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

Quarterly report pursuant to Section 13 or 15(d)

Note 7 - Loans Receivable (Tables)

Note 7 - Loans Receivable (Tables)

3 Months Ended

Mar. 31, 2023

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

(Dollars in thousands)
	March 31, 2023			December 31, 2022
Loans secured by real estate:
Residential real estate	$	476,899		$	484,595
Home equity		39,877			38,978
Commercial real estate		484,564			486,431
Construction and land development		116,308			108,926
Multifamily		252,633			251,014
Total loans secured by real estate		1,370,281			1,369,944
Commercial business		100,652			93,278
Consumer		723			918
Manufactured homes		34,027			34,882
Government		10,646			9,549
Loans receivable		1,516,329			1,508,571
Add (less):
Net deferred loan origination costs		4,829			5,083
Undisbursed loan funds		(69	)		(23	)
Loans receivable, net of deferred fees and costs	$	1,521,089		$	1,513,631

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 and Accruing		Total Past Due and Accruing		Current		Accruing Loans		Non-accrual Loans		Total Loans Receivable
March 31, 2023
Residential real estate	$	6,602	$	434	$	489	$	7,525	$	464,246	$	471,771	$	5,128	$	476,899
Home equity		73		-		65		138		38,366		38,504		1,373		39,877
Commercial real estate		751		-		-		751		480,831		481,582		2,982		484,564
Construction and land development		358		542		-		900		115,408		116,308		-		116,308
Multifamily		760		-		-		760		244,523		245,283		7,350		252,633
Commercial business		441		795		-		1,236		96,776		98,012		2,640		100,652
Consumer		-		-		-		-		723		723		-		723
Manufactured homes		932		201		324		1,457		32,570		34,027		-		34,027
Government		-		-		-		-		10,646		10,646		-		10,646
Total	$	9,917	$	1,972	$	878	$	12,767	$	1,484,089	$	1,496,856	$	19,473	$	1,516,329

December 31, 2022
Residential real estate	$	3,758	$	2,520	$	166	$	6,444	$	472,804	$	479,248	$	5,347	$	484,595
Home equity		315		42		-		357		38,027		38,384		594		38,978
Commercial real estate		1,399		150		-		1,549		481,640		483,189		3,242		486,431
Construction and land development		2,673		-		-		2,673		106,253		108,926		-		108,926
Multifamily		1,724		616		-		2,340		241,610		243,950		7,064		251,014
Commercial business		1,775		-		-		1,775		89,622		91,397		1,881		93,278
Consumer		3		-		-		3		915		918		-		918
Manufactured homes		601		256		82		939		33,943		34,882		-		34,882
Government		-		-		-		-		9,549		9,549		-		9,549
Total	$	12,248	$	3,584	$	248	$	16,080	$	1,474,363	$	1,490,443	$	18,128	$	1,508,571

Financing Receivable Credit Quality Indicators [Table Text Block]

March 31, 2023	2023			2022		2021		2020			2019		Prior			Revolving		Revolving Converted to Term		Total
Total Loans Receivable	$	33,681		$	330,215	$	351,588	$	263,691		$	130,476	$	323,663		$	82,874	$	141	$	1,516,329
Total Current period gross writeoff	$	(19	)	$	-	$	-	$	(75	)	$	-	$	(12	)	$	-	$	-	$	(106	)

Residential real estate
Pass (1-6)	$	4,775		$	79,050	$	101,214	$	124,391		$	26,094	$	131,775		$	2,729	$	-	$	470,028
Special Mention (7)		-			-		-		-			43		703			-		-		746
Substandard (8)		-			358		261		499			376		4,631			-		-		6,125
Total	$	4,775		$	79,408	$	101,475	$	124,890		$	26,513	$	137,109		$	2,729	$	-	$	476,899
Current period gross writeoff		-			-		-		-			-		-			-		-		-

Home equity
Pass (1-6)	$	-		$	-	$	-	$	-		$	-	$	1,693		$	36,213	$	141	$	38,047
Special Mention (7)		-			-		-		-			-		128			284		-		412
Substandard (8)		-			-		-		-			185		916			317		-		1,418
Total	$	-		$	-	$	-	$	-		$	185	$	2,737		$	36,814	$	141	$	39,877
Current period gross writeoff		-			-		-		-			-		-			-		-		-

Commercial real estate
Pass (1-6)	$	6,379		$	116,935	$	107,229	$	57,713		$	59,064	$	123,857		$	3,287	$	-	$	474,464
Special Mention (7)		-			76		-		-			1,165		2,141			149		-		3,531
Substandard (8)		-			1,216		92		240			-		5,021			-		-		6,569
Total	$	6,379		$	118,227	$	107,321	$	57,953		$	60,229	$	131,019		$	3,436	$	-	$	484,564
Current period gross writeoff		-			-		-		-			-		(12	)		-		-		(12	)

*Construction and land development*
Pass (1-6)	$	7,667		$	52,259	$	34,588	$	1,023		$	9,018	$	634		$	6,669	$	-	$	111,858
Special Mention (7)		-			-		2,391		2,059			-		-			-		-		4,450
Substandard (8)		-			-		-		-			-		-			-		-		-
Total	$	7,667		$	52,259	$	36,979	$	3,082		$	9,018	$	634		$	6,669	$	-	$	116,308
Current period gross writeoff		-			-		-		-			-		-			-		-		-

Multifamily
Pass (1-6)	$	6,388		$	54,961	$	81,790	$	59,245		$	15,334	$	25,646		$	180	$	-	$	243,544
Special Mention (7)		-			-		-		861			-		877			-		-		1,738
Substandard (8)		-			901		-		-			6,089		361			-		-		7,351
Total	$	6,388		$	55,862	$	81,790	$	60,106		$	21,423	$	26,884		$	180	$	-	$	252,633
Current period gross writeoff		-			-		-		-			-		-			-		-		-

Commercial business
Pass (1-6)	$	6,488		$	20,333	$	8,189	$	7,261		$	6,871	$	15,140		$	32,796	$	-	$	97,078
Special Mention (7)		-			-		70		-			145		469			250		-		934
Substandard (8)		-			-		227		416			5		1,992			-		-		2,640
Total	$	6,488		$	20,333	$	8,486	$	7,677		$	7,021	$	17,601		$	33,046	$	-	$	100,652
Current period gross writeoff		-			-		-		(75	)		-		-			-		-		(75	)

Consumer
Pass (1-6)	$	94		$	132	$	175	$	18		$	31	$	273		$	-	$	-	$	723
Total	$	94		$	132	$	175	$	18		$	31	$	273		$	-	$	-	$	723
Current period gross writeoff		(19	)		-		-		-			-		-			-		-		(19	)

Manufactured homes
Pass (1-6)	$	-		$	1,994	$	13,840	$	9,965		$	6,056	$	2,172		$	-	$	-	$	34,027
Total	$	-		$	1,994	$	13,840	$	9,965		$	6,056	$	2,172		$	-	$	-	$	34,027
Current period gross writeoff		-			-		-		-			-		-			-		-		-

Government
Pass (1-6)	$	1,890		$	2,000	$	1,522	$	-		$	-	$	5,234		$	-	$	-	$	10,646
Total	$	1,890		$	2,000	$	1,522	$	-		$	-	$	5,234		$	-	$	-	$	10,646
Current period gross writeoff		-			-		-		-			-		-			-		-		-

	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

Financing Receivable, Modified [Table Text Block]

(Dollars in thousands)

Payment

Delay

Term

Extension

Interest

Rate

Reduction

Combination Term

Extension and

Interest Rate

Reduction

% of Total

Segment

Financing

Receivables

Residential Real Estate

600

0.13

Total

600

0.04

(Dollars in thousands)

Current

30-59 Days

Past Due

60-89

Days

Past Due

Greater Than 90

Days Past Due

Residential Real Estate

224

376

Total

224

376

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

(dollars in thousands)	Total
2022	$	107
2023		167

(dollars in thousands)	Total
Remainder 2023		537
2024		744
2025		661
2026		462
2027 and thereafter		3,352
Total	$	5,756

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

(Dollars in thousands)	Beginning Balance		Adoption of ASC 326		PCD Gross-up		Charge-offs			Recoveries		Provisions			Ending Balance

The Bancorp's activity in the allowance for credit losses, by loan segment, is summarized below for the three months ended March 31, 2023:

Allowance for credit losses:
Residential real estate	$	3,021	$	1,688	$	31	$	-		$	52	$	(228	)	$	4,564
Home equity		410		99		533		-			-		105			1,147
Commercial real estate		5,784		1,003		443		(12	)		-		(99	)		7,119
Construction and land development		1,253		1,735		-		-			-		241			3,229
Multifamily		1,007		141		-		-			-		(89	)		1,059
Commercial business		1,365		320		5		(75	)		47		433			2,095
Consumer		57		5		17		(19	)		3		1			64
Manufactured homes		-		112		-		-			-		104			216
Government		-		55		-		-			-		20			75
Total	$	12,897	$	5,158	$	1,029	$	(106	)	$	102	$	488		$	19,568

Allowance for loan losses:
Residential real estate	$	2,480	$	-		$	21	$	(8	)	$	2,493
Home equity		357		-			-		(3	)		354
Commercial real estate		5,515		-			-		15			5,530
Construction and land development		2,119		-			-		16			2,135
Multifamily		848		-			-		41			889
Commercial business		2,009		-			31		(99	)		1,941
Consumer		15		(10	)		2		38			45
Manufactured homes		-		-			-		-			-
Government		-		-			-		-			-
Total	$	13,343	$	(10	)	$	54	$	-		$	13,387

Schedule of Collateral Dependent Loans [Table Text Block]

	March 31, 2023
(dollars in thousands)	Real Estate		Accounts Receivable		Other		Total		ACL Allocation
Commercial and Industrial	$	57	$	3,231	$	388	$	3,676	$	645
Commercial Real Estate		5,185		-		-		5,185		422
Multifamily		7,418		-		-		7,418		-
Total	$	12,660	$	3,231	$	388	$	16,279	$	1,067

Financing Receivable, Nonaccrual [Table Text Block]

As of March 31, 2023	Nonaccrual with No Allowance for Credit Loss		Nonaccrual		Loans Past Due over 90 Days Still Accruing
Residential real estate	$	1,323	$	3,805	$	488
Home equity		-		1,373		65
Commercial real estate		2,841		141		-
Construction and land development		-		-		-
Multifamily		7,350		-		-
Commercial business		57		2,583		-
Consumer		-		-		-
Manufactured homes		-		-		324
Government		-		-		-
Total	$	11,571	$	7,902	$	877

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 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

Impaired Financing Receivables [Table Text Block]

(Dollars in thousands)							For the three months ended,
(unaudited)	As of December 31, 2022						March 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	$	-	$	2,629	$	30
Home equity		399		416		-		255		7
Commercial real estate		5,314		5,406		-		2,188		10
Construction and land development		-		-		-		460		-
Multifamily		7,121		7,163		-		2,036		-
Commercial business		2,278		2,392		-		1,226		15
Consumer		17		17		-		11		-
Manufactured homes		-		-		-		-		-
Government		-		-		-		-		-

With an allowance recorded:
Residential real estate	$	251	$	276	$	24	$	87	$	3
Home equity		20		20		3		22		1
Commercial real estate		13		14		13		843		-
Construction and land development		-		-		-		-		-
Multifamily		-		-		-		-		-
Commercial business		433		561		297		354		16
Consumer		-		-		-		-		-
Manufactured homes		-		-		-		-		-
Government		-		-		-		-		-

Total:
Residential real estate	$	2,506	$	3,987	$	24	$	2,716	$	33
Home equity	$	419	$	436	$	3	$	277	$	8
Commercial real estate	$	5,327	$	5,420	$	13	$	3,031	$	10
Construction & land development	$	-	$	-	$	-	$	460	$	-
Multifamily	$	7,121	$	7,163	$	-	$	2,036	$	-
Commercial business	$	2,711	$	2,953	$	297	$	1,580	$	31
Consumer	$	17	$	17	$	-	$	11	$	-
Manufactured homes	$	-	$	-	$	-	$	-	$	-
Government	$	-	$	-	$	-	$	-	$	-

Schedule of Changes in Liability for Credit Loss on Unfunded Commitments [Table Text Block]

	Three months ended,
	March 31,
(Dollars in thousands)	2023
Balance, beginning of period	$	-
Adoption of ASC 326		3,108
Provision (recovery of provision)		-
Balance, end of period	$	3,108