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)

6 Months Ended

Jun. 30, 2022

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

(Dollars in thousands)
	June 30, 2022			December 31, 2021
Loans secured by real estate:
Residential real estate	$	459,151		$	260,134
Home equity		35,672			34,612
Commercial real estate		420,735			317,145
Construction and land development		153,422			123,822
Multifamily		248,495			61,194
Total loans secured by real estate		1,317,475			796,907
Commercial business		103,649			115,772
Consumer		1,673			582
Manufactured homes		37,693			37,887
Government		8,081			8,991
Loans receivable		1,468,571			960,139
Add (less):
Net deferred loan origination costs		6,482			6,810
Undisbursed loan funds		(672	)		(229	)
Loans receivable, net of deferred fees and costs..	$	1,474,381		$	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 three months ended June 30, 2022:

Allowance for loan losses:
Residential real estate	$	2,493	$	-		$	29	$	234		$	2,756
Home equity		354		-			-		19			373
Commercial real estate		5,530		-			-		(3	)		5,527
Construction and land development		2,135		-			-		(391	)		1,744
Multifamily		889		-			-		239			1,128
Commercial business		1,941		-			7		(140	)		1,808
Consumer		45		(27	)		10		42			70
Manufactured homes		-		-			-		-			-
Government		-		-			-		-			-
Total	$	13,387	$	(27	)	$	46	$	-		$	13,406

Allowance for loan losses:
Residential real estate	$	2,176	$	-		$	15	$	103		$	2,294
Home equity		309		-			-		62			371
Commercial real estate		5,726		-			-		213			5,939
Construction and land development		1,587		-			-		211			1,798
Multifamily		680		-			-		60			740
Commercial business		2,552		-			11		(89	)		2,474
Consumer		17		(11	)		1		16			23
Manufactured homes		-		-			-		-			-
Government		-		-			-		-			-
Total	$	13,047	$	(11	)	$	27	$	576		$	13,639

Allowance for loan losses:
Residential real estate	$	2,480	$	-		$	50	$	226		$	2,756
Home equity		357		-			-		16			373
Commercial real estate		5,515		-			-		12			5,527
Construction and land development		2,119		-			-		(375	)		1,744
Multifamily		848		-			-		280			1,128
Commercial business		2,009		-			38		(239	)		1,808
Consumer		15		(37	)		12		80			70
Manufactured homes		-		-			-		-			-
Government		-		-			-		-			-
Total	$	13,343	$	(37	)	$	100	$	-		$	13,406

Allowance for loan losses:
Residential real estate	$	2,211	$	(4	)	$	25	$	62		$	2,294
Home equity		276		(1	)		-		96			371
Commercial real estate		5,406		-			-		533			5,939
Construction and land development		1,405		-			-		393			1,798
Multifamily		626		-			-		114			740
Commercial business		2,508		-			19		(53	)		2,474
Consumer		26		(17	)		5		9			23
Manufactured homes		-		-			-		-			-
Government		-		-			-		-			-
Total	$	12,458	$	(22	)	$	49	$	1,154		$	13,639

Financing Receivable, Impairment Evaluation [Table Text Block]

	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 June 30, 2022:

Residential real estate	$	31	$	2,725	$	459,151	$	290	$	2,057	$	456,804
Home equity		3		370		35,672		21		133		35,518
Commercial real estate		446		5,081		420,735		846		2,970		416,919
Construction and land development		-		1,744		153,422		-		800		152,622
Multifamily		-		1,128		248,495		-		2,940		245,555
Commercial business		251		1,557		103,649		306		1,024		102,319
Consumer		-		70		1,673		-		20		1,653
Manufactured homes		-		-		37,693		-		-		37,693
Government		-		-		8,081		-		-		8,081
Total	$	731	$	12,675	$	1,468,571	$	1,463	$	9,944	$	1,457,164

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
	June 30, 2022
(Dollars in thousands)	1-6		7		8

Loan Segment	Pass		Special mention		Substandard		Total
Residential real estate	$	451,077	$	2,055	$	6,019	$	459,151
Home equity		34,648		400		624		35,672
Commercial real estate		403,000		10,890		6,845		420,735
Construction and land development		152,622		800		-		153,422
Multifamily		244,053		1,541		2,901		248,495
Commercial business		100,313		3,057		279		103,649
Consumer		1,673		-		-		1,673
Manufactured homes		37,693		-		-		37,693
Government		8,081		-		-		8,081
Total	$	1,433,160	$	18,743	$	16,668	$	1,468,571

	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 six months ended				For the three months ended
(unaudited)	As of June 30, 2022						June 30, 2022				June 30, 2022
	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:
Residential real estate	$	2,057	$	4,844	$	-	$	2,438	$	155	$	2,816	$	125
Home equity		133		253		-		214		13		191		6
Commercial real estate		2,970		3,236		-		2,448		220		3,290		210
Construction and land development		800		1,023		-		573		-		860		-
Multifamily		2,940		3,269		-		2,337		62		3,228		62
Commercial business		1,024		1,024		-		1,159		76		1,136		61
Consumer		20		20		-		14		-		21		-
Manufactured homes		-		-		-		-		-		-		-
Government		-		-		-		-		-		-		-

With an allowance recorded:
Residential real estate	$	290	$	328	$	31	$	154	$	9	$	188	$	6
Home equity		21		21		3		21		1		21		-
Commercial real estate		846		847		446		844		-		849		-
Construction and land development		-		-		-		-		-		-		-
Multifamily		-		-		-		-		-		-		-
Commercial business		306		369		251		338		16		311		-
Consumer		-		-		-		-		-		-		-
Manufactured homes		-		-		-		-		-		-		-
Government		-		-		-		-		-		-		-

Total:
Residential real estate	$	2,347	$	5,172	$	31	$	2,592	$	164	$	3,004	$	131
Home equity	$	154	$	274	$	3	$	235	$	14	$	212	$	6
Commercial real estate	$	3,816	$	4,083	$	446	$	3,292	$	220	$	4,139	$	210
Construction & land development	$	800	$	1,023	$	-	$	573	$	-	$	860	$	-
Multifamily	$	2,940	$	3,269	$	-	$	2,337	$	62	$	3,228	$	62
Commercial business	$	1,330	$	1,393	$	251	$	1,497	$	92	$	1,447	$	61
Consumer	$	20	$	20	$	-	$	14	$	-	$	21	$	-
Manufactured homes	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Government	$	-	$	-	$	-	$	-	$	-	$	-	$	-

							For the six months ended				For the three months ended
	As of December 31, 2021						June 30, 2021				June 30, 2021
(Dollars in thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:
Residential real estate	$	1,683	$	3,017	$	-	$	1,735	$	42	$	1,817	$	20
Home equity		262		275		-		317		5		341		1
Commercial real estate		765		765		-		1,295		26		1,174		14
Construction & land development		-		-		-		-		-		-		-
Multifamily		556		647		-		670		11		708		6
Commercial business		1,205		1,324		-		1,447		36		1,467		18
Consumer		-		-		-		-		-		-		-
Manufactured homes		-		-		-		-		-		-		-
Government		-		-		-		-		-		-		-

With an allowance recorded:
Residential real estate	$	88	$	88	$	17	$	198	$	5	$	165	$	-
Home equity		22		22		4		15		-		23		-
Commercial real estate		835		835		386		5,655		113		5,901		63
Construction & land development		-		-		-		-		-		-		-
Multifamily		-		-		-		-		-		-		-
Commercial business		392		392		277		719		22		704		11
Consumer		-		-		-		-		-		-		-
Manufactured homes		-		-		-		-		-		-		-
Government		-		-		-		-		-		-		-

Total:
Residential real estate	$	1,771	$	3,105	$	17	$	1,933	$	47	$	1,982	$	20
Home equity	$	284	$	297	$	4	$	332	$	5	$	364	$	1
Commercial real estate	$	1,600	$	1,600	$	386	$	6,950	$	139	$	7,075	$	77
Construction & land development	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Multifamily	$	556	$	647	$	-	$	670	$	11	$	708	$	6
Commercial business	$	1,597	$	1,716	$	277	$	2,166	$	58	$	2,171	$	29
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
June 30, 2022
Residential real estate	$	2,137	$	2,306	$	3,260	$	7,703	$	451,448	$	459,151	$	610
Home equity		114		7		527		648		35,024		35,672		-
Commercial real estate		135		1,734		2,477		4,346		416,389		420,735		517
Construction and land development		337		56		-		393		153,029		153,422		-
Multifamily		24		307		109		440		248,055		248,495		-
Commercial business		1,706		1,205		281		3,192		100,457		103,649		81
Consumer		4		-		-		4		1,669		1,673		-
Manufactured homes		230		334		-		564		37,129		37,693		-
Government		-		-		-		-		8,081		8,081		-
Total	$	4,687	$	5,949	$	6,654	$	17,290	$	1,451,281	$	1,468,571	$	1,208

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)	June 30, 2022		December 31, 2021
Residential real estate	$	4,975	$	4,651
Home equity		610		623
Commercial real estate		2,594		940
Construction and land development		-		-
Multifamily		369		455
Commercial business		265		387
Consumer		-		-
Manufactured homes		-		-
Government		-		-
Total	$	8,813	$	7,056

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

(dollars in thousands)	Total

2021	$	300
2022		440

(dollars in thousands)	Total
2021	$	605
2022		547

(dollars in thousands)	Total
Remainder 2022	$	240
2023		665
2024		649
2025		507
2026 and thereafter		3,565
Total	$	5,958