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Finward Bancorp Announces First Quarter 2026 ResultsApril 28, 2026 4:05 PM
Business Wire
Finward Bancorp (Nasdaq: FNWD) (the “Bancorp”), the holding company for Peoples Bank (the “Bank”), today announced that net income available to common stockholders was $2.2 million, or $0.52 per diluted share, for the quarter ended March 31, 2026, as compared to $2.0 million, or $0.46 per diluted share, for the quarter ended December 31, 2025. Selected performance metrics are as follows for the periods presented:
Performance Ratios
Quarter ended
3/31/2026
12/31/2025
9/30/2025
6/30/2025
3/31/2025
Return on equity
5.00
%
4.66
%
8.96
%
5.66
%
1.17
%
Return on assets
0.44
%
0.39
%
0.68
%
0.42
%
0.09
%
Net interest margin, tax-equivalent (non-GAAP)
3.35
%
3.32
%
3.18
%
3.11
%
2.95
%
Non-interest income/average assets
0.48
%
0.29
%
0.57
%
0.53
%
0.43
%
Non-interest expense/average assets
2.93
%
2.90
%
2.74
%
2.90
%
2.81
%
Efficiency ratio
84.45
%
89.50
%
81.22
%
88.92
%
93.11
%
“Results for the quarter reflect continued progress in our efforts to improve profitability, and confirm expected improvement to our core earnings trajectory. Our focus on loan originations has built a solid loan pipeline, and along with the repricing of existing loans, is expected to drive net interest margin expansion and further earnings improvement in the coming quarters,” said Benjamin Bochnowski, Chief Executive Officer. “Actions taken over recent quarters are starting to translate into stronger operating performance, and this has allowed for a renewed focus on customer growth and service as the year progresses."
"As part of our efficiency efforts, we announced the planned closure of two branch locations expected to occur early in the second quarter. Credit quality remains healthy, reserves are appropriate, and the organization remains well positioned to continue on our path in the current operating environment.”
Highlights of the current period include:
Net Interest Margin - The net interest margin for the quarter ended March 31, 2026 was 3.23% compared to 3.18% for the quarter ended December 31, 2025. Net interest margin on a tax-equivalent basis (a non-GAAP measure) for the quarter ended March 31, 2026 was 3.35%, as compared to 3.32% for the quarter ended December 31, 2025. Net interest margin increased from the prior quarter primarily due to a favorable reduction in funding costs.
Funding - As of March 31, 2026, deposits totaled $1.72 billion, a decrease of $7.9 million, or 0.5% compared with December 31, 2025 balances, which totaled $1.73 billion. As of March 31, 2026, non-interest-bearing deposits totaled $278.7 million, an increase of $11.3 million. Core deposits totaled $1.2 billion at both March 31, 2026 and December 31, 2025. Core deposits include checking, savings, and money market accounts and represented 71.6% of the Bancorp’s total deposits at March 31, 2026. As of March 31, 2026, balances for certificates of deposit totaled $488.8 million, compared to $499.6 million on December 31, 2025, a decrease of $10.8 million or 2.2%. The decrease in total portfolio deposits is primarily related to cyclical flows and continued adjustments to deposit pricing. In addition, as of March 31, 2026, borrowings, federal funds purchased and repurchase agreements totaled $90.8 million, an increase of $6.1 million or 7.2%, compared to December 31, 2025. The increase in borrowings was primarily attributable to new FHLB advances during the quarter.
As of March 31, 2026, 72.0% of our deposits are fully FDIC insured, and another 7.5% are further backed by the Indiana Public Deposit Insurance Fund. The Bancorp’s liquidity position remains strong with solid core deposit customer relationships, excess cash, debt securities, contractual loan repayments, and access to diversified borrowing sources. As of March 31, 2026, the Bancorp had available liquidity of $555 million including borrowing capacity from the FHLB and Federal Reserve facilities.
Securities Portfolio - Securities available for sale balances decreased by $8.5 million to $307.7 million as of March 31, 2026, compared to $316.2 million as of December 31, 2025. The yield on the securities portfolio decreased to 2.22% for the three months ended March 31, 2026 from 2.29% for the three months ended December 31, 2025. The decrease in securities available for sale was primarily attributable to an increase in the negative fair value adjustment to securities, as well as maturity of certain securities. The Bank did not sell any securities during the quarter.
Lending - The Bank’s aggregate loan portfolio totaled $1.45 billion on both March 31, 2026 and December 31, 2025. During the three months ended March 31, 2026, the Bank originated $37.4 million in new commercial loans, compared to $45.8 million during the three months ended December 31, 2025, largely as expected given lending seasonality. At March 31, 2026, the Bancorp’s portfolio loan balances in commercial real estate owner occupied properties totaled $261.7 million or 18.0% of total loan balances and commercial real estate non-owner occupied properties totaled $302.9 million or 20.8% of total loan balances. Of the $302.9 million in commercial real estate non-owner occupied properties balances, loans collateralized by office buildings represented $41.6 million or 2.9% of total loan balances.
Asset Quality - At March 31, 2026, non-performing loans totaled $12.4 million, compared to $11.2 million at December 31, 2025, an increase of $1.2 million or 10.7%. The Bank’s ratio of non-performing loans to total loans was 0.85% at March 31, 2026, compared to 0.77% at December 31, 2025. The Bank’s ratio of non-performing assets to total assets was 0.71% at March 31, 2026 and 0.65% at December 31, 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 $17.3 million at March 31, 2026, or 1.19% of total loans receivable, compared to $17.5 million at December 31, 2025, or 1.21% of total loans receivable, a decrease of $221 thousand or 1.26%. The Bank's unused commitment reserve, included in other liabilities, totaled $2.0 million at March 31, 2026, compared to $1.8 million at December 31, 2025, an increase of $279 thousand or 16.0%.
For the quarter ended March 31, 2026, the Bank recorded a net provision for credit loss totaling $55 thousand based on the reduction of certain loan segment balances and other factors within the Bank's ACL modeling. The first quarter's provision consisted of a $224 thousand reversal for credit losses on loans, and a $279 thousand provision of credit losses on unused commitments. For the quarter ended March 31, 2026, net loan recoveries totaled $3 thousand, compared to net loan charge-offs of $301 thousand for the quarter ended December 31, 2025. The allowance for credit losses as a percentage of non-performing loans, or coverage ratio, was 139.7% at March 31, 2026, compared to 156.8% at December 31, 2025.
Operating Income and Expenses - Non-interest income as a percentage of average assets was 0.48% for the quarter ended March 31, 2026, as compared to 0.29% for the quarter ended December 31, 2025. The increase in non-interest income quarter over quarter was primarily attributable to the $1.6 million in realized losses on the sale of investment securities during December 2025. Total non-interest expense decreased slightly from the prior quarter, while non-interest expense as a percentage of average assets was 2.93% for the quarter ended March 31, 2026, as compared to 2.90% for the quarter ended December 31, 2025. The decrease in non-interest expense quarter over quarter was primarily attributable to lower data processing and technology expenses as well as lower occupancy and equipment costs. The Bank remains focused on identifying additional operating efficiencies and third-party expense reductions.
Capital Adequacy - The Bank’s tier 1 leverage ratio was 9.24% as of March 31, 2026 and 8.93% as of December 31, 2025. The Bank’s capital continues to exceed all applicable regulatory capital requirements as set forth in 12 C.F.R. § 324. The Bancorp’s tangible book value per share (non-GAAP) was $34.39 at March 31, 2026, down from $34.92 as of December 31, 2025. Tangible common equity to tangible assets (non-GAAP) was 7.48% at March 31, 2026, down from 7.56% as of December 31, 2025.
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 25 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 (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.
Performance Ratios
Quarter Ended
3/31/2026
12/31/2025
9/30/2025
6/30/2025
3/31/2025
Return on equity
5.00
%
4.66
%
8.96
%
5.66
%
1.17
%
Return on assets
0.44
%
0.39
%
0.68
%
0.42
%
0.09
%
Yield on loans
5.50
%
5.64
%
5.49
%
5.36
%
5.25
%
Yield on security investments
2.22
%
2.29
%
2.40
%
2.42
%
2.38
%
Total yield on earning assets
4.86
%
4.96
%
4.91
%
4.82
%
4.71
%
Cost of interest-bearing deposits
1.92
%
2.09
%
2.16
%
2.12
%
2.17
%
Cost of federal funds purchased and repurchase agreements
2.85
%
3.12
%
3.37
%
3.32
%
3.35
%
Cost of borrowed funds
3.70
%
3.70
%
3.64
%
3.91
%
4.12
%
Total cost of interest-bearing liabilities
2.00
%
2.16
%
2.25
%
2.22
%
2.28
%
Net interest margin
3.23
%
3.18
%
3.04
%
2.97
%
2.81
%
Net interest margin, tax-equivalent (non-GAAP) (1)
3.35
%
3.32
%
3.18
%
3.11
%
2.95
%
Non-interest income/average assets
0.48
%
0.29
%
0.57
%
0.53
%
0.43
%
Non-interest expense/average assets
2.93
%
2.90
%
2.74
%
2.90
%
2.81
%
Efficiency ratio (non-GAAP) (1)
84.45
%
89.50
%
81.22
%
88.92
%
93.11
%
Non-performing assets to total assets
0.71
%
0.65
%
0.76
%
0.74
%
0.69
%
Non-performing loans to total loans
0.85
%
0.77
%
0.94
%
0.91
%
0.84
%
Allowance for credit losses to non-performing loans
139.72
%
156.84
%
129.41
%
133.01
%
143.84
%
Allowance for credit losses to loans receivable
1.19
%
1.21
%
1.22
%
1.22
%
1.20
%
Net charge-offs (recoveries) as a percentage of average loans receivable
0.00
%
0.08
%
0.07
%
(0.11
%)
0.01
%
Basic earnings per share
$
0.52
$
0.46
$
0.82
$
0.50
$
0.11
Diluted earnings per share
$
0.52
$
0.46
$
0.81
$
0.50
$
0.11
Weighted average common shares outstanding—basic
4,276,530
4,273,421
4,273,022
4,271,952
4,266,976
Weighted average common shares outstanding—diluted
4,302,206
4,301,462
4,299,007
4,291,319
4,284,496
Stockholders' equity to total assets
8.56
%
8.64
%
8.06
%
7.48
%
7.44
%
Tangible common equity to tangible assets (non-GAAP) (1)
7.48
%
7.56
%
6.99
%
6.41
%
6.34
%
Book value per share
$
39.81
$
40.37
$
38.24
$
35.67
$
35.10
Tangible common book value per share (non-GAAP) (1)
$
34.39
$
34.92
$
32.77
$
30.16
$
29.55
Closing stock price
$
36.30
$
35.19
$
32.09
$
27.62
$
29.10
Dividends declared per common share
$
0.12
$
0.12
$
0.12
$
0.12
$
—
(1) See the reconciliation of these non-GAAP measures to the most directly comparable GAAP measures on pg 12.
Average Balances, Interest, Rates
Quarter Ended
March 31, 2026
December 31, 2025
September 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
$
96,250
$
949
3.94
%
$
100,035
$
903
3.61
%
$
90,880
$
991
4.36
%
Federal funds sold
1,523
11
2.89
%
1,113
10
3.59
%
1,285
12
3.74
%
Securities available-for-sale
318,670
1,771
2.22
%
327,747
1,877
2.29
%
327,030
1,965
2.40
%
Loans receivable
1,445,921
19,871
5.50
%
1,454,174
20,496
5.64
%
1,474,324
20,246
5.49
%
Federal Home Loan Bank stock
6,547
119
7.27
%
6,547
126
7.70
%
6,547
126
7.70
%
Total interest earning assets
1,868,911
$
22,721
4.86
%
1,889,616
$
23,412
4.96
%
1,900,066
$
23,340
4.91
%
Cash and non-interest bearing deposits in other financial institutions
21,331
23,385
24,882
Allowance for credit losses
(17,608
)
(18,049
)
(18,243
)
Other non-interest bearing assets
143,452
146,675
152,135
Total assets
$
2,016,086
$
2,041,627
$
2,058,840
LIABILITIES AND STOCKHOLDERS' EQUITY
Interest-bearing deposits
$
1,447,994
$
6,959
1.92
%
$
1,458,748
$
7,605
2.09
%
$
1,478,543
$
7,996
2.16
%
Federal funds purchased and repurchase agreements
38,113
272
2.85
%
40,968
317
3.10
%
46,498
392
3.37
%
Borrowed funds
45,334
419
3.70
%
48,089
448
3.73
%
55,904
509
3.64
%
Total interest bearing liabilities
1,531,441
$
7,650
2.00
%
1,547,805
$
8,370
2.16
%
1,580,945
$
8,897
2.25
%
Non-interest bearing deposits
270,626
288,073
285,347
Other non-interest bearing liabilities
34,588
35,588
36,397
Total liabilities
1,836,655
1,871,466
1,902,689
Total stockholders' equity
179,431
170,161
156,151
Total liabilities and stockholders' equity
$
2,016,086
$
2,041,627
$
2,058,840
Net interest income
$
15,071
$
15,042
$
14,443
Return on average assets
0.44
%
0.39
%
0.68
%
Return on average equity
5.00
%
4.66
%
8.96
%
Net interest margin
3.23
%
3.18
%
3.04
%
Net interest margin, tax-equivalent (non-GAAP)(1)
3.35
%
3.32
%
3.18
%
Net interest spread
2.86
%
2.80
%
2.66
%
Ratio of interest-earning assets to interest-bearing liabilities
1.22x
1.22x
1.20x
(1) See the reconciliation of non-GAAP measures to the most directly comparable GAAP measures on pg 12.
Consolidated Balance Sheets
As of
(Dollars in thousands)
3/31/2026
12/31/2025
9/30/2025
6/30/2025
3/31/2025
ASSETS
Cash and non-interest bearing deposits in other financial institutions
$
15,758
$
18,265
$
19,458
$
23,027
$
18,563
Interest bearing deposits in other financial institutions
102,997
101,382
84,157
79,976
52,829
Federal funds sold
-
-
563
411
975
Total cash and cash equivalents
118,755
119,647
104,178
103,414
72,367
Securities available-for-sale
307,686
316,227
335,150
327,845
330,127
Loans held-for-sale
-
1,096
2,641
834
2,849
Loans receivable, net of deferred fees and costs
1,455,118
1,450,387
1,473,774
1,484,278
1,491,696
Less: allowance for credit losses
(17,285
)
(17,506
)
(17,977
)
(18,184
)
(17,955
)
Net loans receivable
1,437,833
1,432,881
1,455,797
1,466,094
1,473,741
Federal Home Loan Bank stock
6,547
6,547
6,547
6,547
6,547
Accrued interest receivable
7,700
7,781
7,585
7,651
7,821
Premises and equipment
44,315
44,976
45,544
46,179
46,680
Cash value of bank owned life insurance
33,786
33,586
33,843
33,932
33,712
Goodwill
22,395
22,395
22,395
22,395
22,395
Other intangible assets
1,076
1,172
1,273
1,414
1,635
Other assets
35,063
34,873
37,771
41,606
41,840
Total assets
$
2,015,156
$
2,021,181
$
2,052,724
$
2,057,911
$
2,039,714
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Non-interest bearing
$
278,705
$
267,441
$
280,296
$
271,172
$
281,461
Interest bearing
1,440,366
1,459,530
1,470,350
1,483,678
1,468,923
Total
1,719,071
1,726,971
1,750,646
1,754,850
1,750,384
Federal funds purchased and repurchase agreements
40,815
39,703
48,426
48,331
45,053
Borrowed funds
50,000
45,000
55,000
65,000
56,657
Accrued expenses and other liabilities
32,870
34,844
33,157
35,477
35,813
Total liabilities
1,842,756
1,846,518
1,887,229
1,903,658
1,887,907
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
70,397
70,331
70,233
70,263
70,132
Accumulated other comprehensive loss
(45,713
)
(41,662
)
(49,266
)
(57,560
)
(58,244
)
Retained earnings
147,716
145,994
144,528
141,550
139,919
Total stockholders' equity
172,400
174,663
165,495
154,253
151,807
Total liabilities and stockholders' equity
$
2,015,156
$
2,021,181
$
2,052,724
$
2,057,911
$
2,039,714
(1) Shares of common stock issued and outstanding were 4,330,486 at 3/31/2026; 4,326,747 at 12/31/2025; 4,327,511 at 9/30/2025; 4,324,889 at 6/30/2025; and 4,324,485 at 3/31/2025.
Consolidated Statements of Income
Quarter Ended
(Dollars in thousands, except per share data)
3/31/2026
12/31/2025
9/30/2025
6/30/2025
3/31/2025
Interest income:
Loans
$
19,871
$
20,496
$
20,246
$
19,940
$
19,655
Securities & short-term investments
2,850
2,916
3,094
2,730
2,686
Total interest income
22,721
23,412
23,340
22,670
22,341
Interest expense:
Deposits
6,959
7,605
7,996
7,780
8,045
Borrowings
691
765
901
945
983
Total interest expense
7,650
8,370
8,897
8,725
9,028
Net interest income
15,071
15,042
14,443
13,945
13,313
Provision for (benefit from) credit losses
55
(84
)
(301
)
(274
)
454
Net interest income after provision for credit losses
15,016
15,126
14,744
14,219
12,859
Non-interest income:
Fees and service charges
1,295
1,485
1,463
1,330
1,109
Wealth management operations
661
659
759
696
619
Gain (loss) on tax credit investment
-
-
23
-
67
Gain (loss) on sale of loans held-for-sale, net
257
346
265
378
230
Gain (loss) on sale of securities, net
-
(1,577
)
-
-
-
Bank owned life insurance
201
522
439
220
198
Gain (loss) on sale of property and equipment
-
1
(56
)
-
-
Other
3
37
20
59
6
Total non-interest income
2,417
1,473
2,913
2,683
2,229
Non-interest expense:
Compensation and benefits
7,591
7,573
7,330
7,313
7,372
Occupancy and equipment
1,991
2,111
2,004
1,935
2,111
Data processing
1,105
1,465
1,116
1,341
1,039
Marketing
587
230
257
214
86
Federal deposit insurance premiums
381
417
399
471
433
Professional and outside services
1,169
906
945
1,115
1,260
Technology
508
521
549
545
454
Other
1,436
1,558
1,497
1,852
1,717
Total non-interest expense
14,768
14,781
14,097
14,786
14,472
Income before income taxes
2,665
1,818
3,560
2,116
616
Income tax expenses (benefit)
423
(166
)
63
(35
)
161
Net income
$
2,242
$
1,984
$
3,497
$
2,151
$
455
Earnings per common share:
Basic
$
0.52
$
0.46
$
0.82
$
0.50
$
0.11
Diluted
$
0.52
$
0.46
$
0.81
$
0.50
$
0.11
Loans
As of
(Dollars in thousands)
3/31/2026
12/31/2025
9/30/2025
6/30/2025
3/31/2025
3/31/2026 vs
12/31/2025
3/31/2026 vs
3/31/2025
Residential real estate
$
445,097
$
442,443
$
450,007
$
457,248
$
458,424
$
2,654
0.6
%
$
(13,327
)
(2.9
)%
Home equity
53,855
53,497
51,813
51,112
49,752
358
0.7
%
4,103
8.2
%
Commercial real estate
564,613
555,594
564,558
551,091
554,866
9,019
1.6
%
9,747
1.8
%
Construction and land development
76,582
77,208
79,678
74,795
86,728
(626
)
(0.8
)%
(10,146
)
(11.7
)%
Multifamily
185,824
183,902
192,698
200,440
204,964
1,922
1.0
%
(19,140
)
(9.3
)%
Commercial business
94,160
99,304
96,192
105,636
99,519
(5,144
)
(5.2
)%
(5,359
)
(5.4
)%
Consumer
310
870
348
2,347
504
(560
)
(64.4
)%
(194
)
(38.5
)%
Manufactured homes
22,981
23,708
24,372
25,146
25,762
(727
)
(3.1
)%
(2,781
)
(10.8
)%
Government
9,998
12,298
12,298
14,628
9,279
(2,300
)
(18.7
)%
719
7.7
%
Loans receivable
1,453,420
1,448,824
1,471,964
1,482,443
1,489,798
4,596
0.3
%
(36,378
)
(2.4
)%
Net deferred loan origination costs
1,723
1,606
1,719
2,012
2,209
117
7.3
%
(486
)
(22.0
)%
Loan clearing funds
(25
)
(43
)
91
(177
)
(311
)
18
(41.9
)%
286
(92.0
)%
Loans receivable, net
$
1,455,118
$
1,450,387
$
1,473,774
$
1,484,278
$
1,491,696
$
4,731
0.3
%
$
(36,578
)
(2.5
)%
Deposits
As of
(Dollars in thousands)
3/31/2026
12/31/2025
9/30/2025
6/30/2025
3/31/2025
3/31/2026 vs
12/31/2025
3/31/2026 vs
3/31/2025
Checking
$
587,575
$
592,214
$
579,760
$
593,471
$
589,403
$
(4,639
)
(0.8
)%
$
(1,828
)
(0.3
)%
Savings
253,408
254,055
257,058
266,070
274,028
(647
)
(0.3
)%
(20,620
)
(7.5
)%
Money market
389,274
381,111
377,155
352,616
342,106
8,163
2.1
%
47,168
13.8
%
Certificates of deposit
488,814
499,591
536,673
542,693
544,847
(10,777
)
(2.2
)%
(56,033
)
(10.3
)%
Total deposits
$
1,719,071
$
1,726,971
$
1,750,646
$
1,754,850
$
1,750,384
$
(7,900
)
(0.5
)%
$
(31,313
)
(1.8
)%
Asset Quality
As of and for the Quarter Ended
(Dollars in thousands)
3/31/2026
12/31/2025
9/30/2025
6/30/2025
3/31/2025
Non-accruing loans
$
12,371
$
11,162
$
13,892
$
13,526
$
12,483
Accruing loans delinquent more than 90 days
-
-
-
145
-
Securities in non-accrual
1,891
1,882
1,616
1,616
1,630
Total nonperforming assets
$
14,262
$
13,044
$
15,508
$
15,287
$
14,113
Allowance for Credit Losses
As of and for the Quarter Ended
(Dollars in thousands)
3/31/2026
12/31/2025
9/30/2025
6/30/2025
3/31/2025
Beginning allowance for credit losses
$
17,506
$
17,977
$
18,184
$
17,955
$
16,911
Provision for (benefit from) loan losses
(224
)
(170
)
61
(185
)
1,077
Net (charge-offs) recoveries
3
(301
)
(268
)
414
(33
)
Ending allowance for credit losses
$
17,285
$
17,506
$
17,977
$
18,184
$
17,955
Bank-Level Regulatory Capital Requirements
March 31, 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
$
188,161
11.78
%
$
71,907
4.50
%
$
103,865
6.50
%
Tier 1 capital to risk-weighted assets
$
188,161
11.78
%
$
95,875
6.00
%
$
127,834
8.00
%
Total capital to risk-weighted assets
$
207,477
13.00
%
$
127,834
8.00
%
$
159,792
10.00
%
Tier 1 leverage ratio
$
188,161
9.24
%
$
81,448
4.00
%
$
101,810
5.00
%
(1) Current quarter ratios are estimated.
Reconciliation of Non-GAAP Performance Measures
Quarter Ended
(Dollars in thousands, except per share amounts)
3/31/2026
12/31/2025
9/30/2025
6/30/2025
3/31/2025
Tangible Common Ratios
Stockholder's equity (GAAP)
$
172,400
$
174,663
$
165,495
$
154,253
$
151,807
Less: Goodwill (GAAP)
(22,395
)
(22,395
)
(22,395
)
(22,395
)
(22,395
)
Less: Other intangibles (GAAP)
(1,076
)
(1,172
)
(1,273
)
(1,414
)
(1,635
)
Tangible common equity (non-GAAP)
$
148,929
$
151,096
$
141,827
$
130,444
$
127,777
Total assets (GAAP)
$
2,015,156
$
2,021,181
$
2,052,724
$
2,057,911
$
2,039,714
Less: Goodwill (GAAP)
(22,395
)
(22,395
)
(22,395
)
(22,395
)
(22,395
)
Less: Other intangibles (GAAP)
(1,076
)
(1,172
)
(1,273
)
(1,414
)
(1,635
)
Tangible assets (non-GAAP)
$
1,991,685
$
1,997,614
$
2,029,056
$
2,034,102
$
2,015,684
Shares outstanding - end of quarter
4,330,486
4,326,747
4,327,511
4,324,889
4,324,485
Common book value per share (GAAP)
$
39.81
$
40.37
$
38.24
$
35.67
$
35.10
Tangible common book value per share (non-GAAP)
$
34.39
$
34.92
$
32.77
$
30.16
$
29.55
Total equity to total assets (GAAP)
8.56
%
8.64
%
8.06
%
7.50
%
7.44
%
Tangible common equity to tangible assets (non-GAAP)
7.48
%
7.56
%
6.99
%
6.41
%
6.34
%
Calculation of net interest margin, taxable-equivalent basis
Net interest income (GAAP)
$
15,071
$
15,042
$
14,443
$
13,945
$
13,313
Tax-equivalent adjustment on securities and loans (1)
582
629
663
674
670
Net interest income (tax-equivalent basis)
$
15,653
$
15,671
$
15,106
$
14,619
$
13,983
Total average earning assets
$
1,868,911
$
1,889,616
$
1,900,066
$
1,879,892
$
1,895,847
Net interest margin
3.23
%
3.18
%
3.04
%
2.97
%
2.81
%
Net interest margin (tax-equivalent basis)
3.35
%
3.32
%
3.18
%
3.11
%
2.95
%
Efficiency ratio
Total non-interest expense
$
14,768
$
14,781
$
14,097
$
14,786
$
14,472
Total revenue
17,488
16,515
17,356
16,628
15,542
Efficiency ratio
84.45
%
89.50
%
81.22
%
88.92
%
93.11
%
(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%.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260428163087/en/
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Original: Finward Bancorp Announces First Quarter 2026 Results
US Market News
4月前
Finward Bancorp Announces Fourth Quarter 2025 ResultsJanuary 27, 2026 9:05 PM
Business Wire
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 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.
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 (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.
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.
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 these non-GAAP measures to the most directly comparable GAAP measures on pg 13.
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.
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
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
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
)%
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
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.
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%.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260127845840/en/
FOR FURTHER INFORMATION
CONTACT SHAREHOLDER SERVICES
(219) 853-7575
Original: Finward Bancorp Announces Fourth Quarter 2025 Results
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