Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2016 | Apr. 21, 2016 | |
Entity Registrant Name | HMN FINANCIAL INC | |
Entity Central Index Key | 921,183 | |
Trading Symbol | hmnf | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Entity Common Stock, Shares Outstanding (in shares) | 4,486,299 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Consolidated Balance Sheets (Cu
Consolidated Balance Sheets (Current Period Unaudited) - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 |
Assets | ||
Cash and cash equivalents | $ 13,766,000 | $ 39,782,000 |
Mortgage-backed and related securities (amortized cost $1,938 and $2,237) | 1,984,000 | 2,283,000 |
Other marketable securities (amortized cost $104,016 and $110,092) | 103,844,000 | 109,691,000 |
105,828,000 | 111,974,000 | |
Loans held for sale | 4,467,000 | 3,779,000 |
Loans receivable, net | 490,260,000 | 463,185,000 |
Accrued interest receivable | 2,134,000 | 2,254,000 |
Real estate, net | 1,668,000 | 2,045,000 |
Federal Home Loan Bank stock, at cost | 770,000 | 691,000 |
Mortgage servicing rights, net | 1,456,000 | 1,499,000 |
Premises and equipment, net | 7,583,000 | 7,469,000 |
Core deposit intangible | 374,000 | 393,000 |
Prepaid expenses and other assets | 1,268,000 | 1,417,000 |
Deferred tax asset, net | 8,582,000 | 8,673,000 |
Total assets | 638,156,000 | 643,161,000 |
Liabilities and Stockholders’ Equity | ||
Deposits | 551,506,000 | 559,387,000 |
Other Borrowings | 9,000,000 | 9,000,000 |
Accrued interest payable | 230,000 | 242,000 |
Customer escrows | 1,558,000 | 830,000 |
Accrued expenses and other liabilities | 4,175,000 | 4,057,000 |
Total liabilities | $ 566,469,000 | $ 573,516,000 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Serial preferred stock | $ 0 | $ 0 |
Common stock | 91,000 | 91,000 |
Additional paid-in capital | 50,380,000 | 50,388,000 |
Retained earnings, subject to certain restrictions | 82,310,000 | 80,536,000 |
Accumulated other comprehensive loss | (76,000) | (214,000) |
Unearned employee stock ownership plan shares | (2,368,000) | (2,417,000) |
Treasury stock, at cost 4,642,363 and 4,645,769 shares | (58,650,000) | (58,739,000) |
Total stockholders’ equity | 71,687,000 | 69,645,000 |
Total liabilities and stockholders’ equity | $ 638,156,000 | $ 643,161,000 |
Consolidated Balance Sheets (C3
Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Mortgage-backed and related securities amortized cost | $ 1,938 | $ 2,237 |
Other marketable securities amortized cost | $ 104,016 | $ 110,092 |
Serial preferred stock, authorized (in shares) | 500,000 | 500,000 |
Serial preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Serial preferred stock, issued shares (in shares) | 0 | 0 |
Common stock, authorized (in shares) | 16,000,000 | 16,000,000 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, issued shares (in shares) | 9,128,662 | 9,128,662 |
Treasury stock, shares (in shares) | 4,642,363 | 4,645,769 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Interest income: | ||
Loans receivable | $ 6,094,000 | $ 4,354,000 |
Securities available for sale: | ||
Mortgage-backed and related | 20,000 | 28,000 |
Other marketable | 372,000 | 486,000 |
Cash equivalents | 38,000 | 15,000 |
Other | 1,000 | 1,000 |
Total interest income | 6,525,000 | 4,884,000 |
Interest expense: | ||
Deposits | 226,000 | 248,000 |
Other borrowings | 148,000 | 78,000 |
Total interest expense | 374,000 | 326,000 |
Net interest income | 6,151,000 | 4,558,000 |
Provision for losses | (732,000) | 0 |
Net interest income after provision for loan losses | 6,883,000 | 4,558,000 |
Non-interest income: | ||
Fees and service charges | 779,000 | 782,000 |
Loan servicing fees | 261,000 | 261,000 |
Gain on sales of loans | 487,000 | 285,000 |
Other | 228,000 | 268,000 |
Total non-interest income | 1,755,000 | 1,596,000 |
Compensation and benefits | 3,695,000 | 3,448,000 |
Gain on real estate owned | (349,000) | (112,000) |
Occupancy and equipment | 990,000 | 879,000 |
Data processing | 273,000 | 231,000 |
Professional services | 251,000 | 217,000 |
Other | 831,000 | 770,000 |
Total non-interest expense | 5,691,000 | 5,433,000 |
Income before income tax expense | 2,947,000 | 721,000 |
Income tax expense | 1,173,000 | 260,000 |
Net income | 1,774,000 | 461,000 |
Preferred stock dividends | 0 | (108,000) |
Net income available to common shareholders | 1,774,000 | 353,000 |
Other comprehensive income, net of tax | 138,000 | 395,000 |
Comprehensive income attributable to common shareholders | $ 1,912,000 | $ 748,000 |
Basic earnings per common share (in dollars per share) | $ 0.43 | $ 0.09 |
Diluted earnings per common share (in dollars per share) | $ 0.38 | $ 0.08 |
Consolidated Statement of Stock
Consolidated Statement of Stockholders' Equity (Unaudited) - 3 months ended Mar. 31, 2016 - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Unearned Employee Stock Ownership Plan Shares [Member] | Treasury Stock [Member] | Total |
Balance, December 31, 2015 at Dec. 31, 2015 | $ 91,000 | $ 50,388,000 | $ 80,536,000 | $ (214,000) | $ (2,417,000) | $ (58,739,000) | $ 69,645,000 |
Net income | $ 1,774,000 | 1,774,000 | |||||
Other comprehensive income, net of tax | $ 138,000 | 138,000 | |||||
Stock compensation expense | $ 20,000 | 20,000 | |||||
Restricted stock awards | (89,000) | $ 89,000 | 0 | ||||
Amortization of restricted stock awards | 49,000 | 49,000 | |||||
Earned employee stock ownership plan shares | 12,000 | $ 49,000 | 61,000 | ||||
Balance, March 31, 2016 at Mar. 31, 2016 | $ 91,000 | $ 50,380,000 | $ 82,310,000 | $ (76,000) | $ (2,368,000) | $ (58,650,000) | $ 71,687,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Core Deposits [Member] | ||
Adjustments to reconcile net income to cash provided by operating activities: | ||
Amortization of core deposit intangible | $ 19,000 | $ 0 |
Net income | 1,774,000 | 461,000 |
Provision for loan losses | (732,000) | 0 |
Depreciation | 195,000 | 161,000 |
Amortization of (discounts) premiums, net | (8,000) | 6,000 |
Amortization of deferred loan fees | (383,000) | (31,000) |
Amortization of core deposit intangible | 151,000 | 143,000 |
Amortization of other purchased loan fair value adjustments | (171,000) | 0 |
Amortization of mortgage servicing rights and servicing costs | 132,000 | 143,000 |
Capitalized mortgage servicing rights | (89,000) | (84,000) |
Gain on sales of real estate and premises | (349,000) | (112,000) |
Gain on sales of loans | (487,000) | (285,000) |
Proceeds from sale of loans held for sale | 16,494,000 | 12,061,000 |
Disbursements on loans held for sale | (12,303,000) | (12,027,000) |
Amortization of restricted stock awards | 49,000 | 67,000 |
Amortization of unearned ESOP shares | 49,000 | 48,000 |
Earned employee stock ownership shares priced above original cost | 12,000 | 16,000 |
Stock option compensation expense | 20,000 | 0 |
Decrease (increase) in accrued interest receivable | 120,000 | (228,000) |
(Decrease) increase in accrued interest payable | (12,000) | 72,000 |
Decrease in other assets | 205,000 | 50,000 |
Increase in other liabilities | 77,000 | 209,000 |
Other, net | 16,000 | 9,000 |
Net cash provided by operating activities | 4,628,000 | 536,000 |
Cash flows from investing activities: | ||
Principal collected on securities available for sale | 307,000 | 409,000 |
Proceeds collected on maturities of securities available for sale | 56,020,000 | 18,000,000 |
Purchases of securities available for sale | (49,968,000) | (34,070,000) |
Purchase of Federal Home Loan Bank stock | (79,000) | 0 |
Redemption of Federal Home Loan Bank stock | 0 | 86,000 |
Proceeds from sales of real estate | 1,305,000 | 221,000 |
Net (increase) decrease in loans receivable | (30,779,000) | 4,431,000 |
Purchases of premises and equipment | (309,000) | (99,000) |
Net cash used by investing activities | (23,503,000) | (11,022,000) |
Cash flows from financing activities: | ||
Decrease in deposits | (7,869,000) | (13,428,000) |
Redemption of preferred stock | 0 | (10,000,000) |
Dividends to preferred stockholders | 0 | (225,000) |
Proceeds from borrowings | 0 | 13,000,000 |
Repayment of borrowings | 0 | (3,000,000) |
Increase in customer escrows | 728,000 | 441,000 |
Net cash used by financing activities | (7,141,000) | (13,212,000) |
Decrease in cash and cash equivalents | (26,016,000) | (23,698,000) |
Cash and cash equivalents, beginning of period | 39,782,000 | 46,634,000 |
Cash and cash equivalents, end of period | 13,766,000 | 22,936,000 |
Supplemental cash flow disclosures: | ||
Cash paid for interest | 387,000 | 254,000 |
Cash paid for income taxes | 156,000 | 135,000 |
Supplemental noncash flow disclosures: | ||
Loans transferred to loans held for sale | 4,408,000 | 342,000 |
Transfer of loans to real estate | $ 591,000 | $ 0 |
Note 1 - HMN Financial, Inc.
Note 1 - HMN Financial, Inc. | 3 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | (1) HMN Financial, Inc. HMN Financial, Inc. (HMN or the Company) is a stock savings bank holding company that owns 100 percent of Home Federal Savings Bank (the Bank). The Bank has a community banking philosophy and operates retail banking and loan production facilities in Minnesota, Iowa, and Wisconsin. The Bank has two wholly owned subsidiaries, Osterud Insurance Agency, Inc. (OIA), which offers financial planning products and services, and HFSB Property Holdings, LLC (HPH), which is currently inactive, but has acted as an intermediary for the Bank in holding and operating certain foreclosed properties. The consolidated financial statements included herein are for HMN, the Bank, OIA and HPH. All significant intercompany accounts and transactions have been eliminated in consolidation. Certain amounts in the consolidated financial statements for the prior year have been reclassified to conform to the current year presentation. |
Note 2 - Basis of Preparation
Note 2 - Basis of Preparation | 3 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Basis of Accounting [Text Block] | (2) Basis of Preparation The accompanying unaudited consolidated financial statements were prepared in accordance with instructions for Form 10-Q and, therefore, do not include all disclosures necessary for a complete presentation of the consolidated balance sheets, consolidated statements of comprehensive income, consolidated statement of stockholders' equity and consolidated statements of cash flows in conformity with U.S. generally accepted accounting principles. However, all normal recurring adjustments which are, in the opinion of management, necessary for the fair presentation of the interim financial statements have been included. The results of operations for the three-month period ended March 31, 2016 are not necessarily indicative of the results which may be expected for the entire year. |
Note 3 - New Accounting Standar
Note 3 - New Accounting Standards | 3 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | (3) New Accounting Standards In January 2016, the FASB issued ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10) Recognition and Measurement of Financial Assets and Financial Liabilities. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) . Topic 842, Leases Topic 840, Leases In March 2016, the FASB issued ASU 2016-09, Compensation – Stock Compensation (Topic 718). |
Note 4 - Fair Value Measurement
Note 4 - Fair Value Measurements | 3 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | ( 4 ) Fair Value Measurements ASC 820, Fair Value Measurements , Level 1 Level 2 Level 3 The following table summarizes the assets of the Company for which fair values are determined on a recurring basis as of March 31, 2016 and December 31, 2015. Carrying value at March 31, 2016 (Dollars in thousands) Total Level 1 Level 2 Level 3 Securities available for sale $ 105,828 0 105,828 0 Mortgage loan commitments 93 0 93 0 Total $ 105,921 0 105,921 0 Carrying value at December 31, 2015 (Dollars in thousands) Total Level 1 Level 2 Level 3 Securities available for sale $ 111,974 0 111,974 0 Mortgage loan commitments 36 0 36 0 Total $ 112,010 0 112,010 0 There were no transfers between Levels 1, 2, or 3 during the three months ended March 31, 2016. The Company may also be required, from time to time, to measure certain other financial assets at fair value on a nonrecurring basis in accordance with generally accepted accounting principles. These adjustments to fair value usually result from the application of the lower-of-cost-or-market accounting or write-downs of individual assets. For assets measured at fair value on a nonrecurring basis that were still held at March 31, 2016 and December 31, 2015, the following table provides the level of valuation assumptions used to determine each adjustment and the carrying value of the related individual assets or portfolios at March 31, 2016 and December 31, 2015. Carrying value at March 31, 2016 (Dollars in thousands) Total Level 1 Level 2 Level 3 Three months ended March 31, 2016 total gains (losses) Loans held for sale $ 4,467 0 4,467 0 16 Mortgage servicing rights, net 1,456 0 1,456 0 0 Loans (1) 4,555 0 4,555 0 (65 ) Real estate, net (2) 1,668 0 1,668 0 (253 ) Total $ 12,146 0 12,146 0 (302 ) Carrying value at December 31, 2015 (Dollars in thousands) Total Level 1 Level 2 Level 3 Year ended December 31, 2015 total gains (losses) Loans held for sale $ 3,779 0 3,779 0 3 Mortgage servicing rights, net 1,499 0 1,499 0 0 Loans (1) 4,790 0 4,790 0 (373 ) Real estate, net (2) 2,045 0 2,045 0 (262 ) Total $ 12,113 0 12,113 0 (632 ) (1) Represents carrying value and related write-downs of loans for which adjustments are based on the appraised value of the collateral. The carrying value of loans fully charged-off is zero. (2) Represents the fair value and related losses of foreclosed real estate and other collateral owned that were measured at fair value subsequent to their initial classification as foreclosed assets. |
Note 5 - Fair Value of Financia
Note 5 - Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Financial Instruments Disclosure [Text Block] | ( 5 ) Fair Value of Financial Instruments Generally accepted accounting principles require interim reporting period disclosure about the fair value of financial instruments, including assets, liabilities and off-balance sheet items for which it is practicable to estimate fair value. The fair value hierarchy level for each asset and liability, as defined in note 5, have been included in the following table for March 31, 2016 and December 31, 2015. The fair value estimates are made based upon relevant market information, if available, and upon the characteristics of the financial instruments themselves. Because no market exists for a significant portion of the Company’s financial instruments, fair value estimates are based upon judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments and other factors. The estimated fair value of the Company’s financial instruments as of March 31, 2016 and December 31, 2015 are shown below. March 31, 2016 December 31, 2015 Fair value hierarchy Fair value hierarchy (Dollars in thousands) Carrying amount Estimated fair value Level 1 Level 2 Level 3 Contract amount Carrying amount Estimated fair value Level 1 Level 2 Level 3 Contract amount Financial assets: Cash and cash equivalents $ 13,766 13,766 13,766 39,782 39,782 39,782 Securities available for sale 105,828 105,828 105,828 111,974 111,974 111,974 Loans held for sale 4,467 4,467 4,467 3,779 3,779 3,779 Loans receivable, net 490,260 487,952 487,952 463,185 458,539 458,539 Federal Home Loan Bank stock 770 770 770 691 691 691 Accrued interest receivable 2,134 2,134 2,134 2,254 2,254 2,254 Financial liabilities: Deposits 551,506 551,206 551,206 559,387 558,731 558,731 Other borrowings 9,000 9,022 9,022 9,000 9,000 9,000 Accrued interest payable 230 230 230 242 242 242 Off-balance sheet financial instruments: Commitments to extend credit 93 93 199,870 36 36 165,949 Commitments to sell loans (73 ) (73 ) 11,546 (26 ) (26 ) 8,071 Cash and Cash Equivalents The carrying amount of cash and cash equivalents approximates their fair value. Securities Available for Sale The fair values of securities were based upon quoted market prices for identical or similar instruments in active markets. Loans Held for Sale The fair values of loans held for sale were based upon quoted market prices for loans with similar interest rates and terms to maturity. Loans Receivable , net The fair value of the loan portfolio, with the exception of the adjustable rate portfolio, was calculated by discounting the scheduled cash flows through the estimated maturity using anticipated prepayment speeds and using discount rates that reflect the credit and interest rate risk inherent in each loan portfolio. The fair value of the adjustable loan portfolio was estimated by grouping the loans with similar characteristics and comparing the characteristics of each group to the prices quoted for similar types of loans in the secondary market. Federal Home Loan Bank Stock The carrying amount of Federal Home Loan Bank (FHLB) stock approximates its fair value. Accrued Interest Receivable The carrying amount of accrued interest receivable approximates its fair value since it is short-term in nature and does not present unanticipated credit concerns. Deposits The fair value of demand deposits, savings accounts and certain money market account deposits is the amount payable on demand at the reporting date. The fair value of fixed maturity certificates of deposit is estimated using the rates currently offered for deposits of similar remaining maturities. The fair value estimate for deposits does not include the benefit that results from the low cost funding provided by the Company's existing deposits and long-term customer relationships compared to the cost of obtaining different sources of funding. This benefit is commonly referred to as the core deposit intangible. Other Borrowings The fair values of other borrowings with fixed maturities are estimated based on discounted cash flow analysis using as discount rates the interest rates charged by the FHLB for borrowings of similar remaining maturities. Accrued Interest Payable The carrying amount of accrued interest payable approximates its fair value since it is short-term in nature. Commitments to Extend Credit The fair values of commitments to extend credit are estimated using the fees normally charged to enter into similar agreements, taking into account the remaining terms of the agreements and the present creditworthiness of the counter parties. Commitments to Sell Loans The fair values of commitments to sell loans are estimated using the quoted market prices for loans with similar interest rates and terms to maturity. |
Note 6 - Other Comprehensive In
Note 6 - Other Comprehensive Income | 3 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Comprehensive Income (Loss) Note [Text Block] | ( 6 ) Other Comprehensive Income Other comprehensive income is defined as the change in equity during a period from transactions and other events from nonowner sources. Comprehensive income is the total of net income and other comprehensive income, which for the Company is comprised of unrealized gains and losses on securities available for sale. The components of other comprehensive income and the related tax effects were as follows: For the period ended March 31, (Dollars in thousands) 2016 2015 Securities available for sale: Before tax Tax effect Net of tax Before tax Tax effect Net of tax Net unrealized gains arising during the period $ 229 91 138 655 260 395 Other comprehensive income $ 229 91 138 655 260 395 |
Note 7 - Securities Available f
Note 7 - Securities Available for Sale | 3 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | ( 7 ) Securities Available For Sale The following table shows the gross unrealized losses and fair values for the securities available for sale portfolio, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at March 31, 2016 and December 31, 2015. Less Than Twelve Months Twelve Months or More Total (Dollars in thousands) # of Investments Fair Value Unrealized Losses # of Investments Fair Value Unrealized Losses Fair Value Unrealized Losses March 31, 2016 Collateralized mortgage Federal National Mortgage Association (FNMA) 1 $ 345 (3 ) 0 $ 0 0 $ 345 (3 ) Other 2 34 (7 ) 0 0 0 34 (7 ) Other marketable securities: U.S. Government agency obligations 2 9,996 (4 ) 0 0 0 9,996 (4 ) Municipal obligations 5 549 (3 ) 0 0 0 549 (3 ) Corporate preferred stock 0 0 0 1 350 (350 ) 350 (350 ) Total temporarily impaired securities 10 $ 10,924 (17 ) 1 $ 350 (350 ) $ 11,274 (367 ) Less Than Twelve Months Twelve Months or More Total (Dollars in thousands) # of Investments Fair Value Unrealized Losses # of Investments Fair Value Unrealized Losses Fair Value Unrealized Losses December 31, 2015 Collateralized mortgage obligations: Federal National Mortgage Association(FNMA) 1 $ 346 (1 ) 0 $ 0 0 $ 346 (1 ) Other 2 34 (8 ) 0 0 0 34 (8 ) Other marketable securities: U.S. Government agency obligations 9 44,878 (129 ) 0 0 0 44,878 (129 ) Municipal obligations 12 2,010 (7 ) 0 0 0 2,010 (7 ) Corporate obligations 1 334 (6 ) 0 0 0 334 (6 ) Corporate preferred stock 0 0 0 1 350 (350 ) 350 (350 ) Total temporarily impaired securities 25 $ 47,602 (151 ) 1 $ 350 (350 ) $ 47,952 (501 ) We review our investment portfolio on a quarterly basis for indications of impairment. This review includes analyzing the length of time and the extent to which the fair value has been lower than the cost, the market liquidity for the investment, the financial condition and near-term prospects of the issuer, including any specific events which may influence the operations of the issuer, and our intent and ability to hold the investment for a period of time sufficient to recover the temporary loss. The unrealized losses reported for corporate preferred stock over twelve months at March 31, 2016 relates to a single trust preferred security that was issued by the holding company of a small community bank. Typical of most trust preferred issuances, the issuer has the ability to defer interest payments for up to five years with interest payable on the deferred balance. In September 2014, the issuer paid all previously deferred interest that was due and all payments were current as of September 30, 2014. Since January 2015, the issuer has deferred its scheduled interest payment as allowed by the terms of the security agreement. The issuer’s subsidiary bank has incurred operating losses in the past due to increased provisions for loan losses but had a modest net income in 2015 and continued to meet the regulatory requirements to be considered “well capitalized” based on its most recent regulatory filing. Based on a review of the issuer, it was determined that the trust preferred security was not other-than-temporarily impaired at March 31, 2016. The Company does not intend to sell the trust preferred security and has the intent and ability to hold it for a period of time sufficient to recover the temporary loss. Management believes that the Company will receive all principal and interest payments contractually due on the securities and that the decrease in the market value is primarily due to a lack of liquidity in the market for trust preferred securities and the deferral of interest by the issuer. Management will continue to monitor the credit risk of the issuer and may be required to recognize other-than-temporary impairment charges on this security in future periods. A summary of securities available for sale at March 31, 2016 and December 31, 2015 is as follows: (Dollars in thousands) Amortized cost Gross unrealized gains Gross unrealized losses Fair value March 31, 2016 Mortgage-backed securities: Federal Home Loan Mortgage Corporation (FHLMC) $ 605 18 0 623 Federal National Mortgage Association (FNMA) 610 26 0 636 Collateralized mortgage obligations: FHLMC 682 12 (3 ) 691 Other 41 0 (7 ) 34 1,938 56 (10 ) 1,984 Other marketable securities: U.S. Government agency obligations 99,980 122 (4 ) 100,098 Municipal obligations 2,962 29 ( 3 ) 2,988 Corporate obligations 316 16 0 332 Corporate preferred stock 700 0 (350 ) 350 Corporate equity 58 18 0 76 104,016 185 (357 ) 103,844 $ 105,954 241 (367 ) 105,828 (Dollars in thousands) Amortized cost Gross unrealized gains Gross unrealized losses Fair value December 31, 2015 Mortgage-backed securities: Federal Home Loan Mortgage Corporation (FHLMC) $ 728 31 0 759 Federal National Mortgage Association (FNMA) 725 22 0 747 Collateralized mortgage obligations: FHLMC 742 2 (1 ) 743 Other 42 0 (8 ) 34 2,237 55 (9 ) 2,283 Other marketable securities: U.S. Government agency obligations 105,003 68 (129 ) 104,942 Municipal obligations 3,991 18 (7 ) 4,002 Corporate obligations 340 0 (6 ) 334 Corporate preferred stock 700 0 (350 ) 350 Corporate equity 58 5 0 63 110,092 91 (492 ) 109,691 $ 112,329 146 (501 ) 111,974 The following table indicates amortized cost and estimated fair value of securities available for sale at March 31, 2016 based upon contractual maturity adjusted for scheduled repayments of principal and projected prepayments of principal based upon current economic conditions and interest rates. (Dollars in thousands) Amortized Cost Fair Value Due less than one year $ 20,914 20,961 Due after one year through five years 83,849 84,005 Due after five years through ten years 402 405 Due after ten years 731 381 No stated maturity 58 76 Total $ 105,954 105,828 The allocation of mortgage-backed securities in the table above is based upon the anticipated future cash flow of the securities using estimated mortgage prepayment speeds. The allocation of other marketable securities that have call features is based on the anticipated cash flows to the call date if it is anticipated that the security will be called, or to the maturity date if it is not anticipated to be called. |
Note 8 - Loans Receivable, Net
Note 8 - Loans Receivable, Net | 3 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | ( 8 ) Loans Receivable, Net A summary of loans receivable at March 31, 2016 and December 31, 2015 is as follows: (Dollars in thousands) March 31, 2016 December 31, 2015 1-4 family $ 95,247 90,945 Commercial real estate: Real estate rental and leasing 145,224 125,376 Other 122,241 121,977 267,465 247,353 Consumer 66,782 64,415 Commercial business: Transportation industry 9,440 9,349 Other 60,551 60,757 69,991 70,106 Total loans 499,485 472,819 Less: Unamortized discounts 18 16 Net deferred loan costs (156 ) (91 ) Allowance for loan losses 9,363 9,709 Total loans receivable, net $ 490,260 463,185 |
Note 9 - Allowance for Loan Los
Note 9 - Allowance for Loan Losses and Credit Quality Information | 3 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Allowance For Loan Losses And Credit Quality Information [Text Block] | ( 9 ) Allowance for Loan Losses and Credit Quality Information The allowance for loan losses is summarized as follows: (Dollars in thousands) 1-4 Family Commercial Real Estate Consumer Commercial Business Total Balance, December 31, 2015 $ 990 6,078 1,200 1,441 9,709 Provision for losses 60 (823 ) 184 (153 ) (732 ) Charge-offs 0 0 (7 ) 0 (7 ) Recoveries 0 182 18 193 393 Balance, March 31, 2016 $ 1,050 5,437 1,395 1,481 9,363 Balance, December 31, 2014 $ 1,096 5,024 1,009 1,203 8,332 Provision for losses (5 ) 34 23 (52 ) 0 Charge-offs 0 0 (18 ) 0 (18 ) Recoveries 0 64 8 32 104 Balance, March 31, 2015 $ 1,091 5,122 1,022 1,183 8,418 Allocated to: FAS 114 reserves $ 223 296 370 120 1,009 General reserves 767 5,782 830 1,321 8,700 Balance, December 31, 2015 $ 990 6,078 1,200 1,441 9,709 Allocated to: FAS 114 reserves $ 225 254 389 116 984 General reserves 825 5,183 1,006 1,365 8,379 Balance, March 31, 2016 $ 1,050 5,437 1,395 1,481 9,363 Loans receivable at December 31, 2015: Individually reviewed for impairment $ 2,203 2,204 977 415 5,799 Collectively reviewed for impairment 88,742 245,149 63,438 69,691 467,020 Ending balance $ 90,945 247,353 64,415 70,106 472,819 Loans receivable at March 31, 2016: Individually reviewed for impairment $ 1,774 2,326 1,041 397 5,538 Collectively reviewed for impairment 93,473 265,139 65,741 69,594 493,947 Ending balance $ 95,247 267,465 66,782 69,991 499,485 The following table summarizes the amount of classified and unclassified loans at March 31, 2016 and December 31, 2015: March 31, 2016 Classified Unclassified (Dollars in thousands) Special Mention Substandard Doubtful Loss Total Total Total Loans 1-4 family $ 379 2,718 53 0 3,150 92,097 95,247 Commercial real estate: Real estate rental and leasing 704 6,529 0 0 7,233 137,991 145,224 Other 630 9,509 0 0 10,139 112,102 122,241 Consumer 0 714 51 276 1,041 65,741 66,782 Commercial business: Transportation industry 1,154 3,085 0 0 4,239 5,201 9,440 Other 837 1,303 0 0 2,140 58,411 60,551 $ 3,704 23,858 104 276 27,942 471,543 499,485 December 31, 2015 Classified Unclassified (Dollars in thousands) Special Mention Substandard Doubtful Loss Total Total Total Loans 1-4 family $ 189 2,889 55 0 3,133 87,812 90,945 Commercial real estate: Real estate rental and leasing 1,910 4,827 0 0 6,737 118,639 125,376 Other 917 9,473 0 0 10,390 111,587 121,977 Consumer 0 639 52 286 977 63,438 64,415 Commercial business: Transportation industry 4,082 18 0 0 4,100 5,249 9,349 Other 841 1,515 0 0 2,356 58,401 60,757 $ 7,939 19,361 107 286 27,693 445,126 472,819 Classified loans represent special mention, substandard (performing and non-performing), and non-performing loans categorized as doubtful and loss. Loans classified as special mention are loans that have potential weaknesses that, if left uncorrected, may result in deterioration of the repayment prospects for the asset or in the Bank’s credit position at some future date. Loans classified as substandard are loans that are generally inadequately protected by the current net worth and paying capacity of the obligor, or by the collateral pledged, if any. Loans classified as substandard have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. Substandard loans are characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected. Loans classified as doubtful have the weaknesses of those classified as substandard, with additional characteristics that make collection in full on the basis of currently existing facts, conditions and values questionable, and there is a high possibility of loss. A loan classified as loss is essentially uncollateralized and/or considered uncollectible and of such little value that continuance as an asset on the balance sheet may not be warranted. Loans classified as substandard or doubtful require the Bank to perform an analysis of the individual loan and charge off any loans, or portion thereof, that are deemed uncollectible. The aging of past due loans at March 31, 2016 and December 31, 2015 are summarized as follows: (Dollars in thousands) 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due Total Past Due Current Loans Total Loans Loans 90 Days or More Past Due and Still Accruing March 31, 2016 1-4 family $ 461 240 247 948 94,299 95,247 0 Commercial real estate: 0 Real estate rental and leasing 0 0 0 0 145,224 145,224 0 Other 92 0 185 277 121,964 122,241 0 Consumer 302 120 111 533 66,249 66,782 0 Commercial business: Transportation industry 16 0 0 16 9,424 9,440 0 Other 41 0 0 41 60,510 60,551 0 $ 912 360 543 1,815 497,670 499,485 0 December 31, 2015 1-4 family $ 490 130 799 1,419 89,526 90,945 0 Commercial real estate: Real estate rental and leasing 0 0 0 0 125,376 125,376 0 Other 0 289 0 289 121,688 121,977 0 Consumer 330 262 119 711 63,704 64,415 0 Commercial business: Transportation industry 0 0 0 0 9,349 9,349 0 Other 45 0 0 45 60,712 60,757 0 $ 865 681 918 2,464 470,355 472,819 0 Impaired loans include loans that are non-performing (non-accruing) and loans that have been modified in a troubled debt restructuring (TDR). The following table summarizes impaired loans and related allowances as of March 31, 2016 and December 31, 2015: March 31, 2016 December 31, 2015 (Dollars in thousands) Recorded Investment Unpaid Principal Balance Related Allowance Recorded Investment Unpaid Principal Balance Related Allowance Loans with no related allowance recorded: 1-4 family $ 695 695 0 1,251 1,251 0 Commercial real estate: Real estate rental and leasing 43 178 0 44 184 0 Other 26 1,682 0 25 1,706 0 Consumer 502 503 0 475 476 0 Commercial business: Other 0 66 0 0 79 0 Loans with an allowance recorded: 1-4 family 1,079 1,079 225 952 952 223 Commercial real estate: Real estate rental and leasing 0 0 0 0 0 0 Other 2,257 2,257 254 2,135 2,135 296 Consumer 539 556 389 502 519 370 Commercial business: Other 397 949 116 415 967 120 Total: 1-4 family 1,774 1,774 225 2,203 2,203 223 Commercial real estate: Real estate rental and leasing 43 178 0 44 184 0 Other 2,283 3,939 254 2,160 3,841 296 Consumer 1,041 1,059 389 977 995 370 Commercial business: Other 397 1,015 116 415 1,046 120 $ 5,538 7,965 984 5,799 8,269 1,009 The following table summarizes the average recorded investment and interest income recognized on impaired loans during the three months ended March 31, 2016 and 2015: March 31, 2016 March 31, 2015 (Dollars in thousands) Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Loans with no related allowance recorded: 1-4 family $ 973 6 744 3 Commercial real estate: Real estate rental and leasing 44 1 48 2 Other 26 161 7,304 100 Consumer 489 1 367 0 Commercial business: Other 0 0 68 0 Loans with an allowance recorded: 1-4 family 1,016 3 1,170 22 Commercial real estate: Real estate rental and leasing 0 0 8 0 Other 2,196 7 1,837 7 Consumer 521 3 337 2 Commercial business: Other 406 4 467 5 Total: 1-4 family 1,989 9 1,914 25 Commercial real estate: Real estate rental and leasing 44 1 56 2 Other 2,222 168 9,141 107 Consumer 1,010 4 704 2 Commercial business: Other 406 4 535 5 $ 5,671 186 12,350 141 At March 31, 2016 and December 31, 2015, non-accruing loans totaled $3.9 million and $4.2 million, respectively, for which the related allowance for loan losses was $0.7 million and $0.7 million, respectively. All of the interest income recognized for non-accruing loans was recognized using the cash basis method of income recognition. Non-accruing loans for which no specific allowance has been recorded, because management determined that the value of the collateral was sufficient to repay the loan, totaled $0.8 million and $1.4 million, at March 31, 2016 and December 31, 2015, respectively. Non-accrual loans also include certain loans that have had terms modified in a TDR. The non-accrual loans at March 31, 2016 and December 31, 2015 are summarized as follows: (Dollars in thousands) March 31, 2016 December 31, 2015 1-4 family $ 1,229 $ 1,655 Commercial real estate: Real estate rental and leasing 44 44 Other 1,778 1,650 Consumer 809 786 Commercial business: Other 45 46 $ 3,905 $ 4,181 At March 31, 2016 and December 31, 2015, there were loans included in loans receivable, net, with terms that had been modified in a TDR totaling $2.6 million and $2.5 million, respectively. For the loans that were restructured in the first quarter of 2016, $31,000 were classified but performing and $75,000 were non-performing at March 31, 2016. There was one $9,000 loan that was restructured in the first quarter of 2015 that was classified but performing at March 31, 2015. The following table summarizes troubled debt restructurings at March 31, 2016 and December 31, 2015: March 31, 2016 December, 31, 2015 (Dollars in thousands) Accruing Non-Accrual Total Accruing Non-Accrual Total 1-4 Family $ 544 98 642 547 100 647 Commercial real estate 504 211 715 511 214 725 Consumer 233 577 810 191 541 732 Commercial business 352 45 397 369 46 415 $ 1,633 931 2,564 1,618 901 2,519 As of March 31, 2016, the Bank had commitments to lend an additional $1.1 million to a borrower who has TDR and non-accrual loans. These additional funds are for the construction of 1-4 family homes with a maximum loan-to-value ratio of 75%. These loans are secured by the home under construction. At December 31, 2015, there were commitments to lend additional funds of $1.5 million to this same borrower. TDR concessions can include reduction of interest rates, extension of maturity dates, forgiveness of principal and/or interest due, or acceptance of real estate or other assets in full or partial satisfaction of the debt. Loan modifications are not reported as TDRs after 12 months if the loan was modified at a market rate of interest for comparable risk loans, and the loan is performing in accordance with the terms of the restructured agreement for the entire 12-month period. All loans classified as TDRs are considered to be impaired. When a loan is modified in a TDR, there may be a direct, material impact on the loans within the consolidated balance sheets, as principal balances may be partially forgiven. The financial effects of TDRs are presented in the following table and represent the difference between the outstanding recorded balance pre-modification and post-modification, for the three-months ended March 31, 2016 and March 31, 2015. Three Months Ended March 31, 2016 Three Months Ended March 31, 2015 (Dollars in thousands) Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Troubled debt restructurings: Consumer 6 $ 106 107 1 $ 9 $ 9 There were no loans that were restructured within the 12 months preceding March 31, 2016 and March 31, 2015 that defaulted during the three months ended March 31, 2016 and March 31, 2015. The Company considers a loan to have defaulted when it becomes 90 or more days past due under the modified terms, when it is placed in non-accrual status, when it becomes other real estate owned, or when it becomes non-compliant with some other material requirement of the modification agreement. Loans that were non-accrual prior to modification remain on non-accrual status for at least six months following modification. Non-accrual TDR loans that have performed according to the modified terms for six months may be returned to accrual status. Loans that were accruing prior to modification remain on accrual status after the modification as long as the loan continues to perform under the new terms. TDRs are reviewed for impairment following the same methodology as other impaired loans. For loans that are collateral-dependent, the value of the collateral is reviewed and additional reserves may be added as needed. Loans that are not collateral-dependent may have additional reserves established if deemed necessary. The reserves for TDRs were $0.5 million, or 5.3%, of the total $9.4 million in loan loss reserves at March 31, 2016 and $0.5 million, or 5.2%, of the total $9.7 million in loan loss reserves at December 31, 2015. The following is additional information with respect to loans acquired through the Kasson State Bank acquisition: (Dollars in thousands) Contractual Principal Receivable Accretable Difference Net Carrying Amount Purchased performing loans: Balance at December 31, 2015 $ 18,539 (459 ) 18,080 Change due to payments/refinances (2,597 ) 71 (2,526 ) Transferred to foreclosed assets 0 0 0 Change due to loan charge-off (2 ) 0 (2 ) Balance at March 31, 2016 $ 15,940 (388 ) 15,552 (Dollars in thousands) Contractual Principal Receivable Non- Accretable Difference Net Carrying Amount Purchased credit impaired loans: Balance at December 31, 2015 $ 555 (162 ) 393 Change due to payments/refinances (142 ) 100 (42 ) Transferred to foreclosed assets 0 0 0 Change due to loan charge-off 0 0 0 Balance at March 31, 2016 $ 413 (62 ) 351 As a result of the Kasson State Bank acquisition, the Company has loans for which there was at acquisition evidence of deterioration of credit quality since origination and for which it was probable at acquisition that all contractually required payments would not be collected. The carrying amount of those loans as of March 31, 2016 was $0.4 million. No provision for loan losses was recognized during the period ended March 31, 2016 related to acquired loans as there was no significant change to the credit quality of those loans. |
Note 10 - Intangible Assets
Note 10 - Intangible Assets | 3 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Intangible Assets Disclosure [Text Block] | (1 0 ) Intangible Assets The Company’s intangible assets consist of core deposit intangibles and mortgage servicing rights. A summary of mortgage servicing activity is as follows: (Dollars in thousands) Three Months ended March 31, 2016 Twelve Months ended December 31, 2015 Three Months ended March 31, 2015 Balance, beginning of period $ 1,499 1,507 1,507 Originations 89 547 84 Amortization (132 ) (555 ) (143 ) Balance, end of period $ 1,456 1,499 1,448 Fair value of mortgage servicing rights $ 2,427 2,590 2,508 All of the loans sold where the Company continues to service the loans are serviced for FNMA under the individual loan sale program. The following is a summary of the risk characteristics of the loans being serviced for FNMA at March 31, 2016. Weighted Weighted Loan Average Average Principal Interest Remaining Number (Dollars in thousands) Balance Rate Term (months) of Loans Original term 30 year fixed rate $ 218,770 4.20 % 301 1,853 Original term 15 year fixed rate 107,390 3.21 138 1,190 Adjustable rate 58 4.38 302 2 The gross carrying amount of intangible assets and the associated accumulated amortization at March 31, 2016 and 2015 is presented in the following table. Amortization expense for intangible assets was $151,000 and $143,000 for the three months ended March 31, 2016 and 2015, respectively. March 31, 2016 Gross Unamortized Carrying Accumulated Intangible (Dollars in thousands) Amount Amortization Assets Mortgage servicing rights $ 3,749 (2,293 ) 1,456 Core deposit intangible 420 (46 ) 374 Total $ 4,169 (2,339 ) 1,830 March 31, 2015 Gross Unamortized Carrying Accumulated Intangible (Dollars in thousands) Amount Amortization Assets Mortgage servicing rights $ 3,587 (2,139 ) 1,448 Total $ 3,587 (2,139 ) 1,448 The following table indicates the estimated future amortization expense for intangible assets: (Dollars in thousands) Mortgage Servicing Rights Core Deposit Intangible Total Intangible Assets Year ending December 31, 2016 $ 333 56 389 2017 369 74 443 2018 279 74 353 2019 220 74 294 2020 131 74 205 Thereafter 124 22 146 Total $ 1,456 374 1,830 Projections of amortization are based on existing asset balances and the existing interest rate environment as of March 31, 2016. The Company’s actual experience may be significantly different depending upon changes in mortgage interest rates and other market conditions. |
Note 11 - Earnings Per Common S
Note 11 - Earnings Per Common Share | 3 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | (1 1 ) Earnings per Common Share The following table reconciles the weighted average shares outstanding and the earnings available to common shareholders used for basic and diluted earnings per common share: Three months ended March 31, (Dollars in thousands, except per share data) 2016 2015 Weighted average number of common shares outstanding used in basic earnings per common share calculation 4,166,003 4,096,985 Net dilutive effect of: Restricted stock awards, options and warrants 514,245 574,665 Weighted average number of shares outstanding adjusted for effect of dilutive securities 4,680,248 4,671,650 Income available to common shareholders $ 1,774 353 Basic earnings per common share $ 0.43 0.09 Diluted earnings per common share $ 0.38 0.08 |
Note 12 - Regulatory Capital an
Note 12 - Regulatory Capital and Oversight | 3 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Regulatory Capital Requirements under Banking Regulations [Text Block] | (1 2 ) Regulatory Capital and Oversight Effective January 1, 2015 the capital requirements of the Bank were changed to implement the regulatory requirements of the Basel III capital reforms. The Basel III requirements, among other things, (i) apply a strengthened set of capital requirements to the Bank (the Company is exempt, pursuant to the Small Bank Holding Company Policy Statement (Policy Statement) described below), including requirements relating to common equity as a component of core capital, (ii) implement a “capital conservation buffer” against risk and a higher minimum tier 1 capital requirement, and (iii) revise the rules for calculating risk-weighted assets for purposes of such requirements. The rules made corresponding revisions to the prompt corrective action framework and include new capital ratios and buffer requirements which will be phased in incrementally, with full implementation scheduled for January 1, 2019. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company's financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of its assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. The Federal Reserve Bank amended its Policy Statement, to exempt small bank holding companies from the above capital requirements, by raising the asset size threshold for determining applicability from $500 million to $1 billion. The Policy Statement was also expanded to include savings and loan holding companies that meet the Policy Statement’s qualitative requirements for exemption. The Company met the qualitative exemption requirements, and therefore, is exempt from the above capital requirements. Quantitative measures established by regulations to ensure capital adequacy require the Bank to maintain minimum amounts and ratios (set forth in the following table) of Common Equity Tier 1 capital to risk weighted assets (as defined in the regulations), Tier 1 capital to adjusted total assets (as defined in the regulations), Tier 1 capital to risk weighted assets (as defined in the regulations), and total capital to risk weighted assets. The Bank’s average total assets for the first quarter of 2016 were $635.7 million, its adjusted total assets were $632.4 million, and its risk-weighted assets were $535.6 million. The following table presents the Bank’s capital amounts and ratios at March 31, 2016 for actual capital, required capital and excess capital, including ratios in order to qualify as being well capitalized under the revised Prompt Corrective Actions regulations. Actual Required to be Adequately Capitalized Excess Capital To Be Well Capitalized Under Prompt Corrective Action Provisions (1 ) (Dollars in thousands) Amount Percent of Assets (2 ) Amount Percent of Assets (2 ) Amount Percent of Assets (2 ) Amount Percent of Assets (2 ) Bank stockholder’s equity $ 76,672 Plus: Net unrealized loss on certain securities available for sale 76 Less: Goodwill and other intangibles 224 Disallowed servicing and tax assets 3,016 Common equity tier I capital 73,508 Common equity tier I capital ratio 13.73 % $ 24,101 4.50 % $ 49,407 9.23 % $ 34,812 6.50 % Tier I capital 73,508 Tier I capital leverage ratio 11.62 % $ 25,297 4.00 % $ 48,211 7.62 % $ 31,622 5.00 % Tier I risk-based capital ratio 13.73 % $ 32,134 6.00 % $ 41,374 7.73 % $ 42,845 8.00 % Plus: Allowable allowance for loan losses 6,743 Risk-based capital $ 80,251 Total risk-based capital ratio 14.98 % $ 42,845 8.00 % $ 37,406 6.98 % $ 53,557 10.00 % (1) Under the final rules, revised requirements will be phased in commencing January 1, 2015, as described above. (2) Based upon the Bank’s adjusted total assets for the purpose of the Tier I or core capital ratios and risk-weighted assets for the purpose of the risk-based capital ratios. Beginning in 2016, the Bank must maintain a capital conservation buffer composed of common equity tier 1 capital above its minimum risk-based capital requirements in order to avoid limitations on capital distributions, including dividend payments and certain discretionary bonus payments to executive officers. For 2016, the capital conservation buffer is 0.625%. The buffer amount will increase incrementally each year until 2019 when the entire 2.50% capital conservation buffer will be fully phased in. Management believes that, as of March 31, 2016, the Bank’s capital ratios were in excess of those quantitative capital ratio standards set forth under the current prompt corrective action regulations, including the capital conservation buffer described above. However, there can be no assurance that the Bank will continue to maintain such status in the future. The Office of the Comptroller of the Currency has extensive discretion in its supervisory and enforcement activities, and can adjust the requirement to be “well-capitalized” in the future. |
Note 13 - Stockholders' Equity
Note 13 - Stockholders' Equity | 3 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | (1 3 ) Stockholders’ Equity The Company's certificate of incorporation authorizes the issuance of up to 500,000 shares of preferred stock, and on December 23, 2008, the Company completed the sale of 26,000 shares of Fixed Rate Cumulative Perpetual Preferred Stock, Series A (the “Preferred Stock”) to the U.S. Department of the Treasury (Treasury). The Preferred Stock had a liquidation value of $1,000 per share and a related warrant was also issued to purchase 833,333 shares of HMN common stock at an exercise price of $4.68 per share (the Warrant). The transaction was part of the Treasury’s Capital Purchase Program under the Emergency Economic Stabilization Act of 2008. On February 17, 2015, the Company redeemed the final 10,000 shares of outstanding Preferred Stock. On May 21, 2015, the Treasury sold the Warrant at an exercise price of $4.68 to three unaffiliated third party investors for an aggregate purchase price of $5.7 million. Two of the investors received a warrant to purchase 277,777.67 shares and one investor received a warrant to purchase 277,777.66 shares. All of the warrants were still outstanding as of March 31, 2016 and may be exercised at any time prior to their expiration date of December 23, 2018. The Company received no proceeds from this transaction and it had no effect on the Company’s capital, financial condition or results of operations. |
Note 14 - Other Borrowings
Note 14 - Other Borrowings | 3 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | (1 4 ) Other Borrowings On December 15, 2014, the Company entered into a Loan Agreement with an unrelated third party, providing for a term loan of up to $10.0 million that was evidenced by a promissory note (the Note) with an interest rate of 6.50% per annum. The principal balance of the loan is payable in consecutive equal annual installments of $1.0 million on each anniversary of the date of the Loan Agreement, commencing on December 15, 2015, with the balance due on December 15, 2021. Provided that no default or event of default has occurred and is continuing, the Company may, at its option, elect to defer payment of one installment of principal on the Note otherwise due prior to the maturity date, in which event such installment will become due and payable on the maturity date. The Company may voluntarily prepay the Note in whole or in part without penalty. The outstanding loan balance was $9.0 million at March 31, 2016 and December 31, 2015. |
Note 15 - Commitments and Conti
Note 15 - Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | (1 5 ) Commitments and Contingencies The Bank issues standby letters of credit which guarantee the performance of customers to third parties. The standby letters of credit issued and available at March 31, 2016 were approximately $3.2 million, expire over the next 34 months, and are collateralized primarily with commercial real estate mortgages. Since the conditions under which the Bank is required to fund the standby letters of credit may not materialize, the cash requirements are expected to be less than the total outstanding commitments . |
Note 16 - Business Segments
Note 16 - Business Segments | 3 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | (1 6 ) Business Segments The Bank has been identified as a reportable operating segment in accordance with the provisions of ASC 280. HMN did not meet the quantitative thresholds for determining reportable segments and, therefore, is included in the “Other” category. The Company evaluates performance and allocates resources based on the segment’s net income, return on average assets and equity. Each corporation is managed separately with its own officers and board of directors, some of whom may overlap between the corporations. The following table sets forth certain information about the reconciliations of reported profit and assets for each of the Company’s reportable segments. (Dollars in thousands) Home Federal Savings Bank Other Eliminations Consolidated Total At or for the quarter ended March 31, 2016: Interest income - external customers $ 6,525 0 0 6,525 Non-interest income - external customers 1,755 0 0 1,755 Intersegment non-interest income 53 1,969 (2,022 ) 0 Interest expense 226 148 0 374 Non-interest expense 5,561 183 (53 ) 5,691 Income tax expense (benefit) 1,309 (136 ) 0 1,173 Net income 1,969 1,774 (1,969 ) 1,774 Total assets 637,104 80,868 (79,816 ) 638,156 At or for the quarter ended March 31, 201 5 : Interest income - external customers $ 4,884 0 0 4,884 Non-interest income - external customers 1,596 0 0 1,596 Intersegment non-interest income 51 591 (642 ) 0 Interest expense 248 78 0 326 Non-interest expense 5,305 179 (51 ) 5,433 Income tax expense (benefit) 387 (127 ) 0 260 Net income 591 461 (591 ) 461 Total assets 564,427 76,760 (75,700 ) 565,487 |
Note 4 - Fair Value Measureme23
Note 4 - Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Notes Tables | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | Carrying value at March 31, 2016 (Dollars in thousands) Total Level 1 Level 2 Level 3 Securities available for sale $ 105,828 0 105,828 0 Mortgage loan commitments 93 0 93 0 Total $ 105,921 0 105,921 0 Carrying value at December 31, 2015 (Dollars in thousands) Total Level 1 Level 2 Level 3 Securities available for sale $ 111,974 0 111,974 0 Mortgage loan commitments 36 0 36 0 Total $ 112,010 0 112,010 0 |
Fair Value Measurements, Nonrecurring [Table Text Block] | Carrying value at March 31, 2016 (Dollars in thousands) Total Level 1 Level 2 Level 3 Three months ended March 31, 2016 total gains (losses) Loans held for sale $ 4,467 0 4,467 0 16 Mortgage servicing rights, net 1,456 0 1,456 0 0 Loans (1) 4,555 0 4,555 0 (65 ) Real estate, net (2) 1,668 0 1,668 0 (253 ) Total $ 12,146 0 12,146 0 (302 ) Carrying value at December 31, 2015 (Dollars in thousands) Total Level 1 Level 2 Level 3 Year ended December 31, 2015 total gains (losses) Loans held for sale $ 3,779 0 3,779 0 3 Mortgage servicing rights, net 1,499 0 1,499 0 0 Loans (1) 4,790 0 4,790 0 (373 ) Real estate, net (2) 2,045 0 2,045 0 (262 ) Total $ 12,113 0 12,113 0 (632 ) |
Note 5 - Fair Value of Financ24
Note 5 - Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Notes Tables | |
Fair Value, by Balance Sheet Grouping [Table Text Block] | March 31, 2016 December 31, 2015 Fair value hierarchy Fair value hierarchy (Dollars in thousands) Carrying amount Estimated fair value Level 1 Level 2 Level 3 Contract amount Carrying amount Estimated fair value Level 1 Level 2 Level 3 Contract amount Financial assets: Cash and cash equivalents $ 13,766 13,766 13,766 39,782 39,782 39,782 Securities available for sale 105,828 105,828 105,828 111,974 111,974 111,974 Loans held for sale 4,467 4,467 4,467 3,779 3,779 3,779 Loans receivable, net 490,260 487,952 487,952 463,185 458,539 458,539 Federal Home Loan Bank stock 770 770 770 691 691 691 Accrued interest receivable 2,134 2,134 2,134 2,254 2,254 2,254 Financial liabilities: Deposits 551,506 551,206 551,206 559,387 558,731 558,731 Other borrowings 9,000 9,022 9,022 9,000 9,000 9,000 Accrued interest payable 230 230 230 242 242 242 Off-balance sheet financial instruments: Commitments to extend credit 93 93 199,870 36 36 165,949 Commitments to sell loans (73 ) (73 ) 11,546 (26 ) (26 ) 8,071 |
Note 6 - Other Comprehensive 25
Note 6 - Other Comprehensive Income (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Notes Tables | |
Comprehensive Income (Loss) [Table Text Block] | For the period ended March 31, (Dollars in thousands) 2016 2015 Securities available for sale: Before tax Tax effect Net of tax Before tax Tax effect Net of tax Net unrealized gains arising during the period $ 229 91 138 655 260 395 Other comprehensive income $ 229 91 138 655 260 395 |
Note 7 - Securities Available26
Note 7 - Securities Available for Sale (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Notes Tables | |
Schedule of Unrealized Loss on Investments [Table Text Block] | Less Than Twelve Months Twelve Months or More Total (Dollars in thousands) # of Investments Fair Value Unrealized Losses # of Investments Fair Value Unrealized Losses Fair Value Unrealized Losses March 31, 2016 Collateralized mortgage Federal National Mortgage Association (FNMA) 1 $ 345 (3 ) 0 $ 0 0 $ 345 (3 ) Other 2 34 (7 ) 0 0 0 34 (7 ) Other marketable securities: U.S. Government agency obligations 2 9,996 (4 ) 0 0 0 9,996 (4 ) Municipal obligations 5 549 (3 ) 0 0 0 549 (3 ) Corporate preferred stock 0 0 0 1 350 (350 ) 350 (350 ) Total temporarily impaired securities 10 $ 10,924 (17 ) 1 $ 350 (350 ) $ 11,274 (367 ) Less Than Twelve Months Twelve Months or More Total (Dollars in thousands) # of Investments Fair Value Unrealized Losses # of Investments Fair Value Unrealized Losses Fair Value Unrealized Losses December 31, 2015 Collateralized mortgage obligations: Federal National Mortgage Association(FNMA) 1 $ 346 (1 ) 0 $ 0 0 $ 346 (1 ) Other 2 34 (8 ) 0 0 0 34 (8 ) Other marketable securities: U.S. Government agency obligations 9 44,878 (129 ) 0 0 0 44,878 (129 ) Municipal obligations 12 2,010 (7 ) 0 0 0 2,010 (7 ) Corporate obligations 1 334 (6 ) 0 0 0 334 (6 ) Corporate preferred stock 0 0 0 1 350 (350 ) 350 (350 ) Total temporarily impaired securities 25 $ 47,602 (151 ) 1 $ 350 (350 ) $ 47,952 (501 ) |
Available-for-sale Securities [Table Text Block] | (Dollars in thousands) Amortized cost Gross unrealized gains Gross unrealized losses Fair value March 31, 2016 Mortgage-backed securities: Federal Home Loan Mortgage Corporation (FHLMC) $ 605 18 0 623 Federal National Mortgage Association (FNMA) 610 26 0 636 Collateralized mortgage obligations: FHLMC 682 12 (3 ) 691 Other 41 0 (7 ) 34 1,938 56 (10 ) 1,984 Other marketable securities: U.S. Government agency obligations 99,980 122 (4 ) 100,098 Municipal obligations 2,962 29 ( 3 ) 2,988 Corporate obligations 316 16 0 332 Corporate preferred stock 700 0 (350 ) 350 Corporate equity 58 18 0 76 104,016 185 (357 ) 103,844 $ 105,954 241 (367 ) 105,828 (Dollars in thousands) Amortized cost Gross unrealized gains Gross unrealized losses Fair value December 31, 2015 Mortgage-backed securities: Federal Home Loan Mortgage Corporation (FHLMC) $ 728 31 0 759 Federal National Mortgage Association (FNMA) 725 22 0 747 Collateralized mortgage obligations: FHLMC 742 2 (1 ) 743 Other 42 0 (8 ) 34 2,237 55 (9 ) 2,283 Other marketable securities: U.S. Government agency obligations 105,003 68 (129 ) 104,942 Municipal obligations 3,991 18 (7 ) 4,002 Corporate obligations 340 0 (6 ) 334 Corporate preferred stock 700 0 (350 ) 350 Corporate equity 58 5 0 63 110,092 91 (492 ) 109,691 $ 112,329 146 (501 ) 111,974 |
Contractual Obligation, Fiscal Year Maturity Schedule [Table Text Block] | (Dollars in thousands) Amortized Cost Fair Value Due less than one year $ 20,914 20,961 Due after one year through five years 83,849 84,005 Due after five years through ten years 402 405 Due after ten years 731 381 No stated maturity 58 76 Total $ 105,954 105,828 |
Note 8 - Loans Receivable, Net
Note 8 - Loans Receivable, Net (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Notes Tables | |
Summary of Loans Receivable [Table Text Block] | (Dollars in thousands) March 31, 2016 December 31, 2015 1-4 family $ 95,247 90,945 Commercial real estate: Real estate rental and leasing 145,224 125,376 Other 122,241 121,977 267,465 247,353 Consumer 66,782 64,415 Commercial business: Transportation industry 9,440 9,349 Other 60,551 60,757 69,991 70,106 Total loans 499,485 472,819 Less: Unamortized discounts 18 16 Net deferred loan costs (156 ) (91 ) Allowance for loan losses 9,363 9,709 Total loans receivable, net $ 490,260 463,185 |
Note 9 - Allowance for Loan L28
Note 9 - Allowance for Loan Losses and Credit Quality Information (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Notes Tables | |
Allowance for Credit Losses on Financing Receivables [Table Text Block] | (Dollars in thousands) 1-4 Family Commercial Real Estate Consumer Commercial Business Total Balance, December 31, 2015 $ 990 6,078 1,200 1,441 9,709 Provision for losses 60 (823 ) 184 (153 ) (732 ) Charge-offs 0 0 (7 ) 0 (7 ) Recoveries 0 182 18 193 393 Balance, March 31, 2016 $ 1,050 5,437 1,395 1,481 9,363 Balance, December 31, 2014 $ 1,096 5,024 1,009 1,203 8,332 Provision for losses (5 ) 34 23 (52 ) 0 Charge-offs 0 0 (18 ) 0 (18 ) Recoveries 0 64 8 32 104 Balance, March 31, 2015 $ 1,091 5,122 1,022 1,183 8,418 Allocated to: FAS 114 reserves $ 223 296 370 120 1,009 General reserves 767 5,782 830 1,321 8,700 Balance, December 31, 2015 $ 990 6,078 1,200 1,441 9,709 Allocated to: FAS 114 reserves $ 225 254 389 116 984 General reserves 825 5,183 1,006 1,365 8,379 Balance, March 31, 2016 $ 1,050 5,437 1,395 1,481 9,363 Loans receivable at December 31, 2015: Individually reviewed for impairment $ 2,203 2,204 977 415 5,799 Collectively reviewed for impairment 88,742 245,149 63,438 69,691 467,020 Ending balance $ 90,945 247,353 64,415 70,106 472,819 Loans receivable at March 31, 2016: Individually reviewed for impairment $ 1,774 2,326 1,041 397 5,538 Collectively reviewed for impairment 93,473 265,139 65,741 69,594 493,947 Ending balance $ 95,247 267,465 66,782 69,991 499,485 |
Financing Receivable Credit Quality Indicators [Table Text Block] | March 31, 2016 Classified Unclassified (Dollars in thousands) Special Mention Substandard Doubtful Loss Total Total Total Loans 1-4 family $ 379 2,718 53 0 3,150 92,097 95,247 Commercial real estate: Real estate rental and leasing 704 6,529 0 0 7,233 137,991 145,224 Other 630 9,509 0 0 10,139 112,102 122,241 Consumer 0 714 51 276 1,041 65,741 66,782 Commercial business: Transportation industry 1,154 3,085 0 0 4,239 5,201 9,440 Other 837 1,303 0 0 2,140 58,411 60,551 $ 3,704 23,858 104 276 27,942 471,543 499,485 December 31, 2015 Classified Unclassified (Dollars in thousands) Special Mention Substandard Doubtful Loss Total Total Total Loans 1-4 family $ 189 2,889 55 0 3,133 87,812 90,945 Commercial real estate: Real estate rental and leasing 1,910 4,827 0 0 6,737 118,639 125,376 Other 917 9,473 0 0 10,390 111,587 121,977 Consumer 0 639 52 286 977 63,438 64,415 Commercial business: Transportation industry 4,082 18 0 0 4,100 5,249 9,349 Other 841 1,515 0 0 2,356 58,401 60,757 $ 7,939 19,361 107 286 27,693 445,126 472,819 |
Past Due Financing Receivables [Table Text Block] | (Dollars in thousands) 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due Total Past Due Current Loans Total Loans Loans 90 Days or More Past Due and Still Accruing March 31, 2016 1-4 family $ 461 240 247 948 94,299 95,247 0 Commercial real estate: 0 Real estate rental and leasing 0 0 0 0 145,224 145,224 0 Other 92 0 185 277 121,964 122,241 0 Consumer 302 120 111 533 66,249 66,782 0 Commercial business: Transportation industry 16 0 0 16 9,424 9,440 0 Other 41 0 0 41 60,510 60,551 0 $ 912 360 543 1,815 497,670 499,485 0 December 31, 2015 1-4 family $ 490 130 799 1,419 89,526 90,945 0 Commercial real estate: Real estate rental and leasing 0 0 0 0 125,376 125,376 0 Other 0 289 0 289 121,688 121,977 0 Consumer 330 262 119 711 63,704 64,415 0 Commercial business: Transportation industry 0 0 0 0 9,349 9,349 0 Other 45 0 0 45 60,712 60,757 0 $ 865 681 918 2,464 470,355 472,819 0 |
Impaired Financing Receivables [Table Text Block] | March 31, 2016 December 31, 2015 (Dollars in thousands) Recorded Investment Unpaid Principal Balance Related Allowance Recorded Investment Unpaid Principal Balance Related Allowance Loans with no related allowance recorded: 1-4 family $ 695 695 0 1,251 1,251 0 Commercial real estate: Real estate rental and leasing 43 178 0 44 184 0 Other 26 1,682 0 25 1,706 0 Consumer 502 503 0 475 476 0 Commercial business: Other 0 66 0 0 79 0 Loans with an allowance recorded: 1-4 family 1,079 1,079 225 952 952 223 Commercial real estate: Real estate rental and leasing 0 0 0 0 0 0 Other 2,257 2,257 254 2,135 2,135 296 Consumer 539 556 389 502 519 370 Commercial business: Other 397 949 116 415 967 120 Total: 1-4 family 1,774 1,774 225 2,203 2,203 223 Commercial real estate: Real estate rental and leasing 43 178 0 44 184 0 Other 2,283 3,939 254 2,160 3,841 296 Consumer 1,041 1,059 389 977 995 370 Commercial business: Other 397 1,015 116 415 1,046 120 $ 5,538 7,965 984 5,799 8,269 1,009 March 31, 2016 March 31, 2015 (Dollars in thousands) Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Loans with no related allowance recorded: 1-4 family $ 973 6 744 3 Commercial real estate: Real estate rental and leasing 44 1 48 2 Other 26 161 7,304 100 Consumer 489 1 367 0 Commercial business: Other 0 0 68 0 Loans with an allowance recorded: 1-4 family 1,016 3 1,170 22 Commercial real estate: Real estate rental and leasing 0 0 8 0 Other 2,196 7 1,837 7 Consumer 521 3 337 2 Commercial business: Other 406 4 467 5 Total: 1-4 family 1,989 9 1,914 25 Commercial real estate: Real estate rental and leasing 44 1 56 2 Other 2,222 168 9,141 107 Consumer 1,010 4 704 2 Commercial business: Other 406 4 535 5 $ 5,671 186 12,350 141 |
Schedule of Financing Receivables, Non Accrual Status [Table Text Block] | (Dollars in thousands) March 31, 2016 December 31, 2015 1-4 family $ 1,229 $ 1,655 Commercial real estate: Real estate rental and leasing 44 44 Other 1,778 1,650 Consumer 809 786 Commercial business: Other 45 46 $ 3,905 $ 4,181 |
Troubled Debt Restructurings on Financing Receivables [Table Text Block] | March 31, 2016 December, 31, 2015 (Dollars in thousands) Accruing Non-Accrual Total Accruing Non-Accrual Total 1-4 Family $ 544 98 642 547 100 647 Commercial real estate 504 211 715 511 214 725 Consumer 233 577 810 191 541 732 Commercial business 352 45 397 369 46 415 $ 1,633 931 2,564 1,618 901 2,519 |
Financial Effects of Troubled Debt Restructurings and Difference Between Outstanding Recorded Balance Pre Modification and Post Modification [Table Text Block] | Three Months Ended March 31, 2016 Three Months Ended March 31, 2015 (Dollars in thousands) Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Troubled debt restructurings: Consumer 6 $ 106 107 1 $ 9 $ 9 |
Business Combination, Acquired Receivables [Table Text Block] | (Dollars in thousands) Contractual Principal Receivable Accretable Difference Net Carrying Amount Purchased performing loans: Balance at December 31, 2015 $ 18,539 (459 ) 18,080 Change due to payments/refinances (2,597 ) 71 (2,526 ) Transferred to foreclosed assets 0 0 0 Change due to loan charge-off (2 ) 0 (2 ) Balance at March 31, 2016 $ 15,940 (388 ) 15,552 (Dollars in thousands) Contractual Principal Receivable Non- Accretable Difference Net Carrying Amount Purchased credit impaired loans: Balance at December 31, 2015 $ 555 (162 ) 393 Change due to payments/refinances (142 ) 100 (42 ) Transferred to foreclosed assets 0 0 0 Change due to loan charge-off 0 0 0 Balance at March 31, 2016 $ 413 (62 ) 351 |
Note 10 - Intangible Assets (Ta
Note 10 - Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Notes Tables | |
Servicing Liability at Amortized Cost [Table Text Block] | (Dollars in thousands) Three Months ended March 31, 2016 Twelve Months ended December 31, 2015 Three Months ended March 31, 2015 Balance, beginning of period $ 1,499 1,507 1,507 Originations 89 547 84 Amortization (132 ) (555 ) (143 ) Balance, end of period $ 1,456 1,499 1,448 Fair value of mortgage servicing rights $ 2,427 2,590 2,508 |
Summary of Risk Characteristics of Loans Being Serviced [Table Text Block] | Weighted Weighted Loan Average Average Principal Interest Remaining Number (Dollars in thousands) Balance Rate Term (months) of Loans Original term 30 year fixed rate $ 218,770 4.20 % 301 1,853 Original term 15 year fixed rate 107,390 3.21 138 1,190 Adjustable rate 58 4.38 302 2 |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | March 31, 2016 Gross Unamortized Carrying Accumulated Intangible (Dollars in thousands) Amount Amortization Assets Mortgage servicing rights $ 3,749 (2,293 ) 1,456 Core deposit intangible 420 (46 ) 374 Total $ 4,169 (2,339 ) 1,830 March 31, 2015 Gross Unamortized Carrying Accumulated Intangible (Dollars in thousands) Amount Amortization Assets Mortgage servicing rights $ 3,587 (2,139 ) 1,448 Total $ 3,587 (2,139 ) 1,448 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | (Dollars in thousands) Mortgage Servicing Rights Core Deposit Intangible Total Intangible Assets Year ending December 31, 2016 $ 333 56 389 2017 369 74 443 2018 279 74 353 2019 220 74 294 2020 131 74 205 Thereafter 124 22 146 Total $ 1,456 374 1,830 |
Note 11 - Earnings Per Common30
Note 11 - Earnings Per Common Share (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three months ended March 31, (Dollars in thousands, except per share data) 2016 2015 Weighted average number of common shares outstanding used in basic earnings per common share calculation 4,166,003 4,096,985 Net dilutive effect of: Restricted stock awards, options and warrants 514,245 574,665 Weighted average number of shares outstanding adjusted for effect of dilutive securities 4,680,248 4,671,650 Income available to common shareholders $ 1,774 353 Basic earnings per common share $ 0.43 0.09 Diluted earnings per common share $ 0.38 0.08 |
Note 12 - Regulatory Capital 31
Note 12 - Regulatory Capital and Oversight (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Notes Tables | |
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations [Table Text Block] | Actual Required to be Adequately Capitalized Excess Capital To Be Well Capitalized Under Prompt Corrective Action Provisions (1 ) (Dollars in thousands) Amount Percent of Assets (2 ) Amount Percent of Assets (2 ) Amount Percent of Assets (2 ) Amount Percent of Assets (2 ) Bank stockholder’s equity $ 76,672 Plus: Net unrealized loss on certain securities available for sale 76 Less: Goodwill and other intangibles 224 Disallowed servicing and tax assets 3,016 Common equity tier I capital 73,508 Common equity tier I capital ratio 13.73 % $ 24,101 4.50 % $ 49,407 9.23 % $ 34,812 6.50 % Tier I capital 73,508 Tier I capital leverage ratio 11.62 % $ 25,297 4.00 % $ 48,211 7.62 % $ 31,622 5.00 % Tier I risk-based capital ratio 13.73 % $ 32,134 6.00 % $ 41,374 7.73 % $ 42,845 8.00 % Plus: Allowable allowance for loan losses 6,743 Risk-based capital $ 80,251 Total risk-based capital ratio 14.98 % $ 42,845 8.00 % $ 37,406 6.98 % $ 53,557 10.00 % |
Note 16 - Business Segments (Ta
Note 16 - Business Segments (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | (Dollars in thousands) Home Federal Savings Bank Other Eliminations Consolidated Total At or for the quarter ended March 31, 2016: Interest income - external customers $ 6,525 0 0 6,525 Non-interest income - external customers 1,755 0 0 1,755 Intersegment non-interest income 53 1,969 (2,022 ) 0 Interest expense 226 148 0 374 Non-interest expense 5,561 183 (53 ) 5,691 Income tax expense (benefit) 1,309 (136 ) 0 1,173 Net income 1,969 1,774 (1,969 ) 1,774 Total assets 637,104 80,868 (79,816 ) 638,156 At or for the quarter ended March 31, 201 5 : Interest income - external customers $ 4,884 0 0 4,884 Non-interest income - external customers 1,596 0 0 1,596 Intersegment non-interest income 51 591 (642 ) 0 Interest expense 248 78 0 326 Non-interest expense 5,305 179 (51 ) 5,433 Income tax expense (benefit) 387 (127 ) 0 260 Net income 591 461 (591 ) 461 Total assets 564,427 76,760 (75,700 ) 565,487 |
Note 1 - HMN Financial, Inc. (D
Note 1 - HMN Financial, Inc. (Details Textual) | 3 Months Ended |
Mar. 31, 2016 | |
Percentage Of Ownership In Subsidiaries | 100.00% |
Number Of Wholly Owned Subsidiaries | 2 |
Note 4 - Fair Value Measureme34
Note 4 - Fair Value Measurements (Details Textual) - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 |
Fully Charged Off [Member] | ||
Loans and Leases Receivable, Net Amount | $ 0 | |
Loans and Leases Receivable, Net Amount | $ 490,260,000 | $ 463,185,000 |
Note 4 - Fair Value Measureme35
Note 4 - Fair Value Measurements - Fair Value, Assets and Liabilities Measured on Recurring basis (Details) - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Total | $ 0 | $ 0 |
Mortgage loan commitments | 0 | 0 |
Total | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Total | 105,828,000 | 111,974,000 |
Mortgage loan commitments | 93,000 | 36,000 |
Total | 105,921,000 | 112,010,000 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Total | 0 | 0 |
Mortgage loan commitments | 0 | 0 |
Total | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | ||
Total | 105,828,000 | 111,974,000 |
Mortgage loan commitments | 93,000 | 36,000 |
Total | 105,921,000 | 112,010,000 |
Fair Value, Inputs, Level 2 [Member] | ||
Total | 105,828,000 | 111,974,000 |
Total | $ 105,828,000 | $ 111,974,000 |
Note 4 - Fair Value Measureme36
Note 4 - Fair Value Measurements - Assets Measured at Fair Value on Nonrecurring Basis (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2016 | Dec. 31, 2015 | ||
Loans Held for Sale [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Asset fair value | $ 0 | $ 0 | |
Loans Held for Sale [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Asset fair value | 4,467,000 | 3,779,000 | |
Loans Held for Sale [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Asset fair value | 0 | 0 | |
Loans Held for Sale [Member] | |||
Asset fair value | 4,467,000 | 3,779,000 | |
Fair value gain (loss) | 16,000 | 3,000 | |
Mortgage Servicing Rights [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Asset fair value | 0 | 0 | |
Mortgage Servicing Rights [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Asset fair value | 1,456,000 | 1,499,000 | |
Mortgage Servicing Rights [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Asset fair value | 0 | 0 | |
Mortgage Servicing Rights [Member] | |||
Asset fair value | 1,456,000 | 1,499,000 | |
Fair value gain (loss) | 0 | 0 | |
Loans Receivable [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Asset fair value | [1] | 0 | 0 |
Loans Receivable [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Asset fair value | [1] | 4,555,000 | 4,790,000 |
Loans Receivable [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Asset fair value | [1] | 0 | 0 |
Loans Receivable [Member] | |||
Asset fair value | [1] | 4,555,000 | 4,790,000 |
Fair value gain (loss) | [1] | (65,000) | (373,000) |
Real Estate Net [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Asset fair value | [2] | 0 | 0 |
Real Estate Net [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Asset fair value | [2] | 1,668,000 | 2,045,000 |
Real Estate Net [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Asset fair value | [2] | 0 | 0 |
Real Estate Net [Member] | |||
Asset fair value | [2] | 1,668,000 | 2,045,000 |
Fair value gain (loss) | [2] | (253,000) | (262,000) |
Fair Value, Inputs, Level 1 [Member] | |||
Asset fair value | 0 | 0 | |
Fair Value, Inputs, Level 2 [Member] | |||
Asset fair value | 12,146,000 | 12,113,000 | |
Fair Value, Inputs, Level 3 [Member] | |||
Asset fair value | 0 | 0 | |
Asset fair value | 12,146,000 | 12,113,000 | |
Fair value gain (loss) | $ (302,000) | $ (632,000) | |
[1] | Represents carrying value and related write-downs of loans for which adjustments are based on the appraised value of the collateral. The carrying value of loans fully charged-off is zero. | ||
[2] | Represents the fair value and related losses of foreclosed real estate and other collateral owned that were measured at fair value subsequent to their initial classification as foreclosed assets. |
Note 5 - Fair Value of Financ37
Note 5 - Fair Value of Financial Instruments - Estimated Fair Value of Company's Financial Instruments (Details) - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Dec. 15, 2014 |
Carrying Amount [Member] | |||||
Cash and cash equivalents | $ 13,766,000 | $ 39,782,000 | |||
Securities available for sale | 105,828,000 | 111,974,000 | |||
Loans held for sale | 4,467,000 | 3,779,000 | |||
Loans receivable, net | 490,260,000 | 463,185,000 | |||
Federal Home Loan Bank stock, at cost | 770,000 | 691,000 | |||
Accrued interest receivable | 2,134,000 | 2,254,000 | |||
Accrued interest receivable | 2,134,000 | 2,254,000 | |||
Deposits | 551,506,000 | 559,387,000 | |||
Other borrowings | 9,000,000 | 9,000,000 | |||
Accrued interest payable | 230,000 | 242,000 | |||
Accrued interest payable | 230,000 | 242,000 | |||
Commitments to extend credit | 93,000 | 36,000 | |||
Commitments to extend credit | 93,000 | 36,000 | |||
Commitments to sell loans | (73,000) | (26,000) | |||
Commitments to sell loans | (73,000) | (26,000) | |||
Estimate of Fair Value Measurement [Member] | |||||
Cash and cash equivalents | 13,766,000 | 39,782,000 | |||
Securities available for sale | 105,828,000 | 111,974,000 | |||
Loans held for sale | 4,467,000 | 3,779,000 | |||
Loans receivable, net | 487,952,000 | 458,539,000 | |||
Federal Home Loan Bank stock | 770,000 | 691,000 | |||
Accrued interest receivable | 2,134,000 | 2,254,000 | |||
Accrued interest receivable | 2,134,000 | 2,254,000 | |||
Deposits | 551,206,000 | 558,731,000 | |||
Other borrowings | 9,022,000 | 9,000,000 | |||
Accrued interest payable | 230,000 | 242,000 | |||
Accrued interest payable | 230,000 | 242,000 | |||
Commitments to extend credit | 93,000 | 36,000 | |||
Commitments to extend credit | 93,000 | 36,000 | |||
Commitments to sell loans | (73,000) | (26,000) | |||
Commitments to sell loans | (73,000) | (26,000) | |||
Contract Amount [Member] | |||||
Commitments to extend credit | 199,870,000 | 165,949,000 | |||
Commitments to extend credit | 199,870,000 | 165,949,000 | |||
Commitments to sell loans | 11,546,000 | 8,071,000 | |||
Commitments to sell loans | 11,546,000 | 8,071,000 | |||
Fair Value, Inputs, Level 1 [Member] | |||||
Cash and cash equivalents | 13,766,000 | 39,782,000 | |||
Fair Value, Inputs, Level 2 [Member] | |||||
Securities available for sale | 105,828,000 | 111,974,000 | |||
Loans held for sale | 4,467,000 | 3,779,000 | |||
Loans receivable, net | 487,952,000 | 458,539,000 | |||
Federal Home Loan Bank stock | 770,000 | 691,000 | |||
Accrued interest receivable | 2,134,000 | 2,254,000 | |||
Accrued interest receivable | 2,134,000 | 2,254,000 | |||
Deposits | 551,206,000 | 558,731,000 | |||
Other borrowings | 9,022,000 | ||||
Accrued interest payable | 230,000 | 242,000 | |||
Accrued interest payable | 230,000 | 242,000 | |||
Cash and cash equivalents | 13,766,000 | 39,782,000 | $ 22,936,000 | $ 46,634,000 | |
Securities available for sale | 105,828,000 | 111,974,000 | |||
Loans receivable, net | 490,260,000 | 463,185,000 | |||
Federal Home Loan Bank stock, at cost | 770,000 | 691,000 | |||
Accrued interest receivable | 2,134,000 | 2,254,000 | |||
Accrued interest receivable | 2,134,000 | 2,254,000 | |||
Deposits | 551,506,000 | 559,387,000 | |||
Other borrowings | 9,000,000 | 9,000,000 | $ 10,000,000 | ||
Accrued interest payable | 230,000 | 242,000 | |||
Accrued interest payable | $ 230,000 | $ 242,000 |
Note 6 - Other Comprehensive 38
Note 6 - Other Comprehensive Income - Components of Other Comprehensive Income (Loss) and Related Tax Effects (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Net unrealized gains arising during the period | $ 229,000 | $ 655,000 |
Net unrealized gains arising during the period | 91,000 | 260,000 |
Net unrealized gains arising during the period | 138,000 | 395,000 |
Other comprehensive income | 229,000 | 655,000 |
Other comprehensive income | 91,000 | 260,000 |
Other comprehensive income | $ 138,000 | $ 395,000 |
Note 7 - Securities Available39
Note 7 - Securities Available for Sale (Details Textual) | 3 Months Ended |
Mar. 31, 2016 | |
Defer Interest Payments Number Of Period | 5 years |
Note 7 - Securities Available40
Note 7 - Securities Available for Sale - Securities in a Continuous Unrealized Loss Position (Details) | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) |
Collateralized Mortgage Backed Securities [Member] | Federal National Mortgage Association Certificates and Obligations (FNMA) [Member] | ||
Number of investments, less than twelve months | 1 | |
Fair value, less than twelve months | $ 346,000 | |
Unrealized losses, less than twelve months | $ (1,000) | |
Number of investments, twelve months or more | 0 | |
Fair value, twelve months or more | $ 0 | |
Unrealized losses, twelve months or more | 0 | |
Fair value | 346,000 | |
Unrealized losses | (1,000) | |
Unrealized losses, twelve months or more | 0 | |
Unrealized losses | $ (1,000) | |
Collateralized Mortgage Backed Securities [Member] | Other Long-term Investments [Member] | ||
Number of investments, less than twelve months | 2 | 2 |
Fair value, less than twelve months | $ 34,000 | $ 34,000 |
Unrealized losses, less than twelve months | $ (7,000) | $ (8,000) |
Number of investments, twelve months or more | 0 | 0 |
Fair value, twelve months or more | $ 0 | $ 0 |
Unrealized losses, twelve months or more | 0 | 0 |
Fair value | 34,000 | 34,000 |
Unrealized losses | (7,000) | (8,000) |
Unrealized losses, twelve months or more | 0 | 0 |
Unrealized losses | $ (7,000) | $ (8,000) |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | Federal National Mortgage Association Certificates and Obligations (FNMA) [Member] | ||
Number of investments, less than twelve months | 1 | |
Fair value, less than twelve months | $ 345,000 | |
Unrealized losses, less than twelve months | $ (3,000) | |
Number of investments, twelve months or more | 0 | |
Fair value, twelve months or more | $ 0 | |
Unrealized losses, twelve months or more | 0 | |
Fair value | 345,000 | |
Unrealized losses | (3,000) | |
Unrealized losses, twelve months or more | 0 | |
Unrealized losses | $ (3,000) | |
Other Marketable Securities [Member] | US Government Agencies Debt Securities [Member] | ||
Number of investments, less than twelve months | 2 | 9 |
Fair value, less than twelve months | $ 9,996,000 | $ 44,878,000 |
Unrealized losses, less than twelve months | $ (4,000) | $ (129,000) |
Number of investments, twelve months or more | 0 | 0 |
Fair value, twelve months or more | $ 0 | $ 0 |
Unrealized losses, twelve months or more | 0 | 0 |
Fair value | 9,996,000 | 44,878,000 |
Unrealized losses | (4,000) | (129,000) |
Unrealized losses, twelve months or more | 0 | 0 |
Unrealized losses | $ (4,000) | $ (129,000) |
Other Marketable Securities [Member] | US States and Political Subdivisions Debt Securities [Member] | ||
Number of investments, less than twelve months | 5 | 12 |
Fair value, less than twelve months | $ 549,000 | $ 2,010,000 |
Unrealized losses, less than twelve months | $ (3,000) | $ (7,000) |
Number of investments, twelve months or more | 0 | 0 |
Fair value, twelve months or more | $ 0 | $ 0 |
Unrealized losses, twelve months or more | 0 | 0 |
Fair value | 549,000 | 2,010,000 |
Unrealized losses | (3,000) | (7,000) |
Unrealized losses, twelve months or more | 0 | 0 |
Unrealized losses | $ (3,000) | $ (7,000) |
Other Marketable Securities [Member] | Corporate Debt Securities [Member] | ||
Number of investments, less than twelve months | 1 | |
Fair value, less than twelve months | $ 334,000 | |
Unrealized losses, less than twelve months | $ (6,000) | |
Number of investments, twelve months or more | 0 | |
Fair value, twelve months or more | $ 0 | |
Unrealized losses, twelve months or more | 0 | |
Fair value | 334,000 | |
Unrealized losses | (6,000) | |
Unrealized losses, twelve months or more | 0 | |
Unrealized losses | $ (6,000) | |
Other Marketable Securities [Member] | Preferred Stock [Member] | ||
Number of investments, less than twelve months | 0 | 0 |
Fair value, less than twelve months | $ 0 | $ 0 |
Unrealized losses, less than twelve months | $ 0 | $ 0 |
Number of investments, twelve months or more | 1 | 1 |
Fair value, twelve months or more | $ 350,000 | $ 350,000 |
Unrealized losses, twelve months or more | (350,000) | (350,000) |
Fair value | 350,000 | 350,000 |
Unrealized losses | (350,000) | (350,000) |
Unrealized losses, twelve months or more | (350,000) | (350,000) |
Unrealized losses | $ (350,000) | $ (350,000) |
Number of investments, less than twelve months | 10 | 25 |
Fair value, less than twelve months | $ 10,924,000 | $ 47,602,000 |
Unrealized losses, less than twelve months | $ (17,000) | $ (151,000) |
Number of investments, twelve months or more | 1 | 1 |
Fair value, twelve months or more | $ 350,000 | $ 350,000 |
Unrealized losses, twelve months or more | (350,000) | (350,000) |
Fair value | 11,274,000 | 47,952,000 |
Unrealized losses | (367,000) | (501,000) |
Unrealized losses, twelve months or more | (350,000) | (350,000) |
Unrealized losses | $ (367,000) | $ (501,000) |
Note 7 - Securities Available41
Note 7 - Securities Available for Sale - Summary of Securities Available for Sale (Details) - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | Federal Home Loan Mortgage Corporation Certificates and Obligations (FHLMC) [Member] | ||
Total | $ 605,000 | $ 728,000 |
Gross unrealized gains | 18,000 | 31,000 |
Gross unrealized losses | 0 | 0 |
Total | 623,000 | 759,000 |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | Federal National Mortgage Association Certificates and Obligations (FNMA) [Member] | ||
Total | 610,000 | 725,000 |
Gross unrealized gains | 26,000 | 22,000 |
Gross unrealized losses | 0 | 0 |
Total | 636,000 | 747,000 |
Collateralized Mortgage Backed Securities [Member] | Federal Home Loan Mortgage Corporation Certificates and Obligations (FHLMC) [Member] | ||
Total | 682,000 | 742,000 |
Gross unrealized gains | 12,000 | 2,000 |
Gross unrealized losses | (3,000) | (1,000) |
Total | 691,000 | 743,000 |
Collateralized Mortgage Backed Securities [Member] | Other Long-term Investments [Member] | ||
Total | 41,000 | 42,000 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | (7,000) | (8,000) |
Total | 34,000 | 34,000 |
Collateralized Mortgage Backed Securities [Member] | ||
Total | 1,938,000 | 2,237,000 |
Gross unrealized gains | 56,000 | 55,000 |
Gross unrealized losses | (10,000) | (9,000) |
Total | 1,984,000 | 2,283,000 |
Other Marketable Securities [Member] | US Government Agencies Debt Securities [Member] | ||
Total | 99,980,000 | 105,003,000 |
Gross unrealized gains | 122,000 | 68,000 |
Gross unrealized losses | (4,000) | (129,000) |
Total | 100,098,000 | 104,942,000 |
Other Marketable Securities [Member] | US States and Political Subdivisions Debt Securities [Member] | ||
Total | 2,962,000 | 3,991,000 |
Gross unrealized gains | 29,000 | 18,000 |
Gross unrealized losses | (3,000) | (7,000) |
Total | 2,988,000 | 4,002,000 |
Other Marketable Securities [Member] | Corporate Debt Securities [Member] | ||
Total | 316,000 | 340,000 |
Gross unrealized gains | 16,000 | 0 |
Gross unrealized losses | 0 | (6,000) |
Total | 332,000 | 334,000 |
Other Marketable Securities [Member] | Preferred Stock [Member] | ||
Total | 700,000 | 700,000 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | (350,000) | (350,000) |
Total | 350,000 | 350,000 |
Other Marketable Securities [Member] | Equity Securities [Member] | ||
Total | 58,000 | 58,000 |
Gross unrealized gains | 18,000 | 5,000 |
Gross unrealized losses | 0 | 0 |
Total | 76,000 | 63,000 |
Other Marketable Securities [Member] | ||
Total | 104,016,000 | 110,092,000 |
Gross unrealized gains | 185,000 | 91,000 |
Gross unrealized losses | (357,000) | (492,000) |
Total | 103,844,000 | 109,691,000 |
Total | 105,954,000 | 112,329,000 |
Gross unrealized gains | 241,000 | 146,000 |
Gross unrealized losses | (367,000) | (501,000) |
Total | $ 105,828,000 | $ 111,974,000 |
Note 7 - Securities Available42
Note 7 - Securities Available for Sale - Securities by Contractual Maturity (Details) - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 |
Due less than one year | $ 20,914,000 | |
Due less than one year | 20,961,000 | |
Due after one year through five years | 83,849,000 | |
Due after one year through five years | 84,005,000 | |
Due after five years through ten years | 402,000 | |
Due after five years through ten years | 405,000 | |
Due after ten years | 731,000 | |
Due after ten years | 381,000 | |
No stated maturity | 58,000 | |
No stated maturity | 76,000 | |
Total | 105,954,000 | $ 112,329,000 |
Total | $ 105,828,000 | $ 111,974,000 |
Note 8 - Loans Receivable, Ne43
Note 8 - Loans Receivable, Net - Loans Receivable (Details) - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 |
One to Four Family Porfolio Segment [Member] | ||||
Loans and leases receivable, gross carrying amount | $ 95,247,000 | $ 90,945,000 | ||
Loans and Leases Receivable, Allowance | 1,050,000 | 990,000 | $ 1,091,000 | $ 1,096,000 |
Commercial Real Estate Portfolio Segment [Member] | Real Estate Loan [Member] | ||||
Loans and leases receivable, gross carrying amount | 145,224,000 | 125,376,000 | ||
Commercial Real Estate Portfolio Segment [Member] | Commercial Real Estate Other [Member] | ||||
Loans and leases receivable, gross carrying amount | 122,241,000 | 121,977,000 | ||
Commercial Real Estate Portfolio Segment [Member] | ||||
Loans and leases receivable, gross carrying amount | 267,465,000 | 247,353,000 | ||
Loans and Leases Receivable, Allowance | 5,437,000 | 6,078,000 | 5,122,000 | 5,024,000 |
Consumer Portfolio Segment [Member] | ||||
Loans and leases receivable, gross carrying amount | 66,782,000 | 64,415,000 | ||
Loans and Leases Receivable, Allowance | 1,395,000 | 1,200,000 | 1,022,000 | 1,009,000 |
Commercial Portfolio Segment [Member] | Real Estate Loan [Member] | ||||
Loans and leases receivable, gross carrying amount | 145,224,000 | 125,376,000 | ||
Commercial Portfolio Segment [Member] | Commercial Real Estate Other [Member] | ||||
Loans and leases receivable, gross carrying amount | 122,241,000 | 121,977,000 | ||
Commercial Portfolio Segment [Member] | Transportation Industry Loans [Member] | ||||
Loans and leases receivable, gross carrying amount | 9,440,000 | 9,349,000 | ||
Commercial Portfolio Segment [Member] | Commercial Business Other [Member] | ||||
Loans and leases receivable, gross carrying amount | 60,551,000 | 60,757,000 | ||
Commercial Portfolio Segment [Member] | ||||
Loans and leases receivable, gross carrying amount | 69,991,000 | 70,106,000 | ||
Loans and Leases Receivable, Allowance | 1,481,000 | 1,441,000 | 1,183,000 | 1,203,000 |
Loans and leases receivable, gross carrying amount | 499,485,000 | 472,819,000 | ||
Unamortized discounts | 18,000 | 16,000 | ||
Net deferred loan costs | (156,000) | (91,000) | ||
Loans and Leases Receivable, Allowance | 9,363,000 | 9,709,000 | $ 8,418,000 | $ 8,332,000 |
Total loans receivable, net | $ 490,260,000 | $ 463,185,000 |
Note 9 - Allowance for Loan L44
Note 9 - Allowance for Loan Losses and Credit Quality Information (Details Textual) | 3 Months Ended | |||
Mar. 31, 2016USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Nonperforming Financial Instruments [Member] | Classified [Member] | ||||
Financing Receivable, Modifications, Recorded Investment | $ 75,000 | |||
Nonperforming Financial Instruments [Member] | ||||
Impaired Financing Receivable, Related Allowance | 700,000 | $ 700,000 | ||
Financing Receivable, Modifications, Recorded Investment | 931,000 | 901,000 | ||
Performing Financial Instruments [Member] | Classified [Member] | ||||
Financing Receivable, Modifications, Recorded Investment | 31,000 | $ 9,000 | ||
Performing Financial Instruments [Member] | ||||
Financing Receivable, Modifications, Recorded Investment | 1,633,000 | 1,618,000 | ||
Kasson State Bank [Member] | ||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Carrying Amount, Net | 400,000 | |||
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest | 3,905,000 | 4,181,000 | ||
Impaired Financing Receivable, Related Allowance | 984,000 | 1,009,000 | ||
Loan Receivable For Which Value Of Collateral Sufficient To Repay | 800,000 | 1,400,000 | ||
Financing Receivable, Modifications, Recorded Investment | 2,564,000 | 2,519,000 | ||
Financing Receivable, Modifications, Number of Contracts | 1 | |||
Loans and Leases Receivable, Impaired, Commitment to Lend | $ 1,100,000 | 1,500,000 | ||
Loan to Value Ration | 75.00% | |||
Financing Receivable, Modifications, Subsequent Default, Number of Contracts | 0 | 0 | ||
Allowance for Credit Losses, Change in Method of Calculating Impairment | $ 500,000 | $ 500,000 | ||
Percentage Reserves For Loan Losses On Troubled Debt Restructurings | 5.30% | 5.20% | ||
Loans and Leases Receivable, Allowance | $ 9,363,000 | $ 8,418,000 | $ 9,709,000 | $ 8,332,000 |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Provision for Loan Losses | $ 0 |
Note 9 - Allowance for Loan L45
Note 9 - Allowance for Loan Losses and Credit Quality Information - Allowance for Loan Losses (Details) - USD ($) | 3 Months Ended | |||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Dec. 31, 2015 | |
One to Four Family Porfolio Segment [Member] | ||||
Balance, December 31, 2015 | $ 990,000 | $ 1,096,000 | ||
Provision for losses | 60,000 | (5,000) | ||
Charge-offs | 0 | 0 | ||
Recoveries | 0 | 0 | ||
Balance, March 31, 2016 | 1,050,000 | 1,091,000 | ||
Impaired Financing Receivable, Related Allowance | $ 225,000 | $ 223,000 | ||
General reserves | 825,000 | 767,000 | ||
Loans and Leases Receivable, Allowance | 990,000 | 1,096,000 | 1,050,000 | 990,000 |
Individually reviewed for impairment | 1,774,000 | 2,203,000 | ||
Collectively reviewed for impairment | 93,473,000 | 88,742,000 | ||
Loans and leases receivable, gross carrying amount | 95,247,000 | 90,945,000 | ||
Commercial Real Estate Portfolio Segment [Member] | ||||
Balance, December 31, 2015 | 6,078,000 | 5,024,000 | ||
Provision for losses | (823,000) | 34,000 | ||
Charge-offs | 0 | 0 | ||
Recoveries | 182,000 | 64,000 | ||
Balance, March 31, 2016 | 5,437,000 | 5,122,000 | ||
Impaired Financing Receivable, Related Allowance | 254,000 | 296,000 | ||
General reserves | 5,183,000 | 5,782,000 | ||
Loans and Leases Receivable, Allowance | 6,078,000 | 5,024,000 | 5,437,000 | 6,078,000 |
Individually reviewed for impairment | 2,326,000 | 2,204,000 | ||
Collectively reviewed for impairment | 265,139,000 | 245,149,000 | ||
Loans and leases receivable, gross carrying amount | 267,465,000 | 247,353,000 | ||
Consumer Portfolio Segment [Member] | ||||
Balance, December 31, 2015 | 1,200,000 | 1,009,000 | ||
Provision for losses | 184,000 | 23,000 | ||
Charge-offs | (7,000) | (18,000) | ||
Recoveries | 18,000 | 8,000 | ||
Balance, March 31, 2016 | 1,395,000 | 1,022,000 | ||
Impaired Financing Receivable, Related Allowance | 389,000 | 370,000 | ||
General reserves | 1,006,000 | 830,000 | ||
Loans and Leases Receivable, Allowance | 1,200,000 | 1,009,000 | 1,395,000 | 1,200,000 |
Individually reviewed for impairment | 1,041,000 | 977,000 | ||
Collectively reviewed for impairment | 65,741,000 | 63,438,000 | ||
Loans and leases receivable, gross carrying amount | 66,782,000 | 64,415,000 | ||
Commercial Portfolio Segment [Member] | ||||
Balance, December 31, 2015 | 1,441,000 | 1,203,000 | ||
Provision for losses | (153,000) | (52,000) | ||
Charge-offs | 0 | 0 | ||
Recoveries | 193,000 | 32,000 | ||
Balance, March 31, 2016 | 1,481,000 | 1,183,000 | ||
Impaired Financing Receivable, Related Allowance | 116,000 | 120,000 | ||
General reserves | 1,365,000 | 1,321,000 | ||
Loans and Leases Receivable, Allowance | 1,441,000 | 1,203,000 | 1,481,000 | 1,441,000 |
Individually reviewed for impairment | 397,000 | 415,000 | ||
Collectively reviewed for impairment | 69,594,000 | 69,691,000 | ||
Loans and leases receivable, gross carrying amount | 69,991,000 | 70,106,000 | ||
Balance, December 31, 2015 | 9,709,000 | 8,332,000 | ||
Provision for losses | (732,000) | 0 | ||
Charge-offs | (7,000) | (18,000) | ||
Recoveries | 393,000 | 104,000 | ||
Balance, March 31, 2016 | 9,363,000 | 8,418,000 | ||
Impaired Financing Receivable, Related Allowance | 984,000 | 1,009,000 | ||
General reserves | 8,379,000 | 8,700,000 | ||
Loans and Leases Receivable, Allowance | $ 9,363,000 | $ 8,332,000 | 9,363,000 | 9,709,000 |
Individually reviewed for impairment | 5,538,000 | 5,799,000 | ||
Collectively reviewed for impairment | 493,947,000 | 467,020,000 | ||
Loans and leases receivable, gross carrying amount | $ 499,485,000 | $ 472,819,000 |
Note 9 - Allowance for Loan L46
Note 9 - Allowance for Loan Losses and Credit Quality Information - Classified and Unclassified Loans (Details) - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 |
Classified [Member] | Special Mention [Member] | One to Four Family Porfolio Segment [Member] | ||
Loans and leases receivable, gross carrying amount | $ 379,000 | $ 189,000 |
Classified [Member] | Special Mention [Member] | Commercial Portfolio Segment [Member] | Commercial Business Other [Member] | ||
Loans and leases receivable, gross carrying amount | 837,000 | 841,000 |
Classified [Member] | Special Mention [Member] | Commercial Real Estate Portfolio Segment [Member] | Commercial Real Estate Other [Member] | ||
Loans and leases receivable, gross carrying amount | 630,000 | 917,000 |
Classified [Member] | Special Mention [Member] | Consumer Portfolio Segment [Member] | ||
Loans and leases receivable, gross carrying amount | 0 | 0 |
Classified [Member] | Special Mention [Member] | ||
Loans and leases receivable, gross carrying amount | 3,704,000 | 7,939,000 |
Classified [Member] | Substandard [Member] | One to Four Family Porfolio Segment [Member] | ||
Loans and leases receivable, gross carrying amount | 2,718,000 | 2,889,000 |
Classified [Member] | Substandard [Member] | Commercial Portfolio Segment [Member] | Real Estate Loan [Member] | ||
Loans and leases receivable, gross carrying amount | 6,529,000 | 4,827,000 |
Classified [Member] | Substandard [Member] | Commercial Portfolio Segment [Member] | Transportation Industry Loans [Member] | ||
Loans and leases receivable, gross carrying amount | 3,085,000 | 18,000 |
Classified [Member] | Substandard [Member] | Commercial Portfolio Segment [Member] | Commercial Business Other [Member] | ||
Loans and leases receivable, gross carrying amount | 1,303,000 | 1,515,000 |
Classified [Member] | Substandard [Member] | Commercial Real Estate Portfolio Segment [Member] | Commercial Real Estate Other [Member] | ||
Loans and leases receivable, gross carrying amount | 9,509,000 | 9,473,000 |
Classified [Member] | Substandard [Member] | Consumer Portfolio Segment [Member] | ||
Loans and leases receivable, gross carrying amount | 714,000 | 639,000 |
Classified [Member] | Substandard [Member] | ||
Loans and leases receivable, gross carrying amount | 23,858,000 | 19,361,000 |
Classified [Member] | Doubtful [Member] | One to Four Family Porfolio Segment [Member] | ||
Loans and leases receivable, gross carrying amount | 53,000 | 55,000 |
Classified [Member] | Doubtful [Member] | Commercial Portfolio Segment [Member] | Real Estate Loan [Member] | ||
Loans and leases receivable, gross carrying amount | 0 | 0 |
Classified [Member] | Doubtful [Member] | Commercial Portfolio Segment [Member] | Transportation Industry Loans [Member] | ||
Loans and leases receivable, gross carrying amount | 0 | 0 |
Classified [Member] | Doubtful [Member] | Commercial Portfolio Segment [Member] | Commercial Business Other [Member] | ||
Loans and leases receivable, gross carrying amount | 0 | 0 |
Classified [Member] | Doubtful [Member] | Commercial Real Estate Portfolio Segment [Member] | Commercial Real Estate Other [Member] | ||
Loans and leases receivable, gross carrying amount | 0 | 0 |
Classified [Member] | Doubtful [Member] | Consumer Portfolio Segment [Member] | ||
Loans and leases receivable, gross carrying amount | 51,000 | 52,000 |
Classified [Member] | Doubtful [Member] | ||
Loans and leases receivable, gross carrying amount | 104,000 | 107,000 |
Classified [Member] | Unlikely to be Collected Financing Receivable [Member] | One to Four Family Porfolio Segment [Member] | ||
Loans and leases receivable, gross carrying amount | 0 | 0 |
Classified [Member] | Unlikely to be Collected Financing Receivable [Member] | Commercial Portfolio Segment [Member] | Real Estate Loan [Member] | ||
Loans and leases receivable, gross carrying amount | 0 | 0 |
Classified [Member] | Unlikely to be Collected Financing Receivable [Member] | Commercial Portfolio Segment [Member] | Transportation Industry Loans [Member] | ||
Loans and leases receivable, gross carrying amount | 0 | 0 |
Classified [Member] | Unlikely to be Collected Financing Receivable [Member] | Commercial Portfolio Segment [Member] | Commercial Business Other [Member] | ||
Loans and leases receivable, gross carrying amount | 0 | 0 |
Classified [Member] | Unlikely to be Collected Financing Receivable [Member] | Commercial Real Estate Portfolio Segment [Member] | Commercial Real Estate Other [Member] | ||
Loans and leases receivable, gross carrying amount | 0 | 0 |
Classified [Member] | Unlikely to be Collected Financing Receivable [Member] | Consumer Portfolio Segment [Member] | ||
Loans and leases receivable, gross carrying amount | 276,000 | 286,000 |
Classified [Member] | Unlikely to be Collected Financing Receivable [Member] | ||
Loans and leases receivable, gross carrying amount | 276,000 | 286,000 |
Classified [Member] | Internal Investment Grade [Member] | Commercial Portfolio Segment [Member] | Real Estate Loan [Member] | ||
Loans and leases receivable, gross carrying amount | 704,000 | 1,910,000 |
Classified [Member] | Internal Investment Grade [Member] | Commercial Portfolio Segment [Member] | Transportation Industry Loans [Member] | ||
Loans and leases receivable, gross carrying amount | 1,154,000 | 4,082,000 |
Classified [Member] | One to Four Family Porfolio Segment [Member] | ||
Loans and leases receivable, gross carrying amount | 3,150,000 | 3,133,000 |
Classified [Member] | Commercial Portfolio Segment [Member] | Real Estate Loan [Member] | ||
Loans and leases receivable, gross carrying amount | 7,233,000 | 6,737,000 |
Classified [Member] | Commercial Portfolio Segment [Member] | Transportation Industry Loans [Member] | ||
Loans and leases receivable, gross carrying amount | 4,239,000 | 4,100,000 |
Classified [Member] | Commercial Portfolio Segment [Member] | Commercial Business Other [Member] | ||
Loans and leases receivable, gross carrying amount | 2,140,000 | 2,356,000 |
Classified [Member] | Commercial Real Estate Portfolio Segment [Member] | Commercial Real Estate Other [Member] | ||
Loans and leases receivable, gross carrying amount | 10,139,000 | 10,390,000 |
Classified [Member] | Consumer Portfolio Segment [Member] | ||
Loans and leases receivable, gross carrying amount | 1,041,000 | 977,000 |
Classified [Member] | ||
Loans and leases receivable, gross carrying amount | 27,942,000 | 27,693,000 |
Unclassified [Member] | One to Four Family Porfolio Segment [Member] | ||
Loans and leases receivable, gross carrying amount | 92,097,000 | 87,812,000 |
Unclassified [Member] | Commercial Portfolio Segment [Member] | Real Estate Loan [Member] | ||
Loans and leases receivable, gross carrying amount | 137,991,000 | 118,639,000 |
Unclassified [Member] | Commercial Portfolio Segment [Member] | Transportation Industry Loans [Member] | ||
Loans and leases receivable, gross carrying amount | 5,201,000 | 5,249,000 |
Unclassified [Member] | Commercial Portfolio Segment [Member] | Commercial Business Other [Member] | ||
Loans and leases receivable, gross carrying amount | 58,411,000 | 58,401,000 |
Unclassified [Member] | Commercial Real Estate Portfolio Segment [Member] | Commercial Real Estate Other [Member] | ||
Loans and leases receivable, gross carrying amount | 112,102,000 | 111,587,000 |
Unclassified [Member] | Consumer Portfolio Segment [Member] | ||
Loans and leases receivable, gross carrying amount | 65,741,000 | 63,438,000 |
Unclassified [Member] | ||
Loans and leases receivable, gross carrying amount | 471,543,000 | 445,126,000 |
One to Four Family Porfolio Segment [Member] | ||
Loans and leases receivable, gross carrying amount | 95,247,000 | 90,945,000 |
Commercial Portfolio Segment [Member] | Real Estate Loan [Member] | ||
Loans and leases receivable, gross carrying amount | 145,224,000 | 125,376,000 |
Commercial Portfolio Segment [Member] | Commercial Real Estate Other [Member] | ||
Loans and leases receivable, gross carrying amount | 122,241,000 | 121,977,000 |
Commercial Portfolio Segment [Member] | Transportation Industry Loans [Member] | ||
Loans and leases receivable, gross carrying amount | 9,440,000 | 9,349,000 |
Commercial Portfolio Segment [Member] | Commercial Business Other [Member] | ||
Loans and leases receivable, gross carrying amount | 60,551,000 | 60,757,000 |
Commercial Portfolio Segment [Member] | ||
Loans and leases receivable, gross carrying amount | 69,991,000 | 70,106,000 |
Commercial Real Estate Portfolio Segment [Member] | Real Estate Loan [Member] | ||
Loans and leases receivable, gross carrying amount | 145,224,000 | 125,376,000 |
Commercial Real Estate Portfolio Segment [Member] | Commercial Real Estate Other [Member] | ||
Loans and leases receivable, gross carrying amount | 122,241,000 | 121,977,000 |
Commercial Real Estate Portfolio Segment [Member] | ||
Loans and leases receivable, gross carrying amount | 267,465,000 | 247,353,000 |
Consumer Portfolio Segment [Member] | ||
Loans and leases receivable, gross carrying amount | 66,782,000 | 64,415,000 |
Loans and leases receivable, gross carrying amount | $ 499,485,000 | $ 472,819,000 |
Note 9 - Allowance for Loan L47
Note 9 - Allowance for Loan Losses and Credit Quality Information - Aging of Past Due Loans (Details) - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 |
Financing Receivables, 30 to 59 Days Past Due [Member] | One to Four Family Porfolio Segment [Member] | ||
Loans past due | $ 461,000 | $ 490,000 |
Financing Receivables, 30 to 59 Days Past Due [Member] | Commercial Portfolio Segment [Member] | Real Estate Loan [Member] | ||
Loans past due | 0 | 0 |
Financing Receivables, 30 to 59 Days Past Due [Member] | Commercial Portfolio Segment [Member] | Commercial Real Estate Other [Member] | ||
Loans past due | 92,000 | 0 |
Financing Receivables, 30 to 59 Days Past Due [Member] | Commercial Portfolio Segment [Member] | Transportation Industry Loans [Member] | ||
Loans past due | 16,000 | 0 |
Financing Receivables, 30 to 59 Days Past Due [Member] | Commercial Portfolio Segment [Member] | Commercial Business Other [Member] | ||
Loans past due | 41,000 | 45,000 |
Financing Receivables, 30 to 59 Days Past Due [Member] | Consumer Portfolio Segment [Member] | ||
Loans past due | 302,000 | 330,000 |
Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Loans past due | 912,000 | 865,000 |
Financing Receivables, 60 to 89 Days Past Due [Member] | One to Four Family Porfolio Segment [Member] | ||
Loans past due | 240,000 | 130,000 |
Financing Receivables, 60 to 89 Days Past Due [Member] | Commercial Portfolio Segment [Member] | Real Estate Loan [Member] | ||
Loans past due | 0 | 0 |
Financing Receivables, 60 to 89 Days Past Due [Member] | Commercial Portfolio Segment [Member] | Commercial Real Estate Other [Member] | ||
Loans past due | 0 | 289,000 |
Financing Receivables, 60 to 89 Days Past Due [Member] | Commercial Portfolio Segment [Member] | Transportation Industry Loans [Member] | ||
Loans past due | 0 | 0 |
Financing Receivables, 60 to 89 Days Past Due [Member] | Commercial Portfolio Segment [Member] | Commercial Business Other [Member] | ||
Loans past due | 0 | 0 |
Financing Receivables, 60 to 89 Days Past Due [Member] | Consumer Portfolio Segment [Member] | ||
Loans past due | 120,000 | 262,000 |
Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Loans past due | 360,000 | 681,000 |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | One to Four Family Porfolio Segment [Member] | ||
Loans past due | 247,000 | 799,000 |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Commercial Portfolio Segment [Member] | Real Estate Loan [Member] | ||
Loans past due | 0 | 0 |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Commercial Portfolio Segment [Member] | Commercial Real Estate Other [Member] | ||
Loans past due | 185,000 | 0 |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Commercial Portfolio Segment [Member] | Transportation Industry Loans [Member] | ||
Loans past due | 0 | 0 |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Commercial Portfolio Segment [Member] | Commercial Business Other [Member] | ||
Loans past due | 0 | 0 |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Consumer Portfolio Segment [Member] | ||
Loans past due | 111,000 | 119,000 |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Loans past due | 543,000 | 918,000 |
One to Four Family Porfolio Segment [Member] | ||
Loans past due | 948,000 | 1,419,000 |
Current Loans | 94,299,000 | 89,526,000 |
Loans and leases receivable, gross carrying amount | 95,247,000 | 90,945,000 |
Loans 90 days or more past due and still accruing | 0 | 0 |
Commercial Portfolio Segment [Member] | Real Estate Loan [Member] | ||
Loans past due | 0 | 0 |
Current Loans | 145,224,000 | 125,376,000 |
Loans and leases receivable, gross carrying amount | 145,224,000 | 125,376,000 |
Loans 90 days or more past due and still accruing | 0 | 0 |
Commercial Portfolio Segment [Member] | Commercial Real Estate Other [Member] | ||
Loans past due | 277,000 | 289,000 |
Current Loans | 121,964,000 | 121,688,000 |
Loans and leases receivable, gross carrying amount | 122,241,000 | 121,977,000 |
Loans 90 days or more past due and still accruing | 0 | 0 |
Commercial Portfolio Segment [Member] | Transportation Industry Loans [Member] | ||
Loans past due | 16,000 | 0 |
Current Loans | 9,424,000 | 9,349,000 |
Loans and leases receivable, gross carrying amount | 9,440,000 | 9,349,000 |
Loans 90 days or more past due and still accruing | 0 | 0 |
Commercial Portfolio Segment [Member] | Commercial Business Other [Member] | ||
Loans past due | 41,000 | 45,000 |
Current Loans | 60,510,000 | 60,712,000 |
Loans and leases receivable, gross carrying amount | 60,551,000 | 60,757,000 |
Loans 90 days or more past due and still accruing | 0 | 0 |
Commercial Portfolio Segment [Member] | ||
Loans and leases receivable, gross carrying amount | 69,991,000 | 70,106,000 |
Consumer Portfolio Segment [Member] | ||
Loans past due | 533,000 | 711,000 |
Current Loans | 66,249,000 | 63,704,000 |
Loans and leases receivable, gross carrying amount | 66,782,000 | 64,415,000 |
Loans 90 days or more past due and still accruing | 0 | 0 |
Loans past due | 1,815,000 | 2,464,000 |
Current Loans | 497,670,000 | 470,355,000 |
Loans and leases receivable, gross carrying amount | 499,485,000 | 472,819,000 |
Loans 90 days or more past due and still accruing | $ 0 | $ 0 |
Note 9 - Allowance for Loan L48
Note 9 - Allowance for Loan Losses and Credit Quality Information - Impaired Loans and Related Allowances (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
One to Four Family Porfolio Segment [Member] | |||
Recorded investment, with no related allowance | $ 695,000 | $ 1,251,000 | |
Unpaid principal balance, with no related allowance | 695,000 | 1,251,000 | |
Recorded investment, with related allowance | 1,079,000 | 952,000 | |
Unpaid principal balance, with related allowance | 1,079,000 | 952,000 | |
Impaired Financing Receivable, Related Allowance | 225,000 | 223,000 | |
Recorded investment | 1,774,000 | 2,203,000 | |
Unpaid principal balance | 1,774,000 | 2,203,000 | |
Average recorded investment, with no related allowance | 973,000 | $ 744,000 | |
Interest income recognized, with no related allowance | 6,000 | 3,000 | |
Average recorded investment, with related allowance | 1,016,000 | 1,170,000 | |
Interest income recognized, with related allowance | 3,000 | 22,000 | |
Average recorded investment | 1,989,000 | 1,914,000 | |
Interest income recognized | 9,000 | 25,000 | |
Commercial Portfolio Segment [Member] | Real Estate Loan [Member] | |||
Recorded investment, with no related allowance | 43,000 | 44,000 | |
Unpaid principal balance, with no related allowance | 178,000 | 184,000 | |
Recorded investment, with related allowance | 0 | 0 | |
Unpaid principal balance, with related allowance | 0 | 0 | |
Impaired Financing Receivable, Related Allowance | 0 | 0 | |
Recorded investment | 43,000 | 44,000 | |
Unpaid principal balance | 178,000 | 184,000 | |
Average recorded investment, with no related allowance | 44,000 | 48,000 | |
Interest income recognized, with no related allowance | 1,000 | 2,000 | |
Average recorded investment, with related allowance | 0 | 8,000 | |
Interest income recognized, with related allowance | 0 | 0 | |
Average recorded investment | 44,000 | 56,000 | |
Interest income recognized | 1,000 | 2,000 | |
Commercial Portfolio Segment [Member] | Commercial Real Estate Other [Member] | |||
Recorded investment, with no related allowance | 26,000 | 25,000 | |
Unpaid principal balance, with no related allowance | 1,682,000 | 1,706,000 | |
Recorded investment, with related allowance | 2,257,000 | 2,135,000 | |
Unpaid principal balance, with related allowance | 2,257,000 | 2,135,000 | |
Impaired Financing Receivable, Related Allowance | 254,000 | 296,000 | |
Recorded investment | 2,283,000 | 2,160,000 | |
Unpaid principal balance | 3,939,000 | 3,841,000 | |
Average recorded investment, with no related allowance | 26,000 | 7,304,000 | |
Interest income recognized, with no related allowance | 161,000 | 100,000 | |
Average recorded investment, with related allowance | 2,196,000 | 1,837,000 | |
Interest income recognized, with related allowance | 7,000 | 7,000 | |
Average recorded investment | 2,222,000 | 9,141,000 | |
Interest income recognized | 168,000 | 107,000 | |
Commercial Portfolio Segment [Member] | Commercial Business Other [Member] | |||
Recorded investment, with no related allowance | 0 | 0 | |
Unpaid principal balance, with no related allowance | 66,000 | 79,000 | |
Recorded investment, with related allowance | 397,000 | 415,000 | |
Unpaid principal balance, with related allowance | 949,000 | 967,000 | |
Impaired Financing Receivable, Related Allowance | 116,000 | 120,000 | |
Recorded investment | 397,000 | 415,000 | |
Unpaid principal balance | 1,015,000 | 1,046,000 | |
Average recorded investment, with no related allowance | 0 | 68,000 | |
Interest income recognized, with no related allowance | 0 | 0 | |
Average recorded investment, with related allowance | 406,000 | 467,000 | |
Interest income recognized, with related allowance | 4,000 | 5,000 | |
Average recorded investment | 406,000 | 535,000 | |
Interest income recognized | 4,000 | 5,000 | |
Commercial Portfolio Segment [Member] | |||
Impaired Financing Receivable, Related Allowance | 116,000 | 120,000 | |
Consumer Portfolio Segment [Member] | |||
Recorded investment, with no related allowance | 502,000 | 475,000 | |
Unpaid principal balance, with no related allowance | 503,000 | 476,000 | |
Recorded investment, with related allowance | 539,000 | 502,000 | |
Unpaid principal balance, with related allowance | 556,000 | 519,000 | |
Impaired Financing Receivable, Related Allowance | 389,000 | 370,000 | |
Recorded investment | 1,041,000 | 977,000 | |
Unpaid principal balance | 1,059,000 | 995,000 | |
Average recorded investment, with no related allowance | 489,000 | 367,000 | |
Interest income recognized, with no related allowance | 1,000 | 0 | |
Average recorded investment, with related allowance | 521,000 | 337,000 | |
Interest income recognized, with related allowance | 3,000 | 2,000 | |
Average recorded investment | 1,010,000 | 704,000 | |
Interest income recognized | 4,000 | 2,000 | |
Impaired Financing Receivable, Related Allowance | 984,000 | 1,009,000 | |
Recorded investment | 5,538,000 | 5,799,000 | |
Unpaid principal balance | 7,965,000 | $ 8,269,000 | |
Average recorded investment | 5,671,000 | 12,350,000 | |
Interest income recognized | $ 186,000 | $ 141,000 |
Note 9 - Allowance for Loan L49
Note 9 - Allowance for Loan Losses and Credit Quality Information - Non-Accrual Loans (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
One to Four Family Porfolio Segment [Member] | ||
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest | $ 1,229 | $ 1,655 |
Commercial Portfolio Segment [Member] | Real Estate Loan [Member] | ||
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest | 44 | 44 |
Commercial Portfolio Segment [Member] | Commercial Real Estate Other [Member] | ||
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest | 1,778 | 1,650 |
Commercial Portfolio Segment [Member] | Commercial Business Other [Member] | ||
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest | 45 | 46 |
Consumer Portfolio Segment [Member] | ||
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest | 809 | 786 |
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest | $ 3,905 | $ 4,181 |
Note 9 - Allowance for Loan L50
Note 9 - Allowance for Loan Losses and Credit Quality Information - Trouble Debt Restructuring (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
One to Four Family Porfolio Segment [Member] | Performing Financial Instruments [Member] | ||
Financing Receivable, Modifications, Recorded Investment | $ 544 | $ 547 |
One to Four Family Porfolio Segment [Member] | Nonperforming Financial Instruments [Member] | ||
Financing Receivable, Modifications, Recorded Investment | 98 | 100 |
One to Four Family Porfolio Segment [Member] | ||
Financing Receivable, Modifications, Recorded Investment | 642 | 647 |
Commercial Real Estate Portfolio Segment [Member] | Performing Financial Instruments [Member] | ||
Financing Receivable, Modifications, Recorded Investment | 504 | 511 |
Commercial Real Estate Portfolio Segment [Member] | Nonperforming Financial Instruments [Member] | ||
Financing Receivable, Modifications, Recorded Investment | 211 | 214 |
Commercial Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Modifications, Recorded Investment | 715 | 725 |
Consumer Portfolio Segment [Member] | Performing Financial Instruments [Member] | ||
Financing Receivable, Modifications, Recorded Investment | 233 | 191 |
Consumer Portfolio Segment [Member] | Nonperforming Financial Instruments [Member] | ||
Financing Receivable, Modifications, Recorded Investment | 577 | 541 |
Consumer Portfolio Segment [Member] | ||
Financing Receivable, Modifications, Recorded Investment | 810 | 732 |
Commercial Portfolio Segment [Member] | Performing Financial Instruments [Member] | ||
Financing Receivable, Modifications, Recorded Investment | 352 | 369 |
Commercial Portfolio Segment [Member] | Nonperforming Financial Instruments [Member] | ||
Financing Receivable, Modifications, Recorded Investment | 45 | 46 |
Commercial Portfolio Segment [Member] | ||
Financing Receivable, Modifications, Recorded Investment | 397 | 415 |
Performing Financial Instruments [Member] | ||
Financing Receivable, Modifications, Recorded Investment | 1,633 | 1,618 |
Nonperforming Financial Instruments [Member] | ||
Financing Receivable, Modifications, Recorded Investment | 931 | 901 |
Financing Receivable, Modifications, Recorded Investment | $ 2,564 | $ 2,519 |
Note 9 - Allowance for Loan L51
Note 9 - Allowance for Loan Losses and Credit Quality Information - Financial Effects of Troubled Debt Restructurings (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016USD ($) | Mar. 31, 2015USD ($) | |
Consumer Portfolio Segment [Member] | ||
Financing Receivable, Modifications, Number of Contracts | 6 | 1 |
Pre-modification | $ 106 | $ 9 |
Post-modification | $ 107 | $ 9 |
Financing Receivable, Modifications, Number of Contracts | 1 |
Note 9 - Allowance for Loan L52
Note 9 - Allowance for Loan Losses and Credit Quality Information - Purchased Performing Loans Acquired Through Kasson State Bank Acquisition (Details) - Kasson State Bank [Member] | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Performing Financial Instruments [Member] | |
Balance at December 31, 2015 | $ 18,539,000 |
Balance at December 31, 2015 | (459,000) |
Balance at December 31, 2015 | 18,080,000 |
Change due to payments/refinances | (2,597,000) |
Change due to payments/refinances | 71,000 |
Change due to payments/refinances | (2,526,000) |
Transferred to foreclosed assets | 0 |
Transferred to foreclosed assets | 0 |
Transferred to foreclosed assets | 0 |
Change due to loan charge-off | 2,000 |
Change due to loan charge-off | 0 |
Change due to loan charge-off | 2,000 |
Balance at March 31, 2016 | 15,940,000 |
Balance at March 31, 2016 | (388,000) |
Balance at March 31, 2016 | 15,552,000 |
Balance at December 31, 2015 | 555,000 |
Balance at December 31, 2015 | (162,000) |
Balance at December 31, 2015 | 393,000 |
Change due to payments/refinances | 142,000 |
Change due to payments/refinances | 100,000 |
Change due to payments/refinances | 42,000 |
Transferred to foreclosed assets | 0 |
Transferred to foreclosed assets | 0 |
Transferred to foreclosed assets | 0 |
Change due to loan charge-off | 0 |
Change due to loan charge-off | 0 |
Change due to loan charge-off | 0 |
Balance at March 31, 2016 | 413,000 |
Balance at March 31, 2016 | (62,000) |
Balance at March 31, 2016 | $ 351,000 |
Note 10 - Intangible Assets (De
Note 10 - Intangible Assets (Details Textual) - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Amortization of Intangible Assets | $ 151,000 | $ 143,000 |
Note 10 - Intangible Assets - M
Note 10 - Intangible Assets - Mortgage Servicing Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Balance, beginning of period | $ 1,499 | $ 1,507 | $ 1,507 |
Originations | 89 | 84 | 547 |
Amortization | (132) | (143) | (555) |
Balance, end of period | 1,456 | 1,448 | 1,499 |
Fair value of mortgage servicing rights | $ 2,427 | $ 2,508 | $ 2,590 |
Note 10 - Intangible Assets - R
Note 10 - Intangible Assets - Risk Characteristics of Loans Being Serviced (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Original Term Thirty Year Fixed Rate [Member] | |
Loan Principal Balance | $ 218,770 |
Weighted Average Interest Rate | 4.20% |
Weighted Average Remaining Term | 25 years 30 days |
Number of Loans | 1,853 |
Original Term Fifteen Year Fixed Rate [Member] | |
Loan Principal Balance | $ 107,390 |
Weighted Average Interest Rate | 3.21% |
Weighted Average Remaining Term | 11 years 180 days |
Number of Loans | 1,190 |
Adjustable Rate [Member] | |
Loan Principal Balance | $ 58 |
Weighted Average Interest Rate | 4.38% |
Weighted Average Remaining Term | 25 years 60 days |
Number of Loans | 2 |
Note 10 - Intangible Assets - G
Note 10 - Intangible Assets - Gross Carrying Amount and Accumulated Amortization of Intangible Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Mar. 31, 2015 |
Mortgage Servicing Rights [Member] | ||
Finite-lived intangible assets, gross carrying amount | $ 3,749 | $ 3,587 |
Finite-lived intangible assets, accumulated amortization | (2,293) | (2,139) |
Finite-lived intangible assets, unamortized intangible assets | 1,456 | 1,448 |
Finite-lived intangible assets, accumulated amortization | (2,293) | (2,139) |
Core Deposits [Member] | ||
Finite-lived intangible assets, gross carrying amount | 420 | |
Finite-lived intangible assets, accumulated amortization | (46) | |
Finite-lived intangible assets, unamortized intangible assets | 374 | |
Finite-lived intangible assets, accumulated amortization | (46) | |
Finite-lived intangible assets, gross carrying amount | 4,169 | 3,587 |
Finite-lived intangible assets, accumulated amortization | (2,339) | (2,139) |
Finite-lived intangible assets, unamortized intangible assets | 1,830 | 1,448 |
Finite-lived intangible assets, accumulated amortization | $ (2,339) | $ (2,139) |
Note 10 - Intangible Assets - E
Note 10 - Intangible Assets - Estimated Future Amortization Expense for Intangible Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Mar. 31, 2015 |
Mortgage Servicing Rights [Member] | ||
2,016 | $ 333 | |
2,017 | 369 | |
2,018 | 279 | |
2,019 | 220 | |
2,020 | 131 | |
Thereafter | 124 | |
Total | 1,456 | $ 1,448 |
Core Deposits [Member] | ||
2,016 | 56 | |
2,017 | 74 | |
2,018 | 74 | |
2,019 | 74 | |
2,020 | 74 | |
Thereafter | 22 | |
Total | 374 | |
2,016 | 389 | |
2,017 | 443 | |
2,018 | 353 | |
2,019 | 294 | |
2,020 | 205 | |
Thereafter | 146 | |
Total | $ 1,830 | $ 1,448 |
Note 11 - Earnings Per Common58
Note 11 - Earnings Per Common Share - Basic and Diluted Earnings (Loss) Per Share (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Weighted average number of common shares outstanding used in basic earnings per common share calculation (in shares) | 4,166,003 | 4,096,985 |
Restricted stock awards, options and warrants (in shares) | 514,245 | 574,665 |
Weighted average number of shares outstanding adjusted for effect of dilutive securities (in shares) | 4,680,248 | 4,671,650 |
Income available to common shareholders | $ 1,774,000 | $ 353,000 |
Basic earnings per common share (in dollars per share) | $ 0.43 | $ 0.09 |
Diluted earnings per common share (in dollars per share) | $ 0.38 | $ 0.08 |
Note 12 - Regulatory Capital 59
Note 12 - Regulatory Capital and Oversight (Details Textual) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Dec. 31, 2019 | |
Home Federal Savings Bank [Member] | ||
Banks Tangible Assets | $ 635.7 | |
Adjusted Assets | 632.4 | |
Risk Weighted Assets | $ 535.6 | |
Scenario, Forecast [Member] | ||
Capital Conservation Buffer | 2.50% | |
Capital Conservation Buffer | 0.625% |
Note 12 - Regulatory Capital 60
Note 12 - Regulatory Capital and Oversight - Capital Requirements under Banking Regulations (Details) $ in Thousands | Mar. 31, 2016USD ($) | |
Bank stockholder’s equity | $ 76,672 | |
Net unrealized loss on certain securities available for sale | 76 | |
Goodwill and other intangibles | 224 | |
Disallowed servicing and tax assets | 3,016 | |
Common equity tier I capital | $ 73,508 | |
Common equity tier I capital ratio | 13.73% | [1] |
Common equity tier I capital ratio | $ 24,101 | |
Common equity tier I capital ratio | 4.50% | [1] |
Common equity tier I capital ratio | $ 49,407 | |
Common equity tier I capital ratio | 9.23% | [1] |
Common equity tier I capital ratio | $ 34,812 | [2] |
Common equity tier I capital ratio | 6.50% | [1],[2] |
Tier I capital | $ 73,508 | |
Tier I capital leverage ratio | 11.62% | [1] |
Tier I capital leverage ratio | $ 25,297 | |
Tier I capital leverage ratio | 4.00% | [1] |
Tier I capital leverage ratio | $ 48,211 | |
Tier I capital leverage ratio | 7.62% | [1] |
Tier I capital leverage ratio | $ 31,622 | [2] |
Tier I capital leverage ratio | 5.00% | [1],[2] |
Tier I risk-based capital ratio | 13.73% | [1] |
Tier I risk-based capital ratio | $ 32,134 | |
Tier I risk-based capital ratio | 6.00% | [1] |
Tier I risk-based capital ratio | $ 41,374 | |
Tier I risk-based capital ratio | 7.73% | [1] |
Tier I risk-based capital ratio | $ 42,845 | [2] |
Tier I risk-based capital ratio | 8.00% | [1],[2] |
Plus: Allowable allowance for loan losses | $ 6,743 | |
Risk-based capital | $ 80,251 | |
Total risk-based capital ratio | 14.98% | [1] |
Total risk-based capital ratio | $ 42,845 | |
Total risk-based capital ratio | 8.00% | [1] |
Total risk-based capital ratio | $ 37,406 | |
Total risk-based capital ratio | 6.98% | [1] |
Total risk-based capital ratio | $ 53,557 | [2] |
Total risk-based capital ratio | 10.00% | [1],[2] |
[1] | Based upon the Bank's adjusted total assets for the purpose of the Tier I or core capital ratios and risk-weighted assets for the purpose of the risk-based capital ratios. | |
[2] | Under the final rules, revised requirements will be phased in commencing January 1, 2015, as described above. |
Note 13 - Stockholders' Equity
Note 13 - Stockholders' Equity (Details Textual) - USD ($) $ / shares in Units, $ in Millions | May. 21, 2015 | Feb. 17, 2015 | Dec. 23, 2008 | Mar. 31, 2016 | Dec. 31, 2015 |
Preferred Stock [Member] | |||||
Stock Redeemed or Called During Period, Shares | 10,000 | ||||
Two Investors [Member] | |||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 277,777.67 | ||||
One Investor [Member] | |||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 277,777.66 | ||||
Preferred Stock, Shares Authorized | 500,000 | 500,000 | |||
Preferred Stock, Shares Issued | 26,000 | 0 | 0 | ||
Preferred Stock, Dividend Rate, Per-Dollar-Amount | $ 1,000 | ||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 833,333 | ||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 4.68 | $ 4.68 | |||
Proceeds from Issuance of Warrants | $ 5.7 |
Note 14 - Other Borrowings (Det
Note 14 - Other Borrowings (Details Textual) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 | Dec. 15, 2014 |
Other Borrowings [Member] | |||
Debt Instrument, Interest Rate, Stated Percentage | 6.50% | ||
Debt Instrument, Annual Principal Payment | $ 1 | ||
Other Borrowings | $ 9 | $ 9 | $ 10 |
Note 15 - Commitments and Con63
Note 15 - Commitments and Contingencies (Details Textual) $ in Millions | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Standby Letters of Credit [Member] | |
Line of Credit Facility, Expiration Period | 2 years 300 days |
Letters of Credit Issued and Available Amount | $ 3.2 |
Note 16 - Business Segments - P
Note 16 - Business Segments - Profit and Assets for the Reportable Segments (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Home Federal Savings Bank [Member] | Operating Segments [Member] | ||
Interest income - external customers | $ 6,525,000 | $ 4,884,000 |
Non-interest income - external customers | 1,755,000 | 1,596,000 |
Intersegment non-interest income | 53,000 | |
Interest expense | 226,000 | 248,000 |
Non-interest expense | 5,561,000 | 5,305,000 |
Income tax expense (benefit) | 1,309,000 | 387,000 |
Net income | 1,969,000 | 591,000 |
Total assets | 637,104,000 | 564,427,000 |
Intersegment non-interest income | 51,000 | |
Other Segments [Member] | Operating Segments [Member] | ||
Interest income - external customers | 0 | 0 |
Non-interest income - external customers | 0 | 0 |
Intersegment non-interest income | 1,969,000 | |
Interest expense | 148,000 | 78,000 |
Non-interest expense | 183,000 | 179,000 |
Income tax expense (benefit) | (136,000) | (127,000) |
Net income | 1,774,000 | 461,000 |
Total assets | 80,868,000 | 76,760,000 |
Intersegment non-interest income | 591,000 | |
Consolidation, Eliminations [Member] | ||
Interest income - external customers | 0 | 0 |
Non-interest income - external customers | 0 | 0 |
Intersegment non-interest income | (2,022,000) | |
Interest expense | 0 | 0 |
Non-interest expense | (53,000) | (51,000) |
Income tax expense (benefit) | 0 | 0 |
Net income | (1,969,000) | (591,000) |
Total assets | (79,816,000) | (75,700,000) |
Intersegment non-interest income | (642,000) | |
Interest income - external customers | 6,525,000 | 4,884,000 |
Non-interest income - external customers | 1,755,000 | 1,596,000 |
Intersegment non-interest income | 0 | |
Interest expense | 374,000 | 326,000 |
Non-interest expense | 5,691,000 | 5,433,000 |
Income tax expense (benefit) | 1,173,000 | 260,000 |
Net income | 1,774,000 | 461,000 |
Total assets | $ 638,156,000 | 565,487,000 |
Intersegment non-interest income | $ 0 |