Finward Bancorp (Nasdaq: FNWD) (the “Bancorp”), the holding company
for Peoples Bank (the “Bank”), today announced corrections to its
press release issued on July 24, 2024. Specifically, the
following press release (i) corrects the “Performance Ratios” table
set forth in the rear portion of the original press release to
include line items for return on equity, return on assets, tax
adjusted net interest margin, noninterest income / average assets,
noninterest expense / average assets, and efficiency ratio which
were inadvertently not included in the version of the original
press release issued through the Bancorp’s press release
distribution service, and corrects the amounts disclosed in the
line items in the table for basic earnings per share (from $0.03 to
$2.21), diluted earnings per share ($0.03 to $2.21), and price to
earnings per share ratio (from 730.40 to 5.54) under the column for
the six months ended June 30, 2024 which were inadvertently
included from a prior interim version of the press release; (ii)
corrects calculations in the “Performance Ratios” and “Capital
Adequacy Bank” tables for the line items common equity tier 1
capital to risk-weighted assets (from 11.23% to 10.94%), tier 1
capital to risk-weighted assets (from 11.23% to 10.94%), and total
capital to risk-weighted assets (from 12.27% to 11.95%); (iii)
corrects the “Balance Sheet” table set forth in the rear portion of
the Original Earnings Release to include figures in the line item
for Federal funds sold for the periods ended June 30, 2024, March
31, 2024, and December 31, 2023 which were inadvertently not
included in the version of the original press release issued
through the Bancorp’s press release distribution service; and (iv)
corrects the amount listed in the “Securities Portfolio” paragraph
for securities yield for the three months ended (from 2.39% to
2.37%). The complete, corrected press release reads as
follows:
Munster, Indiana - Finward Bancorp (Nasdaq: FNWD) (the
“Bancorp”), the holding company for Peoples Bank (the “Bank”),
today announced that net income available to common stockholders
was $9.4 million, or $2.21 per diluted share, for the six months
ended June 30, 2024, as compared to $4.7 million, or $1.10 per
diluted share, for the corresponding prior year period. For the
quarter ended June 30, 2024, the Bancorp’s net income totaled $143
thousand, or $0.03 per diluted share, as compared to $2.4 million,
or $0.57 per diluted share, for the three months ended June 30,
2023. Selected performance metrics are as follows for the periods
presented:
Performance Ratios |
|
Quarter ended, |
|
Six months ended, |
|
|
|
|
|
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
|
|
|
|
|
June 30, |
|
March 31, |
|
December 31, |
September 30, |
June 30, |
|
June 30, |
|
June 30, |
|
|
|
|
|
|
2024 |
|
2024 |
|
2023 |
|
2023 |
|
2023 |
|
2024 |
|
2023 |
|
Return on equity |
|
0.39 |
% |
|
24.97 |
% |
|
4.92 |
% |
|
6.55 |
% |
|
7.05 |
% |
|
12.81 |
% |
|
6.74 |
% |
|
Return on assets |
|
0.03 |
% |
|
1.77 |
% |
|
0.29 |
% |
|
0.42 |
% |
|
0.46 |
% |
|
0.91 |
% |
|
0.45 |
% |
|
Tax adjusted net interest margin |
|
2.67 |
% |
|
2.57 |
% |
|
2.80 |
% |
|
2.87 |
% |
|
3.03 |
% |
|
2.62 |
% |
|
3.13 |
% |
|
Noninterest income / average assets |
|
0.50 |
% |
|
2.57 |
% |
|
0.53 |
% |
|
0.46 |
% |
|
0.57 |
% |
|
1.54 |
% |
|
0.54 |
% |
|
Noninterest expense / average assets |
|
2.79 |
% |
|
2.86 |
% |
|
2.60 |
% |
|
2.59 |
% |
|
2.66 |
% |
|
2.83 |
% |
|
2.71 |
% |
|
Efficiency ratio |
|
|
98.56 |
% |
|
59.41 |
% |
|
87.49 |
% |
|
86.88 |
% |
|
82.11 |
% |
|
73.77 |
% |
|
82.23 |
% |
|
“Key operating areas saw benefits in the second quarter from
previously announced strategic initiatives. Net interest margin
demonstrated signs of continued stabilization during the quarter,
and non-interest expense levels decreased as expected, as we
believe operational efficiency will continue to improve in the
second half of the year. Provision expense increased primarily as
the result of new unfunded commitments as we continue to provide
capital to our customers," said Benjamin Bochnowski, chief
executive officer. "Asset yields have begun to show improvement as
we fund new lending opportunities in our core market. While loan
balances are down, originations remain on pace with expectations
for the year. Credit quality remains strong, and we are
well-positioned for potential changes in the interest rate
environment”.
Highlights of the current period include:
- Net Interest
Margin - The net interest margin for the three months
ended June 30, 2024, was 2.54%, compared to 2.42% for the three
months ended March 31, 2024. The tax-adjusted net interest margin
(a non-GAAP measure) for the three months ended June 30, 2024, was
2.67%, compared to 2.57% for the three months ended March 31, 2024.
The increased net interest margin is primarily the result of
gradual improvement in earning asset yields as loans are originated
or are generally repricing at higher rates, while maintaining
relatively stable interest-bearing liability costs in this current
interest rate environment. 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 June 30, 2024, deposits totaled $1.8 billion,
compared to $1.7 billion on March 31, 2024, an increase of $9.2
million or 0.5%. Core deposits totaled $1.2 billion at both June
30, 2024 and March 31, 2024. Core deposits include checking,
savings, and money market accounts and represented 69.2% of the
Bancorp’s total deposits at June 30, 2024. On June 30, 2024,
balances for certificates of deposit totaled $541.2 million,
compared to $531.3 million on March 31, 2024, an increase of $9.8
million or 1.7%. The increase in deposits is primarily related to
cyclical inflows and outflows related to a number of municipality
depositors and planned adjustments to deposit pricing. In addition,
on June 30, 2024, borrowings and repurchase agreements totaled
$128.0 million, compared to $131.1 million at March 31, 2024, a
decrease of $3.2 million or 2.4%. The decrease in short-term
borrowings was the result of cyclical inflows and outflows of
interest-earning assets and interest-bearing liabilities.
Furthermore, during the quarter, the Bancorp repaid an additional
$5 million of its outstanding Bank Term Funding Program (the
“BTFP”) balance, resulting in a $60 million balance as of June 30,
2024. As of June 30, 2024, 71% of our deposits are fully FDIC
insured, and another 8% 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
June 30, 2024, the Bancorp had available liquidity of $585 million
including borrowing capacity from the FHLB and Federal Reserve
facilities.
- Securities
Portfolio - Securities available for sale balances
declined by $6.6 million to $339.6 million as of June 30, 2024,
compared to $346.2 million as of March 31, 2024. The
decrease in securities available for sale was due to a combination
of portfolio runoff and an increase of accumulated other
comprehensive income ("AOCI") losses. AOCI losses were $58.9
million as of June 30, 2024, compared to $56.3 million on March 31,
2024, an increase of $2.6 million or 4.7%. The yield on the
securities portfolio increased to 2.43% for the three months ended
June 30, 2024, up from 2.37% for the three months ended March 31,
2024. Management did not execute any securities sale transactions
during the quarter but will continue to monitor the securities
portfolio for additional restructuring
opportunities.
- Gain on Sale
of Loans - Lower levels of mortgage loan origination in
our markets continues to drive reduced fixed rate mortgage loan
sale activity into the secondary market. As a result, gains from
the sale of loans for the six months ended June 30, 2024, totaled
$472 thousand, a decrease from $537 thousand for the six months
ended June 30, 2023. During the six months ended June 30, 2024, the
Bank originated $9.7 million in new fixed rate mortgage loans for
sale, compared to $19.3 million during the six months ended June
30, 2023. During the six months ended June 30, 2024, the Bank
originated $8.8 million in new 1-4 family loans retained in its
portfolio, compared to $17.4 million during the six months ended
June 30, 2023. Total 1-4 family originations for the quarter ended
June 30, 2024, totaled $18.5 million, a decrease of $4.2 million
from the amount for the quarter ended June 30, 2023, totaling $22.7
million. This decrease was driven by increasing market interest
rates and continued low levels of housing inventory, which slowed
mortgage applications. 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.
- Commercial
Lending - The Bank’s aggregate loan portfolio totaled $1.5
billion on both June 30, 2024 and March 31, 2024. During the three
months ended June 30, 2024, the Bank originated $48.7 million in
new commercial loans, compared to $47.9 million during the three
months ended March 31, 2024 and $73.2 million during the three
months ended June 30, 2023. The loan portfolio represents 78.5% of
earning assets and is comprised of 62.2% commercial-related
credits. At June 30, 2024, the Bancorp’s portfolio loan balances in
commercial real estate owner occupied properties totaled $235.9
million or 15.7% of total loan balances and commercial real estate
non-owner occupied properties totaled $293.5 million or 19.5% of
total loan balances. Of the $293.5 million in commercial real
estate non-owner occupied properties balances, loans collateralized
by office buildings represented $42.6 million or 2.8% of total loan
balances.
- Asset
Quality - At June 30, 2024, non-performing loans totaled
$11.4 million, compared to $11.8 million at March 31, 2024, a
decrease of $445 thousand or 3.8%. The Bank’s ratio of
non-performing loans to total loans was 0.75% at June 30, 2024,
compared to 0.78% at March 31, 2024. The Bank’s ratio of
non-performing assets to total assets declined from 0.64% at March
31, 2024 to 0.61% at June 30, 2024. Management maintains a vigilant
oversight of nonperforming loans through proactive relationship
management. The allowance for credit losses (ACL) totaled $18.3
million at June 30, 2024, compared to $18.8 million at March 31,
2024, a decrease of $476 thousand or 2.5% and is considered
adequate by management. For the quarter ended June 30, 2024,
charge-offs, net of recoveries, totaled $37 thousand. The allowance
for credit losses as a percentage of total loans was 1.22% at June
30, 2024, and the allowance for credit losses as a percentage of
non-performing loans, or coverage ratio, was 161.2% at June 30,
2024.
- Operating
Expenses - Non-interest expense as a
percent of average assets was 2.79% for the quarter ended June 30,
2024, as compared to 2.86% for quarter ended March 31, 2024, a
decrease of 0.07%. Decreases in non-interest expenses quarter
over quarter were primarily attributable to lower accounting and
service fees with lower third-party expenses related to operational
enhancements. 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 3.3% for the six months ended June 30, 2024,
compared to June 30, 2023.
- Capital
Adequacy - As of June 30, 2024,
the Bank’s tier 1 capital to adjusted average assets ratio was
8.32% which is within all regulatory capital requirements and an
improvement of 0.08% compared to 8.24% at March 31, 2024. The Bank
continues to be considered well capitalized. The Bancorp’s tangible
book value per share was $28.67 at June 30, 2024, down from $29.30
as of March 31, 2024 (a non-GAAP measure). Tangible common equity
to total assets was 5.95% at June 30, 2024, down from 6.09% as of
March 31, 2024 (a non-GAAP measure). Excluding accumulated other
comprehensive losses, tangible book value per share decreased to
$42.33 as of June 30, 2024, from $42.36 as of March 31, 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 accumulated comprehensive other
losses, tangible common equity as a percentage of total assets, and
tangible common equity as a percentage of total assets adjusted for
accumulated other comprehensive losses to the related GAAP
ratios.
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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance Ratios |
Quarter ended, |
|
Six months ended, |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
June 30, |
|
March 31, |
|
December 31, |
September 30, |
June 30, |
|
June 30, |
|
June 30, |
|
|
2024 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Return on
equity |
|
0.39 |
% |
|
|
24.97 |
% |
|
|
4.92 |
% |
|
|
6.55 |
% |
|
|
7.05 |
% |
|
|
12.81 |
% |
|
|
6.74 |
% |
Return on
assets |
|
0.03 |
% |
|
|
1.77 |
% |
|
|
0.29 |
% |
|
|
0.42 |
% |
|
|
0.46 |
% |
|
|
0.91 |
% |
|
|
0.45 |
% |
Yield on
loans |
|
5.11 |
% |
|
|
5.02 |
% |
|
|
5.09 |
% |
|
|
5.02 |
% |
|
|
4.91 |
% |
|
|
5.06 |
% |
|
|
4.79 |
% |
Yield on
security investments |
|
2.43 |
% |
|
|
2.37 |
% |
|
|
2.57 |
% |
|
|
2.41 |
% |
|
|
2.36 |
% |
|
|
2.40 |
% |
|
|
2.38 |
% |
Total yield
on earning assets |
|
4.64 |
% |
|
|
4.52 |
% |
|
|
4.64 |
% |
|
|
4.51 |
% |
|
|
4.43 |
% |
|
|
4.58 |
% |
|
|
4.33 |
% |
Cost of
interest-bearing deposits |
|
2.37 |
% |
|
|
2.36 |
% |
|
|
2.22 |
% |
|
|
1.95 |
% |
|
|
1.65 |
% |
|
|
2.37 |
% |
|
|
1.40 |
% |
Cost of
repurchase agreements |
|
3.86 |
% |
|
|
3.88 |
% |
|
|
3.78 |
% |
|
|
3.83 |
% |
|
|
3.78 |
% |
|
|
3.87 |
% |
|
|
3.39 |
% |
Cost of
borrowed funds |
|
4.76 |
% |
|
|
4.62 |
% |
|
|
4.41 |
% |
|
|
4.48 |
% |
|
|
4.53 |
% |
|
|
4.69 |
% |
|
|
4.64 |
% |
Total cost
of interest-bearing liabilities |
|
2.54 |
% |
|
|
2.53 |
% |
|
|
2.38 |
% |
|
|
2.16 |
% |
|
|
1.87 |
% |
|
|
2.53 |
% |
|
|
1.64 |
% |
Tax adjusted
net interest margin |
|
2.67 |
% |
|
|
2.57 |
% |
|
|
2.80 |
% |
|
|
2.87 |
% |
|
|
3.03 |
% |
|
|
2.62 |
% |
|
|
3.13 |
% |
Noninterest
income / average assets |
|
0.50 |
% |
|
|
2.57 |
% |
|
|
0.53 |
% |
|
|
0.46 |
% |
|
|
0.57 |
% |
|
|
1.54 |
% |
|
|
0.54 |
% |
Noninterest
expense / average assets |
|
2.79 |
% |
|
|
2.86 |
% |
|
|
2.60 |
% |
|
|
2.59 |
% |
|
|
2.66 |
% |
|
|
2.83 |
% |
|
|
2.71 |
% |
Net
noninterest margin / average assets |
|
-2.29 |
% |
|
|
-0.29 |
% |
|
|
-2.08 |
% |
|
|
-2.13 |
% |
|
|
-2.09 |
% |
|
|
-1.29 |
% |
|
|
-2.17 |
% |
Efficiency
ratio |
|
98.56 |
% |
|
|
59.41 |
% |
|
|
87.49 |
% |
|
|
86.88 |
% |
|
|
82.11 |
% |
|
|
73.77 |
% |
|
|
82.23 |
% |
Effective
tax rate |
|
-6.72 |
% |
|
|
9.48 |
% |
|
|
-30.85 |
% |
|
|
-22.20 |
% |
|
|
3.86 |
% |
|
|
9.27 |
% |
|
|
8.22 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-performing assets to total assets |
|
0.61 |
% |
|
|
0.64 |
% |
|
|
0.61 |
% |
|
|
0.54 |
% |
|
|
0.62 |
% |
|
|
0.61 |
% |
|
|
0.62 |
% |
Non-performing loans to total loans |
|
0.75 |
% |
|
|
0.78 |
% |
|
|
0.76 |
% |
|
|
0.66 |
% |
|
|
0.80 |
% |
|
|
0.75 |
% |
|
|
0.80 |
% |
Allowance
for credit losses to non-performing loans |
|
161.17 |
% |
|
|
159.12 |
% |
|
|
163.90 |
% |
|
|
192.89 |
% |
|
|
158.26 |
% |
|
|
161.17 |
% |
|
|
158.26 |
% |
Allowance
for credit losses to loans outstanding |
|
1.22 |
% |
|
|
1.25 |
% |
|
|
1.24 |
% |
|
|
1.27 |
% |
|
|
1.27 |
% |
|
|
1.22 |
% |
|
|
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 |
$ |
0.03 |
|
|
$ |
2.18 |
|
|
$ |
0.36 |
|
|
$ |
0.52 |
|
|
$ |
0.57 |
|
|
$ |
2.21 |
|
|
$ |
1.10 |
|
Diluted
earnings per share |
$ |
0.03 |
|
|
$ |
2.17 |
|
|
$ |
0.35 |
|
|
$ |
0.51 |
|
|
$ |
0.57 |
|
|
$ |
2.21 |
|
|
$ |
1.10 |
|
Stockholders' equity / total assets |
|
7.16 |
% |
|
|
7.32 |
% |
|
|
6.99 |
% |
|
|
5.70 |
% |
|
|
6.33 |
% |
|
|
7.16 |
% |
|
|
6.33 |
% |
Book value
per share |
$ |
34.45 |
|
|
$ |
35.17 |
|
|
$ |
34.28 |
|
|
$ |
27.68 |
|
|
$ |
31.77 |
|
|
$ |
34.45 |
|
|
$ |
31.77 |
|
Closing
stock price |
$ |
24.52 |
|
|
$ |
24.60 |
|
|
$ |
25.24 |
|
|
$ |
22.00 |
|
|
$ |
22.00 |
|
|
$ |
24.52 |
|
|
$ |
22.00 |
|
Price to
earnings per share ratio |
|
182.60 |
|
|
|
2.82 |
|
|
|
17.77 |
|
|
|
10.67 |
|
|
|
9.59 |
|
|
|
5.54 |
|
|
|
9.99 |
|
Dividend
declared per common share |
$ |
0.12 |
|
|
$ |
0.12 |
|
|
$ |
0.12 |
|
|
$ |
0.31 |
|
|
$ |
0.31 |
|
|
$ |
0.24 |
|
|
$ |
0.62 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common
equity tier 1 capital to risk-weighted assets |
|
10.94 |
% |
|
|
10.89 |
% |
|
|
10.43 |
% |
|
|
10.17 |
% |
|
|
10.00 |
% |
|
|
10.94 |
% |
|
|
10.00 |
% |
Tier 1
capital to risk-weighted assets |
|
10.94 |
% |
|
|
10.89 |
% |
|
|
10.43 |
% |
|
|
10.17 |
% |
|
|
10.00 |
% |
|
|
10.94 |
% |
|
|
10.00 |
% |
Total
capital to risk-weighted assets |
|
11.95 |
% |
|
|
11.92 |
% |
|
|
11.36 |
% |
|
|
11.12 |
% |
|
|
10.96 |
% |
|
|
11.95 |
% |
|
|
10.96 |
% |
Tier 1
capital to adjusted average assets |
|
8.32 |
% |
|
|
8.24 |
% |
|
|
7.78 |
% |
|
|
7.81 |
% |
|
|
7.58 |
% |
|
|
8.32 |
% |
|
|
7.58 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Performance Ratios |
Quarter ended, |
|
Six Months Ended |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
June 30, |
|
March 31, |
|
December 31, |
September 30, |
June 30, |
|
June 30, |
|
June 30, |
|
|
2024 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Net interest
margin - tax equivalent |
|
2.67 |
% |
|
|
2.57 |
% |
|
|
2.80 |
% |
|
|
2.87 |
% |
|
|
3.03 |
% |
|
|
2.62 |
% |
|
|
3.13 |
% |
Tangible
book value per diluted share |
$ |
28.67 |
|
|
$ |
29.30 |
|
|
$ |
28.31 |
|
|
$ |
21.63 |
|
|
$ |
25.64 |
|
|
$ |
28.67 |
|
|
$ |
25.64 |
|
Tangible
book value per diluted share adjusted for AOCI |
$ |
42.33 |
|
|
$ |
42.36 |
|
|
$ |
40.31 |
|
|
$ |
39.96 |
|
|
$ |
39.62 |
|
|
$ |
42.33 |
|
|
$ |
39.62 |
|
Tangible
common equity to total assets |
|
5.95 |
% |
|
|
6.09 |
% |
|
|
5.77 |
% |
|
|
4.46 |
% |
|
|
5.11 |
% |
|
|
5.95 |
% |
|
|
5.11 |
% |
Tangible
common equity to total assets adjusted for AOCI |
|
8.79 |
% |
|
|
8.81 |
% |
|
|
8.22 |
% |
|
|
8.23 |
% |
|
|
7.89 |
% |
|
|
8.79 |
% |
|
|
7.89 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended |
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands) |
Average Balances, Interest, and Rates |
|
(unaudited) |
June 30, 2024 |
|
March 31, 2024 |
|
|
Average Balance |
|
Interest |
|
Rate (%) |
|
Average Balance |
|
Interest |
|
Rate (%) |
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
Interest bearing deposits in other financial institutions |
$ |
60,378 |
|
|
$ |
799 |
|
5.29 |
|
$ |
68,935 |
|
|
$ |
853 |
|
|
4.95 |
|
Federal funds sold |
|
1,263 |
|
|
|
10 |
|
3.17 |
|
|
814 |
|
|
|
10 |
|
|
4.91 |
|
Securities available-for-sale |
|
337,226 |
|
|
|
2,047 |
|
2.43 |
|
|
365,194 |
|
|
|
2,161 |
|
|
2.37 |
|
Loans receivable |
|
1,501,584 |
|
|
|
19,174 |
|
5.11 |
|
|
1,504,011 |
|
|
|
18,879 |
|
|
5.02 |
|
Federal Home Loan Bank stock |
|
6,547 |
|
|
|
96 |
|
5.87 |
|
|
6,547 |
|
|
|
82 |
|
|
5.01 |
|
Total interest earning assets |
|
1,906,998 |
|
|
$ |
22,126 |
|
4.64 |
|
|
1,945,501 |
|
|
$ |
21,985 |
|
|
4.52 |
|
Cash and non-interest bearing deposits in other financial
institutions |
|
18,054 |
|
|
|
|
|
|
|
18,230 |
|
|
|
|
|
|
Allowance for credit losses |
|
(18,788 |
) |
|
|
|
|
|
|
(18,743 |
) |
|
|
|
|
|
Other noninterest bearing assets |
|
158,358 |
|
|
|
|
|
|
|
151,945 |
|
|
|
|
|
|
Total assets |
$ |
2,064,622 |
|
|
|
|
|
|
$ |
2,096,933 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits |
$ |
1,455,007 |
|
|
$ |
8,610 |
|
2.37 |
|
$ |
1,487,771 |
|
|
$ |
8,794 |
|
|
2.36 |
|
Repurchase agreements |
|
41,388 |
|
|
|
399 |
|
3.86 |
|
|
38,151 |
|
|
|
370 |
|
|
3.88 |
|
Borrowed funds |
|
85,940 |
|
|
|
1,022 |
|
4.76 |
|
|
90,053 |
|
|
|
1,040 |
|
|
4.62 |
|
Total interest bearing liabilities |
|
1,582,335 |
|
|
$ |
10,031 |
|
2.54 |
|
|
1,615,975 |
|
|
$ |
10,204 |
|
|
2.53 |
|
Non-interest bearing deposits |
|
291,618 |
|
|
|
|
|
|
|
294,398 |
|
|
|
|
|
|
Other noninterest bearing liabilities |
|
45,029 |
|
|
|
|
|
|
|
37,897 |
|
|
|
|
|
|
Total liabilities |
|
1,918,982 |
|
|
|
|
|
|
|
1,948,270 |
|
|
|
|
|
|
Total stockholders' equity |
|
145,640 |
|
|
|
|
|
|
|
148,663 |
|
|
|
|
|
|
Total liabilities and stockholders'
equity |
$ |
2,064,622 |
|
|
|
|
|
|
|
$ |
2,096,933 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets |
|
0.03 |
% |
|
|
|
|
|
|
1.77 |
% |
|
|
|
|
|
Return on average equity |
|
0.39 |
% |
|
|
|
|
|
|
24.97 |
% |
|
|
|
|
|
Net interest margin (average earning assets) |
|
2.54 |
% |
|
|
|
|
|
|
|
2.42 |
% |
|
|
|
|
|
|
Net interest margin (average earning assets) - tax equivalent |
|
2.67 |
% |
|
|
|
|
|
|
2.57 |
% |
|
|
|
|
|
Net interest spread |
|
2.11 |
% |
|
|
|
|
|
|
1.99 |
% |
|
|
|
|
|
|
Ratio of interest-earning assets to interest-bearing
liabilities |
1.21x |
|
|
|
|
|
1.20x |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year-to-Date |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands) |
Average Balances, Interest, and Rates |
|
|
|
(unaudited) |
June 30, 2024 |
|
June 30, 2023 |
|
|
|
|
Average Balance |
|
Interest |
|
Rate (%) |
|
Average Balance |
|
Interest |
|
Rate (%) |
|
|
|
ASSETS |
|
|
` |
|
|
|
|
|
|
|
|
|
|
|
Interest
bearing deposits in other financial institutions |
$ |
64,657 |
|
|
$ |
1,652 |
|
5.11 |
|
$ |
30,140 |
|
|
$ |
765 |
|
5.08 |
|
|
|
|
Federal
funds sold |
|
1,039 |
|
|
|
20 |
|
3.85 |
|
|
1,275 |
|
|
|
27 |
|
4.24 |
|
|
|
|
Certificates
of deposit in other financial institutions |
|
- |
|
|
|
- |
|
- |
|
|
1,762 |
|
|
|
31 |
|
3.52 |
|
|
|
|
Securities
available-for-sale |
|
351,210 |
|
|
|
4,208 |
|
2.40 |
|
|
373,413 |
|
|
|
4,440 |
|
2.38 |
|
|
|
|
Loans
receivable |
|
1,502,798 |
|
|
|
38,053 |
|
5.06 |
|
|
1,516,689 |
|
|
|
36,320 |
|
4.79 |
|
|
|
|
Federal Home
Loan Bank stock |
|
6,547 |
|
|
|
178 |
|
5.44 |
|
|
6,547 |
|
|
|
166 |
|
5.07 |
|
|
|
|
Total
interest earning assets |
|
1,926,251 |
|
|
$ |
44,111 |
|
4.58 |
|
|
1,929,826 |
|
|
$ |
41,749 |
|
4.33 |
|
|
|
|
Cash and
non-interest bearing deposits in other financial institutions |
|
18,142 |
|
|
|
|
|
|
|
18,523 |
|
|
|
|
|
|
|
|
Allowance
for credit losses |
|
(18,765 |
) |
|
|
|
|
|
|
(16,569 |
) |
|
|
|
|
|
|
|
Other
noninterest bearing assets |
|
155,147 |
|
|
|
|
|
|
|
154,227 |
|
|
|
|
|
|
|
|
Total assets |
$ |
2,080,775 |
|
|
|
|
|
|
$ |
2,086,007 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES
AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits |
$ |
1,471,389 |
|
|
$ |
17,404 |
|
2.37 |
|
$ |
1,457,235 |
|
|
$ |
10,192 |
|
1.40 |
|
|
|
|
Repurchase
agreements |
|
39,769 |
|
|
|
769 |
|
3.87 |
|
|
26,635 |
|
|
|
451 |
|
3.39 |
|
|
|
|
Borrowed
funds |
|
87,996 |
|
|
|
2,062 |
|
4.69 |
|
|
103,465 |
|
|
|
2,399 |
|
4.64 |
|
|
|
|
Total
interest bearing liabilities |
|
1,599,154 |
|
|
$ |
20,235 |
|
2.53 |
|
|
1,587,335 |
|
|
$ |
13,042 |
|
1.64 |
|
|
|
|
Non-interest
bearing deposits |
|
293,008 |
|
|
|
|
|
|
|
331,690 |
|
|
|
|
|
|
|
|
Other
noninterest bearing liabilities |
|
41,461 |
|
|
|
|
|
|
|
28,066 |
|
|
|
|
|
|
|
|
Total liabilities |
|
1,933,623 |
|
|
|
|
|
|
|
1,947,091 |
|
|
|
|
|
|
|
|
Total stockholders' equity |
|
147,152 |
|
|
|
|
|
|
|
138,916 |
|
|
|
|
|
|
|
|
Total liabilities and stockholders'
equity |
$ |
2,080,775 |
|
|
|
|
|
|
$ |
2,086,007 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on
average assets |
|
0.91 |
% |
|
|
|
|
|
|
0.45 |
% |
|
|
|
|
|
|
|
Return on
average equity |
|
12.81 |
% |
|
|
|
|
|
|
6.74 |
% |
|
|
|
|
|
|
|
Net
interest margin (average earning assets) |
|
2.48 |
% |
|
|
|
|
|
|
|
2.98 |
% |
|
|
|
|
|
|
|
|
|
Net
interest margin (average earning assets) - tax equivalent |
|
2.62 |
% |
|
|
|
|
|
|
3.13 |
% |
|
|
|
|
|
|
|
Net
interest spread |
|
2.05 |
% |
|
|
|
|
|
|
2.69 |
% |
|
|
|
|
|
|
|
|
Ratio of
interest-earning assets to interest-bearing liabilities |
1.20x |
|
|
|
|
|
1.01x |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Finward Bancorp |
|
|
|
|
Quarterly Financial Report |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance Sheet Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands) |
|
|
|
|
(Unaudited) |
|
(Unaudited) |
|
|
|
(Unaudited) |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
June 30, |
|
March 31, |
|
December 31, |
September 30, |
June 30, |
|
|
|
|
|
|
|
|
|
|
2024 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and non-interest bearing deposits in other financial
institutions |
|
$ |
19,061 |
|
|
$ |
16,418 |
|
|
$ |
17,942 |
|
|
$ |
17,922 |
|
|
$ |
23,210 |
|
|
|
|
|
Interest bearing deposits in other financial institutions |
|
|
63,439 |
|
|
|
54,755 |
|
|
|
67,647 |
|
|
|
52,875 |
|
|
|
89,706 |
|
|
|
|
|
Federal funds sold |
|
|
|
|
|
707 |
|
|
|
607 |
|
|
|
419 |
|
|
|
851 |
|
|
|
2,757 |
|
|
|
|
|
Total cash and cash equivalents |
|
|
83,207 |
|
|
|
71,780 |
|
|
|
86,008 |
|
|
|
71,648 |
|
|
|
115,673 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities available-for-sale |
|
|
|
|
339,585 |
|
|
|
346,233 |
|
|
|
371,374 |
|
|
|
339,280 |
|
|
|
368,136 |
|
|
|
|
|
Loans held-for-sale |
|
|
|
|
|
1,185 |
|
|
|
667 |
|
|
|
340 |
|
|
|
2,057 |
|
|
|
1,832 |
|
|
|
|
|
Loans receivable, net of deferred fees and costs |
|
|
1,506,398 |
|
|
|
1,508,251 |
|
|
|
1,512,595 |
|
|
|
1,525,660 |
|
|
|
1,534,161 |
|
|
|
|
|
Less: allowance for credit losses |
|
|
|
(18,330 |
) |
|
|
(18,805 |
) |
|
|
(18,768 |
) |
|
|
(19,430 |
) |
|
|
(19,507 |
) |
|
|
|
|
Net loans receivable |
|
|
|
|
|
1,488,068 |
|
|
|
1,489,446 |
|
|
|
1,493,827 |
|
|
|
1,506,230 |
|
|
|
1,514,654 |
|
|
|
|
|
Federal Home Loan Bank stock |
|
|
|
6,547 |
|
|
|
6,547 |
|
|
|
6,547 |
|
|
|
6,547 |
|
|
|
6,547 |
|
|
|
|
|
Accrued interest receivable |
|
|
|
|
7,695 |
|
|
|
7,583 |
|
|
|
8,045 |
|
|
|
7,864 |
|
|
|
7,714 |
|
|
|
|
|
Premises and equipment |
|
|
|
|
48,696 |
|
|
|
47,795 |
|
|
|
38,436 |
|
|
|
38,810 |
|
|
|
39,204 |
|
|
|
|
|
Foreclosed real estate |
|
|
|
|
|
- |
|
|
|
71 |
|
|
|
71 |
|
|
|
71 |
|
|
|
71 |
|
|
|
|
|
Cash value of bank owned life insurance |
|
|
33,107 |
|
|
|
32,895 |
|
|
|
32,702 |
|
|
|
32,509 |
|
|
|
32,316 |
|
|
|
|
|
Goodwill |
|
|
|
|
|
22,395 |
|
|
|
22,395 |
|
|
|
22,395 |
|
|
|
22,395 |
|
|
|
22,395 |
|
|
|
|
|
Other intangible assets |
|
|
|
|
|
2,555 |
|
|
|
2,911 |
|
|
|
3,272 |
|
|
|
3,636 |
|
|
|
4,015 |
|
|
|
|
|
Other assets |
|
|
|
|
|
44,027 |
|
|
|
43,459 |
|
|
|
45,262 |
|
|
|
56,423 |
|
|
|
48,661 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
|
|
|
$ |
2,077,067 |
|
|
$ |
2,071,782 |
|
|
$ |
2,108,279 |
|
|
$ |
2,087,470 |
|
|
$ |
2,161,218 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest bearing |
|
|
|
|
$ |
286,784 |
|
|
$ |
296,959 |
|
|
$ |
295,594 |
|
|
$ |
312,635 |
|
|
$ |
315,671 |
|
|
|
|
|
Interest bearing |
|
|
|
|
|
1,469,970 |
|
|
|
1,450,519 |
|
|
|
1,517,827 |
|
|
|
1,471,402 |
|
|
|
1,479,476 |
|
|
|
|
|
Total |
|
|
|
|
|
1,756,754 |
|
|
|
1,747,478 |
|
|
|
1,813,421 |
|
|
|
1,784,037 |
|
|
|
1,795,147 |
|
|
|
|
|
Repurchase agreements |
|
|
|
|
42,973 |
|
|
|
41,137 |
|
|
|
38,124 |
|
|
|
48,310 |
|
|
|
46,402 |
|
|
|
|
|
Borrowed funds |
|
|
|
|
|
85,000 |
|
|
|
90,000 |
|
|
|
80,000 |
|
|
|
100,000 |
|
|
|
150,000 |
|
|
|
|
|
Accrued expenses and other liabilities |
|
|
43,709 |
|
|
|
41,586 |
|
|
|
29,389 |
|
|
|
36,080 |
|
|
|
32,919 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities |
|
|
|
|
|
1,928,436 |
|
|
|
1,920,201 |
|
|
|
1,960,934 |
|
|
|
1,968,427 |
|
|
|
2,024,468 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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: June 30, 2024 -
4,313,940 |
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2023 -
4,298,773 |
|
|
|
|
|
|
|
|
|
|
|
|
Additional paid-in capital |
|
|
|
|
69,778 |
|
|
|
69,727 |
|
|
|
69,555 |
|
|
|
69,482 |
|
|
|
69,384 |
|
|
|
|
|
Accumulated other comprehensive loss |
|
|
(58,939 |
) |
|
|
(56,313 |
) |
|
|
(51,613 |
) |
|
|
(78,848 |
) |
|
|
(60,185 |
) |
|
|
|
|
Retained earnings |
|
|
|
|
|
137,792 |
|
|
|
138,167 |
|
|
|
129,403 |
|
|
|
128,409 |
|
|
|
127,551 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total stockholders' equity |
|
|
|
|
148,631 |
|
|
|
151,581 |
|
|
|
147,345 |
|
|
|
119,043 |
|
|
|
136,750 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and stockholders'
equity |
|
$ |
2,077,067 |
|
|
$ |
2,071,782 |
|
|
$ |
2,108,279 |
|
|
$ |
2,087,470 |
|
|
$ |
2,161,218 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Finward Bancorp |
|
Quarterly Financial Report |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Statements of Income |
|
Quarter Ended, |
|
|
Six months ended, |
|
(Dollars in thousands) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
|
(Unaudited) |
|
(Unaudited) |
|
|
|
June 30, |
|
March 31, |
|
December 31, |
September 30, |
June 30, |
|
|
June 30, |
|
June 30, |
|
|
|
|
2024 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
|
2024 |
|
|
|
2023 |
|
|
Interest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans |
|
$ |
19,174 |
|
|
$ |
18,879 |
|
|
$ |
19,281 |
|
|
$ |
19,161 |
|
|
$ |
18,694 |
|
|
|
$ |
38,053 |
|
|
$ |
36,320 |
|
|
Securities & short-term investments |
|
|
2,953 |
|
|
|
3,105 |
|
|
|
2,975 |
|
|
|
2,617 |
|
|
|
2,919 |
|
|
|
|
6,058 |
|
|
|
5,429 |
|
|
Total interest income |
|
|
22,127 |
|
|
|
21,984 |
|
|
|
22,256 |
|
|
|
21,778 |
|
|
|
21,613 |
|
|
|
|
44,111 |
|
|
|
41,749 |
|
|
Interest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
8,610 |
|
|
|
8,794 |
|
|
|
8,180 |
|
|
|
7,066 |
|
|
|
6,105 |
|
|
|
|
17,404 |
|
|
|
10,192 |
|
|
Borrowings |
|
|
1,463 |
|
|
|
1,410 |
|
|
|
1,361 |
|
|
|
1,579 |
|
|
|
1,469 |
|
|
|
|
2,873 |
|
|
|
2,850 |
|
|
Total interest expense |
|
|
10,073 |
|
|
|
10,204 |
|
|
|
9,541 |
|
|
|
8,645 |
|
|
|
7,574 |
|
|
|
|
20,277 |
|
|
|
13,042 |
|
|
Net interest income |
|
|
12,054 |
|
|
|
11,780 |
|
|
|
12,715 |
|
|
|
13,133 |
|
|
|
14,039 |
|
|
|
|
23,834 |
|
|
|
28,707 |
|
|
Provision for credit losses |
|
|
76 |
|
|
|
- |
|
|
|
779 |
|
|
|
244 |
|
|
|
514 |
|
|
|
|
76 |
|
|
|
1,002 |
|
|
Net interest income after provision for credit losses |
|
|
11,978 |
|
|
|
11,780 |
|
|
|
11,936 |
|
|
|
12,889 |
|
|
|
13,525 |
|
|
|
|
23,758 |
|
|
|
27,705 |
|
|
Noninterest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fees and service charges |
|
|
1,257 |
|
|
|
1,153 |
|
|
|
1,507 |
|
|
|
1,374 |
|
|
|
1,832 |
|
|
|
|
2,410 |
|
|
|
3,143 |
|
|
Wealth management operations |
|
|
763 |
|
|
|
633 |
|
|
|
672 |
|
|
|
572 |
|
|
|
626 |
|
|
|
|
1,396 |
|
|
|
1,240 |
|
|
Gain on sale of loans held-for-sale, net |
|
|
320 |
|
|
|
152 |
|
|
|
352 |
|
|
|
192 |
|
|
|
274 |
|
|
|
|
472 |
|
|
|
537 |
|
|
Increase in cash value of bank owned life insurance |
|
212 |
|
|
|
193 |
|
|
|
193 |
|
|
|
193 |
|
|
|
201 |
|
|
|
|
405 |
|
|
|
380 |
|
|
Gain (loss) on sale of real estate |
|
|
15 |
|
|
|
11,858 |
|
|
|
- |
|
|
|
2 |
|
|
|
(15 |
) |
|
|
|
11,873 |
|
|
|
(15 |
) |
|
Loss on sale of securities, net |
|
|
- |
|
|
|
(531 |
) |
|
|
- |
|
|
|
- |
|
|
|
(48 |
) |
|
|
|
(531 |
) |
|
|
(48 |
) |
|
Other |
|
|
6 |
|
|
|
17 |
|
|
|
11 |
|
|
|
64 |
|
|
|
136 |
|
|
|
|
24 |
|
|
|
377 |
|
|
Total noninterest income |
|
|
2,573 |
|
|
|
13,475 |
|
|
|
2,735 |
|
|
|
2,397 |
|
|
|
3,006 |
|
|
|
|
16,049 |
|
|
|
5,614 |
|
|
Noninterest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and benefits |
|
|
7,037 |
|
|
|
7,109 |
|
|
|
6,290 |
|
|
|
6,729 |
|
|
|
7,098 |
|
|
|
|
14,146 |
|
|
|
14,636 |
|
|
Occupancy and equipment |
|
|
2,120 |
|
|
|
1,915 |
|
|
|
1,520 |
|
|
|
1,711 |
|
|
|
1,636 |
|
|
|
|
4,035 |
|
|
|
3,326 |
|
|
Data processing |
|
|
1,135 |
|
|
|
1,170 |
|
|
|
1,269 |
|
|
|
1,085 |
|
|
|
1,407 |
|
|
|
|
2,305 |
|
|
|
2,380 |
|
|
Federal deposit insurance premiums |
|
|
397 |
|
|
|
501 |
|
|
|
492 |
|
|
|
474 |
|
|
|
572 |
|
|
|
|
898 |
|
|
|
1,037 |
|
|
Marketing |
|
|
212 |
|
|
|
158 |
|
|
|
191 |
|
|
|
235 |
|
|
|
159 |
|
|
|
|
370 |
|
|
|
414 |
|
|
Other |
|
|
3,516 |
|
|
|
4,151 |
|
|
|
3,755 |
|
|
|
3,259 |
|
|
|
3,123 |
|
|
|
|
7,667 |
|
|
|
6,429 |
|
|
Total noninterest expense |
|
|
14,417 |
|
|
|
15,004 |
|
|
|
13,517 |
|
|
|
13,493 |
|
|
|
13,995 |
|
|
|
|
29,421 |
|
|
|
28,222 |
|
|
Income before income taxes |
|
|
134 |
|
|
|
10,251 |
|
|
|
1,154 |
|
|
|
1,793 |
|
|
|
2,536 |
|
|
|
|
10,386 |
|
|
|
5,097 |
|
|
Income tax expenses (benefit) |
|
|
(9 |
) |
|
|
972 |
|
|
|
(356 |
) |
|
|
(398 |
) |
|
|
98 |
|
|
|
|
963 |
|
|
|
419 |
|
|
Net income |
|
$ |
143 |
|
|
$ |
9,279 |
|
|
$ |
1,510 |
|
|
$ |
2,191 |
|
|
$ |
2,438 |
|
|
|
$ |
9,423 |
|
|
$ |
4,678 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.03 |
|
|
$ |
2.18 |
|
|
$ |
0.36 |
|
|
$ |
0.52 |
|
|
$ |
0.57 |
|
|
|
$ |
2.21 |
|
|
$ |
1.10 |
|
|
Diluted |
|
$ |
0.03 |
|
|
$ |
2.17 |
|
|
$ |
0.35 |
|
|
$ |
0.51 |
|
|
$ |
0.57 |
|
|
|
$ |
2.21 |
|
|
$ |
1.10 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Finward Bancorp |
|
Quarterly Financial Report |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Quality |
|
(Unaudited) |
|
(Unaudited) |
|
|
|
(Unaudited) |
|
(Unaudited) |
|
(Dollars in thousands) |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
|
|
|
|
|
2024 |
|
2024 |
|
2023 |
|
2023 |
|
2023 |
|
Nonaccruing loans |
|
$ |
11,079 |
|
|
$ |
11,603 |
|
|
$ |
9,608 |
|
|
$ |
9,840 |
|
$ |
12,071 |
|
Accruing loans delinquent more than 90 days |
|
|
294 |
|
|
|
215 |
|
|
|
1,843 |
|
|
|
233 |
|
|
255 |
|
Securities in non-accrual |
|
|
1,371 |
|
|
|
1,442 |
|
|
|
1,357 |
|
|
|
1,155 |
|
|
1,075 |
|
Foreclosed real estate |
|
|
- |
|
|
|
71 |
|
|
|
71 |
|
|
|
71 |
|
|
61 |
|
|
Total nonperforming assets |
|
$ |
12,744 |
|
|
$ |
13,331 |
|
|
$ |
12,879 |
|
|
$ |
11,299 |
|
$ |
13,462 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit losses (ACL): |
|
|
|
|
|
|
|
|
|
|
|
|
ACL specific allowances for collateral dependent loans |
|
$ |
1,327 |
|
|
$ |
1,455 |
|
|
$ |
906 |
|
|
$ |
554 |
|
$ |
717 |
|
|
ACL general allowances for loan portfolio |
|
|
17,003 |
|
|
|
17,351 |
|
|
|
17,862 |
|
|
|
18,876 |
|
|
18,790 |
|
|
|
Total ACL |
|
$ |
18,330 |
|
|
$ |
18,806 |
|
|
$ |
18,768 |
|
|
$ |
19,430 |
|
$ |
19,507 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited) |
|
Minimum Required To
Be |
|
|
|
|
|
|
|
|
|
|
June 30, |
|
Well Capitalized
Under |
|
|
|
|
|
|
|
|
|
|
|
2024 |
|
|
Prompt
Corrective |
|
|
|
|
|
|
|
|
|
|
Actual Ratio |
|
Action Regulations |
|
|
|
|
|
Capital Adequacy Bank |
|
|
|
|
|
|
|
|
|
|
|
Common equity tier 1 capital to risk-weighted assets |
|
|
10.94 |
% |
|
|
|
|
|
|
6.50 |
% |
|
|
|
|
|
Tier 1 capital to risk-weighted assets |
|
|
10.94 |
% |
|
|
|
|
|
|
8.00 |
% |
|
|
|
|
|
Total capital to risk-weighted assets |
|
|
11.95 |
% |
|
|
|
|
|
|
10.00 |
% |
|
|
|
|
|
Tier 1 capital to adjusted average assets |
|
|
8.32 |
% |
|
|
|
|
|
|
5.00 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 1 - Reconciliation of the Non-GAAP Performance Measures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands) |
Quarter Ended, |
|
Six months ended, |
|
(unaudited) |
June 30, 2024 |
|
March 31, 2024 |
|
December 31, 2023 |
|
September 30, 2023 |
|
June 30, 2023 |
|
June 30, 2024 |
|
June 30, 2023 |
|
Calculation of tangible common equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total stockholder's equity |
$ |
148,631 |
|
|
$ |
151,581 |
|
|
$ |
147,345 |
|
|
$ |
119,043 |
|
|
$ |
136,750 |
|
|
$ |
148,631 |
|
|
$ |
136,750 |
|
|
Goodwill |
|
(22,395 |
) |
|
|
(22,395 |
) |
|
|
(22,395 |
) |
|
|
(22,395 |
) |
|
|
(22,395 |
) |
|
|
(22,395 |
) |
|
|
(22,395 |
) |
|
Other intangibles |
|
(2,555 |
) |
|
|
(2,911 |
) |
|
|
(3,272 |
) |
|
|
(3,636 |
) |
|
|
(4,015 |
) |
|
|
(2,555 |
) |
|
|
(4,015 |
) |
|
Tangible common equity |
$ |
123,681 |
|
|
$ |
126,275 |
|
|
$ |
121,678 |
|
|
$ |
93,012 |
|
|
$ |
110,340 |
|
|
$ |
123,681 |
|
|
$ |
110,340 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Calculation of tangible common equity adjusted for
accumulated other comprehensive loss |
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible common equity |
$ |
123,681 |
|
|
$ |
126,275 |
|
|
$ |
121,678 |
|
|
$ |
93,012 |
|
|
$ |
110,340 |
|
|
$ |
123,681 |
|
|
$ |
110,340 |
|
|
Accumulated other comprehensive loss |
|
58,939 |
|
|
|
56,313 |
|
|
|
51,613 |
|
|
|
78,848 |
|
|
|
60,185 |
|
|
|
58,939 |
|
|
|
60,185 |
|
|
Tangible common equity adjusted for accumulated other comprehensive
loss |
$ |
182,620 |
|
|
$ |
182,588 |
|
|
$ |
173,291 |
|
|
$ |
171,860 |
|
|
$ |
170,525 |
|
|
$ |
182,620 |
|
|
$ |
170,525 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Calculation of tangible book value per share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible common equity |
$ |
123,681 |
|
|
$ |
126,275 |
|
|
$ |
121,678 |
|
|
$ |
93,012 |
|
|
$ |
110,340 |
|
|
$ |
123,681 |
|
|
$ |
110,340 |
|
|
Shares outstanding |
|
4,313,940 |
|
|
|
4,310,251 |
|
|
|
4,298,773 |
|
|
|
4,300,881 |
|
|
|
4,303,766 |
|
|
|
4,313,940 |
|
|
|
4,303,766 |
|
|
Tangible book value per diluted share |
$ |
28.67 |
|
|
$ |
29.30 |
|
|
$ |
28.31 |
|
|
$ |
21.63 |
|
|
$ |
25.64 |
|
|
$ |
28.67 |
|
|
$ |
25.64 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Calculation of tangible book value per diluted share
adjusted for accumulated other comprehensive loss |
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible common equity adjusted for accumulated other comprehensive
loss |
$ |
182,620 |
|
|
$ |
182,588 |
|
|
$ |
173,291 |
|
|
$ |
171,860 |
|
|
$ |
170,525 |
|
|
$ |
182,620 |
|
|
$ |
170,525 |
|
|
Diluted average common shares outstanding |
|
4,313,940 |
|
|
|
4,310,251 |
|
|
|
4,298,773 |
|
|
|
4,300,881 |
|
|
|
4,303,766 |
|
|
|
4,313,940 |
|
|
|
4,303,766 |
|
|
Tangible book value per diluted share adjusted for accumulated
other comprehensive loss |
$ |
42.33 |
|
|
$ |
42.36 |
|
|
$ |
40.31 |
|
|
$ |
39.96 |
|
|
$ |
39.62 |
|
|
$ |
42.33 |
|
|
$ |
39.62 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Calculation of tangible common equity to total
assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible common equity |
$ |
123,681 |
|
|
$ |
126,275 |
|
|
$ |
121,678 |
|
|
$ |
93,012 |
|
|
$ |
110,340 |
|
|
$ |
123,681 |
|
|
$ |
110,340 |
|
|
Total assets |
|
2,077,067 |
|
|
|
2,071,782 |
|
|
|
2,108,279 |
|
|
|
2,087,470 |
|
|
|
2,161,218 |
|
|
|
2,077,067 |
|
|
|
2,161,218 |
|
|
Tangible common equity to total assets |
|
5.95 |
% |
|
|
6.09 |
% |
|
|
5.77 |
% |
|
|
4.46 |
% |
|
|
5.11 |
% |
|
|
5.95 |
% |
|
|
5.11 |
% |
|
Calculation of tangible common equity to total assets
adjusted for accumulated other comprehensive loss |
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible common equity adjusted for accumulated other comprehensive
loss |
$ |
182,620 |
|
|
$ |
182,588 |
|
|
$ |
173,291 |
|
|
$ |
171,860 |
|
|
$ |
170,525 |
|
|
$ |
182,620 |
|
|
$ |
170,525 |
|
|
Total assets |
|
2,077,067 |
|
|
|
2,071,782 |
|
|
|
2,108,279 |
|
|
|
2,087,470 |
|
|
|
2,161,218 |
|
|
|
2,077,067 |
|
|
|
2,161,218 |
|
|
Tangible common equity to total assets adjusted for accumulated
other comprehensive loss |
|
8.79 |
% |
|
|
8.81 |
% |
|
|
8.22 |
% |
|
|
8.23 |
% |
|
|
7.89 |
% |
|
|
8.79 |
% |
|
|
7.89 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Calculation of tax adjusted net interest
margin |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
$ |
12,054 |
|
|
$ |
11,780 |
|
|
$ |
12,715 |
|
|
$ |
13,133 |
|
|
$ |
14,039 |
|
|
$ |
23,834 |
|
|
$ |
28,707 |
|
|
Tax adjusted interest on securities and loans |
|
677 |
|
|
|
699 |
|
|
|
722 |
|
|
|
730 |
|
|
|
748 |
|
|
|
1,376 |
|
|
|
1,504 |
|
|
Adjusted net interest income |
|
12,731 |
|
|
|
12,749 |
|
|
|
13,437 |
|
|
|
13,863 |
|
|
|
14,787 |
|
|
|
25,210 |
|
|
|
30,211 |
|
|
Total average earning assets |
|
1,906,998 |
|
|
|
1,945,501 |
|
|
|
1,920,127 |
|
|
|
1,930,118 |
|
|
|
1,950,774 |
|
|
|
1,926,251 |
|
|
|
1,929,826 |
|
|
Tax adjusted net interest margin |
|
2.67 |
% |
|
|
2.57 |
% |
|
|
2.80 |
% |
|
|
2.87 |
% |
|
|
3.03 |
% |
|
|
2.62 |
% |
|
|
3.13 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total non-interest expense |
$ |
14,417 |
|
|
$ |
15,004 |
|
|
$ |
13,517 |
|
|
$ |
13,493 |
|
|
$ |
13,995 |
|
|
$ |
29,421 |
|
|
$ |
13,995 |
|
|
Total revenue |
|
14,627 |
|
|
|
25,255 |
|
|
|
15,450 |
|
|
|
15,530 |
|
|
|
17,045 |
|
|
|
39,883 |
|
|
|
17,045 |
|
|
Efficiency ratio |
|
98.56 |
% |
|
|
59.41 |
% |
|
|
87.49 |
% |
|
|
86.88 |
% |
|
|
82.11 |
% |
|
|
73.77 |
% |
|
|
82.11 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FOR FURTHER INFORMATIONCONTACT
SHAREHOLDER SERVICES(219) 853-7575
Finward Bancorp (NASDAQ:FNWD)
Gráfica de Acción Histórica
De Jun 2024 a Jul 2024
Finward Bancorp (NASDAQ:FNWD)
Gráfica de Acción Histórica
De Jul 2023 a Jul 2024