FNWD 8-K
Finward Bancorp (FNWD)
8-K
2026-07-28
For: 2026-07-28
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Added on
July 28, 2026
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
______________________________________________________________
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): July 28, 2026
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||||||
(Address of principal executive offices) (Zip Code)
(219 ) 836-4400
(Registrant's telephone number, including area code)
N/A
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company o
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
Item 2.02. Results of Operations and Financial Condition
On July 28, 2026, Finward Bancorp (the “Bancorp”) issued a press release reporting its unaudited financial results for the quarter ended June 30, 2026. A copy of the press release is filed as Exhibit 99.1 to this report and is incorporated herein by reference.
The information in Item 2.02 of this Current Report on Form 8-K and Exhibit 99.1 attached hereto is being “furnished” and will not, except to the extent required by applicable law or regulation, be deemed “filed” by the Bancorp for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (“Exchange Act”), or otherwise subject to the liabilities of that section, nor will any of such information or exhibits be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act.
Item 9.01. Financial Statements and Exhibits.
(d)Exhibits.
| 99.1 | |||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | ||||
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date: July 28, 2026
| FINWARD BANCORP | |||||||||||
| By: | /s/ Benjamin L. Schmitt | ||||||||||
| Name: Benjamin L. Schmitt | |||||||||||
| Title: Executive Vice President, Chief Financial Officer and Treasurer | |||||||||||
1
Exhibit 99.1
July 28, 2026
Finward Bancorp Announces Second Quarter 2026 Results
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 $2.1 million, or $0.48 per diluted share,
for the quarter ended June 30, 2026, as compared to $2.2 million, or $0.52 per diluted share, for the quarter ended
March 31, 2026. Selected performance metrics are as follows for the periods presented:
Performance Ratios | |||||||||
Quarter ended | |||||||||
6/30/2026 | 3/31/2026 | 12/31/2025 | 9/30/2025 | 6/30/2025 | |||||
Return on equity | 4.74% | 5.00% | 4.66% | 8.96% | 5.66% | ||||
Return on assets | 0.42% | 0.44% | 0.39% | 0.68% | 0.42% | ||||
Net interest margin, tax-equivalent (non-GAAP) | 3.37% | 3.35% | 3.32% | 3.18% | 3.11% | ||||
Non-interest income/average assets | 0.48% | 0.48% | 0.29% | 0.57% | 0.53% | ||||
Non-interest expense/average assets | 2.95% | 2.93% | 2.90% | 2.74% | 2.90% | ||||
Efficiency ratio | 84.52% | 84.45% | 89.50% | 81.22% | 88.92% | ||||
"Despite overhead impacts from merger-related expenses and a previously disclosed branch closure, we showed continued
progress in key areas this quarter. Results were supported by solid loan growth, stable deposit funding, and continued
momentum across the organization. These results reflect the dedication of our team and the strength of the relationships we
have built throughout Northwest Indiana and Chicagoland, and I am proud of what our team has accomplished together,"
said Benjamin Bochnowski, Chief Executive Officer. "The quarter was also highlighted by the announcement of our
planned merger with First Financial. This transaction recognizes the value of our franchise and positions our customers,
employees, communities, and shareholders to benefit from an even stronger banking organization in the years ahead. While
we are excited about the opportunities this partnership creates, our near-term priorities are clear: serving customers,
maintaining strong credit quality, and preparing for a successful combination with First Financial."
Highlights of the current period include:
•Net Interest Margin - The net interest margin for the quarter ended June 30, 2026 was 3.25% compared to 3.23% for
the quarter ended March 31, 2026. Net interest margin on a tax-equivalent basis (a non-GAAP measure) for the quarter
ended June 30, 2026 was 3.37%, as compared to 3.35% for the quarter ended March 31, 2026. Net interest margin
increased from the prior quarter primarily due to continued repricing and maturity of the existing loan portfolio, as
well as strength in new loan originations.
•Funding - As of June 30, 2026, deposits totaled $1.73 billion, an increase of $13.5 million, or 0.8% compared with
March 31, 2026 balances, which totaled $1.72 billion. As of June 30, 2026, non-interest-bearing deposits totaled
$270.7 million, a decrease of $8.0 million. Core deposits totaled $1.2 billion at both June 30, 2026 and March 31,
2026. Core deposits include checking, savings, and money market accounts and represented 71.3% of the Bancorp’s
total deposits at June 30, 2026. As of June 30, 2026, balances for certificates of deposit totaled $497.4 million,
compared to $488.8 million on March 31, 2026, an increase of $8.6 million or 1.8%. The increase in total portfolio
deposits is primarily related to cyclical flows and continued adjustments to deposit pricing. In addition, as of June 30,
2026, borrowings, federal funds purchased and repurchase agreements totaled $95.3 million, an increase of $4.5
million or 4.9%, compared to March 31, 2026. The increase in borrowings was primarily attributable to new FHLB
advances in conjunction with increased loan origination during the quarter.
As of June 30, 2026, 72.5% of our deposits are fully FDIC insured, and another 7.8% 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 June 30, 2026, the Bancorp had available liquidity of $604 million including borrowing capacity from the FHLB
and Federal Reserve facilities.
2
Exhibit 99.1
•Securities Portfolio - Securities available for sale balances increased by $2.5 million to $310.2 million as of June 30,
2026, compared to $307.7 million as of March 31, 2026. The yield on the securities portfolio increased to 2.27% for
the three months ended June 30, 2026 from 2.22% for the three months ended March 31, 2026. The increase in
securities available for sale was primarily attributable to a decrease in the negative fair value adjustment to securities.
The Bank did not sell or purchase any securities during the quarter.
•Lending - The Bank’s aggregate loan portfolio totaled $1.50 billion on June 30, 2026 and $1.46 billion on March 31,
2026. During the three months ended June 30, 2026, the Bank originated $81.3 million in new commercial loans,
compared to $37.4 million during the three months ended March 31, 2026, based on strength experienced in the
lending pipeline, specifically within commercial business and commercial real estate portfolios. At June 30, 2026, the
Bancorp’s portfolio loan balances in commercial real estate owner occupied properties totaled $262.4 million or 17.4%
of loans receivable and commercial real estate non-owner occupied properties totaled $334.9 million or 22.3% of loans
receivable. Of the $334.9 million in commercial real estate non-owner occupied properties balances, loans
collateralized by office buildings represented $41.2 million or 2.7% of total loan balances.
•Asset Quality - At June 30, 2026, non-performing loans totaled $16.5 million, compared to $12.4 million at March 31,
2026, an increase of $4.2 million or 33.8%. The Bank’s ratio of non-performing loans to total loans was 1.10% at
June 30, 2026, compared to 0.85% at March 31, 2026. The Bank’s ratio of non-performing assets to total assets was
0.90% at June 30, 2026 and 0.71% at March 31, 2026. The non-performing balance increases are driven by a variety of
credits and not due to concentrations or an indication of overall economic stress within our customer base or footprint.
The increase in non-performers consisted of twelve loans from eleven different relationships, averaging $417 thousand
per loan across commercial real estate, multifamily and residential real estate. Management maintains a vigilant
oversight of nonperforming loans through proactive relationship management. The Bank has no known credit
exposures to non-depositary financial institutions at this time.
The allowance for credit losses (ACL) on loans totaled $17.7 million at June 30, 2026, or 1.18% of total loans
receivable, compared to $17.3 million at March 31, 2026, or 1.19% of total loans receivable, an increase of $409
thousand or 2.37%. The Bank's unused commitment reserve, included in other liabilities, totaled $1.9 million at
June 30, 2026, compared to $2.0 million at March 31, 2026, a decrease of $114 thousand or 5.6%.
For the quarter ended June 30, 2026, the Bank recorded a net provision for credit loss totaling $264 thousand based on
quarterly growth in certain loan segment balances and other factors within the Bank's ACL modeling. The second
quarter's provision consisted of a $378 thousand provision for credit losses on loans, and a $114 thousand reversal of
credit losses on unused commitments. For the quarter ended June 30, 2026, net loan recoveries totaled $31 thousand,
compared to net loan recoveries of $3 thousand for the quarter ended March 31, 2026. The allowance for credit losses
as a percentage of non-performing loans, or coverage ratio, was 106.9% at June 30, 2026, compared to 139.7% at
March 31, 2026.
•Operating Income and Expenses - Non-interest income as a percentage of average assets was 0.48% for both the
quarter ended June 30, 2026 and March 31, 2026. Total non-interest expense increased slightly from the prior quarter,
while non-interest expense as a percentage of average assets was 2.95% for the quarter ended June 30, 2026, as
compared to 2.93% for the quarter ended March 31, 2026. The aggregate reduction in non-interest income as
compared to the prior quarter was due to a $180 thousand loss associated with the closure of one of the Bancorp's
leased branch locations. The increase in non-interest expense quarter over quarter was primarily attributable to
compensation and benefits and seasonality of certain professional and outside services expenses.
•Capital Adequacy - The Bank’s tier 1 leverage ratio was 9.31% as of June 30, 2026 and 9.24% as of March 31, 2026.
The Bank’s capital continues to exceed all applicable regulatory capital requirements. The Bancorp’s tangible book
value per share (non-GAAP) was $35.75 at June 30, 2026, up from $34.39 as of March 31, 2026. Tangible common
equity to tangible assets (non-GAAP) was 7.68% at June 30, 2026, up from 7.48% as of March 31, 2026.
3
Exhibit 99.1
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 book value per share, tangible common equity/tangible assets, net interest
margin on a tax-equivalent basis, and efficiency ratio which can vary from period to period, provides a better comparison
of period to period operating performance. The net interest income and net interest margin on a tax-equivalent basis
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 corporate 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 the "Reconciliation of non-GAAP Financial Measures" below for more
information.
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 24 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; risks related to the development and use
of artificial intelligence (AI); 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; inflation; 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.
4
Exhibit 99.1
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
5
Finward Bancorp Exhibit 99.1
Second Quarter 2026 Financial Results (unaudited)
Performance Ratios
Quarter Ended | Six Months Ended | ||||||||||||
6/30/2026 | 3/31/2026 | 12/31/2025 | 9/30/2025 | 6/30/2025 | 6/30/2026 | 6/30/2025 | |||||||
Return on equity | 4.74% | 5.00% | 4.66% | 8.96% | 5.66% | 4.87% | 3.39% | ||||||
Return on assets | 0.42% | 0.44% | 0.39% | 0.68% | 0.42% | 0.43% | 0.25% | ||||||
Yield on loans | 5.55% | 5.50% | 5.64% | 5.49% | 5.36% | 5.53% | 5.31% | ||||||
Yield on security investments | 2.27% | 2.22% | 2.29% | 2.40% | 2.42% | 2.25% | 2.40% | ||||||
Total yield on earning assets | 4.93% | 4.86% | 4.96% | 4.91% | 4.82% | 4.90% | 4.77% | ||||||
Cost of interest-bearing deposits | 1.98% | 1.92% | 2.09% | 2.16% | 2.12% | 1.95% | 2.14% | ||||||
Cost of federal funds purchased and repurchase agreements | 2.82% | 2.85% | 3.12% | 3.37% | 3.32% | 2.84% | 3.34% | ||||||
Cost of borrowed funds | 3.80% | 3.70% | 3.70% | 3.64% | 3.91% | 3.75% | 4.01% | ||||||
Total cost of interest-bearing liabilities | 2.06% | 2.00% | 2.16% | 2.25% | 2.22% | 2.03% | 2.25% | ||||||
Net interest margin | 3.25% | 3.23% | 3.18% | 3.04% | 2.97% | 3.24% | 2.89% | ||||||
Net interest margin, tax-equivalent (non-GAAP) (1) | 3.37% | 3.35% | 3.32% | 3.18% | 3.11% | 3.36% | 3.03% | ||||||
Non-interest income/average assets | 0.48% | 0.48% | 0.29% | 0.57% | 0.53% | 0.48% | 0.48% | ||||||
Non-interest expense/average assets | 2.95% | 2.93% | 2.90% | 2.74% | 2.90% | 2.95% | 2.86% | ||||||
Efficiency ratio (non-GAAP) (1) | 84.52% | 84.45% | 89.50% | 81.22% | 88.92% | 84.48% | 90.95% | ||||||
Non-performing assets to total assets | 0.90% | 0.71% | 0.65% | 0.76% | 0.74% | 0.90% | 0.74% | ||||||
Non-performing loans to total loans | 1.10% | 0.85% | 0.77% | 0.94% | 0.91% | 1.10% | 0.91% | ||||||
Allowance for credit losses to non-performing loans | 106.92% | 139.72% | 156.84% | 129.41% | 133.01% | 106.92% | 133.01% | ||||||
Allowance for credit losses to loans receivable | 1.18% | 1.19% | 1.21% | 1.22% | 1.22% | 1.18% | 1.22% | ||||||
Net charge-offs (recoveries) as a percentage of average loans receivable | (0.01%) | 0.00% | 0.08% | 0.07% | (0.11%) | (0.01)% | (0.05)% | ||||||
Basic earnings per share | $0.49 | $0.52 | $0.46 | $0.82 | $0.50 | $1.01 | $0.61 | ||||||
Diluted earnings per share | $0.48 | $0.52 | $0.46 | $0.81 | $0.50 | $1.00 | $0.61 | ||||||
Weighted average common shares outstanding—basic | 4,280,844 | 4,276,530 | 4,273,421 | 4,273,022 | 4,271,952 | 4,278,699 | 4,269,478 | ||||||
Weighted average common shares outstanding—diluted | 4,319,052 | 4,302,206 | 4,301,462 | 4,299,007 | 4,291,319 | 4,316,606 | 4,287,877 | ||||||
Stockholders' equity to total assets | 8.74% | 8.56% | 8.64% | 8.06% | 7.48% | 8.74% | 7.48% | ||||||
Tangible common equity to tangible assets (non-GAAP) (1) | 7.68% | 7.48% | 7.56% | 6.99% | 6.41% | 7.68% | 6.41% | ||||||
Book value per share | $41.15 | $39.81 | $40.37 | $38.24 | $35.67 | $41.15 | $35.67 | ||||||
Tangible common book value per share (non-GAAP) (1) | $35.75 | $34.39 | $34.92 | $32.77 | $30.16 | $35.75 | $30.16 | ||||||
Closing stock price | $36.78 | $36.30 | $35.19 | $32.09 | $27.62 | $35.19 | $27.62 | ||||||
Dividends declared per common share | $0.12 | $0.12 | $0.12 | $0.12 | $0.12 | $0.24 | $0.12 | ||||||
(1)See the reconciliation of these non-GAAP measures to the most directly comparable GAAP measures on pg 13.
6
Finward Bancorp Exhibit 99.1
Second Quarter 2026 Financial Results (unaudited)
Average Balances, Interest, Rates
Quarter Ended | |||||||||||||||||
June 30, 2026 | March 31, 2026 | December 31, 2025 | |||||||||||||||
(Dollars in thousands) | Average Balance | Interest | Yield/ Rate | Average Balance | Interest | Yield/ Rate | Average Balance | Interest | Yield/Rate | ||||||||
ASSETS | |||||||||||||||||
Interest bearing deposits in other financial institutions | $78,886 | $718 | 3.64% | $96,250 | $949 | 3.94% | $100,035 | $903 | 3.61% | ||||||||
Federal funds sold | 1,046 | 8 | 3.06% | 1,523 | 11 | 2.89% | 1,113 | 10 | 3.59% | ||||||||
Securities available-for-sale | 309,251 | 1,757 | 2.27% | 318,670 | 1,771 | 2.22% | 327,747 | 1,877 | 2.29% | ||||||||
Loans receivable | 1,474,063 | 20,468 | 5.55% | 1,445,921 | 19,871 | 5.50% | 1,454,174 | 20,496 | 5.64% | ||||||||
Federal Home Loan Bank stock | 6,547 | 114 | 6.97% | 6,547 | 119 | 7.27% | 6,547 | 126 | 7.70% | ||||||||
Total interest earning assets | 1,869,793 | $23,065 | 4.93% | 1,868,911 | $22,721 | 4.86% | 1,889,616 | $23,412 | 4.96% | ||||||||
Cash and non-interest bearing deposits in other financial institutions | 15,504 | 21,331 | 23,385 | ||||||||||||||
Allowance for credit losses | (17,418) | (17,608) | (18,049) | ||||||||||||||
Other non-interest bearing assets | 143,484 | 143,452 | 146,675 | ||||||||||||||
Total assets | $2,011,363 | $2,016,086 | $2,041,627 | ||||||||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||||||||
Interest-bearing deposits | $1,446,072 | $7,159 | 1.98% | $1,447,994 | $6,959 | 1.92% | $1,458,748 | $7,605 | 2.09% | ||||||||
Federal funds purchased and repurchase agreements | 33,076 | 233 | 2.82% | 38,113 | 272 | 2.85% | 40,968 | 317 | 3.10% | ||||||||
Borrowed funds | 51,925 | 493 | 3.80% | 45,334 | 419 | 3.70% | 48,089 | 448 | 3.73% | ||||||||
Total interest bearing liabilities | 1,531,073 | $7,885 | 2.06% | 1,531,441 | $7,650 | 2.00% | 1,547,805 | $8,370 | 2.16% | ||||||||
Non-interest bearing deposits | 268,540 | 270,626 | 288,073 | ||||||||||||||
Other non-interest bearing liabilities | 35,243 | 34,588 | 35,588 | ||||||||||||||
Total liabilities | 1,834,856 | 1,836,655 | 1,871,466 | ||||||||||||||
Total stockholders' equity | 176,507 | 179,431 | 170,161 | ||||||||||||||
Total liabilities and stockholders' equity | $2,011,363 | $2,016,086 | $2,041,627 | ||||||||||||||
Net interest income | $15,180 | $15,071 | $15,042 | ||||||||||||||
Return on average assets | 0.42% | 0.44% | 0.39% | ||||||||||||||
Return on average equity | 4.74% | 5.00% | 4.66% | ||||||||||||||
Net interest margin | 3.25% | 3.23% | 3.18% | ||||||||||||||
Net interest margin, tax-equivalent (non-GAAP)(1) | 3.37% | 3.35% | 3.32% | ||||||||||||||
Net interest spread | 2.87% | 2.86% | 2.80% | ||||||||||||||
Ratio of interest-earning assets to interest-bearing liabilities | 1.22x | 1.22x | 1.22x | ||||||||||||||
(1)See the reconciliation of non-GAAP measures to the most directly comparable GAAP measures on pg 13.
7
Finward Bancorp Exhibit 99.1
Second Quarter 2026 Financial Results (unaudited)
Consolidated Balance Sheets
As of | |||||||||
(Dollars in thousands) | 6/30/2026 | 3/31/2026 | 12/31/2025 | 9/30/2025 | 6/30/2025 | ||||
ASSETS | |||||||||
Cash and non-interest bearing deposits in other financial institutions | $17,384 | $15,758 | $18,265 | $19,458 | $23,027 | ||||
Interest bearing deposits in other financial institutions | 76,270 | 102,997 | 101,382 | 84,157 | 79,976 | ||||
Federal funds sold | 988 | - | - | 563 | 411 | ||||
Total cash and cash equivalents | 94,642 | 118,755 | 119,647 | 104,178 | 103,414 | ||||
Securities available-for-sale | 310,198 | 307,686 | 316,227 | 335,150 | 327,845 | ||||
Loans held-for-sale | 1,083 | - | 1,096 | 2,641 | 834 | ||||
Loans receivable, net of deferred fees and costs | 1,503,793 | 1,455,118 | 1,450,387 | 1,473,774 | 1,484,278 | ||||
Less: allowance for credit losses | (17,694) | (17,285) | (17,506) | (17,977) | (18,184) | ||||
Net loans receivable | 1,486,099 | 1,437,833 | 1,432,881 | 1,455,797 | 1,466,094 | ||||
Federal Home Loan Bank stock | 6,547 | 6,547 | 6,547 | 6,547 | 6,547 | ||||
Accrued interest receivable | 7,671 | 7,700 | 7,781 | 7,585 | 7,651 | ||||
Premises and equipment | 43,932 | 44,315 | 44,976 | 45,544 | 46,179 | ||||
Cash value of bank owned life insurance | 34,010 | 33,786 | 33,586 | 33,843 | 33,932 | ||||
Goodwill | 22,395 | 22,395 | 22,395 | 22,395 | 22,395 | ||||
Other intangible assets | 984 | 1,076 | 1,172 | 1,273 | 1,414 | ||||
Other assets | 33,145 | 35,063 | 34,873 | 37,771 | 41,606 | ||||
Total assets | $2,040,706 | $2,015,156 | $2,021,181 | $2,052,724 | $2,057,911 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||
Deposits: | |||||||||
Non-interest bearing | $270,682 | $278,705 | $267,441 | $280,296 | $271,172 | ||||
Interest bearing | 1,461,862 | 1,440,366 | 1,459,530 | 1,470,350 | 1,483,678 | ||||
Total | 1,732,544 | 1,719,071 | 1,726,971 | 1,750,646 | 1,754,850 | ||||
Federal funds purchased and repurchase agreements | 30,301 | 40,815 | 39,703 | 48,426 | 48,331 | ||||
Borrowed funds | 65,000 | 50,000 | 45,000 | 55,000 | 65,000 | ||||
Accrued expenses and other liabilities | 34,574 | 32,870 | 34,844 | 33,157 | 35,477 | ||||
Total liabilities | 1,862,419 | 1,842,756 | 1,846,518 | 1,887,229 | 1,903,658 | ||||
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(1) | - | - | - | - | - | ||||
Additional paid-in capital | 70,530 | 70,397 | 70,331 | 70,233 | 70,263 | ||||
Accumulated other comprehensive loss | (41,532) | (45,713) | (41,662) | (49,266) | (57,560) | ||||
Retained earnings | 149,289 | 147,716 | 145,994 | 144,528 | 141,550 | ||||
Total stockholders' equity | 178,287 | 172,400 | 174,663 | 165,495 | 154,253 | ||||
Total liabilities and stockholders' equity | $2,040,706 | $2,015,156 | $2,021,181 | $2,052,724 | $2,057,911 | ||||
(1) Shares of common stock issued and outstanding were 4,333,002 at 6/30/2026; 4,330,486 at 3/31/2026; 4,326,747 at 12/31/2025; 4,327,511 at
9/30/2025; and 4,324,889 at 6/30/2025.
8
Finward Bancorp Exhibit 99.1
Second Quarter 2026 Financial Results (unaudited)
Consolidated Statements of Income
Quarter Ended | |||||||||
(Dollars in thousands, except per share data) | 6/30/2026 | 3/31/2026 | 12/31/2025 | 9/30/2025 | 6/30/2025 | ||||
Interest income: | |||||||||
Loans | $20,468 | $19,871 | $20,496 | $20,246 | $19,940 | ||||
Securities & short-term investments | 2,597 | 2,850 | 2,916 | 3,094 | 2,730 | ||||
Total interest income | 23,065 | 22,721 | 23,412 | 23,340 | 22,670 | ||||
Interest expense: | |||||||||
Deposits | 7,159 | 6,959 | 7,605 | 7,996 | 7,780 | ||||
Borrowings | 726 | 691 | 765 | 901 | 945 | ||||
Total interest expense | 7,885 | 7,650 | 8,370 | 8,897 | 8,725 | ||||
Net interest income | 15,180 | 15,071 | 15,042 | 14,443 | 13,945 | ||||
Provision for (benefit from) credit losses | 264 | 55 | (84) | (301) | (274) | ||||
Net interest income after provision for credit losses | 14,916 | 15,016 | 15,126 | 14,744 | 14,219 | ||||
Non-interest income: | |||||||||
Fees and service charges | 1,331 | 1,295 | 1,485 | 1,463 | 1,330 | ||||
Wealth management operations | 748 | 661 | 659 | 759 | 696 | ||||
Gain (loss) on tax credit investment | - | - | - | 23 | - | ||||
Gain (loss) on sale of loans held-for-sale, net | 228 | 257 | 346 | 265 | 378 | ||||
Gain (loss) on sale of securities, net | - | - | (1,577) | - | - | ||||
Bank owned life insurance | 223 | 201 | 522 | 439 | 220 | ||||
Gain (loss) on sale of property and equipment | (180) | - | 1 | (56) | - | ||||
Other | 48 | 3 | 37 | 20 | 59 | ||||
Total non-interest income | 2,398 | 2,417 | 1,473 | 2,913 | 2,683 | ||||
Non-interest expense: | |||||||||
Compensation and benefits | 8,033 | 7,591 | 7,573 | 7,330 | 7,313 | ||||
Occupancy and equipment | 1,741 | 1,991 | 2,111 | 2,004 | 1,935 | ||||
Data processing | 1,176 | 1,105 | 1,465 | 1,116 | 1,341 | ||||
Federal deposit insurance premiums | 347 | 381 | 417 | 399 | 471 | ||||
Marketing | 266 | 587 | 230 | 257 | 214 | ||||
Professional and outside services | 1,221 | 1,169 | 906 | 945 | 1,115 | ||||
Technology | 516 | 508 | 521 | 549 | 545 | ||||
Other | 1,557 | 1,436 | 1,558 | 1,497 | 1,852 | ||||
Total non-interest expense | 14,857 | 14,768 | 14,781 | 14,097 | 14,786 | ||||
Income before income taxes | 2,457 | 2,665 | 1,818 | 3,560 | 2,116 | ||||
Income tax expenses (benefit) | 364 | 423 | (166) | 63 | (35) | ||||
Net income | $2,093 | $2,242 | $1,984 | $3,497 | $2,151 | ||||
Earnings per common share: | |||||||||
Basic | $0.49 | $0.52 | $0.46 | $0.82 | $0.50 | ||||
Diluted | $0.48 | $0.52 | $0.46 | $0.81 | $0.50 | ||||
9
Finward Bancorp Exhibit 99.1
Second Quarter 2026 Financial Results (unaudited)
Consolidated Statements of Income (cont'd)
Six Months Ended | |||
(Dollars in thousands, except per share data) | 6/30/2026 | 6/30/2025 | |
Interest income: | |||
Loans | $40,339 | $39,595 | |
Securities & short-term investments | 5,447 | 5,416 | |
Total interest income | 45,786 | 45,011 | |
Interest expense: | |||
Deposits | 14,118 | 15,825 | |
Borrowings | 1,417 | 1,928 | |
Total interest expense | 15,535 | 17,753 | |
Net interest income | 30,251 | 27,258 | |
Provision for (benefit from) credit losses | 319 | 180 | |
Net interest income after provision for credit losses | 29,932 | 27,078 | |
Non-interest income: | |||
Fees and service charges | 2,626 | 2,439 | |
Wealth management operations | 1,409 | 1,315 | |
Gain on tax credit investment | — | 67 | |
Gain on sale of loans held-for-sale, net | 485 | 608 | |
Bank owned life insurance | 424 | 418 | |
Gain (loss) on sale of property and equipment | (180) | - | |
Other | 51 | 65 | |
Total non-interest income | 4,815 | 4,912 | |
Non-interest expense: | |||
Compensation and benefits | 15,624 | 14,685 | |
Occupancy and equipment | 3,732 | 4,046 | |
Data processing | 2,281 | 2,380 | |
Federal deposit insurance premiums | 728 | 904 | |
Marketing | 853 | 300 | |
Professional and outside services | 2,390 | 2,375 | |
Technology | 1,024 | 999 | |
Other | 2,993 | 3,569 | |
Total non-interest expense | 29,625 | 29,258 | |
Income before income taxes | 5,122 | 2,732 | |
Income tax expenses | 787 | 126 | |
Net income | $4,335 | $2,606 | |
Earnings per common share: | |||
Basic | $1.01 | $0.61 | |
Diluted | $1.00 | $0.61 | |
10
Finward Bancorp Exhibit 99.1
Second Quarter 2026 Financial Results (unaudited)
Loans
As of | |||||||||||||||||
(Dollars in thousands) | 6/30/2026 | 3/31/2026 | 12/31/2025 | 9/30/2025 | 6/30/2025 | 6/30/2026 vs 3/31/2026 | 6/30/2026 vs 6/30/2025 | ||||||||||
Residential real estate | $455,882 | $445,097 | $442,443 | $450,007 | $457,248 | $10,785 | 2.4% | $(1,366) | (0.3)% | ||||||||
Home equity | 55,601 | 53,855 | 53,497 | 51,813 | 51,112 | 1,746 | 3.2% | 4,489 | 8.8% | ||||||||
Commercial real estate | 597,364 | 564,613 | 555,594 | 564,558 | 551,091 | 32,751 | 5.8% | 46,273 | 8.4% | ||||||||
Construction and land development | 77,710 | 76,582 | 77,208 | 79,678 | 74,795 | 1,128 | 1.5% | 2,915 | 3.9% | ||||||||
Multifamily | 180,148 | 185,824 | 183,902 | 192,698 | 200,440 | (5,676) | (3.1)% | (20,292) | (10.1)% | ||||||||
Commercial business | 103,281 | 94,160 | 99,304 | 96,192 | 105,636 | 9,121 | 9.7% | (2,355) | (2.2)% | ||||||||
Consumer | 2,036 | 310 | 870 | 348 | 2,347 | 1,726 | 556.8% | (311) | (13.3)% | ||||||||
Manufactured homes | 22,050 | 22,981 | 23,708 | 24,372 | 25,146 | (931) | (4.1)% | (3,096) | (12.3)% | ||||||||
Government | 9,818 | 9,998 | 12,298 | 12,298 | 14,628 | (180) | (1.8)% | (4,810) | (32.9)% | ||||||||
Loans receivable | 1,503,890 | 1,453,420 | 1,448,824 | 1,471,964 | 1,482,443 | 50,470 | 3.5% | 21,447 | 1.4% | ||||||||
Net deferred loan origination costs | 1,006 | 1,723 | 1,606 | 1,719 | 2,012 | (717) | (41.6)% | (1,006) | (50.0)% | ||||||||
Loan clearing funds | (1,103) | (25) | (43) | 91 | (177) | (1,078) | 4312.0% | (926) | 523.2% | ||||||||
Loans receivable, net | $1,503,793 | $1,455,118 | $1,450,387 | $1,473,774 | $1,484,278 | $48,675 | 3.3% | $19,515 | 1.3% | ||||||||
Deposits
As of | |||||||||||||||||
(Dollars in thousands) | 6/30/2026 | 3/31/2026 | 12/31/2025 | 9/30/2025 | 6/30/2025 | 6/30/2026 vs 3/31/2026 | 6/30/2026 vs 6/30/2025 | ||||||||||
Checking | $584,901 | $587,575 | $592,214 | $579,760 | $593,471 | $(2,674) | (0.5)% | $(8,570) | (1.4)% | ||||||||
Savings | 247,054 | 253,408 | 254,055 | 257,058 | 266,070 | (6,354) | (2.5)% | (19,016) | (7.1)% | ||||||||
Money market | 403,140 | 389,274 | 381,111 | 377,155 | 352,616 | 13,866 | 3.6% | 50,524 | 14.3% | ||||||||
Certificates of deposit | 497,449 | 488,814 | 499,591 | 536,673 | 542,693 | 8,635 | 1.8% | (45,244) | (8.3)% | ||||||||
Total deposits | $1,732,544 | $1,719,071 | $1,726,971 | $1,750,646 | $1,754,850 | $13,473 | 0.8% | $(22,306) | (1.3)% | ||||||||
11
Finward Bancorp Exhibit 99.1
Second Quarter 2026 Financial Results (unaudited)
Asset Quality
As of and for the Quarter Ended | |||||||||
(Dollars in thousands) | 6/30/2026 | 3/31/2026 | 12/31/2025 | 9/30/2025 | 6/30/2025 | ||||
Non-accruing loans | $16,549 | $12,371 | $11,162 | $13,892 | $13,526 | ||||
Accruing loans delinquent more than 90 days | - | - | - | - | 145 | ||||
Securities in non-accrual | 1,909 | 1,891 | 1,882 | 1,616 | 1,616 | ||||
Foreclosed real estate | - | 89 | 89 | - | - | ||||
Total nonperforming assets | $18,458 | $14,351 | $13,133 | $15,508 | $15,287 | ||||
Allowance for credit losses (ACL): | |||||||||
ACL specific allowances for collateral dependent loans | $147 | $- | $263 | $912 | $570 | ||||
ACL general allowances for loan portfolio | 17,547 | 17,285 | 17,243 | 17,065 | 17,614 | ||||
Total ACL | $17,694 | $17,285 | $17,506 | $17,977 | $18,184 | ||||
Allowance for Credit Losses
As of and for the Quarter Ended | |||||||||
(Dollars in thousands) | 6/30/2026 | 3/31/2026 | 12/31/2025 | 9/30/2025 | 6/30/2025 | ||||
Beginning allowance for credit losses | $17,285 | $17,506 | $17,977 | $18,184 | $17,955 | ||||
Provision for (benefit from) loan losses | 378 | (224) | (170) | 61 | (185) | ||||
Net (charge-offs) recoveries | 31 | 3 | (301) | (268) | 414 | ||||
Ending allowance for credit losses | $17,694 | $17,285 | $17,506 | $17,977 | $18,184 | ||||
12
Finward Bancorp Exhibit 99.1
Second Quarter 2026 Financial Results (unaudited)
Bank-Level Regulatory Capital Requirements
June 30, 2026 | ||||||||||||
Actual (1) | Minimum Required For Capital Adequacy Purposes | Minimum Required To Be Well Capitalized Under Prompt Corrective Action Regulations | ||||||||||
(Dollars in thousands) | Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||
Common equity tier 1 capital to risk- weighted assets | $189,965 | 11.81% | $72,385 | 4.50% | $104,557 | 6.50% | ||||||
Tier 1 capital to risk-weighted assets | $189,965 | 11.81% | $96,514 | 6.00% | $128,685 | 8.00% | ||||||
Total capital to risk-weighted assets | $209,575 | 13.03% | $128,685 | 8.00% | $160,856 | 10.00% | ||||||
Tier 1 leverage ratio | $189,965 | 9.31% | $81,581 | 4.00% | $101,976 | 5.00% | ||||||
(1) Current quarter ratios are estimated.
13
Finward Bancorp Exhibit 99.1
Second Quarter 2026 Financial Results (unaudited)
Reconciliation of Non-GAAP Performance Measures
Quarter Ended | |||||||||
(Dollars in thousands, except per share amounts) | 6/30/2026 | 3/31/2026 | 12/31/2025 | 9/30/2025 | 6/30/2025 | ||||
Tangible Common Ratios | |||||||||
Stockholder's equity (GAAP) | $178,287 | $172,400 | $174,663 | $165,495 | $154,253 | ||||
Less: Goodwill (GAAP) | (22,395) | (22,395) | (22,395) | (22,395) | (22,395) | ||||
Less: Other intangibles (GAAP) | (984) | (1,076) | (1,172) | (1,273) | (1,414) | ||||
Tangible common equity (non-GAAP) | $154,908 | $148,929 | $151,096 | $141,827 | $130,444 | ||||
Total assets (GAAP) | $2,040,706 | $2,015,156 | $2,021,181 | $2,052,724 | $2,057,911 | ||||
Less: Goodwill (GAAP) | (22,395) | (22,395) | (22,395) | (22,395) | (22,395) | ||||
Less: Other intangibles (GAAP) | (984) | (1,076) | (1,172) | (1,273) | (1,414) | ||||
Tangible assets (non-GAAP) | $2,017,327 | $1,991,685 | $1,997,614 | $2,029,056 | $2,034,102 | ||||
Shares outstanding - end of quarter | 4,333,002 | 4,330,486 | 4,326,747 | 4,327,511 | 4,324,889 | ||||
Common book value per share (GAAP) | $41.15 | $39.81 | $40.37 | $38.24 | $35.67 | ||||
Tangible common book value per share (non-GAAP) | $35.75 | $34.39 | $34.92 | $32.77 | $30.16 | ||||
Total equity to total assets (GAAP) | 8.74% | 8.56% | 8.64% | 8.06% | 7.50% | ||||
Tangible common equity to tangible assets (non-GAAP) | 7.68% | 7.48% | 7.56% | 6.99% | 6.41% | ||||
Calculation of net interest margin, taxable-equivalent basis | |||||||||
Net interest income (GAAP) | $15,180 | $15,071 | $15,042 | $14,443 | $13,945 | ||||
Tax-equivalent adjustment on securities and loans (1) | 580 | 582 | 629 | 663 | 674 | ||||
Net interest income (tax-equivalent basis) | $15,760 | $15,653 | $15,671 | $15,106 | $14,619 | ||||
Total average earning assets | $1,869,793 | $1,868,911 | $1,889,616 | $1,900,066 | $1,879,892 | ||||
Net interest margin | 3.25% | 3.23% | 3.18% | 3.04% | 2.97% | ||||
Net interest margin (tax-equivalent basis) | 3.37% | 3.35% | 3.32% | 3.18% | 3.11% | ||||
Efficiency ratio | |||||||||
Total non-interest expense | $14,857 | $14,768 | $14,781 | $14,097 | $14,786 | ||||
Total revenue | 17,578 | 17,488 | 16,515 | 17,356 | 16,628 | ||||
Efficiency ratio | 84.52% | 84.45% | 89.50% | 81.22% | 88.92% | ||||
(1) The tax equivalent adjustment represents the increase in net interest income needed to reflect the tax-exempt income from certain investment securities
and loans on tax-equivalent basis using a federal statutory corporate rate of 21%.