Finward Bancorp Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Loans Receivable (Tables)

Loans Receivable (Tables)

12 Months Ended

Dec. 31, 2012

Schedule of Classification of Loans Receivable [Table Text Block]

Year end loans are summarized below:

	(Dollars in thousands)
	December 31, 2012			December 31, 2011
Loans secured by real estate:
Construction and land development	$	23,984		$	21,143
Residential, including home equity		154,945			154,426
Commercial real estate and other dwelling		179,825			153,715
Total loans secured by real estate		358,754			329,284
Consumer loans		350			472
Commercial business		69,310			63,384
Government and other		8,869			8,643
Subtotal		437,283			401,783
Less:
Net deferred loan origination fees		(251	)		(264	)
Undisbursed loan funds		(51	)		(118	)
Loans receivable	$	436,981		$	401,401

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

The Bancorp’s activity in the allowance for loan losses, by loan segment, is summarized below for the years indicated.

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

The Bancorp's activity in the allowance for loan losses is summarized below for the twelve months ended December 31, 2012:

Allowance for loan losses:
Beginning Balance	$	1,161		$	15		$	3,329		$	2,399		$	1,101		$	-	$	8,005
Charge-offs		(336	)		(17	)		(256	)		(873	)		(619	)		-		(2,101	)
Recoveries		4			5			13			108			37			-		167
Provisions		195			16			1,464			(26	)		701			-		2,350
Ending Balance	$	1,024		$	19		$	4,550		$	1,608		$	1,220		$	-	$	8,421

The Bancorp's activity in the allowance for loan losses is summarized below for the twelve months ended December 31, 2011:

Allowance for loan losses:
Beginning Balance	$	994		$	30		$	2,773		$	4,704		$	620		$	-	$	9,121
Charge-offs		(469	)		(57	)		(880	)		(3,366	)		(163	)		-	$	(4,935	)
Recoveries		112			11			183			-			3			-	$	309
Provisions		524			31			1,253			1,061			641			-	$	3,510
Ending Balance	$	1,161		$	15		$	3,329		$	2,399		$	1,101		$	-	$	8,005

The Bancorp's allowance for loan losses impairment evaluation and financing receivables are summarized below at December 31, 2012:

Ending balance: individually
evaluated for impairment	$	9	$	-	$	1,783	$	-	$	209	$	-	$	2,001

Ending balance: collectively
evaluated for impairment	$	1,015	$	19	$	2,767	$	1,608	$	1,011	$	-	$	6,420

FINANCING RECEIVABLES
Ending balance	$	154,627	$	347	$	175,769	$	28,040	$	69,329	$	8,869	$	436,981

Ending balance: individually
evaluated for impairment	$	692	$	-	$	10,778	$	6,378	$	2,032	$	-	$	19,880

Ending balance: collectively
evaluated for impairment	$	153,935	$	347	$	164,991	$	21,662	$	67,297	$	8,869	$	417,101

The Bancorp's allowance for loan losses impairment evaluation and financing receivables are summarized below 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 December 31:

	(Dollars in thousands)
	Corporate Credit Exposure - Credit Risk Portfolio By Creditworthiness Category
	Commercial Real Estate, Construction												Government
	& Land Development, and Other Dwellings				Commercial Participations Purchased				Commercial Business Loans				Loans
Loan Grades	2012		2011		2012		2011		2012		2011		2012		2011
2 Moderate risk	$	19	$	25	$	-	$	-	$	5,674	$	4,467	$	-	$	-
3 Acceptable risk		110,416		85,703		15,585		2,387		45,202		37,713		8,869		8,643
4 Pass/monitor		51,100		51,429		1,029		5,903		13,500		17,532		-		-
5 Special mention (watch)		3,630		5,509		5,984		4,780		3,300		978		-		-
6 Substandard		10,604		11,952		5,442		7,170		1,653		2,603		-		-
7 Doubtful		-		-		-		-		-		-		-		-
Total	$	175,769	$	154,618	$	28,040	$	20,240	$	69,329	$	63,293	$	8,869	$	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	$	152,838	$	151,375	$	337	$	472
Non-performing		1,789		2,760		10		-
Total	$	154,627	$	154,135	$	347	$	472

Troubled Debt Restructurings on Financing Receivables [Table Text Block]

The Bancorp's troubled debt restructurings for the periods presented are summarized below:

					(Dollars in thousands)
			Pre-		Post-				Pre-		Post-
			Modification		Modification				Modification		Modification
			Outstanding		Outstanding				Outstanding		Outstanding
	Number of		Recorded		Recorded		Number of		Recorded		Recorded
	Contracts		Investment		Investment		Contracts		Investment		Investment
	December 31, 2012						December 31, 2011
Troubled debt restructurings during the period:
Residential real estate, including home equity		7	$	700	$	692		14	$	1,290	$	1,282
Consumer loans		-		-		-		-		-		-
Commercial real estate, construction & land development, and other dwellings		3		1,440		1,440		3		8,097		7,836
Commercial participations purchased		1		1,290		935		2		7,975		5,635
Commercial business loans		1		108		88		-		-		-
Government loans		-		-		-		-		-		-

	Number of		Recorded		Number of		Recorded
	Contracts		Investment		Contracts		Investment
	December 31, 2012				December 31, 2011
Troubled debt restructurings that subsequently defaulted during the periods presented:
Residential real estate, including home equity		1	$	39		1	$	159
Consumer loans		-		-		-		-
Commercial real estate, construction & land development, and other dwellings		-		-		3		6,009
Commercial participations purchased		-		-		-		-
Commercial business loans		-		-		-		-
Government loans		-		-		-		-

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

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

	As of December 31, 2012						For the twelve months ended December 31, 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		591		591		-		652		3
Commercial participations purchased		6,378		11,047		-		5,080		-
Commercial business loans		727		1,000		-		992		32
With an allowance recorded:
Residential real estate, including home equity		692		692		9		782		20
Commercial real estate, construction & land development, and other dwellings		10,187		10,271		1,783		10,207		349
Commercial participations purchased		-		-		-		1,394		-
Commercial business loans		1,305		1,305		209		874		51
Total:
Residential real estate, including home equity	$	692	$	692	$	9	$	782	$	20
Commercial real estate, construction & land development, and other dwellings	$	10,778	$	10,862	$	1,783	$	10,859	$	352
Commercial participations purchased	$	6,378	$	11,047	$	-	$	6,474	$	-
Commercial business loans	$	2,032	$	2,305	$	209	$	1,866	$	83

	As of December 31, 2011						For the twelve months ended December 31, 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	$	-	$	-	$	-	$	26	$	-
Commercial real estate, construction & land development, and other dwellings		690		880		-		1,725		16
Commercial participations purchased		2,483		8,158		-		2,946		182
Commercial business loans		793		818		-		386		20
With an allowance recorded:
Residential real estate, including home equity		1,282		1,282		10		278		-
Commercial real estate, construction & land development, and other dwellings		10,317		12,662		1,043		8,698		463
Commercial participations purchased		4,687		4,687		252		8,990		186
Commercial business loans		1,421		1,421		304		739		15
Total:
Residential real estate, including home equity	$	1,282	$	1,282	$	10	$	304	$	-
Commercial real estate, construction & land development, and other dwellings	$	11,007	$	13,542	$	1,043	$	10,423	$	479
Commercial participations purchased	$	7,170	$	12,845	$	252	$	11,936	$	368
Commercial business loans	$	2,214	$	2,239	$	304	$	1,125	$	35

Past Due Financing Receivables [Table Text Block]

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

			(Dollars in thousands)

													Recorded
					Greater								Investments
					Than 90								Greater than
	30-59 Days		60-89 Days		Days Past		Total Past						90 Days and
	Past Due		Past Due		Due		Due		Current		Total Loans		Accruing
December 31, 2012
Residential real estate, including home equity	$	4,172	$	1,145	$	1,448	$	6,765	$	147,862	$	154,627	$	-
Consumer loans		-		-		-		-		347		347		-
Commercial real estate, construction & land development, and other dwellings		4,044		390		1,993		6,427		169,342		175,769		229
Commercial participations purchased		5		-		5,442		5,447		22,593		28,040		-
Commercial business loans		689		116		1,525		2,330		66,999		69,329		-
Government loans		-		-		-		-		8,869		8,869		-
Total	$	8,910	$	1,651	$	10,408	$	20,969	$	416,012	$	436,981	$	229

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 loans		-		-		-		-		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 loans on nonaccrual status are summarized below:

	(Dollars in thousands)
	December 31,		December 31,
	2012		2011
Residential real estate, including home equity	$	1,846	$	2,481
Consumer loans		10		-
Commercial real estate, construction & land development, and other dwellings		2,311		3,433
Commercial participations purchased		5,442		7,170
Commercial business loans		1,644		926
Government loans		-		-
Total	$	11,253	$	14,010