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Loans | 12 Months Ended
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Dec. 31, 2017
Receivables [Abstract] |
Loans | Note 4 Loans The Company originates commercial, industrial and real estate loans to businesses and faith-based ministries throughout the metropolitan St. Louis, Missouri area, Orange County, California and other selected cities in the United States. The Company does not have any particular concentration of credit in any one economic sector; however, a substantial portion of the commercial and industrial loans is extended to privately-held commercial companies and franchises in these market areas, and are generally secured by the assets of the business. The Company also has a substantial portion of real estate loans secured by mortgages that are extended to faith-based ministries in its market area and selected cities in the United States. A summary of loan categories is as follows:
|  | December 31,
(In thousands) |  | 2017 |  | 2016
Commercial and industrial |  | $ | 236,394 |  | $ | 214,767
Real estate |  |  |  |  |  |
Commercial: |  |  |  |  |  |
Mortgage |  |  | 94,675 |  |  | 104,779
Construction |  |  | 9,359 |  |  | 6,325
Church, church-related: |  |  |  |  |  |
Mortgage |  |  | 316,073 |  |  | 321,168
Construction |  |  | 25,948 |  |  | 11,152
Industrial Revenue Bonds |  |  | 3,374 |  |  | 6,639
Other |  |  | 408 |  |  | 36
Total loans |  | $ | 686,231 |  | $ | 664,866
The following table presents the aging of loans by loan categories at December 31, 2017:
| Performing |  | Nonperforming |  |  |
|  |  |  |  |  |  |  |  |  | 90 Days |  |  |  |  |  |
|  |  |  | 30-59 |  | 60-89 |  | and |  | Non- |  | Total
(In thousands) | Current |  | Days |  | Days |  | Over |  | accrual |  | Loans
Commercial and industrial | $ | 236,394 |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | 236,394
Real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Mortgage |  | 94,675 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 94,675
Construction |  | 9,359 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 9,359
Church, church-related: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Mortgage |  | 316,073 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 316,073
Construction |  | 25,948 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 25,948
Industrial Revenue Bonds |  | 3,374 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 3,374
Other |  | 408 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 408
Total | $ | 686,231 |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | 686,231
The following table presents the aging of loans by loan categories at December 31, 2016:
|  | Performing |  | Nonperforming |  |  |
|  |  |  |  |  |  |  |  |  |  | 90 Days |  |  |  |  |  |
|  |  |  |  | 30-59 |  | 60-89 |  | and |  | Non- |  | Total
(In thousands) |  | Current |  | Days |  | Days |  | Over |  | accrual |  | Loans
Commercial and industrial |  | $ | 214,767 |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | 214,767
Real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Mortgage |  |  | 104,534 |  |  | — |  |  | — |  |  | — |  |  | 245 |  |  | 104,779
Construction |  |  | 6,325 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 6,325
Church, church-related: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Mortgage |  |  | 321,168 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 321,168
Construction |  |  | 11,152 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 11,152
Industrial Revenue Bonds |  |  | 6,639 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 6,639
Other |  |  | 24 |  |  | 12 |  |  | — |  |  | — |  |  | — |  |  | 36
Total |  | $ | 664,609 |  | $ | 12 |  | $ | — |  | $ | — |  | $ | 245 |  | $ | 664,866
The following table presents the credit exposure of the loan portfolio by internally assigned credit grade as of December 31, 2017:
|  | Loans |  | Performing |  | Nonperforming |  |  |
|  | Subject to |  | Loans Subject to |  | Loans Subject |  |  |
|  | Normal |  | Special |  | to Special |  |  |
(In thousands) |  | Monitoring(1) |  | Monitoring(2) |  | Monitoring(2) |  | Total Loans
Commercial and industrial |  | $ | 234,271 |  | $ | 2,123 |  | $ | — |  | $ | 236,394
Real estate |  |  |  |  |  |  |  |  |  |  |  |
Commercial: |  |  |  |  |  |  |  |  |  |  |  |
Mortgage |  |  | 93,788 |  |  | 887 |  |  | — |  |  | 94,675
Construction |  |  | 9,359 |  |  | — |  |  | — |  |  | 9,359
Church, church-related: |  |  |  |  |  |  |  |  |  |  |  |
Mortgage |  |  | 316,042 |  |  | 31 |  |  | — |  |  | 316,073
Construction |  |  | 25,948 |  |  | — |  |  | — |  |  | 25,948
Industrial Revenue Bonds |  |  | 3,374 |  |  | — |  |  | — |  |  | 3,374
Other |  |  | 408 |  |  | — |  |  | — |  |  | 408
Total |  | $ | 683,190 |  | $ | 3,041 |  | $ | — |  | $ | 686,231
(1) | Loans subject to normal monitoring involve borrowers of acceptable-to-strong credit quality and risk, who have the apparent ability to satisfy their loan obligation.
(2) | Loans subject to special monitoring possess some credit deficiency or potential weakness which requires a high level of management attention.
The following table presents the credit exposure of the loan portfolio by internally assigned credit grade as of December 31, 2016:
|  | Loans |  | Performing |  | Nonperforming |  |  |
|  | Subject to |  | Loans Subject to |  | Loans Subject to |  |  |
|  | Normal |  | Special |  | Special |  |  |
(In thousands) |  | Monitoring(1) |  | Monitoring(2) |  | Monitoring(2) |  | Total Loans
Commercial and industrial |  | $ | 213,024 |  | $ | 1,743 |  | $ | — |  | $ | 214,767
Real estate |  |  |  |  |  |  |  |  |  |  |  |
Commercial: |  |  |  |  |  |  |  |  |  |  |  |
Mortgage |  |  | 103,778 |  |  | 756 |  |  | 245 |  |  | 104,779
Construction |  |  | 6,325 |  |  | — |  |  | — |  |  | 6,325
Church, church-related: |  |  |  |  |  |  |  |  |  |  |  |
Mortgage |  |  | 318,030 |  |  | 3,138 |  |  | — |  |  | 321,168
Construction |  |  | 11,152 |  |  | — |  |  | — |  |  | 11,152
Industrial Revenue Bonds |  |  | 6,639 |  |  | — |  |  | — |  |  | 6,639
Other |  |  | 36 |  |  | — |  |  | — |  |  | 36
Total |  | $ | 658,984 |  | $ | 5,637 |  | $ | 245 |  | $ | 664,866
(1) | Loans subject to normal monitoring involve borrowers of acceptable-to-strong credit quality and risk, who have the apparent ability to satisfy their loan obligation.
(2) | Loans subject to special monitoring possess some credit deficiency or potential weakness which requires a high level of management attention.
Impaired loans consist primarily of nonaccrual loans, loans greater than 90 days past due and still accruing interest and troubled debt restructurings, both performing and non-performing. Troubled debt restructuring involves the granting of a concession to a borrower experiencing financial difficulty resulting in the modification of terms of the loan, such as changes in payment schedule or interest rate. There was no ALLL related to impaired loans at both December 31, 2017 and 2016. Nonaccrual loans were $0 and $245,000 at December 31, 2017 and 2016, respectively. There were no loans delinquent 90 days or more and still accruing interest at both December 31, 2017 and 2016. At December 31, 2017 and 2016, there were no loans classified as troubled debt restructuring. The average balances of impaired loans during 2017, 2016 and 2015 were $166,000, $333,000, and $3,188,000, respectively. Income that would have been recognized on non-accrual loans under the original terms of the contract was $24,000, $66,000 and $390,000 for 2017, 2016 and 2015, respectively. Income that was recognized on nonaccrual loans was $17,000, $47,000 and $34,000 for 2017, 2016 and 2015 respectively. There were no foreclosed assets as of December 31, 2017 or December 31, 2016. There was no recorded investment or unpaid principal balance for impaired loans at December 31, 2017. The following table presents the recorded investment and unpaid principal balance for impaired loans at December 31, 2016:
|  |  |  |  |  |  |  | Related
|  |  |  |  | Unpaid |  | Allowance
|  | Recorded |  | Principal |  | for Loan
(In thousands) |  | Investment |  | Balance |  | Losses
Commercial and industrial: |  |  |  |  |  |  |  |  |
Nonaccrual |  | $ | — |  | $ | — |  | $ | —
Real estate |  |  |  |  |  |  |  |  |
Commercial – Mortgage: |  |  |  |  |  |  |  |  |
Nonaccrual |  |  | 245 |  |  | 245 |  |  | —
Church – Mortgage: |  |  |  |  |  |  |  |  |
Nonaccrual |  |  | — |  |  | — |  |  | —
Total impaired loans |  | $ | 245 |  | $ | 245 |  | $ | —
The Company does not record loans at fair value on a recurring basis. Once a loan is identified as impaired, management measures impairment in accordance with FASB ASC 310. At December 31, 2017, there were no impaired loans. At December 31, 2016, all impaired loans were evaluated based on the fair value of the collateral. The fair value of the collateral is based upon an observable market price or current appraised value and therefore, the Company classifies these assets as nonrecurring Level 3. A summary of the activity in the allowance for loan losses is as follows:
|  |  | December 31, |  |  | Charge- |  |  |  |  |  |  |  |  |  |  | December 31,
(In thousands) |  |  | 2016 |  |  | Offs |  |  | Recoveries |  |  | Provision |  | 2017
Commercial and industrial |  |  | $ | 3,261 |  |  | $ | — |  |  | $ | 30 |  |  | $ | 361 |  |  | $ | 3,652
Real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Mortgage |  |  |  | 1,662 |  |  |  | — |  |  |  | — |  |  |  | (268 | ) |  |  | 1,394
Construction |  |  |  | 47 |  |  |  | — |  |  |  | — |  |  |  | 23 |  |  |  | 70
Church, church-related: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Mortgage |  |  |  | 4,027 |  |  |  | — |  |  |  | — |  |  |  | (65 | ) |  |  | 3,962
Construction |  |  |  | 85 |  |  |  | — |  |  |  | — |  |  |  | 111 |  |  |  | 196
Industrial Revenue Bond |  |  |  | 101 |  |  |  | — |  |  |  | — |  |  |  | (49 | ) |  |  | 52
Other |  |  |  | 992 |  |  |  | — |  |  |  | — |  |  |  | (113 | ) |  |  | 879
Total |  |  | $ | 10,175 |  |  | $ | — |  |  | $ | 30 |  |  | $ | — |  |  | $ | 10,205
As of December 31, 2017, there were no loans to affiliates of executive officers or directors.

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