Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | Note 4 - Loans Receivable Loans receivable are summarized below: (Dollars in thousands) September 30, 2017 December 31, 2016 Loans secured by real estate: Residential real estate $ 171,846 $ 173,365 Home equity 35,308 32,614 Commercial real estate 203,388 195,438 Construction and land development 53,983 38,937 Multifamily 37,402 36,086 Total loans secured by real estate 501,926 476,440 Consumer 382 522 Commercial business 77,532 77,513 Government 29,830 29,529 Subtotal 609,671 584,004 Less: Net deferred loan origination fees (158 ) (162 ) Undisbursed loan funds (1,549 ) (192 ) Loans receivable $ 607,964 $ 583,650 Beginning Balance Charge-offs Recoveries Provisions Ending Balance The Bancorp's activity in the allowance for loan losses is summarized below for the three months ended September 30, 2017: Allowance for loan losses: Residential real estate $ 1,561 $ (10 ) $ 3 $ 17 $ 1,571 Home equity 76 (35 ) - 41 82 Commercial real estate 2,890 - - 28 2,918 Construction and land development 600 - - (30 ) 570 Multifamily 501 - - 40 541 Consumer 30 (29 ) 7 22 30 Commercial business 1,357 (120 ) 5 49 1,291 Government 58 - - (2 ) 56 Total $ 7,073 $ (194 ) $ 15 $ 165 $ 7,059 The Bancorp's activity in the allowance for loan losses is summarized below for the three months ended September 30, 2016: Allowance for loan losses: Residential real estate $ 1,485 $ (93 ) $ 1 $ 93 $ 1,486 Home equity 285 - - 4 289 Commercial real estate 3,099 - - 126 3,225 Construction and land development 761 - - (40 ) 721 Multifamily 756 - - 24 780 Consumer 37 (12 ) 1 25 51 Commercial business 846 - 8 43 897 Government 68 - - (13 ) 55 Total $ 7,337 $ (105 ) $ 10 $ 262 $ 7,504 The Bancorp's activity in the allowance for loan losses is summarized below for the nine months ended September 30, 2017: Allowance for loan losses: Residential real estate $ 2,111 $ (913 ) $ 3 $ 370 $ 1,571 Home equity 299 (60 ) - (157 ) 82 Commercial real estate 3,113 - - (195 ) 2,918 Construction and land development 617 - - (47 ) 570 Multifamily 572 - - (31 ) 541 Consumer 34 (59 ) 11 44 30 Commercial business 896 (365 ) 22 737 1,291 Government 56 - - - 56 Total $ 7,698 $ (1,397 ) $ 36 $ 722 $ 7,059 The Bancorp's activity in the allowance for loan losses is summarized below for the nine months ended September 30, 2016: Allowance for loan losses: Residential real estate $ 1,448 $ (305 ) $ 1 $ 342 $ 1,486 Home equity 263 - - 26 289 Commercial real estate 2,986 - - 239 3,225 Construction and land development 692 - - 29 721 Multifamily 758 - - 22 780 Consumer 38 (24 ) 5 32 51 Commercial business 698 - 28 171 897 Government 70 - - (15 ) 55 Total $ 6,953 $ (329 ) $ 34 $ 846 $ 7,504 Ending Balances (Dollars in thousands) Individually Collectively Loan Loans Purchased Loans The Bancorp's allowance for loan losses impairment evaluation and loan receivables are summarized below at September 30, 2017: Residential real estate $ 27 $ 1,544 $ 171,667 $ 495 $ 773 $ 170,399 Home equity - 82 35,357 - - 35,357 Commercial real estate 136 2,782 203,388 557 - 202,831 Construction and land development - 570 53,983 134 - 53,849 Multifamily - 541 37,402 - - 37,402 Consumer - 30 383 - - 383 Commercial business 562 729 75,954 749 - 75,205 Government - 56 29,830 - - 29,830 Total $ 725 $ 6,334 $ 607,964 $ 1,935 $ 773 $ 605,256 The Bancorp's allowance for loan losses impairment evaluation and loan receivables are summarized below at December 31, 2016: Residential real estate $ 879 $ 1,232 $ 173,262 $ 1,419 $ 956 $ 170,887 Home equity - 299 32,575 - - 32,575 Commercial real estate 3 3,110 195,438 322 - 195,116 Construction and land development - 617 38,937 134 - 38,803 Multifamily - 572 36,086 - - 36,086 Consumer - 34 524 - - 524 Commercial business 354 542 77,299 687 - 76,612 Government - 56 29,529 - - 29,529 Total $ 1,236 $ 6,462 $ 583,650 $ 2,561 $ 956 $ 580,132 The Bancorp's credit quality indicators are summarized below at September 30, 2017 and December 31, 2016: Credit Exposure - Credit Risk Portfolio By Creditworthiness Category September 30, 2017 (Dollars in thousands) 2 3 4 5 6 7 8 Loan Segment Moderate Above Acceptable Marginally Pass/monitor Special Substandard Residential real estate $ 444 $ 10,789 $ 93,622 $ 8,020 $ 51,256 $ 4,135 $ 3,401 Home equity 50 1,016 33,266 - 276 233 516 Commercial real estate - 2,433 80,119 74,764 38,816 6,699 557 Construction and land development 399 525 18,106 25,287 9,532 - 134 Multifamily - - 20,584 14,803 1,844 171 - Consumer 58 7 318 - - - - Commercial business 5,556 17,985 18,915 20,196 11,613 470 1,219 Government - 2,318 24,937 2,575 - - - Total $ 6,507 $ 35,073 $ 289,867 $ 145,645 $ 113,337 $ 11,708 $ 5,827 December 31, 2016 2 3 4 5 6 7 8 Loan Segment Moderate Above Acceptable Marginally Pass/monitor Special Substandard Residential real estate $ - $ 6,068 $ 94,394 $ 7,085 $ 57,644 $ 4,015 $ 4,056 Home equity 82 1,172 30,459 - 250 236 376 Commercial real estate 248 2,708 93,293 64,950 28,306 5,611 322 Construction and land development - 439 11,355 18,912 8,097 - 134 Multifamily - - 17,123 16,836 1,939 188 - Consumer 90 4 430 - - - - Commercial business 6,315 15,043 24,754 18,787 10,653 533 1,214 Government - 955 25,474 3,100 - - - Total $ 6,735 $ 26,389 $ 297,282 $ 129,670 $ 106,889 $ 10,583 $ 6,102 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 nine months 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 September 30, 2017 For the nine months ended September 30, 2017 (Dollars in thousands) Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized With no related allowance recorded: Residential real estate $ 1,208 $ 3,824 $ - $ 1,302 $ 48 Home equity - - - - - Commercial real estate 298 298 - 361 4 Construction and land development 134 134 - 134 - Multifamily - - - - - Commercial business 187 187 - 201 3 With an allowance recorded: Residential real estate 60 60 27 300 1 Home equity - - - - - Commercial real estate 259 259 136 139 - Construction and land development - - - - - Multifamily - - - - - Commercial business 562 562 562 481 4 Total: Residential real estate $ 1,268 $ 3,884 $ 27 $ 1,602 $ 49 Home equity $ - $ - $ - $ - $ - Commercial real estate $ 557 $ 557 $ 136 $ 500 $ 4 Construction & land development $ 134 $ 134 $ - $ 134 $ - Multifamily $ - $ - $ - $ - $ - Commercial business $ 749 $ 749 $ 562 $ 682 $ 7 As of December 31, 2016 For the nine months ended September 30, 2016 (Dollars in thousands) Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized With no related allowance recorded: Residential real estate $ 1,309 $ 3,293 $ - $ 2,900 $ 113 Home equity - - - - - Commercial real estate 304 304 - 1,346 - Construction and land development 134 134 - 134 - Multifamily - - - - - Commercial business 212 212 - 260 3 With an allowance recorded: Residential real estate 1,066 1,066 879 168 4 Home equity - - - - - Commercial real estate 18 18 3 107 5 Construction & land development - - - - - Multifamily - - - - - Commercial business 475 475 354 184 1 Total: Residential real estate $ 2,375 $ 4,359 $ 879 $ 3,068 $ 117 Home equity $ - $ - $ - $ - $ - Commercial real estate $ 322 $ 322 $ 3 $ 1,453 $ 5 Construction & land development $ 134 $ 134 $ - $ 134 $ - Multifamily $ - $ - $ - $ - $ - Commercial business $ 687 $ 687 $ 354 $ 444 $ 4 As part of the 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 September 30, 2017, total purchased credit impaired loans with unpaid principal balances totaled $2.7 million with a recorded investment of $773 thousand, compared to December 31, 2016, at 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 $388 thousand at September 30,2017, compared to December 31, 2016, at 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 $1.6 million with a recorded investment of $385 thousand at September 30, 2017, compared to December 31, 2016, at 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 Due 60-89 Days Past Due Greater Than 90 Days Past Due Total Past Due Current Total Loans Recorded Investments Greater than 90 Days Past Due and Accruing September 30, 2017 Residential real estate $ 3,957 $ 1,635 $ 3,046 $ 8,638 $ 163,029 $ 171,667 $ 380 Home equity 96 46 260 402 34,955 35,357 - Commercial real estate 98 732 557 1,387 202,001 203,388 - Construction and land development - - 134 134 53,849 53,983 - Multifamily 163 - - 163 37,239 37,402 - Consumer - - - - 383 383 - Commercial business 306 53 562 921 75,033 75,954 - Government - - - - 29,830 29,830 - Total $ 4,620 $ 2,466 $ 4,559 $ 11,645 $ 596,319 $ 607,964 $ 380 December 31, 2016 Residential real estate $ 3,640 $ 1,702 $ 3,804 $ 9,146 $ 164,116 $ 173,262 $ 436 Home equity 334 73 220 627 31,948 32,575 64 Commercial real estate 208 189 322 719 194,719 195,438 - Construction and land development - - 134 134 38,803 38,937 - Multifamily 188 - - 188 35,898 36,086 - Consumer - - - - 524 524 - 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) September December Residential real estate $ 3,307 $ 4,342 Home equity 516 179 Commercial real estate 557 322 Construction and land development 134 134 Multifamily - - Consumer - - Commercial business 695 628 Government - - Total $ 5,209 $ 5,605 |