FNWD 8-K
Finward Bancorp (FNWD)
8-K
2026-01-27
For: 2026-01-27
View Original
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): January 27, 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 January 27, 2026, Finward Bancorp (the “Bancorp”) issued a press release reporting its unaudited financial results for the quarter ended December 31, 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: January 27, 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
January 27, 2026
Finward Bancorp Announces Fourth 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 $2.0 million, or $0.46 per diluted share,
for the quarter ended December 31, 2025, as compared to $3.5 million, or $0.81 per diluted share, for the quarter ended
September 30, 2025. Selected performance metrics are as follows for the periods presented:
Performance Ratios | |||||||||
Quarter ended | |||||||||
12/31/2025 | 9/30/2025 | 6/30/2025 | 3/31/2025 | 12/31/2024 | |||||
Return on equity | 4.66% | 8.96% | 5.66% | 1.17% | 5.39% | ||||
Return on assets | 0.39% | 0.68% | 0.42% | 0.09% | 0.41% | ||||
Net interest margin, tax-equivalent (non-GAAP) | 3.32% | 3.18% | 3.11% | 2.95% | 2.79% | ||||
Non-interest income/average assets | 0.29% | 0.57% | 0.53% | 0.43% | 0.72% | ||||
Non-interest expense/average assets | 2.90% | 2.74% | 2.90% | 2.81% | 2.75% | ||||
Efficiency ratio | 89.50% | 81.22% | 88.92% | 93.11% | 87.20% | ||||
“Operational results were significantly stronger in 2025 than 2024, reflecting the execution of successful strategic
initiatives that have strengthened our organization over that time. While we continue to aim higher, these results reflect the
hard work our team has put in throughout the year, " said Benjamin Bochnowski, CEO. "Actions taken in the fourth quarter
are expected to further enhance our financial position, including steps to optimize our balance sheet, reduce risk, increase
net interest margin, and improve efficiency. This included a small securities repositioning, where the Bank sold $26.6
million in primarily municipal securities, generating a $1.6 million pre-tax reduction to our posted fourth quarter results.
Credit quality also remains stable, and the current rate environment remains supportive of continued progress in operational
results in 2026."
Highlights of the current period include:
•Net Interest Margin - The net interest margin for the quarter ended December 31, 2025 was 3.18% compared to
3.04% for the quarter ended September 30, 2025. Net interest margin on a tax-equivalent basis (a non-GAAP measure)
for the quarter ended December 31, 2025 was 3.32%, as compared to 3.18% for the quarter ended September 30, 2025.
The increased net interest margin from the prior quarter is primarily the result of increased loan yields from loan
repricing, as well as reduced deposit costs as a result of the Federal Reserve's continued reduction of federal funds
rates during the quarter.
•Funding - As of December 31, 2025, deposits totaled $1.7 billion, a decrease of $23.7 million, or 1.4% compared with
September 30, 2025 balances, which totaled $1.8 billion. As of December 31, 2025, non-interest-bearing deposits
totaled $267.4 million, a decrease of $12.9 million. Core deposits totaled $1.2 billion at both December 31, 2025 and
September 30, 2025. Core deposits include checking, savings, and money market accounts and represented 71.1% of
the Bancorp’s total deposits at December 31, 2025. As of December 31, 2025, balances for certificates of deposit
totaled $499.6 million, compared to $536.7 million on September 30, 2025, a decrease of $37.1 million or 6.9%. As of
December 31, 2025, the Bank has no remaining brokered deposits. The decrease in total portfolio deposits is primarily
related to cyclical flows, maturity of $20 million in brokered deposits, and continued adjustments to deposit pricing. In
addition, as of December 31, 2025, borrowings and repurchase agreements totaled $84.7 million, a decrease of $18.7
million or 18.1%, compared to September 30, 2025. The decrease in borrowings was the result of certain called
putable FHLB advances occurring during the quarter.
As of December 31, 2025, 71.8% of our deposits are fully FDIC insured, and another 7.3% are further backed by the
Indiana Public Deposit Insurance Fund. The Bancorp’s liquidity position remains strong with solid core deposit
2
Exhibit 99.1
customer relationships, excess cash, debt securities, contractual loan repayments, and access to diversified borrowing
sources. As of December 31, 2025, the Bancorp had available liquidity of $674 million including borrowing capacity
from the FHLB and Federal Reserve facilities.
•Securities Portfolio - Securities available for sale balances decreased by $18.9 million to $316.2 million as of
December 31, 2025, compared to $335.2 million as of September 30, 2025. The yield on the securities portfolio
decreased to 2.29% for the three months ended December 31, 2025 from 2.40% for the three months ended
September 30, 2025. During the fourth quarter, the Bank incurred $1.6 million in securities losses, attributable to the
execution of securities repositioning transactions where the Bank sold securities with a market value of $26.6 million
and an unadjusted book yield of 2.59%.
•Lending - The Bank’s aggregate loan portfolio totaled $1.45 billion on December 31, 2025 and $1.47 billion on
September 30, 2025. During the three months ended December 31, 2025, the Bank originated $68.9 million in new
commercial loans, compared to $62.6 million during the three months ended September 30, 2025. At December 31,
2025, the Bancorp’s portfolio loan balances in commercial real estate owner occupied properties totaled $253.5 million
or 17.4% of total loan balances and commercial real estate non-owner occupied properties totaled $302.1 million or
20.9% of total loan balances. Of the $302.1 million in commercial real estate non-owner occupied properties balances,
loans collateralized by office buildings represented $42.1 million or 2.9% of total loan balances. The decrease in total
portfolio loans is primarily due to customer loan payoffs experienced during the quarter.
•Asset Quality - At December 31, 2025, non-performing loans totaled $11.9 million, compared to $13.9 million at
September 30, 2025, a decrease of $2.0 million or 14.3%. The Bank’s ratio of non-performing loans to total loans was
0.82% at December 31, 2025, compared to 0.94% at September 30, 2025. The Bank’s ratio of non-performing assets to
total assets was 0.68% at December 31, 2025 and 0.76% at September 30, 2025. 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 $17.5 million at December 31, 2025, or 1.21% of total loans
receivable, compared to $18.0 million at September 30, 2025, or 1.22% of total loans receivable, a decrease of $471
thousand or 2.62%. The Bank's unused commitment reserve, included in other liabilities, totaled $1.8 million at
December 31, 2025, compared to $1.7 million at September 30, 2025, an increase of $86 thousand or 5.2%.
For the quarter ended December 31, 2025, the Bank recorded a net benefit from credit loss totaling $84 thousand based
on lower loan impairments, reduction of certain loan segment balances, and other factors within the Bank's ACL
modeling. The fourth quarter's benefit consisted of a $170 thousand reversal for credit losses on loans, and a $86
thousand provision of credit losses on unused commitments. For the quarter ended December 31, 2025, net loan
charge-offs totaled $301 thousand, compared to net loan charge-offs of $268 thousand for the quarter ended
September 30, 2025. The allowance for credit losses as a percentage of non-performing loans, or coverage ratio, was
147.1% at December 31, 2025, compared to 129.4% at September 30, 2025.
•Operating Income and Expenses - Non-interest income as percentage of average assets was 0.29% for the quarter
ended December 31, 2025, as compared to 0.57% for the quarter ended September 30, 2025. The decrease in non-
interest income quarter over quarter was primarily attributable to the realized losses on the sale of investment securities
partially offset by bank owned life insurance death claim benefits. Non-interest expense as a percentage of average
assets was 2.90% for the quarter ended December 31, 2025, as compared to 2.74% for the quarter ended September 30,
2025. The increase in non-interest expenses quarter over quarter was primarily attributable to higher compensation and
benefits and data processing expense as well as higher occupancy and equipment expenses. The Bank remains focused
on identifying additional operating efficiencies and third-party expense reductions.
•Capital Adequacy - The Bank’s tier 1 leverage ratio was 8.93% as of December 31, 2025 and 8.77% as of
September 30, 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 $34.92 at December 31, 2025, up
from $32.77 as of September 30, 2025. Tangible common equity to tangible assets (non-GAAP) was 7.56% at
December 31, 2025, up from 6.99% as of September 30, 2025. Excluding accumulated other comprehensive losses,
tangible book value per share (non-GAAP) increased to $44.55 as of December 31, 2025, from $44.16 as of
September 30, 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/tangible assets, tangible common equity adjusted for other comprehensive loss/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 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
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
4
Exhibit 99.1
(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
5
Finward Bancorp Exhibit 99.1
Fourth Quarter 2025 Financial Results (unaudited)
Performance Ratios
Quarter Ended | Year Ended | ||||||||||||
12/31/2025 | 9/30/2025 | 6/30/2025 | 3/31/2025 | 12/31/2024 | 12/31/2025 | 12/31/2024 | |||||||
Return on equity | 4.66% | 8.96% | 5.66% | 1.17% | 5.39% | 5.10% | 8.06% | ||||||
Return on assets | 0.39% | 0.68% | 0.42% | 0.09% | 0.41% | 0.39% | 0.58% | ||||||
Yield on loans | 5.64% | 5.49% | 5.36% | 5.25% | 5.27% | 5.43% | 5.15% | ||||||
Yield on security investments | 2.29% | 2.40% | 2.42% | 2.38% | 2.34% | 2.41% | 2.38% | ||||||
Total yield on earning assets | 4.96% | 4.91% | 4.82% | 4.71% | 4.74% | 4.85% | 4.67% | ||||||
Cost of interest-bearing deposits | 2.09% | 2.16% | 2.12% | 2.17% | 2.41% | 2.13% | 2.40% | ||||||
Cost of repurchase agreements | 3.10% | 3.37% | 3.32% | 3.35% | 3.65% | 3.29% | 3.85% | ||||||
Cost of borrowed funds | 3.73% | 3.64% | 3.91% | 4.12% | 4.31% | 3.86% | 4.62% | ||||||
Total cost of interest-bearing liabilities | 2.16% | 2.25% | 2.22% | 2.28% | 2.53% | 2.23% | 2.56% | ||||||
Net interest margin | 3.18% | 3.04% | 2.97% | 2.81% | 2.65% | 3.00% | 2.54% | ||||||
Net interest margin, tax-equivalent (non-GAAP) (1) | 3.32% | 3.18% | 3.11% | 2.95% | 2.79% | 3.14% | 2.68% | ||||||
Non-interest income/average assets | 0.29% | 0.57% | 0.53% | 0.43% | 0.72% | 0.45% | 1.09% | ||||||
Non-interest expense/average assets | 2.90% | 2.74% | 2.90% | 2.81% | 2.75% | 2.84% | 2.80% | ||||||
Efficiency ratio (non-GAAP) (1) | 89.50% | 81.22% | 88.92% | 93.11% | 87.20% | 88.03% | 81.78% | ||||||
Non-performing assets to total assets | 0.68% | 0.76% | 0.74% | 0.69% | 0.74% | 0.68% | 0.74% | ||||||
Non-performing loans to total loans | 0.82% | 0.94% | 0.91% | 0.84% | 0.91% | 0.82% | 0.91% | ||||||
Allowance for credit losses to non-performing loans | 147.12% | 129.41% | 133.01% | 143.84% | 123.10% | 147.12% | 123.10% | ||||||
Allowance for credit losses to loans receivable | 1.21% | 1.22% | 1.22% | 1.20% | 1.12% | 1.21% | 1.12% | ||||||
Net charge-offs (recoveries) as a percentage of average loans receivable | 0.08% | 0.07% | (0.11%) | 0.01% | 0.59% | 0.01% | 0.14% | ||||||
Basic earnings per share | $0.46 | $0.82 | $0.50 | $0.11 | $0.49 | $1.89 | $2.85 | ||||||
Diluted earnings per share | $0.46 | $0.81 | $0.50 | $0.11 | $0.49 | $1.88 | $2.84 | ||||||
Weighted average common shares outstanding—basic | 4,273,421 | 4,273,022 | 4,271,952 | 4,266,976 | 4,261,079 | 4,271,350 | 4,259,570 | ||||||
Weighted average common shares outstanding—diluted | 4,301,462 | 4,299,007 | 4,291,319 | 4,284,496 | 4,286,742 | 4,292,058 | 4,274,633 | ||||||
Stockholders' equity to total assets | 8.64% | 8.06% | 7.48% | 7.44% | 7.35% | 8.64% | 7.35% | ||||||
Tangible common equity to tangible assets (non- GAAP) (1) | 7.56% | 6.99% | 6.41% | 6.34% | 6.24% | 7.56% | 6.24% | ||||||
Tangible common equity adjusted for accumulated other comprehensive loss to tangible assets (non- GAAP) (1) | 9.65% | 9.42% | 9.24% | 9.23% | 9.10% | 9.65% | 9.10% | ||||||
Book value per share | $40.37 | $38.24 | $35.67 | $35.10 | $35.10 | $40.37 | $35.10 | ||||||
Tangible common book value per share (non-GAAP) (1) | $34.92 | $32.77 | $30.16 | $29.55 | $29.48 | $34.92 | $29.48 | ||||||
Tangible common book value per share adjusted for accumulated other comprehensive loss (non-GAAP) (1) | $44.55 | $44.16 | $43.47 | $43.02 | $42.94 | $44.55 | $42.94 | ||||||
Closing stock price | $35.19 | $32.09 | $27.62 | $29.10 | $28.11 | $35.19 | $28.11 | ||||||
Dividends declared per common share | $0.12 | $0.12 | $0.12 | $— | $0.12 | $0.36 | $0.48 | ||||||
(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
Fourth Quarter 2025 Financial Results (unaudited)
Average Balances, Interest, Rates
Quarter Ended | |||||||||||||||||
December 31, 2025 | September 30, 2025 | June 30, 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 | $100,035 | $903 | 3.61% | $90,880 | $991 | 4.36% | $57,749 | $614 | 4.25% | ||||||||
Federal funds sold | 1,113 | 10 | 3.59% | 1,285 | 12 | 3.74% | 868 | 8 | 3.69% | ||||||||
Securities available-for-sale | 327,747 | 1,877 | 2.29% | 327,030 | 1,965 | 2.40% | 327,867 | 1,980 | 2.42% | ||||||||
Loans receivable | 1,454,174 | 20,496 | 5.64% | 1,474,324 | 20,246 | 5.49% | 1,486,861 | 19,940 | 5.36% | ||||||||
Federal Home Loan Bank stock | 6,547 | 126 | 7.70% | 6,547 | 126 | 7.70% | 6,547 | 128 | 7.82% | ||||||||
Total interest earning assets | 1,889,616 | $23,412 | 4.96% | 1,900,066 | $23,340 | 4.91% | 1,879,892 | $22,670 | 4.82% | ||||||||
Cash and non-interest bearing deposits in other financial institutions | 23,385 | 24,882 | 27,192 | ||||||||||||||
Allowance for credit losses | (18,049) | (18,243) | (18,028) | ||||||||||||||
Other non-interest bearing assets | 146,675 | 152,135 | 152,880 | ||||||||||||||
Total assets | $2,041,627 | $2,058,840 | $2,041,936 | ||||||||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||||||||
Interest-bearing deposits | $1,458,748 | $7,605 | 2.09% | $1,478,543 | $7,996 | 2.16% | $1,470,225 | $7,780 | 2.12% | ||||||||
Repurchase agreements | 40,968 | 317 | 3.10% | 46,498 | 392 | 3.37% | 44,401 | 370 | 3.33% | ||||||||
Borrowed funds | 48,089 | 448 | 3.73% | 55,904 | 509 | 3.64% | 58,995 | 575 | 3.90% | ||||||||
Total interest bearing liabilities | 1,547,805 | $8,370 | 2.16% | 1,580,945 | $8,897 | 2.25% | 1,573,621 | $8,725 | 2.22% | ||||||||
Non-interest bearing deposits | 288,073 | 285,347 | 278,620 | ||||||||||||||
Other non-interest bearing liabilities | 35,588 | 36,397 | 37,703 | ||||||||||||||
Total liabilities | 1,871,466 | 1,902,689 | 1,889,944 | ||||||||||||||
Total stockholders' equity | 170,161 | 156,151 | 151,992 | ||||||||||||||
Total liabilities and stockholders' equity | $2,041,627 | $2,058,840 | $2,041,936 | ||||||||||||||
Net interest income | $15,042 | $14,443 | $13,945 | ||||||||||||||
Return on average assets | 0.39% | 0.68% | 0.42% | ||||||||||||||
Return on average equity | 4.66% | 8.96% | 5.66% | ||||||||||||||
Net interest margin | 3.18% | 3.04% | 2.97% | ||||||||||||||
Net interest margin, tax-equivalent (non-GAAP)(1) | 3.32% | 3.18% | 3.11% | ||||||||||||||
Net interest spread | 2.80% | 2.66% | 2.60% | ||||||||||||||
Ratio of interest-earning assets to interest-bearing liabilities | 1.22x | 1.20x | 1.19x | ||||||||||||||
(1)See the reconciliation of non-GAAP measures to the most directly comparable GAAP measures on pg 13.
7
Finward Bancorp Exhibit 99.1
Fourth Quarter 2025 Financial Results (unaudited)
Consolidated Balance Sheets
As of | |||||||||
(Dollars in thousands) | 12/31/2025 | 9/30/2025 | 6/30/2025 | 3/31/2025 | 12/31/2024 | ||||
ASSETS | |||||||||
Cash and non-interest bearing deposits in other financial institutions | $18,265 | $19,458 | $23,027 | $18,563 | $17,883 | ||||
Interest bearing deposits in other financial institutions | 101,382 | 84,157 | 79,976 | 52,829 | 52,047 | ||||
Federal funds sold | - | 563 | 411 | 975 | 654 | ||||
Total cash and cash equivalents | 119,647 | 104,178 | 103,414 | 72,367 | 70,584 | ||||
Securities available-for-sale | 316,227 | 335,150 | 327,845 | 330,127 | 333,554 | ||||
Loans held-for-sale | 1,096 | 2,641 | 834 | 2,849 | 1,253 | ||||
Loans receivable, net of deferred fees and costs | 1,450,387 | 1,473,774 | 1,484,278 | 1,491,696 | 1,508,976 | ||||
Less: allowance for credit losses | (17,506) | (17,977) | (18,184) | (17,955) | (16,911) | ||||
Net loans receivable | 1,432,881 | 1,455,797 | 1,466,094 | 1,473,741 | 1,492,065 | ||||
Federal Home Loan Bank stock | 6,547 | 6,547 | 6,547 | 6,547 | 6,547 | ||||
Accrued interest receivable | 7,781 | 7,585 | 7,651 | 7,821 | 7,721 | ||||
Premises and equipment | 44,976 | 45,544 | 46,179 | 46,680 | 47,259 | ||||
Cash value of bank owned life insurance | 33,586 | 33,843 | 33,932 | 33,712 | 33,514 | ||||
Goodwill | 22,395 | 22,395 | 22,395 | 22,395 | 22,395 | ||||
Other intangible assets | 1,172 | 1,273 | 1,414 | 1,635 | 1,860 | ||||
Other assets | 34,873 | 37,771 | 41,606 | 41,840 | 43,947 | ||||
Total assets | $2,021,181 | $2,052,724 | $2,057,911 | $2,039,714 | $2,060,699 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||
Deposits: | |||||||||
Non-interest bearing | $267,441 | $280,296 | $271,172 | $281,461 | $263,324 | ||||
Interest bearing | 1,459,530 | 1,470,350 | 1,483,678 | 1,468,923 | 1,497,242 | ||||
Total | 1,726,971 | 1,750,646 | 1,754,850 | 1,750,384 | 1,760,566 | ||||
Repurchase agreements | 39,152 | 48,426 | 48,331 | 45,053 | 40,116 | ||||
Borrowed funds | 45,551 | 55,000 | 65,000 | 56,657 | 65,000 | ||||
Accrued expenses and other liabilities | 34,844 | 33,157 | 35,477 | 35,813 | 43,603 | ||||
Total liabilities | 1,846,518 | 1,887,229 | 1,903,658 | 1,887,907 | 1,909,285 | ||||
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 | 70,331 | 70,233 | 70,263 | 70,132 | 70,034 | ||||
Accumulated other comprehensive loss | (41,662) | (49,266) | (57,560) | (58,244) | (58,084) | ||||
Retained earnings | 145,994 | 144,528 | 141,550 | 139,919 | 139,464 | ||||
Total stockholders' equity | 174,663 | 165,495 | 154,253 | 151,807 | 151,414 | ||||
Total liabilities and stockholders' equity | $2,021,181 | $2,052,724 | $2,057,911 | $2,039,714 | $2,060,699 | ||||
(1) Shares of common stock issued and outstanding were 4,326,747 at 12/31/2025; 4,327,511 at 9/30/2025; 4,324,889 at 6/30/2025; 4,324,485 at
3/31/2025; and 4,313,698 at 12/31/24.
8
Finward Bancorp Exhibit 99.1
Fourth Quarter 2025 Financial Results (unaudited)
Consolidated Statements of Income
Quarter Ended | |||||||||
(Dollars in thousands, except per share data) | 12/31/2025 | 9/30/2025 | 6/30/2025 | 3/31/2025 | 12/31/2024 | ||||
Interest income: | |||||||||
Loans | $20,496 | $20,246 | $19,940 | $19,655 | $19,802 | ||||
Securities & short-term investments | 2,916 | 3,094 | 2,730 | 2,686 | 2,793 | ||||
Total interest income | 23,412 | 23,340 | 22,670 | 22,341 | 22,595 | ||||
Interest expense: | |||||||||
Deposits | 7,605 | 7,996 | 7,780 | 8,045 | 8,812 | ||||
Borrowings | 765 | 901 | 945 | 983 | 1,176 | ||||
Total interest expense | 8,370 | 8,897 | 8,725 | 9,028 | 9,988 | ||||
Net interest income | 15,042 | 14,443 | 13,945 | 13,313 | 12,607 | ||||
Provision for (benefit from) credit losses | (84) | (301) | (274) | 454 | (579) | ||||
Net interest income after provision for credit losses | 15,126 | 14,744 | 14,219 | 12,859 | 13,186 | ||||
Non-interest income: | |||||||||
Fees and service charges | 1,485 | 1,463 | 1,330 | 1,109 | 1,439 | ||||
Wealth management operations | 659 | 759 | 696 | 619 | 728 | ||||
Gain on tax credit investment | - | 23 | - | 67 | 1,236 | ||||
Gain on sale of loans held-for-sale, net | 346 | 265 | 378 | 230 | 328 | ||||
Bank owned life insurance | 522 | 439 | 220 | 198 | 202 | ||||
Gain (loss) on sale of property and equipment | 1 | (56) | - | - | (212) | ||||
Loss on sale of securities, net | (1,577) | - | - | - | - | ||||
Other | 37 | 20 | 59 | 6 | 11 | ||||
Total non-interest income | 1,473 | 2,913 | 2,683 | 2,229 | 3,732 | ||||
Non-interest expense: | |||||||||
Compensation and benefits | 7,573 | 7,330 | 7,313 | 7,372 | 6,628 | ||||
Occupancy and equipment | 2,111 | 2,004 | 1,935 | 2,111 | 2,045 | ||||
Data processing | 1,465 | 1,116 | 1,341 | 1,039 | 1,202 | ||||
Federal deposit insurance premiums | 417 | 399 | 471 | 433 | 457 | ||||
Marketing | 230 | 257 | 214 | 86 | 220 | ||||
Professional and outside services | 906 | 945 | 1,115 | 1,260 | 1,341 | ||||
Technology | 521 | 549 | 545 | 454 | 509 | ||||
Other | 1,558 | 1,497 | 1,852 | 1,717 | 1,845 | ||||
Total non-interest expense | 14,781 | 14,097 | 14,786 | 14,472 | 14,247 | ||||
Income before income taxes | 1,818 | 3,560 | 2,116 | 616 | 2,671 | ||||
Income tax expenses (benefit) | (166) | 63 | (35) | 161 | 569 | ||||
Net income | $1,984 | $3,497 | $2,151 | $455 | $2,102 | ||||
Earnings per common share: | |||||||||
Basic | $0.46 | $0.82 | $0.50 | $0.11 | $0.49 | ||||
Diluted | $0.46 | $0.81 | $0.50 | $0.11 | $0.49 | ||||
9
Finward Bancorp Exhibit 99.1
Fourth Quarter 2025 Financial Results (unaudited)
Consolidated Statements of Income (cont'd)
Year Ended | |||
(Dollars in thousands, except per share data) | 12/31/2025 | 12/31/2024 | |
Interest income: | |||
Loans | $80,337 | $77,515 | |
Securities & short-term investments | 11,426 | 11,663 | |
Total interest income | 91,763 | 89,178 | |
Interest expense: | |||
Deposits | 31,426 | 35,162 | |
Borrowings | 3,594 | 5,569 | |
Total interest expense | 35,020 | 40,731 | |
Net interest income | 56,743 | 48,447 | |
Provision for (benefit from) credit losses | (205) | (503) | |
Net interest income after provision for credit losses | 56,948 | 48,950 | |
Non-interest income: | |||
Fees and service charges | 5,387 | 5,312 | |
Wealth management operations | 2,733 | 2,855 | |
Gain on tax credit investment | 90 | 1,236 | |
Gain on sale of loans held-for-sale, net | 1,219 | 1,138 | |
Bank owned life insurance | 1,379 | 812 | |
Gain (loss) on sale of property and equipment | (55) | 11,661 | |
Loss on sale of securities, net | (1,577) | (531) | |
Other | 122 | 164 | |
Total non-interest income | 9,298 | 22,647 | |
Non-interest expense: | |||
Compensation and benefits | 29,588 | 27,737 | |
Occupancy and equipment | 8,161 | 8,250 | |
Data processing | 4,961 | 4,672 | |
Federal deposit insurance premiums | 1,720 | 1,790 | |
Marketing | 787 | 799 | |
Professional and outside services | 4,226 | 5,405 | |
Technology | 2,069 | 2,243 | |
Other | 6,624 | 7,246 | |
Total non-interest expense | 58,136 | 58,142 | |
Income before income taxes | 8,110 | 13,455 | |
Income tax expenses | 23 | 1,325 | |
Net income | $8,087 | $12,130 | |
Earnings per common share: | |||
Basic | $1.89 | $2.85 | |
Diluted | $1.88 | $2.84 | |
10
Finward Bancorp Exhibit 99.1
Fourth Quarter 2025 Financial Results (unaudited)
Loans
As of | |||||||||||||||||
(Dollars in thousands) | 12/31/2025 | 9/30/2025 | 6/30/2025 | 3/31/2025 | 12/31/2024 | 12/31/2025 vs 9/30/2025 | 12/31/2025 vs 12/31/2024 | ||||||||||
Residential real estate | $442,443 | $450,007 | $457,248 | $458,424 | $467,293 | $(7,564) | (1.7)% | $(24,850) | (5.3)% | ||||||||
Home equity | 53,497 | 51,813 | 51,112 | 49,752 | 49,758 | 1,684 | 3.3% | 3,739 | 7.5% | ||||||||
Commercial real estate | 555,594 | 564,558 | 551,091 | 554,866 | 551,674 | (8,964) | (1.6)% | 3,920 | 0.7% | ||||||||
Construction and land development | 77,208 | 79,678 | 74,795 | 86,728 | 82,874 | (2,470) | (3.1)% | (5,666) | (6.8)% | ||||||||
Multifamily | 183,902 | 192,698 | 200,440 | 204,964 | 212,455 | (8,796) | (4.6)% | (28,553) | (13.4)% | ||||||||
Commercial business | 99,304 | 96,192 | 105,636 | 99,519 | 104,246 | 3,112 | 3.2% | (4,942) | (4.7)% | ||||||||
Consumer | 870 | 348 | 2,347 | 504 | 551 | 522 | 150.0% | 319 | 57.9% | ||||||||
Manufactured homes | 23,708 | 24,372 | 25,146 | 25,762 | 26,708 | (664) | (2.7)% | (3,000) | (11.2)% | ||||||||
Government | 12,298 | 12,298 | 14,628 | 9,279 | 11,024 | — | —% | 1,274 | 11.6% | ||||||||
Loans receivable | 1,448,824 | 1,471,964 | 1,482,443 | 1,489,798 | 1,506,583 | (23,140) | (1.6)% | (57,759) | (3.8)% | ||||||||
Net deferred loan origination costs | 1,606 | 1,719 | 2,012 | 2,209 | 2,439 | (113) | (6.6)% | (833) | (34.2)% | ||||||||
Loan clearing funds | (43) | 91 | (177) | (311) | (46) | (134) | (147.3)% | 3 | (6.5)% | ||||||||
Loans receivable, net | $1,450,387 | $1,473,774 | $1,484,278 | $1,491,696 | $1,508,976 | $(23,387) | (1.6)% | $(58,589) | (3.9)% | ||||||||
Deposits
As of | |||||||||||||||||
(Dollars in thousands) | 12/31/2025 | 9/30/2025 | 6/30/2025 | 3/31/2025 | 12/31/2024 | 12/31/2025 vs 9/30/2025 | 12/31/2025 vs 12/31/2024 | ||||||||||
Checking | $592,214 | $579,760 | $593,471 | $589,403 | $591,487 | $12,454 | 2.1% | $727 | 0.1% | ||||||||
Savings | 254,055 | 257,058 | 266,070 | 274,028 | 275,121 | (3,003) | (1.2)% | (21,066) | (7.7)% | ||||||||
Money market | 381,111 | 377,155 | 352,616 | 342,106 | 333,705 | 3,956 | 1.0% | 47,406 | 14.2% | ||||||||
Certificates of deposit | 499,591 | 536,673 | 542,693 | 544,847 | 560,253 | (37,082) | (6.9)% | (60,662) | (10.8)% | ||||||||
Total deposits | $1,726,971 | $1,750,646 | $1,754,850 | $1,750,384 | $1,760,566 | $(23,675) | (1.4)% | $(33,595) | (1.9)% | ||||||||
11
Finward Bancorp Exhibit 99.1
Fourth Quarter 2025 Financial Results (unaudited)
Asset Quality
As of and for the Quarter Ended | |||||||||
(Dollars in thousands) | 12/31/2025 | 9/30/2025 | 6/30/2025 | 3/31/2025 | 12/31/2024 | ||||
Non-accruing loans | $11,899 | $13,892 | $13,526 | $12,483 | $13,738 | ||||
Accruing loans delinquent more than 90 days | - | - | 145 | - | - | ||||
Securities in non-accrual | 1,882 | 1,616 | 1,616 | 1,630 | 1,419 | ||||
Total nonperforming assets | $13,781 | $15,508 | $15,287 | $14,113 | $15,157 | ||||
Allowance for credit losses (ACL): | |||||||||
ACL specific allowances for collateral dependent loans | $263 | $912 | $570 | $259 | $284 | ||||
ACL general allowances for loan portfolio | 17,243 | 17,065 | 17,614 | 17,696 | 16,627 | ||||
Total ACL | $17,506 | $17,977 | $18,184 | $17,955 | $16,911 | ||||
Allowance for Credit Losses
As of and for the Quarter Ended | |||||||||
(Dollars in thousands) | 12/31/2025 | 9/30/2025 | 6/30/2025 | 3/31/2025 | 12/31/2024 | ||||
Beginning allowance for credit losses | $17,977 | $18,184 | $17,955 | $16,911 | $18,516 | ||||
Provision for (benefit from) loan losses | (170) | 61 | (185) | 1,077 | 597 | ||||
Net (charge-offs) recoveries | (301) | (268) | 414 | (33) | (2,202) | ||||
Ending allowance for credit losses | $17,506 | $17,977 | $18,184 | $17,955 | $16,911 | ||||
12
Finward Bancorp Exhibit 99.1
Fourth Quarter 2025 Financial Results (unaudited)
Bank-Level Regulatory Capital Requirements
December 31, 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 | $186,214 | 11.86% | $70,626 | 4.50% | $102,016 | 6.50% | ||||||
Tier 1 capital to risk-weighted assets | $186,214 | 11.86% | $94,168 | 6.00% | $125,558 | 8.00% | ||||||
Total capital to risk-weighted assets | $205,472 | 13.09% | $125,558 | 8.00% | $156,947 | 10.00% | ||||||
Tier 1 leverage ratio | $186,214 | 8.93% | $83,379 | 4.00% | $104,223 | 5.00% | ||||||
(1) Current quarter ratios are estimated.
13
Finward Bancorp Exhibit 99.1
Fourth Quarter 2025 Financial Results (unaudited)
Reconciliation of Non-GAAP Performance Measures
Quarter Ended | |||||||||
(Dollars in thousands, except per share amounts) | 12/31/2025 | 9/30/2025 | 6/30/2025 | 3/31/2025 | 12/31/2024 | ||||
Tangible Common Ratios | |||||||||
Stockholder's equity (GAAP) | $174,663 | $165,495 | $154,253 | $151,807 | $151,414 | ||||
Less: Goodwill (GAAP) | (22,395) | (22,395) | (22,395) | (22,395) | (22,395) | ||||
Less: Other intangibles (GAAP) | (1,172) | (1,273) | (1,414) | (1,635) | (1,860) | ||||
Tangible common equity (non-GAAP) | $151,096 | $141,827 | $130,444 | $127,777 | $127,159 | ||||
Add: Accumulated other comprehensive loss (GAAP) | 41,662 | 49,266 | 57,560 | 58,244 | 58,084 | ||||
Tangible common equity adjusted for accumulated other comprehensive loss (non-GAAP) (1) | $192,758 | $191,093 | $188,004 | $186,021 | $185,243 | ||||
Total assets (GAAP) | $2,021,181 | $2,052,724 | $2,057,911 | $2,039,714 | $2,060,699 | ||||
Less: Goodwill (GAAP) | (22,395) | (22,395) | (22,395) | (22,395) | (22,395) | ||||
Less: Other intangibles (GAAP) | (1,172) | (1,273) | (1,414) | (1,635) | (1,860) | ||||
Tangible assets (non-GAAP) | $1,997,614 | $2,029,056 | $2,034,102 | $2,015,684 | $2,036,444 | ||||
Shares outstanding - end of quarter | 4,327,511 | 4,327,511 | 4,324,889 | 4,324,485 | 4,313,698 | ||||
Common book value per share (GAAP) | $40.36 | $38.24 | $35.67 | $35.10 | $35.10 | ||||
Tangible common book value per share (non-GAAP) | $34.92 | $32.77 | $30.16 | $29.55 | $29.48 | ||||
Tangible common book value per share adjusted for accumulated other comprehensive loss (non-GAAP) | $44.54 | $44.16 | $43.47 | $43.02 | $42.94 | ||||
Total equity to total assets (GAAP) | 8.64% | 8.06% | 7.50% | 7.44% | 7.35% | ||||
Tangible common equity to tangible assets (non-GAAP) | 7.56% | 6.99% | 6.41% | 6.34% | 6.24% | ||||
Tangible common equity adjusted for accumulated other comprehensive loss to tangible assets (non-GAAP) | 9.65% | 9.42% | 9.24% | 9.23% | 9.10% | ||||
Calculation of net interest margin, taxable-equivalent basis | |||||||||
Net interest income (GAAP) | $15,042 | $14,443 | $13,945 | $13,313 | $12,607 | ||||
Tax-equivalent adjustment on securities and loans (2) | 629 | 663 | 674 | 670 | 674 | ||||
Net interest income (tax-equivalent basis) | $15,671 | $15,106 | $14,619 | $13,983 | $13,281 | ||||
Total average earning assets | $1,889,616 | $1,900,066 | $1,879,892 | $1,895,847 | $1,905,333 | ||||
Net interest margin | 3.18% | 3.04% | 2.97% | 2.81% | 2.65% | ||||
Net interest margin (tax-equivalent basis) | 3.32% | 3.18% | 3.11% | 2.95% | 2.79% | ||||
Efficiency ratio | |||||||||
Total non-interest expense | $14,781 | $14,097 | $14,786 | $14,472 | $14,247 | ||||
Total revenue | 16,515 | 17,356 | 16,628 | 15,542 | 16,339 | ||||
Efficiency ratio | 89.50% | 81.22% | 88.92% | 93.11% | 87.20% | ||||
(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%.