FNWD 8-K
Finward Bancorp (FNWD)
8-K
2025-07-29
For: 2025-07-29
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Added on
April 10, 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 29, 2025
(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 29, 2025, Finward Bancorp (the “Bancorp”) issued a press release reporting its unaudited financial results for the quarter ended June 30, 2025. A copy of the press release is filed as Exhibit 99.1 to this report and is incorporated herein by reference.
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 29, 2025
| 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 29, 2025
Finward Bancorp Announces Second Quarter 2025 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 $2.2 million, or $0.50 per diluted share,
for the quarter ended June 30, 2025, as compared to $455 thousand, or $0.11 per diluted share, for the quarter ended
March 31, 2025. Selected performance metrics are as follows for the periods presented:
Performance Ratios | |||||||||
Quarter ended | |||||||||
6/30/2025 | 3/31/2025 | 12/31/2024 | 9/30/2024 | 6/30/2024 | |||||
Return on equity | 5.66% | 1.17% | 5.39% | 1.60% | 0.39% | ||||
Return on assets | 0.42% | 0.09% | 0.41% | 0.12% | 0.03% | ||||
Net interest margin, tax-equivalent (non-GAAP) | 3.11% | 2.95% | 2.79% | 2.66% | 2.67% | ||||
Non-interest income/average assets | 0.53% | 0.43% | 0.72% | 0.55% | 0.50% | ||||
Non-interest expense/average assets | 2.90% | 2.81% | 2.75% | 2.80% | 2.79% | ||||
Efficiency ratio | 88.92% | 93.11% | 87.20% | 97.32% | 98.56% | ||||
“Our team has been focused on improving core operating results over the past several quarters, and this quarter has begun
to show the results of those efforts. Net interest margin expanded for another consecutive quarter and is above 3% on a tax-
equivalent basis. Importantly, we have moved Tier 1 capital up above key internal targets, and asset quality has remained
relatively stable. Net recoveries were a strong point, and supported overall profitability and credit quality. Seasonal and
timing factors impacted operating expense and non-interest income, and we see continued opportunity in both areas as the
year moves forward,” said Benjamin Bochnowski, CEO.
Highlights of the current period include:
•Net Interest Margin - The net interest margin for the quarter ended June 30, 2025 was 2.97% compared to 2.81% for
the quarter ended March 31, 2025. Net interest margin on a tax-equivalent basis (a non-GAAP measure) for the quarter
ended June 30, 2025 was 3.11%, as compared to 2.95% for the quarter ended March 31, 2025. The increased net
interest margin from the prior quarter is primarily the result of increased loan yields from repricing, as well as
improved funding costs and mix.
•Funding - As of June 30, 2025, deposits totaled $1.8 billion, an increase of $4.5 million, or 0.3% compared with
March 31, 2025 balances, which also totaled $1.8 billion. As of June 30, 2025, non-interest-bearing deposits totaled
$271.2 million, a decrease of $10.3 million. Core deposits totaled $1.2 billion at June 30, 2025 and March 31, 2025.
Core deposits include checking, savings, and money market accounts and represented 69.1% of the Bancorp’s total
deposits at June 30, 2025. As of June 30, 2025, balances for certificates of deposit totaled $542.7 million, compared to
$544.8 million on March 31, 2025, a decrease of $2.1 million or 0.4%. The increase in total portfolio deposits is
primarily related to cyclical flows and continued adjustments to deposit pricing. In addition, as of June 30, 2025,
borrowings and repurchase agreements totaled $113.3 million, an increase of $11.6 million or 11.4%, compared to
March 31, 2025. The increase in short-term borrowings was the result of cyclical inflows and outflows of interest-
earning assets and interest-bearing liabilities.
As of June 30, 2025, 71.7% of our deposits are fully FDIC insured, and another 8.0% 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, 2025, the Bancorp had available liquidity of $728 million including borrowing capacity from the FHLB
and Federal Reserve facilities.
2
Exhibit 99.1
•Securities Portfolio - Securities available for sale balances decreased by $2.3 million to $327.8 million as of June 30,
2025, compared to $330.1 million as of March 31, 2025. The decrease in securities available for sale was primarily due
to payoffs of collateralized mortgage obligations and residential mortgage-backed securities within the portfolio. The
yield on the securities portfolio increased to 2.42% for the three months ended June 30, 2025 from 2.38% for the three
months ended March 31, 2025. Management did not execute any securities sale transactions during the quarter.
•Lending - The Bank’s aggregate loan portfolio totaled $1.5 billion on both June 30, 2025 and March 31, 2025. During
the three months ended June 30, 2025, the Bank originated $46.1 million in new commercial loans, compared to $36.7
million during the three months ended March 31, 2025. At June 30, 2025, the Bancorp’s portfolio loan balances in
commercial real estate owner occupied properties totaled $251.0 million or 16.9% of total loan balances and
commercial real estate non-owner occupied properties totaled $299.9 million or 20.1% of total loan balances. Of the
$299.9 million in commercial real estate non-owner occupied properties balances, loans collateralized by office
buildings represented $42.1 million or 2.8% of total loan balances.
•Asset Quality - At June 30, 2025, non-performing loans totaled $13.5 million, compared to $12.5 million at March 31,
2025, an increase of $1.0 million or 8.4%. The Bank’s ratio of non-performing loans to total loans was 0.91% at
June 30, 2025, compared to 0.84% at March 31, 2025. The Bank’s ratio of non-performing assets to total assets
increased to 0.74% at June 30, 2025 from 0.69% at March 31, 2025. Management maintains a vigilant oversight of
nonperforming loans through proactive relationship management.
The allowance for credit losses (ACL) on loans totaled $18.2 million at June 30, 2025, or 1.22% of total loans
receivable, compared to $17.9 million at March 31, 2025, or 1.20% of total loans receivable, an increase of $229
thousand or 1.3%. The Bank's unused commitment reserve, included in other liabilities, totaled $2.0 million at June 30,
2025, compared to $2.1 million at March 31, 2025, a decrease of $89 thousand or 4.2%.
For the quarter ended June 30, 2025, the Bank recorded a net benefit from credit loss totaling $274 thousand based on
net loan recoveries, reduction of certain loan and unfunded commitment segment balances, and other factors within the
Bank's ACL modeling. The second quarter's benefit consisted of a $185 thousand reversal for credit losses on loans,
and a $89 thousand reversal of credit losses on unused commitments. For the quarter ended June 30, 2025, net loan
recoveries totaled $414 thousand, compared to net charge-offs of $33 thousand for the quarter ended March 31, 2025.
The allowance for credit losses as a percentage of non-performing loans, or coverage ratio, was 133.0% at June 30,
2025, compared to 143.8% at March 31, 2025.
•Operating Expenses - Non-interest expense as a percentage of average assets was 2.90% for the quarter ended
June 30, 2025, as compared to 2.81% for the quarter ended March 31, 2025. The increase in non-interest expenses
quarter over quarter was primarily attributable to higher data processing expenses and higher marketing expenses. The
Bank remains focused on identifying additional operating efficiencies and third-party expense reductions.
•Capital Adequacy - As of June 30, 2025, the Bank’s tier 1 leverage ratio was 8.69%, an improvement of 0.21%
compared to 8.48% at March 31, 2025. 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 (non-GAAP) was $30.16 at
June 30, 2025, up from $29.55 as of March 31, 2025. Tangible common equity to total assets (non-GAAP) was 6.32%
at June 30, 2025, up from 6.26% as of March 31, 2025. Excluding accumulated other comprehensive losses, tangible
book value per share (non-GAAP) increased to $43.47 as of June 30, 2025, from $43.02 as of March 31, 2025.
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 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, tangible common equity adjusted for other comprehensive loss/total 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 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; risks related to the development and use
of artificial intelligence (AI); 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; 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
4
Exhibit 99.1
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
5
Finward Bancorp Exhibit 99.1
Second Quarter 2025 Financial Results (unaudited)
Performance Ratios
Quarter Ended | Six Months Ended | ||||||||||||
6/30/2025 | 3/31/2025 | 12/31/2024 | 9/30/2024 | 6/30/2024 | 6/30/2025 | 6/30/2024 | |||||||
Return on equity | 5.66% | 1.17% | 5.39% | 1.60% | 0.39% | 3.39% | 12.81% | ||||||
Return on assets | 0.42% | 0.09% | 0.41% | 0.12% | 0.03% | 0.25% | 0.91% | ||||||
Yield on loans | 5.36% | 5.25% | 5.27% | 5.22% | 5.11% | 5.31% | 5.06% | ||||||
Yield on security investments | 2.42% | 2.38% | 2.34% | 2.37% | 2.43% | 2.40% | 2.40% | ||||||
Total yield on earning assets | 4.82% | 4.71% | 4.74% | 4.70% | 4.64% | 4.77% | 4.58% | ||||||
Cost of interest-bearing deposits | 2.12% | 2.17% | 2.41% | 2.47% | 2.37% | 2.14% | 2.37% | ||||||
Cost of repurchase agreements | 3.32% | 3.35% | 3.65% | 4.04% | 3.86% | 3.34% | 3.87% | ||||||
Cost of borrowed funds | 3.91% | 4.12% | 4.31% | 4.56% | 4.95% | 4.01% | 4.69% | ||||||
Total cost of interest-bearing liabilities | 2.22% | 2.28% | 2.53% | 2.63% | 2.55% | 2.25% | 2.53% | ||||||
Net interest margin | 2.97% | 2.81% | 2.65% | 2.53% | 2.53% | 2.89% | 2.47% | ||||||
Net interest margin, tax-equivalent (non-GAAP) (1) | 3.11% | 2.95% | 2.79% | 2.66% | 2.67% | 3.03% | 2.62% | ||||||
Non-interest income/average assets | 0.53% | 0.43% | 0.72% | 0.55% | 0.50% | 0.48% | 1.54% | ||||||
Non-interest expense/average assets | 2.90% | 2.81% | 2.75% | 2.80% | 2.79% | 2.86% | 2.83% | ||||||
Efficiency ratio (non-GAAP) (1) | 88.92% | 93.11% | 87.20% | 97.32% | 98.56% | 90.95% | 73.77% | ||||||
Non-performing assets to total assets | 0.74% | 0.69% | 0.74% | 0.73% | 0.61% | 0.74% | 0.61% | ||||||
Non-performing loans to total loans | 0.91% | 0.84% | 0.91% | 0.92% | 0.75% | 0.91% | 0.75% | ||||||
Allowance for credit losses to non-performing loans | 133.01% | 143.84% | 123.10% | 134.12% | 161.17% | 133.01% | 161.17% | ||||||
Allowance for credit losses to loans receivable | 1.22% | 1.20% | 1.12% | 1.23% | 1.22% | 1.22% | 1.22% | ||||||
Net charge-offs (recoveries) as a percentage of average loans receivable | (0.11%) | 0.01% | 0.59% | 0.05% | 0.01% | (0.05%) | 0.01% | ||||||
Basic earnings per share | $0.50 | $0.11 | $0.49 | $0.14 | $0.03 | $0.61 | $2.21 | ||||||
Diluted earnings per share | $0.50 | $0.11 | $0.49 | $0.14 | $0.03 | $0.61 | $2.21 | ||||||
Weighted average common shares outstanding—basic | 4,271,952 | 4,266,976 | 4,261,079 | 4,260,809 | 4,259,695 | 4,269,478 | 4,258,181 | ||||||
Weighted average common shares outstanding—diluted | 4,291,319 | 4,284,496 | 4,286,742 | 4,281,148 | 4,271,052 | 4,287,877 | 4,266,415 | ||||||
Stockholders' equity/total assets | 7.48% | 7.44% | 7.35% | 7.69% | 7.16% | 7.48% | 7.16% | ||||||
Tangible common equity to total assets (non-GAAP) (1) | 6.32% | 6.26% | 6.17% | 6.51% | 5.95% | 6.32% | 5.95% | ||||||
Tangible common equity adjusted for accumulated other comprehensive loss to total assets (non-GAAP) (1) | 9.11% | 9.12% | 8.99% | 8.83% | 8.79% | 9.11% | 8.79% | ||||||
Book value per share | $35.67 | $35.10 | $35.10 | $36.99 | $34.45 | $35.67 | $34.45 | ||||||
Tangible common book value per share (non-GAAP) (1) | $30.16 | $29.55 | $29.48 | $31.28 | $28.67 | $30.16 | $28.67 | ||||||
Tangible common book value per share adjusted for accumulated other comprehensive loss (non-GAAP) (1) | $43.47 | $43.02 | $42.94 | $42.47 | $42.33 | $43.47 | $42.33 | ||||||
Closing stock price | $27.62 | $29.10 | $28.11 | $31.98 | $24.52 | $27.62 | $24.52 | ||||||
Dividends declared per common share | $0.12 | $— | $0.12 | $0.12 | $0.12 | $0.12 | $0.24 | ||||||
(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 2025 Financial Results (unaudited)
Average Balances, Interest, Rates
Quarter Ended | |||||||||||||||||
June 30, 2025 | March 31, 2025 | December 31, 2024 | |||||||||||||||
Average Balance | Interest | Yield/ Rate | Average Balance | Interest | Yield/ Rate | Average Balance | Interest | Yield/Rate | |||||||||
ASSETS | |||||||||||||||||
Interest bearing deposits in other financial institutions | $57,749 | $614 | 4.25% | $53,553 | $540 | 4.03% | $50,271 | $650 | 5.17% | ||||||||
Federal funds sold | 868 | 8 | 3.69% | 1,375 | 12 | 3.49% | 891 | 9 | 4.04% | ||||||||
Securities available-for-sale | 327,867 | 1,980 | 2.42% | 336,060 | 1,998 | 2.38% | 343,411 | 2,011 | 2.34% | ||||||||
Loans receivable | 1,486,861 | 19,940 | 5.36% | 1,498,312 | 19,655 | 5.25% | 1,504,233 | 19,802 | 5.27% | ||||||||
Federal Home Loan Bank stock | 6,547 | 128 | 7.82% | 6,547 | 136 | 8.31% | 6,547 | 123 | 7.51% | ||||||||
Total interest earning assets | 1,879,892 | $22,670 | 4.82% | 1,895,847 | $22,341 | 4.71% | 1,905,353 | $22,595 | 4.74% | ||||||||
Cash and non-interest bearing deposits in other financial institutions | 27,192 | 27,919 | 27,360 | ||||||||||||||
Allowance for credit losses | (18,028) | (16,946) | (18,110) | ||||||||||||||
Other non-interest bearing assets | 152,880 | 153,148 | 154,707 | ||||||||||||||
Total assets | $2,041,936 | $2,059,968 | $2,069,310 | ||||||||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||||||||
Interest-bearing deposits | $1,470,225 | $7,780 | 2.12% | $1,481,377 | $8,044 | 2.17% | $1,465,198 | $8,811 | 2.41% | ||||||||
Repurchase agreements | 44,401 | 368 | 3.32% | 41,631 | 349 | 3.35% | 43,372 | 396 | 3.65% | ||||||||
Borrowed funds | 58,995 | 577 | 3.91% | 61,613 | 635 | 4.12% | 72,536 | 781 | 4.31% | ||||||||
Total interest bearing liabilities | 1,573,621 | $8,725 | 2.22% | 1,584,621 | $9,028 | 2.28% | 1,581,106 | $9,988 | 2.53% | ||||||||
Non-interest bearing deposits | 278,620 | 279,013 | 289,467 | ||||||||||||||
Other non-interest bearing liabilities | 37,703 | 40,923 | 42,944 | ||||||||||||||
Total liabilities | 1,889,944 | 1,904,557 | 1,913,517 | ||||||||||||||
Total stockholders' equity | 151,992 | 155,411 | 155,793 | ||||||||||||||
Total liabilities and stockholders' equity | $2,041,936 | $2,059,968 | $2,069,310 | ||||||||||||||
Net interest income | $13,945 | $13,313 | $12,607 | ||||||||||||||
Return on average assets | 0.42% | 0.09% | 0.41% | ||||||||||||||
Return on average equity | 5.66% | 1.17% | 5.39% | ||||||||||||||
Net interest margin | 2.97% | 2.81% | 2.65% | ||||||||||||||
Net interest margin, tax-equivalent (non-GAAP)(1) | 3.11% | 2.95% | 2.79% | ||||||||||||||
Net interest spread | 2.62% | 2.43% | 2.21% | ||||||||||||||
Ratio of interest-earning assets to interest-bearing liabilities | 1.19x | 1.20x | 1.21x | ||||||||||||||
(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 2025 Financial Results (unaudited)
Consolidated Balance Sheets
As of | |||||||||
(Dollars in thousands) | 6/30/2025 | 3/31/2025 | 12/31/2024 | 9/30/2024 | 6/30/2024 | ||||
ASSETS | |||||||||
Cash and non-interest bearing deposits in other financial institutions | $23,027 | $18,563 | $17,883 | $23,071 | $19,061 | ||||
Interest bearing deposits in other financial institutions | 79,976 | 52,829 | 52,047 | 48,025 | 63,439 | ||||
Federal funds sold | 411 | 975 | 654 | 553 | 707 | ||||
Total cash and cash equivalents | 103,414 | 72,367 | 70,584 | 71,649 | 83,207 | ||||
Securities available-for-sale | 327,845 | 330,127 | 333,554 | 350,027 | 339,585 | ||||
Loans held-for-sale | 834 | 2,849 | 1,253 | 2,567 | 1,185 | ||||
Loans receivable, net of deferred fees and costs | 1,489,486 | 1,491,696 | 1,508,976 | 1,508,242 | 1,506,398 | ||||
Less: allowance for credit losses | (18,184) | (17,955) | (16,911) | (18,516) | (18,330) | ||||
Net loans receivable | 1,471,302 | 1,473,741 | 1,492,065 | 1,489,726 | 1,488,068 | ||||
Federal Home Loan Bank stock | 6,547 | 6,547 | 6,547 | 6,547 | 6,547 | ||||
Accrued interest receivable | 7,651 | 7,821 | 7,721 | 7,442 | 7,695 | ||||
Premises and equipment | 46,179 | 46,680 | 47,259 | 47,912 | 48,696 | ||||
Cash value of bank owned life insurance | 33,932 | 33,712 | 33,514 | 33,312 | 33,107 | ||||
Goodwill | 22,395 | 22,395 | 22,395 | 22,395 | 22,395 | ||||
Other intangible assets | 1,414 | 1,635 | 1,860 | 2,203 | 2,555 | ||||
Other assets | 41,470 | 41,840 | 43,947 | 40,882 | 44,027 | ||||
Total assets | $2,062,983 | $2,039,714 | $2,060,699 | $2,074,662 | $2,077,067 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||
Deposits: | |||||||||
Non-interest bearing | $271,172 | $281,461 | $263,324 | $285,157 | $286,784 | ||||
Interest bearing | 1,483,678 | 1,468,923 | 1,497,242 | 1,463,653 | 1,469,970 | ||||
Total | 1,754,850 | 1,750,384 | 1,760,566 | 1,748,810 | 1,756,754 | ||||
Repurchase agreements | 48,331 | 45,053 | 40,116 | 43,038 | 42,973 | ||||
Borrowed funds | 65,000 | 56,657 | 65,000 | 85,000 | 85,000 | ||||
Accrued expenses and other liabilities | 40,549 | 35,813 | 43,603 | 38,259 | 43,709 | ||||
Total liabilities | 1,908,730 | 1,887,907 | 1,909,285 | 1,915,107 | 1,928,436 | ||||
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 | 70,263 | 70,132 | 70,034 | 69,916 | 69,778 | ||||
Accumulated other comprehensive loss | (57,560) | (58,244) | (58,084) | (48,241) | (58,939) | ||||
Retained earnings | 141,550 | 139,919 | 139,464 | 137,880 | 137,792 | ||||
Total stockholders' equity | 154,253 | 151,807 | 151,414 | 159,555 | 148,631 | ||||
Total liabilities and stockholders' equity | $2,062,983 | $2,039,714 | $2,060,699 | $2,074,662 | $2,077,067 | ||||
(1) Shares of common stock issued and outstanding were at 4,324,889 at 6/30/2025; 4,324,485 at 3/31/2025; 4,313,698 at 12/31/24; 4,313,940 at 9/30/24;
and 4,313,940 at 6/30/24.
8
Finward Bancorp Exhibit 99.1
Second Quarter 2025 Financial Results (unaudited)
Consolidated Statements of Income
Quarter Ended | |||||||||
(Dollars in thousands, except per share data) | 6/30/2025 | 3/31/2025 | 12/31/2024 | 9/30/2024 | 6/30/2024 | ||||
Interest income: | |||||||||
Loans | $19,940 | $19,655 | $19,802 | $19,660 | $19,174 | ||||
Securities & short-term investments | 2,730 | 2,686 | 2,793 | 2,812 | 2,953 | ||||
Total interest income | 22,670 | 22,341 | 22,595 | 22,472 | 22,127 | ||||
Interest expense: | |||||||||
Deposits | 7,780 | 8,045 | 8,812 | 8,946 | 8,610 | ||||
Borrowings | 945 | 983 | 1,176 | 1,520 | 1,463 | ||||
Total interest expense | 8,725 | 9,028 | 9,988 | 10,466 | 10,073 | ||||
Net interest income | 13,945 | 13,313 | 12,607 | 12,006 | 12,054 | ||||
Provision for (benefit from) credit losses | (274) | 454 | (579) | - | 76 | ||||
Net interest income after provision for credit losses | 14,219 | 12,859 | 13,186 | 12,006 | 11,978 | ||||
Non-interest income: | |||||||||
Fees and service charges | 1,330 | 1,109 | 1,439 | 1,463 | 1,257 | ||||
Wealth management operations | 696 | 619 | 728 | 731 | 763 | ||||
Gain on tax credit investment | - | 67 | 1,236 | - | - | ||||
Gain on sale of loans held-for-sale, net | 378 | 230 | 328 | 338 | 320 | ||||
Increase in cash value of bank owned life insurance | 220 | 198 | 202 | 205 | 212 | ||||
Gain (loss) on sale of real estate | - | - | (212) | - | 15 | ||||
Other | 59 | 6 | 11 | 130 | 6 | ||||
Total non-interest income | 2,683 | 2,229 | 3,732 | 2,867 | 2,573 | ||||
Non-interest expense: | |||||||||
Compensation and benefits | 7,313 | 7,372 | 6,628 | 6,963 | 7,037 | ||||
Occupancy and equipment | 1,935 | 2,111 | 2,045 | 2,181 | 2,116 | ||||
Data processing | 1,341 | 1,039 | 1,202 | 1,165 | 1,135 | ||||
Federal deposit insurance premiums | 471 | 433 | 457 | 435 | 397 | ||||
Marketing | 214 | 86 | 220 | 209 | 212 | ||||
Professional and outside services | 1,115 | 1,260 | 1,341 | 1,251 | 1,257 | ||||
Technology | 545 | 454 | 509 | 602 | 507 | ||||
Other | 1,852 | 1,717 | 1,845 | 1,668 | 1,756 | ||||
Total non-interest expense | 14,786 | 14,472 | 14,247 | 14,474 | 14,417 | ||||
Income before income taxes | 2,116 | 616 | 2,671 | 399 | 134 | ||||
Income tax expenses (benefit) | (35) | 161 | 569 | (207) | (9) | ||||
Net income | $2,151 | $455 | $2,102 | $606 | $143 | ||||
Earnings per common share: | |||||||||
Basic | $0.50 | $0.11 | $0.49 | $0.14 | $0.03 | ||||
Diluted | $0.50 | $0.11 | $0.49 | $0.14 | $0.03 | ||||
9
Finward Bancorp Exhibit 99.1
Second Quarter 2025 Financial Results (unaudited)
Consolidated Statements of Income (cont'd)
Six Months Ended | |||
(Dollars in thousands, except per share data) | 6/30/2025 | 6/30/2024 | |
Interest income: | |||
Loans | $39,595 | $38,053 | |
Securities & short-term investments | 5,416 | 6,058 | |
Total interest income | 45,011 | 44,111 | |
Interest expense: | |||
Deposits | 15,825 | 17,404 | |
Borrowings | 1,928 | 2,873 | |
Total interest expense | 17,753 | 20,277 | |
Net interest income | 27,258 | 23,834 | |
Provision for credit losses | 180 | 76 | |
Net interest income after provision for credit losses | 27,078 | 23,758 | |
Non-interest income: | |||
Fees and service charges | 2,439 | 2,410 | |
Wealth management operations | 1,315 | 1,396 | |
Gain on tax credit investment | 67 | - | |
Gain on sale of loans held-for-sale, net | 608 | 472 | |
Increase in cash value of bank owned life insurance | 418 | 405 | |
Gain on sale of real estate | - | 11,873 | |
Loss on sale of securities, net | - | (531) | |
Other | 65 | 24 | |
Total non-interest income | 4,912 | 16,049 | |
Non-interest expense: | |||
Compensation and benefits | 14,685 | 14,146 | |
Occupancy and equipment | 4,046 | 4,024 | |
Data processing | 2,380 | 2,305 | |
Federal deposit insurance premiums | 904 | 898 | |
Marketing | 300 | 370 | |
Professional and outside services | 2,375 | 2,814 | |
Technology | 999 | 1,132 | |
Other | 3,569 | 3,732 | |
Total non-interest expense | 29,258 | 29,421 | |
Income before income taxes | 2,732 | 10,386 | |
Income tax expenses | 126 | 963 | |
Net income | $2,606 | $9,423 | |
Earnings per common share: | |||
Basic | $0.61 | $2.21 | |
Diluted | $0.61 | $2.21 | |
10
Finward Bancorp Exhibit 99.1
Second Quarter 2025 Financial Results (unaudited)
Loans
As of | |||||||||||||||||
(Dollars in thousands) | 6/30/2025 | 3/31/2025 | 12/31/2024 | 9/30/2024 | 6/30/2024 | 6/30/2025 vs 3/31/2025 | 6/30/2025 vs 6/30/2024 | ||||||||||
Residential real estate | $456,256 | $458,424 | $467,293 | $471,156 | $475,371 | $(2,168) | (0.5)% | $(19,115) | (4.0)% | ||||||||
Home equity | 51,112 | 49,752 | 49,758 | 49,106 | 48,435 | 1,360 | 2.7% | 2,677 | 5.5% | ||||||||
Commercial real estate | 551,091 | 554,866 | 551,674 | 539,972 | 529,421 | (3,775) | (0.7)% | 21,670 | 4.1% | ||||||||
Construction and land development | 74,895 | 86,728 | 82,874 | 87,923 | 88,699 | (11,833) | (13.6)% | (13,804) | (15.6)% | ||||||||
Multifamily | 206,540 | 204,964 | 212,455 | 218,037 | 219,841 | 1,576 | 0.8% | (13,301) | (6.1)% | ||||||||
Commercial business | 105,636 | 99,519 | 104,246 | 97,900 | 98,402 | 6,117 | 6.1% | 7,234 | 7.4% | ||||||||
Consumer | 2,347 | 504 | 551 | 522 | 611 | 1,843 | 365.7% | 1,736 | 284.1% | ||||||||
Manufactured homes | 25,146 | 25,762 | 26,708 | 27,462 | 28,721 | (616) | (2.4)% | (3,575) | (12.4)% | ||||||||
Government | 14,628 | 9,279 | 11,024 | 12,969 | 14,014 | 5,349 | 57.6% | 614 | 4.4% | ||||||||
Loans receivable | 1,487,651 | 1,489,798 | 1,506,583 | 1,505,047 | 1,503,515 | (2,147) | (0.1)% | (15,864) | (1.1)% | ||||||||
Net deferred loan origination costs | 2,012 | 2,209 | 2,439 | 2,606 | 3,054 | (197) | (8.9)% | (1,042) | (34.1)% | ||||||||
Loan clearing funds | (177) | (311) | (46) | 589 | (171) | 134 | (43.1)% | (6) | 3.5% | ||||||||
Loans receivable, net | $1,489,486 | $1,491,696 | $1,508,976 | $1,508,242 | $1,506,398 | $(2,210) | (0.1)% | $(16,912) | (1.1)% | ||||||||
Deposits
As of | |||||||||||||||||
(Dollars in thousands) | 6/30/2025 | 3/31/2025 | 12/31/2024 | 9/30/2024 | 6/30/2024 | 6/30/2025 vs 3/31/2025 | 6/30/2025 vs 6/30/2024 | ||||||||||
Checking | $593,471 | $589,403 | $591,487 | $579,132 | $603,730 | $4,068 | 0.7% | $(10,259) | (1.7)% | ||||||||
Savings | 266,070 | 274,028 | 275,121 | 279,126 | 288,920 | (7,958) | (2.9)% | (22,850) | (7.9)% | ||||||||
Money market | 352,616 | 342,106 | 333,705 | 328,329 | 322,939 | 10,510 | 3.1% | 29,677 | 9.2% | ||||||||
Certificates of deposit | 542,693 | 544,847 | 560,253 | 562,223 | 541,165 | (2,154) | (0.4)% | 1,528 | 0.3% | ||||||||
Total deposits | $1,754,850 | $1,750,384 | $1,760,566 | $1,748,810 | $1,756,754 | $4,466 | 0.3% | $(1,904) | (0.1)% | ||||||||
11
Finward Bancorp Exhibit 99.1
Second Quarter 2025 Financial Results (unaudited)
Asset Quality
As of and for the Quarter Ended | |||||||||
(Dollars in thousands) | 6/30/2025 | 3/31/2025 | 12/31/2024 | 9/30/2024 | 6/30/2024 | ||||
Non-accruing loans | $13,526 | $12,483 | $13,738 | $13,806 | $11,079 | ||||
Accruing loans delinquent more than 90 days | 145 | - | - | - | 294 | ||||
Securities in non-accrual | 1,616 | 1,630 | 1,419 | 1,440 | 1,371 | ||||
Total nonperforming assets | $15,287 | $14,113 | $15,157 | $15,246 | $12,744 | ||||
Allowance for credit losses (ACL): | |||||||||
ACL specific allowances for collateral dependent loans | $570 | $259 | $284 | $1,821 | $1,327 | ||||
ACL general allowances for loan portfolio | 17,614 | 17,696 | 16,627 | 16,695 | 17,003 | ||||
Total ACL | $18,184 | $17,955 | $16,911 | $18,516 | $18,330 | ||||
Allowance for Credit Losses
As of and for the Quarter Ended | |||||||||
(Dollars in thousands) | 6/30/2025 | 3/31/2025 | 12/31/2024 | 9/30/2024 | 6/30/2024 | ||||
Beginning allowance for credit losses | $17,955 | $16,911 | $18,516 | $18,330 | $18,805 | ||||
Provision for (benefit from) loan losses | (185) | 1,077 | 597 | 372 | (439) | ||||
Net (charge-offs) recoveries | 414 | (33) | (2,202) | (186) | (36) | ||||
Ending allowance for credit losses | $18,184 | $17,955 | $16,911 | $18,516 | $18,330 | ||||
12
Finward Bancorp Exhibit 99.1
Second Quarter 2025 Financial Results (unaudited)
Bank-Level Regulatory Capital Requirements
June 30, 2025 | ||||||||||||
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 | $181,430 | 11.26% | $72,478 | 4.50% | $104,691 | 6.50% | ||||||
Tier 1 capital to risk-weighted assets | $181,430 | 11.26% | $96,638 | 6.00% | $128,850 | 8.00% | ||||||
Total capital to risk-weighted assets | $201,640 | 12.52% | $128,850 | 8.00% | $161,063 | 10.00% | ||||||
Tier 1 leverage ratio | $181,430 | 8.69% | $83,550 | 4.00% | $104,437 | 5.00% | ||||||
(1) Current quarter ratios are estimated.
13
Finward Bancorp Exhibit 99.1
Second Quarter 2025 Financial Results (unaudited)
Reconciliation of Non-GAAP Performance Measures
Quarter Ended | |||||||||
(Dollars in thousands, except per share amounts) | 6/30/2025 | 3/31/2025 | 12/31/2024 | 9/30/2024 | 6/30/2024 | ||||
Tangible Common Ratios | |||||||||
Stockholder's equity (GAAP) | $154,253 | $151,807 | $151,414 | $159,555 | $148,631 | ||||
Less: Goodwill (GAAP) | (22,395) | (22,395) | (22,395) | (22,395) | (22,395) | ||||
Less: Other intangibles (GAAP) | (1,414) | (1,635) | (1,860) | (2,203) | (2,555) | ||||
Tangible common equity (non-GAAP) | $130,444 | $127,777 | $127,159 | $134,957 | $123,681 | ||||
Add: Accumulated other comprehensive loss (GAAP) | 57,560 | 58,244 | 58,084 | 48,241 | 58,939 | ||||
Tangible common equity adjusted for accumulated other comprehensive loss (non-GAAP) (1) | $188,004 | $186,021 | $185,243 | $183,198 | $182,620 | ||||
Total assets (GAAP) | $2,062,983 | $2,039,714 | $2,060,699 | $2,077,067 | $2,071,782 | ||||
Shares outstanding - end of quarter | 4,324,889 | 4,324,485 | 4,313,698 | 4,313,940 | 4,313,940 | ||||
Common book value per share (GAAP) | $35.67 | $35.10 | $35.10 | $36.99 | $34.45 | ||||
Tangible common book value per share (non-GAAP) | $30.16 | $29.55 | $29.48 | $31.28 | $28.67 | ||||
Tangible common book value per share adjusted for accumulated other comprehensive loss (non-GAAP) | $43.47 | $43.02 | $42.94 | $42.47 | $42.33 | ||||
Total equity to total assets (GAAP) | 7.48% | 7.44% | 7.35% | 7.69% | 7.16% | ||||
Tangible common equity to total assets (non-GAAP) | 6.32% | 6.26% | 6.17% | 6.51% | 5.95% | ||||
Tangible common equity adjusted for accumulated other comprehensive loss to total assets (non-GAAP) | 9.11% | 9.12% | 8.99% | 8.83% | 8.79% | ||||
Calculation of net interest margin, taxable-equivalent basis | |||||||||
Net interest income (GAAP) | $13,945 | $13,313 | $12,607 | $12,006 | $12,054 | ||||
Tax-equivalent adjustment on securities and loans (2) | 674 | 670 | 674 | 678 | 677 | ||||
Net interest income (tax-equivalent basis) | $14,619 | $13,983 | $13,281 | $12,684 | $12,731 | ||||
Total average earning assets | $1,879,892 | $1,895,847 | $1,905,333 | $1,910,731 | $1,906,998 | ||||
Net interest margin | 2.97% | 2.81% | 2.65% | 2.53% | 2.53% | ||||
Net interest margin (tax-equivalent basis) | 3.11% | 2.95% | 2.79% | 2.66% | 2.67% | ||||
Efficiency ratio | |||||||||
Total non-interest expense | $14,786 | $14,472 | $14,247 | $14,474 | $14,417 | ||||
Total revenue | 16,628 | 15,542 | 16,339 | 14,873 | 14,627 | ||||
Efficiency ratio | 88.92% | 93.11% | 87.20% | 97.32% | 98.56% | ||||
(1) Tangible common equity adjusted for accumulated other comprehensive loss is a non-GAAP financial measure used by management to evaluate the
Company's capital position without the impact of unrealized losses recorded in accumulated other comprehensive loss. This measure adjusts tangible
common equity by adding back unrealized losses included in accumulated other comprehensive loss.
(2) 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%.