Finward Bancorp Announces Earnings for the Quarter Ended March 31, 2025
MUNSTER, Ind., April 30, 2025 (GLOBE NEWSWIRE) -- 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
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Performance
Ratios Quarter ended,
--------------------------------------------------------
December September
(unaudited) March 31, 31, 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 $(ACL.AU)$ 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.
FOR FURTHER INFORMATION
CONTACT SHAREHOLDER SERVICES
(219) 853-7575
Finward Bancorp
Quarterly Financial Report
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Performance
Ratios Quarter ended,
------------------------------------------------
March December September June March
(unaudited) 31, 31, 30, 30, 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
margin(1) 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,
------------------------------------------------
March December September June March
(unaudited) 31, 31, 30, 30, 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 Rate Average Rate
Balance Interest (%) Balance Interest (%)
-------------- ---------- ---- -------------- ---------- ----
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 1.20x 1.21x
interest-earning
assets to
interest-bearing
liabilities
Finward Bancorp
Quarterly Financial Report
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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
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Consolidated Statements
of Income
(Dollars in thousands) Quarter Ended,
March December September
(unaudited) 31, 31, 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 $(579.SI)$ - 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
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Asset Quality
(Dollars in thousands)
March December September June
(unaudited) 31, 31, 30, 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
Minimum Required
(Dollars in thousands) To Be
Minimum Well Capitalized
(unaudited) Required For Under Prompt
Capital
Adequacy Corrective Action
Actual Purposes 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,
----------------------------------------------------------------------
March 31, December 31, September June 30, March 31,
(unaudited) 2025 2024 30, 2024 2024 2024
----------------------- ------------ ------------ ------------ ------------ --------------
Calculation of tangible common equity
Total stockholder's
equity $ 151,807 $ 151,414 $ 159,555 $ 148,631 $ 151,581
Goodwill (22,395) (22,395) (22,395) (22,395) (22,395)
Other intangibles (1,635) (1,860) (2,203) (2,555) (2,911)
Tangible common equity $ 127,777 $ 127,159 $ 134,957 $ 123,681 $ 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
Accumulated other
comprehensive loss 58,244 58,084 48,241 58,939 56,313
Tangible common equity
adjusted for
accumulated other
comprehensive loss $ 186,021 $ 185,243 $ 183,198 $ 182,620 $ 182,588
======= ======= ======= ======= =======
Calculation of tangible book value per share
Tangible common equity $ 127,777 $ 127,159 $ 134,957 $ 123,681 $ 126,275
Shares outstanding 4,324,485 4,313,698 4,313,940 4,313,940 4,310,251
Tangible book value per
diluted share $ 29.55 $ 29.48 $ 31.28 $ 28.67 $ 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
Shares outstanding 4,324,485 4,313,698 4,313,940 4,313,940 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
======= ======= ======= ======= =======
Calculation of tangible common equity to total assets
Tangible common equity $ 127,777 $ 127,159 $ 134,957 $ 123,681 $ 126,275
Total assets 2,039,714 2,060,699 2,074,662 2,077,067 2,071,782
Tangible common equity
to total assets 6.26% 6.17% 6.51% 5.95% 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
Total assets 2,039,714 2,060,699 2,074,662 2,077,067 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%
============ ============ ============ ============ ==============
Calculation of tax adjusted net interest margin
Net interest income $ 13,313 $ 12,607 $ 12,006 $ 12,054 $ 11,780
Tax adjusted interest
on securities and
loans 670 674 678 677 699
Adjusted net interest
income $ 13,983 13,281 12,684 12,731 $ 12,479
------- ----------- ----------- ----------- -------
Total average earning
assets 1,895,847 1,905,353 1,910,731 1,906,998 1,945,501
Tax adjusted net
interest margin 2.95% 2.79% 2.66% 2.67% 2.57%
============ ============ ============ ============ ==============
Efficiency ratio
Total non-interest
expense $ 14,471 $ 14,247 $ 14,474 $ 14,417 $ 15,004
Total revenue 15,542 16,339 14,873 14,627 25,255
Efficiency ratio 93.11% 87.20% 97.32% 98.56% 59.41%
============ ============ ============ ============ ==============
(END) Dow Jones Newswires
April 30, 2025 17:36 ET (21:36 GMT)
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