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)

3 Months Ended

Mar. 31, 2020

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

(Dollars in thousands)
	March 31, 2020		December 31, 2019
Loans secured by real estate:
Residential real estate	$	303,872	$	299,569
Home equity		48,690		49,118
Commercial real estate		280,018		283,108
Construction and land development		95,696		87,710
Multifamily		51,897		51,286
Farmland		224		227
Total loans secured by real estate		780,397		771,018
Commercial business		105,337		103,222
Consumer		600		627
Manufactured homes		14,093		13,285
Government		14,944		15,804
Subtotal		915,371		903,956
Less:
Net deferred loan origination fees		3,314		2,934
Undisbursed loan funds		277		(21	)
Loans receivable	$	918,962	$	906,869

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

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

The Bancorp's activity in the allowance for loan losses, by loan segment, is summarized below for the three months ended March 31, 2020:

Allowance for loan losses:
Residential real estate	$	1,812	$	-		$	6	$	10		$	1,828
Home equity		223		-			-		23			246
Commercial real estate		3,773		-			-		(80	)		3,693
Construction and land development		1,098		-			-		125			1,223
Multifamily		529		-			-		33			562
Farmland		-		-			-		-			-
Commercial business		1,504		-			1		396			1,901
Consumer		43		(12	)		3		8			42
Manufactured homes		-		-			-		-			-
Government		17		-			-		(1	)		16
Total	$	8,999	$	(12	)	$	10	$	514		$	9,511

The Bancorp's activity in the allowance for loan losses, by loan segment, is summarized below for the three months ended March 31, 2019:

Allowance for loan losses:
Residential real estate	$	1,715	$	(48	)	$	14	$	(1	)	$	1,680
Home equity		202		-			-		(8	)		194
Commercial real estate		3,335		-			-		150			3,485
Construction and land development		756		-			-		21			777
Multifamily		472		-			-		(38	)		434
Farmland		-		-			-		-			-
Commercial business		1,362		-			6		23			1,391
Consumer		82		(18	)		3		187			254
Manufactured homes		-		-			-		-			-
Government		38		-			-		(17	)		21
Total	$	7,962	$	(66	)	$	23	$	317		$	8,236

Financing Receivable, Impairment Evaluation [Table Text Block]

The Bancorp's impairment analysis is summarized below:
	Ending Balances

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

The Bancorp's allowance for loan losses impairment evaluation and loan receivables are summarized below at March 31, 2020:

Residential real estate	$	5	$	1,823	$	303,935	$	668	$	1,487	$	301,780
Home equity		4		242		48,750		214		145		48,391
Commercial real estate		3		3,690		280,018		1,023		488		278,507
Construction and land development		-		1,223		95,696		-		-		95,696
Multifamily		-		562		51,897		119		663		51,115
Farmland		-		-		224		-		-		224
Commercial business		365		1,536		105,188		1,190		1,154		102,844
Consumer		-		42		600		-		-		600
Manufactured homes		-		-		17,710		-		-		17,710
Government		-		16		14,944		-		-		14,944
Total	$	377	$	9,134	$	918,962	$	3,214	$	3,937	$	911,811


The Bancorp's allowance for loan losses impairment evaluation and loan receivables are summarized below at December 31, 2019:

Residential real estate	$	10	$	1,802	$	299,333	$	642	$	1,581	$	297,110
Home equity		4		219		49,181		221		216		48,744
Commercial real estate		-		3,773		283,108		1,078		487		281,543
Construction and land development		-		1,098		87,710		-		-		87,710
Multifamily		-		529		51,286		129		673		50,484
Farmland		-		-		227		-		-		227
Commercial business		152		1,352		103,088		1,041		1,150		100,897
Consumer		-		43		627		-		-		627
Manufactured homes		-		-		16,505		-		-		16,505
Government		-		17		15,804		-		-		15,804
Total	$	166	$	8,833	$	906,869	$	3,111	$	4,107	$	899,651

Financing Receivable Credit Quality Indicators [Table Text Block]

	Credit Exposure - Credit Risk Portfolio By Creditworthiness Category
	March 31, 2020
(Dollars in thousands)	2		3		4		5		6		7		8

Loan Segment	Moderate		Above average acceptable		Acceptable		Marginally acceptable		Pass/monitor		Special mention		Substandard		Total
Residential real estate	$	1,111	$	122,215	$	107,271	$	13,578	$	51,427	$	3,820	$	4,513	$	303,935
Home equity		153		6,781		39,489		259		825		739		504		48,750
Commercial real estate		-		2,312		72,707		139,436		54,255		7,770		3,538		280,018
Construction and land development...		-		1,002		28,731		51,273		14,690		-		-		95,696
Multifamily		-		888		17,661		27,661		4,904		-		783		51,897
Farmland		-		-		-		-		224		-		-		224
Commercial business		8,319		16,659		18,039		39,222		19,916		1,818		1,215		105,188
Consumer		103		2		495		-		-		-		-		600
Manufactured homes		3,617		2,253		10,832		182		826		-		-		17,710
Government		-		1,775		10,759		2,410		-		-		-		14,944
Total	$	13,303	$	153,887	$	305,984	$	274,021	$	147,067	$	14,147	$	10,553	$	918,962

	December 31, 2019
(Dollars in thousands)	2		3		4		5		6		7		8

Loan Segment	Moderate		Above average acceptable		Acceptable		Marginally acceptable		Pass/monitor		Special mention		Substandard		Total
Residential real estate	$	827	$	119,138	$	104,153	$	13,463	$	53,058	$	4,203	$	4,491	$	299,333
Home equity		100		6,536		40,027		264		934		813		507		49,181
Commercial real estate		-		2,030		82,158		135,058		56,917		5,380		1,565		283,108
Construction and land development		-		719		26,900		45,751		14,340		-		-		87,710
Multifamily		-		903		18,107		26,800		4,674		-		802		51,286
Farmland		-		-		-		-		227		-		-		227
Commercial business		8,312		13,158		19,638		39,016		20,009		2,228		727		103,088
Consumer		90		-		537		-		-		-		-		627
Manufactured homes		3,221		2,413		9,825		184		862		-		-		16,505
Government		-		1,889		11,505		2,410		-		-		-		15,804
Total	$	12,550	$	146,786	$	312,850	$	262,946	$	151,021	$	12,624	$	8,092	$	906,869

Impaired Financing Receivables [Table Text Block]

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

							For the three months ended
	As of March 31, 2020						March 31, 2020
(Dollars in thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:
Residential real estate	$	2,103	$	3,488	$	-	$	2,122	$	24
Home equity		351		371		-		390		5
Commercial real estate		1,493		2,084		-		1,520		13
Construction and land development		-		-		-		-		-
Multifamily		782		864		-		792		7
Farmland		-		-		-		-		-
Commercial business		1,486		1,560		-		1,650		17
Consumer		-		-		-		-		-
Manufactured homes		-		-		-		-		-
Government		-		-		-		-		-

With an allowance recorded:
Residential real estate	$	52	$	52	$	5	$	68	$	1
Home equity		8		8		4		8		-
Commercial real estate		18		18		3		18		-
Construction and land development		-		-		-		-		-
Multifamily		-		-		-		-		-
Farmland		-		-		-		-		-
Commercial business		858		858		365		618		3
Consumer		-		-		-		-		-
Manufactured homes		-		-		-		-		-
Government		-		-		-		-		-

Total:
Residential real estate	$	2,155	$	3,540	$	5	$	2,190	$	25
Home equity	$	359	$	379	$	4	$	398	$	5
Commercial real estate	$	1,511	$	2,102	$	3	$	1,538	$	13
Construction & land development	$	-	$	-	$	-	$	-	$	-
Multifamily	$	782	$	864	$	-	$	792	$	7
Farmland	$	-	$	-	$	-	$	-	$	-
Commercial business	$	2,344	$	2,418	$	365	$	2,268	$	20
Consumer	$	-	$	-	$	-	$	-	$	-
Manufactured homes	$	-	$	-	$	-	$	-	$	-
Government	$	-	$	-	$	-	$	-	$	-

							For the three months ended
	As of December 31, 2019						March 31, 2019
(Dollars in thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:
Residential real estate	$	2,140	$	3,555	$	-	$	1,578	$	14
Home equity		429		451		-		328		2
Commercial real estate		1,547		2,141		-		1,650		19
Construction & land development		-		-		-		-		-
Multifamily		802		884		-		-		-
Farmland		-		-		-		-		-
Commercial business		1,814		1,906		-		1,668		21
Consumer		-		-		-		-		-
Manufactured homes		-		-		-		-		-
Government		-		-		-		-		-

With an allowance recorded:
Residential real estate	$	83	$	83	$	10	$	160	$	2
Home equity		8		8		4		57		1
Commercial real estate		18		18		-		481		-
Construction & land development		-		-		-		-		-
Multifamily		-		-		-		-		-
Farmland		-		-		-		-		-
Commercial business		377		377		152		48		-
Consumer		-		-		-		-		-
Manufactured homes		-		-		-		-		-
Government		-		-		-		-		-

Total:
Residential real estate	$	2,223	$	3,638	$	10	$	1,738	$	16
Home equity	$	437	$	459	$	4	$	385	$	3
Commercial real estate	$	1,565	$	2,159	$	-	$	2,131	$	19
Construction & land development	$	-	$	-	$	-	$	-	$	-
Multifamily	$	802	$	884	$	-	$	-	$	-
Farmland	$	-	$	-	$	-	$	-	$	-
Commercial business	$	2,191	$	2,283	$	152	$	1,716	$	21
Consumer	$	-	$	-	$	-	$	-	$	-
Manufactured homes	$	-	$	-	$	-	$	-	$	-
Government	$	-	$	-	$	-	$	-	$	-

Financing Receivable, Past Due [Table Text Block]

The Bancorp's age analysis of past due loans 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 Loans		Recorded Investments Greater than 90 Days Past Due and Accruing
March 31, 2020
Residential real estate	$	4,708	$	1,413	$	3,267	$	9,388	$	294,547	$	303,935	$	348
Home equity		593		129		374		1,096		47,654		48,750		-
Commercial real estate		5,935		1,363		531		7,829		272,189		280,018		60
Construction and land development.		664		-		-		664		95,032		95,696		-
Multifamily		339		119		106		564		51,333		51,897		75
Farmland		-		-		-		-		224		224		-
Commercial business		1,636		286		1,742		3,664		101,524		105,188		654
Consumer		7		-		-		7		593		600		-
Manufactured homes		152		16		-		168		17,542		17,710		-
Government		-		-		-		-		14,944		14,944		-
Total	$	14,034	$	3,326	$	6,020	$	23,380	$	895,582	$	918,962	$	1,137

December 31, 2019
Residential real estate	$	3,486	$	1,332	$	3,724	$	8,542	$	290,791	$	299,333	$	452
Home equity		90		24		388		502		48,679		49,181		19
Commercial real estate		1,461		170		719		2,350		280,758		283,108		61
Construction and land development		143		289		-		432		87,278		87,710		-
Multifamily		140		-		160		300		50,986		51,286		-
Farmland		-		-		-		-		227		227		-
Commercial business		926		583		870		2,379		100,709		103,088		288
Consumer		-		-		-		-		627		627		-
Manufactured homes		63		36		46		145		16,360		16,505		46
Government		-		-		-		-		15,804		15,804		-
Total	$	6,309	$	2,434	$	5,907	$	14,650	$	892,219	$	906,869	$	866

Financing Receivable, Nonaccrual [Table Text Block]

The Bancorp's loans on nonaccrual status are summarized below:

(Dollars in thousands)
	March 31, 2020		December 31, 2019
Residential real estate	$	4,498	$	4,374
Home equity		470		473
Commercial real estate		472		658
Construction and land development		-		-
Multifamily		410		420
Farmland		-		-
Commercial business		1,088		582
Consumer		-		-
Manufactured homes		-		-
Government		-		-
Total	$	6,938	$	6,507

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

Accretable interest taken from the purchase credit impaired portfolio, or income recorded for the three months ended March 31, 2020, is as follows:

(dollars in thousands)	First Personal
2019	$	62
2020		29

Accretable interest taken from the purchase credit impaired portfolio, or income expected to be recorded in the future is as follows:

(dollars in thousands)	First Personal
2020		68
2021		23
Total	$	91

Accretable yield, or income recorded for the three months ended March 31, is as follows:

(dollars in thousands)	First Federal		Liberty Savings		First Personal		AJSB		Total
2019	$	22	$	42	$	203	$	155	$	422
2020		-		-		115		245	$	361

Accretable yield, or income expected to be recorded in the future is as follows:

(dollars in thousands)	First Federal		Liberyy Savings		First Personal		AJSB		Total
2020	$	-	$	-	$	281	$	585	$	866
2021		-		-		333		780		1,113
2022		-		-		323		780		1,103
2023		-		-		73		322		395
Total	$	-	$	-	$	1,010	$	2,467	$	3,477

Schedule of Financing Receivables Acquired Discount [Table Text Block]

(dollars in thousands)	First Federal				Liberty Savings				First Personal				AJSB
	Net fair value discount		Accretable period in months		Net fair value discount		Accretable period in months		Net fair value discount		Accretable period in months		Net fair value discount		Accretable period in months
Residential real estate	$	1,062		59	$	1,203		44	$	948		56	$	3,734		52
Home equity		44		29		5		29		51		50		141		32
Commercial real estate		-		-		-		-		208		56		8		9
Construction and land development		-		-		-		-		1		30		-		-
Multifamily		-		-		-		-		11		48		2		48
Consumer		-		-		-		-		146		50		1		5
Commercial business		-		-		-		-		348		24		-		-
Purchased credit impaired loans		-		-		-		-		424		32		-		-
Total	$	1,106			$	1,208			$	2,137			$	3,886