ 92 $ 1 Commercial business $ 687 $ 687 $ 354 $ 208 $ 1 As part of the previously disclosed acquisitions of First Federal Savings and Loan Association of Hammond (“First Federal”), which closed during the second quarter of 2014, and Liberty Savings Bank (“Liberty”), which closed during the third quarter of 2015, 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. At March 31, 2017, total purchased credit impaired loans with unpaid principal balances totaled $2.8 million with a recorded investment of $847 thousand, compared to December 31, 2016, which unpaid principal balances totaled $2.9 million with a recorded investment of $956 thousand. First Federal purchased credit impaired loans with unpaid principal balances totaled $1.1 million with a recorded investment of $415 thousand, compared to December 31, 2016, which unpaid principal balances totaled $1.2 million with a recorded investment of $507 thousand. Liberty purchased credit impaired loans with unpaid principal balances totaled $1.7 million with a recorded investment of $432 thousand compared to December 31, 2016, which unpaid principal balances totaled $1.7 million with a recorded investment of $449 thousand. 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 March 31, 2017 Residential real estate, including home equity $ 3,647 $ 1,213 $ 3,142 $ 8,002 $ 201,359 $ 209,361 $ 391 Consumer - - - - 481 481 - Commercial real estate, construction & land development, and other dwellings 111 480 692 1,283 273,258 274,541 94 Commercial participations purchased - - 80 80 329 409 - Commercial business 241 52 169 462 79,075 79,537 - Government - - - - 31,771 31,771 - Total $ 3,999 $ 1,745 $ 4,083 $ 9,827 $ 586,273 $ 596,100 $ 485 December 31, 2016 Residential real estate, including home equity $ 3,974 $ 1,775 $ 4,024 $ 9,773 $ 196,064 $ 205,837 $ 500 Consumer - - - - 524 524 - Commercial real estate, construction & land development, and other dwellings 396 189 374 959 269,133 270,092 - Commercial participations purchased - - 82 82 287 369 - Commercial business 171 217 466 854 76,445 77,299 - Government - - - - 29,529 29,529 - Total $ 4,541 $ 2,181 $ 4,946 $ 11,668 $ 571,982 $ 583,650 $ 500 The Bancorp's loans on nonaccrual status are summarized below: (Dollars in thousands) March 31, December 31, Residential real estate, including home equity $ 4,035 $ 4,521 Consumer - - Commercial real estate, construction & land development, and other dwellings 615 374 Commercial participations purchased 80 82 Commercial business 326 628 Government - - Total $ 5,056 $ 5,605 |