fnwd20220630

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)

☒	Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.

For the quarterly period ended June 30, 2022 or

☐	Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.

For the transition period from ______ to ______

Commission File Number: 0-26128

Finward Bancorp

(Exact name of registrant as specified in its charter)

	Indiana	35-1927981
	(State or other jurisdiction of incorporation	(I.R.S. Employer Identification Number)
	or organization)

	9204 Columbia Avenue
	Munster, Indiana	46321
	(Address of principal executive offices)	(ZIP code)

Registrant's telephone number, including area code: (219) 836‑4400

	N/A
	(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading

Symbol(s)

Name of each exchange on which

registered

Common stock, no par value

FNWD

The NASDAQ Stock Market, LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company”, and “emerging growth company” in Rule 12b-2 of the Exchange Act:

Large accelerated filer ☐ Accelerated filer ☐ Non-accelerated filer ☒

Smaller Reporting Company ☒ Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

There were 4,297,900 shares of the registrant’s Common Stock, without par value, outstanding at August 15, 2022.

Finward Bancorp

Index

	Page
	Number
PART I. Financial Information

Item 1. Unaudited Financial Statements and Notes	1

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	29

Item 3. Quantitative and Qualitative Disclosures about Market Risk	42

Item 4. Controls and Procedures	42

PART II. Other Information	43

SIGNATURES	44

EXHIBITS
31.1 Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer
31.2 Rule 13a-14(a)/15d-14(a) Certification of Chief Financial Officer
32.1 Section 1350 Certifications
101 XBRL Interactive Data File

Finward Bancorp

Consolidated Balance Sheet

(Dollars in thousands)	June 30, 2022 (unaudited)			December 31, 2021

ASSETS

Cash and non-interest bearing deposits in other financial institutions	$	20,844		$	12,725
Interest bearing deposits in other financial institutions		55,602			19,987
Federal funds sold		2,856			464

Total cash and cash equivalents		79,302			33,176

Certificates of deposit in other financial institutions		1,482			1,709

Securities available-for-sale		400,466			526,889
Loans held-for-sale		1,525			4,987
Loans receivable, net of deferred fees and costs		1,474,381			966,720
Less: allowance for loan losses		(13,406	)		(13,343	)
Net loans receivable		1,460,975			953,377
Federal Home Loan Bank stock		3,038			3,247
Accrued interest receivable		6,892			5,444
Premises and equipment		45,985			31,385
Cash value of bank owned life insurance		31,571			31,440
Goodwill		22,615			11,109
Other intangible assets		5,588			3,126
Other assets		42,046			14,854

Total assets	$	2,101,485		$	1,620,743

LIABILITIES AND STOCKHOLDERS' EQUITY

Deposits:
Non-interest bearing	$	370,567		$	295,294
Interest bearing		1,546,648			1,138,907
Total		1,917,215			1,434,201
Repurchase agreements		24,536			14,581
Accrued expenses and other liabilities		23,080			15,346

Total liabilities		1,964,831			1,464,128

Commitments and contingencies

Stockholders' Equity:
Preferred stock, no par or stated value; 10,000,000 shares authorized, none outstanding		-			-
Common stock, no par or stated value; 10,000,000 shares authorized; shares issued and outstanding: June 30, 2022 - 4,296,949 December 31, 2021 - 3,480,701
Additional paid-in capital		68,623			30,430
Accumulated other comprehensive (loss) income		(57,781	)		4,276
Retained earnings		125,812			121,909

Total stockholders' equity		136,654			156,615

Total liabilities and stockholders' equity	$	2,101,485		$	1,620,743

See accompanying notes to consolidated financial statements.

Finward Bancorp

Consolidated Statements of Income

(unaudited)

(Dollars in thousands)	Three Months Ended June 30,				Six Months Ended June 30,
(Unaudited)	2022		2021		2022		2021
Interest income:
Loans receivable	$	15,221	$	10,275	$	28,507	$	21,021
Securities		2,469		2,144		5,066		4,105
Other interest earning assets		50		16		61		36

Total interest income		17,740		12,435		33,634		25,162

Interest expense:
Deposits		389		549		726		1,200
Repurchase agreements		26		12		42		22
Borrowed funds		27		2		33		22

Total interest expense		442		563		801		1,244

Net interest income		17,298		11,872		32,833		23,918
Provision for loan losses		-		576		-		1,154

Net interest income after provision for loan losses		17,298		11,296		32,833		22,764

Noninterest income:
Fees and service charges		1,560		1,471		2,864		2,537
Wealth management operations		588		576		1,183		1,183
Gain on sale of loans held-for-sale, net		291		1,116		898		3,165
Gain on sale of securities, net		258		269		639		686
Increase in cash value of bank owned life insurance		193		188		445		357
Gain (loss) on sale of foreclosed real estate		-		36		-		27
Other		6		24		11		38

Total noninterest income		2,896		3,680		6,040		7,993

Noninterest expense:
Compensation and benefits		7,538		5,897		14,905		11,582
Data processing		1,246		597		4,300		1,125
Occupancy and equipment		1,729		1,324		3,229		2,696
Marketing		385		195		1,036		394
Federal deposit insurance premiums		380		204		599		384
Other		3,898		2,793		7,376		5,322

Total noninterest expense		15,176		11,010		31,445		21,503

Income before income tax expenses		5,018		3,966		7,428		9,254
Income tax expenses		587		395		862		1,140

Net income	$	4,431	$	3,571	$	6,566	$	8,114

Earnings per common share:
Basic	$	1.04	$	1.03	$	1.60	$	2.33
Diluted	$	1.04	$	1.03	$	1.59	$	2.33

Dividends declared per common share	$	0.31	$	0.31	$	0.62	$	0.62

See accompanying notes to consolidated financial statements.

Finward Bancorp

Consolidated Statements of Comprehensive (Loss) Income

(unaudited)

(Dollars in thousands)	Three Months Ended June 30,						Six Months Ended June 30,
	2022			2021			2022			2021

Net income	$	4,431		$	3,571		$	6,566		$	8,114

Net change in net unrealized gains and losses on securities available-for-sale:
Unrealized (loss) gain arising during the period		(30,521	)		5,624			(77,910	)		(2,137	)
Less: reclassification adjustment for gains included in net income		(258	)		(269	)		(639	)		(686	)
Net securities (loss) gain during the period		(30,779	)		5,355			(78,549	)		(2,823	)
Tax effect		6,460			(1,126	)		16,492			591
Other comprehensive (loss) gain, net of tax		(24,319	)		4,229			(62,057	)		(2,232	)

Comprehensive (loss) gain, net of tax		(19,888	)		7,800			(55,491	)		5,882

See accompanying notes to consolidated financial statements.

Finward Bancorp

Consolidated Statements of Changes in Stockholder's Equity

(unaudited)

						Accumulated
			Additional			Other
	Common		Paid-in			Comprehensive			Retained			Total
(Dollars in thousands, except per share data)	Stock		Capital			(Loss)/Income			Earnings			Equity


Balance at January 1, 2021	$	-	$	29,987		$	10,441		$	111,261		$	151,689

Net income		-		-			-			4,543			4,543
Other comprehensive loss, net of tax							(6,461	)		-			(6,461	)
Net surrender value of 1,711 restricted stock awards		-		(68	)		-			-			(68	)
Stock-based compensation expense				146									146
Cash dividends, $0.31 per share		-		-			-			(1,079	)		(1,079	)

Balance at March 31, 2021	$	-	$	30,065		$	3,980		$	114,725		$	148,770

Net income		-		-			-			3,571			3,571
Other comprehensive loss, net of tax							4,229			-			4,229
Net surrender value of 1,404 restricted stock awards		-		(63	)		-			-			(63	)
Stock-based compensation expense				139									139
Cash dividends, $0.31 per share		-		-			-			(1,077	)		(1,077	)

Balance at June 30, 2021	$	-	$	30,141		$	8,209		$	117,219		$	155,569


Balance at January 1, 2022	$	-	$	30,430		$	4,276		$	121,909		$	156,615

Net income		-		-			-			2,135			2,135
Other comprehensive loss, net of tax							(37,738	)					(37,738	)
Net surrender value of 2,336 restricted stock awards				(115	)								(115	)
Stock-based compensation expense		-		169			-			-			169
Issuance of 795,423 shares at $47.75 per share, for acquisition of Royal Financial, Inc				37,902									37,902
Cash dividends, $0.31 per share		-		-			-			(1,331	)		(1,331	)

Balance at March 31, 2022	$	-	$	68,386		$	(33,462	)	$	122,713		$	157,637

Net income		-		-			-			4,431			4,431
Other comprehensive loss, net of tax							(24,319	)					(24,319	)
Net surrender value of 113 restricted stock awards				(5	)								(5	)
Stock-based compensation expense		-		163			-			-			163
Other adjustments		-		79			-			-			79
Cash dividends, $0.31 per share		-		-			-			(1,332	)		(1,332	)

Balance at June 30, 2022	$	-	$	68,623		$	(57,781	)	$	125,812		$	136,654

See accompanying notes to consolidated financial statements.

Finward Bancorp

Consolidated Statements of Cash Flows

(unaudited)

(Dollars in thousands)	Six months ended June 30,
	2022			2021
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	6,566		$	8,114
Adjustments to reconcile net income to net cash provided by operating activities:
Origination of loans for sale		(29,179	)		(85,903	)
Sale of loans originated for sale		33,506			94,163
Depreciation and amortization, net of accretion		3,121			2,154
Stock based compensation expense		332			285
Gain on sale of securities, net		(639	)		(686	)
Gain on sale of loans held-for-sale, net		(966	)		(3,293	)
Gain on sale of foreclosed real estate		-			(27	)
Gain on cash value of bank owned life insurance		(445	)		(357	)
Loss on derivatives		68			128
Provision for loan losses		-			1,154
Net change in:
Interest receivable		388			(90	)
Other assets		(3,038	)		1,728
Accrued expenses and other liabilities		(3,824	)		(3,723	)
Net cash provided by operating activities		5,890			13,647

CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from maturities of certificates of deposit in other financial institutions		472			426
Proceeds from maturities and pay downs of securities available-for-sale		15,596			43,322
Proceeds from sales of securities available-for-sale		43,775			19,290
Purchase of securities available-for-sale		(11,713	)		(119,075	)
Proceeds from bank owned life insurance		314			-
Net change in loans receivable		(54,178	)		1,660
Proceeds of Federal Home Loan Bank Stock		1,512			671
Purchase of loans receivable		(2,663	)		(5,978	)
Purchase of premises and equipment, net		(2,081	)		(470	)
Proceeds from sale of foreclosed real estate		-			197
Cash and cash equivalents from acquisition activity, net		33,799			-
Net cash provided by (used in) investing activities		24,833			(59,957	)

CASH FLOWS FROM FINANCING ACTIVITIES:
Change in deposits		7,978			92,757
Repayment of FHLB advances		-			(6,000	)
Net surrender value of restricted stock awards		(120	)		(131	)
Change in repurchase agreements and other borrowed funds		9,955			10,539
Dividends paid		(2,410	)		(2,152	)
Net cash (used in) provided by financing activities		15,403			95,013
Net change in cash and cash equivalents		46,126			48,703
Cash and cash equivalents at beginning of period		33,176			19,922
Cash and cash equivalents at end of period	$	79,302		$	68,625

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid during the period for:
Interest	$	781		$	1,262
Income taxes		1,157			2,020
Acquisition activity:
Fair value of assets acquired, including cash and cash equivalents	$	528,321		$	-
Value of goodwill and other intangible assets		14,726			-
Fair value of liabilities assumed		486,341			-
Cash paid for acquisition		18,725			-
Issuance of common stock for acquisition		37,981			-
Noncash activities:
Dividends declared not paid		1,332			1,077
Securities purchased not settled		-			9,764

See accompanying notes to consolidated financial statements.

Finward Bancorp

Notes to Condensed Consolidated Financial Statements

(unaudited)

Note 1 - Basis of Presentation

Organization and Description of Business

The consolidated financial statements include the accounts of Finward Bancorp (the “Bancorp” or “FNWD”), its wholly-owned subsidiaries NWIN Risk Management, Inc. (a captive insurance subsidiary) and Peoples Bank (the “Bank”), and the Bank’s wholly-owned subsidiaries, Peoples Service Corporation, NWIN, LLC, NWIN Funding, Incorporated, 1683 Real Estate LLC, and Columbia Development Company, LLC. The Bancorp’s business activities include being a holding company for the Bank as well as a holding company for NWIN Risk Management, Inc. The Bancorp’s earnings are primarily dependent upon the earnings of the Bank. The accompanying unaudited consolidated financial statements were prepared in accordance with instructions for Form 10-Q and, therefore, do not include all disclosures required by U.S. generally accepted accounting principles for complete presentation of consolidated financial statements. In the opinion of management, the consolidated financial statements contain all adjustments necessary to present fairly the consolidated balance sheets of the Bancorp as of June 30, 2022, and December 31, 2021, and the consolidated statements of income, comprehensive income (loss), and changes in stockholders’ equity for the three and six months ended June 30, 2022, and 2021, and consolidated statements of cash flows for the six months ended June 30, 2022, and 2021. The income reported for the six month period ended June 30, 2022, is not necessarily indicative of the results to be expected for the full year.

The Notes to the Consolidated Financial Statements appearing in Finward Bancorp’s Annual Report on Form 10-K (2021 Annual Report), which include descriptions of significant accounting policies, should be read in conjunction with these interim financial statements. The Consolidated Balance Sheet at December 31, 2021 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by GAAP for complete financial statements. Certain amounts in the prior period consolidated financial statements have been reclassified to conform to the current period presentation. These reclassifications had no effect on net income.

Note 2 - Use of Estimates

Preparing financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period, as well as the disclosures provided. Actual results could differ from those estimates. Estimates associated with the allowance for loan losses, fair values of foreclosed real estate, loan servicing rights, investment securities, deferred tax assets, goodwill, and the status of contingencies are particularly susceptible to material change in the near term.

Note 3 - Acquisition Activity

On January 31, 2022, Finward Bancorp (“Finward”) completed its previously announced acquisition of Royal Financial, Inc., a Delaware corporation (“RYFL”), pursuant to an Agreement and Plan of Merger dated July 28, 2021 (the “Merger Agreement”) between Finward and RYFL. The stockholders of both Finward and RYFL approved the Merger Agreement at the respective stockholder meetings of the companies held on December 13, 2021. Pursuant to the Merger Agreement, RYFL merged with and into Finward, with Finward as the surviving corporation (the “Merger”), and Royal Savings Bank, an Illinois state-chartered savings bank and wholly-owned subsidiary of RYFL, merged with and into Peoples Bank, the wholly-owned Indiana state-chartered commercial bank subsidiary of Finward, with Peoples Bank as the surviving bank.

Under the terms of the merger agreement, RYFL stockholders who owned 101 or more shares of RYFL common stock were permitted to elect to receive either 0.4609 shares of Finward common stock or $20.14 in cash, or a combination of both, for each share of RYFL common stock owned, subject to proration and allocation provisions such that 65% of the shares of RYFL common stock outstanding immediately prior to the closing of the merger were converted into the right to receive shares of Finward common stock and the remaining 35% of the outstanding RYFL shares were converted into the right to receive cash. Stockholders holding less than 101 shares of RYFL common stock received fixed consideration of $20.14 in cash per share and no stock consideration.

As a result of RYFL stockholder stock and cash elections and the related allocation and proration provisions of the merger agreement, Finward issued 795,423 shares of its common stock and paid cash consideration of approximately $18.7 million in the Merger. Based on the January 28, 2022, closing price of $47.75 per share of Finward common stock, the transaction had an implied valuation of approximately $56.7 million. In connection with the acquisition, Robert W. Youman, was appointed to the boards of directors of Finward and Peoples Bank effective as of the closing of the Merger. RYFL had a home office and eight branch offices in Cook County and DuPage County, Illinois. The acquisition has further expanded the Bank’s banking center network in Cook County and DuPage County, Illinois.

Under the acquisition method of accounting, the total purchase price is allocated to net tangible and intangible assets based on their current estimated fair values on the date of the acquisition. Based on the valuations of the fair value of tangible and intangible assets acquired and liabilities assumed, which are based on estimates and assumptions that are subject to change, the final purchase price for the RYFL acquisition is allocated as follows:

ASSETS			*LIABILITIES*
Cash and due from banks	$	52,524	Deposits
Investment securities, available for sale		-	Non-interest bearing	$	32,095
Certificate of deposit in other financial institutions		245	NOW accounts		63,639
			Savings and money market		184,149
Total Loans		450,757	Certificates of deposits		195,153
			Total Deposits		475,036
Premises and equipment, net		13,896
FHLB stock		1,303	Interest payable		75
Goodwill		11,506	Other liabilities		11,228
Core deposit intangible		3,220
Interest receivable		1,836
Other assets		7,758
Total assets purchased	$	543,045
Common shares issued		37,981
Cash paid		18,725
Total purchase price	$	56,706	Total liabilities assumed	$	486,339

During the second quarter of 2022, an adjustment was made to the carrying value of other assets of $189 thousand, due to the valuation of prepaids brought over in the acquisition, and premises and equipment, net, of $48 thousand, due to a correction in the valuation of buildings, in addition, a correction was made to the valuation of shares issued increasing the value by $79 thousand. The resulting impact of these changes was a decrease to the goodwill balance related to the RYFL acquisition of $158 thousand.

Final estimates of fair value on the date of acquisition have not been finalized yet. Prior to the end of the one-year measurement period for finalizing the purchase price allocation, if information becomes available which would indicate adjustments are required to the purchase price allocation, such adjustments will be included in the purchase price allocation prospectively. If any adjustments are made to the preliminary assumptions (provisional amounts), disclosures will be made in the notes to the financial statements of the amounts recorded in the current period earnings by line item that have been recorded in previous reporting periods as if the adjustments to the provisional amounts had been recognized as of the acquisition date.

Goodwill of approximately $11.5 million, which is the excess of the acquisition consideration over the fair value of net assets acquired, is expected to be recorded in the RYFL acquisition and is the result of expected operational synergies and other factors. This goodwill is not expected to be deductible for tax purposes. To the extent that management revises any of the above fair value adjustments as a result of its continuing evaluation, the amount of goodwill recorded in the RYFL acquisition will change.

Gross loans acquired during the RYFL transaction totaled $456.7 million. As of the six months ended June 30, 2022, the remaining outstanding principal of loans directly related to the RYFL acquisition total $425.8 million, of which $8.1 million are expected to be uncollectable.

The following pro-forma and earnings (unaudited) of the combined company are presented as if the RYFL merger had occurred on January 1, 2022 and January 1, 2021:

	For the three months ended			For the three months ended			For the six months ended			For the six months ended
(in thousands)	*June 30, 2022*			*June 30, 2021*			*June 30, 2022*			*June 30, 2021*
Selected Financial Data
Interest income	$	17,740		$	17,263		$	35,329		$	34,654
Interest expense		(442	)		(998	)		(902	)		(2,189	)
Recovery of (provision for) loan losses		-			(816	)		-			(1,094	)
Non-interest income		2,896			3,902			6,179			8,418
Non-interest expense (1)		(15,176	)		(13,831	)		(29,573	)		(26,776	)
Income before provision for income taxes		5,018			5,520			11,033			13,013
Income tax expense		(587	)		(639	)		(1,619	)		(1,812	)
Net income	$	4,431		$	4,881		$	9,414		$	11,201

Earnings per common share:
Basic	$	1.04		$	1.40		$	2.29		$	3.22
Diluted	$	1.04		$	1.40		$	2.28		$	3.22

(1)

Excludes $2.9 million in pre-tax merger expenses for the six months ended June 30, 2022.

For the six months ended June 30, 2022, the Bancorp has recorded $2.9 million in pre-tax one-time merger expenses related to the RYFL acquisition, and these expenses have been allocated to the following non-interest expense line items within the income statement:

(in thousands)	Six months ended
Noninterest expense:	June 30, 2022
Compensation and benefits	$	132
Data processing		1,929
Marketing		135
Other		656

Period merger expense	$	2,852

Note 4 - Securities

The estimated fair value of available-for-sale securities and the related gross unrealized gains and losses recognized in accumulated other comprehensive income were as follows:

	(Dollars in thousands)
			Gross		Gross			Estimated
	Cost		Unrealized		Unrealized			Fair
	Basis		Gains		Losses			Value
June 30, 2022
U.S. government sponsored entities	$	8,883	$	-	$	(949	)	$	7,934
U.S. treasury securities		594		-		-			594
Collateralized mortgage obligations and residential mortgage-backed securities		171,286		2		(21,227	)		150,061
Municipal securities		290,675		20		(49,848	)		240,847
Collateralized debt obligations		2,173		-		(1,143	)		1,030
Total securities available-for-sale	$	473,611	$	22	$	(73,167	)	$	400,466

	(Dollars in thousands)
			Gross		Gross			Estimated
	Cost		Unrealized		Unrealized			Fair
	Basis		Gains		Losses			Value
December 31, 2021
U.S. government sponsored entities	$	8,883	$	-	$	(214	)	$	8,669
U.S. treasury securities		400		-		-			400
Collateralized mortgage obligations and residential mortgage-backed securities		187,279		961		(3,539	)		184,701
Municipal securities		322,750		9,904		(527	)		332,127
Collateralized debt obligations		2,173		-		(1,181	)		992
Total securities available-for-sale	$	521,485	$	10,865	$	(5,461	)	$	526,889

The cost basis and estimated fair value of available-for-sale debt securities at June 30, 2022, by contractual maturity, were as follows. Securities not due at a single maturity date, primarily collateralized mortgage obligations and residential mortgage-backed securities, are shown separately.

	(Dollars in thousands)
	Available-for-sale
			Estimated
	Cost		Fair
June 30, 2022	Basis		Value
Due in one year or less	$	494	$	495
Due from one to five years		1,954		1,956
Due from five to ten years		26,832		24,869
Due over ten years		273,045		223,085

Collateralized mortgage obligations and residential mortgage-backed securities		171,286		150,061
Total	$	473,611	$	400,466

Sales of available-for-sale securities were as follows for the three months ended:

	(Dollars in thousands)
	June 30,			June 30,
	2022			2021

Proceeds	$	27,539		$	12,386
Gross gains		295			289
Gross losses		(37	)		(20	)

Sales of available-for-sale securities were as follows for the six months ended:

	(Dollars in thousands)
	June 30,			June 30,
	2022			2021

Proceeds	$	43,775		$	19,290
Gross gains		692			706
Gross losses		(53	)		(20	)

Accumulated other comprehensive income/(loss) balances, net of tax, related to available-for-sale securities, were as follows:

	(Dollars in thousands)
	Unrealized gain/(loss)
Ending balance, December 31, 2021	$	4,276
Current period change		(62,057	)
Ending balance, June 30, 2022	$	(