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Loans and Allowance for Loan Losses | 3 Months Ended
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Mar. 31, 2013
Receivables [Abstract] |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] |
4. | Loans and Allowance for Loan Losses
Loans consisted of the following as of:
|  | March 31, |  |  | December 31, |
(Dollars in thousands) |  | 2013 |  |  | 2012 |
One-to-four family residential real estate |  | $ | 91,380 |  |  | $ | 88,454 |
Construction and land |  |  | 24,194 |  |  |  | 23,435 |
Commercial real estate |  |  | 93,092 |  |  |  | 88,790 |
Commercial loans |  |  | 59,040 |  |  |  | 64,570 |
Agriculture loans |  |  | 31,776 |  |  |  | 31,935 |
Municipal loans |  |  | 6,525 |  |  |  | 9,857 |
Consumer loans |  |  | 12,681 |  |  |  | 13,417 |
Total gross loans |  |  | 318,688 |  |  |  | 320,458 |
Net deferred loan costs and loans in process |  |  | 215 |  |  |  | 37 |
Allowance for loan losses |  |  | (4,634 | ) |  |  | (4,581 | )
Loans, net |  | $ | 314,269 |  |  | $ | 315,914 |
The following tables provide information on the Company’s allowance for loan losses by loan class and allowance methodology:
|  | Three months ended March 31, 2013 |
(Dollars in thousands) |  | One-to-four family residential real estate |  |  | Construction and land |  |  | Commercial real estate |  |  | Commercial loans |  |  | Agriculture loans |  |  | Municipal loans |  |  | Consumer loans |  |  | Total |
Allowance for loan losses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at December 31, 2012 |  | $ | 714 |  |  | $ | 1,214 |  |  | $ | 1,313 |  |  | $ | 707 |  |  | $ | 367 |  |  | $ | 107 |  |  | $ | 159 |  |  | $ | 4,581 |
Charge-offs |  |  | (23 | ) |  |  | - |  |  |  | - |  |  |  | (199 | ) |  |  | - |  |  |  | - |  |  |  | (47 | ) |  |  | (269 | )
Recoveries |  |  | 8 |  |  |  | 2 |  |  |  | - |  |  |  | 1 |  |  |  | - |  |  |  | - |  |  |  | 11 |  |  |  | 22 |
Net charge-offs |  |  | (15 | ) |  |  | 2 |  |  |  | - |  |  |  | (198 | ) |  |  | - |  |  |  | - |  |  |  | (36 | ) |  |  | (247 | )
Provision for loan losses |  |  | (121 | ) |  |  | (82 | ) |  |  | 295 |  |  |  | 106 |  |  |  | 140 |  |  |  | (6 | ) |  |  | (32 | ) |  |  | 300 |
Balance at March 31, 2013 |  |  | 578 |  |  |  | 1,134 |  |  |  | 1,608 |  |  |  | 615 |  |  |  | 507 |  |  |  | 101 |  |  |  | 91 |  |  |  | 4,634 |
Allowance for loan losses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Individually evaluated for loss |  |  | 28 |  |  |  | 332 |  |  |  | - |  |  |  | 49 |  |  |  | - |  |  |  | 65 |  |  |  | - |  |  |  | 474 |
Collectively evaluated for loss |  |  | 550 |  |  |  | 802 |  |  |  | 1,608 |  |  |  | 566 |  |  |  | 507 |  |  |  | 36 |  |  |  | 91 |  |  |  | 4,160 |
Total |  |  | 578 |  |  |  | 1,134 |  |  |  | 1,608 |  |  |  | 615 |  |  |  | 507 |  |  |  | 101 |  |  |  | 91 |  |  |  | 4,634 |
Loan balances: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Individually evaluated for loss |  |  | 757 |  |  |  | 8,603 |  |  |  | 2,833 |  |  |  | 236 |  |  |  | 5 |  |  |  | 772 |  |  |  | 27 |  |  |  | 13,233 |
Collectively evaluated for loss |  |  | 90,623 |  |  |  | 15,591 |  |  |  | 90,259 |  |  |  | 58,804 |  |  |  | 31,771 |  |  |  | 5,753 |  |  |  | 12,654 |  |  |  | 305,455 |
Total |  | $ | 91,380 |  |  | $ | 24,194 |  |  | $ | 93,092 |  |  | $ | 59,040 |  |  | $ | 31,776 |  |  | $ | 6,525 |  |  | $ | 12,681 |  |  | $ | 318,688 |
|  | Three months ended March 31, 2012 |
(Dollars in thousands) |  | One-to-four family residential real estate |  |  | Construction and land |  |  | Commercial real estate |  |  | Commercial loans |  |  | Agriculture loans |  |  | Municipal loans |  |  | Consumer loans |  |  | Total |
Allowance for loan losses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at December 31, 2011 |  |  | 560 |  |  |  | 928 |  |  |  | 1,791 |  |  |  | 745 |  |  |  | 433 |  |  |  | 130 |  |  |  | 120 |  |  |  | 4,707 |
Charge-offs |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (44 | ) |  |  | (44 | )
Recoveries |  |  | 2 |  |  |  | 1 |  |  |  | - |  |  |  | 4 |  |  |  | 38 |  |  |  | - |  |  |  | 6 |  |  |  | 51 |
Net charge-offs |  |  | 2 |  |  |  | 1 |  |  |  | - |  |  |  | 4 |  |  |  | 38 |  |  |  | - |  |  |  | (38 | ) |  |  | 7 |
Provision for loan losses |  |  | 129 |  |  |  | 133 |  |  |  | 106 |  |  |  | (21 | ) |  |  | (63 | ) |  |  | 5 |  |  |  | 11 |  |  |  | 300 |
Balance at March 31, 2012 |  |  | 691 |  |  |  | 1,062 |  |  |  | 1,897 |  |  |  | 728 |  |  |  | 408 |  |  |  | 135 |  |  |  | 93 |  |  |  | 5,014 |
Allowance for loan losses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Individually evaluated for loss |  |  | 66 |  |  |  | 10 |  |  |  | - |  |  |  | 34 |  |  |  | - |  |  |  | 65 |  |  |  | 18 |  |  |  | 193 |
Collectively evaluated for loss |  |  | 625 |  |  |  | 1,052 |  |  |  | 1,897 |  |  |  | 694 |  |  |  | 408 |  |  |  | 70 |  |  |  | 75 |  |  |  | 4,821 |
Total |  |  | 691 |  |  |  | 1,062 |  |  |  | 1,897 |  |  |  | 728 |  |  |  | 408 |  |  |  | 135 |  |  |  | 93 |  |  |  | 5,014 |
Loan balances: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Individually evaluated for loss |  |  | 1,277 |  |  |  | 25 |  |  |  | 227 |  |  |  | 648 |  |  |  | 12 |  |  |  | 784 |  |  |  | 39 |  |  |  | 3,012 |
Collectively evaluated for loss |  |  | 75,173 |  |  |  | 20,519 |  |  |  | 92,261 |  |  |  | 55,451 |  |  |  | 35,030 |  |  |  | 9,281 |  |  |  | 13,001 |  |  |  | 300,716 |
Total |  | $ | 76,450 |  |  | $ | 20,544 |  |  | $ | 92,488 |  |  | $ | 56,099 |  |  | $ | 35,042 |  |  | $ | 10,065 |  |  | $ | 13,040 |  |  | $ | 303,728 |
The Company’s key credit quality indicator is a loan’s performance status, defined as accruing or non-accruing. Performing loans are considered to have a lower risk of loss. Non-accrual loans are those which the Company believes have a higher risk of loss. Loans are placed on non-accrual or are charged off at an earlier date if collection of principal or interest is considered doubtful. The accrual of interest on non-performing loans is discontinued at the time the loan is 90 days delinquent, unless the credit is well secured and in process of collection. There were no loans 90 days delinquent and accruing interest at March 31, 2013 or December 31, 2012. The following tables present information on the Company’s past due and non-accrual loans by loan class:
(Dollars in thousands) |  | As of March 31, 2013 |
|  | 30-59 days delinquent and accruing |  |  | 60-89 days delinquent and accruing |  |  | 90 days or more delinquent and accruing |  |  | Total past due loans accruing |  |  | Non-accrual loans |  |  | Total |
One-to-four family residential real estate |  | $ | 2,038 |  |  | $ | - |  |  | $ | - |  |  | $ | 2,038 |  |  | $ | 749 |  |  | $ | 2,787 |
Construction and land |  |  | 40 |  |  |  | - |  |  |  | - |  |  |  | 40 |  |  |  | 3,859 |  |  |  | 3,899 |
Commercial real estate |  |  | 568 |  |  |  | - |  |  |  | - |  |  |  | 568 |  |  |  | 2,833 |  |  |  | 3,401 |
Commercial loans |  |  | 118 |  |  |  | - |  |  |  | - |  |  |  | 118 |  |  |  | 236 |  |  |  | 354 |
Agriculture loans |  |  | 170 |  |  |  | - |  |  |  | - |  |  |  | 170 |  |  |  | 5 |  |  |  | 175 |
Municipal loans |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 131 |  |  |  | 131 |
Consumer loans |  |  | 120 |  |  |  | 63 |  |  |  | - |  |  |  | 183 |  |  |  | 27 |  |  |  | 210 |
Total |  | $ | 3,054 |  |  | $ | 63 |  |  | $ | - |  |  | $ | 3,117 |  |  | $ | 7,840 |  |  | $ | 10,957 |
Percent of gross loans |  |  | 0.96 | % |  |  | 0.02 | % |  |  | 0.00 | % |  |  | 0.98 | % |  |  | 2.46 | % |  |  | 3.44 | %
|  | As of December 31, 2012 |
|  | 30-59 days delinquent and accruing |  |  | 60-89 days delinquent and accruing |  |  | 90 days or more delinquent and accruing |  |  | Total past due loans accruing |  |  | Non-accrual loans |  |  | Total |
One-to-four family residential real estate |  | $ | 282 |  |  | $ | 1,362 |  |  | $ | - |  |  | $ | 1,644 |  |  | $ | 731 |  |  | $ | 2,375 |
Construction and land |  |  | 18 |  |  |  | - |  |  |  | - |  |  |  | 18 |  |  |  | 3,915 |  |  |  | 3,933 |
Commercial real estate |  |  | 166 |  |  |  | 82 |  |  |  | - |  |  |  | 248 |  |  |  | 2,833 |  |  |  | 3,081 |
Commercial loans |  |  | 62 |  |  |  | 17 |  |  |  | - |  |  |  | 79 |  |  |  | 1,475 |  |  |  | 1,554 |
Agriculture loans |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 5 |  |  |  | 5 |
Municipal loans |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 131 |  |  |  | 131 |
Consumer loans |  |  | 142 |  |  |  | 65 |  |  |  | - |  |  |  | 207 |  |  |  | 18 |  |  |  | 225 |
Total |  | $ | 670 |  |  | $ | 1,526 |  |  | $ | - |  |  | $ | 2,196 |  |  | $ | 9,108 |  |  | $ | 11,304 |
Percent of gross loans |  |  | 0.21 | % |  |  | 0.48 | % |  |  | 0.00 | % |  |  | 0.69 | % |  |  | 2.84 | % |  |  | 3.53 | %
The Company’s impaired loans decreased from $14.5 million at December 31, 2012 to $13.2 million at March 31, 2013. The difference between the unpaid contractual principal and the impaired loan balance is a result of charge-offs recorded against impaired loans. The difference in the Company’s non-accrual loan balances and impaired loan balances at March 31, 2013 and December 31, 2012, was related to troubled debt restructurings (“TDR”) that are current and accruing interest, but still classified as impaired. The following tables present information on impaired loans:
(Dollars in thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | As of March 31, 2013 |
|  | Unpaid contractual principal |  |  | Impaired loan balance |  |  | Impaired loans without an allowance |  |  | Impaired loans with an allowance |  |  | Related allowance recorded |  |  | Year-to-date average loan balance |  |  | Year-to-date interest income recognized |
One-to-four family residential real estate |  | $ | 1,047 |  |  | $ | 757 |  |  | $ | 563 |  |  | $ | 194 |  |  | $ | 28 |  |  | $ | 769 |  |  | $ | - |
Construction and land |  |  | 10,337 |  |  |  | 8,603 |  |  |  | 6,301 |  |  |  | 2,302 |  |  |  | 332 |  |  |  | 8,656 |  |  |  | 60 |
Commercial real estate |  |  | 2,833 |  |  |  | 2,833 |  |  |  | 2,833 |  |  |  | - |  |  |  | - |  |  |  | 2,833 |  |  |  | - |
Commercial loans |  |  | 236 |  |  |  | 236 |  |  |  | 3 |  |  |  | 233 |  |  |  | 49 |  |  |  | 238 |  |  |  | - |
Agriculture loans |  |  | 5 |  |  |  | 5 |  |  |  | 5 |  |  |  | - |  |  |  | - |  |  |  | 5 |  |  |  | - |
Municipal loans |  |  | 772 |  |  |  | 772 |  |  |  | 641 |  |  |  | 131 |  |  |  | 65 |  |  |  | 772 |  |  |  | 5 |
Consumer loans |  |  | 27 |  |  |  | 27 |  |  |  | 27 |  |  |  | - |  |  |  | - |  |  |  | 28 |  |  |  | - |
Total impaired loans |  | $ | 15,257 |  |  | $ | 13,233 |  |  | $ | 10,373 |  |  | $ | 2,860 |  |  | $ | 474 |  |  | $ | 13,301 |  |  | $ | 65 |
|  | As of December 31, 2012 |
|  | Unpaid contractual principal |  |  | Impaired loan balance |  |  | Impaired loans without an allowance |  |  | Impaired loans with an allowance |  |  | Related allowance recorded |  |  | Year-to-date average loan balance |  |  | Year-to-date interest income recognized |
One-to-four family residential real estate |  | $ | 1,029 |  |  | $ | 739 |  |  | $ | 57 |  |  | $ | 682 |  |  | $ | 165 |  |  | $ | 767 |  |  | $ | 19 |
Construction and land |  |  | 10,425 |  |  |  | 8,691 |  |  |  | 6,334 |  |  |  | 2,357 |  |  |  | 388 |  |  |  | 9,211 |  |  |  | 302 |
Commercial real estate |  |  | 2,833 |  |  |  | 2,833 |  |  |  | 2,833 |  |  |  | - |  |  |  | - |  |  |  | 3,352 |  |  |  | - |
Commercial loans |  |  | 1,475 |  |  |  | 1,475 |  |  |  | 395 |  |  |  | 1,080 |  |  |  | 268 |  |  |  | 1,621 |  |  |  | 3 |
Agriculture loans |  |  | 5 |  |  |  | 5 |  |  |  | 5 |  |  |  | - |  |  |  | - |  |  |  | 8 |  |  |  | - |
Municipal loans |  |  | 772 |  |  |  | 772 |  |  |  | 641 |  |  |  | 131 |  |  |  | 65 |  |  |  | 779 |  |  |  | 20 |
Consumer loans |  |  | 18 |  |  |  | 18 |  |  |  | 3 |  |  |  | 15 |  |  |  | 15 |  |  |  | 20 |  |  |  | - |
Total impaired loans |  | $ | 16,557 |  |  | $ | 14,533 |  |  | $ | 10,268 |  |  | $ | 4,265 |  |  | $ | 901 |  |  | $ | 15,758 |  |  | $ | 344 |
At March 31, 2013, the Company had seven loan relationships consisting of eleven outstanding loans that were classified as TDRs compared to eight relationships consisting of thirteen outstanding loans at December 31, 2012. During 2012, the Company classified a commercial loan relationship consisting of two commercial loans as a TDR after agreeing to extend the maturity of the loans while the borrower liquidated the business assets securing the loans. The loans were repaid in the first quarter of 2013 and resulted in a net charge-off of $6,000. The Company did not classify any loan restructurings as TDRs during the first quarter of 2013. The Company evaluates each TDR individually and returns the loan to accrual status when a payment history is established after the restructuring and future payments are reasonably assured. There were no loans as of March 31, 2013 that had been modified as TDRs and then subsequently defaulted. At March 31, 2013 and December 31, 2012, there was $13,000 and $15,000, respectively, of commitments to lend additional funds to a land loan classified as a TDR. As of March 31, 2013, the Company had $332,000 of allowance recorded against loans classified as TDRs compared to $521,000 recorded at December 31, 2012. The following table presents information on loans that are classified as TDRs:
(Dollars in thousands) |  |  |  |  |  |  |  |  |  |  |  |
|  | As of March 31, 2013 |  |  | As of December 31, 2012 |
|  | Number of loans |  |  | Loan balance |  |  | Number of loans |  |  | Loan balance |
One-to-four family residential real estate |  |  | 2 |  |  | $ | 474 |  |  |  | 2 |  |  | $ | 493 |
Construction and land |  |  | 7 |  |  |  | 6,928 |  |  |  | 7 |  |  |  | 7,077 |
Commerical loans |  |  | - |  |  |  | - |  |  |  | 2 |  |  |  | 196 |
Municipal loans |  |  | 2 |  |  |  | 641 |  |  |  | 2 |  |  |  | 641 |
Total troubled debt restructurings |  |  | 11 |  |  | $ | 8,043 |  |  |  | 13 |  |  | $ | 8,407 |
The Company services one-to-four family residential real estate loans for others with outstanding principal balances of $277.8 million and $263.5 million at March 31, 2013 and December 31, 2012, respectively. Gross service fee income related to such loans was $169,000 and $119,000 for the quarters ended March 31, 2013 and 2012, respectively, and is included in fees and service charges in the consolidated statements of earnings. The Company had a mortgage repurchase reserve of $418,000 at March 31, 2013 and December 31, 2012, which represents the Company’s best estimate of probable losses that the Company has incurred related to the repurchase of one-to-four family residential real estate loans previously sold or to reimburse investors for credit losses incurred on loans previously sold where a breach of the contractual representations and warranties occurred. Because the level of mortgage repurchase losses depends upon economic factors, investor demand strategies and other external conditions that may change over the life of the underlying loans, mortgage repurchase losses are difficult to estimate and require considerable judgment. The Company did not make any provisions or charge any losses against the reserve during the first three months of 2013. As of March 31, 2013, the Company did not have any outstanding mortgage repurchase requests.

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- Definition The entire disclosure for claims held for amounts due a entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(k)) -URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 3, 4 -Article 5 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=7512638&loc=d3e5074-111524 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -Section 50 -Paragraph 11 -URI http://asc.fasb.org/extlink&oid=7512638&loc=d3e5162-111524 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.3,4) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph k -Article 4 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Statement of Position (SOP) -Number 01-6 -Paragraph 13 -Subparagraph d -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=7512638&loc=d3e5066-111524 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph 7 -Article 9 + Details
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