Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | 8. Loans June 30, December 31, (In Thousands) Real Estate: Secured by 1-4 family residential $ 205,044 $ 206,437 Secured by multi-family residential 162,595 156,530 Secured by commercial real estate 722,530 683,958 Construction 140,114 112,385 1,230,283 1,159,310 Other Loans: Commercial 401,247 399,730 Home equity and improvement 109,694 111,813 Consumer Finance 14,911 15,466 525,852 527,009 Total loans 1,756,135 1,686,319 Deduct: Undisbursed loan funds (49,477) (38,653) Net deferred loan origination fees and costs (942) (880) Allowance for loan loss (25,384) (24,766) Totals $ 1,680,332 $ 1,622,020 Loan segments have been identified by evaluating the portfolio based on collateral and credit risk characteristics. Quarter Ended June 30, 2015 1-4 Family Multi- Family Commercial Construction Commercial Home Equity Consumer Total Beginning Allowance $ 2,483 $ 2,554 $ 11,684 $ 303 $ 6,766 $ 1,420 $ 92 $ 25,302 Charge-Offs (12) (114) (31) 0 (23) (187) (13) (380) Recoveries 54 0 167 0 173 51 17 462 Provisions 352 (171) 276 5 (1,349) 823 64 0 Ending Allowance $ 2,877 $ 2,269 $ 12,096 $ 308 $ 5,567 $ 2,107 $ 160 $ 25,384 Quarter Ended June 30, 2014 1-4 Family Multi- Family Commercial Construction Commercial Home Equity Consumer Total Beginning Allowance $ 2,639 $ 2,615 $ 11,987 $ 138 $ 5,610 $ 1,647 $ 147 $ 24,783 Charge-Offs (42) (0) (39) 0 (973) (80) (12) (1,146) Recoveries 98 2 200 0 173 55 16 544 Provisions (350) (137) (672) 61 1,389 158 (3) 446 Ending Allowance $ 2,345 $ 2,480 $ 11,476 $ 199 $ 6,199 $ 1,780 $ 148 $ 24,627 The following table discloses allowance for loan loss activity for the year-to-date periods ended June 30, 2015 and June 30, 2014 by portfolio segment and impairment method (In Thousands): Year-to-date Period Ended 1-4 Family Multi- Family Commercial Construction Commercial Home Equity Consumer Total Beginning Allowance $ 2,494 $ 2,453 $ 11,268 $ 221 $ 6,509 $ 1,704 $ 117 $ 24,766 Charge-Offs (90) (114) (186) 0 (25) (230) (16) (661) Recoveries 73 0 764 0 213 80 29 1,159 Provisions 400 (70) 250 87 (1,130) 553 30 120 Ending Allowance $ 2,877 $ 2,269 $ 12,096 $ 308 $ 5,567 $ 2,107 $ 160 $ 25,384 Year-to-date Period Ended 1-4 Family Multi- Family Commercial Construction Commercial Home Equity Consumer Total Beginning Allowance $ 2,847 $ 2,508 $ 12,000 $ 134 $ 5,678 $ 1,635 $ 148 $ 24,950 Charge-Offs (270) (0) (267) 0 (1,498) (264) (23) (2,322) Recoveries 154 5 922 0 249 86 34 1,450 Provisions (386) (33) (1,179) 65 1,770 323 (11) 549 Ending Allowance $ 2,345 $ 2,480 $ 11,476 $ 199 $ 6,199 $ 1,780 $ 148 $ 24,627 1-4 Family Multi Family Residential Residential Commercial Home Equity Consumer Real Estate Real Estate Real Estate Construction Commercial & Improvement Finance Total Allowance for loan losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ 248 $ - $ 220 $ - $ 13 $ 25 $ 32 $ 538 Collectively evaluated for impairment 2,629 2,269 11,876 308 5,554 2,082 128 24,846 Acquired with deteriorated credit quality - - - - - - - - Total ending allowance balance $ 2,877 $ 2,269 $ 12,096 $ 308 $ 5,567 $ 2,107 $ 160 $ 25,384 Loans: Loans individually evaluated for impairment $ 9,807 $ 2,256 $ 20,358 $ - $ 5,124 $ 2,394 $ 62 $ 40,001 Loans collectively evaluated for impairment 195,613 160,442 704,220 90,626 397,369 107,774 14,835 1,670,879 Loans acquired with deteriorated credit quality 1 - 160 - 19 - - 180 Total ending loans balance $ 205,421 $ 162,698 $ 724,738 $ 90,626 $ 402,512 $ 110,168 $ 14,897 $ 1,711,060 The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of December 31, 2014 (In Thousands): 1-4 Family Multi Family Residential Residential Commercial Home Equity Consumer Real Estate Real Estate Real Estate Construction Commercial & Improvement Finance Total Allowance for loan losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ 216 $ - $ 1,003 $ - $ 30 $ 24 $ - $ 1,273 Collectively evaluated for impairment 2,278 2,453 10,265 221 6,479 1,680 117 23,493 Acquired with deteriorated credit quality - - - - - - - - Total ending allowance balance $ 2,494 $ 2,453 $ 11,268 $ 221 $ 6,509 $ 1,704 $ 117 $ 24,766 Loans: Loans individually evaluated for impairment $ 10,281 $ 2,482 $ 28,117 $ 150 $ 5,739 $ 2,242 $ 34 $ 49,045 Loans collectively evaluated for impairment 196,582 154,178 657,677 73,572 395,270 110,040 15,417 1,602,736 Loans acquired with deteriorated credit quality 1 - 163 - 22 - - 186 Total ending loans balance $ 206,864 $ 156,660 $ 685,957 $ 73,722 $ 401,031 $ 112,282 $ 15,451 $ 1,651,967 Three Months Ended June 30, 2015 Six Months Ended June 30, 2015 Average Interest Cash Basis Average Interest Cash Basis Residential Owner Occupied $ 5,819 $ 68 $ 67 $ 5,905 $ 136 $ 135 Residential Non Owner Occupied 4,027 38 39 4,187 79 79 Total Residential Real Estate 9,846 106 106 10,092 215 214 Construction - - - 75 2 2 Multi-Family 2,408 5 6 2,435 13 14 CRE Owner Occupied 6,711 41 29 6,612 78 68 CRE Non Owner Occupied 9,452 111 129 9,820 244 264 Agriculture Land 2,228 25 15 1,494 32 28 Other CRE 2,118 16 16 2,280 26 25 Total Commercial Real Estate 20,509 193 189 20,206 380 385 Commercial Working Capital 1,537 14 12 1,702 27 25 Commercial Other 3,622 13 17 3,731 26 35 Total Commercial 5,159 27 29 5,433 53 60 Home Equity and Home Improvement 2,409 21 21 2,305 41 41 Consumer 65 1 1 54 1 1 Total Impaired Loans $ 40,396 $ 353 $ 352 $ 40,600 $ 705 $ 717 The following table presents the average balance, interest income recognized and cash basis income recognized on impaired loans by class of loans (In Thousands): Three Months Ended June 30, 2014 Six Months Ended June 30, 2014 AverageBalance Interest Cash Basis Average Interest Cash Basis Residential Owner Occupied $ 6,133 $ 81 $ 75 $ 6,231 $ 166 $ 158 Residential Non Owner Occupied 3,715 32 33 3,900 70 71 Total Residential Real Estate 9,848 113 108 10,131 236 229 Construction 261 3 4 261 6 9 Multi-Family 369 1 1 378 2 2 CRE Owner Occupied 8,967 37 33 9,402 73 68 CRE Non Owner Occupied 18,469 201 204 18,912 405 408 Agriculture Land 683 5 3 685 8 5 Other CRE 1,788 5 6 1,825 10 11 Total Commercial Real Estate 29,907 248 246 30,824 496 492 Commercial Working Capital 3,286 8 8 3,105 11 11 Commercial Other 4,552 2 1 4,756 4 3 Total Commercial 7,838 10 9 7,861 15 14 Home Equity and Home Improvement 2,095 25 25 2,267 50 50 Consumer 51 1 1 54 2 2 Total Impaired Loans $ 50,369 $ 401 $ 394 $ 51,776 $ 807 $ 798 June 30, 2015 December 31, 2014 Unpaid Recorded Allowance Unpaid Recorded Allowance With no allowance recorded: Residential Owner Occupied $ 3,713 $ 3,606 $ - $ 3,967 $ 3,859 $ - Residential Non Owner Occupied 3,526 3,517 - 3,763 3,670 - Total 1-4 Family Residential Real Estate 7,239 7,123 - 7,730 7,529 - Multi-Family Residential Real Estate 2,408 2,256 - 2,627 2,482 - CRE Owner Occupied 4,249 3,903 - 7,109 6,481 - CRE Non Owner Occupied 2,406 2,144 - 4,106 3,759 - Agriculture Land 2,134 2,183 - 213 208 - Other CRE 2,073 1,751 - 2,923 2,378 - Total Commercial Real Estate 10,862 9,981 - 14,351 12,826 - Construction - - - 150 150 - Commercial Working Capital 900 904 - 1,155 1,157 - Commercial Other 3,367 3,193 - 3,966 3,663 - Total Commercial 4,267 4,097 - 5,121 4,820 - Home Equity and Home Improvement 2,349 2,298 - 2,192 2,140 - Consumer Finance 29 29 - 35 34 - Total loans with no allowance recorded $ 27,154 $ 25,784 $ - $ 32,206 $ 29,981 $ - With an allowance recorded: Residential Owner Occupied $ 2,183 $ 2,186 $ 241 $ 2,112 $ 2,114 $ 204 Residential Non Owner Occupied 494 498 7 636 638 12 Total 1-4 Family Residential Real Estate 2,677 2,684 248 2,748 2,752 216 Multi-Family Residential Real Estate - - - - - - CRE Owner Occupied 3,231 2,832 169 2,667 2,257 148 CRE Non Owner Occupied 7,156 7,093 44 13,020 12,606 842 Agriculture Land 123 112 1 333 320 10 Other CRE 583 340 6 137 108 3 Total Commercial Real Estate 11,093 10,377 220 16,157 15,291 1,003 Construction - - - - - - Commercial Working Capital 713 714 9 649 650 21 Commercial Other 310 313 4 264 269 9 Total Commercial 1,023 1,027 13 913 919 30 Home Equity and Home Improvement 95 96 25 101 102 24 Consumer Finance 32 33 32 - - - Total loans with an allowance recorded $ 14,920 $ 14,217 $ 538 $ 19,919 $ 19,064 $ 1,273 * Presented gross of charge offs June 30, December 31, (In Thousands) Non-accrual loans $ 16,737 $ 24,130 Loans over 90 days past due and still accruing - - Total non-performing loans 16,737 24,130 Real estate and other assets held for sale 5,371 6,181 Total non-performing assets $ 22,108 $ 30,311 Troubled debt restructuring, still accruing $ 22,234 $ 24,686 Current 30-59 days 60-89 days 90+ days Total Total Non Residential Owner Occupied $ 141,983 $ - $ 427 $ 290 $ 717 $ 1,502 Residential Non Owner Occupied 61,597 245 157 722 1,124 1,440 Total 1-4 Family Residential Real Estate 203,580 245 584 1,012 1,841 2,942 Multi-Family Residential Real Estate 160,594 - - 2,104 2,104 2,123 CRE Owner Occupied 314,314 106 1,277 2,051 3,434 4,652 CRE Non Owner Occupied 262,442 108 2,186 358 2,652 1,093 Agriculture Land 98,224 62 427 - 489 452 Other Commercial Real Estate 42,860 - - 323 323 1,461 Total Commercial Real Estate 717,840 276 3,890 2,732 6,898 7,658 Construction 90,626 - - - - - Commercial Working Capital 153,126 145 - 327 472 397 Commercial Other 245,954 5 1,857 1,098 2,960 3,054 Total Commercial 399,080 150 1,857 1,425 3,432 3,451 Consumer Finance 14,881 16 - - 16 10 Home Equity/Home Improvement 109,229 658 254 27 939 553 Total Loans $ 1,695,830 $ 1,345 $ 6,585 $ 7,300 $ 15,230 $ 16,737 The following table presents the aging of the recorded investment in past due and non accrual loans as of December 31, 2014 by class of loans (In Thousands): Current 30-59 days 60-89 days 90+ days Total Total Non Residential Owner Occupied $ 141,597 $ 39 $ 1,079 $ 365 $ 1,483 $ 1,702 Residential Non Owner Occupied 62,991 110 105 578 793 1,625 Total 1-4 Family Residential Real Estate 204,588 149 1,184 943 2,276 3,327 Multi-Family Residential Real Estate 156,413 247 - - 247 2,546 CRE Owner Occupied 299,500 163 1,566 1,753 3,482 7,004 CRE Non Owner Occupied 243,341 119 416 1,308 1,843 2,582 Agriculture Land 93,529 - 14 - 14 686 Other Commercial Real Estate 43,835 155 - 258 413 2,359 Total Commercial Real Estate 680,205 437 1,996 3,319 5,752 12,631 Construction 73,722 - - - - - Commercial Working Capital 135,009 - - 951 951 1,103 Commercial Other 262,982 67 10 2,012 2,089 3,897 Total Commercial 397,991 67 10 2,963 3,040 5,000 Consumer Finance 15,326 68 57 - 125 12 Home Equity/Home Improvement 110,940 1,236 - 106 1,342 619 Total Loans $ 1,639,185 $ 2,204 $ 3,247 $ 7,331 $ 12,782 $ 24,135 Troubled Debt Restructurings As of June 30, 2015 and December 31, 2014, the Company had a recorded investment in troubled debt restructurings (“TDRs”) of $ 29.0 33.0 431,000 1.1 28,000 69,000 The Company offers various types of concessions when modifying a loan, however, forgiveness of principal is rarely granted. Each TDR is uniquely designed to meet the specific needs of the borrower. Commercial and industrial loans modified in a TDR often involve temporary interest-only payments, term extensions, and converting revolving credit lines to term loans. Additional collateral or an additional guarantor is often requested when granting a concession. Commercial mortgage loans modified in a TDR often involve temporary interest-only payments, re-amortization of remaining debt in order to lower payments, and sometimes reducing the interest rate lower than the current market rate. Residential mortgage loans modified in a TDR are comprised of loans where monthly payments are lowered, either through interest rate reductions or principal only payments for a period of time, to accommodate the borrowers’ financial needs, interest is capitalized into principal, or the term and amortization are extended. Home equity modifications are made infrequently and usually involve providing an interest rate that is lower than the borrower would be able to obtain due to credit issues. All retail loans where the borrower is in bankruptcy are classified as TDRs regardless of whether or not a concession is made. Of the loans modified in a TDR, $ 6.7 Loans Modified as a TDR for the Three Loans Modified as a TDR for the Six Troubled Debt Restructurings Number of Recorded Investment Number of Recorded Investment 1-4 Family Owner Occupied 1 $ 9 3 $ 226 1-4 Family Non Owner Occupied 0 - 4 65 CRE Owner Occupied 1 582 1 582 CRE Non Owner Occupied 2 260 2 260 Agriculture Land 3 1,555 3 1,555 Other CRE 0 - 0 - Commercial Working Capital 2 526 2 526 Commercial Other 1 57 1 57 Home Equity and Improvement 4 268 7 326 Consumer Finance 2 34 4 37 Total 16 $ 3,291 27 $ 3,634 53,000 116,000 Loans Modified as a TDR for the Three Loans Modified as a TDR for the Six Troubled Debt Restructurings Number of Loans Recorded Number of Loans Recorded Residential Owner Occupied 7 $ 674 15 $ 1,372 Residential Non Owner Occupied 0 - 0 - CRE Owner Occupied 0 - 0 - CRE Non Owner Occupied 0 - 1 358 Agriculture Land 0 - 0 - Other CRE 0 - 0 - Commercial working capital or other 9 727 11 1,676 Home Equity / Improvement 4 82 7 167 Consumer Finance 1 17 2 19 Total 21 $ 1,500 36 $ 3,592 The loans described above increased the allowance for loan loss by $ 65,000 5,000 Of the 2015 modifications, 9 were made TDRs due to the fact that the borrower has been in bankruptcy, 1 was made TDR due to extending the amortization, 1 was made a TDR due to an interest only period, 11 were made TDRs due to advancing funds to a watchlist credit, 1 was to term out a line of credit and 4 were made to refinance current debt for payment relief. The following table presents loans by class modified as TDRs for which there was a payment default within twelve months following the modification during the three and six month periods ended June 30, 2015 and June 30, 2014: Three Months Ended June 30, 2015 Six Months Ended June 30, 2015 Troubled Debt Restructurings Number of Recorded Investment Number of Recorded Investment 1-4 Family Owner Occupied 0 $ - 0 $ - 1-4 Family Non Owner Occupied 1 104 1 104 CRE Owner Occupied 0 - 0 - CRE Non Owner Occupied 0 - 0 - Agriculture Land 0 - 0 - Other CRE 0 - 0 - Commercial Working Capital or Other 0 - 0 - Commercial Other 0 - 0 - Home Equity and Improvement 1 22 1 22 Consumer Finance 0 - 0 - Total 2 $ 126 2 $ 126 The TDRs that subsequently defaulted described above had no effect on the allowance for loan losses for the three and six month periods ended June 30, 2015. Three Months Ended June 30, 2014 Six Months Ended June 30, 2014 Troubled Debt Restructurings Number of Loans Recorded Number of Loans Recorded Residential Owner Occupied 1 $ 67 1 $ 67 Residential Non Owner Occupied 1 183 1 183 CRE Owner Occupied 4 153 4 153 CRE Non Owner Occupied 0 - 0 - Agriculture Land 0 - 0 - Other CRE 0 - 0 - Commercial working capital or other 3 387 3 387 Home Equity / Improvement 0 - 0 - Consumer Finance 0 - 0 - Total 8 $ 790 9 $ 790 The TDRs that subsequently defaulted described above decreased the allowance for loan losses by $ 2,000 The terms of certain other loans were modified during the period ending June 30, 2015 that did not meet the definition of a TDR. The modification of these loans involved a modification of the terms of a loan to borrowers who were not experiencing financial difficulties. A total of 115 loans were modified under this definition during the three month period ended June 30, 2015 and a total of 153 loans were modified under this definition during the six month period ended June 30, 2015. In order to determine whether a borrower is experiencing financial difficulty, an evaluation is performed on the probability that the borrower will be in payment default on any of its debt in the foreseeable future without the modification. Credit Quality Indicators Loans are categorized into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. Loans are analyzed individually by classifying the loans as to credit risk. This analysis includes all non-homogeneous loans, such as commercial and commercial real estate loans and certain homogenous mortgage, home equity and consumer loans. This analysis is performed on a quarterly basis. First Defiance uses the following definitions for risk ratings: Special Mention. Substandard. Doubtful. Not Graded. Class Pass Special Substandard Doubtful Not Total 1-4 Family Owner Occupied $ 5,153 $ 155 $ 2,262 $ - $ 135,130 $ 142,700 1-4 Family Non Owner Occupied 51,673 2,071 4,229 - 4,748 62,721 Total 1-4 Family Real Estate 56,826 2,226 6,491 - 139,878 205,421 Multi-Family Residential Real Estate 158,945 214 2,653 - 886 162,698 CRE Owner Occupied 287,339 22,652 6,826 - 930 317,747 CRE Non Owner Occupied 254,929 6,053 4,061 - 52 265,095 Agriculture Land 95,480 2,215 1,019 - - 98,714 Other CRE 39,321 62 3,277 - 522 43,182 Total Commercial Real Estate 677,069 30,982 15,183 - 1,504 724,738 Construction 77,346 347 - - 12,933 90,626 Commercial Working Capital 148,750 3,662 1,187 - - 153,599 Commercial Other 240,718 3,905 4,290 - - 248,913 Total Commercial 389,468 7,567 5,477 - - 402,512 Home Equity and Home Improvement - - 560 - 109,608 110,168 Consumer Finance - - 7 - 14,890 14,897 Total Loans $ 1,359,654 $ 41,336 $ 30,371 $ - $ 279,699 $ 1,711,060 As of December 31, 2014, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows (In Thousands): Class Pass Special Substandard Doubtful Not Total 1-4 Family Owner Occupied $ 4,230 $ 131 $ 3,048 $ 365 $ 135,306 $ 143,080 1-4 Family Non Owner Occupied 51,327 2,404 4,872 7 5,174 63,784 Total 1-4 Family Real Estate 55,557 2,535 7,920 372 140,480 206,864 Multi-Family Residential Real Estate 152,290 220 3,236 - 914 156,660 CRE Owner Occupied 273,406 18,448 9,953 - 1,175 302,982 CRE Non Owner Occupied 224,073 7,898 13,186 - 27 245,184 Agriculture Land 90,875 1,849 819 - - 93,543 Other CRE 40,147 63 3,466 - 572 44,248 Total Commercial Real Estate 628,501 28,258 27,424 - 1,774 685,957 Construction 62,355 - 150 - 11,217 73,722 Commercial Working Capital 128,229 6,287 1,444 - - 135,960 Commercial Other 253,576 6,504 4,991 - - 265,071 Total Commercial 381,805 12,791 6,435 - - 401,031 Home Equity and Home Improvement - - 1,647 106 110,529 112,282 Consumer Finance - - 125 - 15,326 15,451 Total Loans $ 1,280,508 $ 43,804 $ 46,937 $ 478 $ 280,240 $ 1,651,967 Foreclosure Proceedings Consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure totaled $ 367,000 |