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, 2024

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

(Dollars in thousands)
	March 31, 2024			December 31, 2023
Loans secured by real estate:
Residential real estate	$	480,255		$	484,948
Home equity		49,120			46,599
Commercial real estate		518,166			503,202
Construction and land development		102,446			115,227
Multifamily		220,789			219,917
Total loans secured by real estate		1,370,776			1,369,893
Commercial business		94,521			97,386
Consumer		627			610
Manufactured homes		29,928			30,845
Government		9,074			10,021
Loans receivable		1,504,926			1,508,755
Add (less):
Net deferred loan origination costs		3,435			3,705
Loan clearing funds		(110	)		135
Loans receivable, net of deferred fees and costs	$	1,508,251		$	1,512,595

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 and Accruing		Total Past Due and Accruing		Current		Accruing Loans		Non-accrual Loans		Total Loans Receivable
March 31, 2024
Residential real estate	$	7,394	$	1,528	$	-	$	8,922	$	468,642	$	477,564	$	2,691	$	480,255
Home equity		56		-		-		56		48,610		48,666		454		49,120
Commercial real estate		3,522		260		-		3,782		512,951		516,733		1,433		518,166
Construction and land development		-		745		-		745		101,027		101,772		674		102,446
Multifamily		4,403		-		215		4,618		212,482		217,100		3,689		220,789
Commercial business		272		261		-		533		91,361		91,894		2,627		94,521
Consumer		10		-		-		10		617		627		-		627
Manufactured homes		637		216		-		853		29,040		29,893		35		29,928
Government		-		-		-		-		9,074		9,074		-		9,074
Total	$	16,294	$	3,010	$	215	$	19,519	$	1,473,804	$	1,493,323	$	11,603	$	1,504,926

December 31, 2023
Residential real estate	$	5,857	$	4,362	$	1,131	$	11,350	$	471,905	$	483,255	$	1,693	$	484,948
Home equity		226		18		-		244		45,887		46,131		468		46,599
Commercial real estate		3,168		262		712		4,142		498,227		502,369		833		503,202
Construction and land development		2,523		-		-		2,523		112,704		115,227		-		115,227
Multifamily		5,333		-		-		5,333		210,869		216,202		3,715		219,917
Commercial business		105		29		-		134		94,355		94,489		2,897		97,386
Consumer		12		-		-		12		596		608		2		610
Manufactured homes		634		379		-		1,013		29,832		30,845		-		30,845
Government		-		-		-		-		10,021		10,021		-		10,021
Total	$	17,858	$	5,050	$	1,843	$	24,751	$	1,474,396	$	1,499,147	$	9,608	$	1,508,755

Financing Receivable Credit Quality Indicators [Table Text Block]

March 31, 2024	2024			2023		2022		2021		2020		Prior		Revolving		Revolving Converted to Term		Total
Total Loans Receivable	$	23,122		$	152,353	$	319,536	$	320,187	$	228,248	$	363,713	$	96,026	$	1,741	$	1,504,926
Total current period gross charge-off	$	(18	)	$	-	$	-	$	-	$	-	$	-	$	-	$	-		(18	)

Residential real estate
Pass (1-6)	$	2,533		$	23,626	$	96,588	$	105,482	$	110,843	$	132,325	$	1,880	$	-	$	473,277
Special Mention (7)		-			195		-		626		481		2,489		-		-		3,791
Substandard (8)		-			209		1,405		150		468		955		-		-		3,187
Total	$	2,533		$	24,030	$	97,993	$	106,258	$	111,792	$	135,769	$	1,880	$	-	$	480,255
Current period gross charge-off		-			-		-		-		-		-		-		-		-

Home equity
Pass (1-6)	$	40		$	84	$	111	$	99	$	8	$	2,410	$	45,438	$	287	$	48,477
Special Mention (7)		-			11		-		-		4		95		70		-		180
Substandard (8)		-			-		154		-		-		63		90		156		463
Total	$	40		$	95	$	265	$	99	$	12	$	2,568	$	45,598	$	443	$	49,120
Current period gross charge-off		-			-		-		-		-		-		-		-		-

Commercial real estate
Pass (1-6)	$	5,282		$	63,243	$	129,238	$	91,918	$	55,522	$	159,833	$	2,959	$	-	$	507,995
Special Mention (7)		499			-		66		2,419		1,266		4,488		-		-		8,738
Substandard (8)		-			-		-		-		220		1,073		140		-		1,433
Total	$	5,781		$	63,243	$	129,304	$	94,337	$	57,008	$	165,394	$	3,099	$	-	$	518,166
Current period gross charge-off		-			-		-		-		-		-		-		-		-

*Construction and land development*
Pass (1-6)	$	11,526		$	43,208	$	10,344	$	14,747	$	403	$	4,406	$	10,186	$	1,298	$	96,118
Special Mention (7)		-			-		-		1,563		2,437		-		-		-		4,000
Substandard (8)		-			365		75		1,888		-		-		-		-		2,328
Total	$	11,526		$	43,573	$	10,419	$	18,198	$	2,840	$	4,406	$	10,186	$	1,298	$	102,446
Current period gross charge-off		-			-		-		-		-		-		-		-		-

Multifamily
Pass (1-6)	$	-		$	9,763	$	63,109	$	76,949	$	41,071	$	25,131	$	336	$	-	$	216,359
Substandard (8)		-			-		-		1,666		1,536		1,228		-		-		4,430
Total	$	-		$	9,763	$	63,109	$	78,615	$	42,607	$	26,359	$	336	$	-	$	220,789
Current period gross charge-off		-			-		-		-		-		-		-		-		-

Commercial business
Pass (1-6)	$	1,249		$	10,954	$	12,484	$	8,725	$	4,937	$	16,130	$	34,414	$	-	$	88,893
Special Mention (7)		-			285		1,250		54		-		900		513		-		3,002
Substandard (8)		-			40		1,086		237		202		1,061		-		-		2,626
Total	$	1,249		$	11,279	$	14,820	$	9,016	$	5,139	$	18,091	$	34,927	$	-	$	94,521
Current period gross charge-off		-			-		-		-		-		-		-		-		-

Consumer
Pass (1-6)	$	48		$	370	$	65	$	84	$	3	$	57	$	-	$	-	$	627
Substandard (8)		-			-		-		-		-		-		-		-		-
Total	$	48		$	370	$	65	$	84	$	3	$	57	$	-	$	-	$	627
Current period gross charge-off		(18	)		-		-		-		-		-		-		-		(18	)

Manufactured homes
Pass (1-6)	$	-		$	-	$	1,926	$	12,236	$	8,847	$	6,884	$	-	$	-	$	29,893
Substandard (8)		-			-		-		-		-		35		-		-		35
Total	$	-		$	-	$	1,926	$	12,236	$	8,847	$	6,919	$	-	$	-	$	29,928
Current period gross charge-off		-			-		-		-		-		-		-		-		-

Government
Pass (1-6)	$	1,945		$	-	$	1,635	$	1,344	$	-	$	4,150	$	-	$	-	$	9,074
Total	$	1,945		$	-	$	1,635	$	1,344	$	-	$	4,150	$	-	$	-	$	9,074
Current period gross charge-off		-			-		-		-		-		-		-		-		-

December 31, 2023	2023		2022			2021		2020			2019			Prior			Revolving			Revolving Converted to Term		Total
Total Loans Receivable	$	148,105	$	323,820		$	321,183	$	234,861		$	108,683		$	274,027		$	94,893		$	3,183	$	1,508,755
Total current period gross charge-off	$	-	$	(40	)	$	-	$	(25	)	$	(41	)	$	(909	)	$	(27	)	$	-		(1,042	)

Residential real estate
Pass (1-6)	$	20,740	$	97,671		$	106,778	$	115,001		$	23,873		$	113,987		$	1,716		$	-	$	479,766
Special Mention (7)		405		-			473		173			431			1,602			-			-		3,084
Substandard (8)		-		786			152		471			217			472			-			-		2,098
Total	$	21,145	$	98,457		$	107,403	$	115,645		$	24,521		$	116,061		$	1,716		$	-	$	484,948
Current period gross charge-off		-		(40	)		-		(25	)		(39	)		(893	)		-			-		(997	)

Home equity
Pass (1-6)	$	110	$	114		$	101	$	14		$	61		$	2,051		$	42,801		$	700	$	45,952
Special Mention (7)		-		-			-		-			4			31			70			63		168
Substandard (8)		-		161			-		-			-			67			251			-		479
Total	$	110	$	275		$	101	$	14		$	65		$	2,149		$	43,122		$	763	$	46,599
Current period gross charge-off		-		-			-		-			-			(16	)		(27	)		-		(43	)

Commercial real estate
Pass (1-6)	$	52,880	$	127,607		$	90,108	$	55,236		$	56,255		$	108,489		$	2,649		$	-	$	493,224
Special Mention (7)		-		69			2,429		1,274			1,123			2,397			142			-		7,434
Substandard (8)		-		-			-		230			-			2,314			-			-		2,544
Total	$	52,880	$	127,676		$	92,537	$	56,740		$	57,378		$	113,200		$	2,791		$	-	$	503,202
Current period gross charge-off		-		-			-		-			-			-			-			-		-

*Construction and land development*
Pass (1-6)	$	48,518	$	24,948		$	13,411	$	1,732		$	4,284		$	473		$	12,539		$	2,420	$	108,325
Special Mention (7)		365		76			4,205		2,256			-			-			-			-		6,902
Substandard (8)		-		-			-		-			-			-			-			-		-
Total	$	48,883	$	25,024		$	17,616	$	3,988		$	4,284		$	473		$	12,539		$	2,420	$	115,227
Current period gross charge-off		-		-			-		-			-			-			-			-		-

Multifamily
Pass (1-6)	$	9,333	$	53,493		$	78,122	$	41,773		$	13,156		$	19,609		$	186		$	-	$	215,672
Substandard (8)		-		-			1,666		1,562			-			1,017			-			-		4,245
Total	$	9,333	$	53,493		$	79,788	$	43,335		$	13,156		$	20,626		$	186		$	-	$	219,917
Current period gross charge-off		-		-			-		-			-			-			-			-		-

Commercial business
Pass (1-6)	$	13,110	$	13,774		$	9,327	$	5,705		$	4,105		$	12,905		$	33,954		$	-	$	92,880
Special Mention (7)		373		197			58		-			129			436			417			-		1,610
Substandard (8)		43		1,094			256		214			-			1,121			168			-		2,896
Total	$	13,526	$	15,065		$	9,641	$	5,919		$	4,234		$	14,462		$	34,539		$	-	$	97,386
Current period gross charge-off		-		-			-		-			-			-			-			-		-

Consumer
Pass (1-6)	$	338	$	73		$	108	$	4		$	14		$	71		$	-		$	-	$	608
Substandard (8)		-		-			-		2			-			-			-			-		2
Total	$	338	$	73		$	108	$	6		$	14		$	71		$	-		$	-	$	610
Current period gross charge-off		-		-			-		-			(2	)		-			-			-		(2	)

Manufactured homes
Pass (1-6)	$	-	$	1,942		$	12,556	$	9,214		$	5,031		$	2,102		$	-		$	-	$	30,845
Total	$	-	$	1,942		$	12,556	$	9,214		$	5,031		$	2,102		$	-		$	-	$	30,845
Current period gross charge-off		-		-			-		-			-			-			-			-		-

Government
Pass (1-6)	$	1,890	$	1,815		$	1,433	$	-		$	-		$	4,883		$	-		$	-	$	10,021
Total	$	1,890	$	1,815		$	1,433	$	-		$	-		$	4,883		$	-		$	-	$	10,021
Current period gross charge-off		-		-			-		-			-			-			-			-		-

Financing Receivable, Modified [Table Text Block]

	For the three months ended March 31, 2024
(Dollars in thousands)	Payment Delay		Term Extension		Interest Rate Reduction		Combination Term Extension and Interest Rate Reduction		% of Total Segment Financing Receivables
Residential Real Estate	$	630	$	1,262	$	-	$	-		0.39	%
Total	$	630	$	1,262	$	-	$	-		0.13	%

(Dollars in thousands)

Current

30-59 Days

Past Due

60-89

Days Past

Due

Greater Than 90

Days Past Due

Residential Real Estate

889

1,003

Total

889

1,003

	For the year ended December 31, 2023
(Dollars in thousands)	Payment Delay		Term Extension		Interest Rate Reduction		Combination Term Extension and Interest Rate Reduction		% of Total Segment Financing Receivables
Residential Real Estate	$	-	$	868	$	-	$	-		0.18	%
Total	$	-	$	868	$	-	$	-		0.06	%

(Dollars in thousands)

Current

30-59 Days

Past Due

60-89

Days Past

Due

Greater Than 90

Days Past Due

Residential Real Estate

868

Total

868

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

(dollars in thousands)	Total
2023	$	167
2024		222

(dollars in thousands)	Total
Remainder of 2024	$	508
2025		658
2026		481
2027		311
2028		295
2029 and thereafter		2,730
Total	$	4,983

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

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

The Bancorp's activity in the allowance for credit losses, by loan segment, is summarized below for the three months ended March 31, 2024:

Allowance for credit losses:
Residential real estate	$	3,984	$	-	$	-		$	10	$	23		$	4,017
Home equity		698		-		-			-		39			737
Commercial real estate		7,045		-		-			-		211			7,256
Construction and land development		4,206		-		-			-		(750	)		3,456
Multifamily		933		-		-			-		24			957
Commercial business		1,649		-		-			2		484			2,135
Consumer		7		-		(18	)		1		16			6
Manufactured homes		181		-		-			-		(8	)		173
Government		65		-		-			-		3			68
Total	$	18,768	$	-	$	(18	)	$	13	$	42		$	18,805

(Dollars in thousands)	Beginning Balance		Adoption of ASC 326		PCD Gross-up		Charge-offs			Recoveries		Provisions			Ending Balance

The Bancorp's activity in the allowance for credit losses, by loan segment, is summarized below for the months ended March 31, 2023:

Allowance for credit losses:
Residential real estate	$	3,021	$	1,688	$	31	$	-		$	52	$	(228	)	$	4,564
Home equity		410		99		533		-			-		105			1,147
Commercial real estate		5,784		1,003		443		(12	)		-		(99	)		7,119
Construction and land development		1,253		1,735		-		-			-		241			3,229
Multifamily		1,007		141		-		-			-		(89	)		1,059
Commercial business		1,365		320		5		(75	)		47		433			2,095
Consumer		57		5		17		(19	)		3		1			64
Manufactured homes		-		112		-		-			-		104			216
Government		-		55		-		-			-		20			75
Total	$	12,897	$	5,158	$	1,029	$	(106	)	$	102	$	488		$	19,568

Schedule of Collateral Dependent Loans [Table Text Block]

(Dollars in thousands)	March 31, 2024
	Real Estate		Equipment/Inventory		Accounts Receivable		Other		Total		ACL Allocation
Residential real estate	$	32	$	-	$	-	$	-	$	32	$	30
Commercial real estate		933		-		-		-		933		53
Multifamily		308		-		-		-		308		85
Commercial business		-		1,012		426		148		1,586		738
	$	1,273	$	1,012	$	426	$	148	$	2,859	$	906

(Dollars in thousands)	December 31, 2023
	Real Estate		Equipment/Inventory		Accounts Receivable		Other		Total		ACL Allocation
Residential real estate	$	32	$	-	$	-	$	-	$	32	$	30
Commercial real estate		230		-		-		-		230		53
Multifamily		1,378		-		-		-		1,378		85
Commercial business		-		1,010		494		162		1,666		738
	$	1,640	$	1,010	$	494	$	162	$	3,306	$	906

Financing Receivable, Nonaccrual [Table Text Block]

As of March 31, 2024	Nonaccrual with No Allowance for Credit Loss		Nonaccrual with Allowance for Credit Loss		Nonaccrual Loans in Total		Loans Past Due over 90 Days Still Accruing
Residential real estate	$	1,042	$	1,650	$	2,692	$	-
Home equity		154		299		453		-
Commercial real estate		804		629		1,433		-
Construction and land development		674		-		674		-
Multifamily		3,381		308		3,689		215
Commercial business		1,466		1,161		2,627		-
Consumer		-		-		-		-
Manufactured homes		-		35		35		-
Government		-		-		-		-
Total	$	7,521	$	4,082	$	11,603	$	215

As of December 31, 2023	Nonaccrual with No Allowance for Credit Loss		Nonaccrual with Allowance for Credit Loss		Nonaccrual Loans in Total		Loans Past Due over 90 Days Still Accruing
Residential real estate	$	442	$	1,251	$	1,693	$	1,131
Home equity		161		307		468		-
Commercial real estate		603		230		833		712
Construction and land development		-		-		-		-
Multifamily		2,357		1,358		3,715		-
Commercial business		1,724		1,173		2,897		-
Consumer		-		2		-		-
Manufactured homes		-		-		-		-
Government		-		-		-		-
Total	$	5,287	$	4,321	$	9,608	$	1,843

Schedule of Changes in Liability for Credit Loss on Unfunded Commitments [Table Text Block]

	Three months ended,			Three months ended,
	March 31,			March 31,
(Dollars in thousands)	2024			2023
Balance, beginning of period	$	3,441		$	-
Adoption of ASC 326		-			3,108
Provision/(Release)		(42	)		-
Balance, end of period	$	3,399		$	3,108