Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | 8. Loans September 30, December 31, (In Thousands) Real Estate: Secured by 1-4 family residential $ 209,097 $ 205,330 Secured by multi-family residential 199,829 167,558 Secured by commercial real estate 843,991 780,870 Construction 177,075 163,877 1,429,992 1,317,635 Other Loans: Commercial 456,099 419,349 Home equity and improvement 118,165 116,962 Consumer finance 17,251 16,281 591,515 552,592 Total loans 2,021,507 1,870,227 Deduct: Undisbursed loan funds (94,552) (66,902) Net deferred loan origination fees and costs (1,261) (1,108) Allowance for loan loss (25,923) (25,382) Totals $ 1,899,771 $ 1,776,835 Loan segments have been identified by evaluating the portfolio based on collateral and credit risk characteristics. Quarter Ended 1-4 Family Multi-Family Commercial Construction Commercial Home Equity Consumer Total Beginning Allowance $ 2,839 $ 2,365 $ 10,904 $ 633 $ 6,740 $ 2,278 $ 189 $ 25,948 Charge-Offs (111) 0 (79) 0 (26) (74) (24) (314) Recoveries 3 0 62 0 159 40 10 274 Provisions (299) (185) (280) (221) 1,006 (47) 41 15 Ending Allowance $ 2,432 $ 2,180 $ 10,607 $ 412 $ 7,879 $ 2,197 $ 216 $ 25,923 Quarter Ended 1-4 Family Multi-Family Commercial Construction Commercial Home Equity Consumer Total Beginning Allowance $ 2,877 $ 2,269 $ 12,096 $ 308 $ 5,567 $ 2,107 $ 160 $ 25,384 Charge-Offs (185) 0 (64) 0 (43) (110) (5) (407) Recoveries 105 0 25 0 42 76 11 259 Provisions (18) (25) 96 (69) (155) 152 (8) (27) Ending Allowance $ 2,779 $ 2,244 $ 12,153 $ 239 $ 5,411 $ 2,225 $ 158 $ 25,209 Year-to-date Period Ended 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 (203) 0 (92) 0 (381) (170) (41) (887) Recoveries 123 0 468 0 234 113 58 996 Provisions (700) 29 (1,541) (105) 2,771 (50) 28 432 Ending Allowance $ 2,432 $ 2,180 $ 10,607 $ 412 $ 7,879 $ 2,197 $ 216 $ 25,923 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 (275) (114) (250) 0 (68) (340) (21) (1,068) Recoveries 178 0 789 0 255 156 40 1,418 Provisions 382 (95) 346 18 (1,285) 705 22 93 Ending Allowance $ 2,779 $ 2,244 $ 12,153 $ 239 $ 5,411 $ 2,225 $ 158 $ 25,209 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 $ 101 $ 1 $ 89 $ - $ 24 $ 39 $ - $ 254 Collectively evaluated for impairment 2,331 2,179 10,518 412 7,855 2,158 216 25,669 Acquired with deteriorated credit quality - - - - - - - - Total ending allowance balance $ 2,432 $ 2,180 $ 10,607 $ 412 $ 7,879 $ 2,197 $ 216 $ 25,923 Loans: Loans individually evaluated for impairment $ 6,767 $ 3,580 $ 16,885 $ - $ 4,416 $ 1,424 $ 66 $ 33,138 Loans collectively evaluated for impairment 202,600 196,409 829,692 82,254 453,130 117,290 17,186 1,898,561 Loans acquired with deteriorated credit quality - - 144 - 12 - - 156 Total ending loans balance $ 209,367 $ 199,989 $ 846,721 $ 82,254 $ 457,558 $ 118,714 $ 17,252 $ 1,931,855 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 September 30, 2016 Nine Months Ended September 30, 2016 Average Interest Cash Basis Average Interest Cash Basis Residential Owner Occupied $ 3,876 $ 34 $ 33 $ 3,892 $ 109 $ 106 Residential Non Owner Occupied 2,935 29 29 3,234 95 94 Total Residential Real Estate 6,811 63 62 7,126 204 200 Construction - - - - - - Multi-Family 3,607 14 14 4,087 68 68 CRE Owner Occupied 7,171 30 30 7,810 134 115 CRE Non Owner Occupied 6,341 73 73 5,220 178 175 Agriculture Land 1,851 16 2 2,427 66 16 Other CRE 1,570 13 13 1,556 31 31 Total Commercial Real Estate 16,933 132 118 17,013 409 337 Commercial Working Capital 2,259 26 11 1,769 56 33 Commercial Other 2,198 8 7 2,742 36 34 Total Commercial 4,457 34 18 4,511 92 67 Home Equity and Home Improvement 1,446 12 12 1,631 40 40 Consumer Finance 65 1 1 69 3 3 Total Impaired Loans $ 33,319 $ 256 $ 225 $ 34,437 $ 816 $ 715 Three Months Ended September 30, 2015 Nine Months Ended September 30, 2015 Average Interest Cash Basis Average Interest Cash Basis Residential Owner Occupied $ 5,750 $ 67 $ 66 $ 5,854 $ 203 $ 201 Residential Non Owner Occupied 3,762 38 38 4,045 117 117 Total Residential Real Estate 9,512 105 104 9,899 320 318 Construction - - - 50 2 2 Multi-Family 3,168 12 11 2,680 25 25 CRE Owner Occupied 6,475 39 39 6,566 117 117 CRE Non Owner Occupied 2,696 29 29 7,445 273 273 Agriculture Land 2,236 21 2 1,741 53 30 Other CRE 1,509 5 5 2,023 31 30 Total Commercial Real Estate 12,916 94 75 17,775 474 450 Commercial Working Capital 1,030 11 11 1,478 38 36 Commercial Other 2,989 7 6 3,483 33 41 Total Commercial 4,019 18 17 4,961 71 77 Home Equity and Home Improvement 2,160 19 19 2,257 60 60 Consumer Finance 58 1 2 55 2 3 Total Impaired Loans $ 31,833 $ 249 $ 228 $ 37,677 $ 954 $ 935 September 30, 2016 December 31, 2015 Unpaid Recorded Allowance Unpaid Recorded Allowance With no allowance recorded: Residential Owner Occupied $ 1,591 $ 1,569 $ - $ 1,383 $ 1,360 $ - Residential Non Owner Occupied 2,486 2,478 - 2,147 2,141 - Total 1-4 Family Residential Real Estate 4,077 4,047 - 3,530 3,501 - Multi-Family Residential Real Estate 3,675 3,525 - 3,463 3,313 - CRE Owner Occupied 5,646 5,331 - 4,869 4,520 - CRE Non Owner Occupied 6,373 5,940 - 7,932 7,685 - Agriculture Land 1,841 1,884 - 3,546 3,596 - Other CRE 1,256 1,152 - 4,076 4,046 - Total Commercial Real Estate 15,116 14,307 - 20,423 19,847 - Construction - - - - - - Commercial Working Capital 2,176 2,162 - 1,644 1,648 - Commercial Other 2,005 1,917 - 3,573 3,607 - Total Commercial 4,181 4,079 - 5,217 5,255 - Home Equity and Home Improvement 716 670 - 817 772 - Consumer Finance 59 59 - 60 59 - Total loans with no allowance recorded $ 27,824 $ 26,687 $ - $ 33,510 $ 32,747 $ - With an allowance recorded: Residential Owner Occupied $ 2,340 $ 2,313 $ 93 $ 2,918 $ 2,837 $ 188 Residential Non Owner Occupied 415 407 8 1,231 1,236 13 Total 1-4 Family Residential Real Estate 2,755 2,720 101 4,149 4,073 201 Multi-Family Residential Real Estate 54 55 1 - - - CRE Owner Occupied 2,261 1,791 79 3,250 2,767 132 CRE Non Owner Occupied 340 341 4 385 308 2 Agriculture Land 46 47 1 68 69 2 Other CRE 822 399 5 926 502 3 Total Commercial Real Estate 3,469 2,578 89 4,629 3,646 139 Construction - - - - - - Commercial Working Capital 107 107 2 594 596 62 Commercial Other 367 230 22 252 256 1 Total Commercial 474 337 24 846 852 63 Home Equity and Home Improvement 788 754 39 724 719 34 Consumer Finance 8 7 - 12 12 - Total loans with an allowance recorded $ 7,548 $ 6,451 $ 254 $ 10,360 $ 9,302 $ 437 * Presented gross of charge offs September 30, December 31, (In Thousands) Non-accrual loans $ 18,198 $ 16,261 Loans over 90 days past due and still accruing - - Total non-performing loans 18,198 16,261 Real estate and other assets held for sale 704 1,321 Total non-performing assets $ 18,902 $ 17,582 Troubled debt restructuring, still accruing $ 9,113 $ 11,178 Current 30-59 days 60-89 days 90+ days Total Total Non Residential Owner Occupied $ 141,829 $ 30 $ 573 $ 847 $ 1,450 $ 1,834 Residential Non Owner Occupied 65,410 481 78 119 678 1,081 Total 1-4 Family Residential Real Estate 207,239 511 651 966 2,128 2,915 Multi-Family Residential Real Estate 199,989 - - - - 2,713 CRE Owner Occupied 348,245 134 1,128 1,678 2,940 4,972 CRE Non Owner Occupied 331,569 158 488 272 918 1,753 Agriculture Land 107,249 53 - - 53 857 Other Commercial Real Estate 55,498 - - 249 249 1,004 Total Commercial Real Estate 842,561 345 1,616 2,199 4,160 8,586 Construction 82,254 - - - - - Commercial Working Capital 202,496 - 790 39 829 1,207 Commercial Other 252,800 188 17 1,228 1,433 2,059 Total Commercial 455,296 188 807 1,267 2,262 3,266 Home Equity/Home Improvement 117,737 657 162 158 977 719 Consumer Finance 17,057 131 64 - 195 13 Total Loans $ 1,922,133 $ 1,832 $ 3,300 $ 4,590 $ 9,722 $ 18,212 Current 30-59 days 60-89 days 90+ days Total Total Non 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 September 30, 2016 and December 31, 2015, the Company had a recorded investment in troubled debt restructurings (“TDRs”) of $ 14.7 17.6 254,000 335,000 10,000 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, $ 5.5 Loans Modified as a TDR for the Three Loans Modified as a TDR for the Nine Troubled Debt Restructurings Number of Recorded Investment Number of Recorded Investment 1-4 Family Owner Occupied 5 $ 86 10 $ 208 1-4 Family Non Owner Occupied 1 8 3 128 Multi Family 0 - 1 54 CRE Owner Occupied 0 - 0 - CRE Non Owner Occupied 2 215 4 870 Agriculture Land 1 46 1 46 Other CRE 0 - 0 - Commercial Working Capital 0 - 1 226 Commercial Other 0 - 1 590 Home Equity and Improvement 4 52 8 340 Consumer Finance 1 13 2 16 Total 14 $ 420 31 $ 2,478 The loans described above increased the ALLL by $ 31,000 9,000 Loans Modified as a TDR for the Three Loans Modified as a TDR for the Nine Troubled Debt Restructurings Number of Recorded Investment Number of Recorded Investment 1-4 Family Owner Occupied 0 $ - 3 $ 226 1-4 Family Non Owner Occupied 0 - 4 63 CRE Owner Occupied 1 72 2 632 CRE Non Owner Occupied 0 - 2 252 Agriculture Land 0 - 3 1,552 Other CRE 0 - 0 - Commercial Working Capital 2 114 4 119 Commercial Other 1 19 2 73 Home Equity and Improvement 4 114 11 217 Consumer Finance 2 2 6 37 Total 10 $ 321 37 $ 3,171 The loans described above decreased the ALLL by $ 3,000 23,000 Of the 2016 modifications, 10 were made TDRs due to the fact that the borrower has been in bankruptcy, 1 was made a TDR due to an interest only period, 6 were made TDRs due to extending the maturity, 4 were made TDRs due to advancing funds to a watchlist credit, 1 was to term out a line of credit and 9 were made to refinance current debt for payment relief. Three Months Ended September 30, Nine Months Ended September 30, Troubled Debt Restructurings Number of Recorded Investment Number of Recorded Investment 1-4 Family Owner Occupied 1 $ 190 1 $ 190 1-4 Family Non Owner Occupied 0 - 0 - CRE Owner Occupied 0 - 0 - CRE Non Owner Occupied 0 - 1 11 Agriculture Land 0 - 0 - Other CRE 0 - 0 - Commercial Working Capital or Other 0 - 0 - Commercial Other 0 - 0 - Home Equity and Improvement 0 - 0 - Consumer Finance 0 - 0 - Total 1 $ 190 2 $ 201 Three Months Ended September 30, Nine Months Ended September 30, Troubled Debt Restructurings Number of Recorded Investment Number of Recorded Investment 1-4 Family Owner Occupied 0 $ - 0 $ - 1-4 Family Non Owner Occupied 0 - 1 105 CRE Owner Occupied 0 - 0 - CRE Non Owner Occupied 0 - 0 - Agriculture Land 0 - 0 - Other CRE 0 - 0 - Commercial Working Capital or Other 1 120 1 120 Commercial Other 5 1,829 5 1,829 Home Equity and Improvement 0 - 1 22 Consumer Finance 0 - 0 - Total 6 $ 1,949 8 $ 2,076 The TDRs that subsequently defaulted described above had no effect on the allowance for loan losses for the three and nine month periods ended September 30, 2015. The terms of certain other loans were modified during the period ending September 30, 2016 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 81 loans were modified under this definition during the three month period ended September 30, 2016 and a total of 284 loans were modified under this definition during the nine month period ended September 30, 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. Class Pass Special Substandard Doubtful Not Total 1-4 Family Owner Occupied $ 5,585 $ 286 $ 1,637 $ - $ 135,771 $ 143,279 1-4 Family Non Owner Occupied 57,485 926 3,581 - 4,096 66,088 Total 1-4 Family Real Estate 63,070 1,212 5,218 - 139,867 209,367 Multi-Family Residential Real Estate 195,606 310 3,958 - 115 199,989 CRE Owner Occupied 319,942 23,239 7,564 - 440 351,185 CRE Non Owner Occupied 325,109 1,016 6,355 - 6 332,486 Agriculture Land 102,228 2,869 2,206 - - 107,303 Other CRE 52,585 - 2,420 - 742 55,747 Total Commercial Real Estate 799,864 27,124 18,545 - 1,188 846,721 Construction 63,927 - - - 18,327 82,254 Commercial Working Capital 189,208 11,509 2,608 - - 203,325 Commercial Other 244,846 6,579 2,808 - - 254,233 Total Commercial 434,054 18,088 5,416 - - 457,558 Home Equity and Home Improvement - - 691 - 118,023 118,714 Consumer Finance - - 13 - 17,239 17,252 Total Loans $ 1,556,521 $ 46,734 $ 33,841 $ - $ 294,759 $ 1,931,855 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): Class Pass Special Substandard Doubtful Not 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 $ 142,000 |