Loans and Allowance for Loan Losses (Tables)

9 Months Ended

Sep. 30, 2017

Loans and Allowance for Loan Losses

Summary of loans

	September 30,		December 31,
	2017		2016
	(In thousands)
Mortgage warehouse lines of credit	$	233,466	$	275,039
Residential real estate		307,643		235,759
Multi-family and healthcare financing		393,581		261,031
Commercial and commercial real estate		210,421		113,812
Agricultural production and real estate		51,925		46,763
Consumer and margin loans		12,116		9,392
		1,209,152		941,796
Less
Allowance for loan losses		7,457		6,250
Loans Receivable	$	1,201,695	$	935,546

Summary of activity in the allowance for loan losses

The following table presents, by portfolio segment, the activity in the allowance for loan losses for the three months ended September 30, 2017 and 2016 and the recorded investment in loans and impairment method as of September 30, 2017:

	At or For the Three Months Ended September 30, 2017
	MTG WHLOC		RES RE		MF RE		CML & CRE		AG & AGRE		CON & MAR		TOTAL
	(In thousands)
Allowance for loan losses
Balance, beginning of period	$	281	$	1,938		2,426	$	1,845	$	271	$	104	$	6,865
Provision for loan losses		(8)		(414)		276		688		36		14		592
Loans charged to the allowance		—		—		—		—		—		—		—
Recoveries of loans previously charged off		—		—		—		—		—		—		—
Balance, end of period	$	273	$	1,524	$	2,702	$	2,533	$	307	$	118	$	7,457
Ending balance: individually evaluated for impairment	$	—	$	—	$	—	$	—	$	16	$	—	$	16
Ending balance: collectively evaluated for impairment	$	273	$	1,524	$	2,702	$	2,533	$	291	$	118	$	7,441
Loans
Ending balance	$	233,466	$	307,643		393,581	$	210,421	$	51,925	$	12,116	$	1,209,152
Ending balance individually evaluated for impairment	$	—	$	207	$	—	$	2,982	$	282	$	—	$	3,471
Ending balance collectively evaluated for impairment	$	233,466	$	307,436	$	393,581	$	207,439	$	51,643	$	12,116	$	1,205,681

	For the Three Months Ended September 30, 2016
	MTG WHLOC		RES RE		MF RE		CML & CRE		AG & AGRE		CON & MAR		TOTAL
	(In thousands)
Allowance for loan losses
Balance, beginning of period	$	770	$	1,839		1,737	$	1,243	$	223	$	90	$	5,902
Provision for loan losses		(256)		18		159		284		21		14		240
Transfer out		—		(132)		—		—		—		—		(132)
Loans charged to the allowance		—		—		—		—		—		—		—
Recoveries of loans previously charged off		—		—		—		—		—		—		—
Balance, end of period	$	514	$	1,725	$	1,896	$	1,527	$	244	$	104	$	6,010

The following table presents, by portfolio segment, the activity in the allowance for loan losses for the nine months ended September 30, 2017 and 2016:

	For the Nine Months Ended September 30, 2017
	MTG WHLOC		RES RE		MF RE		CML & CRE		AG & AGRE		CON & MAR		TOTAL
	(In thousands)
Allowance for loan losses
Balance, beginning of period	$	373	$	2,170		1,962	$	1,374	$	269	$	102	$	6,250
Provision for loan losses		(100)		(646)		740		1,058		38		(18)		1,072
Loans charged to the allowance		—		—		—		—		—		—		—
Recoveries of loans previously charged off		—		—		—		101		—		34		135
Balance, end of period	$	273	$	1,524	$	2,702	$	2,533	$	307	$	118	$	7,457

	For the Nine Months Ended September 30, 2016
	MTG WHLOC		RES RE		MF RE		CML & CRE		AG & AGRE		CON & MAR		TOTAL
	(In thousands)
Allowance for loan losses
Balance, beginning of period	$	704	$	2,212		1,308	$	908	$	222	$	68	$	5,422
Provision for loan losses		(190)		(355)		588		619		22		36		720
Transfer out		—		(132)		—		—		—		—		(132)
Loans charged to the allowance		—		—		—		—		—		—		—
Recoveries of loans previously charged off		—		—		—		—		—		—		—
Balance, end of period	$	514	$	1,725	$	1,896	$	1,527	$	244	$	104	$	6,010

The following table presents the allowance for loan losses and the recorded investment in loans and impairment method as of December 31, 2016:

	December 31, 2016
	MTG WHLOC		RES RE		MF RE		CML & CRE		AG & AGRE		CON & MAR		TOTAL
	(In thousands)
Allowance for loan losses
Balance, December 31, 2016	$	373	$	2,170	$	1,962	$	1,374	$	269	$	102	$	6,250
Ending balance: individually evaluated for impairment	$	—	$	30	$	—	$	—	$	11	$	—	$	41
Ending balance: collectively evaluated for impairment	$	373	$	2,140	$	1,962	$	1,374	$	258	$	102	$	6,209
Loans
Ending balance	$	275,039	$	235,759		261,031	$	113,812	$	46,763	$	9,392	$	941,796
Ending balance individually evaluated for impairment	$	—	$	343	$	—	$	5,022	$	203	$	—	$	5,568
Ending balance collectively evaluated for impairment	$	275,039	$	235,416	$	261,031	$	108,790	$	46,560	$	9,392	$	936,228

Schedule of credit risk profile of loan portfolio

	September 30, 2017
	MTG WHLOC		RES RE		MF RE		CML & CRE		AG & AGRE		CON & MAR		TOTAL
	(In thousands)
Special Mention (Watch)	$	—	$	209	$	1,800	$	10,609	$	351	$	1,882	$	14,851
Substandard		—		246		—		4,441		282		—		4,969
Doubtful		—		—		—		—		—		—		—
Acceptable and Above		233,466		307,188		391,781		195,371		51,292		10,234		1,189,332
Total	$	233,466	$	307,643	$	393,581	$	210,421	$	51,925	$	12,116	$	1,209,152

	December 31, 2016
	MTG WHLOC		RES RE		MF RE		CML & CRE		AG & AGRE		CON & MAR		TOTAL
	(In thousands)
Special Mention (Watch)	$	—	$	214	$	—	$	7,150	$	—	$	2,158	$	9,522
Substandard		—		343		—		4,986		203		—		5,532
Doubtful		—		—		—		—		—		—		—
Acceptable and Above		275,039		235,202		261,031		101,676		46,560		7,234		926,742
Total	$	275,039	$	235,759	$	261,031	$	113,812	$	46,763	$	9,392	$	941,796

Schedule of aging analysis of the recorded investment in loans

	September 30, 2017
	30-59 Days		60-89 Days		Greater Than		Total				Total
	Past Due		Past Due		90 Days		Past Due		Current		Loans
	(In thousands)
MTG WHLOC	$	—	$	—	$	—	$	—	$	233,466	$	233,466
RES RE		56		40		207		303		307,340		307,643
MF RE		6,130		1,290		—		7,420		386,161		393,581
CML & CRE		18		122		2,386		2,526		207,895		210,421
AG & AGRE		25		74		282		381		51,544		51,925
CON & MAR		—		—		—		—		12,116		12,116
	$	6,229	$	1,526	$	2,875	$	10,630	$	1,198,522	$	1,209,152

	December 31, 2016
	30-59 Days		60-89 Days		Greater Than		Total				Total
	Past Due		Past Due		90 Days		Past Due		Current		Loans
	(In thousands)
MTG WHLOC	$	—	$	—	$	—	$	—	$	275,039	$	275,039
RES RE		40		—		881		921		234,838		235,759
MF RE		—		—		—		—		261,031		261,031
CML & CRE		43		2,018		899		2,960		110,852		113,812
AG & AGRE		101		86		107		294		46,469		46,763
CON & MAR		—		—		—		—		9,392		9,392
	$	184	$	2,104	$	1,887	$	4,175	$	937,621	$	941,796

Schedule of components of impaired loans and specific valuation allowance

	September 30, 2017
	MTG WHLOC		RES RE		MF RE		CML & CRE		AG & AGRE		CON & MAR		TOTAL
	(In thousands)
Impaired loans without a specific allowance:
Recorded investment	$	—	$	207	$	—	$	2,982	$	—	$	—	$	3,189
Unpaid principal balance		—		207		—		2,982		—		—		3,189
Impaired loans with a specific allowance:
Recorded investment		—		—		—		—		282		—		282
Unpaid principal balance		—		—		—		—		282		—		282
Specific allowance		—		—		—		—		16		—		16
Total impaired loans:
Recorded investment		—		207		—		2,982		282		—		3,471
Unpaid principal balance		—		207		—		2,982		282		—		3,471
Specific allowance		—		—		—		—		16		—		16

	December 31, 2016
	MTG WHLOC		RES RE		MF RE		CML & CRE		AG & AGRE		CON & MAR		TOTAL
	(In thousands)
Impaired loans without a specific allowance:
Recorded investment	$	—	$	280	$	—	$	5,022	$	—	$	—	$	5,302
Unpaid principal balance		—		280		—		5,022		—		—		5,302
Impaired loans with a specific allowance:
Recorded investment		—		63		—		—		203		—		266
Unpaid principal balance		—		63		—		—		203		—		266
Specific allowance		—		30		—		—		11		—		41
Total impaired loans:
Recorded investment		—		343		—		5,022		203		—		5,568
Unpaid principal balance		—		343		—		5,022		203		—		5,568
Specific allowance		—		30		—		—		11		—		41

Schedule of average recorded investment and interest income recognized in impaired loans

	MTG WHLOC		RES RE		MF RE		CML & CRE		AG & AGRE		CON & MAR		TOTAL
	(In thousands)
Three months ended September 30, 2017:
Average recorded investment in impaired loans	$	—	$	231	$	—	$	3,133	$	282	$	—	$	3,646
Interest income recognized		—		—		—		11		—		—		11
Three months ended September 30, 2016:
Average recorded investment in impaired loans	$	—	$	134	$	—	$	3,014	$	—	$	—	$	3,148
Interest income recognized		—		—		—		10		—		—		10

	MTG WHLOC		RES RE		MF RE		CML & CRE		AG & AGRE		CON & MAR		TOTAL
	(In thousands)
Nine months ended September 30, 2017:
Average recorded investment in impaired loans	$	—	$	274	$	—	$	3,275	$	282	$	—	$	3,831
Interest income recognized		—		—		—		21		—		—		21
Nine months ended September 30, 2016:
Average recorded investment in impaired loans	$	—	$	96	$	—	$	1,384	$	—	$	—	$	1,480
Interest income recognized		—		—		—		10		—		—		10

Schedule of nonaccrual loans and loans past due 90 days or more and still accruing

	September 30,				December 31,
	2017				2016
			Total Loans >				Total Loans >
			90 Days &				90 Days &
	Nonaccrual		Accruing		Nonaccrual		Accruing
	(In thousands)
MTG WHLOC	$	—	$	—	$	—	$	—
RES RE		207		—		303		578
MF RE		—		—		—		—
CML & CRE		417		1,969		899		—
AG & AGRE		282		—		—		107
CON & MAR		—		—		—		—
	$	906	$	1,969	$	1,202	$	685