Note 5 - Loans Receivable, Net

12 Months Ended

Dec. 31, 2019

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, 2019

and

2018,

is as follows:

(Dollars in thousands)	2019			2018
Residential real estate loans:
Single family conventional	$	119,805			110,580
Single family government guaranteed		259			118
		120,064			110,698
Commercial real estate:
Lodging		58,643			45,259
Retail/office		71,730			69,539
Nursing home/health care		7,767			3,712
Land developments		13,167			18,865
Golf courses		1,597			397
Restaurant/bar/café		6,752			8,196
Warehouse		32,064			34,634
Construction:
Single family		23,256			20,442
Multi-family		1,858			4,931
Commercial real estate		6,008			3,571
Manufacturing		20,027			22,029
Churches/community service		10,156			11,103
Multi-family		48,663			50,150
Other		48,507			43,302
		350,195			336,130
Consumer:
Autos		2,608			2,483
Home equity line		28,004			32,273
Home equity		16,422			16,733
Recreational vehicles		17,266			16,226
Land/lots		3,358			2,145
Other - secured		1,195			1,423
Other – unsecured		1,096			1,249
		69,949			72,532
Commercial business		64,227			75,496
Total loans		604,435			594,856
Less:
Unamortized discounts		15			17
Net deferred loan costs		(536	)		(535	)
Allowance for loan losses		8,564			8,686
Total loans receivable, net	$	596,392			586,688
Commitments to originate or purchase loans	$	38,157			13,183
Commitments to deliver loans to secondary market	$	10,098			7,289
Weighted average contractual rate of loans in portfolio		4.75	%		4.83	%

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

$19.0

million and

$11.0

million as of

December 31, 2019

and

2018,

respectively. The interest rates on these loan commitments ranged from

3.00%

to

5.65%

at

December 31, 2019

and from

4.125%

to

6.375%

at

December 31, 2018.

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

$0.1

million at

December 31, 2019,

2018

and

2017.

The entire balance for all

three

years represents a Home Equity Line of Credit for

one

executive officer and there has been

no

activity on the line of credit during

2019,

2018

 or

2017.

All loans to executive officers and directors are 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, 2019,

2018

and

2017,

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

$505.7

million,

$480.6

million and

$471.4

million, respectively.

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

December 31, 2019

and

2018,

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

	201 9					2018
(Dollars in thousands)	Amount		Percent of Total			Amount		Percent of Total
Iowa	$	1,937		1.6	%	$	2,778		2.5	%
Minnesota		107,607		89.6			98,505		89.0
Wisconsin		8,483		7.1			8,105		7.3
Other states (1)		2,037		1.7			1,310		1.2
Total	$	120,064		100.0	%	$	110,698		100.0	%

(

1

)

Amounts under

two

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

At

December 31, 2019

and

2018,

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

	201 9					2018
(Dollars in thousands)	Amount		Percent of Total			Amount		Percent of Total
Florida	$	6,520		1.9	%	$	4,795		1.4	%
Idaho		2,980		0.9			3,171		0.9
Illinois		2,513		0.7			851		0.2
Indiana		2,691		0.8			3,031		0.9
Iowa		6,794		1.9			7,563		2.3
Minnesota		244,572		69.8			238,397		70.9
North Carolina		4,624		1.3			5,442		1.6
Ohio		2,140		0.6			1,566		0.5
Wisconsin		73,122		20.9			67,196		20.0
Other states (1)		4,239		1.2			4,118		1.3
Total	$	350,195		100.0	%	$	336,130		100.0	%

(

1

)

Amounts under

two

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