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, 2024

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

(Dollars in thousands)
	June 30, 2024			December 31, 2023
Loans secured by real estate:
Residential real estate	$	475,371		$	484,948
Home equity		48,435			46,599
Commercial real estate		529,421			503,202
Construction and land development		88,699			115,227
Multifamily		219,841			219,917
Total loans secured by real estate		1,361,767			1,369,893
Commercial business		98,402			97,386
Consumer		611			610
Manufactured homes		28,721			30,845
Government		14,014			10,021
Loans receivable		1,503,515			1,508,755
Add (less):
Net deferred loan origination costs		3,053			3,705
Loan clearing/(unapplied) funds		(171	)		135
Loans receivable, net of deferred fees and costs..	$	1,506,398		$	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
June 30, 2024
Residential real estate	$	5,796	$	1,004	$	93	$	6,893	$	465,983	$	472,877	$	2,494	$	475,371
Home equity		80		4		-		84		47,901		47,984		451		48,435
Commercial real estate		4,006		189		201		4,396		522,514		526,910		2,511		529,421
Construction and land development		1,038		-		-		1,038		87,661		88,699		-		88,699
Multifamily		4,033		915		-		4,948		211,815		216,763		3,078		219,841
Commercial business		150		116		-		265		95,592		95,857		2,545		98,402
Consumer		-		-		-		-		611		611		-		611
Manufactured homes		247		215		-		462		28,259		28,721		-		28,721
Government		-		-		-		-		14,014		14,014		-		14,014
Total	$	15,349	$	2,443	$	294	$	18,086	$	1,474,350	$	1,492,436	$	11,079	$	1,503,515

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]

June 30, 2024	2024			2023		2022		2021		2020		Prior			Revolving		Revolving Converted to Term		Total
Total Loans Receivable	$	59,052		$	148,865	$	312,351	$	320,044	$	222,859	$	348,625		$	89,980	$	1,741	$	1,503,515
Total current period gross charge-off	$	(44	)	$	-	$	-	$	-	$	-	$	(65	)	$	-	$	-	$	(109	)

Residential real estate
Pass (1-6)	$	6,131		$	26,332	$	94,478	$	103,636	$	108,437	$	127,982		$	2,003	$	-	$	469,000
Special Mention (7)		-			195		368		660		408		1,757			-		-		3,387
Substandard (8)		-			205		891		149		576		1,163			-		-		2,984
Total	$	6,131		$	26,732	$	95,737	$	104,445	$	109,421	$	130,903		$	2,003	$	-	$	475,371
Current period gross charge-off		-			-		-		-		-		-			-		-		-

Home equity
Pass (1-6)	$	161		$	74	$	108	$	116	$	6	$	2,824		$	43,839	$	287	$	47,417
Special Mention (7)		-			10		-		-		4		15			530		-		559
Substandard (8)		-			-		148		-		-		67			89		156		460
Total	$	161		$	84	$	257	$	116	$	10	$	2,906		$	44,458	$	443	$	48,435
Current period gross charge-off		-			-		-		-		-		-			-		-		-

Commercial real estate
Pass (1-6)	$	17,181		$	63,455	$	126,214	$	97,321	$	55,651	$	158,310		$	2,765	$	-	$	520,896
Special Mention (7)		493			-		-		2,406		422		2,492			201		-		6,014
Substandard (8)		-			-		909		-		220		1,256			126		-		2,511
Total	$	17,675		$	63,455	$	127,123	$	99,726	$	56,293	$	162,057		$	3,092	$	-	$	529,421
Current period gross charge-off		-			-		-		-		-		-			-		-		-

*Construction and land development*
Pass (1-6)	$	20,911		$	37,868	$	9,609	$	9,098	$	403	$	8		$	3,115	$	1,298	$	82,309
Special Mention (7)		-			-		-		1,725		2,497		-			-		-		4,222
Substandard (8)		-			365		-		1,803		-		-			-		-		2,168
Total	$	20,911		$	38,232	$	9,609	$	12,626	$	2,900	$	8		$	3,115	$	1,298	$	88,699
Current period gross charge-off		-			-		-		-		-		-			-		-		-

Multifamily
Pass (1-6)	$	-		$	9,710	$	61,191	$	76,783	$	39,251	$	24,351		$	565	$	-	$	211,852
Special Mention (7)		-			-		794		3,012		465		121			-		-		4,392
Substandard (8)		-			-		-		1,358		1,536		703			-		-		3,597
Total	$	-		$	9,710	$	61,985	$	81,153	$	41,252	$	25,175		$	565	$	-	$	219,841
Current period gross charge-off		-			-		-		-		-		(65	)		-		-		(65	)

Commercial business
Pass (1-6)	$	7,050		$	10,366	$	11,920	$	8,154	$	4,529	$	15,111		$	36,318	$	-	$	93,449
Special Mention (7)		-			43		1,038		49		-		850			429		-		2,408
Substandard (8)		-			37		1,080		223		191		1,014			-		-		2,545
Total	$	7,050		$	10,446	$	14,038	$	8,425	$	4,720	$	16,976		$	36,747	$	-	$	98,402
Current period gross charge-off		-			-		-		-		-		-			-		-		-

Consumer
Pass (1-6)	$	238		$	206	$	58	$	71	$	2	$	36		$	-	$	-	$	611
Substandard (8)		-			-		-		-		-		-			-		-		-
Total	$	238		$	206	$	58	$	71	$	2	$	36		$	-	$	-	$	611
Current period gross charge-off		(44	)		-		-		-		-		-			-		-		(44	)

Manufactured homes
Pass (1-6)	$	-		$	-	$	1,909	$	12,137	$	8,261	$	6,414		$	-	$	-	$	28,721
Substandard (8)		-			-		-		-		-		-			-		-		-
Total	$	-		$	-	$	1,909	$	12,137	$	8,261	$	6,414		$	-	$	-	$	28,721
Current period gross charge-off		-			-		-		-		-		-			-		-		-

Government
Pass (1-6)	$	6,885		$	-	$	1,635	$	1,344	$	-	$	4,150		$	-	$	-	$	14,014
Total	$	6,885		$	-	$	1,635	$	1,344	$	-	$	4,150		$	-	$	-	$	14,014
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 June 30, 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	$	132	$	241	$	-	$	-		0.08	%
Total	$	132	$	241	$	-	$	-		0.02	%

(Dollars in thousands)

Current

30-59 Days

Past Due

60-89

Days Past

Due

Greater Than 90

Days Past Due

Residential Real Estate

241

132

Total

241

132

	For the six months ended June 30, 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	$	132	$	1,491	$	-	$	-		0.34	%
Total	$	132	$	1,491	$	-	$	-		0.11	%

(Dollars in thousands)

Current

30-59 Days

Past Due

60-89

Days Past

Due

Greater Than 90

Days Past Due

Residential Real Estate

1,296

195

132

Total

1,296

195

132

	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	$	245
2024		431

(dollars in thousands)	Total
Remainder of 2024	$	337
2025		652
2026		482
2027		311
2028		295
2029 and thereafter		2,696
Total	$	4,773

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

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

Allowance for credit losses:
Residential real estate	$	4,017	$	-		$	10	$	270		$	4,297
Home equity		737		-			-		(10	)		727
Commercial real estate		7,256		-			2		(355	)		6,903
Construction and land development		3,456		-			-		(389	)		3,067
Multifamily		957		(65	)		31		(44	)		879
Commercial business		2,135		-			7		63			2,205
Consumer		6		(26	)		5		20			5
Manufactured homes		173		-			-		(16	)		157
Government		68		-			-		22			90
Total	$	18,805	$	(91	)	$	55	$	(439	)	$	18,330

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

Allowance for credit losses:
Residential real estate	$	5,068	$	-		$	11	$	(225	)	$	4,854
Home equity		643		-			-		37			680
Commercial real estate		7,119		(360	)		1		271			7,031
Construction and land development		3,229		-			-		370			3,599
Multifamily		1,059		-			86		(125	)		1,020
Commercial business		2,095		(368	)		101		222			2,050
Consumer		64		(21	)		3		11			57
Manufactured homes		216		-			-		(50	)		166
Government		75		-			-		(25	)		50
Total	$	19,568	$	(749	)	$	202	$	486		$	19,507

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

Allowance for credit losses:
Residential real estate	$	3,984	$	-		$	20	$	293		$	4,297
Home equity		698		-			-		29			727
Commercial real estate		7,045		-			2		(144	)		6,903
Construction and land development		4,206		-			-		(1,139	)		3,067
Multifamily		933		(65	)		31		(20	)		879
Commercial business		1,649		-			9		548			2,205
Consumer		7		(44	)		6		36			5
Manufactured homes		181		-			-		(24	)		157
Government		65		-			-		25			90
Total	$	18,768	$	(109	)	$	68	$	(397	)	$	18,330

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

Allowance for credit losses:
Residential real estate	$	3,021	$	1,688	$	535	$	-		$	63	$	(453	)	$	4,854
Home equity		410		99		29		-			-		142			680
Commercial real estate		5,784		1,003		443		(372	)		1		172			7,031
Construction and land development		1,253		1,735		-		-			-		611			3,599
Multifamily		1,007		141		-		-			86		(214	)		1,020
Commercial business		1,365		320		5		(443	)		148		655			2,050
Consumer		57		5		17		(40	)		6		12			57
Manufactured homes		-		112		-		-			-		54			166
Government		-		55		-		-			-		(5	)		50
Total	$	12,897	$	5,158	$	1,029	$	(855	)	$	304	$	974		$	19,507

Schedule of Collateral Dependent Loans [Table Text Block]

(Dollars in thousands)	June 30, 2024

	Real Estate		Equipment/Inventory		Accounts Receivable		Other		Total		ACL Allocation
Commercial Business		-		1,375		1,428		159		2,961		1,218
Commercial Real Estate		2,511		-		-		-		2,511		79
Construction Land Development		2,168		-		-		-		2,168		-
Multifamily		3,597		-		-		-		3,597		-
	$	8,276	$	1,375	$	1,428	$	159	$	11,237	$	1,297

(Dollars in thousands)	December 31, 2023

	Real Estate		Equipment/Inventory		Accounts Receivable		Other		Total		ACL Allocation
Residential Real Estate	$	30	$	-	$	-	$	-	$	-	$	30
Commercial Business		-		1,583		1,557		192		3,332		738
Commercial Real Estate		2,541		-		-		-		2,541		53
Multifamily		4,244		-		-		-		4,244		85
	$	6,815	$	1,583	$	1,557	$	192	$	10,117	$	906

Financing Receivable, Nonaccrual [Table Text Block]

As of June 30, 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	$	770	$	1,724		2,494	$	93
Home equity		148		303		451		-
Commercial real estate		1,906		605		2,511		201
Construction and land development		-		-		-		-
Multifamily		3,078		-		3,078		-
Commercial business		1,397		1,148		2,545		-
Consumer		-		-		-		-
Manufactured homes		-		-		-		-
Government		-		-		-		-
Total	$	7,298	$	3,781	$	11,079	$	294

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,
(Dollars in thousands)	June 30, 2024		June 30, 2023
Balance, beginning of period	$	3,399	$	3,108
Adoption of ASC 326		-		-
Provision		515		28
Balance, end of period	$	3,914	$	3,136

	Six months ended,		Six months ended,
(Dollars in thousands)	June 30, 2024		June 30, 2023
Balance, beginning of period	$	3,441	$	3,108
Adoption of ASC 326		-		-
Provision		473		28
Balance, end of period	$	3,914	$	3,136