Finward Bancorp Announces Earnings For the Twelve Months and Quarter Ended December 31, 2023
2024年1月31日 - 6:02AM
Finward Bancorp (Nasdaq: FNWD) (the “Bancorp”), the holding company
for Peoples Bank (the “Bank”), today announced that net income
available to common stockholders was $8.4 million, or $1.96 per
diluted share, for the twelve months ended December 31, 2023, as
compared to $15.1 million, or $3.60 per diluted share, for the year
ended December 31, 2022. For the quarter ended December 31, 2023,
the Bancorp’s net income totaled $1.5 million, or $0.35 per diluted
share, as compared to $4.0 million, or $0.93 per share, for the
quarter ending December 31, 2022. Selected performance metrics are
as follows for the periods presented:
Performance Ratios |
Quarter ended, |
|
|
Twelve months ended, |
|
|
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
|
(Unaudited) |
|
(Unaudited) |
|
|
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
|
December 31, |
|
December 31, |
|
|
|
2023 |
|
2023 |
|
2023 |
|
2023 |
|
2022 |
|
|
2023 |
|
2022 |
Return on equity |
4.92 |
% |
|
6.55 |
% |
|
7.05 |
% |
|
6.42 |
% |
|
12.96 |
% |
|
|
6.28 |
% |
|
10.47 |
% |
Return on assets |
0.29 |
% |
|
0.42 |
% |
|
0.46 |
% |
|
0.43 |
% |
|
0.78 |
% |
|
|
0.40 |
% |
|
0.74 |
% |
Noninterest income / average assets |
0.53 |
% |
|
0.46 |
% |
|
0.57 |
% |
|
0.50 |
% |
|
0.56 |
% |
|
|
0.52 |
% |
|
0.56 |
% |
Noninterest expense / average assets |
2.60 |
% |
|
2.59 |
% |
|
2.66 |
% |
|
2.75 |
% |
|
3.07 |
% |
|
|
2.65 |
% |
|
3.05 |
% |
Efficiency ratio |
87.49 |
% |
|
86.88 |
% |
|
82.11 |
% |
|
82.35 |
% |
|
79.63 |
% |
|
|
84.58 |
% |
|
78.95 |
% |
“While margin pressure continued in the fourth quarter, we
believe we are now closer to the end of the interest rate
tightening cycle than the beginning. Focusing on customers and
improving efficiency have allowed us to reach this point, and we
are confident initiatives undertaken in 2023 will bear fruit in the
coming year,” said Benjamin Bochnowski, Chairman and Chief
Executive Officer. “We have been proactive in improving our overall
asset quality position, improving earnings, increasing liquidity,
and managing capital in multiple rate environments, as demonstrated
by a loan sale we recently closed in December, our announced sale
leaseback transaction, and dividend adjustments. The Bank remains
opportunistic in evaluating other areas of potential improvement,
including the securities portfolio, borrowing levels, and
identifying additional expense efficiencies. Both the expected
increase in capital from our sale leaseback transaction and a
moderating interest rate environment increase optionality as we
work to improve our earnings profile,” he continued.
Highlights of the year-to-date period
include:
- Net interest margin - The net interest margin
for the twelve months ended December 31, 2023, was 2.83%, compared
to 3.56% for the twelve months ended December 31, 2022. The
tax-adjusted net interest margin (a non-GAAP measure) for the
twelve months ended December 31, 2023, was 2.98%, compared to 3.74%
for the twelve months ended December 31, 2022. The decreased net
interest margin is primarily the result of the increase in
short-term interest rates relative to long-term interest rates as
part of the Federal Reserve’s response to high inflation and other
factors. The compression seen in 2023 may continue in moderate
fashion into 2024, unless target rates decrease and our
interest-bearing liabilities can be repriced at those lower rates.
See Table 1 at the end of this press release for a reconciliation
of the tax-adjusted net interest margin to the GAAP net interest
margin.
- Funding - On December 31, 2023, deposits
totaled $1.81 billion, compared to $1.78 billion on December 31,
2022, an increase of $38.4 million or 2.2%. As of December 31,
2023, core deposits totaled $1.3 billion, compared to $1.4 billion
on December 31, 2022, a decrease of $131.0 million or 9.2%. Core
deposits include checking, savings, and money market accounts and
represented 70.7% of the Bancorp’s total deposits at December 31,
2023. During 2023, balances for checking and savings accounts
decreased as balances migrated into higher yielding accounts. On
December 31, 2023, balances for certificates of deposit totaled
$532.1 million, compared to $363.1 million on December 31, 2022, an
increase of $169.0 million or 46.5%. The decrease in core deposits
and increase in certificate of deposit balances is related to
customer preferences for higher yielding deposits. In addition, on
December 31, 2023, borrowings and repurchase agreements totaled
$118.1 million, compared to $135.5 million at December 31, 2022, a
decrease of $17.4 million or 12.8%. The decrease in short-term
borrowings was the result of cyclical inflows and outflows of
interest-earning assets and interest-bearing liabilities. As of
December 31, 2023, 71% of our deposits are fully FDIC insured, and
another 11% are further backed by the Indiana Public Deposit
Insurance Fund, an overall increase of 1% from the amount as of
September 30, 2023, of 73% of deposits being fully FDIC insured,
and 8% 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, and access to
diversified borrowing sources. As of December 31,2023, the Bancorp
had available liquidity of $824 million including borrowing
capacity from the FHLB and Federal Reserve facilities.
- Unrealized losses on the securities portfolio
- Accumulated other comprehensive losses were $51.6
million as of December 31, 2023, compared to $64.3 million on
December 31, 2022, a decrease of $12.7 million or 19.7%. The yield
on the securities portfolio improved on a year-to-date basis to
2.43% for the twelve months ended December 31, 2023, up from 2.22%
for the twelve months ended December 31, 2022. Management
continually monitors the securities portfolio for restructuring
opportunities but has not yet found economically viable options.
Other than potential restructuring, management does not currently
anticipate the need to realize losses from sales in the securities
portfolio, as losses are currently driven by the interest rate
environment and management expects such losses to be fully
recoverable. Further, it remains unlikely the Bank will be required
to sell the investments in the portfolio before recovery of their
amortized cost basis, which may be at maturity.
- Gain on sale of loans - Increases in mortgage
rates have slowed the sale of fixed rate mortgage loans into the
secondary market. As a result, gains from the sale of loans for the
twelve months ended December 31, 2023, totaled $1.1 million, down
from $1.4 million for the twelve months ended December 31, 2022.
During the twelve months ended December 31, 2023, the Bank
originated $37.9 million in new fixed rate mortgage loans for sale,
compared to $44.9 million during the twelve months ended December
31, 2022. During the twelve months ended December 31, 2023, the
Bank originated $41.6 million in new 1-4 family loans retained in
its portfolio, compared to $105.4 million during the twelve months
ended December 31, 2022. Total 1-4 family originations for the
three-month period ending December 31, 2023, totaled $17.3 million,
a decrease of $8.2 million from the amount for the three-month
period ending September 30, 2023, totaling $25.5 million. This
decrease was driven by seasonal demand for mortgages peaking in the
spring and summer months, as well as increasing market interest
rates which slowed loan growth. These retained loans are primarily
construction loans and adjustable-rate loans with a fixed-rate
period of 7 years or less, and the Bank continues to sell
longer-duration fixed rate mortgages into the secondary
market.
- Commercial lending - The Bank’s aggregate loan
portfolio totaled $1.5 billion on December 31, 2023, compared to
$1.5 billion on December 31, 2022. During the twelve months ended
December 31, 2023, the Bank originated $234.3 million in new
commercial loans, compared to $376.0 million during the twelve
months ended December 31, 2022. The loan portfolio represents 77.2%
of earning assets and is comprised of 61.9% commercial related
credits. At December 31, 2023, the Bancorp’s portfolio loan
balances in commercial real estate owner occupied properties of
$220.2 million or 14.6% of total loan balances and commercial real
estate non-owner occupied properties of $283.0 million or 18.7% of
total loan balances. Of the $283.0 million in commercial real
estate non-owner occupied properties balances, loans collateralized
by office buildings represented $41.2 million or 2.7% of total loan
balances.
- Asset quality - At December 31, 2023,
non-performing loans totaled $11.5 million, compared to $18.4
million at December 31, 2022, a decrease of $6.9 million or 37.7%.
The Bank’s ratio of non-performing loans to total loans was 0.76%
at December 31, 2023, compared to 1.21% at December 31, 2022. The
Bank’s ratio of non-performing assets to total assets was 0.61% at
December 31, 2023, compared to 0.94% at December 31, 2022. The
decrease in non-performing loans is primarily the result of
management’s strategic non-performing asset management which
includes proactive relationship management and note sales. In
December 2023, the Bank completed a $5.4 million substandard loan
sale to further reduce our outstanding nonperforming loans and
increase our liquidity. At December 31, 2023, the
allowance for credit losses (ACL) totaled $18.8 million and is
considered adequate by management. For the year ended December 31,
2023, charge-offs, net of recoveries, totaled $2.0 million. The
allowance for credit losses as a percentage of total loans was
1.24% at December 31, 2023, and the allowance for credit losses as
a percentage of non-performing loans, or coverage ratio, was 163.9%
at December 31, 2023. On January 1, 2023, the Bancorp adopted ASU
No. 2016-13 resulting in an implementation entry of $8.3 million,
increasing the ACL by $5.2 million and unfunded commitment
liability by $3.1 million, and also resulting in retained earnings
decreasing $6.1 million and generating a deferred tax asset of $2.2
million. The majority of the implementation entry is related to
including acquired loan portfolios in the model and the addition of
using economic forecasts in estimating future losses. In addition,
$1.0 million of non-accretable credit loan discounts on purchase
credit impaired loans now classified as purchase credit
deteriorated were reallocated to the ACL.
- Operating Expenses: Non-interest expense as a
percent of average assets was 2.65% for the twelve months ended
December 31, 2023, as compared to 3.05% for 2022. Recent branch
closures have had a positive impact on this ratio. Management also
continues to improve efficiency in personnel and has netted a
reduction of 14 full time equivalents, or 4%, through the twelve
months ended December 31, 2023. Compensation and benefits expense
is down 4.6% for the twelve months ended December 31, 2023,
compared to 2022.
- Capital Adequacy - As of
December 31, 2023, the Bank’s tier 1 capital to adjusted average
assets ratio totaled 7.8%, on par with the ratio as of September
30, 2023, of 7.8%, and is within all regulatory capital
requirements, and continues to be considered well capitalized. The
Bancorp’s tangible book value per share was $28.31 at December 31,
2023, up from $25.41 as of December 31, 2022 (a non-GAAP measure).
The increase in tangible book value per share is primarily a result
of an improvement in our accumulated other comprehensive losses
attributable to net unrealized gains on securities available for
sale of approximately $13 million for the year ended December 31,
2023. Tangible common equity to total assets was 5.77% at December
31, 2023, up from 5.27% as of December 31, 2022 (a non-GAAP
measure). The increase is due to decreased accumulated other
comprehensive losses compared to the year-ended December 31, 2022.
Excluding accumulated other comprehensive losses, tangible book
value per share decreased to $40.31 as of December 31, 2023, from
$40.36 as of December 31, 2022 (a non-GAAP measure). The decrease
is related to a reduction of retained earnings of $6.1 million due
to the impact of the adoption of ASU No. 2016-13 and the payment of
dividends of $4.5 million. See Table 1 at the end of this press
release for a reconciliation of the tangible book value per share,
tangible book value per share adjusted for accumulated other
losses, tangible common equity as a percentage of total assets, and
tangible common equity as a percentage of total assets adjusted for
accumulated other comprehensive losses to the related GAAP
ratios.
- Sale-Leaseback Transaction - On January 29,
2024, the Bank entered into an agreement for the purchase and sale
of property (the “Sale Agreement”), with MountainSeed Real Estate
Services, LLC (the “Buyer”), a Georgia limited liability company,
which provides for the sale to the Buyer of 5 properties owned and
operated as branch locations by the Bank (the “Properties”) for an
aggregate purchase price of $17.2 million, subject to customary
adjustments at closing. Four of the Properties are located in Lake
County, Indiana and one Property is located in Cook County,
Illinois. Under the Sale Agreement, the Bank has agreed,
concurrently with the closing of the sale of the Properties, to
enter into lease agreements (the “Lease Agreements”) with the Buyer
under which the Bank will lease each of the Properties. Each of the
Lease Agreements will have an initial term of 15 years. The Bank’s
obligations under the Lease Agreements will be guaranteed by the
Bancorp pursuant to a form of guaranty to be entered into at the
closing of the sale-leaseback transaction. The Bancorp expects that
the sale-leaseback transaction will close by the third week of
February 2024, subject to the satisfaction of customary closing
conditions. We will not close any branches or exit any markets as
part of the sale-leaseback transaction. We expect the
sale-leaseback transaction will result in proceeds in excess of
book value of the Properties of approximately $11.7 million. The
aggregate first full year of rent expense under the Lease
Agreements will be approximately $1.5 million pre-tax, and will be
partially offset by the elimination of the annual pre-tax
depreciation expenses on the buildings of approximately $265
thousand. The Lease Agreements also include an annual rent
adjustment of 2.0%. The Bank anticipates using the net proceeds
generated from the sale-leaseback transaction for general corporate
purposes, including a potential reduction in borrowed funds and
associated interest expense costs.
Disclosures Regarding Non-GAAP Financial
Measures Reported amounts are presented in accordance with
GAAP. In this press release, the Bancorp also provides certain
financial measures identified as non-GAAP. The Bancorp’s management
believes that the non-GAAP information, which consists of tangible
common equity, tangible common equity adjusted for accumulated
other comprehensive losses, tangible book value per share, tangible
book value per share adjusted for accumulated other comprehensive
losses, tangible common equity/total assets, tax-adjusted net
interest margin, and efficiency ratio, which can vary from period
to period, provides a better comparison of period to period
operating performance. Additionally, the Bancorp believes this
information is utilized by regulators and market analysts to
evaluate a company’s financial condition and, therefore, such
information is useful to investors. These disclosures should not be
viewed as a substitute for financial results in accordance with
GAAP, nor are they necessarily comparable to non-GAAP performance
measures which may be presented by other companies. Refer to Table
1 – Reconciliation of Non-GAAP Financial Measures at the end of
this document for a reconciliation of the non-GAAP measures
identified herein and their most comparable GAAP measures.
About Finward BancorpFinward 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 StatementsThis 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 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 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.
Finward Bancorp |
Quarterly Financial Report |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance Ratios |
Quarter ended, |
|
|
Twelve months ended, |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
|
(Unaudited) |
|
(Unaudited) |
|
December 31, |
September 30, |
June 30, |
|
March 31, |
|
December 31, |
|
December 31, |
December 31, |
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
2023 |
|
|
|
2022 |
|
Return on equity |
|
4.92 |
% |
|
|
6.55 |
% |
|
|
7.05 |
% |
|
|
6.42 |
% |
|
|
12.96 |
% |
|
|
|
6.28 |
% |
|
|
10.47 |
% |
Return on assets |
|
0.29 |
% |
|
|
0.42 |
% |
|
|
0.46 |
% |
|
|
0.43 |
% |
|
|
0.78 |
% |
|
|
|
0.40 |
% |
|
|
0.74 |
% |
Noninterest income / average assets |
|
0.53 |
% |
|
|
0.46 |
% |
|
|
0.57 |
% |
|
|
0.50 |
% |
|
|
0.56 |
% |
|
|
|
0.52 |
% |
|
|
0.56 |
% |
Noninterest expense / average assets |
|
2.60 |
% |
|
|
2.59 |
% |
|
|
2.66 |
% |
|
|
2.75 |
% |
|
|
3.07 |
% |
|
|
|
2.65 |
% |
|
|
3.05 |
% |
Efficiency ratio |
|
87.49 |
% |
|
|
86.88 |
% |
|
|
82.11 |
% |
|
|
82.35 |
% |
|
|
79.63 |
% |
|
|
|
84.58 |
% |
|
|
78.95 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-performing assets to total assets |
|
0.61 |
% |
|
|
0.54 |
% |
|
|
0.62 |
% |
|
|
1.02 |
% |
|
|
0.94 |
% |
|
|
|
0.61 |
% |
|
|
0.94 |
% |
Non-performing loans to total loans |
|
0.76 |
% |
|
|
0.66 |
% |
|
|
0.80 |
% |
|
|
1.34 |
% |
|
|
1.21 |
% |
|
|
|
0.76 |
% |
|
|
1.21 |
% |
Allowance for credit losses to non-performing loans |
|
163.90 |
% |
|
|
192.89 |
% |
|
|
158.26 |
% |
|
|
96.15 |
% |
|
|
70.18 |
% |
|
|
|
163.90 |
% |
|
|
70.18 |
% |
Allowance for credit losses to loans outstanding |
|
1.24 |
% |
|
|
1.27 |
% |
|
|
1.27 |
% |
|
|
1.29 |
% |
|
|
0.85 |
% |
|
|
|
1.24 |
% |
|
|
0.85 |
% |
Foreclosed real estate to total assets |
|
0.00 |
% |
|
|
0.00 |
% |
|
|
0.00 |
% |
|
|
0.00 |
% |
|
|
0.00 |
% |
|
|
|
0.00 |
% |
|
|
0.00 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share |
$ |
0.36 |
|
|
$ |
0.52 |
|
|
$ |
0.57 |
|
|
$ |
0.52 |
|
|
$ |
0.93 |
|
|
|
$ |
1.96 |
|
|
$ |
3.61 |
|
Diluted earnings per share |
$ |
0.35 |
|
|
$ |
0.51 |
|
|
$ |
0.57 |
|
|
$ |
0.51 |
|
|
$ |
0.93 |
|
|
|
$ |
1.96 |
|
|
$ |
3.60 |
|
Net worth / total assets |
|
6.99 |
% |
|
|
5.70 |
% |
|
|
6.33 |
% |
|
|
6.66 |
% |
|
|
6.59 |
% |
|
|
|
6.99 |
% |
|
|
6.59 |
% |
Book value per share |
$ |
34.28 |
|
|
$ |
27.68 |
|
|
$ |
31.77 |
|
|
$ |
32.47 |
|
|
$ |
31.73 |
|
|
|
$ |
34.28 |
|
|
$ |
31.73 |
|
Closing stock price |
$ |
25.24 |
|
|
$ |
22.00 |
|
|
$ |
22.00 |
|
|
$ |
29.10 |
|
|
$ |
36.20 |
|
|
|
$ |
25.24 |
|
|
$ |
36.20 |
|
Price per earnings per share |
$ |
17.77 |
|
|
$ |
10.67 |
|
|
$ |
9.59 |
|
|
$ |
14.10 |
|
|
$ |
9.70 |
|
|
|
$ |
12.87 |
|
|
$ |
10.02 |
|
Dividend declared per common share |
$ |
0.12 |
|
|
$ |
0.31 |
|
|
$ |
0.31 |
|
|
$ |
0.31 |
|
|
$ |
0.31 |
|
|
|
$ |
1.05 |
|
|
$ |
1.24 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common equity tier 1 capital to risk-weighted assets |
|
10.4 |
% |
|
|
10.2 |
% |
|
|
10.0 |
% |
|
|
10.0 |
% |
|
|
10.0 |
% |
|
|
|
10.4 |
% |
|
|
10.0 |
% |
Tier 1 capital to risk-weighted assets |
|
10.4 |
% |
|
|
10.2 |
% |
|
|
10.0 |
% |
|
|
10.0 |
% |
|
|
10.0 |
% |
|
|
|
10.4 |
% |
|
|
10.0 |
% |
Total capital to risk-weighted assets |
|
11.4 |
% |
|
|
11.2 |
% |
|
|
11.0 |
% |
|
|
11.0 |
% |
|
|
10.9 |
% |
|
|
|
11.4 |
% |
|
|
10.9 |
% |
Tier 1 capital to adjusted average assets |
|
7.8 |
% |
|
|
7.8 |
% |
|
|
7.6 |
% |
|
|
7.7 |
% |
|
|
7.7 |
% |
|
|
|
7.8 |
% |
|
|
7.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Performance Ratios |
Quarter ended, |
|
|
Twelve Months Ended |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
|
(Unaudited) |
|
(Unaudited) |
|
December 31, |
September 30, |
June 30, |
|
March 31, |
|
December 31, |
|
December 31, |
December 31, |
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
2023 |
|
|
|
2022 |
|
Net interest margin - tax equivalent |
|
2.80 |
% |
|
|
2.87 |
% |
|
|
3.03 |
% |
|
|
3.23 |
% |
|
|
3.73 |
% |
|
|
|
2.98 |
% |
|
|
3.74 |
% |
Tangible book value per diluted share |
$ |
28.31 |
|
|
$ |
21.63 |
|
|
$ |
25.64 |
|
|
$ |
26.24 |
|
|
$ |
25.41 |
|
|
|
$ |
28.31 |
|
|
$ |
25.41 |
|
Tangible book value per diluted share adjusted for AOCI |
$ |
40.31 |
|
|
$ |
39.96 |
|
|
$ |
39.62 |
|
|
$ |
39.23 |
|
|
$ |
40.36 |
|
|
|
$ |
40.31 |
|
|
$ |
40.36 |
|
Tangible common equity to total assets |
|
5.77 |
% |
|
|
4.46 |
% |
|
|
5.11 |
% |
|
|
5.38 |
% |
|
|
5.27 |
% |
|
|
|
5.77 |
% |
|
|
5.27 |
% |
Tangible common equity to total assets adjusted for AOCI |
|
8.22 |
% |
|
|
8.23 |
% |
|
|
7.89 |
% |
|
|
8.05 |
% |
|
|
8.38 |
% |
|
|
|
8.22 |
% |
|
|
8.38 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended |
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands) |
Average Balances, Interest, and Rates |
|
(unaudited) |
December 31, 2023 |
|
December 31, 2022 |
|
|
Average Balance |
|
Interest |
|
Rate (%) |
|
Average Balance |
|
Interest |
|
Rate (%) |
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
Interest bearing deposits in other financial institutions |
$ |
53,268 |
|
|
$ |
689 |
|
5.17 |
|
$ |
13,914 |
|
|
$ |
124 |
|
3.56 |
|
Federal
funds sold |
|
1,881 |
|
|
|
20 |
|
4.25 |
|
|
1,460 |
|
|
|
3 |
|
0.82 |
|
Certificates
of deposit in other financial institutions |
|
- |
|
|
|
- |
|
- |
|
|
2,218 |
|
|
|
13 |
|
2.34 |
|
Securities
available-for-sale |
|
342,305 |
|
|
|
2,196 |
|
2.57 |
|
|
360,865 |
|
|
|
2,197 |
|
2.44 |
|
Loans
receivable |
|
1,516,126 |
|
|
|
19,281 |
|
5.09 |
|
|
1,503,543 |
|
|
|
17,504 |
|
4.66 |
|
Federal Home
Loan Bank stock |
|
6,547 |
|
|
|
69 |
|
4.22 |
|
|
4,596 |
|
|
|
21 |
|
1.83 |
|
Total
interest earning assets |
|
1,920,127 |
|
|
$ |
22,256 |
|
4.64 |
|
|
1,886,596 |
|
|
$ |
19,862 |
|
4.21 |
|
Cash and
non-interest bearing deposits in other financial institutions |
|
18,545 |
|
|
|
|
|
|
|
3,240 |
|
|
|
|
|
|
Allowance
for credit losses |
|
(19,552 |
) |
|
|
|
|
|
|
(13,289 |
) |
|
|
|
|
|
Other
noninterest bearing assets |
|
158,615 |
|
|
|
|
|
|
|
158,812 |
|
|
|
|
|
|
Total assets |
$ |
2,077,735 |
|
|
|
|
|
|
$ |
2,035,359 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES
AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits |
$ |
1,475,171 |
|
|
$ |
8,180 |
|
2.22 |
|
$ |
1,411,064 |
|
|
$ |
2,007 |
|
0.57 |
|
Repurchase
agreements |
|
42,584 |
|
|
|
402 |
|
3.78 |
|
|
19,799 |
|
|
|
102 |
|
2.06 |
|
Borrowed
funds |
|
86,929 |
|
|
|
958 |
|
4.41 |
|
|
72,772 |
|
|
|
944 |
|
5.19 |
|
Total
interest bearing liabilities |
|
1,604,684 |
|
|
$ |
9,540 |
|
2.38 |
|
|
1,503,635 |
|
|
$ |
3,053 |
|
0.81 |
|
Non-interest
bearing deposits |
|
315,573 |
|
|
|
|
|
|
|
382,519 |
|
|
|
|
|
|
Other
noninterest bearing liabilities |
|
34,813 |
|
|
|
|
|
|
|
27,055 |
|
|
|
|
|
|
Total liabilities |
|
1,955,070 |
|
|
|
|
|
|
|
1,913,209 |
|
|
|
|
|
|
Total stockholders' equity |
|
122,665 |
|
|
|
|
|
|
|
122,150 |
|
|
|
|
|
|
Total liabilities and stockholders'
equity |
$ |
2,077,735 |
|
|
|
|
|
|
|
$ |
2,035,359 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on
average assets |
|
0.29 |
% |
|
|
|
|
|
|
0.78 |
% |
|
|
|
|
|
Return on
average equity |
|
4.92 |
% |
|
|
|
|
|
|
12.96 |
% |
|
|
|
|
|
Net
interest margin (average earning assets) |
|
2.65 |
% |
|
|
|
|
|
|
|
3.56 |
% |
|
|
|
|
|
|
Net
interest margin (average earning assets) - tax equivalent |
|
2.80 |
% |
|
|
|
|
|
|
3.73 |
% |
|
|
|
|
|
Net
interest spread |
|
2.26 |
% |
|
|
|
|
|
|
3.40 |
% |
|
|
|
|
|
Net
interest margin** |
|
2.65 |
% |
|
|
|
|
|
|
3.56 |
% |
|
|
|
|
|
Ratio of
interest-earning assets to interest-bearing liabilities |
1.20x |
|
|
|
|
|
1.00x |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year-to-Date |
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands) |
Average Balances, Interest, and Rates |
|
(unaudited) |
December 31, 2023 |
|
December 31, 2022 |
|
|
Average Balance |
|
Interest |
|
Rate (%) |
|
Average Balance |
|
Interest |
|
Rate (%) |
|
ASSETS |
|
|
` |
|
|
|
|
|
|
|
|
|
Interest
bearing deposits in other financial institutions |
$ |
37,615 |
|
|
$ |
1,846 |
|
4.91 |
|
$ |
21,685 |
|
|
$ |
287 |
|
1.32 |
|
Federal
funds sold |
|
1,341 |
|
|
|
58 |
|
4.33 |
|
|
3,025 |
|
|
|
11 |
|
0.36 |
|
Certificates
of deposit in other financial institutions |
|
- |
|
|
|
- |
|
- |
|
|
1,868 |
|
|
|
28 |
|
1.50 |
|
Securities
available-for-sale |
|
362,942 |
|
|
|
8,828 |
|
2.43 |
|
|
427,291 |
|
|
|
9,492 |
|
2.22 |
|
Loans
receivable |
|
1,519,010 |
|
|
|
74,762 |
|
4.92 |
|
|
1,431,017 |
|
|
|
62,133 |
|
4.34 |
|
Federal Home
Loan Bank stock |
|
6,547 |
|
|
|
290 |
|
4.43 |
|
|
3,675 |
|
|
|
84 |
|
2.29 |
|
Total
interest earning assets |
|
1,927,455 |
|
|
$ |
85,784 |
|
4.45 |
|
|
1,888,561 |
|
|
$ |
72,035 |
|
3.81 |
|
Cash and
non-interest bearing deposits in other financial institutions |
|
18,678 |
|
|
|
|
|
|
|
16,820 |
|
|
|
|
|
|
Allowance
for credit losses |
|
(18,106 |
) |
|
|
|
|
|
|
(13,385 |
) |
|
|
|
|
|
Other
noninterest bearing assets |
|
155,333 |
|
|
|
|
|
|
|
146,259 |
|
|
|
|
|
|
Total assets |
$ |
2,083,360 |
|
|
|
|
|
|
$ |
2,038,255 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES
AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits |
$ |
1,460,392 |
|
|
$ |
25,438 |
|
1.74 |
|
$ |
1,450,664 |
|
|
$ |
3,604 |
|
0.25 |
|
Repurchase
agreements |
|
35,543 |
|
|
|
1,294 |
|
3.64 |
|
|
20,649 |
|
|
|
195 |
|
0.94 |
|
Borrowed
funds |
|
98,848 |
|
|
|
4,496 |
|
4.55 |
|
|
26,806 |
|
|
|
1,087 |
|
4.06 |
|
Total
interest bearing liabilities |
|
1,594,783 |
|
|
$ |
31,228 |
|
1.96 |
|
|
1,498,119 |
|
|
$ |
4,886 |
|
0.33 |
|
Non-interest
bearing deposits |
|
323,693 |
|
|
|
|
|
|
|
372,934 |
|
|
|
|
|
|
Other
noninterest bearing liabilities |
|
31,347 |
|
|
|
|
|
|
|
23,132 |
|
|
|
|
|
|
Total liabilities |
|
1,949,823 |
|
|
|
|
|
|
|
1,894,185 |
|
|
|
|
|
|
Total stockholders' equity |
|
133,537 |
|
|
|
|
|
|
|
144,070 |
|
|
|
|
|
|
Total liabilities and stockholders'
equity |
$ |
2,083,360 |
|
|
|
|
|
|
$ |
2,038,255 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on
average assets |
|
0.40 |
% |
|
|
|
|
|
|
0.74 |
% |
|
|
|
|
|
Return on
average equity |
|
6.28 |
% |
|
|
|
|
|
|
10.47 |
% |
|
|
|
|
|
Net
interest margin (average earning assets) |
|
2.83 |
% |
|
|
|
|
|
|
|
3.56 |
% |
|
|
|
|
|
|
Net
interest margin (average earning assets) - tax equivalent |
|
2.98 |
% |
|
|
|
|
|
|
3.74 |
% |
|
|
|
|
|
Net
interest spread |
|
2.49 |
% |
|
|
|
|
|
|
3.49 |
% |
|
|
|
|
|
Net
interest margin** |
|
2.83 |
% |
|
|
|
|
|
|
3.56 |
% |
|
|
|
|
|
Ratio of
interest-earning assets to interest-bearing liabilities |
1.21x |
|
|
|
|
|
1.01x |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Finward Bancorp |
Quarterly Financial Report |
|
|
|
|
|
|
|
|
|
|
Balance Sheet Data |
|
|
|
|
|
|
|
|
|
(Dollars in
thousands) |
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
|
|
December 30, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2022 |
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and
non-interest bearing deposits in other financial institutions |
$ |
17,942 |
|
|
$ |
17,922 |
|
|
$ |
23,210 |
|
|
$ |
33,785 |
|
|
$ |
19,965 |
|
Interest
bearing deposits in other financial institutions |
|
67,647 |
|
|
|
52,875 |
|
|
|
89,706 |
|
|
|
20,342 |
|
|
|
11,210 |
|
|
|
|
|
|
|
|
|
|
|
Total cash and cash equivalents |
|
86,008 |
|
|
|
71,648 |
|
|
|
115,673 |
|
|
|
54,781 |
|
|
|
31,282 |
|
|
|
|
|
|
|
|
|
|
|
Certificates
of deposit in other financial institutions |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
2,452 |
|
|
|
2,456 |
|
|
|
|
|
|
|
|
|
|
|
Securities
available-for-sale |
|
371,374 |
|
|
|
339,280 |
|
|
|
368,136 |
|
|
|
377,901 |
|
|
|
370,896 |
|
Loans
held-for-sale |
|
340 |
|
|
|
2,057 |
|
|
|
1,832 |
|
|
|
1,672 |
|
|
|
1,543 |
|
Loans
receivable, net of deferred fees and costs |
|
1,512,595 |
|
|
|
1,525,660 |
|
|
|
1,534,161 |
|
|
|
1,521,089 |
|
|
|
1,513,631 |
|
Less:
allowance for credit losses (1) |
|
(18,768 |
) |
|
|
(19,430 |
) |
|
|
(19,507 |
) |
|
|
(19,568 |
) |
|
|
(12,897 |
) |
Net loans receivable |
|
1,493,827 |
|
|
|
1,506,230 |
|
|
|
1,514,654 |
|
|
|
1,501,521 |
|
|
|
1,500,734 |
|
Federal Home
Loan Bank stock |
|
6,547 |
|
|
|
6,547 |
|
|
|
6,547 |
|
|
|
6,547 |
|
|
|
6,547 |
|
Accrued
interest receivable |
|
8,045 |
|
|
|
7,864 |
|
|
|
7,714 |
|
|
|
7,717 |
|
|
|
7,421 |
|
Premises and
equipment |
|
38,436 |
|
|
|
38,810 |
|
|
|
39,204 |
|
|
|
39,732 |
|
|
|
40,212 |
|
Foreclosed
real estate |
|
71 |
|
|
|
71 |
|
|
|
71 |
|
|
|
64 |
|
|
|
- |
|
Cash value
of bank owned life insurance |
|
32,702 |
|
|
|
32,509 |
|
|
|
32,316 |
|
|
|
32,115 |
|
|
|
31,936 |
|
Goodwill |
|
22,395 |
|
|
|
22,395 |
|
|
|
22,395 |
|
|
|
22,395 |
|
|
|
22,395 |
|
Other
intangible assets |
|
3,272 |
|
|
|
3,636 |
|
|
|
4,015 |
|
|
|
4,402 |
|
|
|
4,794 |
|
Other
assets |
|
45,262 |
|
|
|
56,423 |
|
|
|
48,661 |
|
|
|
47,293 |
|
|
|
50,123 |
|
|
|
|
|
|
|
|
|
|
|
Total assets |
$ |
2,108,279 |
|
|
$ |
2,087,470 |
|
|
$ |
2,161,218 |
|
|
$ |
2,098,592 |
|
|
$ |
2,070,339 |
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES
AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
Non-interest bearing |
$ |
295,594 |
|
|
$ |
312,635 |
|
|
$ |
315,671 |
|
|
$ |
330,057 |
|
|
$ |
359,092 |
|
Interest bearing |
|
1,517,827 |
|
|
|
1,471,402 |
|
|
|
1,479,476 |
|
|
|
1,476,053 |
|
|
|
1,415,925 |
|
Total |
|
1,813,421 |
|
|
|
1,784,037 |
|
|
|
1,795,147 |
|
|
|
1,806,110 |
|
|
|
1,775,017 |
|
Repurchase
agreements |
|
38,124 |
|
|
|
48,310 |
|
|
|
46,402 |
|
|
|
28,423 |
|
|
|
15,503 |
|
Borrowed
funds |
|
80,000 |
|
|
|
100,000 |
|
|
|
150,000 |
|
|
|
100,000 |
|
|
|
120,000 |
|
Accrued
expenses and other liabilities |
|
29,389 |
|
|
|
36,080 |
|
|
|
32,919 |
|
|
|
24,323 |
|
|
|
23,426 |
|
|
|
|
|
|
|
|
|
|
|
Total liabilities |
|
1,960,934 |
|
|
|
1,968,427 |
|
|
|
2,024,468 |
|
|
|
1,958,856 |
|
|
|
1,933,946 |
|
|
|
|
|
|
|
|
|
|
|
Commitments
and contingencies |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred
stock, no par or stated value; |
|
|
|
|
|
|
|
|
|
10,000,000 shares authorized, none outstanding |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Common
stock, no par or stated value |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Additional
paid-in capital |
|
69,555 |
|
|
|
69,482 |
|
|
|
69,384 |
|
|
|
69,182 |
|
|
|
69,032 |
|
Accumulated
other comprehensive loss |
|
(51,613 |
) |
|
|
(78,848 |
) |
|
|
(60,185 |
) |
|
|
(55,895 |
) |
|
|
(64,300 |
) |
Retained
earnings |
|
129,403 |
|
|
|
128,409 |
|
|
|
127,551 |
|
|
|
126,449 |
|
|
|
131,661 |
|
|
|
|
|
|
|
|
|
|
|
Total stockholders' equity |
|
147,345 |
|
|
|
119,043 |
|
|
|
136,750 |
|
|
|
139,736 |
|
|
|
136,393 |
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and stockholders'
equity |
$ |
2,108,279 |
|
|
$ |
2,087,470 |
|
|
$ |
2,161,218 |
|
|
$ |
2,098,592 |
|
|
$ |
2,070,339 |
|
Finward Bancorp |
Quarterly Financial Report |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Statements of Income |
Three Months Ended, |
|
|
Twelve months ended, |
(Dollars in
thousands) |
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
|
(Unaudited) |
|
(Unaudited) |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
|
December 31, |
|
December 31, |
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
2023 |
|
2022 |
|
|
|
2023 |
|
|
2022 |
Interest
income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans |
$ |
19,281 |
|
|
$ |
19,161 |
|
|
$ |
18,694 |
|
|
$ |
17,626 |
|
$ |
17,504 |
|
|
$ |
74,762 |
|
|
$ |
62,133 |
Securities & short-term investments |
|
2,975 |
|
|
|
2,617 |
|
|
|
2,919 |
|
|
|
2,510 |
|
|
2,358 |
|
|
|
11,021 |
|
|
|
9,902 |
Total interest income |
|
22,256 |
|
|
|
21,778 |
|
|
|
21,613 |
|
|
|
20,136 |
|
|
19,862 |
|
|
|
85,783 |
|
|
|
72,035 |
Interest
expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
8,180 |
|
|
|
7,066 |
|
|
|
6,105 |
|
|
|
4,087 |
|
|
2,007 |
|
|
|
25,438 |
|
|
|
3,604 |
Borrowings |
|
1,361 |
|
|
|
1,579 |
|
|
|
1,469 |
|
|
|
1,381 |
|
|
1,046 |
|
|
|
5,790 |
|
|
|
1,282 |
Total interest expense |
|
9,541 |
|
|
|
8,645 |
|
|
|
7,574 |
|
|
|
5,468 |
|
|
3,053 |
|
|
|
31,228 |
|
|
|
4,886 |
Net interest
income |
|
12,715 |
|
|
|
13,133 |
|
|
|
14,039 |
|
|
|
14,668 |
|
|
16,809 |
|
|
|
54,555 |
|
|
|
67,149 |
Provision
for credit losses |
|
779 |
|
|
|
244 |
|
|
|
514 |
|
|
|
488 |
|
|
- |
|
|
|
2,025 |
|
|
|
- |
Net interest
income after provision for credit losses |
|
11,936 |
|
|
|
12,889 |
|
|
|
13,525 |
|
|
|
14,180 |
|
|
16,809 |
|
|
|
52,530 |
|
|
|
67,149 |
Noninterest
income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fees and service charges |
|
1,507 |
|
|
|
1,374 |
|
|
|
1,832 |
|
|
|
1,311 |
|
|
1,823 |
|
|
|
6,024 |
|
|
|
6,257 |
Wealth management operations |
|
672 |
|
|
|
572 |
|
|
|
626 |
|
|
|
614 |
|
|
523 |
|
|
|
2,484 |
|
|
|
2,113 |
Gain on sale of loans held-for-sale, net |
|
352 |
|
|
|
192 |
|
|
|
274 |
|
|
|
263 |
|
|
126 |
|
|
|
1,081 |
|
|
|
1,368 |
Increase in cash value of bank owned life
insurance |
|
193 |
|
|
|
193 |
|
|
|
201 |
|
|
|
179 |
|
|
182 |
|
|
|
766 |
|
|
|
810 |
(Loss) gain on sale of foreclosed real estate, net |
|
- |
|
|
|
2 |
|
|
|
(15 |
) |
|
|
- |
|
|
16 |
|
|
|
(13 |
) |
|
|
16 |
(Loss) gain on sale of securities, net |
|
- |
|
|
|
- |
|
|
|
(48 |
) |
|
|
- |
|
|
- |
|
|
|
(48 |
) |
|
|
662 |
Other |
|
11 |
|
|
|
64 |
|
|
|
136 |
|
|
|
241 |
|
|
169 |
|
|
|
452 |
|
|
|
283 |
Total noninterest income |
|
2,735 |
|
|
|
2,397 |
|
|
|
3,006 |
|
|
|
2,608 |
|
|
2,839 |
|
|
|
10,746 |
|
|
|
11,509 |
Noninterest
expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and benefits |
|
6,290 |
|
|
|
6,729 |
|
|
|
7,098 |
|
|
|
7,538 |
|
|
6,587 |
|
|
|
27,655 |
|
|
|
28,990 |
Occupancy and equipment |
|
1,520 |
|
|
|
1,711 |
|
|
|
1,636 |
|
|
|
1,690 |
|
|
1,752 |
|
|
|
6,557 |
|
|
|
6,785 |
Data processing |
|
1,269 |
|
|
|
1,085 |
|
|
|
1,407 |
|
|
|
973 |
|
|
1,238 |
|
|
|
4,734 |
|
|
|
6,750 |
Federal deposit insurance premiums |
|
492 |
|
|
|
474 |
|
|
|
572 |
|
|
|
465 |
|
|
279 |
|
|
|
2,003 |
|
|
|
1,228 |
Marketing |
|
191 |
|
|
|
235 |
|
|
|
159 |
|
|
|
255 |
|
|
284 |
|
|
|
840 |
|
|
|
1,907 |
Impairment charge on assets held for sale |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
1,232 |
|
|
|
- |
|
|
|
1,232 |
Net loss recognized on sale of premises and
equipment |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
49 |
|
|
|
- |
|
|
|
303 |
Other |
|
3,755 |
|
|
|
3,259 |
|
|
|
3,123 |
|
|
|
3,306 |
|
|
4,224 |
|
|
|
13,442 |
|
|
|
14,905 |
Total noninterest expense |
|
13,517 |
|
|
|
13,493 |
|
|
|
13,995 |
|
|
|
14,227 |
|
|
15,645 |
|
|
|
55,231 |
|
|
|
62,100 |
Income
before income taxes |
|
1,154 |
|
|
|
1,793 |
|
|
|
2,536 |
|
|
|
2,561 |
|
|
4,003 |
|
|
|
8,045 |
|
|
|
16,558 |
Income tax
expenses (benefit) |
|
(356 |
) |
|
|
(398 |
) |
|
|
98 |
|
|
|
321 |
|
|
45 |
|
|
|
(335 |
) |
|
|
1,478 |
Net
income |
$ |
1,510 |
|
|
$ |
2,191 |
|
|
$ |
2,438 |
|
|
$ |
2,240 |
|
$ |
3,958 |
|
|
$ |
8,380 |
|
|
$ |
15,080 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
common share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
0.36 |
|
|
|
0.52 |
|
|
|
0.57 |
|
|
|
0.52 |
|
|
0.93 |
|
|
|
1.96 |
|
|
|
3.61 |
Diluted |
|
0.35 |
|
|
|
0.51 |
|
|
|
0.57 |
|
|
|
0.51 |
|
|
0.93 |
|
|
|
1.96 |
|
|
|
3.60 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Finward Bancorp |
|
Quarterly Financial Report |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Quality |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
|
|
(Dollars in thousands) |
|
December 31, |
September 30, |
June 30, |
|
March 31, |
|
December 31, |
|
|
|
|
|
|
|
2023 |
|
|
|
2023 |
|
|
2023 |
|
2023 |
|
2022 |
|
Nonaccruing loans |
|
$ |
9,608 |
|
|
$ |
9,840 |
|
|
$ |
12,071 |
|
$ |
19,473 |
|
$ |
18,128 |
|
Accruing loans delinquent more than 90 days |
|
|
1,843 |
|
|
|
233 |
|
|
|
255 |
|
|
878 |
|
|
248 |
|
Securities in non-accrual |
|
|
1,357 |
|
|
|
1,155 |
|
|
|
1,075 |
|
|
1,017 |
|
|
1,048 |
|
Foreclosed real estate |
|
|
71 |
|
|
|
71 |
|
|
|
61 |
|
|
60 |
|
|
- |
|
|
Total nonperforming assets |
|
$ |
12,879 |
|
|
$ |
11,299 |
|
|
$ |
13,462 |
|
$ |
21,428 |
|
$ |
19,424 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit losses (ACL): |
|
|
|
|
|
|
|
|
|
|
|
|
ACL specific allowances for collateral dependent loans |
|
$ |
906 |
|
|
$ |
554 |
|
|
$ |
717 |
|
$ |
1,075 |
|
$ |
338 |
|
|
ACL general allowances for loan portfolio |
|
|
17,862 |
|
|
|
18,876 |
|
|
|
18,790 |
|
|
18,493 |
|
|
12,559 |
|
|
|
Total ACL |
|
$ |
18,768 |
|
|
$ |
19,430 |
|
|
$ |
19,507 |
|
$ |
19,568 |
|
$ |
12,897 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, |
Required |
|
|
|
|
|
|
|
|
|
|
|
|
|
2023 |
|
|
To Be Well |
|
|
|
|
|
|
|
|
|
|
|
|
Actual Ratio |
|
Capitalized |
|
|
|
|
|
|
|
Capital Adequacy Bank |
|
|
|
|
|
|
|
|
|
|
|
Common equity tier 1 capital to risk-weighted assets |
|
|
10.4 |
% |
|
|
6.5 |
% |
|
|
|
|
|
|
|
Tier 1 capital to risk-weighted assets |
|
|
10.4 |
% |
|
|
8.0 |
% |
|
|
|
|
|
|
|
Total capital to risk-weighted assets |
|
|
11.4 |
% |
|
|
10.0 |
% |
|
|
|
|
|
|
|
Tier 1 capital to adjusted average assets |
|
|
7.8 |
% |
|
|
5.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 1 - Reconciliation of the Non-GAAP Performance Measures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands) |
Three Months Ended, |
|
Twelve months ended, |
|
(unaudited) |
December 31, 2023 |
|
September 30, 2023 |
|
June 30, 2023 |
|
March 31, 2023 |
|
December 31, 2022 |
|
December 31, 2023 |
|
December 31, 2022 |
|
Calculation of tangible common equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
stockholder's equity |
$ |
147,345 |
|
|
$ |
119,043 |
|
|
$ |
136,750 |
|
|
$ |
139,736 |
|
|
$ |
136,393 |
|
|
$ |
147,345 |
|
|
$ |
136,393 |
|
|
Goodwill |
|
(22,395 |
) |
|
|
(22,395 |
) |
|
|
(22,395 |
) |
|
|
(22,395 |
) |
|
|
(22,395 |
) |
|
|
(22,395 |
) |
|
|
(22,395 |
) |
|
Other
intangibles |
|
(3,272 |
) |
|
|
(3,636 |
) |
|
|
(4,015 |
) |
|
|
(4,402 |
) |
|
|
(4,794 |
) |
|
|
(3,272 |
) |
|
|
(4,794 |
) |
(A) |
Tangible
common equity |
$ |
121,678 |
|
|
$ |
93,012 |
|
|
$ |
110,340 |
|
|
$ |
112,939 |
|
|
$ |
109,204 |
|
|
$ |
121,678 |
|
|
$ |
109,204 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Calculation of tangible common equity adjusted for
accumulated other comprehensive loss |
|
|
|
|
|
|
|
|
|
|
|
|
(A) |
Tangible
common equity |
$ |
121,678 |
|
|
$ |
93,012 |
|
|
$ |
110,340 |
|
|
$ |
112,939 |
|
|
$ |
109,204 |
|
|
$ |
121,678 |
|
|
$ |
109,204 |
|
|
Accumulated
other comprehensive loss |
|
51,613 |
|
|
|
78,848 |
|
|
|
60,185 |
|
|
|
55,895 |
|
|
|
64,300 |
|
|
|
51,613 |
|
|
|
64,300 |
|
(B) |
Tangible common equity adjusted for accumulated other comprehensive
loss |
$ |
173,291 |
|
$ |
- |
$ |
171,860 |
|
|
$ |
170,525 |
|
$ |
- |
$ |
168,834 |
|
|
$ |
173,504 |
|
|
$ |
173,291 |
|
|
$ |
173,504 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Calculation of tangible book value per share |
|
|
|
|
|
|
|
|
|
|
|
|
|
(A) |
Tangible
common equity |
$ |
121,678 |
|
|
$ |
93,012 |
|
|
$ |
110,340 |
|
|
$ |
112,939 |
|
|
$ |
109,204 |
|
|
$ |
121,678 |
|
|
$ |
109,204 |
|
|
Shares
outstanding |
|
4,298,773 |
|
|
|
4,300,881 |
|
|
|
4,303,766 |
|
|
|
4,304,026 |
|
|
|
4,298,401 |
|
|
|
4,298,773 |
|
|
|
4,298,401 |
|
|
Tangible
book value per diluted share |
$ |
28.31 |
|
|
$ |
21.63 |
|
|
$ |
25.64 |
|
|
$ |
26.24 |
|
|
$ |
25.41 |
|
|
$ |
28.31 |
|
|
$ |
25.41 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Calculation of tangible book value per diluted share
adjusted for accumulated other comprehensive loss |
|
|
|
|
|
|
|
|
|
|
|
|
(B) |
Tangible
common equity adjusted for accumulated other comprehensive
loss |
$ |
173,291 |
|
|
$ |
171,860 |
|
|
$ |
170,525 |
|
|
$ |
168,834 |
|
|
$ |
173,504 |
|
|
$ |
173,291 |
|
|
$ |
173,504 |
|
|
Diluted
average common shares outstanding |
|
4,298,773 |
|
|
|
4,300,881 |
|
|
|
4,303,766 |
|
|
|
4,304,026 |
|
|
|
4,298,401 |
|
|
|
4,298,773 |
|
|
|
4,298,401 |
|
|
Tangible
book value per diluted share adjusted for accumulated other
comprehensive loss |
$ |
40.31 |
|
|
$ |
39.96 |
|
|
$ |
39.62 |
|
|
$ |
39.23 |
|
|
$ |
40.36 |
|
|
$ |
40.31 |
|
|
$ |
40.36 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Calculation of tangible common equity to total
assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
(A) |
Tangible
common equity |
$ |
121,678 |
|
|
$ |
93,012 |
|
|
$ |
110,340 |
|
|
$ |
112,939 |
|
|
$ |
109,204 |
|
|
$ |
121,678 |
|
|
$ |
109,204 |
|
|
Total
assets |
|
2,108,279 |
|
|
|
2,087,470 |
|
|
|
2,161,218 |
|
|
|
2,098,592 |
|
|
|
2,070,339 |
|
|
|
2,108,279 |
|
|
|
2,070,339 |
|
|
Tangible
common equity to total assets |
|
5.77 |
% |
|
|
4.46 |
% |
|
|
5.11 |
% |
|
|
5.38 |
% |
|
|
5.27 |
% |
|
|
5.77 |
% |
|
|
5.27 |
% |
|
Calculation of tangible common equity to total
assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
(B) |
Tangible
common equity adjusted for accumulated other comprehensive
loss |
$ |
173,291 |
|
|
$ |
171,860 |
|
|
$ |
170,525 |
|
|
$ |
168,834 |
|
|
$ |
173,504 |
|
|
$ |
173,291 |
|
|
$ |
173,504 |
|
|
Total
assets |
|
2,108,279 |
|
|
|
2,087,470 |
|
|
|
2,161,218 |
|
|
|
2,098,592 |
|
|
|
2,070,339 |
|
|
|
2,108,279 |
|
|
|
2,070,339 |
|
|
Tangible
common equity to total assets adjusted for accumulated other
comprehensive loss |
|
8.22 |
% |
|
|
8.23 |
% |
|
|
7.89 |
% |
|
|
8.05 |
% |
|
|
8.38 |
% |
|
|
8.22 |
% |
|
|
8.38 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Calculation of tax adjusted net interest
margin |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income |
$ |
12,715 |
|
|
$ |
13,133 |
|
|
$ |
14,039 |
|
|
$ |
14,668 |
|
|
$ |
16,809 |
|
|
$ |
54,555 |
|
|
$ |
67,149 |
|
|
Tax adjusted
interest on securities and loans |
|
722 |
|
|
|
730 |
|
|
|
748 |
|
|
|
756 |
|
|
|
791 |
|
|
|
2,956 |
|
|
|
3,504 |
|
|
Adjusted net
interest income |
|
13,437 |
|
|
|
13,863 |
|
|
|
14,787 |
|
|
|
15,424 |
|
|
|
17,600 |
|
|
|
57,511 |
|
|
|
70,653 |
|
|
Total
average earning assets |
|
1,920,127 |
|
|
|
1,930,118 |
|
|
|
1,950,774 |
|
|
|
1,908,647 |
|
|
|
1,886,596 |
|
|
|
1,927,455 |
|
|
|
1,888,561 |
|
|
Tax adjusted
net interest margin |
|
2.80 |
% |
|
|
2.87 |
% |
|
|
3.03 |
% |
|
|
3.23 |
% |
|
|
3.73 |
% |
|
|
2.98 |
% |
|
|
3.74 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
non-interest expense |
$ |
13,517 |
|
|
$ |
13,493 |
|
|
$ |
13,995 |
|
|
$ |
14,227 |
|
|
$ |
15,645 |
|
|
$ |
55,231 |
|
|
$ |
62,100 |
|
|
Total
revenue |
|
15,450 |
|
|
|
15,530 |
|
|
|
17,045 |
|
|
|
17,276 |
|
|
|
19,648 |
|
|
|
65,301 |
|
|
|
78,658 |
|
|
Efficiency
ratio |
|
87.49 |
% |
|
|
86.88 |
% |
|
|
82.11 |
% |
|
|
82.35 |
% |
|
|
79.63 |
% |
|
|
84.58 |
% |
|
|
78.95 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FOR FURTHER INFORMATIONCONTACT
SHAREHOLDER SERVICES(219) 853-7575
Finward Bancorp (NASDAQ:FNWD)
過去 株価チャート
から 8 2024 まで 9 2024
Finward Bancorp (NASDAQ:FNWD)
過去 株価チャート
から 9 2023 まで 9 2024