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

Quarterly report pursuant to Section 13 or 15(d)

Note 4 - Loans Receivable (Tables)

Note 4 - Loans Receivable (Tables)

3 Months Ended

Mar. 31, 2021

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

(Dollars in thousands)
	March 31, 2021		December 31, 2020
Loans secured by real estate:
Residential real estate	$	276,728	$	286,048
Home equity		36,222		39,233
Commercial real estate		304,851		298,257
Construction and land development		97,400		93,562
Multifamily		51,933		50,571
Farmland		315		215
Total loans secured by real estate		767,449		767,886
Commercial business		163,896		158,140
Consumer		438		1,025
Manufactured homes		26,260		24,232
Government		9,372		10,142
Subtotal		967,415		961,425
Add (less):
Net deferred loan origination fees and purchase premiums		5,673		5,303
Undisbursed loan funds and clearings		966		(150	)
Loans receivable	$	974,054	$	966,578

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

(Unaudited)	Beginning Balance		Charge-offs			Recoveries		Provisions			Ending Balance
(Dollars in thousands)
The Bancorp's activity in the allowance for loan losses, by loan segment, is summarized below for the three months ended March 31, 2021:

Allowance for loan losses:
Residential real estate	$	2,211	$	(4	)	$	10	$	(41	)	$	2,176
Home equity		276		(1	)		-		34			309
Commercial real estate		5,406		-			-		320			5,726
Construction and land development		1,405		-			-		182			1,587
Multifamily		626		-			-		54			680
Farmland		-		-			-		-			-
Commercial business		2,508		-			8		36			2,552
Consumer		26		(6	)		4		(7	)		17
Manufactured homes		-		-			-		-			-
Government		-		-			-		-			-
Total	$	12,458	$	(11	)	$	22	$	578		$	13,047

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

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		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 March 31, 2021:

Residential real estate	$	92	$	2,084	$	277,465	$	737	$	1,165	$	275,563
Home equity		5		304		36,273		220		132		35,921
Commercial real estate		1,269		4,457		304,851		6,952		151		297,748
Construction and land development		-		1,587		97,400		-		-		97,400
Multifamily		-		680		51,933		90		609		51,234
Farmland		-		-		315		-		-		315
Commercial business		518		2,034		162,375		999		1,163		160,213
Consumer		-		17		438		-		-		438
Manufactured homes		-		-		33,632		-		-		33,632
Government		-		-		9,372		-		-		9,372
Total	$	1,884	$	11,163	$	974,054	$	8,998	$	3,220	$	961,836


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

Residential real estate	$	173	$	2,038	$	285,651	$	868	$	1,297	$	283,486
Home equity		1		275		39,286		216		137		38,933
Commercial real estate		1,089		4,317		298,257		6,190		151		291,916
Construction and land development		-		1,405		93,562		-		-		93,562
Multifamily		-		626		50,571		95		621		49,855
Farmland		-		-		215		-		-		215
Commercial business		512		1,996		156,965		1,086		1,160		154,719
Consumer		-		26		1,025		-		-		1,025
Manufactured homes		-		-		30,904		-		-		30,904
Government		-		-		10,142		-		-		10,142
Total	$	1,775	$	10,683	$	966,578	$	8,455	$	3,366	$	954,757

Financing Receivable Credit Quality Indicators [Table Text Block]

The Bancorp's credit quality indicators are summarized below at March 31, 2021 and December 31, 2020:

	Credit Exposure - Credit Risk Portfolio By Creditworthiness Category
	March 31, 2021
(Dollars in thousands)	1155		6		7		8

Loan Segment	Pass		Pass/monitor		Special mention		Substandard		Total
Residential real estate	$	229,246	$	38,206	$	5,344	$	4,669	$	277,465
Home equity		34,123		908		755		487		36,273
Commercial real estate		228,938		52,578		14,456		8,879		304,851
Construction and land development		79,839		13,939		3,622		-		97,400
Multifamily		45,035		5,013		1,390		495		51,933
Farmland		104		211		-		-		315
Commercial business		140,656		19,487		1,260		972		162,375
Consumer		438		-		-		-		438
Manufactured homes		32,821		750		61		-		33,632
Government		9,372		-		-		-		9,372
Total	$	800,572	$	131,092	$	26,888	$	15,502	$	974,054

	December 31, 2020
(Dollars in thousands)	1155		6		7		8

Loan Segment	Pass		Pass/monitor		Special mention		Substandard		Total
Residential real estate	$	233,920	$	41,805	$	3,539	$	6,387	$	285,651
Home equity		37,097		933		761		495		39,286
Commercial real estate		222,892		55,202		11,983		8,180		298,257
Construction and land development		77,855		12,055		3,652		-		93,562
Multifamily		43,594		5,065		1,408		504		50,571
Farmland		-		215		-		-		215
Commercial business		134,496		20,067		1,341		1,061		156,965
Consumer		1,025		-		-		-		1,025
Manufactured homes		30,173		731		-		-		30,904
Government		10,142		-		-		-		10,142
Total	$	791,194	$	136,073	$	22,684	$	16,627	$	966,578

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, 2021						March 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	$	1,739	$	3,072	$	-	$	1,817	$	22
Home equity		329		341		-		341		4
Commercial real estate		1,170		1,753		-		1,174		12
Construction and land development		-		-		-		-		-
Multifamily		699		781		-		708		5
Farmland		-		-		-		-		-
Commercial business		1,437		1,436		-		1,467		18
Consumer		-		-		-		-		-
Manufactured homes		-		-		-		-		-
Government		-		-		-		-		-

With an allowance recorded:
Residential real estate	$	163	$	163	$	92	$	217	$	5
Home equity		23		23		5		12		-
Commercial real estate		5,933		5,933		1,269		5,549		50
Construction and land development		-		-		-		-		-
Multifamily		-		-		-		-		-
Farmland		-		-		-		-		-
Commercial business		725		725		518		737		11
Consumer		-		-		-		-		-
Manufactured homes		-		-		-		-		-
Government		-		-		-		-		-

Total:
Residential real estate	$	1,902	$	3,235	$	92	$	2,034	$	27
Home equity	$	352	$	364	$	5	$	353	$	4
Commercial real estate	$	7,103	$	7,686	$	1,269	$	6,723	$	62
Construction & land development	$	-	$	-	$	-	$	-	$	-
Multifamily	$	699	$	781	$	-	$	708	$	5
Farmland	$	-	$	-	$	-	$	-	$	-
Commercial business	$	2,162	$	2,161	$	518	$	2,204	$	29
Consumer	$	-	$	-	$	-	$	-	$	-
Manufactured homes	$	-	$	-	$	-	$	-	$	-
Government	$	-	$	-	$	-	$	-	$	-

							For the three months ended
	As of December 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	$	1,895	$	3,228	$	-	$	2,122	$	24
Home equity		352		363		-		390		5
Commercial real estate		1,177		1,761		-		1,520		13
Construction & land development		-		-		-		-		-
Multifamily		716		798		-		792		7
Farmland		-		-		-		-		-
Commercial business		1,497		1,514		-		1,650		17
Consumer		-		-		-		-		-
Manufactured homes		-		-		-		-		-
Government		-		-		-		-		-

With an allowance recorded:
Residential real estate	$	270	$	314	$	173	$	68	$	1
Home equity		1		9		1		8		-
Commercial real estate		5,164		5,164		1,089		18		-
Construction & land development		-		-		-		-		-
Multifamily		-		-		-		-		-
Farmland		-		-		-		-		-
Commercial business		749		749		512		618		3
Consumer		-		-		-		-		-
Manufactured homes		-		-		-		-		-
Government		-		-		-		-		-

Total:
Residential real estate	$	2,165	$	3,542	$	173	$	2,190	$	25
Home equity	$	353	$	372	$	1	$	398	$	5
Commercial real estate	$	6,341	$	6,925	$	1,089	$	1,538	$	13
Construction & land development	$	-	$	-	$	-	$	-	$	-
Multifamily	$	716	$	798	$	-	$	792	$	7
Farmland	$	-	$	-	$	-	$	-	$	-
Commercial business	$	2,246	$	2,263	$	512	$	2,268	$	20
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, 2021
Residential real estate	$	1,610	$	926	$	3,161	$	5,697	$	271,768	$	277,465	$	300
Home equity		266		19		384		669		35,604		36,273		-
Commercial real estate		1,585		453		497		2,535		302,316		304,851		257
Construction and land development		-		-		42		42		97,358		97,400		42
Multifamily		259		90		145		494		51,439		51,933		-
Farmland		-		-		-		-		315		315		-
Commercial business		652		-		282		934		161,441		162,375		-
Consumer		2		-		-		2		436		438		-
Manufactured homes		429		65		-		494		33,138		33,632		-
Government		-		-		-		-		9,372		9,372		-
Total	$	4,803	$	1,553	$	4,511	$	10,867	$	963,187	$	974,054	$	599

December 31, 2020
Residential real estate	$	2,797	$	1,119	$	4,875	$	8,791	$	276,860	$	285,651	$	80
Home equity		616		323		416		1,355		37,931		39,286		29
Commercial real estate		1,172		237		680		2,089		296,168		298,257		437
Construction and land development		471		-		20		491		93,071		93,562		20
Multifamily		94		266		150		510		50,061		50,571		-
Farmland		-		-		-		-		215		215		-
Commercial business		845		96		269		1,210		155,755		156,965		-
Consumer		2		-		-		2		1,023		1,025		-
Manufactured homes		303		173		-		476		30,428		30,904		-
Government		380		-		-		380		9,762		10,142		-
Total	$	6,680	$	2,214	$	6,410	$	15,304	$	951,274	$	966,578	$	566

Financing Receivable, Nonaccrual [Table Text Block]

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

(Dollars in thousands)
	March 31, 2021		December 31, 2020
Residential real estate	$	4,658	$	6,390
Home equity		469		476
Commercial real estate		6,173		5,390
Construction and land development		-		-
Multifamily		495		504
Farmland		-		-
Commercial business		462		1,039
Consumer		-		-
Manufactured homes		-		-
Government		-		-
Total	$	12,257	$	13,799

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

(dollars in thousands)	First Personal
2020	$	29
2021		21

Accretable yield, or income recorded for the three months ended March 31, is as follows:
(dollars in thousands)	First Personal		AJSB		Total
2020	$	115	$	245	$	360
2021		113		192		305

(dollars in thousands)	First Personal		AJ Smith		Total
2021	$	186	$	428	$	614
2022		239		571		810
2023		54		235		289
Total	$	479	$	1,234	$	1,713

Schedule of Financing Receivables Acquired Discount [Table Text Block]

(dollars in thousands)	First Personal				AJSB
	Net fair value discount		Accretable period in months		Net fair value discount		Accretable period in months
Residential real estate	$	948		56	$	3,734		52
Home equity		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	$	2,137			$	3,886