Finward Bancorp Quarterly report [Sections 13 or 15(d)]

Derivative Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2026

The following table shows the amounts of non-hedging derivative financial instruments:


March 31, 2026
			Asset derivatives			Liability derivatives
(Dollars in thousands)	Notional or contractual amount		Statement of Financial Condition classification	Fair value		Statement of Financial Condition classification	Fair value
Interest rate swap contracts	$	99,145	Other assets	$	3,445	Other liabilities	$	3,445
Interest rate lock commitments	1,820		Other assets	31		N/A	-
Total	$	100,965		$	3,476		$	3,445


December 31, 2025
			Asset derivatives			Liability derivatives
(Dollars in thousands)	Notional or contractual amount		Statement of Financial Condition classification	Fair value		Statement of Financial Condition classification	Fair value
Interest rate swap contracts	$	96,275	Other assets	$	3,641	Other liabilities	$	3,641
Interest rate lock commitments	2,939		Other assets	50		N/A	-
Total	$	99,214		$	3,691		$	3,641

The following table shows the amounts included in the Statements of Income for non-hedging derivative financial instruments:


		Three Months Ended March 31,
(Dollars in thousands)	Statement of Income Classification	2026		2025
Interest rate swap contracts	Fees and service charges	$	81	$	(30)
Interest rate lock commitments	Gain on sale of loans held-for-sale, net	(19)		(35)
Total		$	62	$	(65)

The following table shows the offsetting of financial assets and derivative assets:


							Gross Amounts not Offset in the Statement of Financial Condition
(Dollars in thousands)	Gross Amounts of Recognized Assets		Gross Amounts Offset in the Statement of Financial Condition		Net Amounts of Assets Presented in the Statement of Financial Condition		Financial Instruments		Cash Collateral Received		Net Amount
March 31, 2026
Interest rate swap contracts	$	3,445	$	-	$	3,445	$	-	$	2,510	$	935
Interest rate lock commitments	31		-		31		-		-		31
Total	$	3,476	$	-	$	3,476	$	-	$	2,510	$	966


							Gross Amounts not Offset in the Statement of Financial Condition
(Dollars in thousands)	Gross Amounts of Recognized Assets		Gross Amounts Offset in the Statement of Financial Condition		Net Amounts of Assets Presented in the Statement of Financial Condition		Financial Instruments		Cash Collateral Received		Net Amount
December 31, 2025
Interest rate swap contracts	$	3,641	$	-	$	3,641	$	-	$	1,900	$	1,741
Interest rate lock commitments	50		-		50		-		-		50
Total	$	3,691	$	-	$	3,691	$	-	$	1,900	$	1,791

The following table shows the offsetting of financial liabilities and derivative liabilities:


							Gross Amounts not Offset in the Statement of Financial Condition
(Dollars in thousands)	Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Statement of Financial Condition		Net Amounts of Assets Presented in the Statement of Financial Condition		Financial Instruments		Cash Collateral Pledged		Net Amount
March 31, 2026
Interest rate swap contracts	$	3,445	$	-	$	3,445	$	-	$	-	$	3,445


							Gross Amounts not Offset in the Statement of Financial Condition
(Dollars in thousands)	Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Statement of Financial Condition		Net Amounts of Assets Presented in the Statement of Financial Condition		Financial Instruments		Cash Collateral Pledged		Net Amount
December 31, 2025
Interest rate swap contracts	$	3,641	$	-	$	3,641	$	-	$	-	$	3,641