Exhibit 99.1

 

FOR IMMEDIATE RELEASE

APRIL 30, 2025

 

FOR FURTHER INFORMATION

CONTACT SHAREHOLDER SERVICES

(219) 853-7575

 

FINWARD BANCORP

ANNOUNCES EARNINGS FOR THE QUARTER ENDED

MARCH 31, 2025

 

Munster, Indiana - Finward Bancorp (Nasdaq: FNWD) (the “Bancorp”), the holding company for Peoples Bank (the “Bank”), today announced that net income available to common stockholders was $456 thousand, or $0.11 per diluted share, for the quarter ended March 31, 2025, as compared to $2.1 million, or $0.49 per diluted share for the quarter ended December 31, 2024, and as compared to $9.3 million or $2.17 per diluted share for the quarter ended March 31, 2024. Selected performance metrics are as follows for the periods presented:

 

Finward Bancorp

Quarterly Financial Report

 

Performance Ratios

 

Quarter ended,

 

(unaudited)

 

March 31,

   

December 31,

   

September 30,

   

June 30,

   

March 31,

 
   

2025

   

2024

   

2024

   

2024

   

2024

 

Return on equity

    1.17 %     5.39 %     1.60 %     0.39 %     24.97 %

Return on assets

    0.09 %     0.41 %     0.12 %     0.03 %     1.77 %

Tax adjusted net interest margin (Non-GAAP)

    2.95 %     2.79 %     2.66 %     2.67 %     2.57 %

Noninterest income / average assets

    0.43 %     0.72 %     0.55 %     0.50 %     2.57 %

Noninterest expense / average assets

    2.81 %     2.75 %     2.80 %     2.79 %     2.86 %

Efficiency ratio

    93.11 %     87.20 %     97.32 %     98.56 %     59.41 %

 

“Margin continued to expand in the first quarter as deposits repriced lower, continuing the trend we have seen over the past year. With economic uncertainty potentially increasing, we are maintaining our focus on capital and credit quality. Non-performing loans improved in the first quarter, and our Provision for Credit Loss was driven by model-related factors that reflect the broader trends we see in the economy. Seasonal and timing factors impacted operating expense and non-interest income, and we see opportunity in both areas as the year moves forward,” said Benjamin Bochnowski, CEO. “Our team remains focused on continued improvement in operating results, and on serving our customers and communities.”

 

Highlights of the current period include:

 

Net Interest Margin - The net interest margin for the quarter ended March 31, 2025, was 2.81%, compared to 2.65% for the quarter ended December 31, 2024. The tax-adjusted net interest margin (a non-GAAP measure) for the quarter ended March 31, 2025, was 2.95%, compared to 2.79% for the quarter ended December 31, 2024. The increased net interest margin for the three months ended March 31, 2025 compared to December 31, 2024 is primarily the result of reduced deposit and borrowing costs as a result of the Federal Reserve’s reduction of federal funds rates during the last four months of 2024. See Table 1 at the end of this press release for a reconciliation of the tax-adjusted net interest margin to the GAAP net interest margin.

 

Funding - As of March 31 2025, deposits totaled $1.8 billion, a decrease of $10.2 million, or 0.6% compared to December 31, 2024, which also totaled $1.8 billion. As of March 31, 2025, non-interest-bearing deposits totaled $281.5 million, an increase of $18.1 million or 6.9%, compared to December 31, 2024. Core deposits totaled $1.2 billion at both March 31, 2025 and December 31, 2024. Core deposits include checking, savings, and money market accounts and represented 68.9% of the Bancorp’s total deposits at March 31, 2025. As of March 31, 2025, balances for certificates of deposit totaled $544.8 million, compared to $560.3 million on December 31, 2024, a decrease of $15.5 million or 2.8%. The decline in total portfolio deposits is primarily related to cyclical flows and continued adjustments to deposit pricing. The increase in non-interest-bearing deposits is primarily attributable to inflows of business-related checking deposits after year-end. In addition, as of March 31, 2025, borrowings and repurchase agreements totaled $101.7 million, a decrease of $3.4 million or 3.2%, compared to December 31, 2024. The decrease in short-term borrowings was the result of cyclical inflows and outflows of interest-earning assets and interest-bearing liabilities.

 

As of March 31, 2025, 72% of our deposits are fully FDIC insured, and another 9% are further backed by the Indiana Public Deposit Insurance Fund. The Bancorp’s liquidity position remains strong with solid core deposit customer relationships, excess cash, debt securities, contractual loan repayments, and access to diversified borrowing sources. As of March 31, 2025, the Bancorp had available liquidity of $697 million including borrowing capacity from the FHLB and Federal Reserve facilities.

 

 

 

Securities Portfolio - Securities available for sale balances decreased by $3.5 million to $330.1 million as of March 31, 2025, compared to $333.6 million as of December 31, 2024.  The decrease in securities available for sale was primarily due to continued portfolio runoff. Accumulated other comprehensive loss ("AOCL") was $58.2 million as of March 31, 2025, compared to $58.1 million on December 31, 2024, a decline of $160.4 thousand, or 0.3%. The yield on the securities portfolio increased to 2.38% for the three months ended March 31, 2025 from 2.34% for the three months ended December 31, 2024. Management did not execute any securities sale transactions during the quarter.  

 

Lending - The Bank’s aggregate loan portfolio totaled $1.5 billion on both March 31, 2025 and December 31, 2024. During the three months ended March 31, 2025, the Bank originated $36.7 million in new commercial loans, compared to $25.0 million during the three months ended December 31, 2024. The loan portfolio represents 79.1% of earning assets and is comprised of 62.6% commercial-related credits. At March 31, 2025, the Bancorp’s portfolio loan balances in commercial real estate owner occupied properties totaled $236.9 million or 15.7% of total loan balances and commercial real estate non-owner-occupied properties totaled $302.8 million or 20.1% of total loan balances. Of the $302.8 million in commercial real estate non-owner-occupied properties balances, loans collateralized by office buildings represented $40.4 million or 2.7% of total loan balances.

 

Asset Quality - At March 31, 2025, non-performing loans totaled $12.5 million, compared to $13.7 million at December 31, 2024, a decrease of $1.3 million or 9.1%. The Bank’s ratio of non-performing loans to total loans was 0.84% at March 31, 2025, compared to 0.91% at December 31, 2024. The Bank’s ratio of non-performing assets to total assets was 0.69% at March 31, 2025, compared to 0.74% at December 31, 2024. Management maintains a vigilant oversight of nonperforming loans through proactive relationship management.

 

The allowance for credit losses (ACL) on loans totaled $17.9 million at March 31, 2025, or 1.20% of total loans receivable, compared to $16.9 million at December 31, 2024, or 1.12% of total loans receivable, an increase of $1 million or 6.2%. The Bank’s unused commitment reserve, included in other liabilities, totaled $2.1 million at March 31, 2025, compared to $2.7 million at December 31, 2024, a decrease of $622 thousand or 22.7%. 

 

For the quarter ended March 31, 2025, the Bank recorded a net provision for credit loss expense totaling $454 thousand based on historical loss rate updates, migration of loan and unfunded commitment segment balances, and other factors within the Bank’s ACL modeling. The first quarter’s provision expense consisted of a $1.1 million provision for credit losses on loans, and a $623 thousand reversal of provision for credit losses on unused commitments. The decrease in the Bank’s unused commitment reserve was primarily due to lower loss rates. For the quarter ended March 31, 2025, net charge-offs, totaled $32.7 thousand, compared to $2.2 million for the quarter ended December 31, 2024, a decrease of $2.1 million, or a decline of 97.2%. The ACL as a percentage of non-performing loans, or coverage ratio, was 143.8% at March 31, 2025 compared to 123.1% at December 31, 2024.

 

Operating Expenses - Non-interest expense as a percentage of average assets was 2.81% for the quarter ended March 31, 2025, as compared to 2.75% for the quarter ended December 31, 2024. The increase in non-interest expenses quarter over quarter was primarily attributable to increased compensation and benefit expenses offset by reduced data processing and marketing expenses. The Bank remains focused on identifying additional operating efficiencies and third-party expense reductions. Compensation and benefits expense is up 3.7% for the quarter ended March 31, 2025, compared to the quarter ended March 31, 2024, primarily due to annual merit-based salary increases during the quarter ended March 31, 2025.

 

Capital Adequacy - As of March 31, 2025, the Bank’s tier 1 capital to adjusted average assets ratio was 8.48%, an improvement of 0.01% compared to 8.47% at December 31, 2024. The Bank’s capital continues to exceed all applicable regulatory capital requirements as set forth in 12 C.F.R. § 324. The Bancorp’s tangible book value per share was $29.55 at March 31, 2025, up from $29.48 as of December 31, 2024 (a non-GAAP measure). Tangible common equity to total assets was 6.26% at March 31, 2025, up from 6.17% as of December 31, 2024 (a non-GAAP measure). Excluding accumulated other comprehensive losses, tangible book value per share increased to $43.02 as of March 31, 2025, from $42.94 as of December 31, 2024 (a non-GAAP measure). See Table 1 at the end of this press release for a reconciliation of the tangible book value per share, tangible book value per share adjusted for other accumulated comprehensive losses, tangible common equity as a percentage of total assets, and tangible common equity as a percentage of total assets adjusted for accumulated other comprehensive losses to the related GAAP ratios.

 

 

 

Disclosures Regarding Non-GAAP Financial Measures

Reported amounts are presented in accordance with GAAP. In this press release, the Bancorp also provides certain financial measures identified as non-GAAP. The Bancorp’s management believes that the non-GAAP information, which consists of tangible common equity, tangible common equity adjusted for accumulated other comprehensive losses, tangible book value per share, tangible book value per share adjusted for accumulated other comprehensive losses, tangible common equity/total assets, tax-adjusted net interest margin, and efficiency ratio, which can vary from period to period, provides a better comparison of period to period operating performance. The adjusted net interest income and tax-adjusted net interest margin measures recognize the income tax savings when comparing taxable and tax-exempt assets. Interest income and yields on tax-exempt securities and loans are presented using the current federal income tax rate of 21%. Management believes that it is standard practice in the banking industry to present net interest income and net interest margin on a fully tax-equivalent basis and that it may enhance comparability for peer comparison purposes. Additionally, the Bancorp believes this information is utilized by regulators and market analysts to evaluate a company’s financial condition and, therefore, such information is useful to investors. These disclosures should not be viewed as a substitute for financial results in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures which may be presented by other companies. Refer to Table 1 – Reconciliation of Non-GAAP Financial Measures at the end of this document for a reconciliation of the non-GAAP measures identified herein and their most comparable GAAP measures.

 

About Finward Bancorp

Finward Bancorp is a locally managed and independent financial holding company headquartered in Munster, Indiana, whose activities are primarily limited to holding the stock of Peoples Bank. Peoples Bank provides a wide range of personal, business, electronic and wealth management financial services from its 26 locations in Lake and Porter Counties in Northwest Indiana and Chicagoland. Finward Bancorp’s common stock is quoted on The NASDAQ Stock Market, LLC under the symbol FNWD. The website ibankpeoples.com provides information on Peoples Bank’s products and services, and Finward Bancorp’s investor relations.

 

Forward Looking Statements

This press release may contain forward-looking statements regarding the financial performance, business prospects, growth and operating strategies of the Bancorp. For these statements, the Bancorp claims the protections of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Statements in this communication should be considered in conjunction with the other information available about the Bancorp, including the information in the filings the Bancorp makes with the SEC. Forward-looking statements provide current expectations or forecasts of future events and are not guarantees of future performance. The forward-looking statements are based on management’s expectations and are subject to a number of risks and uncertainties. Forward-looking statements are typically identified by using words such as “anticipate,” “estimate,” “project,” “intend,” “plan,” “believe,” “will” and similar expressions in connection with any discussion of future operating or financial performance.

 

Although management believes that the expectations reflected in such forward-looking statements are reasonable, actual results may differ materially from those expressed or implied in such statements. Risks and uncertainties that could cause actual results to differ materially include: changes in domestic and international trade policies, including tariffs and other non-tariff barriers, and the effects of such changes on the Bank and its customers; the Bank’s ability to demonstrate compliance with the terms of the previously disclosed consent order and memorandum of understanding entered into between the Bank and the Federal Deposit Insurance Corporation (“FDIC”) and Indiana Department of Financial Institutions (“DFI”), or to demonstrate compliance to the satisfaction of the FDIC and/or DFI within prescribed time frames; the Bank’s agreement under the memorandum of understanding to refrain from paying cash dividends without prior regulatory approval; changes in asset quality and credit risk; the inability to sustain revenue and earnings growth; changes in interest rates, market liquidity, and capital markets, as well as the magnitude of such changes, which may reduce net interest margins; the aggregate effects of inflation experienced in recent years; further deterioration in the market value of securities held in the Bancorp’s investment securities portfolio, whether as a result of macroeconomic factors or otherwise; customer acceptance of the Bancorp’s products and services; customer borrowing, repayment, investment, and deposit practices; customer disintermediation; the introduction, withdrawal, success, and timing of business initiatives; competitive conditions; the inability to realize cost savings or revenues or to implement integration plans and other consequences associated with mergers, acquisitions, and divestitures; economic conditions; and the impact, extent, and timing of technological changes, capital management activities, regulatory actions by the Federal Deposit Insurance Corporation and Indiana Department of Financial Institutions, and other actions of the Federal Reserve Board and legislative and regulatory actions and reforms. Additional factors that could cause actual results to differ materially from those expressed in the forward-looking statements are discussed in the Bancorp’s reports (such as the Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K) filed with the SEC and available at the SEC’s Internet website (www.sec.gov). All subsequent written and oral forward-looking statements concerning matters attributable to the Bancorp or any person acting on its behalf are expressly qualified in their entirety by the cautionary statements above. Except as required by law, The Bancorp does not undertake any obligation to update any forward-looking statement to reflect circumstances or events that occur after the date the forward-looking statement is made.

 

 

 

In addition to the above factors, we also caution that the actual amounts and timing of any future common stock dividends or share repurchases will be subject to various factors, including our capital position, financial performance, capital impacts of strategic initiatives, market conditions, and regulatory and accounting considerations, as well as any other factors that our Board of Directors deems relevant in making such a determination. Therefore, there can be no assurance that we will repurchase shares or pay any dividends to holders of our common stock, or as to the amount of any such repurchases or dividends.

 

 

 

 

Finward Bancorp

Quarterly Financial Report

 

Performance Ratios

 

Quarter ended,

 

(unaudited)

 

March 31,

   

December 31,

   

September 30,

   

June 30,

   

March 31,

 
   

2025

   

2024

   

2024

   

2024

   

2024

 

Return on equity

    1.17 %     5.39 %     1.60 %     0.39 %     24.97 %

Return on assets

    0.09 %     0.41 %     0.12 %     0.03 %     1.77 %

Yield on loans

    5.25 %     5.27 %     5.22 %     5.11 %     5.02 %

Yield on security investments

    2.38 %     2.34 %     2.37 %     2.43 %     2.37 %

Total yield on earning assets

    4.71 %     4.74 %     4.70 %     4.64 %     4.52 %

Cost of interest-bearing deposits

    2.17 %     2.41 %     2.47 %     2.37 %     2.36 %

Cost of repurchase agreements

    3.35 %     3.65 %     4.04 %     3.86 %     3.88 %

Cost of borrowed funds

    4.12 %     4.31 %     4.56 %     4.95 %     4.62 %

Total cost of interest-bearing liabilities

    2.28 %     2.53 %     2.63 %     2.55 %     2.53 %

Tax adjusted net interest margin1

    2.95 %     2.79 %     2.66 %     2.67 %     2.57 %

Noninterest income / average assets

    0.43 %     0.72 %     0.55 %     0.50 %     2.57 %

Noninterest expense / average assets

    2.81 %     2.75 %     2.80 %     2.79 %     2.86 %

Efficiency ratio

    93.11 %     87.20 %     97.32 %     98.56 %     59.41 %
                                         

Non-performing assets to total assets

    0.69 %     0.74 %     0.73 %     0.61 %     0.64 %

Non-performing loans to total loans

    0.84 %     0.91 %     0.92 %     0.75 %     0.78 %

Allowance for credit losses to non-performing loans

    143.84 %     123.10 %     134.12 %     161.17 %     159.12 %

Allowance for credit losses to loans receivable

    1.20 %     1.12 %     1.23 %     1.22 %     1.25 %
                                         

Basic earnings per share

  $ 0.11     $ 0.49     $ 0.14     $ 0.03     $ 2.18  

Diluted earnings per share

  $ 0.11     $ 0.49     $ 0.14     $ 0.03     $ 2.17  

Stockholders' equity / total assets

    7.44 %     7.35 %     7.69 %     7.16 %     7.32 %

Book value per share

  $ 35.10     $ 35.10     $ 36.99     $ 34.45     $ 35.17  

Closing stock price

  $ 29.10     $ 28.11     $ 31.98     $ 24.52     $ 24.60  

Price to earnings per share ratio

    68.08       14.25       56.21       182.60       2.82  

Dividends declared per common share

  $ 0.12     $ 0.12     $ 0.12     $ 0.12     $ 0.12  

 

Non-GAAP Performance Ratios

 

Quarter ended,

 

(unaudited)

 

March 31,

   

December 31,

   

September 30,

   

June 30,

   

March 31,

 
   

2025

   

2024

   

2024

   

2024

   

2024

 

Net interest margin - tax equivalent

    2.95 %     2.79 %     2.66 %     2.67 %     2.57 %

Tangible book value per diluted share

  $ 29.55     $ 29.48     $ 31.28     $ 28.67     $ 29.30  

Tangible book value per diluted share adjusted for AOCL

  $ 43.02     $ 42.94     $ 42.47     $ 42.33     $ 42.36  

Tangible common equity to total assets

    6.26 %     6.17 %     6.51 %     5.95 %     6.09 %

Tangible common equity to total assets adjusted for AOCL

    9.12 %     8.99 %     8.83 %     8.79 %     8.81 %

 

(1) Tax adjusted net interest margin represents a non-GAAP financial measure. See the non-GAAP reconciliation table section captioned “Non-GAAP Financial Measures” for further disclosure regarding non-GAAP financial measures

 

 

 

Quarter Ended

                                               

(Dollars in thousands)

 

Average Balances, Interest, and Rates

 

(unaudited)

 

March 31, 2025

   

December 31, 2024

 
   

Average
Balance

   

Interest

   

Rate (%)

   

Average
Balance

   

Interest

   

Rate (%)

 

ASSETS

                                               

Interest bearing deposits in other financial institutions

  $ 53,553     $ 540       4.03     $ 50,271     $ 650       5.17  

Federal funds sold

    1,375       12       3.49       891       9       4.04  

Securities available-for-sale

    336,060       1,998       2.38       343,411       2,011       2.34  

Loans receivable

    1,498,312       19,655       5.25       1,504,233       19,802       5.27  

Federal Home Loan Bank stock

    6,547       136       8.31       6,547       123       7.51  

Total interest earning assets

    1,895,847     $ 22,341       4.71       1,905,353     $ 22,595       4.74  

Cash and non-interest bearing deposits in other financial institutions

    27,919                       27,360                  

Allowance for credit losses

    (16,946 )                     (18,110 )                

Other noninterest bearing assets

    153,148                       154,707                  

Total assets

  $ 2,059,968                     $ 2,069,310                  
                                                 

LIABILITIES AND STOCKHOLDERS' EQUITY

                                               

Interest-bearing deposits

  $ 1,481,377     $ 8,044       2.17     $ 1,465,198     $ 8,811       2.41  

Repurchase agreements

    41,631       349       3.35       43,372       396       3.65  

Borrowed funds

    61,613       635       4.12       72,536       781       4.31  

Total interest bearing liabilities

    1,584,621     $ 9,028       2.28       1,581,106     $ 9,988       2.53  

Non-interest bearing deposits

    279,013                       289,467                  

Other noninterest bearing liabilities

    40,923                       42,944                  

Total liabilities

    1,904,557                       1,913,517                  

Total stockholders' equity

    155,411                       155,793                  

Total liabilities and stockholders' equity

  $ 2,059,968                     $ 2,069,310                  
                                                 

Net interest income

          $ 13,313                     $ 12,607          

Return on average assets

    0.09 %                     0.41 %                

Return on average equity

    1.17 %                     5.39 %                

Net interest margin (average earning assets)

    2.81 %                     2.65 %                

Net interest margin (average earning assets) - tax equivalent

    2.95 %                     2.79 %                

Net interest spread

    2.43 %                     2.21 %                

Ratio of interest-earning assets to interest-bearing liabilities

 

1.20x

                   

1.21x

                 

 

 

 

Finward Bancorp

Quarterly Financial Report

 

Balance Sheet Data

                                       

(Dollars in thousands)

                                       

(unaudited)

 

March 31,

   

December 31,

   

September 30,

   

June 30,

   

March 31,

 
   

2025

   

2024

   

2024

   

2024

   

2024

 

ASSETS

                                       
                                         

Cash and non-interest bearing deposits in other financial institutions

  $ 18,563     $ 17,883     $ 23,071     $ 19,061     $ 16,418  

Interest bearing deposits in other financial institutions

    52,829       52,047       48,025       63,439       54,755  

Federal funds sold

    975       654       553       707       607  
                                         

Total cash and cash equivalents

    72,367       70,584       71,649       83,207       71,780  
                                         

Securities available-for-sale

    330,127       333,554       350,027       339,585       346,233  

Loans held-for-sale

    2,849       1,253       2,567       1,185       667  

Loans receivable, net of deferred fees and costs

    1,491,696       1,508,976       1,508,242       1,506,398       1,508,251  

Less: allowance for credit losses

    (17,955 )     (16,911 )     (18,516 )     (18,330 )     (18,805 )

Net loans receivable

    1,473,741       1,492,065       1,489,726       1,488,068       1,489,446  

Federal Home Loan Bank stock

    6,547       6,547       6,547       6,547       6,547  

Accrued interest receivable

    7,821       7,721       7,442       7,695       7,583  

Premises and equipment

    46,680       47,259       47,912       48,696       47,795  

Foreclosed real estate

    -       -       -       -       71  

Cash value of bank owned life insurance

    33,712       33,514       33,312       33,107       32,895  

Goodwill

    22,395       22,395       22,395       22,395       22,395  

Other intangible assets

    1,635       1,860       2,203       2,555       2,911  

Other assets

    41,840       43,947       40,882       44,027       43,459  
                                         

Total assets

  $ 2,039,714     $ 2,060,699     $ 2,074,662     $ 2,077,067     $ 2,071,782  
                                         

LIABILITIES AND STOCKHOLDERS' EQUITY

                                       
                                         

Deposits:

                                       

Non-interest bearing

  $ 281,461     $ 263,324     $ 285,157     $ 286,784     $ 296,959  

Interest bearing

    1,468,923       1,497,242       1,463,653       1,469,970       1,450,519  

Total

    1,750,384       1,760,566       1,748,810       1,756,754       1,747,478  

Repurchase agreements

    45,053       40,116       43,038       42,973       41,137  

Borrowed funds

    56,657       65,000       85,000       85,000       90,000  

Accrued expenses and other liabilities

    35,813       43,603       38,259       43,709       41,586  
                                         

Total liabilities

    1,887,907       1,909,285       1,915,107       1,928,436       1,920,201  
                                         

Commitments and contingencies

                                       
                                         

Stockholders' Equity:

                                       
                                         

Preferred stock, no par or stated value; 10,000,000 shares authorized, none outstanding

    -       -       -       -       -  

Common stock, no par or stated value; 10,000,000 shares authorized;shares issued and outstanding: March 31, 2025 - 4,324,485 December 31, 2024 - 4,313,698

    -       -       -       -       -  

Additional paid-in capital

    70,132       70,034       69,916       69,778       69,727  

Accumulated other comprehensive loss

    (58,244 )     (58,084 )     (48,241 )     (58,939 )     (56,313 )

Retained earnings

    139,919       139,464       137,880       137,792       138,167  
                                         

Total stockholders' equity

    151,807       151,414       159,555       148,631       151,581  
                                         

Total liabilities and stockholders' equity

  $ 2,039,714     $ 2,060,699     $ 2,074,662     $ 2,077,067     $ 2,071,782  

 

 

 

Finward Bancorp

Quarterly Financial Report

 

Consolidated Statements of Income

                                       

(Dollars in thousands)

 

Quarter Ended,

 

(unaudited)

 

March 31,

   

December 31,

   

September 30,

   

June 30,

   

March 31,

 
   

2025

   

2024

   

2024

   

2024

   

2024

 

Interest income:

                                       

Loans

  $ 19,655     $ 19,802     $ 19,660     $ 19,174     $ 18,879  

Securities & short-term investments

    2,686       2,793       2,812       2,953       3,105  

Total interest income

    22,341       22,595       22,472       22,127       21,984  

Interest expense:

                                       

Deposits

    8,045       8,812       8,946       8,610       8,794  

Borrowings

    983       1,176       1,520       1,463       1,410  

Total interest expense

    9,028       9,988       10,466       10,073       10,204  

Net interest income

    13,313       12,607       12,006       12,054       11,780  

Provision for credit losses

    454       (579 )     -       76       -  

Net interest income after provision for credit losses

    12,859       13,186       12,006       11,978       11,780  

Noninterest income:

                                       

Fees and service charges

    1,109       1,439       1,463       1,257       1,153  

Wealth management operations

    619       728       731       763       633  

Gain on tax credit investment

    67       1,236       -       -       -  

Gain on sale of loans held-for-sale, net

    230       328       338       320       152  

Increase in cash value of bank owned life insurance

    198       202       205       212       193  

Gain (loss) on sale of real estate

    -       (212 )     -       15       11,858  

Loss on sale of securities, net

    -       -       -       -       (531 )

Other

    6       11       130       6       17  

Total noninterest income

    2,229       3,732       2,867       2,573       13,475  

Noninterest expense:

                                       

Compensation and benefits

    7,372       6,628       6,963       7,037       7,109  

Occupancy and equipment

    2,111       2,045       2,181       2,116       1,908  

Data processing

    1,039       1,202       1,165       1,135       1,170  

Federal deposit insurance premiums

    433       457       435       397       501  

Marketing

    86       220       209       212       158  

Professional and outside services

    1,260       1,341       1,251       1,257       1,557  

Technology

    454       509       602       507       625  

Other

    1,716       1,845       1,668       1,756       1,976  

Total noninterest expense

    14,471       14,247       14,474       14,417       15,004  

Income before income taxes

    617       2,671       399       134       10,251  

Income tax expenses (benefit)

    161       569       (207 )     (9 )     972  

Net income

  $ 456     $ 2,102     $ 606     $ 143     $ 9,279  
                                         

Earnings per common share:

                                       

Basic

  $ 0.11     $ 0.49     $ 0.14     $ 0.03     $ 2.18  

Diluted

  $ 0.11     $ 0.49     $ 0.14     $ 0.03     $ 2.17  

 

 

 

Finward Bancorp

Quarterly Financial Report

 

Asset Quality

                                       

(Dollars in thousands)

                                       

(unaudited)

 

March 31,

   

December 31,

   

September 30,

   

June 30,

   

March 31,

 
   

2025

   

2024

   

2024

   

2024

   

2024

 

Nonaccruing loans

  $ 12,483     $ 13,738     $ 13,806     $ 11,079     $ 11,603  

Accruing loans delinquent more than 90 days

    -       -       -       294       215  

Securities in non-accrual

    1,630       1,419       1,440       1,371       1,442  

Foreclosed real estate

    -       -       -       -       71  

Total nonperforming assets

  $ 14,113     $ 15,157     $ 15,246     $ 12,744     $ 13,331  
                                         

Allowance for credit losses (ACL):

                                       

ACL specific allowances for collateral dependent loans

  $ 259     $ 284     $ 1,821     $ 1,327     $ 1,455  

ACL general allowances for loan portfolio

    17,696       16,627       16,695       17,003       17,351  

Total ACL

  $ 17,955     $ 16,911     $ 18,516     $ 18,330     $ 18,806  

 

 

 

(Dollars in thousands)

                                 

Minimum Required To Be

 

(unaudited)

                 

Minimum Required For

   

Well Capitalized Under Prompt

 
   

Actual

   

Capital Adequacy Purposes

   

Corrective Action Regulations

 

March 31, 2025

 

Amount

   

Ratio

   

Amount

   

Ratio

   

Amount

   

Ratio

 

Common equity tier 1 capital to risk-weighted assets

  $ 178,036       11.02 %   $ 72,679       4.50 %   $ 104,981       6.50 %

Tier 1 capital to risk-weighted assets

  $ 178,036       11.02 %   $ 96,906       6.00 %   $ 129,207       8.00 %

Total capital to risk-weighted assets

  $ 198,107       12.27 %   $ 129,207       8.00 %   $ 161,509       10.00 %

Tier 1 capital to adjusted average assets

  $ 178,036       8.48 %   $ 84,019       4.00 %   $ 105,023       5.00 %

 

 

 

Table 1 - Reconciliation of the Non-GAAP Performance Measures

                               
                                                         

(Dollars in thousands)

 

Quarter Ended,

   

Nine months ended,

 

(unaudited)

 

March 31, 2025

   

December 31, 2024

   

September 30, 2024

   

June 30, 2024

   

March 31, 2024

   

March 31, 2025

   

March 31, 2024

 

Calculation of tangible common equity

                                                       

Total stockholder's equity

  $ 151,807     $ 151,414     $ 159,555     $ 148,631     $ 151,581     $ 151,807     $ 151,581  

Goodwill

    (22,395 )     (22,395 )     (22,395 )     (22,395 )     (22,395 )     (22,395 )     (22,395 )

Other intangibles

    (1,635 )     (1,860 )     (2,203 )     (2,555 )     (2,911 )     (1,635 )     (2,911 )

Tangible common equity

  $ 127,777     $ 127,159     $ 134,957     $ 123,681     $ 126,275     $ 127,777     $ 126,275  
                                                         

Calculation of tangible common equity adjusted for accumulated other comprehensive loss

                       

Tangible common equity

  $ 127,777     $ 127,159     $ 134,957     $ 123,681     $ 126,275     $ 127,777     $ 126,275  

Accumulated other comprehensive loss

    58,244       58,084       48,241       58,939       56,313       58,244       56,313  

Tangible common equity adjusted for accumulated other comprehensive loss

  $ 186,021     $ 185,243     $ 183,198     $ 182,620     $ 182,588     $ 186,021     $ 182,588  
                                                         

Calculation of tangible book value per share

                                         

Tangible common equity

  $ 127,777     $ 127,159     $ 134,957     $ 123,681     $ 126,275     $ 127,777     $ 126,275  

Shares outstanding

    4,324,485       4,313,698       4,313,940       4,313,940       4,310,251       4,324,485       4,310,251  

Tangible book value per diluted share

  $ 29.55     $ 29.48     $ 31.28     $ 28.67     $ 29.30     $ 29.55     $ 29.30  
                                                         

Calculation of tangible book value per diluted share adjusted for accumulated other comprehensive loss

               

Tangible common equity adjusted for accumulated other comprehensive loss

  $ 186,021     $ 185,243     $ 183,198     $ 182,620     $ 182,588     $ 186,021     $ 182,588  

Shares outstanding

    4,324,485       4,313,698       4,313,940       4,313,940       4,310,251       4,324,485       4,310,251  

Tangible book value per diluted share adjusted for accumulated other comprehensive loss

  $ 43.02     $ 42.94     $ 42.47     $ 42.33     $ 42.36     $ 43.02     $ 42.36  
                                                         

Calculation of tangible common equity to total assets

                                     

Tangible common equity

  $ 127,777     $ 127,159     $ 134,957     $ 123,681     $ 126,275     $ 127,777     $ 126,275  

Total assets

    2,039,714       2,060,699       2,074,662       2,077,067       2,071,782       2,039,714       2,071,782  

Tangible common equity to total assets

    6.26 %     6.17 %     6.51 %     5.95 %     6.09 %     6.26 %     6.09 %
                                                         

Calculation of tangible common equity to total assets adjusted for accumulated other comprehensive loss

           

Tangible common equity adjusted for accumulated other comprehensive loss

  $ 186,021     $ 185,243     $ 183,198     $ 182,620     $ 182,588     $ 186,021     $ 182,588  

Total assets

    2,039,714       2,060,699       2,074,662       2,077,067       2,071,782       2,039,714       2,071,782  

Tangible common equity to total assets adjusted for accumulated other comprehensive loss

    9.12 %     8.99 %     8.83 %     8.79 %     8.81 %     9.12 %     8.81 %
                                                         

Calculation of tax adjusted net interest margin

                                     

Net interest income

  $ 13,313     $ 12,607     $ 12,006     $ 12,054     $ 11,780     $ 13,313     $ 11,780  

Tax adjusted interest on securities and loans

    670       674       678       677       699       2,054       2,234  

Adjusted net interest income

  $ 13,983       13,281       12,684       12,731     $ 12,479     $ 15,367     $ 14,014  

Total average earning assets

    1,895,847       1,905,353       1,910,731       1,906,998       1,945,501       1,921,039       1,945,501  

Tax adjusted net interest margin

    2.95 %     2.79 %     2.66 %     2.67 %     2.57 %     1.07 %     0.96 %
                                                         

Efficiency ratio

                                                       

Total non-interest expense

  $ 14,471     $ 14,247     $ 14,474     $ 14,417     $ 15,004     $ 14,471     $ 15,004  

Total revenue

    15,542       16,339       14,873       14,627       25,255       15,542       25,255  

Efficiency ratio

    93.11 %     87.20 %     97.32 %     98.56 %     59.41 %     93.11 %     59.41 %