EX-99.1 2 ex_738934.htm EXHIBIT 99.1 ex_738934.htm

Exhibit 99.1

 

FOR IMMEDIATE RELEASE

OCTOBER 29, 2024

 

FOR FURTHER INFORMATION

CONTACT SHAREHOLDER SERVICES

(219) 853-7575

 

FINWARD BANCORP

ANNOUNCES EARNINGS FOR THE QUARTER AND NINE MONTHS ENDED

SEPTEMBER 30, 2024

 

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 $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:

 

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

 

Return on equity

    1.60 %     0.39 %     24.97 %     4.92 %     6.55 %     4.50 %     6.68 %

Return on assets

    0.12 %     0.03 %     1.77 %     0.29 %     0.42 %     0.64 %     0.44 %

Tax adjusted net interest margin

    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 %

Efficiency ratio

    97.32 %     98.56 %     59.41 %     87.49 %     86.88 %     80.16 %     83.68 %

 

“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 Measures

Reported amounts are presented in accordance with GAAP. In this press release, the Bancorp also provides certain financial measures identified as non-GAAP. The Bancorp’s management believes that the non-GAAP information, which consists of tangible common equity, tangible common equity adjusted for accumulated other comprehensive losses, tangible book value per share, tangible book value per share adjusted for accumulated other comprehensive losses, tangible common equity/total assets, tax-adjusted net interest margin, and efficiency ratio, which can vary from period to period, provides a better comparison of period to period operating performance. 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 Bancorp

Finward Bancorp is a locally managed and independent financial holding company headquartered in Munster, Indiana, whose activities are primarily limited to holding the stock of Peoples Bank. Peoples Bank provides a wide range of personal, business, electronic and wealth management financial services from its 26 locations in Lake and Porter Counties in Northwest Indiana and Chicagoland. Finward Bancorp’s common stock is quoted on The NASDAQ Stock Market, LLC under the symbol FNWD. The website ibankpeoples.com provides information on Peoples Bank’s products and services, and Finward Bancorp’s investor relations.

 

Forward Looking Statements

This press release may contain forward-looking statements regarding the financial performance, business prospects, growth and operating strategies of the Bancorp. For these statements, the Bancorp claims the protections of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Statements in this communication should be considered in conjunction with the other information available about the Bancorp, including the information in the filings the Bancorp makes with the SEC. Forward-looking statements provide current expectations or forecasts of future events and are not guarantees of future performance. The forward-looking statements are based on management’s expectations and are subject to a number of risks and uncertainties. Forward-looking statements are typically identified by using words such as “anticipate,” “estimate,” “project,” “intend,” “plan,” “believe,” “will” and similar expressions in connection with any discussion of future operating or financial performance.

 

Although management believes that the expectations reflected in such forward-looking statements are reasonable, actual results may differ materially from those expressed or implied in such statements. Risks and uncertainties that could cause actual results to differ materially include: 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,

   

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

 

Return on equity

    1.60 %     0.39 %     24.97 %     4.92 %     6.55 %     4.50 %     6.68 %

Return on assets

    0.12 %     0.03 %     1.77 %     0.29 %     0.42 %     0.64 %     0.44 %

Yield on loans

    5.22 %     5.11 %     5.02 %     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

    2.47 %     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

                                                       

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  
                                                         

Calculation of tangible common equity adjusted for accumulated other comprehensive loss

                                                 

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  
                                                         

Calculation of tangible book value per share

                                                       

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  
                                                         

Calculation of tangible book value per diluted share 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  

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  
                                                         

Calculation of tangible common equity to total assets

                                                       

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 %
                                                         

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 %
                                                         

Calculation of tax adjusted net interest margin

                                                       

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 %
                                                         

Efficiency ratio

                                                       

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 %