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

Quarterly report pursuant to Section 13 or 15(d)

Note 5 - Loans Receivable (Tables)

Note 5 - Loans Receivable (Tables)

6 Months Ended

Jun. 30, 2020

Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block]

(Dollars in thousands)
	June 30, 2020		December 31, 2019
Loans secured by real estate:
Residential real estate	$	284,703	$	299,569
Home equity		46,254		49,118
Commercial real estate		286,122		283,108
Construction and land development		92,982		87,710
Multifamily		56,070		51,286
Farmland		221		227
Total loans secured by real estate		766,352		771,018
Commercial business		181,984		103,222
Consumer		522		627
Manufactured homes		17,806		13,285
Government		13,729		15,804
Subtotal		980,393		903,956
Less:
Net deferred loan origination fees		1,411		2,934
Undisbursed loan funds		98		(21	)
Loans receivable	$	981,902	$	906,869

Financing Receivable, Allowance for Credit Loss [Table Text Block]

(Dollars in thousands)	Beginning Balance		Charge-offs			Recoveries		Provisions			Ending Balance

The Bancorp's activity in the allowance for loan losses, by loan segment, is summarized below for the three months ended June 30, 2020:

Allowance for loan losses:
Residential real estate	$	1,828	$	(2	)	$	4	$	(122	)	$	1,708
Home equity		246		-			-		(15	)		231
Commercial real estate		3,693		(80	)		-		99			3,712
Construction and land development		1,223		(17	)		-		(5	)		1,201
Multifamily		562		-			-		47			609
Farmland		-		-			-		-			-
Commercial business		1,901		(78	)		16		536			2,375
Consumer		42		(1	)		5		(16	)		30
Manufactured homes		-		-			-		-			-
Government		16		-			-		(16	)		-
Total	$	9,511	$	(178	)	$	25	$	508		$	9,866

Allowance for loan losses:
Residential real estate	$	1,680	$	(18	)	$	4	$	(6	)	$	1,660
Home equity		194		-			2		6			202
Commercial real estate		3,485		-			-		44			3,529
Construction and land development		777		-			-		29			806
Multifamily		434		-			-		19			453
Farmland		-		-			-		-			-
Commercial business		1,391		-			10		116			1,517
Consumer		254		(7	)		6		303			556
Manufactured homes		-		-			-		-			-
Government		21		-			-		-			21
Total	$	8,236	$	(25	)	$	22	$	511		$	8,744

Allowance for loan losses:
Residential real estate	$	1,812	$	(2	)	$	10	$	(112	)	$	1,708
Home equity		223		-			-		8			231
Commercial real estate		3,773		(80	)		-		19			3,712
Construction and land development		1,098		(17	)		-		120			1,201
Multifamily		529		-			-		80			609
Farmland		-		-			-		-			-
Commercial business		1,504		(78	)		17		932			2,375
Consumer		43		(13	)		8		(8	)		30
Manufactured homes		-		-			-		-			-
Government		17		-			-		(17	)		-
Total	$	8,999	$	(190	)	$	35	$	1,022		$	9,866

Allowance for loan losses:
Residential real estate	$	1,715	$	(66	)	$	18	$	(7	)	$	1,660
Home equity		202		-			2		(2	)		202
Commercial real estate		3,335		-			-		194			3,529
Construction and land development		756		-			-		50			806
Multifamily		472		-			-		(19	)		453
Farmland		-		-			-		-			-
Commercial business		1,362		-			16		139			1,517
Consumer		82		(25	)		9		490			556
Manufactured homes		-		-			-		-			-
Government		38		-			-		(17	)		21
Total	$	7,962	$	(91	)	$	45	$	828		$	8,744

Financing Receivable, Impairment Evaluation [Table Text Block]

	Ending Balances

(Dollars in thousands)	Individually evaluated for impairment reserves		Collectively evaluated for impairment reserves		Loan receivables		Individually evaluated for impairment		Purchased credit impaired individually evaluated for impairment		Collectively evaluated for impairment

The Bancorp's allowance for loan losses impairment evaluation and loan receivables are summarized below at June 30, 2020:

Residential real estate	$	130	$	1,578	$	284,563	$	794	$	1,470	$	282,299
Home equity		-		231		46,312		230		142		45,940
Commercial real estate		15		3,697		286,122		1,110		152		284,860
Construction and land development		-		1,201		92,982		-		-		92,982
Multifamily		-		609		56,070		112		656		55,302
Farmland		-		-		221		-		-		221
Commercial business		337		2,038		178,863		1,103		1,154		176,606
Consumer		-		30		522		-		-		522
Manufactured homes		-		-		22,518		-		-		22,518
Government		-		-		13,729		-		-		13,729
Total	$	482	$	9,384	$	981,902	$	3,349	$	3,574	$	974,979

Residential real estate	$	10	$	1,802	$	299,333	$	642	$	1,581	$	297,110
Home equity		4		219		49,181		221		216		48,744
Commercial real estate		-		3,773		283,108		1,078		487		281,543
Construction and land development		-		1,098		87,710		-		-		87,710
Multifamily		-		529		51,286		129		673		50,484
Farmland		-		-		227		-		-		227
Commercial business		152		1,352		103,088		1,041		1,150		100,897
Consumer		-		43		627		-		-		627
Manufactured homes		-		-		16,505		-		-		16,505
Government		-		17		15,804		-		-		15,804
Total	$	166	$	8,833	$	906,869	$	3,111	$	4,107	$	899,651

Financing Receivable Credit Quality Indicators [Table Text Block]

	Credit Exposure - Credit Risk Portfolio By Creditworthiness Category
	June 30, 2020
(Dollars in thousands)	2		3		4		5		6		7		8

Loan Segment	Moderate		Above average acceptable		Acceptable		Marginally acceptable		Pass/monitor		Special mention		Substandard		Total
Residential real estate	$	660	$	113,209	$	101,700	$	13,550	$	47,117	$	3,164	$	5,163	$	284,563
Home equity		120		6,371		37,894		121		743		565		498		46,312
Commercial real estate		-		2,123		71,620		146,373		56,102		6,731		3,173		286,122
Construction and land development		-		1,087		28,609		50,274		13,012		-		-		92,982
Multifamily		-		757		17,409		31,844		5,018		501		541		56,070
Farmland		-		-		-		-		221		-		-		221
Commercial business		5,256		99,733		16,920		36,300		17,723		1,851		1,080		178,863
Consumer		55		-		467		-		-		-		-		522
Manufactured homes		4,712		2,146		14,663		180		817		-		-		22,518
Government		-		1,775		10,294		1,660		-		-		-		13,729
Total	$	10,803	$	227,201	$	299,576	$	280,302	$	140,753	$	12,812	$	10,455	$	981,902

	December 31, 2019
(Dollars in thousands)	2		3		4		5		6		7		8

Loan Segment	Moderate		Above average acceptable		Acceptable		Marginally acceptable		Pass/monitor		Special mention		Substandard		Total
Residential real estate	$	827	$	119,138	$	104,153	$	13,463	$	53,058	$	4,203	$	4,491	$	299,333
Home equity		100		6,536		40,027		264		934		813		507		49,181
Commercial real estate		-		2,030		82,158		135,058		56,917		5,380		1,565		283,108
Construction and land development		-		719		26,900		45,751		14,340		-		-		87,710
Multifamily		-		903		18,107		26,800		4,674		-		802		51,286
Farmland		-		-		-		-		227		-		-		227
Commercial business		8,312		13,158		19,638		39,016		20,009		2,228		727		103,088
Consumer		90		-		537		-		-		-		-		627
Manufactured homes		3,221		2,413		9,825		184		862		-		-		16,505
Government		-		1,889		11,505		2,410		-		-		-		15,804
Total	$	12,550	$	146,786	$	312,850	$	262,946	$	151,021	$	12,624	$	8,092	$	906,869

Impaired Financing Receivables [Table Text Block]

							For the six months ended
	As of June 30, 2020						June 30, 2020
(Dollars in thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:
Residential real estate	$	2,077	$	3,459	$	-	$	2,107	$	49
Home equity		372		392		-		384		9
Commercial real estate		1,096		1,682		-		1,379		47
Construction and land development		-		-		-		-		-
Multifamily		768		850		-		784		14
Farmland		-		-		-		-		-
Commercial business		1,463		1,517		-		1,588		40
Consumer		-		-		-		-		-
Manufactured homes		-		-		-		-		-
Government		-		-		-		-		-

With an allowance recorded:
Residential real estate	$	187	$	187	$	130	$	107	$	1
Home equity		-		-		-		5		-
Commercial real estate		166		166		15		67		1
Construction and land development		-		-		-		-		-
Multifamily		-		-		-		-		-
Farmland		-		-		-		-		-
Commercial business		794		794		337		676		19
Consumer		-		-		-		-		-
Manufactured homes		-		-		-		-		-
Government		-		-		-		-		-

Total:
Residential real estate	$	2,264	$	3,646	$	130	$	2,214	$	50
Home equity	$	372	$	392	$	-	$	389	$	9
Commercial real estate	$	1,262	$	1,848	$	15	$	1,446	$	48
Construction & land development	$	-	$	-	$	-	$	-	$	-
Multifamily	$	768	$	850	$	-	$	784	$	14
Farmland	$	-	$	-	$	-	$	-	$	-
Commercial business	$	2,257	$	2,311	$	337	$	2,264	$	59
Consumer	$	-	$	-	$	-	$	-	$	-
Manufactured homes	$	-	$	-	$	-	$	-	$	-
Government	$	-	$	-	$	-	$	-	$	-

							For the six months ended
	As of December 31, 2019						June 30, 2019
(Dollars in thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:
Residential real estate	$	2,140	$	3,555	$	-	$	1,813	$	31
Home equity		429		451		-		344		3
Commercial real estate		1,547		2,141		-		1,655		33
Construction & land development		-		-		-		-		-
Multifamily		802		884		-		472		3
Farmland		-		-		-		-		-
Commercial business		1,814		1,906		-		1,967		43
Consumer		-		-		-		-		-
Manufactured homes		-		-		-		-		-
Government		-		-		-		-		-

With an allowance recorded:
Residential real estate	$	83	$	83	$	10	$	159	$	2
Home equity		8		8		4		59		1
Commercial real estate		18		18		-		478		-
Construction & land development		-		-		-		-		-
Multifamily		-		-		-		-		-
Farmland		-		-		-		-		-
Commercial business		377		377		152		145		-
Consumer		-		-		-		-		-
Manufactured homes		-		-		-		-		-
Government		-		-		-		-		-

Total:
Residential real estate	$	2,223	$	3,638	$	10	$	1,972	$	33
Home equity	$	437	$	459	$	4	$	403	$	4
Commercial real estate	$	1,565	$	2,159	$	-	$	2,133	$	33
Construction & land development	$	-	$	-	$	-	$	-	$	-
Multifamily	$	802	$	884	$	-	$	472	$	3
Farmland	$	-	$	-	$	-	$	-	$	-
Commercial business	$	2,191	$	2,283	$	152	$	2,112	$	43
Consumer	$	-	$	-	$	-	$	-	$	-
Manufactured homes	$	-	$	-	$	-	$	-	$	-
Government	$	-	$	-	$	-	$	-	$	-

Financing Receivable, Past Due [Table Text Block]

(Dollars in thousands)	30-59 Days Past Due		60-89 Days Past Due		Greater Than 90 Days Past Due		Total Past Due		Current		Total Loans		Recorded Investments Greater than 90 Days Past Due and Accruing
June 30, 2020
Residential real estate	$	4,741	$	1,055	$	3,524	$	9,320	$	275,243	$	284,563	$	343
Home equity		266		207		389		862		45,450		46,312		49
Commercial real estate		1,693		1,344		1,447		4,484		281,638		286,122		1,194
Construction and land development		672		-		-		672		92,310		92,982		-
Multifamily		-		274		170		444		55,626		56,070		-
Farmland		-		-		-		-		221		221		-
Commercial business		426		150		847		1,423		177,440		178,863		318
Consumer		9		-		-		9		513		522		-
Manufactured homes		308		293		-		601		21,917		22,518		-
Government		-		-		-		-		13,729		13,729		-
Total	$	8,115	$	3,323	$	6,377	$	17,815	$	964,087	$	981,902	$	1,904

December 31, 2019
Residential real estate	$	3,486	$	1,332	$	3,724	$	8,542	$	290,791	$	299,333	$	452
Home equity		90		24		388		502		48,679		49,181		19
Commercial real estate		1,461		170		719		2,350		280,758		283,108		61
Construction and land development		143		289		-		432		87,278		87,710		-
Multifamily		140		-		160		300		50,986		51,286		-
Farmland		-		-		-		-		227		227		-
Commercial business		926		583		870		2,379		100,709		103,088		288
Consumer		-		-		-		-		627		627		-
Manufactured homes		63		36		46		145		16,360		16,505		46
Government		-		-		-		-		15,804		15,804		-
Total	$	6,309	$	2,434	$	5,907	$	14,650	$	892,219	$	906,869	$	866

Financing Receivable, Nonaccrual [Table Text Block]

	June 30, 2020		December 31, 2019
Residential real estate	$	5,135	$	4,374
Home equity		464		473
Commercial real estate		253		658
Construction and land development		-		-
Multifamily		541		420
Farmland		-		-
Commercial business		1,015		582
Consumer		-		-
Manufactured homes		-		-
Government		-		-
Total	$	7,408	$	6,507

Schedule of Accretable Yield from Financing Receivables [Table Text Block]

(dollars in thousands)	First Personal
2019	$	90
2020		57

(dollars in thousands)	First Personal
2020		43
2021		21
Total	$	64

(dollars in thousands)	First Federal		Liberty Savings		First Personal		AJSB		Total
2019	$	22	$	42	$	357	$	451	$	872
2020		-		-		285		691	$	975

(dollars in thousands)	First Personal		AJSB		Total
2020	$	162	$	347	$	509
2021		311		694		1,005
2022		300		694		994
2023		68		287		355
Total	$	841	$	2,022	$	2,863

Schedule of Financing Receivables Acquired Discount [Table Text Block]

(dollars in thousands)	First Federal				Liberty Savings				First Personal				AJSB
	Net fair value discount		Accretable period in months		Net fair value discount		Accretable period in months		Net fair value discount		Accretable period in months		Net fair value discount		Accretable period in months
Residential real estate	$	1,062		59	$	1,203		44	$	948		56	$	3,734		52
Home equity		44		29		5		29		51		50		141		32
Commercial real estate		-		-		-		-		208		56		8		9
Construction and land development		-		-		-		-		1		30		-		-
Multifamily		-		-		-		-		11		48		2		48
Consumer		-		-		-		-		146		50		1		5
Commercial business		-		-		-		-		348		24		-		-
Purchased credit impaired loans		-		-		-		-		424		32		-		-
Total	$	1,106			$	1,208			$	2,137			$	3,886