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)

9 Months Ended

Sep. 30, 2024

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

(Dollars in thousands)
	September 30, 2024		December 31, 2023
Loans secured by real estate:
Residential real estate	$	471,156	$	484,948
Home equity		49,106		46,599
Commercial real estate		539,971		503,202
Construction and land development		87,923		115,227
Multifamily		218,037		219,917
Total loans secured by real estate		1,366,193		1,369,893
Commercial business		97,900		97,386
Consumer		522		610
Manufactured homes		27,462		30,845
Government		12,969		10,021
Loans receivable		1,505,047		1,508,755
Add:
Net deferred loan origination costs		2,606		3,705
Loan clearing funds		589		135
Loans receivable, net of deferred fees and costs	$	1,508,242	$	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		Total Past Due and Accruing		Current		Accruing Loans		Non-accrual Loans		Total Loans Receivable
September 30, 2024
Residential real estate	$	2,738	$	2,374	$	-	$	5,112	$	462,970	$	468,081	$	3,075	$	471,156
Home equity		334		147		-		481		48,169		48,650		456		49,106
Commercial real estate		3,561		-		-		3,561		533,796		537,357		2,614		539,971
Construction and land development		906		-		-		906		86,358		87,264		659		87,923
Multifamily		976		361		-		1,338		213,173		214,511		3,526		218,037
Commercial business		152		93		-		245		94,179		94,424		3,476		97,900
Consumer		-		-		-		-		522		522		-		522
Manufactured homes		402		130		-		532		26,929		27,462		-		27,462
Government		-		-		-		-		12,969		12,969		-		12,969
Total	$	9,069	$	3,106	$	-	$	12,174	$	1,479,066	$	1,491,241	$	13,806	$	1,505,047

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]

September 30, 2024	2024			2023		2022		2021		2020		Prior			Revolving		Revolving Converted to Term		Total
Total Loans Receivable	$	94,784		$	148,003	$	305,771	$	313,365	$	217,069	$	335,469		$	90,585	$	-	$	1,505,047
Total current period gross charge-off	$	(90	)	$	-	$	-	$	-	$	-	$	(66	)	$	-	$	-	$	(156	)

Residential real estate
Pass (1-6)	$	8,444		$	30,259	$	91,896	$	101,282	$	105,770	$	123,283		$	2,515	$	-	$	463,449
Special Mention (7)		-			194		796		876		773		1,903			-		-		4,542
Substandard (8)		-			196		872		267		211		1,619			-		-		3,165
Total	$	8,444		$	30,649	$	93,564	$	102,425	$	106,754	$	126,805		$	2,515	$	-	$	471,156
Current period gross charge-off		(28	)		-		-		-		-		-			-		-		(28	)

Home equity
Pass (1-6)	$	245		$	71	$	106	$	156	$	5	$	3,385		$	44,190	$	-	$	48,158
Special Mention (7)		26			10		-		-		3		14			431		-		484
Substandard (8)		-			-		142		-		-		63			259		-		464
Total	$	271		$	81	$	248	$	156	$	8	$	3,462		$	44,880	$	-	$	49,106
Current period gross charge-off		-			-		-		-		-		-			-		-		-

Commercial real estate
Pass (1-6)	$	34,872		$	62,513	$	124,773	$	96,970	$	54,628	$	153,714		$	2,878	$	-	$	530,348
Special Mention (7)		985			-		681		2,391		673		1,932			25		-		6,687
Substandard (8)		-			-		909		-		218		1,687			122		-		2,936
Total	$	35,857		$	62,513	$	126,363	$	99,361	$	55,519	$	157,333		$	3,025	$	-	$	539,971
Current period gross charge-off		-			-		-		-		-		-			-		-		-

Construction and land development
Pass (1-6)	$	26,343		$	34,562	$	8,019	$	8,305	$	224	$	872		$	2,761	$	-	$	81,086
Special Mention (7)		-			-		-		2,061		2,482		-			-		-		4,543
Substandard (8)		-			1,020		-		1,274		-		-			-		-		2,294
Total	$	26,343		$	35,582	$	8,019	$	11,640	$	2,706	$	872		$	2,761	$	-	$	87,923
Current period gross charge-off		-			-		-		-		-		-			-		-		-

Multifamily
Pass (1-6)	$	4,823		$	8,982	$	60,753	$	75,220	$	37,189	$	21,362		$	636	$	-	$	208,965
Special Mention (7)		-			-		786		3,350		1,220		-			-		-		5,356
Substandard (8)		-			-		451		1,358		1,536		371			-		-		3,716
Total	$	4,823		$	8,982	$	61,990	$	79,928	$	39,945	$	21,733		$	636	$	-	$	218,037
Current period gross charge-off		-			-		-		-		-		(66	)		-		-		(66	)

Commercial business
Pass (1-6)	$	12,337		$	8,742	$	10,166	$	6,549	$	4,045	$	12,316		$	35,256	$	-	$	89,411
Special Mention (7)		-			327		1,028		44		-		2,204			1,410		-		5,013
Substandard (8)		-			943		1,074		203		177		977			102		-		3,476
Total	$	12,337		$	10,012	$	12,268	$	6,796	$	4,222	$	15,497		$	36,768	$	-	$	97,900
Current period gross charge-off		(2	)		-		-		-		-		-			-		-		(2	)

Consumer
Pass (1-6)	$	219		$	184	$	44	$	61	$	1	$	13		$	-	$	-	$	522
Substandard (8)		-			-		-		-		-		-			-		-		-
Total	$	219		$	184	$	44	$	61	$	1	$	13		$	-	$	-	$	522
Current period gross charge-off		(60	)		-		-		-		-		-			-		-		(60	)

Manufactured homes
Pass (1-6)	$	-		$	-	$	1,835	$	11,613	$	7,914	$	5,970		$	-	$	-	$	27,332
Substandard (8)		-			-		-		130		-		-			-		-		130
Total	$	-		$	-	$	1,835	$	11,743	$	7,914	$	5,970		$	-	$	-	$	27,462
Current period gross charge-off		-			-		-		-		-		-			-		-		-

Government
Pass (1-6)	$	6,490		$	-	$	1,440	$	1,255	$	-	$	3,784		$	-	$	-	$	12,969
Total	$	6,490		$	-	$	1,440	$	1,255	$	-	$	3,784		$	-	$	-	$	12,969
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	$	(95	)	$	(150	)	$	-	$	(367	)	$	(50	)	$	(1,882	)	$	(27	)	$	-		(2,571	)

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		-			-			-		-			-			(372	)		-			-		(372	)

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		-			(110	)		-		(342	)		(11	)		(601	)		-			-		(1,064	)

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		(95	)		-			-		-			-			-			-			-		(95	)

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 September 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	$	121	$	332	$	-	$	-		0.10	%
Total	$	121	$	332	$	-	$	-		0.03	%

	For the nine months ended September 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	$	253	$	1,807	$	-	$	-		0.44	%
Total	$	253	$	1,807	$	-	$	-		0.14	%

(Dollars in thousands)

Current

30-59 Days

Past Due

60-89

Days Past

Due

Greater Than 90

Days Past Due

Residential Real Estate

774

194

121

132

Total

774

194

121

132

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

(Dollars in thousands)	Total
2023	$	486
2024		649

(Dollars in thousands)	Total
Remainder of 2024	$	169
2025		644
2026		476
2027		308
2028		292
2029 and thereafter		2,667
Total	$	4,556

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	$	4,297	$	(28	)	$	9	$	170		$	4,448
Home equity		727		-			-		107			834
Commercial real estate		6,903		-			1		(622	)		6,282
Construction and land development		3,067		-			-		(261	)		2,806
Multifamily		879		-			-		650			1,529
Commercial business		2,205		(2	)		222		(179	)		2,246
Consumer		5		(17	)		1		16			5
Manufactured homes		157		-			-		90			247
Government		90		-			-		28			118
Total	$	18,330	$	(47	)	$	233	$	(0	)	$	18,516

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

Allowance for credit losses:
Residential real estate	$	4,854	$	-		$	11	$	(154	)	$	4,711
Home equity		680		-			-		41			721
Commercial real estate		7,031		1			1		426			7,459
Construction and land development		3,599		-			-		(195	)		3,404
Multifamily		1,020		-			45		(115	)		950
Commercial business		2,050		(622	)		18		463			1,909
Consumer		57		(20	)		1		18			56
Manufactured homes		166		-			-		(12	)		154
Government		50		-			-		16			66
Total	$	19,507	$	(641	)	$	76	$	488		$	19,430

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

Allowance for credit losses:
Residential real estate	$	3,984	$	(28	)	$	30	$	462		$	4,448
Home equity		698		-			-		136			834
Commercial real estate		7,045		-			3		(766	)		6,282
Construction and land development		4,206		-			-		(1,400	)		2,806
Multifamily		933		(66	)		31		631			1,529
Commercial business		1,649		(2	)		230		369			2,246
Consumer		7		(60	)		7		51			5
Manufactured homes		181		-			-		66			247
Government		65		-			-		53			118
Total	$	18,768	$	(156	)	$	301	$	(397	)	$	18,516

(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	$	-		$	74	$	(607	)	$	4,711
Home equity		410		99		29		-			-		183			721
Commercial real estate		5,784		1,003		443		(371	)		2		598			7,459
Construction and land development		1,253		1,735		-		-			-		416			3,404
Multifamily		1,007		141		-		-			131		(329	)		950
Commercial business		1,365		320		5		(1,065	)		166		1,118			1,909
Consumer		57		5		17		(60	)		7		30			56
Manufactured homes		-		112		-		-			-		42			154
Government		-		55		-		-			-		11			66
Total	$	12,897	$	5,158	$	1,029	$	(1,496	)	$	380	$	1,462		$	19,430

Schedule of Collateral Dependent Loans [Table Text Block]

(Dollars in thousands)	September 30, 2024

	Real Estate		Equipment/Inventory		Accounts Receivable		Other		Total		ACL Allocation
Commercial Business	$	-	$	2,403	$	1,370	$	109	$	3,881	$	1,180
Commercial Real Estate		2,937		-		-		-		2,937		118
Construction Land Development		2,294		-		-		-		2,294		-
Multifamily		3,716		-		-		-		3,716		505
Residential		2,623		-		-		-		2,623		18
Home Equity		189		-		-		-		189		-
	$	11,759	$	2,403	$	1,370	$	109	$	15,641	$	1,821

(Dollars in thousands)	December 31, 2023

	Real Estate		Equipment/Inventory		Accounts Receivable		Other		Total		ACL Allocation
Residential Real Estate	$	30	$	-	$	-	$	-	$	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	$	10,147	$	906

Financing Receivable, Nonaccrual [Table Text Block]

As of September 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	$	1,238	$	1,837		3,075	$	-
Home equity		142		314		456		-
Commercial real estate		2,019		595		2,614		-
Construction and land development		659		-		659		-
Multifamily		2,168		1,358		3,526		-
Commercial business		2,352		1,124		3,476		-
Consumer		-		-		-		-
Manufactured homes		-		-		-		-
Government		-		-		-		-
Total	$	8,578	$	5,228	$	13,806	$	-

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		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)	September 30, 2024		September 30, 2023
Balance, beginning of period	$	3,914	$	3,136
Adoption of ASC 326		-
Provision		-		(244	)
Balance, end of period	$	3,914	$	2,892

	Nine months ended,		Nine months ended,
(Dollars in thousands)	September 30, 2024		September 30, 2023
Balance, beginning of period	$	3,441	$	-
Adoption of ASC 326		-		3,108
Provision		473		(216	)
Balance, end of period	$	3,914	$	2,892