Note 5 - Loans Receivable, Net

12 Months Ended

Dec. 31, 2017

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, 2017

and

2016,

is as follows:

(Dollars in thousands)	201 7			201 6
Residential real estate loans:
Single family conventional	$	106,881			103,125
Single family FHA		88			92
Single family VA		36			38
		107,005			103,255
Commercial real estate:
Lodging		55,675			43,285
Retail/office		64,780			53,935
Nursing home/health care		7,352			8,185
Land developments		21,058			24,240
Golf courses		1,112			1,560
Restaurant/bar/café		5,929			5,851
Warehouse		25,891			26,630
Construction:
Single family		23,090			21,944
Multi-family		11,649			2,610
Commercial real estate		11,705			6,794
Manufacturing		22,136			15,743
Churches/community service		12,734			10,199
Multi-family		28,649			36,777
Other		42,357			41,327
		334,117			299,080
Consumer:
Autos		2,894			3,036
Home equity line		36,869			40,476
Home equity		15,823			16,302
Other – secured		1,911			2,048
Recreational vehicles		13,181			7,553
Land/lot s		1,587			2,362
Other – unsecured		1,502			1,506
		73,767			73,283
Commercial business		79,909			85,176
Total loans		594,798			560,794
Less:
Unamortized discounts		19			20
Net deferred loan costs		(463	)		(300	)
Allowance for loan losses		9,311			9,903
Total loans receivable, net	$	585,931			551,171
Commitments to originate or purchase loans	$	24,692			47,220
Commitments to deliver loans to secondary market	$	5,629			9,595
Weighted average contractual rate of loans in portfolio		4.56	%		4.45	%

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

$18.1

million and

$29.6

million as of

December 31, 2017

and

2016,

respectively. The interest rates on these loan commitments ranged from

3.375%

to

5.210%

at

December 31, 2017

and from

2.75%

to

5.125%

at

December 31, 2016.

The aggregate amount

of loans to executive officers and directors of the Company was

$0.1

million,

$0.2

million and

$2.7

million at

December 31, 2017,

2016

and

2015,

respectively. There was

no

activity during

2017

and

2016

on loans to executive officers and directors other than the

$0.1

million and

$2.5

million in loans that were reclassified during the respective periods 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 paid off 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,

2017,

2016

and

2015,

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

$471.4

million,

$425.5

million and

$391.9

million, respectively.

The Company originates residential, commercial real estate and other

loans primarily in Minnesota, Wisconsin, and Iowa. At

December 31, 2017

and

2016,

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

	201 7					201 6
(Dollars in thousands)	Amount		Percent of Total			Amount		Percent of Total
Iowa	$	3,605		3.4	%	$	4,470		4.3	%
Minnesota		90,345		84.4			87,135		84.4
Missouri		1,841		1.7			1,206		1.2
Wisconsin		9,894		9.3			8,779		8.5
Other states		1,320		1.2			1,665		1.6
Total	$	107,005		100.0	%	$	103,255		100.0	%

Amounts under

one million

dollars in both years are included in “Other states”.

At

December 31,

20

17

and

2016,

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

	2017					2016
(Dollars in thousands)	Amount		Percent of Total			Amount		Percent of Total
Alabama	$	1,742		0.5	%	$	1,902		0.7	%
Florida		2,790		0.9			3,781		1.3
Idaho		3,371		1.0			3,529		1.2
Indiana		3,374		1.0			2,189		0.7
Iowa		4,755		1.4			1,973		0.7
Minnesota		232,991		69.8			213,983		71.5
North Carolina		5,996		1.8			2,926		1.0
North Dakota		1,093		0.3			8,447		2.8
Ohio		1,680		0.5			0		0.0
Pennsylvania		2,056		0.6			0		0.0
Tennessee		0		0.0			1,036		0.3
Wisconsin		72,510		21.7			57,512		19.2
Other states		1,759		0.5			1,802		0.6
Total	$	334,117		100.0	%	$	299,080		100.0	%

Amounts under

one million

dollars in both years are included in “Other states”.