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

Quarterly report pursuant to Section 13 or 15(d)

Loans Receivable (Tables)

Loans Receivable (Tables)

9 Months Ended

Sep. 30, 2012

Schedule of Classification of Loans Receivable [Table Text Block]

	(Dollars in thousands)
	September 30, 2012			December 31, 2011
Loans secured by real estate:
Construction and land development	$	22,926		$	21,143
Residential, including home equity		155,859			154,426
Commercial real estate and other dwelling		175,516			153,715
Total loans secured by real estate		354,301			329,284
Consumer loans		428			472
Commercial business		71,360			63,384
Government and other		6,742			8,643
Subtotal		432,831			401,783
Less:
Net deferred loan origination fees		(262	)		(264	)
Undisbursed loan funds		(57	)		(118	)
Loans receivable	$	432,512		$	401,401

Allowance for Credit Losses on Financing Receivables [Table Text Block]

(Dollars in thousands)	Residential Real Estate, Including Home Equity			Consumer Loans			Commercial Real Estate, Construction & Land Development, and Other Dwellings			Commercial Participations Purchased			Commercial Business Loans			Government		Total

The Bancorp's activity in the allowance for loan losses is summarized below for the nine months ended September 30, 2012:

Allowance for loan losses:
Beginning Balance	$	1,161		$	15		$	3,329		$	2,399		$	1,101		$	-	$	8,005
Charge-offs		(236	)		(13	)		(254	)		(503	)		(210	)		-		(1,216	)
Recoveries		3			4			13			108			31			-		159
Provisions		149			22			1,667			(359	)		146			-		1,625
Ending Balance	$	1,077		$	28		$	4,755		$	1,645		$	1,068		$	-	$	8,573

The Bancorp's activity in the allowance for loan losses is summarized below for the nine months ended September 30, 2011:

Allowance for loan losses:
Beginning Balance	$	994		$	30		$	2,773		$	4,704		$	620		$	-	$	9,121
Charge-offs		(457	)		(14	)		(682	)		(2,432	)		(113	)		-	$	(3,698	)
Recoveries		111			11			182			-			-			-	$	304
Provisions		543			(8	)		1,150			331			619			-	$	2,635
Ending Balance	$	1,191		$	19		$	3,423		$	2,603		$	1,126		$	-	$	8,362

The Bancorp's allowance for loan losses impairment evaluation at September 30, 2012:

Ending balance: individually
evaluated for impairment	$	10		$	-		$	1,470		$	-		$	245		$	-	$	1,725

Ending balance: collectively
evaluated for impairment	$	1,067		$	28		$	3,285		$	1,645		$	823		$	-	$	6,848

FINANCING RECEIVABLES
Ending balance	$	155,548		$	428		$	173,842		$	24,600		$	71,352		$	6,742	$	432,512

Ending balance: individually
evaluated for impairment	$	738		$	-		$	10,679		$	5,775		$	1,698		$	-	$	18,890

Ending balance: collectively
evaluated for impairment	$	154,810		$	428		$	163,163		$	18,825		$	69,654		$	6,742	$	413,622

The Bancorp's allowance for loan losses impairment evaluation at December 31, 2011:

Ending balance: individually
evaluated for impairment	$	10		$	-		$	1,043		$	252		$	304		$	-	$	1,609

Ending balance: collectively
evaluated for impairment	$	1,151		$	15		$	2,286		$	2,147		$	797		$	-	$	6,396

FINANCING RECEIVABLES
Ending balance	$	154,135		$	472		$	154,618		$	20,240		$	63,293		$	8,643	$	401,401

Ending balance: individually
evaluated for impairment	$	1,282		$	-		$	11,007		$	7,170		$	2,214		$	-	$	21,673

Ending balance: collectively
evaluated for impairment	$	152,853		$	472		$	143,611		$	13,070		$	61,079		$	8,643	$	379,728

Financing Receivable Credit Quality Indicators [Table Text Block]

The Bancorp's credit quality indicators, are summarized below at September 30, 2012 and December 31, 2011:

	(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		2012		2011		2012		2011		2012		2011		2012		2011
2 Moderate risk	$	21	$	25	$	-	$	-	$	5,659	$	4,467	$	-	$	-
3 Acceptable risk		109,408		85,703		10,573		2,387		44,896		37,713		6,742		8,643
4 Pass/monitor		50,285		51,429		1,050		5,903		15,779		17,532		-		-
5 Special mention (watch)		3,657		5,509		7,202		4,780		2,869		978		-		-
6 Substandard		10,471		11,952		5,775		7,170		2,149		2,603		-		-
7 Doubtful		-		-		-		-		-		-		-		-
Total	$	173,842	$	154,618	$	24,600	$	20,240	$	71,352	$	63,293	$	6,742	$	8,643

	(Dollars in thousands)
	Consumer Credit Exposure - Credit Risk Profile Based On Payment Activity
	Residential Real Estate, Including Home Equity				Consumer Loans
	2012		2011		2012		2011
Performing	$	153,388	$	151,375	$	417	$	472
Nonperforming		2,160		2,760		11		-
Total	$	155,548	$	154,135	$	428	$	472

Troubled Debt Restructurings on Financing Receivables [Table Text Block]

The Bancorp's cumulative outstanding troubled debt restructurings are summarized below:

	(Dollars in thousands)
	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment		Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
	September 30, 2012						December 31, 2011
Troubled debt restructurings outstanding at the end of the periods presented:
Residential real estate, including home equity		8	$	741	$	738		14	$	1,290	$	1,282
Consumer loans		-		-		-		-		-		-
Commercial real estate, construction & land development, and other dwellings		6		9,098		8,724		3		8,097		7,836
Commercial participations purchased		2		7,975		5,632		2		7,975		5,635
Commercial business loans		-		-		-		-		-		-
Government		-		-		-		-		-		-

	Number of Contracts		Recorded Investment		Number of Contracts		Recorded Investment
	September 30, 2012				December 31, 2011
Troubled debt restructurings that subsequently defaulted during the periods presented:

Residential real estate, including home equity		-	$	-		-	$	-
Consumer loans		-		-		-		-
Commercial real estate, construction & land development, and other dwellings		-		-		1		376
Commercial participations purchased		-		-		-		-
Commercial business loans		-		-		-		-
Government		-		-		-		-

Schedule of Impaired Loans Receivable, Additional Information [Table Text Block]

The Bancorp's individually evaluated impaired loans are summarized below:

	As of September 30, 2012						For the nine months ended September 30, 2012
(Dollars in thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:
Residential real estate, including home equity	$	-	$	-	$	-	$	-	$	-
Commercial real estate, construction & land development, and other dwellings		219		303		-		677		5
Commercial participations purchased		5,775		10,074		-		4,106		-
Commercial business loans		1,012		1,095		-		864		35
With an allowance recorded:
Residential real estate, including home equity		738		738		10		930		13
Commercial real estate, construction & land development, and other dwellings		10,460		10,460		1,470		10,240		399
Commercial participations purchased		-		-		-		2,566		-
Commercial business loans		686		686		245		1,047		-
Total:
Residential real estate, including home equity	$	738	$	738	$	10	$	930	$	13
Commercial real estate, construction & land development, and other dwellings	$	10,679	$	10,763	$	1,470	$	10,917	$	404
Commercial participations purchased	$	5,775	$	10,074	$	-	$	6,672	$	-
Commercial business loans	$	1,698	$	1,781	$	245	$	1,911	$	35

	As of December 31, 2011						For the nine months ended September 30, 2011
(Dollars in thousands)	Recorded investment		Unpaid principal balance		Related allowance		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:
Residential real estate, including home equity	$	-	$	-	$	-	$	32	$	-
Commercial real estate, construction & land development, and other dwellings		690		880		-		923		16
Commercial participations purchased		2,483		8,158		-		2,651		182
Commercial business loans		793		818		-		568		11
With an allowance recorded:
Residential real estate, including home equity		1,282		1,282		10		-		-
Commercial real estate, construction & land development, and other dwellings		10,317		12,662		1,043		9,415		445
Commercial participations purchased		4,687		4,687		252		10,463		216
Commercial business loans		1,421		1,421		304		873		2
Total:
Residential real estate, including home equity	$	1,282	$	1,282	$	10	$	32	$	-
Commercial real estate, construction & land development, and other dwellings	$	11,007	$	13,542	$	1,043	$	10,338	$	461
Commercial participations purchased	$	7,170	$	12,845	$	252	$	13,114	$	398
Commercial business loans	$	2,214	$	2,239	$	304	$	1,441	$	13

Past Due Financing Receivables [Table Text Block]

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

(Dollars in thousands)
	30-59 Days Past Due		60-89 Days Past Due		Greater Than 90 Days Past Due		Total Past Due		Current		Total Financing Receivables		Recorded Investments Greater than 90 Days and Accruing
September 30, 2012
Residential real estate, including home equity	$	6,119	$	664	$	1,783	$	8,566	$	146,982	$	155,548	$	166
Consumer loans		3		-		-		3		425		428		-
Commercial real estate, construction & land development, and other dwellings		3,167		659		2,277		6,103		167,739		173,842		84
Commercial participations purchased		5		-		5,775		5,780		18,820		24,600		-
Commercial business loans		960		1,186		487		2,633		68,719		71,352		-
Government		-		-		-		-		6,742		6,742		-
Total	$	10,254	$	2,509	$	10,322	$	23,085	$	409,427	$	432,512	$	250

December 31, 2011
Residential real estate, including home equity	$	3,413	$	874	$	2,663	$	6,950	$	147,185	$	154,135	$	279
Consumer loans		7		-		-		7		465		472		-
Commercial real estate, construction & land development, and other dwellings		604		238		1,616		2,458		152,160		154,618		-
Commercial participations purchased		7		-		7,169		7,176		13,064		20,240		-
Commercial business loans		458		323		717		1,498		61,795		63,293		-
Government		-		-		-		-		8,643		8,643		-
Total	$	4,489	$	1,435	$	12,165	$	18,089	$	383,312	$	401,401	$	279

Schedule of Financing Receivables, Non Accrual Status [Table Text Block]

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

	(Dollars in thousands)
	September 30, 2012		December 31, 2011
Residential real estate, including home equity	$	2,160	$	2,481
Consumer loans		11		-
Commercial real estate, construction & land development, and other dwellings		2,193		3,433
Commercial participations purchased		5,775		7,170
Commercial business loans		1,376		926
Government		-		-
Total	$	11,515	$	14,010