Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2020 | Oct. 26, 2020 | |
Document Information [Line Items] | ||
Entity Registrant Name | HMN FINANCIAL INC | |
Entity Central Index Key | 0000921183 | |
Trading Symbol | hmnf | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Emerging Growth Company | false | |
Entity Small Business | true | |
Entity Interactive Data Current | Yes | |
Entity Common Stock, Shares Outstanding (in shares) | 4,836,359 | |
Entity Shell Company | false | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Title of 12(b) Security | Common Stock |
Consolidated Balance Sheets (Cu
Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Assets | ||
Cash and cash equivalents | $ 76,027 | $ 44,399 |
Mortgage-backed and related securities (amortized cost $69,826 and $54,777) | 118,564 | 107,592 |
Loans held for sale | 7,225 | 3,606 |
Loans receivable, net | 670,297 | 596,392 |
Accrued interest receivable | 4,236 | 2,251 |
Mortgage servicing rights, net | 2,880 | 2,172 |
Premises and equipment, net | 10,342 | 10,515 |
Goodwill | 802 | 802 |
Core deposit intangible | 82 | 156 |
Prepaid expenses and other assets | 6,798 | 8,052 |
Deferred tax asset, net | 1,199 | 1,702 |
Total assets | 898,452 | 777,639 |
Liabilities and Stockholders’ Equity | ||
Deposits | 787,023 | 673,870 |
Accrued interest payable | 225 | 420 |
Customer escrows | 1,857 | 2,413 |
Accrued expenses and other liabilities | 8,204 | 8,288 |
Total liabilities | 797,309 | 684,991 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Serial-preferred stock ($.01 par value): authorized 500,000 shares; issued 0 | 0 | 0 |
Common stock ($.01 par value): authorized 16,000,000 shares; issued 9,128,662 | 91 | 91 |
Additional paid-in capital | 40,393 | 40,365 |
Retained earnings, subject to certain restrictions | 114,724 | 107,547 |
Accumulated other comprehensive income | 1,343 | 46 |
Unearned employee stock ownership plan shares | (1,498) | (1,643) |
Treasury stock, at cost 4,292,303 and 4,284,840 shares | (53,910) | (53,758) |
Total stockholders’ equity | 101,143 | 92,648 |
Total liabilities and stockholders’ equity | 898,452 | 777,639 |
Collateralized Mortgage Backed Securities [Member] | ||
Assets | ||
Mortgage-backed and related securities (amortized cost $69,826 and $54,777) | 71,458 | 54,851 |
Other Debt Obligations [Member] | ||
Assets | ||
Mortgage-backed and related securities (amortized cost $69,826 and $54,777) | $ 47,106 | $ 52,741 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Securities available for sale, amortized cost | $ 116,700 | $ 107,528 |
Serial preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Serial preferred stock, shares authorized (in shares) | 500,000 | 500,000 |
Serial preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 16,000,000 | 16,000,000 |
Common stock, shares issued (in shares) | 9,128,662 | 9,128,662 |
Treasury stock, shares (in shares) | 4,292,303 | 4,284,840 |
Collateralized Mortgage Backed Securities [Member] | ||
Securities available for sale, amortized cost | $ 69,826 | $ 54,777 |
Other Debt Obligations [Member] | ||
Securities available for sale, amortized cost | $ 46,874 | $ 52,751 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Interest income: | ||||
Loans receivable | $ 7,489 | $ 7,428 | $ 22,156 | $ 22,597 |
Securities available for sale: | ||||
Mortgage-backed and related | 271 | 56 | 825 | 146 |
Other marketable | 163 | 309 | 546 | 905 |
Other | 26 | 205 | 149 | 381 |
Total interest income | 7,949 | 7,998 | 23,676 | 24,029 |
Interest expense: | ||||
Deposits | 656 | 906 | 2,293 | 2,418 |
Federal Home Loan Bank advances and other borrowings | 0 | 0 | 0 | 7 |
Total interest expense | 656 | 906 | 2,293 | 2,425 |
Net interest income | 7,293 | 7,092 | 21,383 | 21,604 |
Provision for loan losses | 770 | (420) | 1,548 | (1,452) |
Net interest income after provision for loan losses | 6,523 | 7,512 | 19,835 | 23,056 |
Non-interest income: | ||||
Gain on sales of loans | 3,005 | 845 | 6,503 | 1,835 |
Other | 291 | 238 | 846 | 842 |
Total non-interest income | 4,396 | 2,227 | 10,461 | 5,939 |
Non-interest expense: | ||||
Compensation and benefits | 3,916 | 3,849 | 11,762 | 11,496 |
Occupancy and equipment | 1,101 | 1,142 | 3,335 | 3,284 |
Data processing | 334 | 319 | 963 | 925 |
Professional services | 241 | 428 | 1,175 | 1,081 |
Other | 1,004 | 1,009 | 3,015 | 2,975 |
Total non-interest expense | 6,596 | 6,747 | 20,250 | 19,761 |
Income before income tax expense | 4,323 | 2,992 | 10,046 | 9,234 |
Income tax expense | 1,222 | 916 | 2,869 | 2,677 |
Net income | 3,101 | 2,076 | 7,177 | 6,557 |
Other comprehensive income (loss), net of tax | (202) | 149 | 1,297 | 1,075 |
Comprehensive income available to common shareholders | $ 2,899 | $ 2,225 | $ 8,474 | $ 7,632 |
Basic earnings per share (in dollars per share) | $ 0.67 | $ 0.45 | $ 1.55 | $ 1.42 |
Diluted earnings per share (in dollars per share) | $ 0.67 | $ 0.45 | $ 1.54 | $ 1.41 |
Financial Service [Member] | ||||
Non-interest income: | ||||
Revenue from Contract with Customer | $ 753 | $ 820 | $ 2,136 | $ 2,305 |
Bank Servicing [Member] | ||||
Non-interest income: | ||||
Revenue from Contract with Customer | $ 347 | $ 324 | $ 976 | $ 957 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Unearned Employee Stock Ownership Plan Shares [Member] | Treasury Stock [Member] | Total |
Balance at Dec. 31, 2018 | $ 91 | $ 40,090 | $ 99,754 | $ (1,096) | $ (1,836) | $ (53,856) | $ 83,147 |
Net income | 6,557 | 6,557 | |||||
Other comprehensive income (loss), net of tax | 1,075 | 1,075 | |||||
Amortization of restricted stock awards | 138 | 138 | |||||
Earned employee stock ownership plan shares | 173 | 144 | 317 | ||||
Restricted stock awards | (143) | 143 | 0 | ||||
Stock awards withheld for tax withholding | (45) | (45) | |||||
Stock compensation expense | 1 | 1 | |||||
Balance at Sep. 30, 2019 | 91 | 40,259 | 106,311 | (21) | (1,692) | (53,758) | 91,190 |
Balance at Jun. 30, 2019 | 91 | 40,153 | 104,235 | (170) | (1,740) | (53,758) | 88,811 |
Net income | 2,076 | 2,076 | |||||
Other comprehensive income (loss), net of tax | 149 | 149 | |||||
Amortization of restricted stock awards | 48 | 48 | |||||
Earned employee stock ownership plan shares | 58 | 48 | 106 | ||||
Balance at Sep. 30, 2019 | 91 | 40,259 | 106,311 | (21) | (1,692) | (53,758) | 91,190 |
Balance at Dec. 31, 2019 | 91 | 40,365 | 107,547 | 46 | (1,643) | (53,758) | 92,648 |
Net income | 7,177 | 7,177 | |||||
Other comprehensive income (loss), net of tax | 1,297 | 1,297 | |||||
Amortization of restricted stock awards | 184 | 184 | |||||
Earned employee stock ownership plan shares | 112 | 145 | 257 | ||||
Stock repurchases | (360) | (360) | |||||
Restricted stock awards | (268) | 268 | 0 | ||||
Stock awards withheld for tax withholding | (60) | (60) | |||||
Balance at Sep. 30, 2020 | 91 | 40,393 | 114,724 | 1,343 | (1,498) | (53,910) | 101,143 |
Balance at Jun. 30, 2020 | 91 | 40,312 | 111,623 | 1,545 | (1,546) | (53,910) | 98,115 |
Net income | 3,101 | 3,101 | |||||
Other comprehensive income (loss), net of tax | (202) | (202) | |||||
Amortization of restricted stock awards | 54 | 54 | |||||
Earned employee stock ownership plan shares | 27 | 48 | 75 | ||||
Balance at Sep. 30, 2020 | $ 91 | $ 40,393 | $ 114,724 | $ 1,343 | $ (1,498) | $ (53,910) | $ 101,143 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Cash flows from operating activities: | ||
Net income | $ 7,177 | $ 6,557 |
Adjustments to reconcile net income to cash provided by operating activities: | ||
Provision for loan losses | 1,548 | (1,452) |
Depreciation | 785 | 838 |
Amortization of premiums (discounts), net | 119 | (10) |
Amortization of deferred loan fees | (350) | (153) |
Amortization of core deposit intangible | 1,100 | 600 |
Amortization of purchased asset fair value adjustments | (26) | (29) |
Amortization of mortgage servicing rights | 1,002 | 535 |
Capitalized mortgage servicing rights | (1,710) | (674) |
Securities losses (gains), net | 40 | (42) |
(Gain) loss on sale of premises and equipment | (6) | 20 |
Gain on sales of real estate | (129) | 0 |
Gain on sales of loans | (6,503) | (1,835) |
Proceeds from sales of loans held for sale | 202,243 | 77,289 |
Disbursements on loans held for sale | (195,571) | (75,833) |
Amortization of restricted stock awards | 184 | 138 |
Amortization of unearned Employee Stock Ownership Plan shares | 145 | 144 |
Earned Employee Stock Ownership Plan shares priced above original cost | 112 | 173 |
Stock option compensation expense | 0 | 1 |
(Increase) decrease in accrued interest receivable | (1,985) | 139 |
(Decrease) increase in accrued interest payable | (195) | 31 |
Decrease in other assets | 1,379 | 1,285 |
(Decrease) increase in other liabilities | (170) | 923 |
Other, net | 6 | 22 |
Net cash provided by operating activities | 8,169 | 8,141 |
Cash flows from investing activities: | ||
Principal collected on securities available for sale | 11,050 | 1,347 |
Proceeds collected on maturities of securities available for sale | 30,875 | 10,400 |
Purchases of securities available for sale | (51,218) | (15,246) |
Purchase of Federal Home Loan Bank stock | (79) | (1,040) |
Redemption of Federal Home Loan Bank stock | 0 | 1,054 |
Proceeds from sales of real estate | 434 | 0 |
Net (increase) decrease in loans receivable | (79,174) | 1,008 |
Proceeds from sale of premises and equipment | 63 | 195 |
Purchases of premises and equipment | (669) | (1,748) |
Net cash used by investing activities | (88,718) | (4,030) |
Cash flows from financing activities: | ||
Increase in deposits | 113,153 | 36,256 |
Common Stock purchased | (360) | 0 |
Stock awards withheld for tax withholding | (60) | (45) |
Proceeds from borrowings | 0 | 26,000 |
Repayment of borrowings | 0 | (26,000) |
(Decrease) increase in customer escrows | (556) | 1,476 |
Net cash provided by financing activities | 112,177 | 37,687 |
Increase in cash and cash equivalents | 31,628 | 41,798 |
Cash and cash equivalents, beginning of period | 44,399 | 20,709 |
Cash and cash equivalents, end of period | 76,027 | 62,507 |
Supplemental cash flow disclosures: | ||
Cash paid for interest | 2,488 | 2,394 |
Cash paid for income taxes | 2,041 | 2,189 |
Supplemental noncash flow disclosures: | ||
Loans transferred to loans held for sale | 3,960 | 4,054 |
Transfer of loans to real estate | 139 | 166 |
Right to use assets and lease obligations | 0 | 4,241 |
Core Deposits [Member] | ||
Adjustments to reconcile net income to cash provided by operating activities: | ||
Amortization of core deposit intangible | $ 74 | $ 74 |
Note 1 - HMN Financial, Inc.
Note 1 - HMN Financial, Inc. | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | ( 1 HMN Financial, Inc. HMN Financial, Inc. (HMN or the Company) is a stock savings bank holding company that owns 100 two The consolidated financial statements included herein are for HMN, the Bank, OIA and HPH. All significant intercompany accounts and transactions have been eliminated in consolidation. Certain amounts in the consolidated financial statements for the prior year have been reclassified to conform to the current year presentation. |
Note 2 - Basis of Preparation
Note 2 - Basis of Preparation | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Basis of Accounting [Text Block] | ( 2 Basis of Preparation The accompanying unaudited consolidated financial statements were prepared in accordance with instructions for Form 10 not three nine September 30, 2020 not may |
Note 3 - New Accounting Standar
Note 3 - New Accounting Standards | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Accounting Standards Update and Change in Accounting Principle [Text Block] | ( 3 New Accounting Standards In June 2016, 2016 13, Financial Instruments-Credit Losses (Topic 326 not December 15, 2019, November 26, 2019, 2019 11, Codification Improvements to Topic 326, 2016 13 first 2020 first 2023. may December 15, 2018, not first 2023. On February 6, 2020, 2020 02, Financial Instruments-Credit Losses (Topic 326 842 No. 119 No. 2016 02, 842 Leases (Topic 842 not 326 326. 326 first 2023. |
Note 4 - Fair Value Measurement
Note 4 - Fair Value Measurements | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | ( 4 ) Fair Value Measurements ASC 820, Fair Value Measurements, three Level 1 Level 2 not Level 3 not not The following table summarizes the assets and liabilities of the Company for which fair values are determined on a recurring basis as of September 30, 2020 December 31, 2019. Carrying value at September 30, 2020 (Dollars in thousands) Total Level 1 Level 2 Level 3 Securities available for sale $ 118,564 0 118,564 0 Equity securities 127 0 127 0 Mortgage loan commitments 266 0 266 0 Total $ 118,957 0 118,957 0 Carrying value at December 31, 2019 (Dollars in thousands) Total Level 1 Level 2 Level 3 Securities available for sale $ 107,592 0 107,592 0 Equity securities 167 0 167 0 Mortgage loan commitments 14 0 14 0 Total $ 107,773 0 107,773 0 There were no 1, 2, 3 three nine September 30, 2020. The Company may September 30, 2020 December 31, 2019. Carrying value at September 30, 2020 (Dollars in thousands) Total Level 1 Level 2 Level 3 Three months ended September 30, 2020 total gains Nine months ended September 30, 2020 total gains Loans held for sale $ 7,225 0 7,225 0 24 86 Mortgage servicing rights 2,880 0 2,880 0 0 0 Loans (1) 2,881 0 2,881 0 12 50 Real estate, net (2) 414 0 414 0 0 0 Total $ 13,400 0 13,400 0 36 136 Carrying value at December 31, 2019 (Dollars in thousands) Total Level 1 Level 2 Level 3 Year ended December 31, 2019 total losses Loans held for sale $ 3,606 0 3,606 0 (40 ) Mortgage servicing rights 2,172 0 2,172 0 0 Loans (1) 3,126 0 3,126 0 (28 ) Real estate, net (2) 580 0 580 0 0 Total $ 9,484 0 9,484 0 (68 ) ( 1 Represents the carrying value of loans for which adjustments are based on the appraised value of the collateral. The carrying value of loans fully charged-off is zero. ( 2 Represents the fair value of foreclosed real estate and other collateral owned that were measured at fair value subsequent to their initial classification as foreclosed assets. |
Note 5 - Fair Value of Financia
Note 5 - Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Financial Instruments Disclosure [Text Block] | ( 5 ) Fair Value of Financial Instruments ASC 825, Disclosures about Fair Values of Financial Instruments September 30, 2020 December 31, 2019 no The estimated fair value of the Company's financial instruments as of September 30, 2020 December 31, 2019 September 30, 2020 December 31, 2019 Fair value hierarchy Fair value hierarchy (Dollars in thousands) Carrying amount Estimated fair value Level 1 Level 2 Level 3 Contract amount Carrying amount Estimated fair value Level 1 Level 2 Level 3 Contract amount Financial assets: Cash and cash equivalents $ 76,027 76,027 76,027 44,399 44,399 44,399 Securities available for sale 118,564 118,564 118,564 107,592 107,592 107,592 Equity securities 127 127 127 167 167 167 Loans held for sale 7,225 7,225 7,225 3,606 3,606 3,606 Loans receivable, net 670,297 674,804 674,804 596,392 600,863 600,863 Federal Home Loan Bank stock 932 932 932 854 854 854 Accrued interest receivable 4,236 4,236 4,236 2,251 2,251 2,251 Financial liabilities: Deposits 787,023 787,975 787,975 673,870 673,945 673,945 Accrued interest payable 225 225 225 420 420 420 Off-balance sheet financial instruments: Commitments to extend credit 266 266 191,522 14 14 178,804 Commitments to sell loans (102 ) (102 ) 48,199 (16 ) (16 ) 10,098 Cash and Cash Equivalents The carrying amount of cash and cash equivalents approximates their fair value. Securities Available for Sale The fair values of securities were based upon quoted market prices for identical or similar instruments in active markets. Equity Securities The fair values of equity securities were based upon quoted market prices. Loans Held for Sale The fair values of loans held for sale were based upon quoted market prices for loans with similar interest rates and terms to maturity. Loans Receivable, net The fair value of the loan portfolio, with the exception of the adjustable rate portfolio, was calculated by discounting the scheduled cash flows through the estimated maturity using anticipated prepayment speeds and using discount rates that reflect the credit and interest rate risk inherent in each loan portfolio. The fair value of the adjustable loan portfolio was estimated by grouping the loans with similar characteristics and comparing the characteristics of each group to the prices quoted for similar types of loans in the secondary market. The fair value disclosures for both the fixed and adjustable rate portfolios were adjusted to reflect the exit price amount anticipated to be received from the sale of the portfolio in an open market transaction. Federal Home Loan Bank Stock The carrying amount of Federal Home Loan Bank (FHLB) stock approximates its fair value. Accrued Interest Receivable The carrying amount of accrued interest receivable approximates its fair value since it is short-term in nature and does not Deposits The fair value of demand deposits, savings accounts and money market account deposits is the amount payable on demand at the reporting date. The fair value of fixed maturity certificates of deposit is estimated using the rates currently offered for deposits of similar remaining maturities. The fair value disclosures for all of the deposits reflect the exit price amount anticipated to be received from the sale of the deposits in an open market transaction. Accrued Interest Payable The carrying amount of accrued interest payable approximates its fair value since it is short-term in nature. Commitments to Extend Credit The fair values of commitments to extend credit are estimated using the fees normally charged to enter into similar agreements, taking into account the remaining terms of the agreements and the present creditworthiness of the counter parties. Commitments to Sell Loans The fair values of commitments to sell loans are estimated using the quoted market prices for loans with similar interest rates and terms to maturity. |
Note 6 - Other Comprehensive In
Note 6 - Other Comprehensive Income (Loss) | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Comprehensive Income (Loss) Note [Text Block] | ( 6 ) Other Comprehensive Income (Loss) Other comprehensive income (loss) is defined as the change in equity during a period from transactions and other events from nonowner sources. Comprehensive income is the total of net income and other comprehensive income (loss), which for the Company is comprised of unrealized gains and losses on securities available for sale. The components of other comprehensive income (loss) and the related tax effects were as follows: For the three months ended September 30, (Dollars in thousands) 2020 2019 Securities available for sale: Before tax Tax effect Net of tax Before tax Tax effect Net of tax Net unrealized (losses) gains arising during the period $ (281 ) (79 ) (202 ) 206 57 149 Other comprehensive income (loss) $ (281 ) (79 ) (202 ) 206 57 149 For the nine months ended September 30, (Dollars in thousands) 2020 2019 Securities available for sale: Before tax Tax effect Net of tax Before tax Tax effect Net of tax Net unrealized gains arising during the period $ 1,800 503 1,297 1,491 416 1,075 Other comprehensive income $ 1,800 503 1,297 1,491 416 1,075 |
Note 7 - Securities Available f
Note 7 - Securities Available for Sale | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | ( 7 Securities Available For Sale The following table shows the gross unrealized losses and fair value for the securities available for sale portfolio, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at September 30, 2020 December 31, 2019. Less Than Twelve Months Twelve Months or More Total (Dollars in thousands) # of Fair Value Unrealized # of Fair Value Unrealized Fair Value Unrealized Losses September 30, 2020 Mortgage-backed securities: Federal National Mortgage Association (FNMA) 2 $ 10,254 (35 ) 0 $ 0 0 $ 10,254 (35 ) Other marketable securities: Corporate obligations 1 37 (1 ) 0 0 0 37 (1 ) Corporate preferred stock 0 0 0 1 595 (105 ) 595 (105 ) Total temporarily impaired securities 3 $ 10,291 (36 ) 1 $ 595 (105 ) $ 10,886 (141 ) Less Than Twelve Months Twelve Months or More Total (Dollars in thousands) # of Fair Value Unrealized # of Fair Value Unrealized Fair Value Unrealized December 31, 2019 Mortgage backed securities: FNMA 4 $ 12,143 (65 ) 0 $ 0 0 $ 12,143 (65 ) Other marketable securities: U.S. Government agency obligations 0 0 0 4 19,972 (21 ) 19,972 (21 ) Corporate preferred stock 0 0 0 1 665 (35 ) 665 (35 ) Total temporarily impaired securities 4 $ 12,143 (65 ) 5 $ 20,637 (56 ) $ 32,780 (121 ) The Company reviews its investment portfolio on a quarterly basis for indications of impairment. This review includes analyzing the length of time and the extent to which the fair value has been lower than the cost, the market liquidity for the investment, the financial condition and near-term prospects of the issuer, including any specific events which may September 30, 2020 September 30, 2020 not September 30, 2020. not may A summary of securities available for sale at September 30, 2020 December 31, 2019 (Dollars in thousands) Amortized cost Gross unrealized Gross unrealized Fair value September 30, 2020: Mortgage-backed securities: FNMA $ 52,922 1,388 (35 ) 54,275 Federal Home Loan Mortgage Corporation (FHLMC) 16,783 272 0 17,055 Collateralized mortgage obligations: FNMA 121 7 0 128 69,826 1,667 (35 ) 71,458 Other marketable securities: U.S. Government agency obligations 45,046 333 0 45,379 Municipal obligations 1,091 5 0 1,096 Corporate obligations 37 0 (1 ) 36 Corporate preferred stock 700 0 (105 ) 595 46,874 338 (106 ) 47,106 $ 116,700 2,005 (141 ) 118,564 Dollars in thousands) Amortized cost Gross unrealized Gross unrealized losses Fair value December 31, 2019 Mortgage-backed securities: FNMA $ 46,604 47 (65 ) 46,586 FHLMC 8,004 88 0 8,092 Collateralized mortgage obligations: FNMA 169 4 0 173 54,777 139 (65 ) 54,851 Other marketable securities: U.S. Government agency obligations 49,974 39 (21 ) 49,992 Municipal obligations 1,969 7 0 1,976 Corporate obligations 108 0 0 108 Corporate preferred stock 700 0 (35 ) 665 52,751 46 (56 ) 52,741 $ 107,528 185 (121 ) 107,592 The following table indicates amortized cost and estimated fair value of securities available for sale at September 30, 2020 (Dollars in thousands) Amortized Cost Fair Value Due less than one year $ 63,341 64,159 Due after one year through five years 43,832 44,776 Due after five years through ten years 8,662 8,865 Due after ten years 865 764 Total $ 116,700 118,564 The allocation of mortgage-backed securities in the table above is based upon the anticipated future cash flow of the securities using estimated mortgage prepayment speeds. The allocation of other marketable securities that have call features is based on the anticipated cash flows to the call date if it is anticipated that the security will be called, or to the maturity date if it is not |
Note 8 - Loans Receivable, Net
Note 8 - Loans Receivable, Net | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | ( 8 ) Loans Receivable, Net A summary of loans receivable at September 30, 2020 December 31, 2019 (Dollars in thousands) September 30, 2020 December 31, Single family $ 130,843 120,064 Commercial real estate: Real estate rental and leasing 213,696 192,502 Other 170,211 157,693 383,907 350,195 Consumer 59,271 69,949 Commercial business 106,796 64,227 Total loans 680,817 604,435 Less: Unamortized discounts 13 15 Net deferred loan fees (costs) 975 (536 ) Allowance for loan losses 9,532 8,564 Total loans receivable, net $ 670,297 596,392 |
Note 9 - Allowance for Loan Los
Note 9 - Allowance for Loan Losses and Credit Quality Information | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Allowance For Loan Losses And Credit Quality Information [Text Block] | ( 9 ) Allowance for Loan Losses and Credit Quality Information The allowance for loan losses is summarized as follows: (Dollars in thousands) Single Family Commercial Consumer Commercial Total For the three months ended September 30, 2020: Balance, June 30, 2020 $ 938 5,382 1,464 865 8,649 Provision for losses 27 878 (64 ) (71 ) 770 Charge-offs 0 0 (29 ) (8 ) (37 ) Recoveries 0 0 5 145 150 Balance, September 30, 2020 $ 965 6,260 1,376 931 9,532 For the nin e months ended September 30, 2020 : Balance, December 31, 2019 $ 857 5,060 1,507 1,140 8,564 Provision for losses 108 1,913 (79 ) (394 ) 1,548 Charge-offs 0 (730 ) (74 ) (8 ) (812 ) Recoveries 0 17 22 193 232 Balance, September 30, 2020 $ 965 6,260 1,376 931 9,532 Allocated to: Specific reserves $ 62 451 119 93 725 General reserves 795 4,609 1,388 1,047 7,839 Balance, December 31, 2019 $ 857 5,060 1,507 1,140 8,564 Allocated to: Specific reserves $ 31 5 63 17 116 General reserves 934 6,255 1,313 914 9,416 Balance, September 30, 2020 $ 965 6,260 1,376 931 9,532 Loans receivable at December 31, 201 9 : Individually reviewed for impairment $ 974 1,166 976 735 3,851 Collectively reviewed for impairment 119,090 349,029 68,973 63,492 600,584 Ending balance $ 120,064 350,195 69,949 64,227 604,435 Loans receivable at September 30, 2020: Individually reviewed for impairment $ 708 1,537 707 45 2,997 Collectively reviewed for impairment 130,135 382,370 58,564 106,751 677,820 Ending balance $ 130,843 383,907 59,271 106,796 680,817 (Dollars in thousands) Single Family Commercial Consumer Commercial Total For the three months ended September 30, 2019: Balance, June 30, 2019 $ 867 4,762 1,632 1,363 8,624 Provision for losses 24 (42 ) (37 ) (365 ) (420 ) Charge-offs (2 ) 0 (46 ) 0 (48 ) Recoveries 0 0 2 37 39 Balance, September 30, 2019 $ 889 4,720 1,551 1,035 8,195 For the nine months ended September 30, 2019: Balance, December 31, 2018 $ 833 4,869 1,622 1,362 8,686 Provision for losses 58 (1,834 ) 13 311 (1,452 ) Charge-offs (2 ) 0 (92 ) (869 ) (963 ) Recoveries 0 1,685 8 231 1,924 Balance, September 30, 2019 $ 889 4,720 1,551 1,035 8,195 The following table summarizes the amount of classified and unclassified loans at September 30, 2020 December 31, 2019: September 30, 2020 Classified Unclassified (Dollars in thousands) Special Substandard Doubtful Loss Total Total Total Loans Single family $ 274 2,313 31 0 2,618 128,225 130,843 Commercial real estate: Real estate rental and leasing 5,194 3,451 0 0 8,645 205,051 213,696 Other 5,537 5,574 0 0 11,111 159,100 170,211 Consumer 0 624 63 20 707 58,564 59,271 Commercial business 3,575 1,884 0 0 5,459 101,337 106,796 $ 14,580 13,846 94 20 28,540 652,277 680,817 December 31, 2019 Classified Unclassified (Dollars in thousands) Special Substandard Doubtful Loss Total Total Total Loans Single family $ 1,118 1,765 35 0 2,918 117,146 120,064 Commercial real estate: Real estate rental and leasing 3,489 9,114 0 0 12,603 179,899 192,502 Other 4,451 5,253 0 0 9,704 147,989 157,693 Consumer 0 842 69 65 976 68,973 69,949 Commercial business 5,710 2,516 0 0 8,226 56,001 64,227 $ 14,768 19,490 104 65 34,427 570,008 604,435 Classified loans represent special mention, substandard (performing and non-performing), and non-performing loans categorized as doubtful and loss. Loans classified as special mention are loans that have potential weaknesses that, if left uncorrected, may not may not The aging of past due loans at September 30, 2020 December 31, 2019 (Dollars in thousands) 30-59 Days 60-89 Days 90 Days or More Past Due Total Past Due Current Total Loans Loans 90 Days September 30, 2020 Single family $ 550 223 144 917 129,926 130,843 0 Commercial real estate: Real estate rental and leasing 0 0 0 0 213,696 213,696 0 Other 0 0 185 185 170,026 170,211 0 Consumer 360 49 300 709 58,562 59,271 0 Commercial business 0 0 0 0 106,796 106,796 0 $ 910 272 629 1,811 679,006 680,817 0 December 31, 201 9 Single family $ 786 77 59 922 119,142 120,064 0 Commercial real estate: Real estate rental and leasing 0 0 0 0 192,502 192,502 0 Other 0 0 0 0 157,693 157,693 0 Consumer 527 31 206 764 69,185 69,949 0 Commercial business 147 13 550 710 63,517 64,227 0 $ 1,460 121 815 2,396 602,039 604,435 0 Impaired loans include loans that are non-performing (non-accruing) and loans that have been modified in a troubled debt restructuring (TDR). The following table summarizes impaired loans and related allowances as of September 30, 2020 December 31, 2019: September 30, 2020 December 31, 2019 (Dollars in thousands) Recorded Unpaid Related Recorded Unpaid Related Loans with no related allowance recorded: Single family $ 588 607 0 544 563 0 Commercial real estate: Real estate rental and leasing 968 1,618 0 0 0 0 Other 399 479 0 0 0 0 Consumer 596 596 0 781 781 0 Loans with an allowance recorded: Single family 120 120 31 430 430 62 Commercial real estate: Real estate rental and leasing 170 170 5 184 184 16 Other 0 0 0 982 982 435 Consumer 111 111 63 195 195 119 Commercial business 45 597 17 735 1,287 93 Total: Single family 708 727 31 974 993 62 Commercial real estate: Real estate rental and leasing 1,138 1,788 5 184 184 16 Other 399 479 0 982 982 435 Consumer 707 707 63 976 976 119 Commercial business 45 597 17 735 1,287 93 $ 2,997 4,298 116 3,851 4,422 725 The following tables summarize average recorded investment and interest income recognized on impaired loans during the three nine September 30, 2020 2019. For the three months ended For the nine months ended September 30, 2020 (Dollars in thousands) Average Recorded Interest Income Average Investment Interest Income Loans with no related allowance recorded: Single family $ 606 6 585 23 Commercial real estate: Real estate rental and leasing 985 0 493 33 Other 401 0 340 2 Consumer 586 3 640 9 Commercial business 4 0 2 0 Loans with an allowance recorded: Single family 121 0 273 0 Commercial real estate: Real estate rental and leasing 173 0 177 0 Other 0 0 487 0 Consumer 142 0 169 2 Commercial business 50 1 242 2 Total: Single family 727 6 858 23 Commercial real estate: Real estate rental and leasing 1,158 0 670 33 Other 401 0 827 2 Consumer 728 3 809 11 Commercial business 54 1 244 2 $ 3,068 10 3,408 71 For the three months ended For the nine months ended September 30, 2019 (Dollars in thousands) Average Recorded Interest Income Average Interest Income Loans with no related allowance recorded: Single family $ 551 6 499 17 Commercial real estate: Other 0 0 13 0 Consumer 612 3 530 17 Loans with an allowance recorded: Single family 579 1 684 2 Commercial real estate: Real estate rental and leasing 191 0 195 0 Other 1,061 20 1,065 22 Consumer 192 3 241 8 Commercial business 248 3 286 8 Total: Single family 1,130 7 1,183 19 Commercial real estate: Real estate rental and leasing 191 0 195 0 Other 1,061 20 1,078 22 Consumer 804 6 771 25 Commercial business 248 3 286 8 $ 3,434 36 3,513 74 At September 30, 2020 December 31, 2019, $2.5 $2.1 $0.1 $0.2 no $2.2 $0.8 September 30, 2020 December 31, 2019, The non-accrual loans at September 30, 2020 December 31, 2019 (Dollars in thousands) September 30, 2020 December 31, 2019 Single family $ 352 617 Commercial real estate: Real estate rental and leasing 1,138 184 Other 399 0 Consumer 641 659 Commercial business 11 621 $ 2,541 2,081 At September 30, 2020 December 31, 2019 $1.5 $2.5 no third 2020. third 2019, none $0.1 September 30, 2019. The following table summarizes TDRs at September 30, 2020 December 31, 2019: September 30, 2020 December 31, 2019 (Dollars in thousands) Accrual Non-Accrual Total Accrual Non-Accrual Total Single family $ 356 261 617 357 266 623 Commercial real estate 0 214 214 983 0 983 Consumer 66 589 655 316 429 745 Commercial business 35 0 35 114 0 114 $ 457 1,064 1,521 1,770 695 2,465 As of September 30, 2020, $1.3 75%. December 31, 2019, $0.8 TDR concessions can include reduction of interest rates, extension of maturity dates, forgiveness of principal and/or interest due, or acceptance of real estate or other assets in full or partial satisfaction of the debt. Loan modifications are not 12 12 When a loan is modified as a TDR, there may may three nine September 30, 2020 2019. Three Months Ended September 30, 2020 Nine Months Ended September 30, 2020 (Dollars in thousands) Number of Pre- Post- Number of Pre- modification Post- modification Troubled debt restructurings: Single family 0 $ 0 0 1 $ 94 101 Commercial real estate: Other 0 0 0 2 293 293 Total 0 $ 0 0 3 $ 387 394 Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 (Dollars in thousands) Number of Pre- modification Post- modification Number of Pre- modification Post- modification Troubled debt restructurings: Single family 0 $ 0 0 3 $ 176 181 Consumer 1 58 58 4 118 118 Total 1 $ 58 58 7 $ 294 299 There were no 12 September 30, 2020 2019 three nine September 30, 2020 2019, The Company considers a loan to have defaulted when it becomes 90 six six may TDRs are reviewed for impairment following the same methodology as other impaired loans. For loans that are collateral-dependent, the value of the collateral is reviewed and additional reserves may not may $0.1 1.1%, $9.5 September 30, 2020 $0.6 7.2%, $8.6 December 31, 2019. In the first nine 2020 six 19 Interagency Statement on Loan Modification and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus April 7, 2020, not not may September 30, 2020 June 30, 2020 (Dollars in thousands) Balance Balance Commercial real estate loans by industry: Hotels (1) $ 54,660 54,660 Retail/Office 7,127 20,322 Theaters 11,269 11,269 Multi-family 0 11,195 Single family 0 4,675 Restaurant/Bar 2,876 4,477 Other 5,747 9,449 Total commercial loans 81,679 116,047 Consumer loans by collateral type: Single family 366 2,955 Other 0 77 Total consumer loans 366 3,032 Total deferred loans $ 82,045 119,079 ( 1 Approximately $38.5 $21.3 $13.8 $3.4 All of the borrowers whose loan deferral period ended during the third 2020 none September 30, 2020. September 30, 2020 fourth 2020. may may |
Note 10 - Intangible Assets
Note 10 - Intangible Assets | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Intangible Assets Disclosure [Text Block] | ( 1 0 ) Intangible Assets The Company's intangible assets consist of mortgage servicing rights, core deposit intangibles, and goodwill. A summary of mortgage servicing activity is as follows: (Dollars in thousands) Nine Months ended Twelve Months ended December 31, 2019 Nine Months ended September 30, 2019 Balance, beginning of period $ 2,172 1,855 1,855 Originations 1,710 1,097 674 Amortization (1,002 ) (780 ) (535 ) Balance, end of period $ 2,880 2,172 1,994 Fair value of mortgage servicing rights $ 2,956 3,390 2,922 All of the loans sold where the Company continues to service the loans are serviced for FNMA under the mortgage-backed security program or the individual loan sale program. The following is a summary of the risk characteristics of the loans being serviced for FNMA at September 30, 2020. Weighted Weighted Loan Average Average Principal Interest Remaining Number (Dollars in thousands) Balance Rate Term (months) of Loans Original term 30 year fixed rate $ 380,018 3.74 % 311 2,593 Original term 15 year fixed rate 117,870 3.03 140 1,064 The gross carrying amount of intangible assets and the associated accumulated amortization at September 30, 2020 December 31, 2019 $1.1 $0.6 nine September 30, 2020 2019, September 30, 2020 Gross (Dollars in thousands) Carrying Amount Accumulated Amortization Unamortized Amount Mortgage servicing rights $ 6,018 (3,138 ) 2,880 Core deposit intangible 574 (492 ) 82 Goodwill 802 0 802 Total $ 7,394 (3,630 ) 3,764 December 31, 2019 Gross (Dollars in thousands) Carrying Amount Accumulated Amortization Unamortized Amount Mortgage servicing rights $ 4,968 (2,796 ) 2,172 Core deposit intangible 574 (418 ) 156 Goodwill 802 0 802 Total $ 6,344 (3,214 ) 3,130 The following table indicates the estimated future amortization expense for amortizing intangible assets: (Dollars in thousands) Mortgage Core Deposit Total Amortizing Year ended December 31, 2020 $ 156 25 181 2021 596 47 643 2022 550 10 560 2023 495 0 495 2024 437 0 437 Thereafter 646 0 646 Total $ 2,880 82 2,962 Projections of amortization are based on existing asset balances and the existing interest rate environment as of September 30, 2020. may No not may September 30, 2020 not no September 30, 2020. |
Note 11 - Leases
Note 11 - Leases | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Lessee, Operating Leases [Text Block] | ( 11 Leases The Company accounts for its leases in accordance with ASU 2016 02, 842 September 30, 2020, $3.4 Operating lease right-of-use assets represent the Company's right to use an underlying asset during the lease term and operating lease liabilities represent its obligation to make lease payments arising from the lease. Right-of-use assets and operating lease liabilities are recognized at lease commencement based on the present value of the remaining lease payments using a discount rate that represents the Company's incremental borrowing rate at the lease commencement date. Because the Company only has operating leases and the right-of-use asset is offset by a lease payment obligation liability, the lease payments are the only amount that is recorded in occupancy expense in the consolidated statements of comprehensive income. The Company's leases relate to office space and bank branches with remaining lease terms between 22 54 3 10 not not The table below summarizes the Company's net lease cost: (Dollars in thousands) Three Months Ended Nine Months Ended Operating lease cost $ 224 669 The table below summarizes other information related to the Company's operating leases: (Dollars in thousands) Three Months Three Months Nine Months Nine Months Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 224 221 669 667 Weighted-average remaining lease term – operating leases, in years 3.9 5.0 3.9 5.0 Weighted-average discount rate – operating leases 2.19 % 2.19 % 2.19 % 2.19 % The table below summarizes the maturities of remaining lease liabilities: (Dollars in thousands) September 30, 2020 2020 $ 222 2021 902 2022 924 2023 802 2024 667 2025 and thereafter 11 Total lease payments 3,528 Less: Interest (153 ) Present value of lease liabilities $ 3,375 |
Note 12 - Earnings Per Common S
Note 12 - Earnings Per Common Share | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | ( 1 2 ) Earnings per Common S hare The following table reconciles the weighted average shares outstanding and the earnings available to common shareholders used for basic and diluted earnings per share: Three Months Ended September 30, Nine Months Ended September 30, (In thousands, except per share data) 2020 2019 2020 2019 Weighted average number of common shares outstanding used in basic earnings per share calculation 4,628 4,614 4,624 4,606 Net dilutive effect of: Restricted stock awards and options 23 28 26 29 Weighted average number of shares outstanding adjusted for effect of dilutive securities 4,651 4,642 4,650 4,635 Income available to common shareholders $ 3,101 2,076 7,177 6,557 Basic earnings per common share $ 0.67 0.45 1.55 1.42 Diluted earnings per common share $ 0.67 0.45 1.54 1.41 |
Note 13 - Regulatory Capital an
Note 13 - Regulatory Capital and Oversight | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Regulatory Capital Requirements under Banking Regulations [Text Block] | ( 1 3 ) Regulatory Capital and Oversight The Company and the Bank are subject to the Basel III regulatory capital requirements. The Basel III requirements, among other things, (i) apply a set of capital requirements to the Bank (the Company is exempt, pursuant to the Small Bank Holding Company Policy Statement (Policy Statement) described below), including requirements relating to common equity as a component of core capital, (ii) implement a “capital conservation buffer” against risk and a higher minimum Tier 1 January 1, 2019. The Board of Governors of the Federal Reserve System amended its Policy Statement, to exempt small bank holding companies with assets less than $3 Quantitative measures established by regulations to ensure capital adequacy require the Bank to maintain minimum amounts and ratios (set forth in the following table and defined in the regulation) of Common Equity Tier 1 1 1 The Bank's average total assets for the quarter ended September 30, 2020 $886.7 $885.8 $655.1 September 30, 2020 Actual Required to be Excess Capital To Be Well Capitalized (Dollars in thousands) Amount Percent of Amount Percent of Amount Percent of Amount Percent of September 30, 2020 Common equity tier 1 capital $ 86,209 13.16 % $ 29,481 4.50 % $ 56,728 8.66 % $ 42,583 6.50 % Tier 1 capital leverage 86,209 9.73 35,432 4.00 50,777 5.73 44,291 5.00 Tier 1 risk-based capital 86,209 13.16 39,307 6.00 46,902 7.16 52,410 8.00 Total risk-based capital 94,414 14.41 52,410 8.00 42,004 6.41 65,512 10.00 The Bank must maintain a capital conservation buffer of 2.50% 1 September 30, 2020, no |
Note 14 - Stockholders' Equity
Note 14 - Stockholders' Equity | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | ( 1 4 ) Stockholders' Equity The Company was authorized to repurchase up to $5.6 September 30, 2020. September 30, 2020 not second third 2020. 19 no not third 2020 no fourth 2020. |
Note 15 - Commitments and Conti
Note 15 - Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | ( 1 5 ) Commitments and Contingencies The Bank issues standby letters of credit which guarantee the performance of customers to third September 30, 2020 $7.0 14 may not From time to time, the Company is party to legal proceedings arising out of its lending and deposit operations. The Company is, and expects to become, engaged in foreclosure proceedings, collection actions, and other litigation as part of its normal banking activities. Among the various current litigation matters, the Company is involved in a bankruptcy litigation claim where the bankruptcy trustee is attempting to recover $1.9 The Company examines each legal matter, and, in those situations where it determines that a particular legal matter presents loss contingencies that are both probable and reasonably estimable, establishes an appropriate accrual. In many situations, the Company is not $0 $0.9 not may may Based on the Company's current understanding of all of the outstanding legal matters, management does not |
Note 16 - Business Segments
Note 16 - Business Segments | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | ( 16 Business Segments The Bank has been identified as a reportable operating segment in accordance with the provisions of ASC 280. not The Company evaluates performance and allocates resources based on the segment's net income, return on average assets and return on average equity. Each corporation is managed separately with its own officers and board of directors. The following table sets forth certain information about the reconciliations of reported profit and assets for each of the Company's reportable segments. (Dollars in thousands) Home Federal Other Eliminations Consolidated At or for the nine months ended September 30, 2020: Interest income - external customers $ 23,676 0 0 23,676 Non-interest income - external customers 10,461 0 0 10,461 Intersegment interest income 0 32 (32 ) 0 Intersegment non-interest income 175 7,609 (7,784 ) 0 Interest expense 2,325 0 (32 ) 2,293 Provision for loan losses 1,548 0 0 1,548 Non-interest expense 19,863 562 (175 ) 20,250 Income tax expense 2,967 (98 ) 0 2,869 Net income 7,609 7,177 (7,609 ) 7,177 Total assets 897,694 101,308 (100,550 ) 898,452 At or for the nine months ended September 30, 2019: Interest income - external customers $ 24,029 2 (2 ) 24,029 Non-interest income - external customers 5,939 0 0 5,939 Intersegment non-interest income 176 7,015 (7,191 ) 0 Interest expense 2,427 0 (2 ) 2,425 Provision for loan losses (1,452 ) 0 0 (1,452 ) Non-interest expense 19,363 574 (176 ) 19,761 Income tax expense 2,791 (114 ) 0 2,677 Net income 7,015 6,557 (7,015 ) 6,557 Total assets 762,445 91,388 (90,605 ) 763,228 At or for the quarter ended September 30, 2020: Interest income - external customers $ 7,949 0 0 7,949 Non-interest income - external customers 4,396 0 0 4,396 Intersegment interest income 0 9 (9 ) 0 Intersegment non-interest income 58 3,251 (3,309 ) 0 Interest expense 665 0 (9 ) 656 Provision for loan losses 770 0 0 770 Non-interest expense 6,460 194 (58 ) 6,596 Income tax expense 1,257 (35 ) 0 1,222 Net income 3,251 3,101 (3,251 ) 3,101 Total assets 897,694 101,308 (100,550 ) 898,452 At or for the quarter ended September 30, 2019: Interest income - external customers $ 7,998 2 (2 ) 7,998 Non-interest income - external customers 2,227 0 0 2,227 Intersegment non-interest income 59 2,235 (2,294 ) 0 Interest expense 908 0 (2 ) 906 Provision for loan losses (420 ) 0 0 (420 ) Non-interest expense 6,604 202 (59 ) 6,747 Income tax expense 957 (41 ) 0 916 Net income 2,235 2,076 (2,235 ) 2,076 Total assets 762,445 91,388 (90,605 ) 763,228 |
Note 4 - Fair Value Measureme_2
Note 4 - Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Notes Tables | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | Carrying value at September 30, 2020 (Dollars in thousands) Total Level 1 Level 2 Level 3 Securities available for sale $ 118,564 0 118,564 0 Equity securities 127 0 127 0 Mortgage loan commitments 266 0 266 0 Total $ 118,957 0 118,957 0 Carrying value at December 31, 2019 (Dollars in thousands) Total Level 1 Level 2 Level 3 Securities available for sale $ 107,592 0 107,592 0 Equity securities 167 0 167 0 Mortgage loan commitments 14 0 14 0 Total $ 107,773 0 107,773 0 |
Fair Value Measurements, Nonrecurring [Table Text Block] | Carrying value at September 30, 2020 (Dollars in thousands) Total Level 1 Level 2 Level 3 Three months ended September 30, 2020 total gains Nine months ended September 30, 2020 total gains Loans held for sale $ 7,225 0 7,225 0 24 86 Mortgage servicing rights 2,880 0 2,880 0 0 0 Loans (1) 2,881 0 2,881 0 12 50 Real estate, net (2) 414 0 414 0 0 0 Total $ 13,400 0 13,400 0 36 136 Carrying value at December 31, 2019 (Dollars in thousands) Total Level 1 Level 2 Level 3 Year ended December 31, 2019 total losses Loans held for sale $ 3,606 0 3,606 0 (40 ) Mortgage servicing rights 2,172 0 2,172 0 0 Loans (1) 3,126 0 3,126 0 (28 ) Real estate, net (2) 580 0 580 0 0 Total $ 9,484 0 9,484 0 (68 ) |
Note 5 - Fair Value of Financ_2
Note 5 - Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Notes Tables | |
Fair Value, by Balance Sheet Grouping [Table Text Block] | September 30, 2020 December 31, 2019 Fair value hierarchy Fair value hierarchy (Dollars in thousands) Carrying amount Estimated fair value Level 1 Level 2 Level 3 Contract amount Carrying amount Estimated fair value Level 1 Level 2 Level 3 Contract amount Financial assets: Cash and cash equivalents $ 76,027 76,027 76,027 44,399 44,399 44,399 Securities available for sale 118,564 118,564 118,564 107,592 107,592 107,592 Equity securities 127 127 127 167 167 167 Loans held for sale 7,225 7,225 7,225 3,606 3,606 3,606 Loans receivable, net 670,297 674,804 674,804 596,392 600,863 600,863 Federal Home Loan Bank stock 932 932 932 854 854 854 Accrued interest receivable 4,236 4,236 4,236 2,251 2,251 2,251 Financial liabilities: Deposits 787,023 787,975 787,975 673,870 673,945 673,945 Accrued interest payable 225 225 225 420 420 420 Off-balance sheet financial instruments: Commitments to extend credit 266 266 191,522 14 14 178,804 Commitments to sell loans (102 ) (102 ) 48,199 (16 ) (16 ) 10,098 |
Note 6 - Other Comprehensive _2
Note 6 - Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Notes Tables | |
Comprehensive Income (Loss) [Table Text Block] | For the three months ended September 30, (Dollars in thousands) 2020 2019 Securities available for sale: Before tax Tax effect Net of tax Before tax Tax effect Net of tax Net unrealized (losses) gains arising during the period $ (281 ) (79 ) (202 ) 206 57 149 Other comprehensive income (loss) $ (281 ) (79 ) (202 ) 206 57 149 For the nine months ended September 30, (Dollars in thousands) 2020 2019 Securities available for sale: Before tax Tax effect Net of tax Before tax Tax effect Net of tax Net unrealized gains arising during the period $ 1,800 503 1,297 1,491 416 1,075 Other comprehensive income $ 1,800 503 1,297 1,491 416 1,075 |
Note 7 - Securities Available_2
Note 7 - Securities Available for Sale (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Notes Tables | |
Schedule of Unrealized Loss on Investments [Table Text Block] | Less Than Twelve Months Twelve Months or More Total (Dollars in thousands) # of Fair Value Unrealized # of Fair Value Unrealized Fair Value Unrealized Losses September 30, 2020 Mortgage-backed securities: Federal National Mortgage Association (FNMA) 2 $ 10,254 (35 ) 0 $ 0 0 $ 10,254 (35 ) Other marketable securities: Corporate obligations 1 37 (1 ) 0 0 0 37 (1 ) Corporate preferred stock 0 0 0 1 595 (105 ) 595 (105 ) Total temporarily impaired securities 3 $ 10,291 (36 ) 1 $ 595 (105 ) $ 10,886 (141 ) Less Than Twelve Months Twelve Months or More Total (Dollars in thousands) # of Fair Value Unrealized # of Fair Value Unrealized Fair Value Unrealized December 31, 2019 Mortgage backed securities: FNMA 4 $ 12,143 (65 ) 0 $ 0 0 $ 12,143 (65 ) Other marketable securities: U.S. Government agency obligations 0 0 0 4 19,972 (21 ) 19,972 (21 ) Corporate preferred stock 0 0 0 1 665 (35 ) 665 (35 ) Total temporarily impaired securities 4 $ 12,143 (65 ) 5 $ 20,637 (56 ) $ 32,780 (121 ) |
Available-for-sale Securities [Table Text Block] | (Dollars in thousands) Amortized cost Gross unrealized Gross unrealized Fair value September 30, 2020: Mortgage-backed securities: FNMA $ 52,922 1,388 (35 ) 54,275 Federal Home Loan Mortgage Corporation (FHLMC) 16,783 272 0 17,055 Collateralized mortgage obligations: FNMA 121 7 0 128 69,826 1,667 (35 ) 71,458 Other marketable securities: U.S. Government agency obligations 45,046 333 0 45,379 Municipal obligations 1,091 5 0 1,096 Corporate obligations 37 0 (1 ) 36 Corporate preferred stock 700 0 (105 ) 595 46,874 338 (106 ) 47,106 $ 116,700 2,005 (141 ) 118,564 Dollars in thousands) Amortized cost Gross unrealized Gross unrealized losses Fair value December 31, 2019 Mortgage-backed securities: FNMA $ 46,604 47 (65 ) 46,586 FHLMC 8,004 88 0 8,092 Collateralized mortgage obligations: FNMA 169 4 0 173 54,777 139 (65 ) 54,851 Other marketable securities: U.S. Government agency obligations 49,974 39 (21 ) 49,992 Municipal obligations 1,969 7 0 1,976 Corporate obligations 108 0 0 108 Corporate preferred stock 700 0 (35 ) 665 52,751 46 (56 ) 52,741 $ 107,528 185 (121 ) 107,592 |
Available-for-sale Securities [Member] | |
Notes Tables | |
Contractual Obligation, Fiscal Year Maturity [Table Text Block] | (Dollars in thousands) Amortized Cost Fair Value Due less than one year $ 63,341 64,159 Due after one year through five years 43,832 44,776 Due after five years through ten years 8,662 8,865 Due after ten years 865 764 Total $ 116,700 118,564 |
Note 8 - Loans Receivable, Net
Note 8 - Loans Receivable, Net (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Notes Tables | |
Summary of Loans Receivable [Table Text Block] | (Dollars in thousands) September 30, 2020 December 31, Single family $ 130,843 120,064 Commercial real estate: Real estate rental and leasing 213,696 192,502 Other 170,211 157,693 383,907 350,195 Consumer 59,271 69,949 Commercial business 106,796 64,227 Total loans 680,817 604,435 Less: Unamortized discounts 13 15 Net deferred loan fees (costs) 975 (536 ) Allowance for loan losses 9,532 8,564 Total loans receivable, net $ 670,297 596,392 |
Note 9 - Allowance for Loan L_2
Note 9 - Allowance for Loan Losses and Credit Quality Information (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Notes Tables | |
Financing Receivable, Allowance for Credit Loss [Table Text Block] | (Dollars in thousands) Single Family Commercial Consumer Commercial Total For the three months ended September 30, 2020: Balance, June 30, 2020 $ 938 5,382 1,464 865 8,649 Provision for losses 27 878 (64 ) (71 ) 770 Charge-offs 0 0 (29 ) (8 ) (37 ) Recoveries 0 0 5 145 150 Balance, September 30, 2020 $ 965 6,260 1,376 931 9,532 For the nin e months ended September 30, 2020 : Balance, December 31, 2019 $ 857 5,060 1,507 1,140 8,564 Provision for losses 108 1,913 (79 ) (394 ) 1,548 Charge-offs 0 (730 ) (74 ) (8 ) (812 ) Recoveries 0 17 22 193 232 Balance, September 30, 2020 $ 965 6,260 1,376 931 9,532 Allocated to: Specific reserves $ 62 451 119 93 725 General reserves 795 4,609 1,388 1,047 7,839 Balance, December 31, 2019 $ 857 5,060 1,507 1,140 8,564 Allocated to: Specific reserves $ 31 5 63 17 116 General reserves 934 6,255 1,313 914 9,416 Balance, September 30, 2020 $ 965 6,260 1,376 931 9,532 Loans receivable at December 31, 201 9 : Individually reviewed for impairment $ 974 1,166 976 735 3,851 Collectively reviewed for impairment 119,090 349,029 68,973 63,492 600,584 Ending balance $ 120,064 350,195 69,949 64,227 604,435 Loans receivable at September 30, 2020: Individually reviewed for impairment $ 708 1,537 707 45 2,997 Collectively reviewed for impairment 130,135 382,370 58,564 106,751 677,820 Ending balance $ 130,843 383,907 59,271 106,796 680,817 (Dollars in thousands) Single Family Commercial Consumer Commercial Total For the three months ended September 30, 2019: Balance, June 30, 2019 $ 867 4,762 1,632 1,363 8,624 Provision for losses 24 (42 ) (37 ) (365 ) (420 ) Charge-offs (2 ) 0 (46 ) 0 (48 ) Recoveries 0 0 2 37 39 Balance, September 30, 2019 $ 889 4,720 1,551 1,035 8,195 For the nine months ended September 30, 2019: Balance, December 31, 2018 $ 833 4,869 1,622 1,362 8,686 Provision for losses 58 (1,834 ) 13 311 (1,452 ) Charge-offs (2 ) 0 (92 ) (869 ) (963 ) Recoveries 0 1,685 8 231 1,924 Balance, September 30, 2019 $ 889 4,720 1,551 1,035 8,195 |
Financing Receivable Credit Quality Indicators [Table Text Block] | September 30, 2020 Classified Unclassified (Dollars in thousands) Special Substandard Doubtful Loss Total Total Total Loans Single family $ 274 2,313 31 0 2,618 128,225 130,843 Commercial real estate: Real estate rental and leasing 5,194 3,451 0 0 8,645 205,051 213,696 Other 5,537 5,574 0 0 11,111 159,100 170,211 Consumer 0 624 63 20 707 58,564 59,271 Commercial business 3,575 1,884 0 0 5,459 101,337 106,796 $ 14,580 13,846 94 20 28,540 652,277 680,817 December 31, 2019 Classified Unclassified (Dollars in thousands) Special Substandard Doubtful Loss Total Total Total Loans Single family $ 1,118 1,765 35 0 2,918 117,146 120,064 Commercial real estate: Real estate rental and leasing 3,489 9,114 0 0 12,603 179,899 192,502 Other 4,451 5,253 0 0 9,704 147,989 157,693 Consumer 0 842 69 65 976 68,973 69,949 Commercial business 5,710 2,516 0 0 8,226 56,001 64,227 $ 14,768 19,490 104 65 34,427 570,008 604,435 |
Financing Receivable, Past Due [Table Text Block] | (Dollars in thousands) 30-59 Days 60-89 Days 90 Days or More Past Due Total Past Due Current Total Loans Loans 90 Days September 30, 2020 Single family $ 550 223 144 917 129,926 130,843 0 Commercial real estate: Real estate rental and leasing 0 0 0 0 213,696 213,696 0 Other 0 0 185 185 170,026 170,211 0 Consumer 360 49 300 709 58,562 59,271 0 Commercial business 0 0 0 0 106,796 106,796 0 $ 910 272 629 1,811 679,006 680,817 0 December 31, 201 9 Single family $ 786 77 59 922 119,142 120,064 0 Commercial real estate: Real estate rental and leasing 0 0 0 0 192,502 192,502 0 Other 0 0 0 0 157,693 157,693 0 Consumer 527 31 206 764 69,185 69,949 0 Commercial business 147 13 550 710 63,517 64,227 0 $ 1,460 121 815 2,396 602,039 604,435 0 |
Impaired Financing Receivables [Table Text Block] | September 30, 2020 December 31, 2019 (Dollars in thousands) Recorded Unpaid Related Recorded Unpaid Related Loans with no related allowance recorded: Single family $ 588 607 0 544 563 0 Commercial real estate: Real estate rental and leasing 968 1,618 0 0 0 0 Other 399 479 0 0 0 0 Consumer 596 596 0 781 781 0 Loans with an allowance recorded: Single family 120 120 31 430 430 62 Commercial real estate: Real estate rental and leasing 170 170 5 184 184 16 Other 0 0 0 982 982 435 Consumer 111 111 63 195 195 119 Commercial business 45 597 17 735 1,287 93 Total: Single family 708 727 31 974 993 62 Commercial real estate: Real estate rental and leasing 1,138 1,788 5 184 184 16 Other 399 479 0 982 982 435 Consumer 707 707 63 976 976 119 Commercial business 45 597 17 735 1,287 93 $ 2,997 4,298 116 3,851 4,422 725 For the three months ended For the nine months ended September 30, 2020 (Dollars in thousands) Average Recorded Interest Income Average Investment Interest Income Loans with no related allowance recorded: Single family $ 606 6 585 23 Commercial real estate: Real estate rental and leasing 985 0 493 33 Other 401 0 340 2 Consumer 586 3 640 9 Commercial business 4 0 2 0 Loans with an allowance recorded: Single family 121 0 273 0 Commercial real estate: Real estate rental and leasing 173 0 177 0 Other 0 0 487 0 Consumer 142 0 169 2 Commercial business 50 1 242 2 Total: Single family 727 6 858 23 Commercial real estate: Real estate rental and leasing 1,158 0 670 33 Other 401 0 827 2 Consumer 728 3 809 11 Commercial business 54 1 244 2 $ 3,068 10 3,408 71 For the three months ended For the nine months ended September 30, 2019 (Dollars in thousands) Average Recorded Interest Income Average Interest Income Loans with no related allowance recorded: Single family $ 551 6 499 17 Commercial real estate: Other 0 0 13 0 Consumer 612 3 530 17 Loans with an allowance recorded: Single family 579 1 684 2 Commercial real estate: Real estate rental and leasing 191 0 195 0 Other 1,061 20 1,065 22 Consumer 192 3 241 8 Commercial business 248 3 286 8 Total: Single family 1,130 7 1,183 19 Commercial real estate: Real estate rental and leasing 191 0 195 0 Other 1,061 20 1,078 22 Consumer 804 6 771 25 Commercial business 248 3 286 8 $ 3,434 36 3,513 74 |
Financing Receivable, Nonaccrual [Table Text Block] | (Dollars in thousands) September 30, 2020 December 31, 2019 Single family $ 352 617 Commercial real estate: Real estate rental and leasing 1,138 184 Other 399 0 Consumer 641 659 Commercial business 11 621 $ 2,541 2,081 |
Financing Receivable, Troubled Debt Restructuring [Table Text Block] | September 30, 2020 December 31, 2019 (Dollars in thousands) Accrual Non-Accrual Total Accrual Non-Accrual Total Single family $ 356 261 617 357 266 623 Commercial real estate 0 214 214 983 0 983 Consumer 66 589 655 316 429 745 Commercial business 35 0 35 114 0 114 $ 457 1,064 1,521 1,770 695 2,465 |
Financial Effects of Troubled Debt Restructurings and Difference Between Outstanding Recorded Balance Pre Modification and Post Modification [Table Text Block] | Three Months Ended September 30, 2020 Nine Months Ended September 30, 2020 (Dollars in thousands) Number of Pre- Post- Number of Pre- modification Post- modification Troubled debt restructurings: Single family 0 $ 0 0 1 $ 94 101 Commercial real estate: Other 0 0 0 2 293 293 Total 0 $ 0 0 3 $ 387 394 Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 (Dollars in thousands) Number of Pre- modification Post- modification Number of Pre- modification Post- modification Troubled debt restructurings: Single family 0 $ 0 0 3 $ 176 181 Consumer 1 58 58 4 118 118 Total 1 $ 58 58 7 $ 294 299 |
Schedule of Deferred Loans [Table Text Block] | (Dollars in thousands) Balance Balance Commercial real estate loans by industry: Hotels (1) $ 54,660 54,660 Retail/Office 7,127 20,322 Theaters 11,269 11,269 Multi-family 0 11,195 Single family 0 4,675 Restaurant/Bar 2,876 4,477 Other 5,747 9,449 Total commercial loans 81,679 116,047 Consumer loans by collateral type: Single family 366 2,955 Other 0 77 Total consumer loans 366 3,032 Total deferred loans $ 82,045 119,079 |
Note 10 - Intangible Assets (Ta
Note 10 - Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Notes Tables | |
Servicing Liability at Amortized Cost [Table Text Block] | (Dollars in thousands) Nine Months ended Twelve Months ended December 31, 2019 Nine Months ended September 30, 2019 Balance, beginning of period $ 2,172 1,855 1,855 Originations 1,710 1,097 674 Amortization (1,002 ) (780 ) (535 ) Balance, end of period $ 2,880 2,172 1,994 Fair value of mortgage servicing rights $ 2,956 3,390 2,922 |
Summary of Risk Characteristics of Loans Being Serviced [Table Text Block] | Weighted Weighted Loan Average Average Principal Interest Remaining Number (Dollars in thousands) Balance Rate Term (months) of Loans Original term 30 year fixed rate $ 380,018 3.74 % 311 2,593 Original term 15 year fixed rate 117,870 3.03 140 1,064 |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | September 30, 2020 Gross (Dollars in thousands) Carrying Amount Accumulated Amortization Unamortized Amount Mortgage servicing rights $ 6,018 (3,138 ) 2,880 Core deposit intangible 574 (492 ) 82 Goodwill 802 0 802 Total $ 7,394 (3,630 ) 3,764 December 31, 2019 Gross (Dollars in thousands) Carrying Amount Accumulated Amortization Unamortized Amount Mortgage servicing rights $ 4,968 (2,796 ) 2,172 Core deposit intangible 574 (418 ) 156 Goodwill 802 0 802 Total $ 6,344 (3,214 ) 3,130 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | (Dollars in thousands) Mortgage Core Deposit Total Amortizing Year ended December 31, 2020 $ 156 25 181 2021 596 47 643 2022 550 10 560 2023 495 0 495 2024 437 0 437 Thereafter 646 0 646 Total $ 2,880 82 2,962 |
Note 11 - Leases (Tables)
Note 11 - Leases (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Notes Tables | |
Lease, Cost [Table Text Block] | (Dollars in thousands) Three Months Ended Nine Months Ended Operating lease cost $ 224 669 |
Other Information Related to Operating Leases [Table Text Block] | (Dollars in thousands) Three Months Three Months Nine Months Nine Months Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 224 221 669 667 Weighted-average remaining lease term – operating leases, in years 3.9 5.0 3.9 5.0 Weighted-average discount rate – operating leases 2.19 % 2.19 % 2.19 % 2.19 % |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | (Dollars in thousands) September 30, 2020 2020 $ 222 2021 902 2022 924 2023 802 2024 667 2025 and thereafter 11 Total lease payments 3,528 Less: Interest (153 ) Present value of lease liabilities $ 3,375 |
Note 12 - Earnings Per Common_2
Note 12 - Earnings Per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months Ended September 30, Nine Months Ended September 30, (In thousands, except per share data) 2020 2019 2020 2019 Weighted average number of common shares outstanding used in basic earnings per share calculation 4,628 4,614 4,624 4,606 Net dilutive effect of: Restricted stock awards and options 23 28 26 29 Weighted average number of shares outstanding adjusted for effect of dilutive securities 4,651 4,642 4,650 4,635 Income available to common shareholders $ 3,101 2,076 7,177 6,557 Basic earnings per common share $ 0.67 0.45 1.55 1.42 Diluted earnings per common share $ 0.67 0.45 1.54 1.41 |
Note 13 - Regulatory Capital _2
Note 13 - Regulatory Capital and Oversight (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Notes Tables | |
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations [Table Text Block] | Actual Required to be Excess Capital To Be Well Capitalized (Dollars in thousands) Amount Percent of Amount Percent of Amount Percent of Amount Percent of September 30, 2020 Common equity tier 1 capital $ 86,209 13.16 % $ 29,481 4.50 % $ 56,728 8.66 % $ 42,583 6.50 % Tier 1 capital leverage 86,209 9.73 35,432 4.00 50,777 5.73 44,291 5.00 Tier 1 risk-based capital 86,209 13.16 39,307 6.00 46,902 7.16 52,410 8.00 Total risk-based capital 94,414 14.41 52,410 8.00 42,004 6.41 65,512 10.00 |
Note 16 - Business Segments (Ta
Note 16 - Business Segments (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | (Dollars in thousands) Home Federal Other Eliminations Consolidated At or for the nine months ended September 30, 2020: Interest income - external customers $ 23,676 0 0 23,676 Non-interest income - external customers 10,461 0 0 10,461 Intersegment interest income 0 32 (32 ) 0 Intersegment non-interest income 175 7,609 (7,784 ) 0 Interest expense 2,325 0 (32 ) 2,293 Provision for loan losses 1,548 0 0 1,548 Non-interest expense 19,863 562 (175 ) 20,250 Income tax expense 2,967 (98 ) 0 2,869 Net income 7,609 7,177 (7,609 ) 7,177 Total assets 897,694 101,308 (100,550 ) 898,452 At or for the nine months ended September 30, 2019: Interest income - external customers $ 24,029 2 (2 ) 24,029 Non-interest income - external customers 5,939 0 0 5,939 Intersegment non-interest income 176 7,015 (7,191 ) 0 Interest expense 2,427 0 (2 ) 2,425 Provision for loan losses (1,452 ) 0 0 (1,452 ) Non-interest expense 19,363 574 (176 ) 19,761 Income tax expense 2,791 (114 ) 0 2,677 Net income 7,015 6,557 (7,015 ) 6,557 Total assets 762,445 91,388 (90,605 ) 763,228 At or for the quarter ended September 30, 2020: Interest income - external customers $ 7,949 0 0 7,949 Non-interest income - external customers 4,396 0 0 4,396 Intersegment interest income 0 9 (9 ) 0 Intersegment non-interest income 58 3,251 (3,309 ) 0 Interest expense 665 0 (9 ) 656 Provision for loan losses 770 0 0 770 Non-interest expense 6,460 194 (58 ) 6,596 Income tax expense 1,257 (35 ) 0 1,222 Net income 3,251 3,101 (3,251 ) 3,101 Total assets 897,694 101,308 (100,550 ) 898,452 At or for the quarter ended September 30, 2019: Interest income - external customers $ 7,998 2 (2 ) 7,998 Non-interest income - external customers 2,227 0 0 2,227 Intersegment non-interest income 59 2,235 (2,294 ) 0 Interest expense 908 0 (2 ) 906 Provision for loan losses (420 ) 0 0 (420 ) Non-interest expense 6,604 202 (59 ) 6,747 Income tax expense 957 (41 ) 0 916 Net income 2,235 2,076 (2,235 ) 2,076 Total assets 762,445 91,388 (90,605 ) 763,228 |
Note 1 - HMN Financial, Inc. (D
Note 1 - HMN Financial, Inc. (Details Textual) | 9 Months Ended |
Sep. 30, 2020 | |
Percentage Of Ownership In Subsidiaries | 100.00% |
Number of Wholly Owned Subsidiaries | 2 |
Note 4 - Fair Value Measureme_3
Note 4 - Fair Value Measurements - Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Securities available for sale | $ 118,564 | $ 107,592 |
Fair Value, Recurring [Member] | ||
Securities available for sale | 118,564 | 107,592 |
Equity securities | 127 | 167 |
Mortgage loan commitments | 266 | 14 |
Total | 118,957 | 107,773 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Securities available for sale | 0 | 0 |
Equity securities | 0 | 0 |
Mortgage loan commitments | 0 | 0 |
Total | 0 | 0 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Securities available for sale | 118,564 | 107,592 |
Equity securities | 127 | 167 |
Mortgage loan commitments | 266 | 14 |
Total | 118,957 | 107,773 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Securities available for sale | 0 | 0 |
Equity securities | 0 | 0 |
Mortgage loan commitments | 0 | 0 |
Total | $ 0 | $ 0 |
Note 4 - Fair Value Measureme_4
Note 4 - Fair Value Measurements - Assets Measured at Fair Value on Nonrecurring Basis (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2020 | Dec. 31, 2019 | ||||
Loans held for sale, Total gains (losses) | $ 24 | $ 86 | $ (40) | |||
Loans (1), Total gains (losses) | 12 | [1] | 50 | [1] | (28) | |
Real estate, net (2), Total gains (losses) | 0 | [2] | 0 | [2] | 0 | |
Total, Total gains (losses) | 36 | 136 | (68) | |||
Fair Value, Nonrecurring [Member] | ||||||
Loans held for sale | 7,225 | 7,225 | 3,606 | |||
Mortgage servicing rights | 2,880 | 2,880 | 2,172 | |||
Mortgage servicing rights, Total gains (losses) | 0 | 0 | 0 | |||
Loans (1) | [1] | 2,881 | 2,881 | 3,126 | ||
Real estate, net (2) | [2] | 414 | 414 | 580 | ||
Total | 13,400 | 13,400 | 9,484 | |||
Fair Value, Nonrecurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||||||
Loans held for sale | 0 | 0 | 0 | |||
Mortgage servicing rights | 0 | 0 | 0 | |||
Loans (1) | [1] | 0 | 0 | 0 | ||
Real estate, net (2) | [2] | 0 | 0 | 0 | ||
Total | 0 | 0 | 0 | |||
Fair Value, Nonrecurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||||||
Loans held for sale | 7,225 | 7,225 | 3,606 | |||
Mortgage servicing rights | 2,880 | 2,880 | 2,172 | |||
Loans (1) | [1] | 2,881 | 2,881 | 3,126 | ||
Real estate, net (2) | [2] | 414 | 414 | 580 | ||
Total | 13,400 | 13,400 | 9,484 | |||
Fair Value, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||||||
Loans held for sale | 0 | 0 | 0 | |||
Mortgage servicing rights | 0 | 0 | 0 | |||
Loans (1) | [1] | 0 | 0 | 0 | ||
Real estate, net (2) | [2] | 0 | 0 | 0 | ||
Total | $ 0 | $ 0 | $ 0 | |||
[1] | Represents the carrying value of loans for which adjustments are based on the appraised value of the collateral. The carrying value of loans fully charged-off is zero. | |||||
[2] | Represents the fair value of foreclosed real estate and other collateral owned that were measured at fair value subsequent to their initial classification as foreclosed assets. |
Note 5 - Fair Value of Financ_3
Note 5 - Fair Value of Financial Instruments - Estimated Fair Value of Company's Financial Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Securities available for sale | $ 118,564 | $ 107,592 |
Loans receivable, net | 670,297 | 596,392 |
Reported Value Measurement [Member] | ||
Cash and cash equivalents | 76,027 | 44,399 |
Securities available for sale | 118,564 | 107,592 |
Equity securities | 127 | 167 |
Loans held for sale | 7,225 | 3,606 |
Loans receivable, net | 670,297 | 596,392 |
Federal Home Loan Bank stock | 932 | 854 |
Accrued interest receivable | 4,236 | 2,251 |
Deposits | 787,023 | 673,870 |
Accrued interest payable | 225 | 420 |
Commitments to extend credit | 266 | 14 |
Commitments to sell loans | (102) | (16) |
Estimate of Fair Value Measurement [Member] | ||
Cash and cash equivalents | 76,027 | 44,399 |
Securities available for sale | 118,564 | 107,592 |
Equity securities | 127 | 167 |
Loans held for sale | 7,225 | 3,606 |
Loans receivable, net | 674,804 | 600,863 |
Federal Home Loan Bank stock | 932 | 854 |
Accrued interest receivable | 4,236 | 2,251 |
Deposits | 787,975 | 673,945 |
Accrued interest payable | 225 | 420 |
Commitments to extend credit | 266 | 14 |
Commitments to sell loans | (102) | (16) |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Cash and cash equivalents | 76,027 | 44,399 |
Securities available for sale | ||
Equity securities | ||
Loans held for sale | ||
Loans receivable, net | ||
Federal Home Loan Bank stock | ||
Accrued interest receivable | ||
Deposits | ||
Accrued interest payable | ||
Commitments to extend credit | ||
Commitments to sell loans | ||
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Cash and cash equivalents | ||
Securities available for sale | 118,564 | 107,592 |
Equity securities | 127 | 167 |
Loans held for sale | 7,225 | 3,606 |
Loans receivable, net | 674,804 | 600,863 |
Federal Home Loan Bank stock | 932 | 854 |
Accrued interest receivable | 4,236 | 2,251 |
Deposits | 787,975 | 673,945 |
Accrued interest payable | 225 | 420 |
Commitments to extend credit | ||
Commitments to sell loans | ||
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Cash and cash equivalents | ||
Securities available for sale | ||
Equity securities | ||
Loans held for sale | ||
Loans receivable, net | ||
Federal Home Loan Bank stock | ||
Accrued interest receivable | ||
Deposits | ||
Accrued interest payable | ||
Commitments to extend credit | ||
Commitments to sell loans | ||
Portion at Other than Fair Value Measurement [Member] | ||
Cash and cash equivalents | ||
Securities available for sale | ||
Equity securities | ||
Loans held for sale | ||
Loans receivable, net | ||
Federal Home Loan Bank stock | ||
Accrued interest receivable | ||
Deposits | ||
Accrued interest payable | ||
Commitments to extend credit | 191,522 | 178,804 |
Commitments to sell loans | $ 48,199 | $ 10,098 |
Note 6 - Other Comprehensive _3
Note 6 - Other Comprehensive Income (Loss) - Components of Other Comprehensive (Loss) Income and Related Tax Effects (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Other comprehensive income (loss), before tax | $ (281) | $ 206 | $ 1,800 | $ 1,491 |
Other comprehensive income (loss), tax | (79) | 57 | 503 | 416 |
Other comprehensive income (loss), net of tax | $ (202) | $ 149 | $ 1,297 | $ 1,075 |
Note 7 - Securities Available_3
Note 7 - Securities Available for Sale (Details Textual) $ in Thousands | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Other-than-temporary Impairment Loss, Debt Securities, Available-for-sale, Total | $ 0 |
Note 7 - Securities Available_4
Note 7 - Securities Available for Sale - Securities in a Continuous Unrealized Loss Position (Details) $ in Thousands | Sep. 30, 2020USD ($) | Dec. 31, 2019USD ($) |
Less Than Twelve Months # of Investments | 3 | 4 |
Less Than Twelve Months Fair Value | $ 10,291 | $ 12,143 |
Less Than Twelve Months Unrealized Losses | $ (36) | $ (65) |
Twelve Months or More # of Investments | 1 | 5 |
Twelve Months or More Fair Value | $ 595 | $ 20,637 |
Twelve Months or More Unrealized Losses | (105) | (56) |
Total fair value | 10,886 | 32,780 |
Total temporarily impaired securities | $ (141) | $ (121) |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | Federal National Mortgage Association Certificates and Obligations (FNMA) [Member] | ||
Less Than Twelve Months # of Investments | 2 | 4 |
Less Than Twelve Months Fair Value | $ 10,254 | $ 12,143 |
Less Than Twelve Months Unrealized Losses | $ (35) | $ (65) |
Twelve Months or More # of Investments | 0 | 0 |
Twelve Months or More Fair Value | $ 0 | $ 0 |
Twelve Months or More Unrealized Losses | 0 | 0 |
Total fair value | 10,254 | |
Total temporarily impaired securities | (65) | |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | US Government Agencies Debt Securities [Member] | ||
Total fair value | $ 12,143 | |
Other Marketable Securities [Member] | US Government Agencies Debt Securities [Member] | ||
Less Than Twelve Months # of Investments | 0 | |
Less Than Twelve Months Fair Value | $ 0 | |
Less Than Twelve Months Unrealized Losses | $ 0 | |
Twelve Months or More # of Investments | 4 | |
Twelve Months or More Fair Value | $ 19,972 | |
Twelve Months or More Unrealized Losses | (21) | |
Total fair value | 19,972 | |
Total temporarily impaired securities | $ (35) | $ (21) |
Other Marketable Securities [Member] | Corporate Debt Securities [Member] | ||
Less Than Twelve Months # of Investments | 1 | |
Less Than Twelve Months Fair Value | $ 37 | |
Less Than Twelve Months Unrealized Losses | $ (1) | |
Twelve Months or More # of Investments | 0 | |
Twelve Months or More Fair Value | $ 0 | |
Twelve Months or More Unrealized Losses | 0 | |
Total fair value | 37 | |
Total temporarily impaired securities | $ (1) | |
Other Marketable Securities [Member] | Preferred Stock [Member] | ||
Less Than Twelve Months # of Investments | 0 | 0 |
Less Than Twelve Months Fair Value | $ 0 | $ 0 |
Less Than Twelve Months Unrealized Losses | $ 0 | $ 0 |
Twelve Months or More # of Investments | 1 | 1 |
Twelve Months or More Fair Value | $ 595 | $ 665 |
Twelve Months or More Unrealized Losses | (105) | (35) |
Total fair value | 595 | 665 |
Total temporarily impaired securities | $ (105) | $ (35) |
Note 7 - Securities Available_5
Note 7 - Securities Available for Sale - Summary of Securities Available for Sale (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Securities available for sale, amortized cost | $ 116,700 | $ 107,528 |
Investment securities available for sale, gross unrealized gains | 2,005 | 185 |
Investment securities available for sale, gross unrealized losses | (141) | (121) |
Securities available for sale | 118,564 | 107,592 |
Collateralized Mortgage Backed Securities [Member] | ||
Securities available for sale, amortized cost | 69,826 | 54,777 |
Investment securities available for sale, gross unrealized gains | 1,667 | 139 |
Investment securities available for sale, gross unrealized losses | (35) | (65) |
Securities available for sale | 71,458 | 54,851 |
Other Marketable Securities [Member] | ||
Securities available for sale, amortized cost | 46,874 | 52,751 |
Investment securities available for sale, gross unrealized gains | 338 | 46 |
Investment securities available for sale, gross unrealized losses | (106) | (56) |
Securities available for sale | 47,106 | 52,741 |
Federal National Mortgage Association Certificates and Obligations (FNMA) [Member] | Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | ||
Securities available for sale, amortized cost | 52,922 | 46,604 |
Investment securities available for sale, gross unrealized gains | 1,388 | 47 |
Investment securities available for sale, gross unrealized losses | (35) | (65) |
Securities available for sale | 54,275 | 46,586 |
Federal National Mortgage Association Certificates and Obligations (FNMA) [Member] | Collateralized Mortgage Obligations [Member] | ||
Securities available for sale, amortized cost | 121 | 169 |
Investment securities available for sale, gross unrealized gains | 7 | 4 |
Investment securities available for sale, gross unrealized losses | 0 | 0 |
Securities available for sale | 128 | 173 |
Federal Home Loan Mortgage Corporation Certificates and Obligations (FHLMC) [Member] | Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | ||
Securities available for sale, amortized cost | 16,783 | 8,004 |
Investment securities available for sale, gross unrealized gains | 272 | 88 |
Investment securities available for sale, gross unrealized losses | 0 | 0 |
Securities available for sale | 17,055 | 8,092 |
US Government Agencies Debt Securities [Member] | Other Marketable Securities [Member] | ||
Securities available for sale, amortized cost | 45,046 | 49,974 |
Investment securities available for sale, gross unrealized gains | 333 | 39 |
Investment securities available for sale, gross unrealized losses | 0 | (21) |
Securities available for sale | 45,379 | 49,992 |
US States and Political Subdivisions Debt Securities [Member] | Other Marketable Securities [Member] | ||
Securities available for sale, amortized cost | 1,091 | 1,969 |
Investment securities available for sale, gross unrealized gains | 5 | 7 |
Investment securities available for sale, gross unrealized losses | 0 | 0 |
Securities available for sale | 1,096 | 1,976 |
Corporate Debt Securities [Member] | Other Marketable Securities [Member] | ||
Securities available for sale, amortized cost | 37 | 108 |
Investment securities available for sale, gross unrealized gains | 0 | 0 |
Investment securities available for sale, gross unrealized losses | (1) | 0 |
Securities available for sale | 36 | 108 |
Preferred Stock [Member] | Other Marketable Securities [Member] | ||
Securities available for sale, amortized cost | 700 | 700 |
Investment securities available for sale, gross unrealized gains | 0 | 0 |
Investment securities available for sale, gross unrealized losses | (105) | (35) |
Securities available for sale | $ 595 | $ 665 |
Note 7 - Securities Available_6
Note 7 - Securities Available for Sale - Securities by Contractual Maturity (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Due less than one year, amortized cost | $ 63,341 | |
Due less than one year, fair value | 64,159 | |
Due after one year through five years, amortized cost | 43,832 | |
Due after one year through five years, fair value | 44,776 | |
Due after five years through ten years, amortized cost | 8,662 | |
Due after five years through ten years, fair value | 8,865 | |
Due after ten years, amortized cost | 865 | |
Due after ten years, fair value | 764 | |
Total, amortized cost | 116,700 | $ 107,528 |
Total, fair value | $ 118,564 | $ 107,592 |
Note 8 - Loans Receivable, Ne_2
Note 8 - Loans Receivable, Net - Loans Receivable (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 |
Loans receivable | $ 680,817 | $ 604,435 | ||||
Unamortized discounts | 13 | 15 | ||||
Net deferred loan fees (costs) | 975 | (536) | ||||
Allowance for loan losses | 9,532 | $ 8,649 | 8,564 | $ 8,195 | $ 8,624 | $ 8,686 |
Total loans receivable, net | 670,297 | 596,392 | ||||
Residential Portfolio Segment [Member] | ||||||
Loans receivable | 130,843 | 120,064 | ||||
Allowance for loan losses | 965 | 938 | 857 | 889 | 867 | 833 |
Commercial Real Estate Portfolio Segment [Member] | ||||||
Loans receivable | 383,907 | 350,195 | ||||
Allowance for loan losses | 6,260 | 5,382 | 5,060 | 4,720 | 4,762 | 4,869 |
Commercial Real Estate Portfolio Segment [Member] | Real Estate Loan [Member] | ||||||
Loans receivable | 213,696 | 192,502 | ||||
Commercial Real Estate Portfolio Segment [Member] | Commercial Real Estate Other [Member] | ||||||
Loans receivable | 170,211 | 157,693 | ||||
Consumer Portfolio Segment [Member] | ||||||
Loans receivable | 59,271 | 69,949 | ||||
Allowance for loan losses | 1,376 | 1,464 | 1,507 | 1,551 | 1,632 | 1,622 |
Commercial Portfolio Segment [Member] | ||||||
Loans receivable | 106,796 | 64,227 | ||||
Allowance for loan losses | $ 931 | $ 865 | $ 1,140 | $ 1,035 | $ 1,363 | $ 1,362 |
Note 9 - Allowance for Loan L_3
Note 9 - Allowance for Loan Losses and Credit Quality Information (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Jun. 30, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | |
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest | $ 2,541 | $ 2,541 | $ 2,081 | |||||
Impaired Financing Receivable, Related Allowance | 116 | 116 | 725 | |||||
Loan Receivable for Which Value of Collateral Sufficient to Repay | 2,200 | 2,200 | 800 | |||||
Financing Receivable, Troubled Debt Restructuring | 1,521 | 1,521 | 2,465 | |||||
Financing Receivable, Troubled Debt Restructuring, Commitment to Lend | $ 1,300 | $ 1,300 | 800 | |||||
Loan to Value Ratio | 75.00% | 75.00% | ||||||
Financing Receivable, Troubled Debt Restructuring, Subsequent Default | $ 0 | $ 0 | $ 0 | $ 0 | ||||
Financing Receivable, Troubled Debt Restructuring, Reserves | $ 100 | $ 100 | $ 600 | |||||
Percentage Reserves For Loan Losses On Troubled Debt Restructurings | 1.10% | 1.10% | 7.20% | |||||
Loans and Leases Receivable, Allowance, Ending Balance | $ 9,532 | 8,195 | $ 9,532 | 8,195 | $ 8,649 | $ 8,564 | $ 8,624 | $ 8,686 |
Deferred Loan Payments | 82,045 | 82,045 | 119,079 | |||||
Commercial Real Estate Portfolio Segment [Member] | ||||||||
Impaired Financing Receivable, Related Allowance | 5 | 5 | 451 | |||||
Financing Receivable, Troubled Debt Restructuring | 214 | 214 | 983 | |||||
Loans and Leases Receivable, Allowance, Ending Balance | 6,260 | 4,720 | 6,260 | 4,720 | 5,382 | 5,060 | $ 4,762 | $ 4,869 |
Deferred Loan Payments | 81,679 | 81,679 | $ 116,047 | |||||
Hotel [Member] | MINNESOTA | Commercial Real Estate Portfolio Segment [Member] | ||||||||
Deferred Loan Payments | 38,500 | 38,500 | ||||||
Hotel [Member] | Rochester, Minnesota [Member] | Commercial Real Estate Portfolio Segment [Member] | ||||||||
Deferred Loan Payments | 21,300 | 21,300 | ||||||
Hotel [Member] | Minneapolis, Minnesota [Member] | ||||||||
Deferred Loan Payments | 13,800 | 13,800 | ||||||
Hotel [Member] | St. Cloud, Minnesota {Member] | Commercial Real Estate Portfolio Segment [Member] | ||||||||
Deferred Loan Payments | 3,400 | 3,400 | ||||||
Nonperforming Financial Instruments [Member] | ||||||||
Impaired Financing Receivable, Related Allowance | 100 | 100 | 200 | |||||
Financing Receivable, Troubled Debt Restructuring | 1,064 | 1,064 | 695 | |||||
Nonperforming Financial Instruments [Member] | Commercial Real Estate Portfolio Segment [Member] | ||||||||
Financing Receivable, Troubled Debt Restructuring | 214 | 214 | 0 | |||||
Performing Financial Instruments [Member] | ||||||||
Financing Receivable, Troubled Debt Restructuring | 457 | 457 | 1,770 | |||||
Performing Financial Instruments [Member] | Commercial Real Estate Portfolio Segment [Member] | ||||||||
Financing Receivable, Troubled Debt Restructuring | 0 | 0 | $ 983 | |||||
Performing Financial Instruments [Member] | Classified [Member] | ||||||||
Financing Receivable, Troubled Debt Restructuring | $ 0 | $ 100 | $ 0 | $ 100 |
Note 9 - Allowance for Loan L_4
Note 9 - Allowance for Loan Losses and Credit Quality Information - Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Dec. 31, 2019 | |
Balance | $ 8,649 | $ 8,624 | $ 8,564 | $ 8,686 | ||
Provision for losses | (770) | 420 | (1,548) | 1,452 | ||
Charge-offs | (37) | (48) | (812) | (963) | ||
Recoveries | 150 | 39 | 232 | 1,924 | ||
Balance | 9,532 | 8,195 | 9,532 | 8,195 | ||
Specific reserves | $ 116 | $ 725 | ||||
General reserves | 9,416 | 7,839 | ||||
Balance | 8,649 | 8,195 | 8,564 | 8,686 | 9,532 | 8,564 |
Individually reviewed for impairment | 2,997 | 3,851 | ||||
Collectively reviewed for impairment | 677,820 | 600,584 | ||||
Ending balance | 680,817 | 604,435 | ||||
Residential Portfolio Segment [Member] | ||||||
Balance | 938 | 867 | 857 | 833 | ||
Provision for losses | (27) | (24) | (108) | (58) | ||
Charge-offs | 0 | (2) | 0 | (2) | ||
Recoveries | 0 | 0 | 0 | 0 | ||
Balance | 965 | 889 | 965 | 889 | ||
Specific reserves | 31 | 62 | ||||
General reserves | 934 | 795 | ||||
Balance | 965 | 889 | 857 | 833 | 965 | 857 |
Individually reviewed for impairment | 708 | 974 | ||||
Collectively reviewed for impairment | 130,135 | 119,090 | ||||
Ending balance | 130,843 | 120,064 | ||||
Commercial Real Estate Portfolio Segment [Member] | ||||||
Balance | 5,382 | 4,762 | 5,060 | 4,869 | ||
Provision for losses | (878) | 42 | (1,913) | 1,834 | ||
Charge-offs | 0 | 0 | (730) | 0 | ||
Recoveries | 0 | 0 | 17 | 1,685 | ||
Balance | 6,260 | 4,720 | 6,260 | 4,720 | ||
Specific reserves | 5 | 451 | ||||
General reserves | 6,255 | 4,609 | ||||
Balance | 6,260 | 4,720 | 5,060 | 4,869 | 6,260 | 5,060 |
Individually reviewed for impairment | 1,537 | 1,166 | ||||
Collectively reviewed for impairment | 382,370 | 349,029 | ||||
Ending balance | 383,907 | 350,195 | ||||
Consumer Portfolio Segment [Member] | ||||||
Balance | 1,464 | 1,632 | 1,507 | 1,622 | ||
Provision for losses | 64 | 37 | 79 | (13) | ||
Charge-offs | (29) | (46) | (74) | (92) | ||
Recoveries | 5 | 2 | 22 | 8 | ||
Balance | 1,376 | 1,551 | 1,376 | 1,551 | ||
Specific reserves | 63 | 119 | ||||
General reserves | 1,313 | 1,388 | ||||
Balance | 1,376 | 1,551 | 1,507 | 1,622 | 1,376 | 1,507 |
Individually reviewed for impairment | 707 | 976 | ||||
Collectively reviewed for impairment | 58,564 | 68,973 | ||||
Ending balance | 59,271 | 69,949 | ||||
Commercial Portfolio Segment [Member] | ||||||
Balance | 865 | 1,363 | 1,140 | 1,362 | ||
Provision for losses | 71 | 365 | 394 | (311) | ||
Charge-offs | (8) | 0 | (8) | (869) | ||
Recoveries | 145 | 37 | 193 | 231 | ||
Balance | 931 | 1,035 | 931 | 1,035 | ||
Specific reserves | 17 | 93 | ||||
General reserves | 914 | 1,047 | ||||
Balance | $ 931 | $ 1,035 | $ 1,140 | $ 1,362 | 931 | 1,140 |
Individually reviewed for impairment | 45 | 735 | ||||
Collectively reviewed for impairment | 106,751 | 63,492 | ||||
Ending balance | $ 106,796 | $ 64,227 |
Note 9 - Allowance for Loan L_5
Note 9 - Allowance for Loan Losses and Credit Quality Information - Classified and Unclassified Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Loans receivable | $ 680,817 | $ 604,435 |
Classified [Member] | ||
Loans receivable | 28,540 | 34,427 |
Classified [Member] | Special Mention [Member] | ||
Loans receivable | 14,580 | 14,768 |
Classified [Member] | Substandard [Member] | ||
Loans receivable | 13,846 | 19,490 |
Classified [Member] | Doubtful [Member] | ||
Loans receivable | 94 | 104 |
Classified [Member] | Unlikely to be Collected Financing Receivable [Member] | ||
Loans receivable | 20 | 65 |
Unclassified [Member] | ||
Loans receivable | 652,277 | 570,008 |
Residential Portfolio Segment [Member] | ||
Loans receivable | 130,843 | 120,064 |
Residential Portfolio Segment [Member] | Classified [Member] | ||
Loans receivable | 2,618 | 2,918 |
Residential Portfolio Segment [Member] | Classified [Member] | Special Mention [Member] | ||
Loans receivable | 274 | 1,118 |
Residential Portfolio Segment [Member] | Classified [Member] | Substandard [Member] | ||
Loans receivable | 2,313 | 1,765 |
Residential Portfolio Segment [Member] | Classified [Member] | Doubtful [Member] | ||
Loans receivable | 31 | 35 |
Residential Portfolio Segment [Member] | Classified [Member] | Unlikely to be Collected Financing Receivable [Member] | ||
Loans receivable | 0 | 0 |
Residential Portfolio Segment [Member] | Unclassified [Member] | ||
Loans receivable | 128,225 | 117,146 |
Commercial Real Estate Portfolio Segment [Member] | ||
Loans receivable | 383,907 | 350,195 |
Commercial Real Estate Portfolio Segment [Member] | Real Estate Loan [Member] | ||
Loans receivable | 213,696 | 192,502 |
Commercial Real Estate Portfolio Segment [Member] | Commercial Real Estate Other [Member] | ||
Loans receivable | 170,211 | 157,693 |
Commercial Real Estate Portfolio Segment [Member] | Classified [Member] | Real Estate Loan [Member] | ||
Loans receivable | 8,645 | 12,603 |
Commercial Real Estate Portfolio Segment [Member] | Classified [Member] | Commercial Real Estate Other [Member] | ||
Loans receivable | 11,111 | 9,704 |
Commercial Real Estate Portfolio Segment [Member] | Classified [Member] | Special Mention [Member] | Real Estate Loan [Member] | ||
Loans receivable | 5,194 | 3,489 |
Commercial Real Estate Portfolio Segment [Member] | Classified [Member] | Special Mention [Member] | Commercial Real Estate Other [Member] | ||
Loans receivable | 5,537 | 4,451 |
Commercial Real Estate Portfolio Segment [Member] | Classified [Member] | Substandard [Member] | Real Estate Loan [Member] | ||
Loans receivable | 3,451 | 9,114 |
Commercial Real Estate Portfolio Segment [Member] | Classified [Member] | Substandard [Member] | Commercial Real Estate Other [Member] | ||
Loans receivable | 5,574 | 5,253 |
Commercial Real Estate Portfolio Segment [Member] | Classified [Member] | Doubtful [Member] | Real Estate Loan [Member] | ||
Loans receivable | 0 | 0 |
Commercial Real Estate Portfolio Segment [Member] | Classified [Member] | Doubtful [Member] | Commercial Real Estate Other [Member] | ||
Loans receivable | 0 | 0 |
Commercial Real Estate Portfolio Segment [Member] | Classified [Member] | Unlikely to be Collected Financing Receivable [Member] | Real Estate Loan [Member] | ||
Loans receivable | 0 | 0 |
Commercial Real Estate Portfolio Segment [Member] | Classified [Member] | Unlikely to be Collected Financing Receivable [Member] | Commercial Real Estate Other [Member] | ||
Loans receivable | 0 | 0 |
Commercial Real Estate Portfolio Segment [Member] | Unclassified [Member] | Real Estate Loan [Member] | ||
Loans receivable | 205,051 | 179,899 |
Commercial Real Estate Portfolio Segment [Member] | Unclassified [Member] | Commercial Real Estate Other [Member] | ||
Loans receivable | 159,100 | 147,989 |
Consumer Portfolio Segment [Member] | ||
Loans receivable | 59,271 | 69,949 |
Consumer Portfolio Segment [Member] | Classified [Member] | ||
Loans receivable | 707 | 976 |
Consumer Portfolio Segment [Member] | Classified [Member] | Special Mention [Member] | ||
Loans receivable | 0 | 0 |
Consumer Portfolio Segment [Member] | Classified [Member] | Substandard [Member] | ||
Loans receivable | 624 | 842 |
Consumer Portfolio Segment [Member] | Classified [Member] | Doubtful [Member] | ||
Loans receivable | 63 | 69 |
Consumer Portfolio Segment [Member] | Classified [Member] | Unlikely to be Collected Financing Receivable [Member] | ||
Loans receivable | 20 | 65 |
Consumer Portfolio Segment [Member] | Unclassified [Member] | ||
Loans receivable | 58,564 | 68,973 |
Commercial Portfolio Segment [Member] | ||
Loans receivable | 106,796 | 64,227 |
Commercial Portfolio Segment [Member] | Classified [Member] | ||
Loans receivable | 5,459 | 8,226 |
Commercial Portfolio Segment [Member] | Classified [Member] | Special Mention [Member] | ||
Loans receivable | 3,575 | 5,710 |
Commercial Portfolio Segment [Member] | Classified [Member] | Substandard [Member] | ||
Loans receivable | 1,884 | 2,516 |
Commercial Portfolio Segment [Member] | Classified [Member] | Doubtful [Member] | ||
Loans receivable | 0 | 0 |
Commercial Portfolio Segment [Member] | Classified [Member] | Unlikely to be Collected Financing Receivable [Member] | ||
Loans receivable | 0 | 0 |
Commercial Portfolio Segment [Member] | Unclassified [Member] | ||
Loans receivable | $ 101,337 | $ 56,001 |
Note 9 - Allowance for Loan L_6
Note 9 - Allowance for Loan Losses and Credit Quality Information - Aging of Past Due Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Loans past due | $ 1,811 | $ 2,396 |
Current loans | 679,006 | 602,039 |
Loans receivable | 680,817 | 604,435 |
Loans 90 days or more past due and still accruing | 0 | 0 |
Residential Portfolio Segment [Member] | ||
Loans past due | 917 | 922 |
Current loans | 129,926 | 119,142 |
Loans receivable | 130,843 | 120,064 |
Loans 90 days or more past due and still accruing | 0 | 0 |
Commercial Real Estate Portfolio Segment [Member] | ||
Loans receivable | 383,907 | 350,195 |
Commercial Real Estate Portfolio Segment [Member] | Real Estate Loan [Member] | ||
Loans past due | 0 | 0 |
Current loans | 213,696 | 192,502 |
Loans receivable | 213,696 | 192,502 |
Loans 90 days or more past due and still accruing | 0 | 0 |
Commercial Real Estate Portfolio Segment [Member] | Commercial Real Estate Other [Member] | ||
Loans past due | 185 | 0 |
Current loans | 170,026 | 157,693 |
Loans receivable | 170,211 | 157,693 |
Loans 90 days or more past due and still accruing | 0 | 0 |
Consumer Portfolio Segment [Member] | ||
Loans past due | 709 | 764 |
Current loans | 58,562 | 69,185 |
Loans receivable | 59,271 | 69,949 |
Loans 90 days or more past due and still accruing | 0 | 0 |
Commercial Portfolio Segment [Member] | ||
Loans past due | 0 | 710 |
Current loans | 106,796 | 63,517 |
Loans receivable | 106,796 | 64,227 |
Loans 90 days or more past due and still accruing | 0 | 0 |
Financial Asset, 30 to 59 Days Past Due [Member] | ||
Loans past due | 910 | 1,460 |
Financial Asset, 30 to 59 Days Past Due [Member] | Residential Portfolio Segment [Member] | ||
Loans past due | 550 | 786 |
Financial Asset, 30 to 59 Days Past Due [Member] | Commercial Real Estate Portfolio Segment [Member] | Real Estate Loan [Member] | ||
Loans past due | 0 | 0 |
Financial Asset, 30 to 59 Days Past Due [Member] | Commercial Real Estate Portfolio Segment [Member] | Commercial Real Estate Other [Member] | ||
Loans past due | 0 | 0 |
Financial Asset, 30 to 59 Days Past Due [Member] | Consumer Portfolio Segment [Member] | ||
Loans past due | 360 | 527 |
Financial Asset, 30 to 59 Days Past Due [Member] | Commercial Portfolio Segment [Member] | ||
Loans past due | 0 | 147 |
Financial Asset, 60 to 89 Days Past Due [Member] | ||
Loans past due | 272 | 121 |
Financial Asset, 60 to 89 Days Past Due [Member] | Residential Portfolio Segment [Member] | ||
Loans past due | 223 | 77 |
Financial Asset, 60 to 89 Days Past Due [Member] | Commercial Real Estate Portfolio Segment [Member] | Real Estate Loan [Member] | ||
Loans past due | 0 | 0 |
Financial Asset, 60 to 89 Days Past Due [Member] | Commercial Real Estate Portfolio Segment [Member] | Commercial Real Estate Other [Member] | ||
Loans past due | 0 | 0 |
Financial Asset, 60 to 89 Days Past Due [Member] | Consumer Portfolio Segment [Member] | ||
Loans past due | 49 | 31 |
Financial Asset, 60 to 89 Days Past Due [Member] | Commercial Portfolio Segment [Member] | ||
Loans past due | 0 | 13 |
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | ||
Loans past due | 629 | 815 |
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Residential Portfolio Segment [Member] | ||
Loans past due | 144 | 59 |
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Commercial Real Estate Portfolio Segment [Member] | Real Estate Loan [Member] | ||
Loans past due | 0 | 0 |
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Commercial Real Estate Portfolio Segment [Member] | Commercial Real Estate Other [Member] | ||
Loans past due | 185 | 0 |
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Consumer Portfolio Segment [Member] | ||
Loans past due | 300 | 206 |
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Commercial Portfolio Segment [Member] | ||
Loans past due | $ 0 | $ 550 |
Note 9 - Allowance for Loan L_7
Note 9 - Allowance for Loan Losses and Credit Quality Information - Impaired Loans and Related Allowances (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Related allowance | $ 116 | $ 116 | $ 725 | ||
Recorded investment | 2,997 | 2,997 | 3,851 | ||
Unpaid principal balance | 4,298 | 4,298 | 4,422 | ||
Average recorded investment | 3,068 | $ 3,434 | 3,408 | $ 3,513 | |
Interest income recognized | 10 | 36 | 71 | 74 | |
Residential Portfolio Segment [Member] | |||||
Recorded investment, with no related allowance | 588 | 588 | 544 | ||
Unpaid principal balance, with no related allowance | 607 | 607 | 563 | ||
Recorded investment, with related allowance | 120 | 120 | 430 | ||
Unpaid principal balance, with related allowance | 120 | 120 | 430 | ||
Related allowance | 31 | 31 | 62 | ||
Recorded investment | 708 | 708 | 974 | ||
Unpaid principal balance | 727 | 727 | 993 | ||
Average recorded investment, with no related allowance | 606 | 551 | 585 | 499 | |
Interest income recognized, with no related allowance | 6 | 6 | 23 | 17 | |
Average recorded investment, with related allowance | 121 | 579 | 273 | 684 | |
Interest income recognized, with related allowance | 0 | 1 | 0 | 2 | |
Average recorded investment | 727 | 1,130 | 858 | 1,183 | |
Interest income recognized | 6 | 7 | 23 | 19 | |
Commercial Real Estate Portfolio Segment [Member] | |||||
Related allowance | 5 | 5 | 451 | ||
Commercial Real Estate Portfolio Segment [Member] | Real Estate Loan [Member] | |||||
Recorded investment, with no related allowance | 968 | 968 | 0 | ||
Unpaid principal balance, with no related allowance | 1,618 | 1,618 | 0 | ||
Recorded investment, with related allowance | 170 | 170 | 184 | ||
Unpaid principal balance, with related allowance | 170 | 170 | 184 | ||
Related allowance | 5 | 5 | 16 | ||
Recorded investment | 1,138 | 1,138 | 184 | ||
Unpaid principal balance | 1,788 | 1,788 | 184 | ||
Average recorded investment, with no related allowance | 985 | 493 | |||
Interest income recognized, with no related allowance | 0 | 33 | |||
Average recorded investment, with related allowance | 173 | 191 | 177 | 195 | |
Interest income recognized, with related allowance | 0 | 0 | 0 | 0 | |
Average recorded investment | 1,158 | 670 | |||
Interest income recognized | 0 | 0 | 33 | 0 | |
Commercial Real Estate Portfolio Segment [Member] | Commercial Real Estate Other [Member] | |||||
Recorded investment, with no related allowance | 399 | 399 | 0 | ||
Unpaid principal balance, with no related allowance | 479 | 479 | 0 | ||
Recorded investment, with related allowance | 0 | 0 | 982 | ||
Unpaid principal balance, with related allowance | 0 | 0 | 982 | ||
Related allowance | 0 | 0 | 435 | ||
Recorded investment | 399 | 399 | 982 | ||
Unpaid principal balance | 479 | 479 | 982 | ||
Average recorded investment, with no related allowance | 401 | 0 | 340 | 13 | |
Interest income recognized, with no related allowance | 0 | 0 | 2 | 0 | |
Average recorded investment, with related allowance | 0 | 1,061 | 487 | 1,065 | |
Interest income recognized, with related allowance | 0 | 20 | 0 | 22 | |
Average recorded investment | 401 | 1,061 | 827 | 1,078 | |
Interest income recognized | 0 | 20 | 2 | 22 | |
Consumer Portfolio Segment [Member] | |||||
Recorded investment, with no related allowance | 596 | 596 | 781 | ||
Unpaid principal balance, with no related allowance | 596 | 596 | 781 | ||
Recorded investment, with related allowance | 111 | 111 | 195 | ||
Unpaid principal balance, with related allowance | 111 | 111 | 195 | ||
Related allowance | 63 | 63 | 119 | ||
Recorded investment | 707 | 707 | 976 | ||
Unpaid principal balance | 707 | 707 | 976 | ||
Average recorded investment, with no related allowance | 586 | 612 | 640 | 530 | |
Interest income recognized, with no related allowance | 3 | 3 | 9 | 17 | |
Average recorded investment, with related allowance | 142 | 192 | 169 | 241 | |
Interest income recognized, with related allowance | 0 | 3 | 2 | 8 | |
Average recorded investment | 728 | 804 | 809 | 771 | |
Interest income recognized | 3 | 6 | 11 | 25 | |
Commercial Portfolio Segment [Member] | |||||
Recorded investment, with no related allowance | 45 | 45 | 735 | ||
Unpaid principal balance, with no related allowance | 597 | 597 | 1,287 | ||
Recorded investment, with related allowance | 45 | 45 | 735 | ||
Unpaid principal balance, with related allowance | 597 | 597 | 1,287 | ||
Related allowance | 17 | 17 | $ 93 | ||
Average recorded investment, with no related allowance | 4 | 2 | |||
Interest income recognized, with no related allowance | 0 | 0 | |||
Average recorded investment, with related allowance | 50 | 248 | 242 | 286 | |
Interest income recognized, with related allowance | 1 | 3 | 2 | 8 | |
Average recorded investment | 54 | 248 | 244 | 286 | |
Interest income recognized | $ 1 | $ 3 | $ 2 | $ 8 |
Note 9 - Allowance for Loan L_8
Note 9 - Allowance for Loan Losses and Credit Quality Information - Non-accrual Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Non-accrual loans | $ 2,541 | $ 2,081 |
Residential Portfolio Segment [Member] | ||
Non-accrual loans | 352 | 617 |
Commercial Real Estate Portfolio Segment [Member] | Real Estate Loan [Member] | ||
Non-accrual loans | 1,138 | 184 |
Commercial Real Estate Portfolio Segment [Member] | Commercial Real Estate Other [Member] | ||
Non-accrual loans | 399 | 0 |
Consumer Portfolio Segment [Member] | ||
Non-accrual loans | 641 | 659 |
Commercial Portfolio Segment [Member] | ||
Non-accrual loans | $ 11 | $ 621 |
Note 9 - Allowance for Loan L_9
Note 9 - Allowance for Loan Losses and Credit Quality Information - Troubled Debt Restructurings (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Troubled debt restructurings | $ 1,521 | $ 2,465 |
Performing Financial Instruments [Member] | ||
Troubled debt restructurings | 457 | 1,770 |
Nonperforming Financial Instruments [Member] | ||
Troubled debt restructurings | 1,064 | 695 |
Residential Portfolio Segment [Member] | ||
Troubled debt restructurings | 617 | 623 |
Residential Portfolio Segment [Member] | Performing Financial Instruments [Member] | ||
Troubled debt restructurings | 356 | 357 |
Residential Portfolio Segment [Member] | Nonperforming Financial Instruments [Member] | ||
Troubled debt restructurings | 261 | 266 |
Commercial Real Estate Portfolio Segment [Member] | ||
Troubled debt restructurings | 214 | 983 |
Commercial Real Estate Portfolio Segment [Member] | Performing Financial Instruments [Member] | ||
Troubled debt restructurings | 0 | 983 |
Commercial Real Estate Portfolio Segment [Member] | Nonperforming Financial Instruments [Member] | ||
Troubled debt restructurings | 214 | 0 |
Consumer Portfolio Segment [Member] | ||
Troubled debt restructurings | 655 | 745 |
Consumer Portfolio Segment [Member] | Performing Financial Instruments [Member] | ||
Troubled debt restructurings | 66 | 316 |
Consumer Portfolio Segment [Member] | Nonperforming Financial Instruments [Member] | ||
Troubled debt restructurings | 589 | 429 |
Commercial Portfolio Segment [Member] | ||
Troubled debt restructurings | 35 | 114 |
Commercial Portfolio Segment [Member] | Performing Financial Instruments [Member] | ||
Troubled debt restructurings | 35 | 114 |
Commercial Portfolio Segment [Member] | Nonperforming Financial Instruments [Member] | ||
Troubled debt restructurings | $ 0 | $ 0 |
Note 9 - Allowance for Loan _10
Note 9 - Allowance for Loan Losses and Credit Quality Information - Financial Effects of Troubled Debt Restructurings (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | |
Number of Contracts | 0 | 1 | 3 | 7 |
Pre- modification Outstanding Recorded Investment | $ 0 | $ 58 | $ 387 | $ 294 |
Post- modification Outstanding Recorded Investment | $ 0 | $ 58 | $ 394 | $ 299 |
Residential Portfolio Segment [Member] | ||||
Number of Contracts | 0 | 0 | 1 | 3 |
Pre- modification Outstanding Recorded Investment | $ 0 | $ 0 | $ 94 | $ 176 |
Post- modification Outstanding Recorded Investment | $ 0 | $ 0 | $ 101 | $ 181 |
Consumer Portfolio Segment [Member] | ||||
Number of Contracts | 1 | 4 | ||
Pre- modification Outstanding Recorded Investment | $ 58 | $ 118 | ||
Post- modification Outstanding Recorded Investment | $ 58 | $ 118 | ||
Commercial Real Estate Portfolio Segment [Member] | Commercial Real Estate Other [Member] | ||||
Number of Contracts | 0 | 2 | ||
Pre- modification Outstanding Recorded Investment | $ 0 | $ 293 | ||
Post- modification Outstanding Recorded Investment | $ 0 | $ 293 |
Note 9 - Allowance for Loan _11
Note 9 - Allowance for Loan Losses and Credit Quality Information - Deferred Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Jun. 30, 2020 | |
Deferred loans | $ 82,045 | $ 119,079 | |
Commercial Real Estate Portfolio Segment [Member] | |||
Deferred loans | 81,679 | 116,047 | |
Commercial Real Estate Portfolio Segment [Member] | Hotels [Member] | |||
Deferred loans | [1] | 54,660 | 54,660 |
Commercial Real Estate Portfolio Segment [Member] | Retail/Office [Member] | |||
Deferred loans | 7,127 | 20,322 | |
Commercial Real Estate Portfolio Segment [Member] | Theaters [Member] | |||
Deferred loans | 11,269 | 11,269 | |
Commercial Real Estate Portfolio Segment [Member] | Multi Family [Member] | |||
Deferred loans | 0 | 11,195 | |
Commercial Real Estate Portfolio Segment [Member] | Restaurant/Bar [Member] | |||
Deferred loans | 2,876 | 4,477 | |
Commercial Real Estate Portfolio Segment [Member] | Other Industry Sectors [Member] | |||
Deferred loans | 5,747 | 9,449 | |
Commercial Real Estate Portfolio Segment [Member] | Single Family Mortgages [Member] | |||
Deferred loans | 366 | 2,955 | |
Consumer Portfolio Segment [Member] | |||
Deferred loans | 366 | 3,032 | |
Consumer Portfolio Segment [Member] | Residential Real Estate [Member] | |||
Deferred loans | 0 | 4,675 | |
Consumer Portfolio Segment [Member] | Other Consumer [Member] | |||
Deferred loans | $ 0 | $ 77 | |
[1] | Approximately $38.5 million of the hotel properties are located in Minnesota with approximately $21.3 million located in Rochester, Minnesota, $13.8 million in the Minneapolis/St. Paul, Minnesota metro area, and $3.4 million in St. Cloud, Minnesota |
Note 10 - Intangible Assets (De
Note 10 - Intangible Assets (Details Textual) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Amortization of Intangible Assets, Total | $ 1.1 | $ 0.6 |
Note 10 - Intangible Assets - M
Note 10 - Intangible Assets - Mortgage Servicing Activity (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Balance | $ 2,172 | $ 1,855 | $ 1,855 |
Originations | 1,710 | 674 | 1,097 |
Amortization | (1,002) | (535) | (780) |
Balance | 2,880 | 1,994 | 2,172 |
Fair value of mortgage servicing rights | $ 2,956 | $ 2,922 | $ 3,390 |
Note 10 - Intangible Assets - R
Note 10 - Intangible Assets - Risk Characteristics of Loans Being Serviced (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Original Term Thirty Year Fixed Rate [Member] | |
Loan Principal Balance | $ 380,018 |
Weighted Average Interest Rate | 3.74% |
Weighted Average Remaining Term (Month) | 25 years 330 days |
Number of Loans | 2,593 |
Original Term Fifteen Year Fixed Rate [Member] | |
Loan Principal Balance | $ 117,870 |
Weighted Average Interest Rate | 3.03% |
Weighted Average Remaining Term (Month) | 11 years 240 days |
Number of Loans | 1,064 |
Note 10 - Intangible Assets - G
Note 10 - Intangible Assets - Gross Carrying Amount and Accumulated Amortization of Intangible Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Finite-lived intangible assets, accumulated amortization | $ (3,630) | $ (3,214) |
Finite-lived intangible assets, unamortized intangible assets | 2,962 | |
Goodwill, gross carrying amount | 802 | 802 |
Goodwill, accumulated impairment | 0 | 0 |
Goodwill | 802 | 802 |
Intangible assets (including goodwill), gross carrying amount | 7,394 | 6,344 |
Intangible assets, unamortized intangible assets | 3,764 | 3,130 |
Mortgage Servicing Rights [Member] | ||
Finite-lived intangible assets, gross carrying amount | 6,018 | 4,968 |
Finite-lived intangible assets, accumulated amortization | (3,138) | (2,796) |
Finite-lived intangible assets, unamortized intangible assets | 2,880 | 2,172 |
Core Deposits [Member] | ||
Finite-lived intangible assets, gross carrying amount | 574 | 574 |
Finite-lived intangible assets, accumulated amortization | (492) | (418) |
Finite-lived intangible assets, unamortized intangible assets | $ 82 | $ 156 |
Note 10 - Intangible Assets - E
Note 10 - Intangible Assets - Estimated Future Amortization Expense (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
2020 | $ 181 | |
2021 | 643 | |
2022 | 560 | |
2023 | 495 | |
2024 | 437 | |
Thereafter | 646 | |
Total | 2,962 | |
Mortgage Servicing Rights [Member] | ||
2020 | 156 | |
2021 | 596 | |
2022 | 550 | |
2023 | 495 | |
2024 | 437 | |
Thereafter | 646 | |
Total | 2,880 | $ 2,172 |
Core Deposits [Member] | ||
2020 | 25 | |
2021 | 47 | |
2022 | 10 | |
2023 | 0 | |
2024 | 0 | |
Thereafter | 0 | |
Total | $ 82 | $ 156 |
Note 11 - Leases (Details Textu
Note 11 - Leases (Details Textual) $ in Thousands | Sep. 30, 2020USD ($) |
Minimum [Member] | |
Lessee, Operating Lease, Remaining Lease Term (Month) | 1 year 300 days |
Lessee, Operating Lease, Renewal Term (Year) | 3 years |
Maximum [Member] | |
Lessee, Operating Lease, Remaining Lease Term (Month) | 4 years 180 days |
Lessee, Operating Lease, Renewal Term (Year) | 10 years |
Other Assets [Member] | |
Operating Lease, Right-of-Use Asset | $ 3,400 |
Other Liabilities [Member] | |
Operating Lease, Liability, Total | $ 3,375 |
Note 11 - Leases - Operating Le
Note 11 - Leases - Operating Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2020 | Sep. 30, 2020 | |
Operating lease cost | $ 224 | $ 669 |
Note 11 - Leases - Summary of O
Note 11 - Leases - Summary of Other Information Related to Operating Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||||
Operating cash flows from operating leases | $ 224 | $ 221 | $ 669 | $ 667 |
Weighted-average remaining lease term – operating leases (Year) | 3 years 328 days | 5 years | 3 years 328 days | 5 years |
Weighted-average discount rate – operating leases | 2.19% | 2.19% | 2.19% | 2.19% |
Note 11 - Leases - Maturity of
Note 11 - Leases - Maturity of Remaining Lease Liabilities (Details) $ in Thousands | Sep. 30, 2020USD ($) |
2020 | $ 222 |
2021 | 902 |
2022 | 924 |
2023 | 802 |
2024 | 667 |
2025 and thereafter | 11 |
Total lease payments | 3,528 |
Less: Interest | (153) |
Other Liabilities [Member] | |
Operating Lease, Liability, Total | $ 3,375 |
Note 12 - Earnings Per Common_3
Note 12 - Earnings Per Common Share - Basic and Diluted Earnings (Loss) Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Weighted average number of common shares outstanding used in basic earnings per share calculation (in shares) | 4,628 | 4,614 | 4,624 | 4,606 |
Restricted stock awards and options (in shares) | 23 | 28 | 26 | 29 |
Weighted average number of shares outstanding adjusted for effect of dilutive securities (in shares) | 4,651 | 4,642 | 4,650 | 4,635 |
Net income | $ 3,101 | $ 2,076 | $ 7,177 | $ 6,557 |
Basic earnings per share (in dollars per share) | $ 0.67 | $ 0.45 | $ 1.55 | $ 1.42 |
Diluted earnings per share (in dollars per share) | $ 0.67 | $ 0.45 | $ 1.54 | $ 1.41 |
Note 13 - Regulatory Capital _3
Note 13 - Regulatory Capital and Oversight (Details Textual) - USD ($) $ in Millions | Jan. 01, 2019 | Sep. 30, 2020 |
Banks Tangible Assets | $ 886.7 | |
Adjusted Assets | 885.8 | |
Banking Regulation, Risk-Weighted Assets, Actual | $ 655.1 | |
Capital Conservation Buffer | 2.50% |
Note 13 - Regulatory Capital _4
Note 13 - Regulatory Capital and Oversight - Capital Amounts and Ratios (Details) $ in Thousands | Sep. 30, 2020USD ($) |
Common equity tier 1 capital, actual amount | $ 86,209 |
Common equity tier 1 capital, actual percent of asset | 0.1316 |
Common equity tier 1 capital, amount required to be adequately capitalized | $ 29,481 |
Common equity tier 1 capital, percent of assets required to be adequately capitalized | 0.045 |
Common equity tier 1 capital, excess capital amount | $ 56,728 |
Common equity tier 1 capital, excess capital percent of assets | 0.0866 |
Common equity tier 1 capital, amount to be well capitalized under prompt corrective action provisions | $ 42,583 |
Common equity tier 1 capital, percent of assets to be well capitalized under prompt corrective action provisions | 0.065 |
Tier 1 capital leverage, actual amount | $ 86,209 |
Tier 1 capital leverage, actual percent of asset | 0.0973 |
Tier 1 capital leverage, amount required to be adequately capitalized | $ 35,432 |
Tier 1 capital leverage, percent of assets required to be adequately capitalized | 0.04 |
Tier 1 capital leverage, excess capital amount | $ 50,777 |
Tier 1 capital leverage, excess capital percent of assets | 0.0573 |
Tier 1 capital leverage, amount to be well capitalized under prompt corrective action provisions | $ 44,291 |
Tier 1 capital leverage, percent of assets to be well capitalized under prompt corrective action provisions | 0.05 |
Tier 1 risk-based capital, actual amount | $ 86,209 |
Tier 1 risk-based capital, actual percent of asset | 0.1316 |
Tier 1 risk-based capital, amount required to be adequately capitalized | $ 39,307 |
Tier 1 risk-based capital, percent of assets required to be adequately capitalized | 0.06 |
Tier 1 risk-based capital, excess capital amount | $ 46,902 |
Tier 1 risk-based capital, excess capital percent of assets | 0.0716 |
Tier 1 risk-based capital, amount to be well capitalized under prompt corrective action provisions | $ 52,410 |
Tier 1 risk-based capital, percent of assets to be well capitalized under prompt corrective action provisions | 0.08 |
Total risk-based capital, actual amount | $ 94,414 |
Total risk-based capital, actual percent of asset | 0.1441 |
Total risk-based capital, amount required to be adequately capitalized | $ 52,410 |
Total risk-based capital, percent of assets required to be adequately capitalized | 0.08 |
Total risk-based capital, excess capital amount | $ 42,004 |
Total risk-based capital, excess capital percent of assets | 0.0641 |
Total risk-based capital, amount to be well capitalized under prompt corrective action provisions | $ 65,512 |
Total risk-based capital, percent of assets to be well capitalized under prompt corrective action provisions | 0.1 |
Note 14 - Stockholders' Equity
Note 14 - Stockholders' Equity (Details Textual) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Sep. 30, 2020 | Jun. 30, 2020 | |
Treasury Stock, Shares, Acquired (in shares) | 0 | 0 |
Dividends, Common Stock, Cash | $ 0 | |
New Share Repurchase Program [Member] | ||
Stock Repurchase Program, Authorized Amount | $ 5,600 |
Note 15 - Commitments and Con_2
Note 15 - Commitments and Contingencies (Details Textual) $ in Thousands | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Letters of Credit Issued and Available Amount | $ 7,000 |
Line of Credit Facility, Expiration Period (Month) | 1 year 60 days |
Loss Contingency, Damages Sought, Value | $ 1,900 |
Minimum [Member] | |
Loss Contingency, Estimate of Possible Loss | 0 |
Maximum [Member] | |
Loss Contingency, Estimate of Possible Loss | $ 900 |
Note 16 - Business Segments - P
Note 16 - Business Segments - Profit and Assets for the Reportable Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Interest income - external customers | $ 7,949 | $ 7,998 | $ 23,676 | $ 24,029 | |
Non-interest income - external customers | 4,396 | 2,227 | 10,461 | 5,939 | |
Intersegment interest income | 0 | 0 | |||
Intersegment non-interest income | 0 | 0 | 0 | 0 | |
Interest expense | 656 | 906 | 2,293 | 2,425 | |
Provision for loan losses | 770 | (420) | 1,548 | (1,452) | |
Non-interest expense | 6,596 | 6,747 | 20,250 | 19,761 | |
Income tax expense | 1,222 | 916 | 2,869 | 2,677 | |
Net income | 3,101 | 2,076 | 7,177 | 6,557 | |
Total assets | 898,452 | 763,228 | 898,452 | 763,228 | $ 777,639 |
Consolidation, Eliminations [Member] | |||||
Interest income - external customers | 0 | (2) | 0 | (2) | |
Non-interest income - external customers | 0 | 0 | 0 | 0 | |
Intersegment interest income | (9) | (32) | |||
Intersegment non-interest income | (3,309) | (2,294) | (7,784) | (7,191) | |
Interest expense | (9) | (2) | (32) | (2) | |
Provision for loan losses | 0 | 0 | 0 | 0 | |
Non-interest expense | (58) | (59) | (175) | (176) | |
Income tax expense | 0 | 0 | 0 | 0 | |
Net income | (3,251) | (2,235) | (7,609) | (7,015) | |
Total assets | (100,550) | (90,605) | (100,550) | (90,605) | |
Home Federal Savings Bank [Member] | Operating Segments [Member] | |||||
Interest income - external customers | 7,949 | 7,998 | 23,676 | 24,029 | |
Non-interest income - external customers | 4,396 | 2,227 | 10,461 | 5,939 | |
Intersegment interest income | 0 | 0 | |||
Intersegment non-interest income | 58 | 59 | 175 | 176 | |
Interest expense | 665 | 908 | 2,325 | 2,427 | |
Provision for loan losses | 770 | (420) | 1,548 | (1,452) | |
Non-interest expense | 6,460 | 6,604 | 19,863 | 19,363 | |
Income tax expense | 1,257 | 957 | 2,967 | 2,791 | |
Net income | 3,251 | 2,235 | 7,609 | 7,015 | |
Total assets | 897,694 | 762,445 | 897,694 | 762,445 | |
Other Segments [Member] | Operating Segments [Member] | |||||
Interest income - external customers | 0 | 2 | 0 | 2 | |
Non-interest income - external customers | 0 | 0 | 0 | 0 | |
Intersegment interest income | 9 | 32 | |||
Intersegment non-interest income | 3,251 | 2,235 | 7,609 | 7,015 | |
Interest expense | 0 | 0 | 0 | 0 | |
Provision for loan losses | 0 | 0 | 0 | 0 | |
Non-interest expense | 194 | 202 | 562 | 574 | |
Income tax expense | (35) | (41) | (98) | (114) | |
Net income | 3,101 | 2,076 | 7,177 | 6,557 | |
Total assets | $ 101,308 | $ 91,388 | $ 101,308 | $ 91,388 |