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

Quarterly report pursuant to Section 13 or 15(d)

Loans Receivable (Tables)

Loans Receivable (Tables)

6 Months Ended

Jun. 30, 2012

Schedule Of Classification Of Loans Receivable [Text Block]

Loans Receivable

	(Dollars in thousands)
	June 30, 2012			December 31, 2011
Loans secured by real estate:
Construction and land development	$	20,618		$	21,143
Residential, including home equity		156,783			154,426
Commercial real estate and other dwelling		177,465			153,715
Total loans secured by real estate		354,866			329,284
Consumer loans		482			472
Commercial business		68,688			63,384
Government and other		7,661			8,643
Subtotal		431,697			401,783
Less:
Net deferred loan origination fees		(282	)		(264	)
Undisbursed loan funds		(59	)		(118	)
Loans receivable	$	431,356		$	401,401

Allowance for Credit Losses on Financing Receivables [Table Text Block]

(Dollars in thousands)	Residential Real Estate, Including Home Equity			Consumer Loans			Commercial Real Estate, Construction & Land Development, and Other Dwellings			Commercial Participations Purchased			Commercial Business Loans			Government		Total

The Bancorp's activity in the allowance for loan losses is summarized below for the six months ended June 30, 2012:

Allowance for loan losses:
Beginning Balance	$	1,161		$	15		$	3,329		$	2,399		$	1,101		$	-	$	8,005
Charge-offs		(205	)		(9	)		(381	)		(484	)		-			-		(1,079	)
Recoveries		-			4			9			-			30			-		43
Provisions		210			22			978			121			(256	)		-		1,075
Ending Balance	$	1,166		$	32		$	3,935		$	2,036		$	875		$	-	$	8,044

The Bancorp's activity in the allowance for loan losses is summarized below for the six months ended June 30, 2011:

Allowance for loan losses:
Beginning Balance	$	994		$	30		$	2,773		$	4,704		$	620		$	-	$	9,121
Charge-offs		(235	)		(4	)		(567	)		(2,417	)		(111	)		-	$	(3,334	)
Recoveries		102			10			174			-			-			-	$	286
Provisions		245			(18	)		682			950			206			-	$	2,065
Ending Balance	$	1,106		$	18		$	3,062		$	3,237		$	715		$	-	$	8,138

The Bancorp's allowance for loan losses impairment evaluation at June 30, 2012:

Ending balance: individually
evaluated for impairment	$	14		$	-		$	1,144		$	-		$	136		$	-	$	1,294

Ending balance: collectively
evaluated for impairment	$	1,152		$	32		$	2,791		$	2,036		$	739		$	-	$	6,750

Ending balance: loans acquired
with deteriorated credit quality	$	-		$	-		$	-		$	-		$	-		$	-	$	-

FINANCING RECEIVABLES
Ending balance	$	156,470		$	481		$	169,749		$	28,334		$	68,661		$	7,661	$	431,356

Ending balance: individually
evaluated for impairment	$	935		$	-		$	10,990		$	6,632		$	1,734		$	-	$	20,291

Ending balance: collectively
evaluated for impairment	$	155,535		$	481		$	158,759		$	21,702		$	66,927		$	7,661	$	411,065

The Bancorp's allowance for loan losses impairment evaluation at December 31, 2011:

Ending balance: individually
evaluated for impairment	$	10		$	-		$	1,043		$	252		$	304		$	-	$	1,609

Ending balance: collectively
evaluated for impairment	$	1,151		$	15		$	2,286		$	2,147		$	797		$	-	$	6,396

Ending balance: loans acquired
with deteriorated credit quality	$	-		$	-		$	-		$	-		$	-		$	-	$	-

FINANCING RECEIVABLES
Ending balance	$	154,135		$	472		$	154,618		$	20,240		$	63,293		$	8,643	$	401,401

Ending balance: individually
evaluated for impairment	$	1,282		$	-		$	11,007		$	7,170		$	2,214		$	-	$	21,673

Ending balance: collectively
evaluated for impairment	$	152,853		$	472		$	143,611		$	13,070		$	61,079		$	8,643	$	379,728

Financing Receivable Credit Quality Indicators [Table Text Block]

The Bancorp's credit quality indicators, are summarized below at June 30, 2012 and December 31, 2011:

	(Dollars in thousands)
	Corporate Credit Exposure - Credit Risk Portfolio By Creditworthiness Category
	Commercial Real Estate, Construction & Land Development, and Other Dwellings				Commercial Participations Purchased				Commercial Business Loans				Government
Loan Grades	2012		2011		2012		2011		2012		2011		2012		2011
2 Moderate risk	$	22	$	25	$	-	$	-	$	6,051	$	4,467	$	-	$	-
3 Acceptable risk		104,445		85,703		11,809		2,387		42,141		37,713		7,661		8,643
4 Pass/monitor		50,835		51,429		3,400		5,903		17,011		17,532		-		-
5 Special mention (watch)		3,348		5,509		6,493		4,780		1,371		978		-		-
6 Substandard		11,099		11,952		6,632		7,170		2,087		2,603		-		-
7 Doubtful		-		-		-		-		-		-		-		-
Total	$	169,749	$	154,618	$	28,334	$	20,240	$	68,661	$	63,293	$	7,661	$	8,643

	(Dollars in thousands)
	Consumer Credit Exposure - Credit Risk Profile Based On Payment Activity
	Residential Real Estate, Including Home Equity				Consumer Loans
	2012		2011		2012		2011
Performing	$	154,477	$	151,375	$	467	$	472
Nonperforming		1,993		2,760		14		-
Total	$	156,470	$	154,135	$	481	$	472

Troubled Debt Restructurings on Financing Receivables [Table Text Block]

The Bancorp's cumulative outstanding troubled debt restructurings are summarized below:

	(Dollars in thousands)
	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment		Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
	June 30, 2012						December 31, 2011
Troubled debt restructurings outstanding at
the end of the periods presented:
Residential real estate, including home equity		9	$	937	$	935		14	$	1,290	$	1,282
Consumer loans		-		-		-		-		-		-
Commercial real estate, construction & land
development, and other dwellings		5		8,902		8,449		3		8,097		7,836
Commercial participations purchased		2		7,975		5,544		2		7,975		5,635
Commercial business loans		-		-		-		-		-		-
Government		-		-		-		-		-		-

	Number of Contracts		Recorded Investment		Number of Contracts		Recorded Investment
	June 30, 2012				December 31, 2011
Troubled debt restructurings that subsequently
defaulted during the periods presented:
Residential real estate, including home equity		-	$	-		-	$	-
Consumer loans		-		-		-		-
Commercial real estate, construction & land
development, and other dwellings		-		-		1		376
Commercial participations purchased		-		-		-		-
Commercial business loans		-		-		-		-
Government		-		-		-		-

Schedule Of Impaired Loans Receivable, Additional Infirmation [Table Text Block]

The Bancorp's individually evaluated impaired loans are summarized below:

	As of June 30, 2012						For the six months ended June 30, 2012
(Dollars in thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:

Residential real estate, including home equity	$	-	$	-	$	-	$	-	$	-
Commercial real estate, construction & land
development, and other dwellings		1,095		1,221		-		708		5
Commercial participations purchased		6,632		12,792		-		3,501		90
Commercial business loans		1,039		1,164		-		645		31
With an allowance recorded:
Residential real estate, including home equity		935		1,213		14		596		6
Commercial real estate, construction & land
development, and other dwellings		9,895		9,914		1,144		9,817		356
Commercial participations purchased		-		-		-		5,406		-
Commercial business loans		695		696		136		1,103		28
Total:
Residential real estate, including home equity	$	935	$	1,213	$	14	$	596	$	6
Commercial real estate, construction & land
development, and other dwellings	$	10,990	$	11,135	$	1,144	$	10,525	$	361
Commercial participations purchased	$	6,632	$	12,792	$	-	$	8,907	$	90
Commercial business loans	$	1,734	$	1,860	$	136	$	1,748	$	59

	As of December 31, 2011						For the six months ended June 30, 2011
(Dollars in thousands)	Recorded investment		Unpaid principal balance		Related allowance		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:

Residential real estate, including home equity	$	-	$	-	$	-	$	-	$	-
Commercial real estate, construction & land
development, and other dwellings		690		880		-		746		12
Commercial participations purchased		2,483		8,158		-		3,473		128
Commercial business loans		793		818		-		177		-
With an allowance recorded:
Residential real estate, including home equity		1,282		1,282		10		-		-
Commercial real estate, construction & land
development, and other dwellings		10,317		12,662		1,043		9,685		358
Commercial participations purchased		4,687		4,687		252		9,718		216
Commercial business loans		1,421		1,421		304		260		9
Total:
Residential real estate, including home equity	$	1,282	$	1,282	$	10	$	-	$	-
Commercial real estate, construction & land
development, and other dwellings	$	11,007	$	13,542	$	1,043	$	10,431	$	370
Commercial participations purchased	$	7,170	$	12,845	$	252	$	13,191	$	344
Commercial business loans	$	2,214	$	2,239	$	304	$	437	$	9

Past Due Financing Receivables [Table Text Block]

The Bancorp's age analysis of past due financing receivables is summarized below:

(Dollars in thousands)
	30-59 Days Past Due		60-89 Days Past Due		Greater Than 90 Days Past Due		Total Past Due		Current		Total Financing Receivables		Recorded Investments Greater than 90 Days and Accruing
June 30, 2012
Residential real estate, including home equity	$	3,246	$	866	$	1,589	$	5,701	$	150,769	$	156,470	$	7
Consumer loans		-		14		-		14		467		481		-
Commercial real estate, construction & land
development, and other dwellings		1,158		495		2,686		4,339		165,410		169,749		-
Commercial participations purchased		-		6		6,633		6,639		21,695		28,334		-
Commercial business loans		528		-		507		1,035		67,626		68,661		-
Government		-		-		-		-		7,661		7,661		-
Total	$	4,932	$	1,381	$	11,415	$	17,728	$	413,628	$	431,356	$	7

December 31, 2011
Residential real estate, including home equity	$	3,413	$	874	$	2,663	$	6,950	$	147,185	$	154,135	$	279
Consumer loans		7		-		-		7		465		472		-
Commercial real estate, construction & land
development, and other dwellings		604		238		1,616		2,458		152,160		154,618		-
Commercial participations purchased		7		-		7,169		7,176		13,064		20,240		-
Commercial business loans		458		323		717		1,498		61,795		63,293		-
Government		-		-		-		-		8,643		8,643		-
Total	$	4,489	$	1,435	$	12,165	$	18,089	$	383,312	$	401,401	$	279

Schedule of Financing Receivables, Non Accrual Status [Table Text Block]

The Bancorp's financing receivables on nonaccrual status are summarized below:

	(Dollars in thousands)
	June 30, 2012		December 31, 2011
Residential real estate, including home equity	$	1,993	$	2,481
Consumer loans		-		-
Commercial real estate, construction & land
development, and other dwellings		2,686		3,433
Commercial participations purchased		6,633		7,170
Commercial business loans		507		926
Government		-		-
Total	$	11,819	$	14,010