Finward Bancorp 8-K, filed Oct 27, 2026
Finward Bancorp (FNWD)
8-K
2026-10-27
For: 2026-10-27
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Added on
October 27, 2026
About this 8-K
Finward Bancorp filed this 8-K on October 27, 2026.
Finward Bancorp reported $1.4 million, or $0.31 per diluted share, for the quarter ended September 30, 2026, versus $2.1 million, or $0.48, for the quarter ended June 30, 2026; tax-equivalent net interest margin rose to 3.51% from 3.37%. AI summary
Items reported
- Item 2.02: Financial results
- Item 9.01: Financial statements and exhibits
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): October 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 October 27, 2026, Finward Bancorp (the “Bancorp”) issued a press release reporting its unaudited financial results for the quarter ended September 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: October 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
October 27, 2026
Finward Bancorp Announces Third 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 $1.4 million, or $0.31 per diluted share,
for the quarter ended September 30, 2026, as compared to $2.1 million, or $0.48 per diluted share, for the quarter ended
June 30, 2026. Selected performance metrics are as follows for the periods presented:
Performance Ratios | |||||||||
Quarter ended | |||||||||
9/30/2026 | 6/30/2026 | 3/31/2026 | 12/31/2025 | 9/30/2025 | |||||
Return on equity | 3.10% | 4.74% | 5.00% | 4.66% | 8.96% | ||||
Return on assets | 0.27% | 0.42% | 0.44% | 0.39% | 0.68% | ||||
Net interest margin, tax-equivalent (non-GAAP) | 3.51% | 3.37% | 3.35% | 3.32% | 3.18% | ||||
Non-interest income/average assets | 0.52% | 0.48% | 0.48% | 0.29% | 0.57% | ||||
Non-interest expense/average assets | 3.35% | 2.95% | 2.93% | 2.90% | 2.74% | ||||
Efficiency ratio (non-GAAP) | 91.32% | 84.52% | 84.45% | 89.50% | 81.22% | ||||
"The third quarter was impacted by merger-related expenses related to our pending merger with First Financial, announced
earlier in the quarter. The quarter included additional expenses in the areas of compensation and benefits, and third-party
costs associated with the merger," said Benjamin Bochnowski, Chief Executive Officer. "Credit quality remained stable, as
did our core banking business and customer base. The rapid increase in interest rates contributed positively to loan yields
and margin, although it also resulted in higher unrealized losses in the bond portfolio. We continue to make progress
toward closing our merger with First Financial, and we believe the combination of our companies will have benefits for our
shareholders, customers, communities, and employees. Throughout this process, our commitment to our customers and
communities grounds the team, and our team is working diligently to ensure a seamless transition that maximizes the
promise of the merger.”
Highlights of the current period include:
•Net Interest Margin - The net interest margin for the quarter ended September 30, 2026 was 3.39% compared to
3.25% for the quarter ended June 30, 2026. Net interest margin on a tax-equivalent basis (a non-GAAP measure) for
the quarter ended September 30, 2026 was 3.51%, as compared to 3.37% for the quarter ended June 30, 2026. Net
interest margin increased from the prior quarter primarily due to continued repricing and maturity of the existing loan
portfolio, as well as full quarterly loan yield results from new loan origination strength during the second quarter.
•Funding - As of September 30, 2026, deposits totaled $1.76 billion, an increase of $25.9 million, or 1.5% compared
with June 30, 2026 balances, which totaled $1.73 billion. As of September 30, 2026, non-interest-bearing deposits
totaled $281.5 million, an increase of $10.8 million. Core deposits totaled $1.3 billion at September 30, 2026 and $1.2
billion at June 30, 2026. Core deposits include checking, savings, and money market accounts and represented 71.9%
of the Bancorp’s total deposits at September 30, 2026. As of September 30, 2026, balances for certificates of deposit
totaled $493.3 million, compared to $497.4 million on June 30, 2026, a decrease of $4.1 million or 0.8%. The increase
in total portfolio deposits is primarily related to cyclical flows and continued adjustments to deposit pricing. In
addition, as of September 30, 2026, borrowings, federal funds purchased and repurchase agreements totaled $59.8
million, a decrease of $35.5 million or 37.2%, compared to June 30, 2026. The decrease in borrowings was primarily
attributable to a reduction in FHLB advances resulting from deposit balance strength.
As of September 30, 2026, 71.7% of our deposits are fully FDIC insured, and another 8.3% 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
2
Exhibit 99.1
sources. As of September 30, 2026, the Bancorp had available liquidity of $623 million including borrowing capacity
from the FHLB and Federal Reserve facilities.
•Securities Portfolio - Securities available for sale balances decreased by $30.3 million to $279.9 million as of
September 30, 2026, compared to $310.2 million as of June 30, 2026. The yield on the securities portfolio increased to
2.33% for the three months ended September 30, 2026 from 2.27% for the three months ended June 30, 2026. The
decrease in securities available for sale was primarily attributable to an increase in the negative fair value adjustment
to securities. The Bank did not sell any securities during the quarter.
•Lending - The Bank’s aggregate loan portfolio totaled $1.50 billion on September 30, 2026 and $1.50 billion on
June 30, 2026. During the three months ended September 30, 2026, the Bank originated $69.7 million in new
commercial loans, compared to $81.3 million during the three months ended June 30, 2026. At September 30, 2026,
the Bancorp’s portfolio loan balances in commercial real estate owner occupied properties totaled $263.5 million or
17.6% of loans receivable and commercial real estate non-owner occupied properties totaled $332.4 million or 22.2%
of loans receivable. Of the $332.4 million in commercial real estate non-owner occupied properties balances, loans
collateralized by office buildings represented $31.5 million or 2.1% of total loan balances.
•Asset Quality - At September 30, 2026, non-performing loans totaled $16.8 million, compared to $16.5 million at
June 30, 2026, an increase of $239 thousand or 1.4%. The Bank’s ratio of non-performing loans to total loans was
1.12% at September 30, 2026, compared to 1.10% at June 30, 2026. The Bank’s ratio of non-performing assets to total
assets was 0.92% at September 30, 2026 and 0.90% at June 30, 2026. The increase in non-performers included the
addition of a $1.1 million residential real estate loan coupled with eight smaller loans averaging $89 thousand across
eight relationships. These were offset by the removal of thirteen loans totaling $1.2 million in the commercial real
estate, commercial business and residential real estate loan segments. 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 September 30, 2026, or 1.17% of total loans
receivable, compared to $17.7 million at June 30, 2026, or 1.18% of total loans receivable, a decrease of $257
thousand or 1.49%. The Bank's unused commitment reserve, included in other liabilities, totaled $2.0 million at
September 30, 2026, compared to $1.9 million at June 30, 2026, an increase of $36 thousand or 1.8%.
For the quarter ended September 30, 2026, the Bank recorded a net provision for credit loss totaling $124 thousand
based on quarterly growth in certain loan segment balances and other factors within the Bank's ACL modeling. The
third quarter's provision consisted of a $88 thousand provision for credit losses on loans, and a $36 thousand provision
of credit losses on unused commitments. For the quarter ended September 30, 2026, net loan charge-offs totaled $240
thousand, compared to net loan recoveries of $31 thousand for the quarter ended June 30, 2026. The allowance for
credit losses as a percentage of non-performing loans, or coverage ratio, was 104.5% at September 30, 2026, compared
to 106.9% at June 30, 2026.
•Operating Income and Expenses - Non-interest income as a percentage of average assets was 0.52% for the quarter
ended September 30, 2026 and 0.48% for the quarter ended June 30, 2026. Non-interest expense as a percentage of
average assets was 3.35% for the quarter ended September 30, 2026, as compared to 2.95% for the quarter ended
June 30, 2026. The increase in non-interest income as compared to the prior quarter was due to a $182 thousand gain
associated with the sale of one of the Bancorp's branch locations. The increase in non-interest expense quarter over
quarter was primarily attributable to one-time compensation and benefits adjustments totaling $1.8 million and
professional and outside services expenses totaling $536 thousand, both associated with the Bancorp's pending merger.
•Capital Adequacy - The Bank’s tier 1 leverage ratio was 9.29% as of September 30, 2026 and 9.31% as of June 30,
2026. The Bank’s capital continues to exceed all applicable regulatory capital requirements. The Bancorp’s tangible
book value per share (non-GAAP) was $31.07 at September 30, 2026, down from $35.75 as of June 30, 2026.
Tangible common equity to tangible assets (non-GAAP) was 6.76% at September 30, 2026, down from 7.68% as of
June 30, 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: the ability of First Financial Bancorp ("First Financial") and the Bancorp to
complete the proposed merger; the effects of the pendency of the proposed merger with First Financial on the Bancorp and
its business; 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; 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.
Important Additional Information About the Transaction and Where to Find It
In connection with the proposed merger transaction between First Financial and the Bancorp (the “Merger”), First
Financial has filed with the SEC a Registration Statement on Form S-4 (the “Registration Statement”) to register the shares
of First Financial common stock to be issued in connection with the proposed transaction. The Registration Statement
includes a proxy statement of the Bancorp and a prospectus of First Financial (the “Proxy Statement/Prospectus”), and First
Financial and the Bancorp may file with the SEC other relevant documents concerning the proposed transaction. First
Financial and the Bancorp have mailed the definitive Proxy Statement/Prospectus to shareholders of the Bancorp (which
mailings were first made on or about September 28, 2026. BEFORE MAKING ANY VOTING OR INVESTMENT
DECISION, INVESTORS AND SHAREHOLDERS ARE URGED TO READ THE REGISTRATION STATEMENT
AND PROXY STATEMENT/PROSPECTUS REGARDING THE PROPOSED TRANSACTION IN THEIR ENTIRETY
AND ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SEC, AS WELL AS ANY AMENDMENTS OR
SUPPLEMENTS TO THOSE DOCUMENTS, BECAUSE THEY CONTAIN IMPORTANT INFORMATION ABOUT
FIRST FINANCIAL, THE BANCORP AND THE PROPOSED TRANSACTION AND RELATED MATTERS.
A copy of the Registration Statement, Proxy Statement/Prospectus, as well as other filings containing information about
First Financial and the Bancorp, may be obtained, free of charge, at the SEC’s website (www.sec.gov). Copies of
documents filed with the SEC by First Financial will be made available free of charge in the “Investor Relations” section of
First Financial’s website, https://www.bankatfirst.com/about/investor-relations.html. Copies of documents filed with the
SEC by the Bancorp will be made available free of charge in the “Investor Relations” section of the Bancorp’s website,
https://investorrelations.ibankpeoples.com/. The information on First Financial’s and the Bancorp’s websites is not, and
shall not be deemed to be, a part of this communication or incorporated into other filings either company makes with the
SEC.
Participants in Solicitation
The Bancorp and its directors, executive officers, management and employees may be deemed to be participants in the
solicitation of proxies in respect of the Merger. Information concerning the Bancorp’s participants is set forth in the Proxy
Statement, dated April 3, 2026, for the Company’s 2026 annual meeting of shareholders as filed with the SEC on Schedule
14A. Additional information regarding the participants in the solicitation of proxies in respect of the proposed transaction
and interests of the participants of the Bancorp in the solicitation of proxies in respect of the Merger are included in the
Registration Statement and Proxy Statement/Prospectus on file with the SEC. Free copies of these documents may be
obtained as described in the preceding paragraph.
FOR FURTHER INFORMATION
CONTACT SHAREHOLDER SERVICES
(219) 853-7575
5
Finward Bancorp Exhibit 99.1
Third Quarter 2026 Financial Results (unaudited)
Performance Ratios
Quarter Ended | Nine Months Ended | ||||||||||||
9/30/2026 | 6/30/2026 | 3/31/2026 | 12/31/2025 | 9/30/2025 | 9/30/2026 | 9/30/2025 | |||||||
Return on equity | 3.10% | 4.74% | 5.00% | 4.66% | 8.96% | 4.29% | 5.27% | ||||||
Return on assets | 0.27% | 0.42% | 0.44% | 0.39% | 0.68% | 0.38% | 0.40% | ||||||
Yield on loans | 5.73% | 5.55% | 5.50% | 5.64% | 5.49% | 5.60% | 5.37% | ||||||
Yield on security investments | 2.33% | 2.27% | 2.22% | 2.29% | 2.40% | 2.28% | 2.40% | ||||||
Total yield on earning assets | 5.10% | 4.93% | 4.86% | 4.96% | 4.91% | 4.97% | 4.82% | ||||||
Cost of interest-bearing deposits | 2.04% | 1.98% | 1.92% | 2.09% | 2.16% | 1.98% | 2.15% | ||||||
Cost of federal funds purchased and repurchase agreements | 2.85% | 2.82% | 2.85% | 3.12% | 3.37% | 2.84% | 3.35% | ||||||
Cost of borrowed funds | 3.90% | 3.80% | 3.70% | 3.70% | 3.64% | 3.80% | 3.90% | ||||||
Total cost of interest-bearing liabilities | 2.11% | 2.06% | 2.00% | 2.16% | 2.25% | 2.06% | 2.25% | ||||||
Net interest margin | 3.39% | 3.25% | 3.23% | 3.18% | 3.04% | 3.29% | 2.94% | ||||||
Net interest margin, tax-equivalent (non-GAAP) (1) | 3.51% | 3.37% | 3.35% | 3.32% | 3.18% | 3.41% | 3.08% | ||||||
Non-interest income/average assets | 0.52% | 0.48% | 0.48% | 0.29% | 0.57% | 0.49% | 0.51% | ||||||
Non-interest expense/average assets | 3.35% | 2.95% | 2.93% | 2.90% | 2.74% | 3.08% | 2.81% | ||||||
Efficiency ratio (non-GAAP) (1) | 91.32% | 84.52% | 84.45% | 89.50% | 81.22% | 86.85% | 87.54% | ||||||
Non-performing assets to total assets | 0.92% | 0.90% | 0.71% | 0.65% | 0.76% | 0.92% | 0.76% | ||||||
Non-performing loans to total loans | 1.12% | 1.10% | 0.85% | 0.77% | 0.94% | 1.12% | 0.94% | ||||||
Allowance for credit losses to non-performing loans | 104.49% | 106.92% | 139.72% | 156.84% | 129.41% | 104.49% | 129.41% | ||||||
Allowance for credit losses to loans receivable | 1.17% | 1.18% | 1.19% | 1.21% | 1.22% | 1.17% | 1.22% | ||||||
Net charge-offs (recoveries) as a percentage of average loans receivable | 0.06% | (0.01%) | 0.00% | 0.08% | 0.07% | (0.01)% | (0.01)% | ||||||
Basic earnings per share | $0.32 | $0.49 | $0.52 | $0.46 | $0.82 | $1.33 | $1.43 | ||||||
Diluted earnings per share | $0.31 | $0.48 | $0.52 | $0.46 | $0.81 | $1.32 | $1.42 | ||||||
Weighted average common shares outstanding—basic | 4,283,138 | 4,280,844 | 4,276,530 | 4,273,421 | 4,273,022 | 4,280,195 | 4,270,652 | ||||||
Weighted average common shares outstanding—diluted | 4,325,700 | 4,319,052 | 4,302,206 | 4,301,462 | 4,299,007 | 4,318,918 | 4,291,171 | ||||||
Stockholders' equity to total assets | 7.84% | 8.74% | 8.56% | 8.64% | 8.06% | 7.84% | 8.06% | ||||||
Tangible common equity to tangible assets (non-GAAP) (1) | 6.76% | 7.68% | 7.48% | 7.56% | 6.99% | 6.76% | 6.99% | ||||||
Book value per share | $36.45 | $41.15 | $39.81 | $40.37 | $38.24 | $36.45 | $38.24 | ||||||
Tangible common book value per share (non-GAAP) (1) | $31.07 | $35.75 | $34.39 | $34.92 | $32.77 | $31.07 | $32.77 | ||||||
Closing stock price | $41.65 | $36.78 | $36.30 | $35.19 | $32.09 | $41.65 | $32.09 | ||||||
Dividends declared per common share | $0.12 | $0.12 | $0.12 | $0.12 | $0.12 | $0.36 | $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
Third Quarter 2026 Financial Results (unaudited)
Average Balances, Interest, Rates
Quarter Ended | |||||||||||||||||
September 30, 2026 | June 30, 2026 | March 31, 2026 | |||||||||||||||
(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 | $75,192 | $683 | 3.63% | $78,886 | $718 | 3.64% | $96,250 | $949 | 3.94% | ||||||||
Federal funds sold | 1,276 | 9 | 2.82% | 1,046 | 8 | 3.06% | 1,523 | 11 | 2.89% | ||||||||
Securities available-for-sale | 303,374 | 1,768 | 2.33% | 309,251 | 1,757 | 2.27% | 318,670 | 1,771 | 2.22% | ||||||||
Loans receivable | 1,495,817 | 21,438 | 5.73% | 1,474,063 | 20,468 | 5.55% | 1,445,921 | 19,871 | 5.50% | ||||||||
Federal Home Loan Bank stock | 6,547 | 119 | 7.27% | 6,547 | 114 | 6.97% | 6,547 | 119 | 7.27% | ||||||||
Total interest earning assets | 1,882,206 | $24,017 | 5.10% | 1,869,793 | $23,065 | 4.93% | 1,868,911 | $22,721 | 4.86% | ||||||||
Cash and non-interest bearing deposits in other financial institutions | 15,864 | 15,504 | 21,331 | ||||||||||||||
Allowance for credit losses | (17,541) | (17,418) | (17,608) | ||||||||||||||
Other non-interest bearing assets | 144,816 | 143,484 | 143,452 | ||||||||||||||
Total assets | $2,025,345 | $2,011,363 | $2,016,086 | ||||||||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||||||||
Interest-bearing deposits | $1,462,769 | $7,478 | 2.04% | $1,446,072 | $7,159 | 1.98% | $1,447,994 | $6,959 | 1.92% | ||||||||
Federal funds purchased and repurchase agreements | 26,852 | 191 | 2.85% | 33,076 | 233 | 2.82% | 38,113 | 272 | 2.85% | ||||||||
Borrowed funds | 41,630 | 406 | 3.90% | 51,925 | 493 | 3.80% | 45,334 | 419 | 3.70% | ||||||||
Total interest bearing liabilities | 1,531,251 | $8,075 | 2.11% | 1,531,073 | $7,885 | 2.06% | 1,531,441 | $7,650 | 2.00% | ||||||||
Non-interest bearing deposits | 282,313 | 268,540 | 270,626 | ||||||||||||||
Other non-interest bearing liabilities | 36,373 | 35,243 | 34,588 | ||||||||||||||
Total liabilities | 1,849,937 | 1,834,856 | 1,836,655 | ||||||||||||||
Total stockholders' equity | 175,408 | 176,507 | 179,431 | ||||||||||||||
Total liabilities and stockholders' equity | $2,025,345 | $2,011,363 | $2,016,086 | ||||||||||||||
Net interest income | $15,942 | $15,180 | $15,071 | ||||||||||||||
Return on average assets | 0.27% | 0.42% | 0.44% | ||||||||||||||
Return on average equity | 3.10% | 4.74% | 5.00% | ||||||||||||||
Net interest margin | 3.39% | 3.25% | 3.23% | ||||||||||||||
Net interest margin, tax-equivalent (non-GAAP)(1) | 3.51% | 3.37% | 3.35% | ||||||||||||||
Net interest spread | 2.99% | 2.87% | 2.86% | ||||||||||||||
Ratio of interest-earning assets to interest-bearing liabilities | 1.23x | 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
Third Quarter 2026 Financial Results (unaudited)
Consolidated Balance Sheets
As of | |||||||||
(Dollars in thousands) | 9/30/2026 | 6/30/2026 | 3/31/2026 | 12/31/2025 | 9/30/2025 | ||||
ASSETS | |||||||||
Cash and non-interest bearing deposits in other financial institutions | $16,630 | $17,384 | $15,758 | $18,265 | $19,458 | ||||
Interest bearing deposits in other financial institutions | 74,978 | 76,270 | 102,997 | 101,382 | 84,157 | ||||
Federal funds sold | 1,051 | 988 | - | - | 563 | ||||
Total cash and cash equivalents | 92,659 | 94,642 | 118,755 | 119,647 | 104,178 | ||||
Securities available-for-sale | 279,869 | 310,198 | 307,686 | 316,227 | 335,150 | ||||
Loans held-for-sale | 2,181 | 1,083 | - | 1,096 | 2,641 | ||||
Loans receivable, net of deferred fees and costs | 1,499,222 | 1,503,793 | 1,455,118 | 1,450,387 | 1,473,774 | ||||
Less: allowance for credit losses | (17,542) | (17,694) | (17,285) | (17,506) | (17,977) | ||||
Net loans receivable | 1,481,680 | 1,486,099 | 1,437,833 | 1,432,881 | 1,455,797 | ||||
Federal Home Loan Bank stock | 6,547 | 6,547 | 6,547 | 6,547 | 6,547 | ||||
Accrued interest receivable | 7,802 | 7,671 | 7,700 | 7,781 | 7,585 | ||||
Premises and equipment | 43,499 | 43,932 | 44,315 | 44,976 | 45,544 | ||||
Cash value of bank owned life insurance | 34,225 | 34,010 | 33,786 | 33,586 | 33,843 | ||||
Goodwill | 22,395 | 22,395 | 22,395 | 22,395 | 22,395 | ||||
Other intangible assets | 896 | 984 | 1,076 | 1,172 | 1,273 | ||||
Other assets | 42,372 | 33,145 | 35,063 | 34,873 | 37,771 | ||||
Total assets | $2,014,125 | $2,040,706 | $2,015,156 | $2,021,181 | $2,052,724 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||
Deposits: | |||||||||
Non-interest bearing | $281,477 | $270,682 | $278,705 | $267,441 | $280,296 | ||||
Interest bearing | 1,476,980 | 1,461,862 | 1,440,366 | 1,459,530 | 1,470,350 | ||||
Total | 1,758,457 | 1,732,544 | 1,719,071 | 1,726,971 | 1,750,646 | ||||
Federal funds purchased and repurchase agreements | 24,849 | 30,301 | 40,815 | 39,703 | 48,426 | ||||
Borrowed funds | 35,000 | 65,000 | 50,000 | 45,000 | 55,000 | ||||
Accrued expenses and other liabilities | 37,977 | 34,574 | 32,870 | 34,844 | 33,157 | ||||
Total liabilities | 1,856,283 | 1,862,419 | 1,842,756 | 1,846,518 | 1,887,229 | ||||
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 | 71,232 | 70,530 | 70,397 | 70,331 | 70,233 | ||||
Accumulated other comprehensive loss | (63,520) | (41,532) | (45,713) | (41,662) | (49,266) | ||||
Retained earnings | 150,130 | 149,289 | 147,716 | 145,994 | 144,528 | ||||
Total stockholders' equity | 157,842 | 178,287 | 172,400 | 174,663 | 165,495 | ||||
Total liabilities and stockholders' equity | $2,014,125 | $2,040,706 | $2,015,156 | $2,021,181 | $2,052,724 | ||||
(1) Shares of common stock issued and outstanding were 4,330,893 at 9/30/2026; 4,333,002 at 6/30/2026; 4,330,486 at 3/31/2026; 4,326,747 at
12/31/2025; and 4,327,511 at 9/30/2025.
8
Finward Bancorp Exhibit 99.1
Third Quarter 2026 Financial Results (unaudited)
Consolidated Statements of Income
Quarter Ended | |||||||||
(Dollars in thousands, except per share data) | 9/30/2026 | 6/30/2026 | 3/31/2026 | 12/31/2025 | 9/30/2025 | ||||
Interest income: | |||||||||
Loans | $21,438 | $20,468 | $19,871 | $20,496 | $20,246 | ||||
Securities & short-term investments | 2,579 | 2,597 | 2,850 | 2,916 | 3,094 | ||||
Total interest income | 24,017 | 23,065 | 22,721 | 23,412 | 23,340 | ||||
Interest expense: | |||||||||
Deposits | 7,478 | 7,159 | 6,959 | 7,605 | 7,996 | ||||
Borrowings | 597 | 726 | 691 | 765 | 901 | ||||
Total interest expense | 8,075 | 7,885 | 7,650 | 8,370 | 8,897 | ||||
Net interest income | 15,942 | 15,180 | 15,071 | 15,042 | 14,443 | ||||
Provision for (benefit from) credit losses | 124 | 264 | 55 | (84) | (301) | ||||
Net interest income after provision for credit losses | 15,818 | 14,916 | 15,016 | 15,126 | 14,744 | ||||
Non-interest income: | |||||||||
Fees and service charges | 1,251 | 1,331 | 1,295 | 1,485 | 1,463 | ||||
Wealth management operations | 725 | 748 | 661 | 659 | 759 | ||||
Gain (loss) on tax credit investment | - | - | - | - | 23 | ||||
Gain (loss) on sale of loans held-for-sale, net | 281 | 228 | 257 | 346 | 265 | ||||
Gain (loss) on sale of securities, net | - | - | - | (1,577) | - | ||||
Bank owned life insurance | 215 | 223 | 201 | 522 | 439 | ||||
Gain (loss) on sale of property and equipment | 182 | (180) | - | 1 | (56) | ||||
Other | 1 | 48 | 3 | 37 | 20 | ||||
Total non-interest income | 2,655 | 2,398 | 2,417 | 1,473 | 2,913 | ||||
Non-interest expense: | |||||||||
Compensation and benefits | 9,735 | 8,033 | 7,591 | 7,573 | 7,330 | ||||
Occupancy and equipment | 1,693 | 1,741 | 1,991 | 2,111 | 2,004 | ||||
Data processing | 1,210 | 1,176 | 1,105 | 1,465 | 1,116 | ||||
Federal deposit insurance premiums | 383 | 347 | 381 | 417 | 399 | ||||
Marketing | 399 | 266 | 587 | 230 | 257 | ||||
Professional and outside services | 1,614 | 1,221 | 1,169 | 906 | 945 | ||||
Technology | 594 | 516 | 508 | 521 | 549 | ||||
Other | 1,355 | 1,557 | 1,436 | 1,558 | 1,497 | ||||
Total non-interest expense | 16,983 | 14,857 | 14,768 | 14,781 | 14,097 | ||||
Income before income taxes | 1,490 | 2,457 | 2,665 | 1,818 | 3,560 | ||||
Income tax expenses (benefit) | 129 | 364 | 423 | (166) | 63 | ||||
Net income | $1,361 | $2,093 | $2,242 | $1,984 | $3,497 | ||||
Earnings per common share: | |||||||||
Basic | $0.32 | $0.49 | $0.52 | $0.46 | $0.82 | ||||
Diluted | $0.31 | $0.48 | $0.52 | $0.46 | $0.81 | ||||
9
Finward Bancorp Exhibit 99.1
Third Quarter 2026 Financial Results (unaudited)
Consolidated Statements of Income (cont'd)
Nine Months Ended | |||
(Dollars in thousands, except per share data) | 9/30/2026 | 9/30/2025 | |
Interest income: | |||
Loans | $61,777 | $59,841 | |
Securities & short-term investments | 8,026 | 8,510 | |
Total interest income | 69,803 | 68,351 | |
Interest expense: | |||
Deposits | 21,596 | 23,821 | |
Borrowings | 2,014 | 2,829 | |
Total interest expense | 23,610 | 26,650 | |
Net interest income | 46,193 | 41,701 | |
Provision for (benefit from) credit losses | 443 | (121) | |
Net interest income after provision for credit losses | 45,750 | 41,822 | |
Non-interest income: | |||
Fees and service charges | 3,877 | 3,902 | |
Wealth management operations | 2,134 | 2,074 | |
Gain on tax credit investment | — | 90 | |
Gain on sale of loans held-for-sale, net | 766 | 873 | |
Bank owned life insurance | 639 | 857 | |
Gain (loss) on sale of property and equipment | 2 | (56) | |
Other | 52 | 85 | |
Total non-interest income | 7,470 | 7,825 | |
Non-interest expense: | |||
Compensation and benefits | 25,359 | 22,015 | |
Occupancy and equipment | 5,425 | 6,050 | |
Data processing | 3,491 | 3,496 | |
Federal deposit insurance premiums | 1,111 | 1,303 | |
Marketing | 1,252 | 557 | |
Professional and outside services | 4,004 | 3,320 | |
Technology | 1,618 | 1,548 | |
Other | 4,348 | 5,066 | |
Total non-interest expense | 46,608 | 43,355 | |
Income before income taxes | 6,612 | 6,292 | |
Income tax expenses | 916 | 189 | |
Net income | $5,696 | $6,103 | |
Earnings per common share: | |||
Basic | $1.33 | $1.43 | |
Diluted | $1.32 | $1.42 | |
10
Finward Bancorp Exhibit 99.1
Third Quarter 2026 Financial Results (unaudited)
Loans
As of | |||||||||||||||||
(Dollars in thousands) | 9/30/2026 | 6/30/2026 | 3/31/2026 | 12/31/2025 | 9/30/2025 | 9/30/2026 vs 6/30/2026 | 9/30/2026 vs 9/30/2025 | ||||||||||
Residential real estate | $454,668 | $455,882 | $445,097 | $442,443 | $450,007 | $(1,214) | (0.3)% | $4,661 | 1.0% | ||||||||
Home equity | 53,180 | 55,601 | 53,855 | 53,497 | 51,813 | (2,421) | (4.4)% | 1,367 | 2.6% | ||||||||
Commercial real estate | 595,850 | 597,364 | 564,613 | 555,594 | 564,558 | (1,514) | (0.3)% | 31,292 | 5.5% | ||||||||
Construction and land development | 86,646 | 77,710 | 76,582 | 77,208 | 79,678 | 8,936 | 11.5% | 6,968 | 8.7% | ||||||||
Multifamily | 173,382 | 180,148 | 185,824 | 183,902 | 192,698 | (6,766) | (3.8)% | (19,316) | (10.0)% | ||||||||
Commercial business | 105,513 | 103,281 | 94,160 | 99,304 | 96,192 | 2,232 | 2.2% | 9,321 | 9.7% | ||||||||
Consumer | 278 | 2,036 | 310 | 870 | 348 | (1,758) | (86.3)% | (70) | (20.1)% | ||||||||
Manufactured homes | 21,318 | 22,050 | 22,981 | 23,708 | 24,372 | (732) | (3.3)% | (3,054) | (12.5)% | ||||||||
Government | 7,640 | 9,818 | 9,998 | 12,298 | 12,298 | (2,178) | (22.2)% | (4,658) | (37.9)% | ||||||||
Loans receivable | 1,498,475 | 1,503,890 | 1,453,420 | 1,448,824 | 1,471,964 | (5,415) | (0.4)% | 26,511 | 1.8% | ||||||||
Net deferred loan origination costs | 745 | 1,006 | 1,723 | 1,606 | 1,719 | (261) | (25.9)% | (974) | (56.7)% | ||||||||
Loan clearing funds | 2 | (1,103) | (25) | (43) | 91 | 1,105 | (100.2)% | (89) | (97.8)% | ||||||||
Loans receivable, net | $1,499,222 | $1,503,793 | $1,455,118 | $1,450,387 | $1,473,774 | $(4,571) | (0.3)% | $25,448 | 1.7% | ||||||||
Deposits
As of | |||||||||||||||||
(Dollars in thousands) | 9/30/2026 | 6/30/2026 | 3/31/2026 | 12/31/2025 | 9/30/2025 | 9/30/2026 vs 6/30/2026 | 9/30/2026 vs 9/30/2025 | ||||||||||
Checking | $590,974 | $584,901 | $587,575 | $592,214 | $579,760 | $6,073 | 1.0% | $11,214 | 1.9% | ||||||||
Savings | 241,412 | 247,054 | 253,408 | 254,055 | 257,058 | (5,642) | (2.3)% | (15,646) | (6.1)% | ||||||||
Money market | 432,725 | 403,140 | 389,274 | 381,111 | 377,155 | 29,585 | 7.3% | 55,570 | 14.7% | ||||||||
Certificates of deposit | 493,346 | 497,449 | 488,814 | 499,591 | 536,673 | (4,103) | (0.8)% | (43,327) | (8.1)% | ||||||||
Total deposits | $1,758,457 | $1,732,544 | $1,719,071 | $1,726,971 | $1,750,646 | $25,913 | 1.5% | $7,811 | 0.4% | ||||||||
11
Finward Bancorp Exhibit 99.1
Third Quarter 2026 Financial Results (unaudited)
Asset Quality
As of and for the Quarter Ended | |||||||||
(Dollars in thousands) | 9/30/2026 | 6/30/2026 | 3/31/2026 | 12/31/2025 | 9/30/2025 | ||||
Non-accruing loans | $16,788 | $16,549 | $12,371 | $11,162 | $13,892 | ||||
Securities in non-accrual | 1,708 | 1,909 | 1,891 | 1,882 | 1,616 | ||||
Foreclosed real estate | - | - | 89 | 89 | - | ||||
Total nonperforming assets | $18,496 | $18,458 | $14,351 | $13,133 | $15,508 | ||||
Allowance for credit losses (ACL): | |||||||||
ACL specific allowances for collateral dependent loans | $155 | $147 | $- | $263 | $912 | ||||
ACL general allowances for loan portfolio | 17,387 | 17,547 | 17,285 | 17,243 | 17,065 | ||||
Total ACL | $17,542 | $17,694 | $17,285 | $17,506 | $17,977 | ||||
Allowance for Credit Losses
As of and for the Quarter Ended | |||||||||
(Dollars in thousands) | 9/30/2026 | 6/30/2026 | 3/31/2026 | 12/31/2025 | 9/30/2025 | ||||
Beginning allowance for credit losses | $17,694 | $17,285 | $17,506 | $17,977 | $18,184 | ||||
Provision for (benefit from) loan losses | 88 | 378 | (224) | (170) | 61 | ||||
Net (charge-offs) recoveries | (240) | 31 | 3 | (301) | (268) | ||||
Ending allowance for credit losses | $17,542 | $17,694 | $17,285 | $17,506 | $17,977 | ||||
12
Finward Bancorp Exhibit 99.1
Third Quarter 2026 Financial Results (unaudited)
Bank-Level Regulatory Capital Requirements
September 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 | $191,109 | 11.74% | $73,249 | 4.50% | $105,805 | 6.50% | ||||||
Tier 1 capital to risk-weighted assets | $191,109 | 11.74% | $97,666 | 6.00% | $130,221 | 8.00% | ||||||
Total capital to risk-weighted assets | $210,604 | 12.94% | $130,221 | 8.00% | $162,777 | 10.00% | ||||||
Tier 1 leverage ratio | $191,109 | 9.29% | $82,312 | 4.00% | $102,891 | 5.00% | ||||||
(1) Current quarter ratios are estimated.
13
Finward Bancorp Exhibit 99.1
Third Quarter 2026 Financial Results (unaudited)
Reconciliation of Non-GAAP Performance Measures
Quarter Ended | |||||||||
(Dollars in thousands, except per share amounts) | 9/30/2026 | 6/30/2026 | 3/31/2026 | 12/31/2025 | 9/30/2025 | ||||
Tangible Common Ratios | |||||||||
Stockholder's equity (GAAP) | $157,842 | $178,287 | $172,400 | $174,663 | $165,495 | ||||
Less: Goodwill (GAAP) | (22,395) | (22,395) | (22,395) | (22,395) | (22,395) | ||||
Less: Other intangibles (GAAP) | (896) | (984) | (1,076) | (1,172) | (1,273) | ||||
Tangible common equity (non-GAAP) | $134,551 | $154,908 | $148,929 | $151,096 | $141,827 | ||||
Total assets (GAAP) | $2,014,125 | $2,040,706 | $2,015,156 | $2,021,181 | $2,052,724 | ||||
Less: Goodwill (GAAP) | (22,395) | (22,395) | (22,395) | (22,395) | (22,395) | ||||
Less: Other intangibles (GAAP) | (896) | (984) | (1,076) | (1,172) | (1,273) | ||||
Tangible assets (non-GAAP) | $1,990,834 | $2,017,327 | $1,991,685 | $1,997,614 | $2,029,056 | ||||
Shares outstanding - end of quarter | 4,330,893 | 4,333,002 | 4,330,486 | 4,326,747 | 4,327,511 | ||||
Common book value per share (GAAP) | $36.45 | $41.15 | $39.81 | $40.37 | $38.24 | ||||
Tangible common book value per share (non-GAAP) | $31.07 | $35.75 | $34.39 | $34.92 | $32.77 | ||||
Total equity to total assets (GAAP) | 7.84% | 8.74% | 8.56% | 8.64% | 8.06% | ||||
Tangible common equity to tangible assets (non-GAAP) | 6.76% | 7.68% | 7.48% | 7.56% | 6.99% | ||||
Calculation of net interest margin, taxable-equivalent basis | |||||||||
Net interest income (GAAP) | $15,942 | $15,180 | $15,071 | $15,042 | $14,443 | ||||
Tax-equivalent adjustment on securities and loans (1) | 575 | 580 | 582 | 629 | 663 | ||||
Net interest income (tax-equivalent basis) | $16,517 | $15,760 | $15,653 | $15,671 | $15,106 | ||||
Total average earning assets | $1,882,206 | $1,869,793 | $1,868,911 | $1,889,616 | $1,900,066 | ||||
Net interest margin | 3.39% | 3.25% | 3.23% | 3.18% | 3.04% | ||||
Net interest margin (tax-equivalent basis) | 3.51% | 3.37% | 3.35% | 3.32% | 3.18% | ||||
Efficiency ratio | |||||||||
Total non-interest expense | $16,983 | $14,857 | $14,768 | $14,781 | $14,097 | ||||
Total revenue | 18,597 | 17,578 | 17,488 | 16,515 | 17,356 | ||||
Efficiency ratio | 91.32% | 84.52% | 84.45% | 89.50% | 81.22% | ||||
(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%.