Note 5 - Loans Receivable, Net

12 Months Ended

Dec. 31, 2018

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, 2018

and

2017,

is as follows:

(Dollars in thousands)	201 8			2017
Residential real estate loans:
Single family conventional	$	110,580			106,881
Single family Federal Housing Administration (FHA)		84			88
Single family Veterans Administration (VA)		34			36
		110,698			107,005
Commercial real estate:
Lodging		45,259			55,675
Retail/office		69,539			64,780
Nursing home/health care		3,712			7,352
Land developments		18,865			21,058
Golf courses		397			1,112
Restaurant/bar/café		8,196			5,929
Warehouse		34,634			25,891
Construction:
Single family		20,442			23,090
Multi-family		4,931			11,649
Commercial real estate		3,571			11,705
Manufacturing		22,029			22,136
Churches/community service		11,103			12,734
Multi-family		50,150			28,649
Other		43,302			42,357
		336,130			334,117
Consumer:
Autos		2,483			2,894
Home equity line		32,273			36,869
Home equity		16,733			15,823
Recreational vehicles		16,226			13,181
Land/lots		2,145			1,587
Other - secured		1,423			1,911
Other – unsecured		1,249			1,502
		72,532			73,767
Commercial business		75,496			79,909
Total loans		594,856			594,798
Less:
Unamortized discounts		17			19
Net deferred loan costs		(535	)		(463	)
Allowance for loan losses		8,686			9,311
Total loans receivable, net	$	586,688			585,931
Commitments to originate or purchase loans	$	13,183			24,692
Commitments to deliver loans to secondary market	$	7,289			5,629
Weighted average contractual rate of loans in portfolio		4.83	%		4.56	%

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

$11.0

million and

$18.1

million as of

December 31, 2018

and

2017,

respectively. The interest rates on these loan commitments ranged from

4.125%

to

6.375%

at

December 31, 2018

and from

3.375%

to

5.210%

at

December 31, 2017.

The aggregate amount of loans to executive officers and directors of the Company was

$0.1

million,

$0.1

million and

$0.2

million at

December 31, 2018,

2017

and

2016,

respectively. There was

no

activity during

2018

on loans to executive officers and directors. There was

no

activity during

2017

and

2016

other than the

$0.1

million and

$2.5

million in loans reclassified during the respective periods due to a change in borrower classification. 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, 2018,

2017

and

2016,

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

$480.6

million,

$471.4

million and

$425.5

million, respectively.

The Company originates residential, commercial real estate and other loans primarily in Minnesota, Wisconsin and Iowa. At

December 31, 2018

and

2017,

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

	201 8					2017
(Dollars in thousands)	Amount		Percent of Total			Amount		Percent of Total
Iowa	$	2,778		2.5	%	$	3,605		3.4	%
Minnesota		98,505		89.0			90,345		84.4
Missouri		0		0.0			1,841		1.7
Wisconsin		8,105		7.3			9,894		9.3
Other states (1)		1,310		1.2			1,320		1.2
Total	$	110,698		100.0	%	$	107,005		100.0	%

(

1

)

Amounts under

one million

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

At

December 31, 2018

and

2017,

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

	201 8					2017
(Dollars in thousands)	Amount		Percent of Total			Amount		Percent of Total
Alabama	$	0		0.0	%	$	1,742		0.5	%
Florida		4,795		1.4			2,790		0.9
Idaho		3,171		0.9			3,371		1.0
Indiana		3,031		0.9			3,374		1.0
Iowa		7,563		2.3			4,755		1.4
Minnesota		238,397		70.9			232,991		69.8
North Carolina		5,442		1.6			5,996		1.8
North Dakota		1,043		0.3			1,093		0.3
Ohio		1,566		0.5			1,680		0.5
Pennsylvania		1,914		0.6			2,056		0.6
Wisconsin		67,196		20.0			72,510		21.7
Other states (1)		2,012		0.6			1,759		0.5
Total	$	336,130		100.0	%	$	334,117		100.0	%

(

1

)

Amounts under

one million

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