Note 5 - Loans Receivable, Net

12 Months Ended

Dec. 31, 2016

Notes to Financial Statements

Loans, Notes, Trade and Other Receivables Disclosure [Text Block]

NOTE

5

Loans Receivable, Net

A summary of

loans receivable at

December

31,

2016

and

2015,

is as follows:

(Dollars in thousands)	201 6			201 5
Residential real estate loans:
Single family conventional	$	103,125			90,587
Single family FHA		92			206
Single family VA		38			152
		103,255			90,945
Commercial real estate:
Lodging		43,285			27,428
Retail/office		53,935			45,097
Nursing home/health care		8,185			9,183
Land developments		24,240			21,272
Golf courses		1,560			4,163
Restaurant/bar/café		5,851			5,854
Alternative fuel plants		0			2,205
Warehouse		26,630			18,337
Construction:
Single family builder		21,944			15,152
Multi-family		2,610			18,865
Commercial real estate		6,794			4,086
Manufacturing		15,743			11,585
Churches/community service		10,199			8,195
Multi-family		36,777			12,324
Other		41,327			43,607
		299,080			247,353
Consumer:
Autos		3,036			2,885
Home equity line		40,476			38,980
Home equity		16,302			14,782
Other – secured		2,048			2,031
Recreational vehicles		7,553			2,650
Land/lot s		2,362			1,144
Other – unsecured		1,506			1,943
		73,283			64,415
Commercial business		85,176			70,106
Total loans		560,794			472,819
Less:
Unamortized discounts		20			16
Net deferred loan costs		(300	)		(91	)
Allowance for loan losses		9,903			9,709
Total loans receivable, net	$	551,171			463,185
Commitments to originate or purchase loans	$	47,220			27,184
Commitments to deliver loans to secondary market	$	9,595			8,071
Weighted average contractual rate of loans in portfolio		4.45	%		4.54	%

Included in total commitments to originate or purchase loans are fixed rate loans aggregating

$29.6

million and

$22.3

million as of

December

31,

2016

and

2015,

respectively. The interest rates on these loan commitments ranged from

2.75%

to

5.125%

at

December

31,

2016

and from

3.00%

to

5.49%

at

December

31,

2015.

The aggregate amount

of loans to executive officers and directors of the Company was

$0.2

million,

$2.7

million and

$2.8

million at

December

31,

2016,

2015

and

2014,

respectively. During

2016,

there was no activity on loans to executive officers and directors other than the

$2.5

million in loans that were reclassified during the period due to a change in borrower classification. During

2015,

repayments on loans to executive officers and directors were

$0.1

million, new loans to executive officers and directors totaled

$0.2

million, and loans closed or paid off were

$0.2

million. During

2014,

repayments on loans to executive officers and directors were

$0.1

million, new loans to executive officers and directors totaled

$0.2

million, sales of executive officer and director loans were

$0.2

million, and loans reclassified were

$0.2

million. All loans were made in the ordinary course of business on normal credit terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with unrelated parties.

At

December

31,

2016,

2015

and

2014,

the Company was servicing loans for others with aggregate unpaid principal balances of approximately

$425.5

million,

$391.9

million and

$379.7

million, respectively.

The Company originates residential, commercial real estate and other loans primarily in Minnesota,

Wisconsin, and Iowa. At

December

31,

2016

and

2015,

the Company had in its portfolio single-family residential loans located in the following states:

	201 6					201 5
(Dollars in thousands)	Amount		Percent of Total			Amount		Percent of Total
Iowa	$	4,470		4.3	%	$	5,387		5.9	%
Minnesota		87,135		84.4			75,417		82.9
Missouri		1,206		1.2			918		1.0
Wisconsin		8,779		8.5			7,956		8.8
Other states		1,665		1.6			1,267		1.4
Total	$	103,255		100.0	%	$	90,945		100.0	%
Amounts under one million dollars in both years are included in “Other states”.

At

December

31,

201

6

and

2015,

the Company had in its portfolio commercial real estate loans located in the following states:

	201 6					201 5
(Dollars in thousands)	Amount		Percent of Total			Amount		Percent of Total
Alabama	$	1,902		0.7	%	$	2,056		0.8	%
Florida		3,781		1.3			3,738		1.5
Idaho		3,529		1.2			3,678		1.5
Indiana		2,189		0.7			4,608		1.9
Iowa		1,973		0.7			1,106		0.4
Minnesota		213,983		71.5			184,670		74.7
North Carolina		2,926		1.0			4,203		1.7
North Dakota		8,447		2.8			7,979		3.2
Tennessee		1,036		0.3			260		0.1
Wisconsin		57,512		19.2			31,918		12.9
Other states		1,802		0.6			3,137		1.3
Total	$	299,080		100.0	%	$	247,353		100.0	%
Amounts under one million dollars in both years are included in “Other states”.