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)

3 Months Ended

Mar. 31, 2022

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

(Dollars in thousands)
	March 31, 2022		December 31, 2021
Loans secured by real estate:
Residential real estate	$	444,753	$	260,134
Home equity		34,284		34,612
Commercial real estate		408,375		317,145
Construction and land development		150,810		123,822
Multifamily		234,267		61,194
Total loans secured by real estate		1,272,489		796,907
Commercial business		112,396		115,772
Consumer		924		582
Manufactured homes		38,636		37,887
Government		8,176		8,991
Loans receivable		1,432,621		960,139
Add (less):
Net deferred loan origination costs		6,700		6,810
Undisbursed loan funds		407		(229	)
Loans receivable, net of deferred fees and costs	$	1,439,728	$	966,720

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 March 31, 2022:

Allowance for loan losses:
Residential real estate	$	2,480	$	-		$	21	$	(8	)	$	2,493
Home equity		357		-			-		(3	)		354
Commercial real estate		5,515		-			-		15			5,530
Construction and land development		2,119		-			-		16			2,135
Multifamily		848		-			-		41			889
Commercial business		2,009		-			31		(99	)		1,941
Consumer		15		(10	)		2		38			45
Manufactured homes		-		-			-		-			-
Government		-		-			-		-			-
Total	$	13,343	$	(10	)	$	54	$	-		$	13,387

Allowance for loan losses:
Residential real estate	$	2,211	$	(4	)	$	10	$	(41	)	$	2,176
Home equity		276		(1	)		-		34			309
Commercial real estate		5,406		-			-		320			5,726
Construction and land development		1,405		-			-		182			1,587
Multifamily		626		-			-		54			680
Commercial business		2,508		-			8		36			2,552
Consumer		26		(6	)		4		(7	)		17
Manufactured homes		-		-			-		-			-
Government		-		-			-		-			-
Total	$	12,458	$	(11	)	$	22	$	578		$	13,047

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 March 31, 2022:

Residential real estate	$	17	$	2,476	$	444,753	$	753	$	2,908	$	441,092
Home equity		4		350		34,284		135		134		34,015
Commercial real estate		440		5,090		408,375		1,496		2,965		403,914
Construction and land development		-		2,135		150,810		-		804		150,006
Multifamily		-		889		234,267		-		3,302		230,965
Commercial business		259		1,682		112,396		501		1,061		110,834
Consumer		-		45		924		-		21		903
Manufactured homes		-		-		38,636		-		-		38,636
Government		-		-		8,176		-		-		8,176
Total	$	720	$	12,667	$	1,432,621	$	2,885	$	11,195	$	1,418,541

Residential real estate	$	17	$	2,463	$	260,134	$	755	$	1,016	$	258,363
Home equity		4		353		34,612		147		137		34,328
Commercial real estate		386		5,129		317,145		1,600		-		315,545
Construction and land development		-		2,119		123,822		-		-		123,822
Multifamily		-		848		61,194		-		556		60,638
Commercial business		277		1,732		115,772		524		1,073		114,175
Consumer		-		15		582		-		-		582
Manufactured homes		-		-		37,887		-		-		37,887
Government		-		-		8,991		-		-		8,991
Total	$	684	$	12,659	$	960,139	$	3,026	$	2,782	$	954,331

Financing Receivable Credit Quality Indicators [Table Text Block]

	Credit Exposure - Credit Risk Portfolio By Creditworthiness Category
	March 31, 2022
(Dollars in thousands)	1-6		7		8

Loan Segment	Pass		Special mention		Substandard		Total
Residential real estate	$	435,814	$	2,308	$	6,631	$	444,753
Home equity		33,234		415		635		34,284
Commercial real estate		390,533		11,391		6,451		408,375
Construction and land development		146,407		4,403		-		150,810
Multifamily		229,705		1,532		3,030		234,267
Commercial business		108,605		3,395		396		112,396
Consumer		924		-		-		924
Manufactured homes		38,577		59		-		38,636
Government		8,176		-		-		8,176
Total	$	1,391,975	$	23,503	$	17,143	$	1,432,621

	December 31, 2021
(Dollars in thousands)	1-6		7		8

Loan Segment	Pass		Special mention		Substandard		Total
Residential real estate	$	253,472	$	2,940	$	3,722	$	260,134
Home equity		33,565		415		632		34,612
Commercial real estate		301,572		12,011		3,562		317,145
Construction and land development		120,192		3,630		-		123,822
Multifamily		60,657		153		384		61,194
Commercial business		113,470		1,915		387		115,772
Consumer		582		-		-		582
Manufactured homes		37,828		59		-		37,887
Government		8,991		-		-		8,991
Total	$	930,329	$	21,123	$	8,687	$	960,139

Impaired Financing Receivables [Table Text Block]

(Dollars in thousands)							For the three months ended
(unaudited)	As of March 31, 2022						March 31, 2022
	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:
Residential real estate	$	3,575	$	5,070	$	-	$	2,629	$	30
Home equity		248		263		-		255		7
Commercial real estate		3,610		3,722		-		2,188		10
Construction and land development		804		920		-		460		-
Multifamily		3,302		4,241		-		2,036		-
Commercial business		1,247		1,363		-		1,226		15
Consumer		21		21		-		11		-
Manufactured homes		-		-		-		-		-
Government		-		-		-		-		-

With an allowance recorded:
Residential real estate	$	86	$	86	$	17	$	87	$	3
Home equity		21		21		4		22		1
Commercial real estate		851		852		440		843		-
Construction and land development		-		-		-		-		-
Multifamily		-		-		-		-		-
Commercial business		315		377		259		354		16
Consumer		-		-		-		-		-
Manufactured homes		-		-		-		-		-
Government		-		-		-		-		-

Total:
Residential real estate	$	3,661	$	5,156	$	17	$	2,716	$	33
Home equity	$	269	$	284	$	4	$	277	$	8
Commercial real estate	$	4,461	$	4,574	$	440	$	3,031	$	10
Construction & land development	$	804	$	920	$	-	$	460	$	-
Multifamily	$	3,302	$	4,241	$	-	$	2,036	$	-
Commercial business	$	1,562	$	1,740	$	259	$	1,580	$	31
Consumer	$	21	$	21	$	-	$	11	$	-
Manufactured homes	$	-	$	-	$	-	$	-	$	-
Government	$	-	$	-	$	-	$	-	$	-

							For the three months ended
	As of December 31, 2021						March 31, 2021
(Dollars in thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:
Residential real estate	$	1,683	$	3,017	$	-	$	1,817	$	22
Home equity		262		275		-		341		4
Commercial real estate		765		765		-		1,174		12
Construction & land development		-		-		-		-		-
Multifamily		556		647		-		708		5
Commercial business		1,205		1,324		-		1,467		18
Consumer		-		-		-		-		-
Manufactured homes		-		-		-		-		-
Government		-		-		-		-		-

With an allowance recorded:
Residential real estate	$	88	$	88	$	17	$	217	$	5
Home equity		22		22		4		12		-
Commercial real estate		835		835		386		5,549		50
Construction & land development		-		-		-		-		-
Multifamily		-		-		-		-		-
Commercial business		392		392		277		737		11
Consumer		-		-		-		-		-
Manufactured homes		-		-		-		-		-
Government		-		-		-		-		-

Total:
Residential real estate	$	1,771	$	3,105	$	17	$	2,034	$	27
Home equity	$	284	$	297	$	4	$	353	$	4
Commercial real estate	$	1,600	$	1,600	$	386	$	6,723	$	62
Construction & land development	$	-	$	-	$	-	$	-	$	-
Multifamily	$	556	$	647	$	-	$	708	$	5
Commercial business	$	1,597	$	1,716	$	277	$	2,204	$	29
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
March 31, 2022
Residential real estate	$	3,056	$	1,388	$	3,528	$	7,972	$	436,781	$	444,753	$	117
Home equity		37		18		534		589		33,695		34,284		-
Commercial real estate		1,665		805		1,015		3,485		404,890		408,375		163
Construction and land development		2,513		-		-		2,513		148,297		150,810		-
Multifamily		55		18		111		184		234,083		234,267		-
Commercial business		970		-		583		1,553		110,843		112,396		214
Consumer		-		-		-		-		924		924		-
Manufactured homes		316		204		-		520		38,116		38,636		-
Government		-		-		-		-		8,176		8,176		-
Total	$	8,612	$	2,433	$	5,771	$	16,816	$	1,415,805	$	1,432,621	$	494

December 31, 2021
Residential real estate	$	2,507	$	824	$	2,142	$	5,473	$	254,661	$	260,134	$	31
Home equity		169		67		565		801		33,811		34,612		34
Commercial real estate		231		1,960		944		3,135		314,010		317,145		91
Construction and land development		5,148		283		-		5,431		118,391		123,822		-
Multifamily		-		-		109		109		61,085		61,194		-
Commercial business		573		1,594		242		2,409		113,363		115,772		49
Consumer		-		3		-		3		579		582		-
Manufactured homes		633		171		-		804		37,083		37,887		-
Government		-		-		-		-		8,991		8,991		-
Total	$	9,261	$	4,902	$	4,002	$	18,165	$	941,974	$	960,139	$	205

Financing Receivable, Nonaccrual [Table Text Block]

(Dollars in thousands)
	March 31, 2022		December 31, 2021
Residential real estate	$	5,710	$	4,651
Home equity		620		623
Commercial real estate		1,263		940
Construction and land development		-		-
Multifamily		447		455
Commercial business		374		387
Consumer		-		-
Manufactured homes		-		-
Government		-		-
Total	$	8,414	$	7,056

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

(dollars in thousands)	Total
2021	$	305
2022		107

(dollars in thousands)	Total
Remainder 2022	$	719
2023		804
2024		623
2025		605
2026 and thereafter		3,671
Total	$	6,422