Finward Bancorp Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Note 4 - Loans Receivable (Tables)

Note 4 - Loans Receivable (Tables)

12 Months Ended

Dec. 31, 2022

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

(Dollars in thousands)
	December 31, 2022			December 31, 2021
Loans secured by real estate:
Residential real estate	$	484,595		$	260,134
Home equity		38,978			34,612
Commercial real estate		486,431			317,145
Construction and land development		108,926			123,822
Multifamily		251,014			61,194
Total loans secured by real estate		1,369,944			796,907
Commercial business		93,278			115,772
Consumer		918			582
Manufactured homes		34,882			37,887
Government		9,549			8,991
Loans receivable		1,508,571			960,139
Add (less):
Net deferred loan origination costs		5,083			6,810
Undisbursed loan funds		(23	)		(229	)
Loans receivable, net of deferred fees and costs..	$	1,513,631		$	966,720

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

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

The Bancorp's activity in the allowance for loan losses, by loan segment, is summarized below for the twelve months ended December 31, 2022:

Allowance for loan losses:
Residential real estate	$	2,480	$	(29	)	$	53	$	517		$	3,021
Home equity		357		-			-		53			410
Commercial real estate		5,515		(431	)		-		700			5,784
Construction and land development...		2,119		-			-		(866	)		1,253
Multifamily		848		-			-		159			1,007
Commercial business		2,009		(57	)		89		(676	)		1,365
Consumer		15		(91	)		20		113			57
Manufactured homes		-		-			-		-			-
Government		-		-			-		-			-
Total	$	13,343	$	(608	)	$	162	$	-		$	12,897

Allowance for loan losses:
Residential real estate	$	2,211	$	(32	)	$	81	$	220		$	2,480
Home equity		276		(1	)		1		81			357
Commercial real estate		5,406		(530	)		-		639			5,515
Construction and land development		1,405		-			-		714			2,119
Multifamily		626		-			-		222			848
Commercial business		2,508		(158	)		36		(377	)		2,009
Consumer		26		(29	)		8		10			15
Manufactured homes		-		-			-		-			-
Government		-		-			-		-			-
Total	$	12,458	$	(750	)	$	126	$	1,509		$	13,343

Financing Receivable, Impairment Evaluation [Table Text Block]

(Dollars in thousands)	Individually evaluated for impairment reserves		Collectively evaluated for impairment reserves		Loan receivables		Individually evaluated for impairment		Purchased credit impaired individually evaluated for impairment		Collectively evaluated for impairment

The Bancorp's allowance for loan losses impairment evaluation and loan receivables are summarized below at December 31, 2022:

Residential real estate	$	24	$	2,997	$	484,595	$	1,518	$	988	$	482,089
Home equity		3		407		38,978		294		125		38,559
Commercial real estate		13		5,771		486,431		2,392		2,935		481,104
Construction and land development...		-		1,253		108,926		-		-		108,926
Multifamily		-		1,007		251,014		6,739		382		243,893
Commercial business		297		1,068		93,278		1,758		953		90,567
Consumer		-		57		918		-		17		901
Manufactured homes		-		-		34,882		-		-		34,882
Government		-		-		9,549		-		-		9,549
Total	$	337	$	12,560	$	1,508,571	$	12,701	$	5,400	$	1,490,470

Residential real estate	$	17	$	2,463	$	260,134	$	755	$	1,016	$	258,363
Home equity		4		353		34,612		147		137		34,328
Commercial real estate		386		5,129		317,145		1,600		-		315,545
Construction and land development		-		2,119		123,822		-		-		123,822
Multifamily		-		848		61,194		-		556		60,638
Commercial business		277		1,732		115,772		524		1,073		114,175
Consumer		-		15		582		-		-		582
Manufactured homes		-		-		37,887		-		-		37,887
Government		-		-		8,991		-		-		8,991
Total	$	684	$	12,659	$	960,139	$	3,026	$	2,782	$	954,331

Financing Receivable Credit Quality Indicators [Table Text Block]

	Credit Exposure - Credit Risk Portfolio By Creditworthiness Category
	December 31, 2022
(Dollars in thousands)		1-6		7		8

Loan Segment	Pass		Special mention		Substandard		Total
Residential real estate	$	477,222	$	1,338	$	6,035	$	484,595
Home equity		37,981		385		612		38,978
Commercial real estate		474,055		4,955		7,421		486,431
Construction and land development		106,580		2,346		-		108,926
Multifamily		242,091		1,859		7,064		251,014
Commercial business		90,694		703		1,881		93,278
Consumer		918		-		-		918
Manufactured homes		34,882		-		-		34,882
Government		9,549		-		-		9,549
Total	$	1,473,972	$	11,586	$	23,013	$	1,508,571

	December 31, 2021
(Dollars in thousands)		1-6		7		8

Loan Segment	Pass		Special mention		Substandard		Total
Residential real estate	$	253,472	$	2,940	$	3,722	$	260,134
Home equity		33,565		415		632		34,612
Commercial real estate		301,572		12,011		3,562		317,145
Construction and land development		120,192		3,630		-		123,822
Multifamily		60,657		153		384		61,194
Commercial business		113,470		1,915		387		115,772
Consumer		582		-		-		582
Manufactured homes		37,828		59		-		37,887
Government		8,991		-		-		8,991
Total	$	930,329	$	21,123	$	8,687	$	960,139

Impaired Financing Receivables [Table Text Block]

(Dollars in thousands)							For the twelve months ended
(unaudited)	As of December 31, 2022						December 31, 2022
	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:
Residential real estate	$	2,255	$	3,711	$	-	$	2,528	$	202
Home equity		399		416		-		253		12
Commercial real estate		5,314		5,406		-		3,409		205
Construction and land development.		-		-		-		344		-
Multifamily		7,121		7,163		-		3,387		16
Commercial business		2,278		2,392		-		1,365		76
Consumer		17		17		-		15		-
Manufactured homes		-		-		-		-		-
Government		-		-		-		-		-

With an allowance recorded:
Residential real estate	$	251	$	276	$	24	$	194	$	5
Home equity		20		20		3		21		1
Commercial real estate		13		14		13		678		-
Construction and land development.		-		-		-		-		-
Multifamily		-		-		-		-		-
Commercial business		433		561		297		352		13
Consumer		-		-		-		-		-
Manufactured homes		-		-		-		-		-
Government		-		-		-		-		-

Total:
Residential real estate	$	2,506	$	3,987	$	24	$	2,722	$	207
Home equity	$	419	$	436	$	3	$	274	$	13
Commercial real estate	$	5,327	$	5,420	$	13	$	4,087	$	205
Construction & land development	$	-	$	-	$	-	$	344	$	-
Multifamily	$	7,121	$	7,163	$	-	$	3,387	$	16
Commercial business	$	2,711	$	2,953	$	297	$	1,717	$	89
Consumer	$	17	$	17	$	-	$	15	$	-
Manufactured homes	$	-	$	-	$	-	$	-	$	-
Government	$	-	$	-	$	-	$	-	$	-

							For the twelve months ended
	As of December 31, 2021						December 31, 2021
(Dollars in thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:
Residential real estate	$	1,683	$	3,017	$	-	$	1,689	$	113
Home equity		262		275		-		298		12
Commercial real estate		765		765		-		1,167		43
Construction & land development		-		-		-		-		-
Multifamily		556		647		-		629		31
Commercial business		1,205		1,324		-		1,369		52
Consumer		-		-		-		-		-
Manufactured homes		-		-		-		-		-
Government		-		-		-		-		-

With an allowance recorded:
Residential real estate	$	88	$	88	$	17	$	145	$	2
Home equity		22		22		4		18		1
Commercial real estate		835		835		386		4,727		225
Construction & land development		-		-		-		-		-
Multifamily		-		-		-		-		-
Commercial business		392		392		277		637		24
Consumer		-		-		-		-		-
Manufactured homes		-		-		-		-		-
Government		-		-		-		-		-

Total:
Residential real estate	$	1,771	$	3,105	$	17	$	1,834	$	115
Home equity	$	284	$	297	$	4	$	316	$	13
Commercial real estate	$	1,600	$	1,600	$	386	$	5,894	$	268
Construction & land development	$	-	$	-	$	-	$	-	$	-
Multifamily	$	556	$	647	$	-	$	629	$	31
Commercial business	$	1,597	$	1,716	$	277	$	2,006	$	76
Consumer	$	-	$	-	$	-	$	-	$	-
Manufactured homes	$	-	$	-	$	-	$	-	$	-
Government	$	-	$	-	$	-	$	-	$	-

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		Current		Total Loans		Recorded Investments Greater than 90 Days Past Due and Accruing
December 31, 2022
Residential real estate	$	3,758	$	2,520	$	2,309	$	8,587	$	476,008	$	484,595	$	166
Home equity		315		42		162		519		38,459		38,978		-
Commercial real estate		1,399		150		1,817		3,366		483,065		486,431		-
Construction and land development.		2,673		-		-		2,673		106,253		108,926		-
Multifamily		1,724		616		1,004		3,344		247,670		251,014		-
Commercial business		1,775		-		529		2,304		90,974		93,278		-
Consumer		3		-		-		3		915		918		-
Manufactured homes		601		256		82		939		33,943		34,882		82
Government		-		-		-		-		9,549		9,549		-
Total	$	12,248	$	3,584	$	5,903	$	21,735	$	1,486,836	$	1,508,571	$	248

December 31, 2021
Residential real estate	$	2,507	$	824	$	2,142	$	5,473	$	254,661	$	260,134	$	31
Home equity		169		67		565		801		33,811		34,612		34
Commercial real estate		231		1,960		944		3,135		314,010		317,145		91
Construction and land development.		5,148		283		-		5,431		118,391		123,822		-
Multifamily		-		-		109		109		61,085		61,194		-
Commercial business		573		1,594		242		2,409		113,363		115,772		49
Consumer		-		3		-		3		579		582		-
Manufactured homes		633		171		-		804		37,083		37,887		-
Government		-		-		-		-		8,991		8,991		-
Total	$	9,261	$	4,902	$	4,002	$	18,165	$	941,974	$	960,139	$	205

Financing Receivable, Nonaccrual [Table Text Block]

(Dollars in thousands)
	December 31, 2022		December 31, 2021
Residential real estate	$	5,347	$	4,651
Home equity		594		623
Commercial real estate		3,242		940
Construction and land development.		-		-
Multifamily		7,064		455
Commercial business		1,881		387
Consumer		-		-
Manufactured homes		-		-
Government		-		-
Total	$	18,128	$	7,056

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

(dollars in thousands)	Total
2021	$	960
2022		1,010

(dollars in thousands)	Total
2023		541
2024		605
2025		511
2026		342
2027 and thereafter		3,494
Total	$	5,493