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)

9 Months Ended

Sep. 30, 2022

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

(Dollars in thousands)
	September 30, 2022		December 31, 2021
Loans secured by real estate:
Residential real estate	$	471,565	$	260,134
Home equity		37,578		34,612
Commercial real estate		452,852		317,145
Construction and land development		134,301		123,822
Multifamily		258,377		61,194
Total loans secured by real estate		1,354,673		796,907
Commercial business		95,372		115,772
Consumer		827		582
Manufactured homes		35,866		37,887
Government		9,649		8,991
Loans receivable		1,496,387		960,139
Add (less):
Net deferred loan origination costs		5,767		6,810
Undisbursed loan funds and loan clearings		542		(229	)
Loans receivable, net of deferred fees and costs	$	1,502,696	$	966,720

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

Allowance for loan losses:
Residential real estate	$	2,756	$	-		$	8	$	246		$	3,010
Home equity		373		-			-		22			395
Commercial real estate		5,527		-			-		(27	)		5,500
Construction and land development		1,744		-			-		(229	)		1,515
Multifamily		1,128		-			-		108			1,236
Commercial business		1,808		(57	)		50		(100	)		1,701
Consumer		70		(13	)		4		(20	)		41
Manufactured homes		-		-			-		-			-
Government		-		-			-		-			-
Total	$	13,406	$	(70	)	$	62	$	-		$	13,398

Allowance for loan losses:
Residential real estate	$	2,294	$	(28	)	$	21	$	188		$	2,475
Home equity		371		-			-		3			374
Commercial real estate		5,939		-			-		413			6,352
Construction and land development		1,798		-			-		90			1,888
Multifamily		740		-			-		47			787
Commercial business		2,474		-			6		(594	)		1,886
Consumer		23		(4	)		1		(8	)		12
Manufactured homes		-		-			-		-			-
Government		-		-			-		-			-
Total	$	13,639	$	(32	)	$	28	$	139		$	13,774

Allowance for loan losses:
Residential real estate	$	2,480	$	-		$	58	$	472		$	3,010
Home equity		357		-			-		38			395
Commercial real estate		5,515		-			-		(15	)		5,500
Construction and land development		2,119		-			-		(604	)		1,515
Multifamily		848		-			-		388			1,236
Commercial business		2,009		(57	)		88		(339	)		1,701
Consumer		15		(50	)		16		60			41
Manufactured homes		-		-			-		-			-
Government		-		-			-		-			-
Total	$	13,343	$	(107	)	$	162	$	-		$	13,398

Allowance for loan losses:
Residential real estate	$	2,211	$	(32	)	$	46	$	250		$	2,475
Home equity		276		(1	)		-		99			374
Commercial real estate		5,406		-			-		946			6,352
Construction and land development		1,405		-			-		483			1,888
Multifamily		626		-			-		161			787
Commercial business		2,508		-			25		(647	)		1,886
Consumer		26		(21	)		6		1			12
Manufactured homes		-		-			-		-			-
Government		-		-			-		-			-
Total	$	12,458	$	(54	)	$	77	$	1,293		$	13,774

Financing Receivable, Impairment Evaluation [Table Text Block]

Residential real estate	$	27	$	2,983	$	471,565	$	1,545	$	1,778	$	468,242
Home equity		3		392		37,578		116		127		37,335
Commercial real estate		456		5,044		452,852		2,264		2,965		447,623
Construction and land development		-		1,515		134,301		-		-		134,301
Multifamily		-		1,236		258,377		-		2,804		255,573
Commercial business		263		1,438		95,372		397		991		93,984
Consumer		-		41		827		-		19		808
Manufactured homes		-		-		35,866		-		-		35,866
Government		-		-		9,649		-		-		9,649
Total	$	749	$	12,649	$	1,496,387	$	4,322	$	8,684	$	1,483,381

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

Loan Segment	Pass		Special mention		Substandard		Total
Residential real estate	$	464,241	$	1,297	$	6,027	$	471,565
Home equity		36,589		391		598		37,578
Commercial real estate		432,797		11,754		8,301		452,852
Construction and land development		132,129		2,172		-		134,301
Multifamily		253,001		2,608		2,768		258,377
Commercial business		92,213		2,931		228		95,372
Consumer		827		-		-		827
Manufactured homes		35,866		-		-		35,866
Government		9,649		-		-		9,649
Total	$	1,457,312	$	21,153	$	17,922	$	1,496,387

	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 nine months ended				For the three months ended
(unaudited)	As of September 30, 2022						September 30, 2022				September 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	$	3,069	$	4,559	$	-	$	2,596	$	206	$	2,563	$	51
Home equity		222		238		-		216		14		178		1
Commercial real estate		4,384		4,572		-		2,932		196		3,677		(24	)
Construction and land development		-		-		-		430		13		400		13
Multifamily		2,804		3,253		-		2,454		86		2,872		24
Commercial business		1,072		1,181		-		1,137		79		1,048		3
Consumer		19		19		-		15		1		20		1
Manufactured homes		-		-		-		-		-		-		-
Government		-		-		-		-		-		-		-
														-
With an allowance recorded:														-
Residential real estate	$	254	$	278	$	27	$	179	$	5	$	272	$	(4	)
Home equity		21		21		3		21		1		21		-
Commercial real estate		845		845		456		844		-		846		-
Construction and land development		-		-		-		-		-		-		-
Multifamily		-		-		-		-		-		-		-
Commercial business		316		321		263		332		14		311		(2	)
Consumer		-		-		-		-		-		-		-
Manufactured homes		-		-		-		-		-		-		-
Government		-		-		-		-		-		-		-

Total:
Residential real estate	$	3,323	$	4,837	$	27	$	2,775	$	211	$	2,835	$	47
Home equity	$	243	$	259	$	3	$	237	$	15	$	199	$	1
Commercial real estate	$	5,229	$	5,417	$	456	$	3,776	$	196	$	4,523	$	(24	)
Construction & land development	$	-	$	-	$	-	$	430	$	13	$	400	$	13
Multifamily	$	2,804	$	3,253	$	-	$	2,454	$	86	$	2,872	$	24
Commercial business	$	1,388	$	1,502	$	263	$	1,469	$	93	$	1,359	$	1
Consumer	$	19	$	19	$	-	$	15	$	1	$	20	$	1
Manufactured homes	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Government	$	-	$	-	$	-	$	-	$	-	$	-	$	-

							For the nine months ended				For the three months ended
	As of December 31, 2021						September 30, 2021				September 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	$	-	$	1,691	$	83	$	1,565	$	41
Home equity		262		275		-		307		7		273		2
Commercial real estate		765		765		-		1,268		39		1,362		13
Construction & land development		-		-		-		-		-		-		-
Multifamily		556		647		-		647		20		587		9
Commercial business		1,205		1,324		-		1,410		33		1,354		(3	)
Consumer		-		-		-		-		-		-		-
Manufactured homes		-		-		-		-		-		-		-
Government		-		-		-		-		-		-		-

With an allowance recorded:
Residential real estate	$	88	$	88	$	17	$	159	$	1	$	102	$	(4	)
Home equity		22		22		4		17		1		22		1
Commercial real estate		835		835		386		5,700		145		5,852		32
Construction & land development		-		-		-		-		-		-		-
Multifamily		-		-		-		-		-		-		-
Commercial business		392		392		277		698		15		659		(7	)
Consumer		-		-		-		-		-		-		-
Manufactured homes		-		-		-		-		-		-		-
Government		-		-		-		-		-		-		-

Total:
Residential real estate	$	1,771	$	3,105	$	17	$	1,850	$	84	$	1,667	$	37
Home equity	$	284	$	297	$	4	$	324	$	8	$	295	$	3
Commercial real estate	$	1,600	$	1,600	$	386	$	6,968	$	184	$	7,214	$	45
Construction & land development	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Multifamily	$	556	$	647	$	-	$	647	$	20	$	587	$	9
Commercial business	$	1,597	$	1,716	$	277	$	2,108	$	48	$	2,012	$	(10	)
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
September 30, 2022
Residential real estate	$	2,266	$	1,929	$	2,539	$	6,734	$	464,831	$	471,565	$	348
Home equity		193		-		521		714		36,864		37,578		-
Commercial real estate		1,004		162		3,350		4,516		448,336		452,852		1,071
Construction and land development		46		-		-		46		134,255		134,301		-
Multifamily		474		908		288		1,670		256,707		258,377		181
Commercial business		1,662		1,466		532		3,660		91,712		95,372		342
Consumer		-		-		-		-		827		827		-
Manufactured homes		572		313		41		926		34,940		35,866		40
Government		-		-		-		-		9,649		9,649		-
Total	$	6,217	$	4,778	$	7,271	$	18,266	$	1,478,121	$	1,496,387	$	1,982

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)
	September 30, 2022		December 31, 2021
Residential real estate	$	4,965	$	4,651
Home equity		585		623
Commercial real estate		2,807		940
Construction and land development		-		-
Multifamily		367		455
Commercial business		219		387
Consumer		-		-
Manufactured homes		-		-
Government		-		-
Total	$	8,943	$	7,056

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

(dollars in thousands)	Total
2021	$	188
2022		176

(dollars in thousands)	Total
2021	$	793
2022		723

(dollars in thousands)	Total
Remainder 2022	$	164
2023		665
2024		649
2025		507
2026		332
2027 and thereafter		3,464
Total	$	5,781