Finward Bancorp Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Loans Receivable

Loans Receivable

6 Months Ended

Jun. 30, 2011

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

Note 4 - Loans Receivable

	(Dollars in thousands)
	June 30, 2011			December 31, 2010
Loans secured by real estate:
Construction and land development	$	30,141		$	46,371
Residential, including home equity		149,552			153,150
Commercial real estate and other dwelling		153,249			146,111
Total loans secured by real estate		332,942			345,632
Consumer loans		594			765
Commercial business		63,027			61,837
Government and other		9,881			10,380
Subtotal		406,444			418,614
Less:
Net deferred loan origination fees		(249	)		(273	)
Undisbursed loan funds		(134	)		(108	)
Loans receivable	$	406,061		$	418,233

The Bancorp's activity in the allowance for loan losses, by loan segment, is summarized below for the six months ended June 30, 2011:

							Commercial Real
							Estate,
							Construction &
	Residential Real						Land			Commercial
	Estate, Including						Development, and			Participations			Commercial
(Dollars in thousands)	Home Equity			Consumer Loans			Other Dwellings			Purchased			Business Loans			Government		Total
For the six months ending June 30, 2011
Allowance for loan losses:
Beginning Balance	$	994		$	30		$	2,773		$	4,704		$	620		$	-		9,121
Charge-offs		(235	)		(4	)		(567	)		(2,417	)		(111	)		-		(3,334	)
Recoveries		102			10			174			-			-			-		286
Provisions		245			(18	)		682			950			206			-		2,065
Ending Balance	$	1,106		$	18		$	3,062		$	3,237		$	715		$	-	$	8,138

The Bancorp's allowance for loan losses impairment evaluation, by loan segment, at June 30, 2011:

Ending balance: individually evaluated for impairment	$	-	$	-	$	932	$	494	$	130	$	-	$	1,556

Ending balance: collectively evaluated for impairment	$	1,106	$	18	$	2,130	$	2,743	$	585	$	-	$	6,582

Ending balance: loans acquired with deteriorated credit quality	$	-	$	-	$	-	$	-	$	-	$	-	$	-

FINANCING RECEIVABLES Ending balance	$	149,248	$	591	$	158,348	$	25,043	$	62,950	$	9,881	$	406,061

Ending balance: individually evaluated for impairment	$	55	$	-	$	9,887	$	11,887	$	392	$	-	$	22,221

Ending balance: collectively evaluated for impairment	$	149,193	$	591	$	148,461	$	13,156	$	62,558	$	9,881	$	383,840

Ending balance: loans acquired with deteriorated credit quality	$	-	$	-	$	-	$	-	$	-	$	-	$	-

The Bancorp's allowance for loan losses impairment evaluation, by loan segment, at December 31, 2010:

Ending balance: individually evaluated for impairment	$	1	$	-	$	875	$	1,897	$	21	$	-	$	2,794

Ending balance: collectively evaluated for impairment	$	993	$	30	$	1,898	$	2,807	$	599	$	-	$	6,327

Ending balance: loans acquired with deteriorated credit quality	$	-	$	-	$	-	$	-	$	-	$	-	$	-

FINANCING RECEIVABLES Ending balance	$	152,881	$	874	$	163,616	$	28,866	$	61,726	$	10,270	$	418,233

Ending balance: individually evaluated for impairment	$	64	$	-	$	10,974	$	14,493	$	482	$	-	$	26,013

Ending balance: collectively evaluated for impairment	$	152,817	$	874	$	152,642	$	14,373	$	61,244	$	10,270	$	392,220

Ending balance: loans acquired with deteriorated credit quality	$	-	$	-	$	-	$	-	$	-	$	-	$	-

The Bancorp's credit quality indicators by loan segment are summarized below at June 30, 2011 and December 31, 2010:

	(Dollars in thousands)
	Corporate Credit Exposure - Credit Risk Portfolio By Creditworthiness Category
	Commercial Real Estate, Construction
	& Land Development, and Other Dwellings				Commercial Participations Purchased				Commercial Business Loans				Government
Loan Grades	2011		2010		2011		2010		2011		2010		2011		2010
2 Modest risk	$	28	$	31	$	-	$	-	$	4,460	$	4,724	$	-	$	-
3 Acceptable risk		80,384		63,330		1,431		1,473		34,705		30,549		9,881		10,270
4 Pass/monitor		57,485		78,758		5,971		6,482		19,381		21,131		-		-
5 Special mention (watch)		10,298		9,817		5,754		6,419		2,956		2,517		-		-
6 Substandard		10,153		11,680		11,887		14,492		1,448		2,805		-		-
7 Doubtful		-		-		-		-		-		-		-		-
Total	$	158,348	$	163,616	$	25,043	$	28,866	$	62,950	$	61,726	$	9,881	$	10,270

	(Dollars in thousands)
	Consumer Credit Exposure - Credit Risk Profile Based On Payment Activity
	Residential Real Estate,
	Including Home Equity				Consumer Loans
	2011		2010		2011		2010
Performing	$	146,220	$	149,892	$	591	$	871
Nonperforming		3,028		2,989		-		3
Total	$	149,248	$	152,881	$	591	$	874

The Bancorp's impaired loans are summarized below:

							For the six months ended
	As of June 30, 2011						June 30, 2011
							Average		Interest
(Dollars in thousands)	Recorded		Unpaid Principal		Related		Recorded		Income
	Investment		Balance		Allowance		Investment		Recognized
With no related allowance recorded:
Residential real estate, including home equity	$	55	$	55	$	-	$	-	$	-
Commercial real estate, construction & land development, and other dwellings		437		813		-		746		12
Commercial participations purchased		4,249		10,566		-		3,473		128
Commercial business loans		-		-		-		177		-
With an allowance recorded:
Residential real estate, including home equity...		-		-		-		-		-
Commercial real estate, construction & land development, and other dwellings		9,450		9,722		932		9,685		358
Commercial participations purchased		7,638		9,180		494		9,718		216
Commercial business loans		392		417		130		260		9
Total:
Residential real estate, including home equity...	$	55	$	55	$	-	$	-	$	-
Commercial real estate, construction & land development, and other dwellings	$	9,887	$	10,535	$	932	$	10,431	$	370
Commercial participations purchased	$	11,887	$	19,746	$	494	$	13,191	$	344
Commercial business loans	$	392	$	417	$	130	$	437	$	9

	As of December 31, 2010
(Dollars in thousands)	Recorded		Unpaid principal		Related
	investment		balance		allowance
With no related allowance recorded:
Residential real estate, including home equity	$	64	$	103	$	-
Commercial real estate, construction & land development, and other dwellings		1,054		1,345		-
Commercial participations purchased		2,696		8,140		-
Commercial business loans		354		354		-
With an allowance recorded:
Residential real estate, including home equity		-		-		1
Commercial real estate, construction & land development, and other dwellings		9,920		10,361		875
Commercial participations purchased		11,797		11,797		1,897
Commercial business loans		128		128		21
Total:
Residential real estate, including home equity	$	64	$	103	$	1
Commercial real estate, construction & land development, and other dwellings	$	10,974	$	11,706	$	875
Commercial participations purchased	$	14,493	$	19,937	$	1,897
Commercial business loans	$	482	$	482	$	21

The Bancorp's age analysis of past due financing receivables are summarized below:

			(Dollars in thousands)
													Recorded
													Investments
											Total		Greater than
	30-59 Days Past		60-89 Days Past		Greater Than 90						Financing		90 Days and
	Due		Due		Days		Total Past Due		Current		Receivables		Accruing
June 30, 2011
Residential real estate, including home equity	$	3,498	$	1,580	$	2,857	$	7,935	$	141,313	$	149,248	$	364
Consumer loans		-		-		-		-		591		591		-
Commercial real estate, construction & land development, and other dwellings		347		26		2,010		2,383		155,965		158,348		-
Commercial participations purchased		-		-		11,887		11,887		13,155		25,042		-
Commercial business loans		292		143		-		435		62,515		62,950		-
Government		-		-		-		-		9,881		9,881		-
Total	$	4,137	$	1,749	$	16,754	$	22,640	$	383,420	$	406,060	$	364

December 31, 2010
Residential real estate, including home equity	$	5,832	$	2,423	$	2,859	$	11,114	$	141,767	$	152,881	$	145
Consumer loans		29		-		3		32		842		874		3
Commercial real estate, construction & land development, and other dwellings		410		2,573		3,747		6,730		156,886		163,616		-
Commercial participations purchased		-		-		14,492		14,492		14,374		28,866		-
Commercial business loans		408		18		354	$	780		60,946		61,726		-
Government		-		-		-		-		10,270		10,270		-
Total	$	6,679	$	5,014	$	21,455	$	33,148	$	385,085	$	418,233	$	148

The Bancorp's financing receivables on nonaccrual status are summarized below:

	(Dollars in thousands)
	June 30,		December 31,
	2011		2010
Residential real estate, including home equity	$	2,664	$	2,843
Consumer loans		-		-
Commercial real estate, construction & land development, and other dwellings		5,069		6,150
Commercial participations purchased		11,887		14,492
Commercial business loans		391		482
Government		-		-
Total	$	20,011	$	23,967

- Definition

The entire disclosure for claims held for amounts due a company. Examples include trade accounts receivables, notes receivables, loans receivables.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 310
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6965416&loc=d3e5066-111524

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 03
-Paragraph 7
-Article 9

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Statement of Position (SOP)
-Number 01-6
-Paragraph 13
-Subparagraph d
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 310
-SubTopic 10
-Section 50
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=6965416&loc=d3e5162-111524

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 02
-Paragraph 3, 4
-Article 5

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(k))
-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.3,4)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Article 4
-Section 08
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Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 310
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6965416&loc=d3e5074-111524

+ Details