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

Quarterly report pursuant to Section 13 or 15(d)

Note 4 - Loans Receivable (Tables)

Note 4 - Loans Receivable (Tables)

9 Months Ended

Sep. 30, 2021

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

(Dollars in thousands)
	September 30, 2021			December 31, 2020
Loans secured by real estate:
Residential real estate	$	268,798		$	286,048
Home equity		35,652			39,233
Commercial real estate		309,905			298,257
Construction and land development		110,289			93,562
Multifamily		56,869			50,571
Farmland		205			215
Total loans secured by real estate		781,718			767,886
Commercial business		125,922			158,140
Consumer		650			1,025
Manufactured homes		32,857			24,232
Government		9,841			10,142
Subtotal		950,988			961,425
Less:
Net deferred loan origination fees		5,579			3,871
Undisbursed loan funds		(215	)		(150	)
Loans receivable	$	956,352		$	965,146

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 September 30, 2021:

Allowance for loan losses:
Residential real estate	$	2,294	$	(28	)	$	21	$	188		$	2,475
Home equity		371		-			-		3			374
Commercial real estate		5,939		-			-		413			6,352
Construction and land development		1,798		-			-		90			1,888
Multifamily		740		-			-		47			787
Farmland		-		-			-		-			-
Commercial business		2,474		-			6		(594	)		1,886
Consumer		23		(4	)		1		(8	)		12
Manufactured homes		-		-			-		-			-
Government		-		-			-		-			-
Total	$	13,639	$	(32	)	$	28	$	139		$	13,774

Allowance for loan losses:
Residential real estate	$	1,708	$	-		$	5	$	170		$	1,883
Home equity		231		-			-		(19	)		212
Commercial real estate		3,712		-			-		675			4,387
Construction and land development		1,201		-			-		(29	)		1,172
Multifamily		609		-			-		(59	)		550
Farmland		-		-			-		-			-
Commercial business		2,375		-			-		113			2,488
Consumer		30		(9	)		3		(2	)		22
Manufactured homes		-		-			-		-			-
Government		-		-			-		-			-
Total	$	9,866	$	(9	)	$	8	$	849		$	10,714

Allowance for loan losses:
Residential real estate	$	2,211	$	(32	)	$	46	$	250		$	2,475
Home equity		276		(1	)		-		99			374
Commercial real estate		5,406		-			-		946			6,352
Construction and land development		1,405		-			-		483			1,888
Multifamily		626		-			-		161			787
Farmland		-		-			-		-			-
Commercial business		2,508		-			25		(647	)		1,886
Consumer		26		(21	)		6		1			12
Manufactured homes		-		-			-		-			-
Government		-		-			-		-			-
Total	$	12,458	$	(54	)	$	77	$	1,293		$	13,774

Allowance for loan losses:
Residential real estate	$	1,812	$	(2	)	$	15	$	58		$	1,883
Home equity		223		-			-		(11	)		212
Commercial real estate		3,773		(80	)		-		694			4,387
Construction and land development		1,098		(17	)		-		91			1,172
Multifamily		529		-			-		21			550
Farmland		-		-			-		-			-
Commercial business		1,504		(78	)		17		1,045			2,488
Consumer		43		(22	)		11		(10	)		22
Manufactured homes		-		-			-		-			-
Government		17		-			-		(17	)		-
Total	$	8,999	$	(199	)	$	43	$	1,871		$	10,714

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 September 30, 2021:

Residential real estate	$	12	$	2,463	$	268,798	$	538	$	1,063	$	267,197
Home equity		4		370		35,652		156		141		35,355
Commercial real estate		1,579		4,773		309,905		7,021		-		302,884
Construction and land development		-		1,888		110,289		-		-		110,289
Multifamily		-		787		56,869		-		577		56,292
Farmland		-		-		205		-		-		205
Commercial business		309		1,577		125,922		830		1,103		123,989
Consumer		-		12		650		-		-		650
Manufactured homes		-		-		32,857		-		-		32,857
Government		-		-		9,841		-		-		9,841
Total	$	1,904	$	11,870	$	950,988	$	8,545	$	2,884	$	939,559

Residential real estate	$	173	$	2,038	$	286,048	$	868	$	1,297	$	283,883
Home equity		1		275		39,233		216		137		38,880
Commercial real estate		1,089		4,317		298,257		6,190		151		291,916
Construction and land development		-		1,405		93,562		-		-		93,562
Multifamily		-		626		50,571		95		621		49,855
Farmland		-		-		215		-		-		215
Commercial business		512		1,996		158,140		1,086		1,160		155,894
Consumer		-		26		1,025		-		-		1,025
Manufactured homes		-		-		24,232		-		-		24,232
Government		-		-		10,142		-		-		10,142
Total	$	1,775	$	10,683	$	961,425	$	8,455	$	3,366	$	949,604

Financing Receivable Credit Quality Indicators [Table Text Block]

	Credit Exposure - Credit Risk Portfolio By Creditworthiness Category
	September 30, 2021
(Dollars in thousands)		1-5		6		7		8

Loan Segment	Pass		Pass/monitor		Special mention		Substandard		Total
Residential real estate	$	227,505	$	34,285	$	3,282	$	3,726	$	268,798
Home equity		33,844		728		616		464		35,652
Commercial real estate		230,839		57,388		13,615		8,063		309,905
Construction and land development		88,574		18,072		3,643		-		110,289
Multifamily		50,652		5,570		253		394		56,869
Farmland		-		205		-		-		205
Commercial business		103,791		20,013		1,407		711		125,922
Consumer		650		-		-		-		650
Manufactured homes		32,063		734		60		-		32,857
Government		9,841		-		-		-		9,841
Total	$	777,759	$	136,995	$	22,876	$	13,358	$	950,988

	December 31, 2020
(Dollars in thousands)		1-5		6		7		8

Loan Segment	Pass		Pass/monitor		Special mention		Substandard		Total
Residential real estate	$	234,317	$	41,805	$	3,539	$	6,387	$	286,048
Home equity		37,044		933		761		495		39,233
Commercial real estate		222,892		55,202		11,983		8,180		298,257
Construction and land development		77,855		12,055		3,652		-		93,562
Multifamily		43,594		5,065		1,408		504		50,571
Farmland		-		215		-		-		215
Commercial business		135,671		20,067		1,341		1,061		158,140
Consumer		1,025		-		-		-		1,025
Manufactured homes		23,501		731		-		-		24,232
Government		10,142		-		-		-		10,142
Total	$	786,041	$	136,073	$	22,684	$	16,627	$	961,425

Impaired Financing Receivables [Table Text Block]

							For the nine months ended				For the three months ended
	As of September 30, 2021						September 30, 2021				September 30, 2021
(Dollars in thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:
Residential real estate	$	1,558	$	2,917	$	-	$	1,691	$	83	$	1,565	$	41
Home equity		275		288		-		307		7		273		2
Commercial real estate		1,185		1,185		-		1,268		39		1,362		13
Construction and land development		-		-		-		-		-		-		-
Multifamily		577		665		-		647		20		587		9
Farmland		-		-		-		-		-		-		-
Commercial business		1,299		1,435		-		1,410		33		1,354		(3	)
Consumer		-		-		-		-		-		-		-
Manufactured homes		-		-		-		-		-		-		-
Government		-		-		-		-		-		-		-

With an allowance recorded:
Residential real estate	$	43	$	43	$	12	$	159	$	1	$	102	$	(4	)
Home equity		22		22		4		17		1		22		1
Commercial real estate		5,836		5,836		1,579		5,700		145		5,852		32
Construction and land development		-		-		-		-		-		-		-
Multifamily		-		-		-		-		-		-		-
Farmland		-		-		-		-		-		-		-
Commercial business		634		634		309		698		15		659		(7	)
Consumer		-		-		-		-		-		-		-
Manufactured homes		-		-		-		-		-		-		-
Government		-		-		-		-		-		-		-

Total:
Residential real estate	$	1,601	$	2,960	$	12	$	1,850	$	84	$	1,667	$	37
Home equity	$	297	$	310	$	4	$	324	$	8	$	295	$	3
Commercial real estate	$	7,021	$	7,021	$	1,579	$	6,968	$	184	$	7,214	$	45
Construction & land development	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Multifamily	$	577	$	665	$	-	$	647	$	20	$	587	$	9
Farmland	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Commercial business	$	1,933	$	2,069	$	309	$	2,108	$	48	$	2,012	$	(10	)
Consumer	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Manufactured homes	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Government	$	-	$	-	$	-	$	-	$	-	$	-	$	-

							For the nine months ended				For the three months ended
	As of December 31, 2020						September 30, 2020				September 30, 2020
(Dollars in thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:
Residential real estate	$	1,895	$	3,228	$	-	$	2,061	$	81	$	2,000	$	32
Home equity		352		363		-		378		13		366		4
Commercial real estate		1,177		1,761		-		1,338		65		1,155		18
Construction & land development		-		-		-		-		-		-		-
Multifamily		716		798		-		775		23		758		9
Farmland		-		-		-		-		-		-		-
Commercial business		1,497		1,514		-		1,614		61		1,578		21
Consumer		-		-		-		-		-		-		-
Manufactured homes		-		-		-		-		-		-		-
Government		-		-		-		-		-		-		-

With an allowance recorded:
Residential real estate	$	270	$	314	$	173	$	151	$	4	$	234	$	3
Home equity		1		9		1		4		-		1		-
Commercial real estate		5,164		5,164		1,089		1,346		1		2,673		-
Construction & land development		-		-		-		-		-		-		-
Multifamily		-		-		-		-		-		-		-
Farmland		-		-		-		-		-		-		-
Commercial business		749		749		512		736		19		855		-
Consumer		-		-		-		-		-		-		-
Manufactured homes		-		-		-		-		-		-		-
Government		-		-		-		-		-		-		-

Total:
Residential real estate	$	2,165	$	3,542	$	173	$	2,212	$	85	$	2,234	$	35
Home equity	$	353	$	372	$	1	$	382	$	13	$	367	$	4
Commercial real estate	$	6,341	$	6,925	$	1,089	$	2,684	$	66	$	3,828	$	18
Construction & land development	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Multifamily	$	716	$	798	$	-	$	775	$	23	$	758	$	9
Farmland	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Commercial business	$	2,246	$	2,263	$	512	$	2,350	$	80	$	2,433	$	21
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
September 30, 2021
Residential real estate	$	2,057	$	242	$	2,422	$	4,721	$	264,077	$	268,798	$	186
Home equity		332		203		448		983		34,669		35,652		30
Commercial real estate		1,712		931		1,159		3,802		306,103		309,905		55
Construction and land development		-		-		-		-		110,289		110,289		-
Multifamily		77		273		115		465		56,404		56,869		-
Farmland		-		-		-		-		205		205		-
Commercial business		285		250		2,350		2,885		123,037		125,922		2,245
Consumer		4		-		-		4		646		650		-
Manufactured homes		347		241		-		588		32,269		32,857		-
Government		-		-		-		-		9,841		9,841		-
Total	$	4,814	$	2,140	$	6,494	$	13,448	$	937,540	$	950,988	$	2,516

December 31, 2020
Residential real estate	$	2,797	$	1,119	$	4,875	$	8,791	$	277,257	$	286,048	$	80
Home equity		616		323		416		1,355		37,878		39,233		29
Commercial real estate		1,172		237		680		2,089		296,168		298,257		437
Construction and land development		471		-		20		491		93,071		93,562		20
Multifamily		94		266		150		510		50,061		50,571		-
Farmland		-		-		-		-		215		215		-
Commercial business		845		96		269		1,210		156,930		158,140		-
Consumer		2		-		-		2		1,023		1,025		-
Manufactured homes		303		173		-		476		23,756		24,232		-
Government		380		-		-		380		9,762		10,142		-
Total	$	6,680	$	2,214	$	6,410	$	15,304	$	946,121	$	961,425	$	566

Financing Receivable, Nonaccrual [Table Text Block]

(Dollars in thousands)
	September 30, 2021		December 31, 2020
Residential real estate	$	3,575	$	6,390
Home equity		448		476
Commercial real estate		6,263		5,390
Construction and land development		-		-
Multifamily		394		504
Farmland		-		-
Commercial business		347		1,039
Consumer		-		-
Manufactured homes		-		-
Government		-		-
Total	$	11,027	$	13,799

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

(dollars in thousands)	Total
2020	$	78
2021		21

(dollars in thousands)	Total
2020	$	21
2021		-

(dollars in thousands)	Total
2020	$	1,352
2021		793

(dollars in thousands)	Total
2020	$	377
2021		188

(dollars in thousands)	Total
2021	$	196
2022		758
2023		271

Total	$	1,225