Finward Bancorp Annual report [Section 13 and 15(d), not S-K Item 405]

Annual report [Section 13 and 15(d), not S-K Item 405]

Note 3 - Loans Receivable (Tables)

Note 3 - Loans Receivable (Tables)

12 Months Ended

Dec. 31, 2024

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

(Dollars in thousands)
	December 31, 2024			December 31, 2023
Loans secured by real estate:
Residential real estate	$	467,293		$	484,948
Home equity		49,758			46,599
Commercial real estate		551,674			503,202
Construction and land development		82,874			115,227
Multifamily		212,455			219,917
Total loans secured by real estate		1,364,054			1,369,893
Commercial business		104,246			97,386
Consumer		551			610
Manufactured homes		26,708			30,845
Government		11,024			10,021
Loans receivable		1,506,583			1,508,755
Add:
Net deferred loan origination costs		2,439			3,705
Loan clearing funds		(46	)		135
Loans receivable, net of deferred fees and costs	$	1,508,976		$	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
December 31, 2024
Residential real estate	$	4,423	$	1,184	$	-	$	5,607	$	457,021	$	462,628	$	4,665	$	467,293
Home equity		1,002		123		-		1,125		48,150		49,275		483		49,758
Commercial real estate		4,556		571		-		5,127		545,267		550,394		1,280		551,674
Construction and land development		2,039		-		-		2,039		80,177		82,216		658		82,874
Multifamily		1,961		359		-		2,320		206,773		209,093		3,362		212,455
Commercial business		493		508		-		1,001		99,955		100,956		3,290		104,246
Consumer		5		-		-		5		546		551		-		551
Manufactured homes		428		54		-		482		26,226		26,708		-		26,708
Government		-		-		-		-		11,024		11,024		-		11,024
Total	$	14,907	$	2,799	$	-	$	17,706	$	1,475,139	$	1,492,845	$	13,738	$	1,506,583

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]

December 31, 2024	2024			2023		2022			2021			2020			Prior			Revolving		Revolving Converted to Term		Total
Total Loans Receivable	$	124,670		$	143,098	$	291,855		$	308,352		$	211,268		$	324,738		$	102,602	$	-	$	1,506,583
Total current period gross charge-off	$	(64	)	$	-	$	(1,010	)	$	(125	)	$	(2	)	$	(1,267	)	$	-	$	-	$	(2,468	)

Residential real estate
Pass (1-6)	$	13,118		$	30,947	$	90,324		$	99,390		$	102,552		$	119,449		$	2,468	$	-	$	458,248
Special Mention (7)		-			371		365			1,064			554			1,937			-		-		4,291
Substandard (8)		-			539		1,161			601			510			1,943			-		-		4,754
Total	$	13,118		$	31,857	$	91,850		$	101,055		$	103,616		$	123,329		$	2,468	$	-	$	467,293
Current period gross charge-off		-			-		-			-			-			(28	)		-		-		(28	)

Home equity
Pass (1-6)	$	193		$	68	$	153		$	110		$	-		$	3,342		$	44,943	$	-	$	48,809
Special Mention (7)		-			132		-			-			3			15			309		-		459
Substandard (8)		26			-		138			-			-			218			108		-		490
Total	$	219		$	200	$	291		$	110		$	3		$	3,575		$	45,360	$	-	$	49,758
Current period gross charge-off		-			-		-			-			-			-			-		-		-

Commercial real estate
Pass (1-6)	$	49,861		$	67,290	$	123,342		$	96,206		$	53,864		$	148,529		$	2,976	$	-	$	542,068
Special Mention (7)		974			-		1,036			2,375			668			2,930			25		-		8,008
Substandard (8)		-			-		-			-			202			1,396			-		-		1,598
Total	$	50,835		$	67,290	$	124,378		$	98,581		$	54,734		$	152,855		$	3,001	$	-	$	551,674
Current period gross charge-off		-			-		-			-			-			-			-		-		-

Construction and land development
Pass (1-6)	$	34,599		$	24,360	$	3,732		$	7,867		$	224		$	820		$	5,312	$	-	$	76,914
Special Mention (7)		-			-		-			1,207			2,468			-			-		-		3,675
Substandard (8)		-			1,018		-			1,267			-			-			-		-		2,285
Total	$	34,599		$	25,378	$	3,732		$	10,341		$	2,692		$	820		$	5,312	$	-	$	82,874
Current period gross charge-off		-			-		-			-			-			-			-		-		-

Multifamily
Pass (1-6)	$	6,398		$	8,923	$	56,771		$	74,716		$	36,075		$	20,066		$	627	$	-	$	203,576
Special Mention (7)		-			-		780			3,332			1,217			-			-		-		5,329
Substandard (8)		-			-		446			1,219			1,516			369			-		-		3,550
Total	$	6,398		$	8,923	$	57,997		$	79,267		$	38,808		$	20,435		$	627	$	-	$	212,455
Current period gross charge-off		-			-		-			(125	)		-			-			-		-		(125	)

Commercial business
Pass (1-6)	$	14,655		$	8,123	$	9,441		$	6,094		$	3,653		$	11,416		$	44,046	$	-	$	97,428
Special Mention (7)		-			25		978			39			-			800			1,686		-		3,528
Substandard (8)		-			1,139		80			171			177			1,621			102		-		3,290
Total	$	14,655		$	9,287	$	10,499		$	6,304		$	3,830		$	13,837		$	45,834	$	-	$	104,246
Current period gross charge-off		-			-		(1,010	)		-			-			(1,239	)		-		-		(2,249	)

Consumer
Pass (1-6)	$	301		$	163	$	34		$	51		$	-		$	2		$	-	$	-	$	551
Substandard (8)		-			-		-			-			-			-			-		-		-
Total	$	301		$	163	$	34		$	51		$	-		$	2		$	-	$	-	$	551
Current period gross charge-off		(64	)		-		-			-			(2	)		-			-		-		(66	)

Manufactured homes
Pass (1-6)	$	-		$	-	$	1,634		$	11,360		$	7,559		$	6,101		$	-	$	-	$	26,654
Substandard (8)		-			-		-			28			26			-			-		-		54
Total	$	-		$	-	$	1,634		$	11,388		$	7,585		$	6,101		$	-	$	-	$	26,708
Current period gross charge-off		-			-		-			-			-			-			-		-		-

Government
Pass (1-6)	$	4,545		$	-	$	1,440		$	1,255		$	-		$	3,784		$	-	$	-	$	11,024
Total	$	4,545		$	-	$	1,440		$	1,255		$	-		$	3,784		$	-	$	-	$	11,024
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 twelve months ended December 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	$	528	$	1,115	$	-	$	-		0.35	%
Home Equity		41		-		-		-		0.01	%
Total	$	569	$	1,115	$	-	$	-		0.11	%

	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	%

	For the year ended December 31, 2024
(Dollars in thousands)	Current		30-59 Days Past Due		60-89 Days Past Due		Greater Than 90 Days Past Due
Residential Real Estate	$	545	$	570	$	-	$	528
Home Equity		-		-		-		41
Total	$	545	$	570	$	-	$	569

	For the year ended December 31, 2023
(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	$	1,078
2024		799

(Dollars in thousands)	Total
2025	$	643
2026		474
2027		305
2028		290
2029		253
2030 and thereafter		2,440
Total	$	4,405

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	$	3,984	$	(28	)	$	44	$	481		$	4,481
Home equity		698		-			-		137			835
Commercial real estate		7,045		-			5		(606	)		6,444
Construction and land development		4,206		-			-		(1,555	)		2,651
Multifamily		933		(125	)		31		164			1,003
Commercial business		1,649		(2,249	)		310		1,475			1,185
Consumer		7		(66	)		22		42			5
Manufactured homes		181		-			-		71			252
Government		65		-			-		(10	)		55
Total	$	18,768	$	(2,468	)	$	412	$	199		$	16,911

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

Allowance for credit losses:
Residential real estate	$	5,244	$	(997	)	$	149	$	(412	)	$	3,984
Home equity		538		(43	)		-		203			698
Commercial real estate		7,230		(372	)		3		184			7,045
Construction and land development		2,988		-			-		1,218			4,206
Multifamily		1,148		-			131		(346	)		933
Commercial business		1,690		(1,064	)		265		758			1,649
Consumer		79		(95	)		15		8			7
Manufactured homes		112		-			-		69			181
Government		55		-			-		10			65
Total	$	19,084	$	(2,571	)	$	563	$	1,692		$	18,768

Schedule of Collateral Dependent Loans [Table Text Block]

(Dollars in thousands)	December 31, 2024

	Real Estate		Equipment/Inventory		Accounts Receivable		Vehicles		Total		ACL Allocation
Residential real estate	$	3,012	$	-	$	-	$	-	$	3,012	$	50
Home equity		219		-		-		-		219		-
Commercial real estate		1,598		-		-		-		1,598		43
Construction and land development		2,285		-		-		-		2,285		-
Multifamily		3,550		-		-		-		3,550		-
Commercial business		712		1,399		1,428		144		3,683		191
	$	11,376	$	1,399	$	1,428	$	144	$	14,347	$	284

(Dollars in thousands)	December 31, 2023

	Real Estate		Equipment/Inventory		Accounts Receivable		Vehicles		Total		ACL Allocation
Residential real estate	$	30	$	-	$	-	$	-	$	30	$	30
Commercial real estate		2,541		-		-		-		2,541		53
Multifamily		4,244		-		-		-		4,244		85
Commercial business		-		1,583		1,557		192		3,332		738
	$	6,815	$	1,583	$	1,557	$	192	$	10,147	$	906

Financing Receivable, Nonaccrual [Table Text Block]

As of December 31, 2024 (Dollars in thousands)	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	$	1,514	$	3,150		4,664	$	-
Home equity		179		304		483		-
Commercial real estate		1,078		202		1,280		-
Construction and land development		659		-		659		-
Multifamily		3,362		-		3,362		-
Commercial business		3,099		191		3,290		-
Total	$	9,891	$	3,847	$	13,738	$	-

As of December 31, 2023 (Dollars in thousands)	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
Multifamily		2,357		1,358		3,715		-
Commercial business		1,724		1,173		2,897		-
Consumer		-		2		2		-
Total	$	5,287	$	4,321	$	9,608	$	1,843

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

	For the year ended			For the year ended
(Dollars in thousands)	December 31, 2024			December 31, 2023
Balance, beginning of period	$	3,441		$	3,108
Provision (Release)		(702	)		333
Balance, end of period	$	2,739		$	3,441