Finward Bancorp Announces Earnings for the Quarter and Nine Months Ended September 30, 2024
29 Oktober 2024 - 10:28PM
Finward Bancorp (Nasdaq: FNWD) (the “Bancorp”), the holding company
for Peoples Bank (the “Bank”), today announced that net income
available to common stockholders was $10.0 million, or $2.35 per
diluted share, for the nine months ended September 30, 2024, as
compared to $6.9 million, or $1.60 per diluted share, for the
corresponding prior year period. For the quarter ended September
30, 2024, the Bancorp’s net income totaled $606 thousand, or $0.14
per diluted share, as compared to $143 thousand, or $0.03 per
diluted share, for the three months ended June 30, 2024, and as
compared to $2.2 million, or $0.51 per diluted share, for the three
months ended September 30, 2023. Selected performance metrics are
as follows for the periods presented:
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Performance Ratios |
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Quarter ended, |
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Nine months ended, |
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(Unaudited) |
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(Unaudited) |
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(Unaudited) |
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(Unaudited) |
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(Unaudited) |
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(Unaudited) |
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(Unaudited) |
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September 30, |
June 30, |
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March 31, |
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December 31, |
September 30, |
September 30, |
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September 30, |
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2024 |
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2024 |
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2024 |
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2023 |
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2023 |
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2024 |
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2023 |
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Return on equity |
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1.60 |
% |
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0.39 |
% |
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24.97 |
% |
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4.92 |
% |
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6.55 |
% |
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4.50 |
% |
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6.68 |
% |
Return on assets |
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0.12 |
% |
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0.03 |
% |
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1.77 |
% |
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0.29 |
% |
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0.42 |
% |
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0.64 |
% |
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|
0.44 |
% |
Tax adjusted net interest margin |
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2.67 |
% |
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2.67 |
% |
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2.57 |
% |
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2.80 |
% |
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2.87 |
% |
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2.64 |
% |
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3.04 |
% |
Noninterest income / average assets |
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0.55 |
% |
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0.50 |
% |
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2.57 |
% |
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|
0.53 |
% |
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0.46 |
% |
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1.21 |
% |
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0.51 |
% |
Noninterest expense / average assets |
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2.80 |
% |
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2.79 |
% |
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2.86 |
% |
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2.60 |
% |
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2.59 |
% |
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2.82 |
% |
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2.67 |
% |
Efficiency ratio |
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97.32 |
% |
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98.56 |
% |
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59.41 |
% |
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87.49 |
% |
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86.88 |
% |
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80.16 |
% |
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83.68 |
% |
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“The Bank’s position continued to improve in the third quarter
while we prepared for the Fed to begin their easing cycle. Margin
and expenses were stable, with minimal benefit from the Fed’s
late-quarter rate cut. We believe the Bank is poised to see margin
expansion as lower rates work their way through the liability side
of the balance sheet,” said Benjamin Bochnowski, chief executive
officer. “We remain vigilant on credit, and we continued to build
capital during the quarter. We also fully exited the Bank Term
Funding Program well in advance of its March 2025 maturity.”
Highlights of the current period include:
- Net Interest Margin - The net interest margin
was 2.53% for both the three months ended September 30, 2024 and
the three months ended June 30, 2024. The tax-adjusted net interest
margin (a non-GAAP measure) was 2.67% for both the three months
ended September 30, 2024 and the three months ended June 30, 2024.
The net interest margin for the nine months ended September 30,
2024, was 2.50%, compared to 2.89% for the nine months ended
September 30, 2023. The tax-adjusted net interest margin (a
non-GAAP measure) for the nine months ended September 30, 2024, was
2.64%, compared to 3.04% for the nine months ended September 30,
2023. 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 - As of September 30, 2024, deposits
totaled $1.7 billion, a decrease of $7.9 million or 0.5%, compared
to June 30, 2024. Core deposits totaled $1.2 billion at both
September 30, 2024 and June 30, 2024. Core deposits include
checking, savings, and money market accounts and represented 67.9%
of the Bancorp’s total deposits at September 30, 2024. As of
September 30, 2024, balances for certificates of deposit totaled
$562.2 million, compared to $541.2 million on June 30, 2024, an
increase of $21.0 million or 3.9%. The decrease in total portfolio
deposits is primarily related to cyclical flows and continued
adjustments to deposit pricing. In addition, as of September 30,
2024, borrowings and repurchase agreements totaled $128.0 million,
an increase of $65 thousand or 0.2%, compared to June 30, 2024. The
increase in short-term borrowings was the result of cyclical
inflows and outflows of interest-earning assets and
interest-bearing liabilities. During the quarter, the Bancorp
terminated its involvement in the Bank Term Funding Program (the
“BTFP”) and paid off its outstanding balance of $60 million, in
full, through a utilization of excess liquidity and FHLB advances.
As of September 30, 2024, 72% of our deposits are fully FDIC
insured, and another 7% 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, and access to diversified borrowing sources. As of
September 30, 2024, the Bancorp had available liquidity of $686
million including borrowing capacity from the FHLB and Federal
Reserve facilities.
- Securities Portfolio - Securities
available for sale balances increased by $10.4 million to $350.0
million as of September 30, 2024, compared to $339.6 million as of
June 30, 2024. The increase in securities available for
sale was due to a combination of portfolio runoff and a decrease of
accumulated other comprehensive loss ("AOCL"). AOCL was $48.2
million as of September 30, 2024, compared to $58.9 million on June
30, 2024, an improvement of $10.7 million, or 18.2%. The yield on
the securities portfolio decreased to 2.37% for the three months
ended September 30, 2024, down from 2.43% for the three months
ended June 30, 2024. Management did not execute any securities sale
transactions during the quarter but will continue to monitor the
securities portfolio for additional restructuring
opportunities.
- Lending - The Bank’s aggregate loan portfolio
totaled $1.5 billion on both September 30, 2024 and June 30, 2024.
During the three months ended September 30, 2024, the Bank
originated $70.4 million in new commercial loans, compared to $48.7
million during the three months ended June 30, 2024 and $73.2
million during the three months ended September 30, 2023. The loan
portfolio represents 78.7% of earning assets and is comprised of
62.6% commercial-related credits. At September 30, 2024, the
Bancorp’s portfolio loan balances in commercial real estate owner
occupied properties totaled $236.9 million or 15.7% of total loan
balances and commercial real estate non-owner occupied properties
totaled $302.8 million or 20.1% of total loan balances. Of the
$302.8 million in commercial real estate non-owner occupied
properties balances, loans collateralized by office buildings
represented $42.4 million or 2.8% of total loan balances.
- Gain on Sale of Loans - Gains from the sale of
loans for the nine months ended September 30, 2024 totaled $810
thousand, an increase from $729 thousand for the nine months ended
September 30, 2023. During the nine months ended September 30,
2024, the Bank originated $22.5 million in new fixed rate mortgage
loans for sale, compared to $30.4 million during the nine months
ended September 30, 2023. During the nine months ended September
30, 2024, the Bank originated $17.6 million in new 1-4 family loans
retained in its portfolio, compared to $31.8 million during the
nine months ended September 30, 2023. Total 1-4 family originations
for the quarter ended September 30, 2024, totaled $20.1 million, an
increase of $1.3 million compared to $18.8 million for the quarter
ended June 30, 2024. These retained loans are primarily
construction loans and adjustable-rate loans with a fixed-rate
period of 7 years or less. The Bank continues to sell
longer-duration fixed rate mortgages into the secondary
market.
- Asset Quality - At September 30, 2024,
non-performing loans totaled $13.8 million, compared to $11.4
million at June 30, 2024, an increase of $2.4 million or 21.4%. The
Bank’s ratio of non-performing loans to total loans was 0.92% at
September 30, 2024, compared to 0.75% at June 30, 2024. The Bank’s
ratio of non-performing assets to total assets increased from 0.61%
at June 30, 2024 to 0.73% at September 30, 2024. Management
maintains a vigilant oversight of nonperforming loans through
proactive relationship management. The allowance for credit losses
(ACL) totaled $18.5 million at September 30, 2024, compared to
$18.3 million at June 30, 2024, an increase of $186 thousand or
1.0% and is considered adequate by management. For the quarter
ended September 30, 2024, recoveries, net of charge-offs, totaled
$186 thousand. The allowance for credit losses as a percentage of
total loans was 1.23% at September 30, 2024, and the allowance for
credit losses as a percentage of non-performing loans, or coverage
ratio, was 134.1% at September 30, 2024.
- Operating Expenses -
Non-interest expense as a percentage of average assets was 2.80%
for the quarter ended September 30, 2024, as compared to 2.79% for
the quarter ended June 30, 2024. Increases in non-interest expenses
quarter over quarter were primarily attributable to slightly higher
federal deposit insurance premium and higher occupancy and
equipment expenses. The Bank remains focused on identifying
additional operating efficiencies and third-party expense
reductions through the remainder of this year and beyond.
Compensation and benefits expense is down 1.2% for the nine months
ended September 30, 2024, compared to September 30, 2023.
- Capital
Adequacy - As of September 30,
2024, the Bank’s tier 1 capital to adjusted average assets ratio
was 8.38%, an improvement of 0.06% compared to 8.32% at June 30,
2024. 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 was $31.28 at September
30, 2024, up from $28.67 as of June 30, 2024 (a non-GAAP measure).
Tangible common equity to total assets was 6.51% at September 30,
2024, up from 5.95% as of June 30, 2024 (a non-GAAP measure).
Excluding accumulated other comprehensive losses, tangible book
value per share increased to $42.47 as of September 30, 2024, from
$42.33 as of June 30, 2024 (a non-GAAP measure). 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 other
accumulated comprehensive 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.
Disclosures Regarding Non-GAAP Financial
MeasuresReported 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. The adjusted net interest income and
tax-adjusted net interest margin 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 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 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 |
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Performance Ratios |
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Quarter ended, |
|
Nine months ended, |
|
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
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September 30, |
June 30, |
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March 31, |
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December 31, |
September 30, |
September 30, |
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September 30, |
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2024 |
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2024 |
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2024 |
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2023 |
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2023 |
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|
2024 |
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|
2023 |
|
Return on equity |
|
|
1.60% |
|
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|
0.39% |
|
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24.97% |
|
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|
4.92% |
|
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6.55% |
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4.50% |
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6.68% |
|
Return on assets |
|
|
0.12% |
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|
|
0.03% |
|
|
|
1.77% |
|
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|
0.29% |
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0.42% |
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|
0.64% |
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|
0.44% |
|
Yield on loans |
|
|
5.22% |
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|
5.11% |
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|
5.02% |
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|
|
5.09% |
|
|
|
5.02% |
|
|
|
5.12% |
|
|
|
4.87% |
|
Yield on security investments |
|
|
2.37% |
|
|
|
2.43% |
|
|
|
2.37% |
|
|
|
2.57% |
|
|
|
2.41% |
|
|
|
2.39% |
|
|
|
2.39% |
|
Total yield on earning assets |
|
|
4.73% |
|
|
|
4.64% |
|
|
|
4.52% |
|
|
|
4.64% |
|
|
|
4.51% |
|
|
|
4.64% |
|
|
|
4.39% |
|
Cost of interest-bearing deposits |
|
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2.47% |
|
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|
2.37% |
|
|
|
2.36% |
|
|
|
2.22% |
|
|
|
1.95% |
|
|
|
2.40% |
|
|
|
1.58% |
|
Cost of repurchase agreements |
|
|
4.04% |
|
|
|
3.86% |
|
|
|
3.88% |
|
|
|
3.78% |
|
|
|
3.83% |
|
|
|
3.93% |
|
|
|
3.59% |
|
Cost of borrowed funds |
|
|
4.56% |
|
|
|
4.95% |
|
|
|
4.62% |
|
|
|
4.41% |
|
|
|
4.48% |
|
|
|
4.70% |
|
|
|
4.58% |
|
Total cost of interest-bearing liabilities |
|
|
2.63% |
|
|
|
2.55% |
|
|
|
2.53% |
|
|
|
2.38% |
|
|
|
2.16% |
|
|
|
2.57% |
|
|
|
1.82% |
|
Tax adjusted net interest margin (1) |
|
|
2.67% |
|
|
|
2.67% |
|
|
|
2.57% |
|
|
|
2.80% |
|
|
|
2.87% |
|
|
|
2.64% |
|
|
|
3.04% |
|
Noninterest income / average assets |
|
|
0.55% |
|
|
|
0.50% |
|
|
|
2.57% |
|
|
|
0.53% |
|
|
|
0.46% |
|
|
|
1.21% |
|
|
|
0.51% |
|
Noninterest expense / average assets |
|
|
2.80% |
|
|
|
2.79% |
|
|
|
2.86% |
|
|
|
2.60% |
|
|
|
2.59% |
|
|
|
2.82% |
|
|
|
2.67% |
|
Net noninterest margin / average assets |
|
|
-2.24% |
|
|
|
-2.29% |
|
|
|
-0.29% |
|
|
|
-2.08% |
|
|
|
-2.13% |
|
|
|
-1.60% |
|
|
|
-2.16% |
|
Efficiency ratio |
|
|
97.32% |
|
|
|
98.56% |
|
|
|
59.41% |
|
|
|
87.49% |
|
|
|
86.88% |
|
|
|
80.16% |
|
|
|
83.68% |
|
Effective tax rate |
|
|
-51.88% |
|
|
|
-6.72% |
|
|
|
9.48% |
|
|
|
-30.85% |
|
|
|
-22.20% |
|
|
|
7.01% |
|
|
|
0.30% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-performing assets to total assets |
|
|
0.73% |
|
|
|
0.61% |
|
|
|
0.64% |
|
|
|
0.61% |
|
|
|
0.54% |
|
|
|
0.73% |
|
|
|
0.54% |
|
Non-performing loans to total loans |
|
|
0.92% |
|
|
|
0.75% |
|
|
|
0.78% |
|
|
|
0.76% |
|
|
|
0.66% |
|
|
|
0.92% |
|
|
|
0.66% |
|
Allowance for credit losses to non-performing loans |
|
134.12% |
|
|
|
161.17% |
|
|
|
159.12% |
|
|
|
163.90% |
|
|
|
192.89% |
|
|
|
134.12% |
|
|
|
192.89% |
|
Allowance for credit losses to loans receivable |
|
|
1.23% |
|
|
|
1.22% |
|
|
|
1.25% |
|
|
|
1.24% |
|
|
|
1.27% |
|
|
|
1.23% |
|
|
|
1.27% |
|
Foreclosed real estate to total assets |
|
|
0.00% |
|
|
|
0.00% |
|
|
|
0.00% |
|
|
|
0.00% |
|
|
|
0.00% |
|
|
|
0.00% |
|
|
|
0.00% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share |
|
$ |
0.14 |
|
|
$ |
0.03 |
|
|
$ |
2.18 |
|
|
$ |
0.36 |
|
|
$ |
0.52 |
|
|
$ |
2.35 |
|
|
$ |
1.60 |
|
Diluted earnings per share |
|
$ |
0.14 |
|
|
$ |
0.03 |
|
|
$ |
2.17 |
|
|
$ |
0.35 |
|
|
$ |
0.51 |
|
|
$ |
2.35 |
|
|
$ |
1.60 |
|
Stockholders' equity / total assets |
|
|
7.69% |
|
|
|
7.16% |
|
|
|
7.32% |
|
|
|
6.99% |
|
|
|
5.70% |
|
|
|
7.69% |
|
|
|
5.70% |
|
Book value per share |
|
$ |
36.99 |
|
|
$ |
34.45 |
|
|
$ |
35.17 |
|
|
$ |
34.28 |
|
|
$ |
27.68 |
|
|
$ |
36.99 |
|
|
$ |
27.68 |
|
Closing stock price |
|
$ |
31.98 |
|
|
$ |
24.52 |
|
|
$ |
24.60 |
|
|
$ |
25.24 |
|
|
$ |
22.00 |
|
|
$ |
31.98 |
|
|
$ |
22.00 |
|
Price to earnings per share ratio |
|
|
56.21 |
|
|
|
182.60 |
|
|
|
2.82 |
|
|
|
17.77 |
|
|
|
10.67 |
|
|
|
10.19 |
|
|
|
10.28 |
|
Dividends declared per common share |
|
$ |
0.12 |
|
|
$ |
0.12 |
|
|
$ |
0.12 |
|
|
$ |
0.12 |
|
|
$ |
0.31 |
|
|
$ |
0.36 |
|
|
$ |
0.93 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common equity tier 1 capital to risk-weighted assets |
|
11.10% |
|
|
|
10.94% |
|
|
|
10.89% |
|
|
|
10.43% |
|
|
|
10.17% |
|
|
|
11.10% |
|
|
|
10.17% |
|
Tier 1 capital to risk-weighted assets |
|
|
11.10% |
|
|
|
10.94% |
|
|
|
10.89% |
|
|
|
10.43% |
|
|
|
10.17% |
|
|
|
11.10% |
|
|
|
10.17% |
|
Total capital to risk-weighted assets |
|
|
12.14% |
|
|
|
11.95% |
|
|
|
11.92% |
|
|
|
11.36% |
|
|
|
11.12% |
|
|
|
12.14% |
|
|
|
11.12% |
|
Tier 1 capital to adjusted average assets |
|
|
8.38% |
|
|
|
8.32% |
|
|
|
8.24% |
|
|
|
7.78% |
|
|
|
7.81% |
|
|
|
8.38% |
|
|
|
7.81% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Performance Ratios |
|
Quarter ended, |
|
Nine months ended, |
|
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
September 30, |
September 30, |
|
September 30, |
|
|
|
2024 |
|
|
|
2024 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Net interest margin - tax equivalent |
|
|
2.67% |
|
|
|
2.67% |
|
|
|
2.57% |
|
|
|
2.80% |
|
|
|
2.87% |
|
|
|
2.64% |
|
|
|
3.04% |
|
Tangible book value per diluted share |
|
$ |
31.28 |
|
|
$ |
28.67 |
|
|
$ |
29.30 |
|
|
$ |
28.31 |
|
|
$ |
21.63 |
|
|
$ |
31.28 |
|
|
$ |
21.63 |
|
Tangible book value per diluted share adjusted for AOCL |
|
$ |
42.47 |
|
|
$ |
42.33 |
|
|
$ |
42.36 |
|
|
$ |
40.31 |
|
|
$ |
39.96 |
|
|
$ |
42.47 |
|
|
$ |
39.96 |
|
Tangible common equity to total assets |
|
|
6.51% |
|
|
|
5.95% |
|
|
|
6.09% |
|
|
|
5.77% |
|
|
|
4.46% |
|
|
|
6.51% |
|
|
|
4.46% |
|
Tangible common equity to total assets adjusted for AOCL |
|
|
8.83% |
|
|
|
8.79% |
|
|
|
8.81% |
|
|
|
8.22% |
|
|
|
8.23% |
|
|
|
8.83% |
|
|
|
8.23% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Tax adjusted net interest margin represents a non-GAAP
financial measure. See the non-GAAP reconciliation table section
captioned “Non-GAAP Financial Measures” for further disclosure
regarding non-GAAP financial measures |
Quarter Ended |
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands) |
Average Balances, Interest, and Rates |
|
(unaudited) |
September 30, 2024 |
|
June 30, 2024 |
|
|
Average Balance |
|
Interest |
|
Rate (%) |
|
Average Balance |
|
Interest |
|
Rate (%) |
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
Interest bearing deposits in other financial institutions |
$ |
44,365 |
|
|
$ |
665 |
|
6.00 |
|
$ |
60,378 |
|
|
$ |
800 |
|
5.30 |
|
Federal funds sold |
|
682 |
|
|
|
9 |
|
5.28 |
|
|
1,263 |
|
|
|
10 |
|
3.17 |
|
Securities available-for-sale |
|
342,451 |
|
|
|
2,031 |
|
2.37 |
|
|
337,226 |
|
|
|
2,047 |
|
2.43 |
|
Loans receivable |
|
1,506,967 |
|
|
|
19,660 |
|
5.22 |
|
|
1,501,584 |
|
|
|
19,174 |
|
5.11 |
|
Federal Home Loan Bank stock |
|
6,547 |
|
|
|
107 |
|
6.54 |
|
|
6,547 |
|
|
|
96 |
|
5.87 |
|
Total interest earning assets |
|
1,901,012 |
|
|
$ |
22,472 |
|
4.73 |
|
|
1,906,998 |
|
|
$ |
22,127 |
|
4.64 |
|
Cash and non-interest bearing deposits in other financial
institutions |
|
32,198 |
|
|
|
|
|
|
|
18,054 |
|
|
|
|
|
|
Allowance for credit losses |
|
(18,482 |
) |
|
|
|
|
|
|
(18,788 |
) |
|
|
|
|
|
Other noninterest bearing assets |
|
155,996 |
|
|
|
|
|
|
|
158,358 |
|
|
|
|
|
|
Total assets |
$ |
2,070,724 |
|
|
|
|
|
|
$ |
2,064,622 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits |
$ |
1,451,414 |
|
|
$ |
8,946 |
|
2.47 |
|
$ |
1,455,007 |
|
|
$ |
8,610 |
|
2.37 |
|
Repurchase agreements |
|
43,074 |
|
|
|
435 |
|
4.04 |
|
|
41,388 |
|
|
|
399 |
|
3.86 |
|
Borrowed funds |
|
95,224 |
|
|
|
1,085 |
|
4.56 |
|
|
85,940 |
|
|
|
1,064 |
|
4.95 |
|
Total interest bearing liabilities |
|
1,589,712 |
|
|
$ |
10,466 |
|
2.63 |
|
|
1,582,335 |
|
|
$ |
10,073 |
|
2.55 |
|
Non-interest bearing deposits |
|
287,507 |
|
|
|
|
|
|
|
291,618 |
|
|
|
|
|
|
Other noninterest bearing liabilities |
|
41,696 |
|
|
|
|
|
|
|
45,029 |
|
|
|
|
|
|
Total liabilities |
|
1,918,915 |
|
|
|
|
|
|
|
1,918,982 |
|
|
|
|
|
|
Total stockholders' equity |
|
151,809 |
|
|
|
|
|
|
|
145,640 |
|
|
|
|
|
|
Total liabilities and stockholders' equity |
$ |
2,070,724 |
|
|
|
|
|
|
$ |
2,064,622 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets |
|
0.12 |
% |
|
|
|
|
|
|
0.03 |
% |
|
|
|
|
|
Return on average equity |
|
1.60 |
% |
|
|
|
|
|
|
0.39 |
% |
|
|
|
|
|
Net interest margin (average earning assets) |
|
2.53 |
% |
|
|
|
|
|
|
2.53 |
% |
|
|
|
|
|
Net interest margin (average earning assets) - tax equivalent |
|
2.67 |
% |
|
|
|
|
|
|
2.67 |
% |
|
|
|
|
|
Net interest spread |
|
2.10 |
% |
|
|
|
|
|
|
2.09 |
% |
|
|
|
|
|
Ratio of interest-earning assets to interest-bearing
liabilities |
|
1.20x |
|
|
|
|
|
|
|
|
1.21x |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year-to-Date |
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands) |
Average Balances, Interest, and Rates |
(unaudited) |
September 30, 2024 |
|
September 30, 2023 |
|
Average Balance |
|
Interest |
|
Rate (%) |
|
Average Balance |
|
Interest |
|
Rate (%) |
|
ASSETS |
|
|
` |
|
|
|
|
|
|
|
|
|
Interest bearing deposits in other financial institutions |
$ |
51,522 |
|
|
$ |
2,317 |
|
6.00 |
|
$ |
31,171 |
|
|
$ |
1,112 |
|
4.76 |
|
Federal funds sold |
|
919 |
|
|
|
29 |
|
4.21 |
|
|
1,158 |
|
|
|
38 |
|
4.38 |
|
Certificates of deposit in other financial institutions |
|
- |
|
|
|
- |
|
- |
|
|
1,169 |
|
|
|
44 |
|
5.02 |
|
Securities available-for-sale |
|
348,269 |
|
|
|
6,239 |
|
2.39 |
|
|
369,897 |
|
|
|
6,631 |
|
2.39 |
|
Loans receivable |
|
1,504,197 |
|
|
|
57,713 |
|
5.12 |
|
|
1,519,981 |
|
|
|
55,481 |
|
4.87 |
|
Federal Home Loan Bank stock |
|
6,547 |
|
|
|
285 |
|
5.80 |
|
|
6,547 |
|
|
|
221 |
|
4.50 |
|
Total interest earning assets |
|
1,911,454 |
|
|
$ |
66,583 |
|
4.64 |
|
|
1,929,923 |
|
|
$ |
63,527 |
|
4.39 |
|
Cash and non-interest bearing deposits in other financial
institutions |
|
29,183 |
|
|
|
|
|
|
|
18,723 |
|
|
|
|
|
|
Allowance for credit losses |
|
(18,670 |
) |
|
|
|
|
|
|
(17,619 |
) |
|
|
|
|
|
Other noninterest bearing assets |
|
155,433 |
|
|
|
|
|
|
|
154,227 |
|
|
|
|
|
|
Total assets |
$ |
2,077,400 |
|
|
|
|
|
|
$ |
2,085,254 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits |
$ |
1,464,682 |
|
|
$ |
26,350 |
|
2.40 |
|
$ |
1,455,410 |
|
|
$ |
17,258 |
|
1.58 |
|
Repurchase agreements |
|
40,879 |
|
|
|
1,204 |
|
3.93 |
|
|
33,170 |
|
|
|
892 |
|
3.59 |
|
Borrowed funds |
|
90,423 |
|
|
|
3,189 |
|
4.70 |
|
|
102,864 |
|
|
|
3,537 |
|
4.58 |
|
Total interest bearing liabilities |
|
1,595,984 |
|
|
$ |
30,743 |
|
2.57 |
|
|
1,591,444 |
|
|
$ |
21,687 |
|
1.82 |
|
Non-interest bearing deposits |
|
291,161 |
|
|
|
|
|
|
|
326,431 |
|
|
|
|
|
|
Other noninterest bearing liabilities |
|
41,540 |
|
|
|
|
|
|
|
30,178 |
|
|
|
|
|
|
Total liabilities |
|
1,928,685 |
|
|
|
|
|
|
|
1,948,053 |
|
|
|
|
|
|
Total stockholders' equity |
|
148,715 |
|
|
|
|
|
|
|
137,201 |
|
|
|
|
|
|
Total liabilities and stockholders' equity |
$ |
2,077,400 |
|
|
|
|
|
|
$ |
2,085,254 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets |
|
0.64 |
% |
|
|
|
|
|
|
0.44 |
% |
|
|
|
|
|
Return on average equity |
|
4.50 |
% |
|
|
|
|
|
|
6.68 |
% |
|
|
|
|
|
Net interest margin (average earning assets) |
|
2.50 |
% |
|
|
|
|
|
|
2.89 |
% |
|
|
|
|
|
Net interest margin (average earning assets) - tax equivalent |
|
2.64 |
% |
|
|
|
|
|
|
3.04 |
% |
|
|
|
|
|
Net interest spread |
|
2.07 |
% |
|
|
|
|
|
|
2.57 |
% |
|
|
|
|
|
Ratio of interest-earning assets to interest-bearing
liabilities |
|
1.20x |
|
|
|
|
|
|
|
|
1.21x |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Finward Bancorp |
Quarterly Financial Report |
|
|
|
|
|
|
|
|
|
|
|
Balance Sheet Data |
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
|
|
(Unaudited) |
|
|
September 30, |
June 30, |
|
March 31, |
|
December 31, |
September 30, |
|
|
|
2024 |
|
|
|
2024 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2023 |
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and non-interest bearing deposits in other financial
institutions |
|
$ |
23,071 |
|
|
$ |
19,061 |
|
|
$ |
16,418 |
|
|
$ |
17,942 |
|
|
$ |
17,922 |
|
Interest bearing deposits in other financial institutions |
|
|
48,025 |
|
|
|
63,439 |
|
|
|
54,755 |
|
|
|
67,647 |
|
|
|
52,875 |
|
|
|
|
|
|
|
|
|
|
|
|
Total cash and cash equivalents |
|
|
71,649 |
|
|
|
83,207 |
|
|
|
71,780 |
|
|
|
86,008 |
|
|
|
71,648 |
|
|
|
|
|
|
|
|
|
|
|
|
Securities available-for-sale |
|
|
350,027 |
|
|
|
339,585 |
|
|
|
346,233 |
|
|
|
371,374 |
|
|
|
339,280 |
|
Loans held-for-sale |
|
|
2,567 |
|
|
|
1,185 |
|
|
|
667 |
|
|
|
340 |
|
|
|
2,057 |
|
Loans receivable, net of deferred fees and costs |
|
|
1,508,242 |
|
|
|
1,506,398 |
|
|
|
1,508,251 |
|
|
|
1,512,595 |
|
|
|
1,525,660 |
|
Less: allowance for credit losses |
|
|
(18,516 |
) |
|
|
(18,330 |
) |
|
|
(18,805 |
) |
|
|
(18,768 |
) |
|
|
(19,430 |
) |
Net loans receivable |
|
|
1,489,726 |
|
|
|
1,488,068 |
|
|
|
1,489,446 |
|
|
|
1,493,827 |
|
|
|
1,506,230 |
|
Federal Home Loan Bank stock |
|
|
6,547 |
|
|
|
6,547 |
|
|
|
6,547 |
|
|
|
6,547 |
|
|
|
6,547 |
|
Accrued interest receivable |
|
|
7,442 |
|
|
|
7,695 |
|
|
|
7,583 |
|
|
|
8,045 |
|
|
|
7,864 |
|
Premises and equipment |
|
|
47,912 |
|
|
|
48,696 |
|
|
|
47,795 |
|
|
|
38,436 |
|
|
|
38,810 |
|
Foreclosed real estate |
|
|
- |
|
|
|
- |
|
|
|
71 |
|
|
|
71 |
|
|
|
71 |
|
Cash value of bank owned life insurance |
|
|
33,312 |
|
|
|
33,107 |
|
|
|
32,895 |
|
|
|
32,702 |
|
|
|
32,509 |
|
Goodwill |
|
|
22,395 |
|
|
|
22,395 |
|
|
|
22,395 |
|
|
|
22,395 |
|
|
|
22,395 |
|
Other intangible assets |
|
|
2,203 |
|
|
|
2,555 |
|
|
|
2,911 |
|
|
|
3,272 |
|
|
|
3,636 |
|
Other assets |
|
|
40,882 |
|
|
|
44,027 |
|
|
|
43,459 |
|
|
|
45,262 |
|
|
|
56,423 |
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
2,074,662 |
|
|
$ |
2,077,067 |
|
|
$ |
2,071,782 |
|
|
$ |
2,108,279 |
|
|
$ |
2,087,470 |
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
Non-interest bearing |
|
$ |
285,157 |
|
|
$ |
286,784 |
|
|
$ |
296,959 |
|
|
$ |
295,594 |
|
|
$ |
312,635 |
|
Interest bearing |
|
|
1,463,653 |
|
|
|
1,469,970 |
|
|
|
1,450,519 |
|
|
|
1,517,827 |
|
|
|
1,471,402 |
|
Total |
|
|
1,748,810 |
|
|
|
1,756,754 |
|
|
|
1,747,478 |
|
|
|
1,813,421 |
|
|
|
1,784,037 |
|
Repurchase agreements |
|
|
43,038 |
|
|
|
42,973 |
|
|
|
41,137 |
|
|
|
38,124 |
|
|
|
48,310 |
|
Borrowed funds |
|
|
85,000 |
|
|
|
85,000 |
|
|
|
90,000 |
|
|
|
80,000 |
|
|
|
100,000 |
|
Accrued expenses and other liabilities |
|
|
38,259 |
|
|
|
43,709 |
|
|
|
41,586 |
|
|
|
29,389 |
|
|
|
36,080 |
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities |
|
|
1,915,107 |
|
|
|
1,928,436 |
|
|
|
1,920,201 |
|
|
|
1,960,934 |
|
|
|
1,968,427 |
|
|
|
|
|
|
|
|
|
|
|
|
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; 10,000,000 shares
authorized; |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
shares issued and outstanding: September 30, 2024 - 4,313,940 |
|
|
|
|
|
|
|
|
|
|
December 31, 2023 - 4,298,773 |
|
|
|
|
|
|
|
|
|
|
Additional paid-in capital |
|
|
69,916 |
|
|
|
69,778 |
|
|
|
69,727 |
|
|
|
69,555 |
|
|
|
69,482 |
|
Accumulated other comprehensive loss |
|
|
(48,241 |
) |
|
|
(58,939 |
) |
|
|
(56,313 |
) |
|
|
(51,613 |
) |
|
|
(78,848 |
) |
Retained earnings |
|
|
137,880 |
|
|
|
137,792 |
|
|
|
138,167 |
|
|
|
129,403 |
|
|
|
128,409 |
|
|
|
|
|
|
|
|
|
|
|
|
Total stockholders' equity |
|
|
159,555 |
|
|
|
148,631 |
|
|
|
151,581 |
|
|
|
147,345 |
|
|
|
119,043 |
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and stockholders' equity |
|
$ |
2,074,662 |
|
|
$ |
2,077,067 |
|
|
$ |
2,071,782 |
|
|
$ |
2,108,279 |
|
|
$ |
2,087,470 |
|
|
|
|
|
|
|
|
|
|
|
|
Finward Bancorp |
Quarterly Financial Report |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Statements of Income |
|
Quarter Ended, |
|
|
Nine months ended, |
(Dollars in thousands) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
|
|
(Unaudited) |
|
|
(Unaudited) |
|
(Unaudited) |
|
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
September 30, |
|
September 30, |
|
September 30, |
|
|
|
2024 |
|
|
|
2024 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
|
2024 |
|
|
|
2023 |
|
Interest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans |
|
$ |
19,660 |
|
|
$ |
19,174 |
|
|
$ |
18,879 |
|
|
$ |
19,281 |
|
|
$ |
19,161 |
|
|
|
$ |
57,713 |
|
|
$ |
55,481 |
|
Securities & short-term investments |
|
|
2,812 |
|
|
|
2,953 |
|
|
|
3,105 |
|
|
|
2,975 |
|
|
|
2,617 |
|
|
|
|
8,870 |
|
|
|
8,046 |
|
Total interest income |
|
|
22,472 |
|
|
|
22,127 |
|
|
|
21,984 |
|
|
|
22,256 |
|
|
|
21,778 |
|
|
|
|
66,583 |
|
|
|
63,527 |
|
Interest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
8,946 |
|
|
|
8,610 |
|
|
|
8,794 |
|
|
|
8,180 |
|
|
|
7,066 |
|
|
|
|
26,350 |
|
|
|
17,258 |
|
Borrowings |
|
|
1,520 |
|
|
|
1,463 |
|
|
|
1,410 |
|
|
|
1,361 |
|
|
|
1,579 |
|
|
|
|
4,393 |
|
|
|
4,429 |
|
Total interest expense |
|
|
10,466 |
|
|
|
10,073 |
|
|
|
10,204 |
|
|
|
9,541 |
|
|
|
8,645 |
|
|
|
|
30,743 |
|
|
|
21,687 |
|
Net interest income |
|
|
12,006 |
|
|
|
12,054 |
|
|
|
11,780 |
|
|
|
12,715 |
|
|
|
13,133 |
|
|
|
|
35,840 |
|
|
|
41,840 |
|
Provision for credit losses |
|
|
- |
|
|
|
76 |
|
|
|
- |
|
|
|
779 |
|
|
|
244 |
|
|
|
|
76 |
|
|
|
1,246 |
|
Net interest income after provision for credit losses |
|
|
12,006 |
|
|
|
11,978 |
|
|
|
11,780 |
|
|
|
11,936 |
|
|
|
12,889 |
|
|
|
|
35,764 |
|
|
|
40,594 |
|
Noninterest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fees and service charges |
|
|
1,463 |
|
|
|
1,257 |
|
|
|
1,153 |
|
|
|
1,507 |
|
|
|
1,374 |
|
|
|
|
3,873 |
|
|
|
4,517 |
|
Wealth management operations |
|
|
731 |
|
|
|
763 |
|
|
|
633 |
|
|
|
672 |
|
|
|
572 |
|
|
|
|
2,127 |
|
|
|
1,812 |
|
Gain on sale of loans held-for-sale, net |
|
|
338 |
|
|
|
320 |
|
|
|
152 |
|
|
|
352 |
|
|
|
192 |
|
|
|
|
810 |
|
|
|
729 |
|
Increase in cash value of bank owned life insurance |
|
205 |
|
|
|
212 |
|
|
|
193 |
|
|
|
193 |
|
|
|
193 |
|
|
|
|
610 |
|
|
|
573 |
|
Gain (loss) on sale of real estate |
|
|
- |
|
|
|
15 |
|
|
|
11,858 |
|
|
|
- |
|
|
|
2 |
|
|
|
|
11,873 |
|
|
|
(13 |
) |
Loss on sale of securities, net |
|
|
- |
|
|
|
- |
|
|
|
(531 |
) |
|
|
- |
|
|
|
- |
|
|
|
|
(531 |
) |
|
|
(48 |
) |
Other |
|
|
130 |
|
|
|
6 |
|
|
|
17 |
|
|
|
11 |
|
|
|
64 |
|
|
|
|
154 |
|
|
|
441 |
|
Total noninterest income |
|
|
2,867 |
|
|
|
2,573 |
|
|
|
13,475 |
|
|
|
2,735 |
|
|
|
2,397 |
|
|
|
|
18,916 |
|
|
|
8,011 |
|
Noninterest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and benefits |
|
|
6,963 |
|
|
|
7,037 |
|
|
|
7,109 |
|
|
|
6,290 |
|
|
|
6,729 |
|
|
|
|
21,109 |
|
|
|
21,365 |
|
Occupancy and equipment |
|
|
2,181 |
|
|
|
2,120 |
|
|
|
1,915 |
|
|
|
1,520 |
|
|
|
1,711 |
|
|
|
|
6,205 |
|
|
|
4,898 |
|
Data processing |
|
|
1,165 |
|
|
|
1,135 |
|
|
|
1,170 |
|
|
|
1,269 |
|
|
|
1,085 |
|
|
|
|
3,470 |
|
|
|
3,465 |
|
Federal deposit insurance premiums |
|
|
435 |
|
|
|
397 |
|
|
|
501 |
|
|
|
492 |
|
|
|
474 |
|
|
|
|
1,333 |
|
|
|
1,511 |
|
Marketing |
|
|
209 |
|
|
|
212 |
|
|
|
158 |
|
|
|
191 |
|
|
|
235 |
|
|
|
|
579 |
|
|
|
649 |
|
Other |
|
|
3,521 |
|
|
|
3,516 |
|
|
|
4,151 |
|
|
|
3,755 |
|
|
|
3,259 |
|
|
|
|
9,465 |
|
|
|
8,547 |
|
Total noninterest expense |
|
|
14,474 |
|
|
|
14,417 |
|
|
|
15,004 |
|
|
|
13,517 |
|
|
|
13,493 |
|
|
|
|
43,895 |
|
|
|
41,715 |
|
Income before income taxes |
|
|
399 |
|
|
|
134 |
|
|
|
10,251 |
|
|
|
1,154 |
|
|
|
1,793 |
|
|
|
|
10,785 |
|
|
|
6,890 |
|
Income tax expenses (benefit) |
|
|
(207 |
) |
|
|
(9 |
) |
|
|
972 |
|
|
|
(356 |
) |
|
|
(398 |
) |
|
|
|
756 |
|
|
|
21 |
|
Net income |
|
$ |
606 |
|
|
$ |
143 |
|
|
$ |
9,279 |
|
|
$ |
1,510 |
|
|
$ |
2,191 |
|
|
|
$ |
10,029 |
|
|
$ |
6,869 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.14 |
|
|
$ |
0.03 |
|
|
$ |
2.18 |
|
|
$ |
0.36 |
|
|
$ |
0.52 |
|
|
|
$ |
2.35 |
|
|
$ |
1.60 |
|
Diluted |
|
$ |
0.14 |
|
|
$ |
0.03 |
|
|
$ |
2.17 |
|
|
$ |
0.35 |
|
|
$ |
0.51 |
|
|
|
$ |
2.35 |
|
|
$ |
1.60 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Finward Bancorp |
Quarterly Financial Report |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Quality |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
|
|
(Unaudited) |
(Dollars in thousands) |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
|
|
|
|
|
2024 |
|
|
|
2024 |
|
|
|
2024 |
|
|
2023 |
|
|
2023 |
|
Nonaccruing loans |
|
$ |
13,806 |
|
|
$ |
11,079 |
|
|
$ |
11,603 |
|
$ |
9,608 |
|
$ |
9,840 |
|
Accruing loans delinquent more than 90 days |
|
|
- |
|
|
|
294 |
|
|
|
215 |
|
|
1,843 |
|
|
233 |
|
Securities in non-accrual |
|
|
1,440 |
|
|
|
1,371 |
|
|
|
1,442 |
|
|
1,357 |
|
|
1,155 |
|
Foreclosed real estate |
|
|
- |
|
|
|
- |
|
|
|
71 |
|
|
71 |
|
|
71 |
|
|
Total nonperforming assets |
|
$ |
15,246 |
|
|
$ |
12,744 |
|
|
$ |
13,331 |
|
$ |
12,879 |
|
$ |
11,299 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit losses (ACL): |
|
|
|
|
|
|
|
|
|
|
|
ACL specific allowances for collateral dependent loans |
|
$ |
1,821 |
|
|
$ |
1,327 |
|
|
$ |
1,455 |
|
$ |
906 |
|
$ |
554 |
|
|
ACL general allowances for loan portfolio |
|
|
16,695 |
|
|
|
17,003 |
|
|
|
17,351 |
|
|
17,862 |
|
|
18,876 |
|
|
|
Total ACL |
|
$ |
18,516 |
|
|
$ |
18,330 |
|
|
$ |
18,806 |
|
$ |
18,768 |
|
$ |
19,430 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in millions) |
|
|
|
|
|
|
|
|
|
Minimum Required To Be |
|
|
|
|
|
|
Minimum Required For |
|
Well Capitalized Under Prompt |
|
|
Actual |
|
Capital Adequacy Purposes |
|
Corrective Action Regulations |
September 30, 2024 |
|
Amount |
|
Ratio |
|
Amount |
|
Ratio |
|
Amount |
|
Ratio |
Common equity tier 1 capital to risk-weighted assets |
|
$ |
176.3 |
|
11.10 |
% |
|
$ |
71.9 |
|
4.50 |
% |
|
$ |
103.9 |
|
6.50 |
% |
Tier 1 capital to risk-weighted assets |
|
$ |
176.3 |
|
11.10 |
% |
|
$ |
95.9 |
|
6.00 |
% |
|
$ |
127.9 |
|
8.00 |
% |
Total capital to risk-weighted assets |
|
$ |
194.0 |
|
12.14 |
% |
|
$ |
127.9 |
|
8.00 |
% |
|
$ |
159.8 |
|
10.00 |
% |
Tier 1 capital to adjusted average assets |
|
$ |
176.3 |
|
8.38 |
% |
|
$ |
84.7 |
|
4.00 |
% |
|
$ |
105.8 |
|
5.00 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 1 - Reconciliation of the Non-GAAP Performance Measures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands) |
Quarter Ended, |
|
Nine months ended, |
(unaudited) |
September 30, 2024 |
|
June 30, 2024 |
|
March 31, 2024 |
|
December 31, 2023 |
|
September 30, 2023 |
|
September 30, 2024 |
|
September 30, 2023 |
Calculation of tangible common equity |
|
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Total stockholder's equity |
$ |
159,555 |
|
|
$ |
148,631 |
|
|
$ |
151,581 |
|
|
$ |
147,345 |
|
|
$ |
119,043 |
|
|
$ |
159,555 |
|
|
$ |
119,043 |
|
Goodwill |
|
(22,395 |
) |
|
|
(22,395 |
) |
|
|
(22,395 |
) |
|
|
(22,395 |
) |
|
|
(22,395 |
) |
|
|
(22,395 |
) |
|
|
(22,395 |
) |
Other intangibles |
|
(2,203 |
) |
|
|
(2,555 |
) |
|
|
(2,911 |
) |
|
|
(3,272 |
) |
|
|
(3,636 |
) |
|
|
(2,203 |
) |
|
|
(3,636 |
) |
Tangible common equity |
$ |
134,957 |
|
|
$ |
123,681 |
|
|
$ |
126,275 |
|
|
$ |
121,678 |
|
|
$ |
93,012 |
|
|
$ |
134,957 |
|
|
$ |
93,012 |
|
|
|
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Calculation of tangible common equity adjusted for
accumulated other comprehensive loss |
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Tangible common equity |
$ |
134,957 |
|
|
$ |
123,681 |
|
|
$ |
126,275 |
|
|
$ |
121,678 |
|
|
$ |
93,012 |
|
|
$ |
134,957 |
|
|
$ |
93,012 |
|
Accumulated other comprehensive loss |
|
48,241 |
|
|
|
58,939 |
|
|
|
56,313 |
|
|
|
51,613 |
|
|
|
78,848 |
|
|
|
48,241 |
|
|
|
78,848 |
|
Tangible common equity adjusted for accumulated other comprehensive
loss |
$ |
183,198 |
|
|
|
$ |
182,620 |
|
|
|
$ |
182,588 |
|
|
|
$ |
173,291 |
|
|
|
$ |
171,860 |
|
|
$ |
183,198 |
|
|
|
$ |
171,860 |
|
|
|
|
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Calculation of tangible book value per share |
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Tangible common equity |
$ |
134,957 |
|
|
$ |
123,681 |
|
|
$ |
126,275 |
|
|
$ |
121,678 |
|
|
$ |
93,012 |
|
|
$ |
134,957 |
|
|
$ |
93,012 |
|
Shares outstanding |
|
4,313,940 |
|
|
|
4,313,940 |
|
|
|
4,310,251 |
|
|
|
4,298,773 |
|
|
|
4,300,881 |
|
|
|
4,313,940 |
|
|
|
4,300,881 |
|
Tangible book value per diluted share |
$ |
31.28 |
|
|
$ |
28.67 |
|
|
$ |
29.30 |
|
|
$ |
28.31 |
|
|
$ |
21.63 |
|
|
$ |
31.28 |
|
|
$ |
21.63 |
|
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|
Calculation of tangible book value per diluted share
adjusted for accumulated other comprehensive loss |
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|
Tangible common equity adjusted for accumulated other comprehensive
loss |
$ |
183,198 |
|
|
$ |
182,620 |
|
|
$ |
182,588 |
|
|
$ |
173,291 |
|
|
$ |
171,860 |
|
|
$ |
183,198 |
|
|
$ |
171,860 |
|
Diluted average common shares outstanding |
|
4,313,940 |
|
|
|
4,313,940 |
|
|
|
4,310,251 |
|
|
|
4,298,773 |
|
|
|
4,300,881 |
|
|
|
4,313,940 |
|
|
|
4,300,881 |
|
Tangible book value per diluted share adjusted for accumulated
other comprehensive loss |
$ |
42.47 |
|
|
$ |
42.33 |
|
|
$ |
42.36 |
|
|
$ |
40.31 |
|
|
$ |
39.96 |
|
|
$ |
42.47 |
|
|
$ |
39.96 |
|
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Calculation of tangible common equity to total
assets |
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|
Tangible common equity |
$ |
134,957 |
|
|
$ |
123,681 |
|
|
$ |
126,275 |
|
|
$ |
121,678 |
|
|
$ |
93,012 |
|
|
$ |
134,957 |
|
|
$ |
93,012 |
|
Total assets |
|
2,074,662 |
|
|
|
2,077,067 |
|
|
|
2,071,782 |
|
|
|
2,108,279 |
|
|
|
2,087,470 |
|
|
|
2,074,662 |
|
|
|
2,087,470 |
|
Tangible common equity to total assets |
|
6.51 |
% |
|
|
5.95 |
% |
|
|
6.09 |
% |
|
|
5.77 |
% |
|
|
4.46 |
% |
|
|
6.51 |
% |
|
|
4.46 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
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|
Calculation of tangible common equity to total assets
adjusted for accumulated other comprehensive loss |
|
|
|
|
|
|
|
|
|
|
|
|
Tangible common equity adjusted for accumulated other comprehensive
loss |
$ |
183,198 |
|
|
$ |
182,620 |
|
|
$ |
182,588 |
|
|
$ |
173,291 |
|
|
$ |
171,860 |
|
|
$ |
183,198 |
|
|
$ |
171,860 |
|
Total assets |
|
2,074,662 |
|
|
|
2,077,067 |
|
|
|
2,071,782 |
|
|
|
2,108,279 |
|
|
|
2,087,470 |
|
|
|
2,074,662 |
|
|
|
2,087,470 |
|
Tangible common equity to total assets adjusted for accumulated
other comprehensive loss |
|
8.83 |
% |
|
|
8.79 |
% |
|
|
8.81 |
% |
|
|
8.22 |
% |
|
|
8.23 |
% |
|
|
8.83 |
% |
|
|
8.23 |
% |
|
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|
Calculation of tax adjusted net interest
margin |
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|
Net interest income |
$ |
12,006 |
|
|
$ |
12,054 |
|
|
$ |
11,780 |
|
|
$ |
12,715 |
|
|
$ |
13,133 |
|
|
$ |
35,840 |
|
|
$ |
41,840 |
|
Tax adjusted interest on securities and loans |
|
678 |
|
|
|
677 |
|
|
|
699 |
|
|
|
722 |
|
|
|
730 |
|
|
|
2,054 |
|
|
|
2,234 |
|
Adjusted net interest income |
|
12,684 |
|
|
|
12,731 |
|
|
|
12,749 |
|
|
|
13,437 |
|
|
|
13,863 |
|
|
|
37,894 |
|
|
|
44,074 |
|
Total average earning assets |
|
1,901,012 |
|
|
|
1,906,998 |
|
|
|
1,945,501 |
|
|
|
1,920,127 |
|
|
|
1,930,118 |
|
|
|
1,911,454 |
|
|
|
1,929,923 |
|
Tax adjusted net interest margin |
|
2.67 |
% |
|
|
2.67 |
% |
|
|
2.57 |
% |
|
|
2.80 |
% |
|
|
2.87 |
% |
|
|
2.64 |
% |
|
|
3.04 |
% |
|
|
|
|
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|
Efficiency ratio |
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|
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|
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|
Total non-interest expense |
$ |
14,474 |
|
|
$ |
14,417 |
|
|
$ |
15,004 |
|
|
$ |
13,517 |
|
|
$ |
13,493 |
|
|
$ |
43,895 |
|
|
$ |
13,493 |
|
Total revenue |
|
14,873 |
|
|
|
14,627 |
|
|
|
25,255 |
|
|
|
15,450 |
|
|
|
15,530 |
|
|
|
54,756 |
|
|
|
15,530 |
|
Efficiency ratio |
|
97.32 |
% |
|
|
98.56 |
% |
|
|
59.41 |
% |
|
|
87.49 |
% |
|
|
86.88 |
% |
|
|
80.16 |
% |
|
|
86.88 |
% |
|
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|
FOR FURTHER INFORMATIONCONTACT
SHAREHOLDER SERVICES(219) 853-7575
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