Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | 8. Loans March 31, December 31, (In Thousands) Real Estate: Secured by 1-4 family residential $ 208,818 $ 205,330 Secured by multi-family residential 181,486 167,558 Secured by commercial real estate 807,982 780,870 Construction 145,635 163,877 1,343,921 1,317,635 Other Loans: Commercial 412,911 419,349 Home equity and improvement 116,856 116,962 Consumer finance 15,679 16,281 545,446 552,592 Total loans 1,889,367 1,870,227 Deduct: Undisbursed loan funds (63,267) (66,902) Net deferred loan origination fees and costs (1,114) (1,108) Allowance for loan loss (25,668) (25,382) Totals $ 1,799,318 $ 1,776,835 Loan segments have been identified by evaluating the portfolio based on collateral and credit risk characteristics. Quarter Ended March 31, 1-4 Family Multi-Family Commercial Construction Commercial Home Equity Consumer Total Beginning Allowance $ 3,212 $ 2,151 $ 11,772 $ 517 $ 5,255 $ 2,304 $ 171 $ 25,382 Charge-Offs (55) 0 (13) 0 (336) (30) 0 (434) Recoveries 86 0 177 0 19 39 35 356 Provisions (134) 99 (292) (28) 882 (81) (82) 364 Ending Allowance $ 3,109 $ 2,250 $ 11,644 $ 489 $ 5,820 $ 2,232 $ 124 $ 25,668 Quarter Ended March 31, 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 (78) 0 (155) 0 (2) (43) (3) (281) Recoveries 19 0 597 0 40 29 12 697 Provisions 48 101 (26) 82 219 (270) (34) 120 Ending Allowance $ 2,483 $ 2,554 $ 11,684 $ 303 $ 6,766 $ 1,420 $ 92 $ 25,302 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 $ 197 $ - $ 154 $ - $ 11 $ 38 $ - $ 400 Collectively evaluated for impairment 2,912 2,250 11,490 489 5,809 2,194 124 25,268 Acquired with deteriorated credit quality - - - - - - - - Total ending allowance balance $ 3,109 $ 2,250 $ 11,644 $ 489 $ 5,820 $ 2,232 $ 124 $ 25,668 Loans: Loans individually evaluated for impairment $ 7,570 $ 4,543 $ 18,517 $ - $ 5,423 $ 1,740 $ 69 $ 37,862 Loans collectively evaluated for impairment 201,561 177,091 791,608 82,208 408,820 115,641 15,603 1,792,532 Loans acquired with deteriorated credit quality - - 150 - 15 - - 165 Total ending loans balance $ 209,131 $ 181,634 $ 810,275 $ 82,208 $ 414,258 $ 117,381 $ 15,672 $ 1,830,559 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, 2015 (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 $ 201 $ - $ 139 $ - $ 63 $ 34 $ - $ 437 Collectively evaluated for impairment 3,011 2,151 11,633 517 5,192 2,270 171 24,945 Acquired with deteriorated credit quality - - - - - - - - Total ending allowance balance $ 3,212 $ 2,151 $ 11,772 $ 517 $ 5,255 $ 2,304 $ 171 $ 25,382 Loans: Loans individually evaluated for impairment $ 7,574 $ 3,313 $ 23,493 $ - $ 6,107 $ 1,491 $ 71 $ 42,049 Loans collectively evaluated for impairment 198,106 164,382 759,281 96,845 414,527 115,977 16,199 1,765,317 Loans acquired with deteriorated credit quality - - 153 - 16 - - 169 Total ending loans balance $ 205,680 $ 167,695 $ 782,927 $ 96,845 $ 420,650 $ 117,468 $ 16,270 $ 1,807,535 Three Months Ended March 31, 2016 Interest Cash Basis Average Income Income Balance Recognized Recognized Residential Owner Occupied $ 4,025 $ 39 $ 39 Residential Non Owner Occupied 3,557 35 34 Total Residential Real Estate 7,582 74 73 Multi-Family 4,593 30 30 CRE Owner Occupied 9,090 62 48 CRE Non Owner Occupied 4,418 53 49 Agriculture Land 3,593 35 12 Other CRE 1,422 4 4 Total Commercial Real Estate 18,523 154 113 Construction - - - Commercial Working Capital 1,513 15 15 Commercial Other 4,245 19 18 Total Commercial 5,758 34 33 Home Equity and Home Improvement 1,749 15 15 Consumer Finance 73 1 1 Total Impaired Loans $ 38,278 $ 308 $ 265 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 March 31, 2015 Interest Cash Basis Average Income Income Balance Recognized Recognized Residential Owner Occupied $ 5,992 $ 68 $ 68 Residential Non Owner Occupied 4,347 41 40 Total Residential Real Estate 10,339 109 108 Multi-Family 2,463 8 8 CRE Owner Occupied 6,513 37 39 CRE Non Owner Occupied 10,187 133 135 Agriculture Land 760 7 13 Other CRE 2,441 10 9 Total Commercial Real Estate 19,901 187 196 Construction 150 2 2 Commercial Working Capital 1,866 13 13 Commercial Other 3,839 13 18 Total Commercial 5,705 26 31 Home Equity and Home Improvement 2,202 20 20 Consumer Finance 43 - - Total Impaired Loans $ 40,803 $ 352 $ 365 The following table presents loans individually evaluated for impairment by class of loans (In Thousands): March 31, 2016 December 31, 2015 Allowance Allowance Unpaid for Loan Unpaid for Loan Principal Recorded Losses Principal Recorded Losses Balance* Investment Allocated Balance* Investment Allocated With no allowance recorded: Residential Owner Occupied $ 1,450 $ 1,455 $ - $ 1,383 $ 1,360 $ - Residential Non Owner Occupied 2,237 2,232 - 2,147 2,141 - Total 1-4 Family Residential Real Estate 3,687 3,687 - 3,530 3,501 - Multi-Family Residential Real Estate 4,688 4,543 - 3,463 3,313 - CRE Owner Occupied 6,725 6,290 - 4,869 4,520 - CRE Non Owner Occupied 3,441 3,183 - 7,932 7,685 - Agriculture Land 3,529 3,602 - 3,546 3,596 - Other CRE 964 934 - 4,076 4,046 - Total Commercial Real Estate 14,659 14,009 - 20,423 19,847 - Construction - - - - - - Commercial Working Capital 1,264 1,267 - 1,644 1,648 - Commercial Other 4,084 3,715 - 3,573 3,607 - Total Commercial 5,348 4,982 - 5,217 5,255 - Home Equity and Home Improvement 832 787 - 817 772 - Consumer Finance 68 69 - 60 59 - Total loans with no allowance recorded $ 29,282 $ 28,077 $ - $ 33,510 $ 32,747 $ - With an allowance recorded: Residential Owner Occupied $ 2,609 $ 2,556 $ 183 $ 2,918 $ 2,837 $ 188 Residential Non Owner Occupied 1,322 1,327 14 1,231 1,236 13 Total 1-4 Family Residential Real Estate 3,931 3,883 197 4,149 4,073 201 Multi-Family Residential Real Estate - - - - - - CRE Owner Occupied 3,191 2,732 140 3,250 2,767 132 CRE Non Owner Occupied 1,291 1,225 10 385 308 2 Agriculture Land 68 69 1 68 69 2 Other CRE 905 482 3 926 502 3 Total Commercial Real Estate 5,455 4,508 154 4,629 3,646 139 Construction - - - - - - Commercial Working Capital 200 201 9 594 596 62 Commercial Other 236 240 2 252 256 1 Total Commercial 436 441 11 846 852 63 Home Equity and Home Improvement 957 953 38 724 719 34 Consumer Finance - - - 12 12 - Total loans with an allowance recorded $ 10,779 $ 9,785 $ 400 $ 10,360 $ 9,302 $ 437 * Presented gross of charge offs March 31, December 31, 2016 2015 (In Thousands) Non-accrual loans $ 17,707 $ 16,261 Loans over 90 days past due and still accruing - - Total non-performing loans 17,707 16,261 Real estate and other assets held for sale 1,111 1,321 Total non-performing assets $ 18,818 $ 17,582 Troubled debt restructuring, still accruing $ 11,284 $ 11,178 Total Total Non Current 30-59 days 60-89 days 90+ days Past Due Accrual Residential Owner Occupied $ 141,424 $ 83 $ 204 $ 744 $ 1,031 $ 1,766 Residential Non Owner Occupied 65,891 63 54 668 785 1,359 Total 1-4 Family Residential Real Estate 207,315 146 258 1,412 1,816 3,125 Multi-Family Residential Real Estate 179,659 - - 1,975 1,975 2,356 CRE Owner Occupied 342,703 54 - 491 545 4,843 CRE Non Owner Occupied 310,095 1,002 108 636 1,746 1,165 Agriculture Land 104,271 186 - - 186 681 Other Commercial Real Estate 50,444 - - 285 285 1,293 Total Commercial Real Estate 807,513 1,242 108 1,412 2,762 7,982 Construction 82,208 - - - - - Commercial Working Capital 170,282 10 - 141 151 569 Commercial Other 241,556 163 - 2,106 2,269 2,990 Total Commercial 411,838 173 - 2,247 2,420 3,559 Home Equity/Home Improvement 116,440 792 113 36 941 674 Consumer Finance 15,616 51 5 - 56 13 Total Loans $ 1,820,589 $ 2,404 $ 484 $ 7,082 $ 9,970 $ 17,709 The following table presents the aging of the recorded investment in past due and non-accrual loans as of December 31, 2015 by class of loans (In Thousands): Total Total Non Current 30-59 days 60-89 days 90+ days Past Due Accrual Residential Owner Occupied $ 138,974 $ 159 $ 673 $ 391 $ 1,223 $ 1,428 Residential Non Owner Occupied 64,577 324 356 226 906 1,179 Total 1-4 Family Residential Real Estate 203,551 483 1,029 617 2,129 2,607 Multi-Family Residential Real Estate 165,671 - - 2,024 2,024 2,417 CRE Owner Occupied 322,940 772 1,218 1,266 3,256 4,141 CRE Non Owner Occupied 304,166 - 106 538 644 1,229 Agriculture Land 98,055 57 - - 57 695 Other Commercial Real Estate 53,494 - - 315 315 1,364 Total Commercial Real Estate 778,655 829 1,324 2,119 4,272 7,429 Construction 96,845 - - - - - Commercial Working Capital 168,938 16 - 154 170 251 Commercial Other 249,070 203 46 2,223 2,472 2,833 Total Commercial 418,008 219 46 2,377 2,642 3,084 Home Equity and Home Improvement 116,599 733 92 44 869 689 Consumer Finance 16,216 27 3 24 54 36 Total Loans $ 1,795,545 $ 2,291 $ 2,494 $ 7,205 $ 11,990 $ 16,262 Troubled Debt Restructurings As of March 31, 2016 and December 31, 2015, the Company had a recorded investment in troubled debt restructurings (“TDRs”) of $ 17.5 17.6 283,000 335,000 21,000 48,000 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, $ 6.2 Loans Modified as a TDR for the Three Loans Modified as a TDR for the Three Months Ended March 31, 2015 Months Ended March 31, 2015 ($ in thousands) ($ in thousands) Number of Recorded Investment Number of Recorded Investment Troubled Debt Restructurings Loans (as of period end) Loans (as of period end) 1-4 Family Owner Occupied 1 $ 9 3 $ 228 1-4 Family Non Owner Occupied 2 127 4 68 CRE Owner Occupied 0 - 0 - CRE Non Owner Occupied 0 - 0 - Agriculture Land 0 - 0 - Other CRE 0 - 0 - Commercial Working Capital 0 - 0 - Commercial Other 0 - 0 - Home Equity and Improvement 5 297 3 59 Consumer Finance 2 5 5 10 Total 10 $ 438 15 $ 365 The loans described above decreased the ALLL by $ 15,000 64,000 Of the 2016 modifications, 5 were made TDRs due to the fact that the borrower has been in bankruptcy, 1 was made TDR due to granting interest only payments, 1 was made TDR due to extending the maturity date, and 3 were made TDRs because the current debt was refinanced for payment relief. Three Months Ended March 31, 2016 Three Months Ended March 31, 2016 ($ in thousands) ($ in thousands) Troubled Debt Restructurings Number of Recorded Investment Number of Recorded Investment That Subsequently Defaulted Loans (as of period end) Loans (as of period end) 1-4 Family Owner Occupied 0 $ - 1 $ 126 1-4 Family Non Owner Occupied 0 - 1 104 CRE Owner Occupied 0 - 0 - CRE Non Owner Occupied 0 - 2 387 Agriculture Land 0 - 0 - Other CRE 0 - 0 - Commercial Working Capital or Other 0 - 1 120 Commercial Other 0 - 0 - Home Equity and Improvement 0 - 0 - Consumer Finance 0 - 0 - Total 0 $ - 5 $ 737 The TDRs that subsequently defaulted described above had no affect on the allowance for loan losses for the three month periods ending March 31, 2016 or 2015. The terms of certain other loans were modified during the period ending March 31, 2016 and the modifications did not meet the definition of a TDR. The modification of these loans involved a modification of the terms of the loans for borrowers who were not experiencing financial difficulties. A total of 63 loans were modified under this definition during the three month period ended March 31, 2016. 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. Loans classified as special mention have a potential weakness that deserves management's close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution's credit position at some future date. Substandard. Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Doubtful. Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. Not Graded. Loans classified as not graded are generally smaller balance residential real estate, home equity and consumer installment loans which are originated primarily by using an automated underwriting system. These loans are monitored based on their delinquency status and are evaluated individually only if they are seriously delinquent. Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass rated loans. Special Not Class Pass Mention Substandard Doubtful Graded Total 1-4 Family Owner Occupied $ 4,940 $ 121 $ 2,298 $ - $ 135,096 $ 142,455 1-4 Family Non Owner Occupied 56,739 1,263 4,416 - 4,258 66,676 Total 1-4 Family Real Estate 61,679 1,384 6,714 - 139,354 209,131 Multi-Family Residential Real Estate 176,033 488 4,996 - 117 181,634 CRE Owner Occupied 315,063 17,831 9,847 - 616 343,357 CRE Non Owner Occupied 304,891 884 5,943 - 13 311,731 Agriculture Land 98,378 2,253 3,826 - - 104,457 Other CRE 47,059 583 2,572 - 516 50,730 Total Commercial Real Estate 765,391 21,551 22,188 - 1,145 810,275 Construction 60,945 2,293 - - 18,970 82,208 Commercial Working Capital 160,656 7,392 2,384 - - 170,432 Commercial Other 234,166 4,305 5,355 - - 243,826 Total Commercial 394,822 11,697 7,739 - - 414,258 Home Equity and Home Improvement - - 738 - 116,643 117,381 Consumer Finance - - 14 - 15,658 15,672 Total Loans $ 1,458,870 $ 37,413 $ 42,389 $ - $ 291,887 $ 1,830,559 As of December 31, 2015, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows (In Thousands): Special Not Class Pass Mention Substandard Doubtful Graded Total Residential Owner Occupied $ 5,828 $ 123 $ 2,427 $ - $ 131,820 $ 140,198 Residential Non Owner Occupied 55,169 1,420 4,439 - 4,454 65,482 Total 1-4 Family Real Estate 60,997 1,543 6,866 - 136,274 205,680 Multi-Family Residential Real Estate 163,405 498 3,675 - 117 167,695 CRE Owner Occupied 297,856 17,896 9,730 - 714 326,196 CRE Non Owner Occupied 293,057 2,143 9,595 - 15 304,810 Agriculture Land 92,262 1,947 3,903 - - 98,112 Other CRE 47,109 469 5,739 - 492 53,809 Total Commercial Real Estate 730,284 22,455 28,967 - 1,221 782,927 Construction 76,152 2,159 - - 18,534 96,845 Commercial Working Capital 163,071 2,497 3,540 - - 169,108 Commercial Other 243,308 2,706 5,528 - - 251,542 Total Commercial 406,379 5,203 9,068 - - 420,650 Home Equity and Home Improvement - - 689 - 116,779 117,468 Consumer Finance - - 15 - 16,255 16,270 Total Loans $ 1,437,217 $ 31,858 $ 49,280 $ - $ 289,180 $ 1,807,535 Foreclosure Proceedings Consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure totaled $ 359,000 |