Finward Bancorp Announces Fourth Quarter 2025 Results

Key Terms

net interest margin financial

Net interest margin measures how much a bank earns from lending and investing compared with what it pays for funding, expressed as a percentage of its interest-earning assets. Think of it like a grocery store’s markup: it shows the gap between buying cost and selling price per dollar of goods — here, the cost is interest paid and the sale is interest received. Investors watch it because a higher margin usually means a bank is more profitable and better at managing interest rate and credit conditions.

tax-equivalent financial

Tax-equivalent expresses the pre-tax return a taxable investment must offer to match the after-tax return of a tax-advantaged investment, like municipal bonds. It lets investors compare different investments on an equal footing—think of converting two prices into the same currency so you can tell which is truly cheaper—so taxes don’t distort decisions about which yield is better for your portfolio.

non-performing loans financial

Loans on a bank’s books where the borrower has stopped making scheduled payments for a prolonged period (commonly about 90 days), so the lender no longer expects full repayment on time. Think of them as overdue IOUs that may never be paid back; a rising level of such loans weakens a lender’s earnings and balance sheet, signals greater credit risk in the economy, and can hurt investors through lower dividends, loan losses, or declines in the lender’s stock value.

allowance for credit losses financial

Allowance for credit losses is a reserve set aside by a financial institution to cover potential losses from borrowers who may not repay their loans. It acts like a safety net, helping the institution prepare for loans that might turn sour. For investors, it signals how cautious the institution is about the quality of its loans and potential risks to its financial health.

tier 1 leverage ratio financial

Tier 1 leverage ratio measures a bank’s core capital — the money that can absorb losses — as a share of its total assets, showing how much of its balance sheet is funded by real loss-absorbing capital rather than borrowed money. Investors use it like a safety gauge: a higher ratio means a bigger cushion against shocks and lower risk of insolvency, similar to how a thicker spare tire reduces the chance of being stranded.

tangible book value per share financial

Tangible book value per share is the company's total physical and financial assets minus its liabilities and intangible items (like goodwill and brand value), divided by the number of outstanding shares. It gives investors a conservative, per‑share estimate of what would remain if the business sold only its hard assets and paid its debts—useful for judging whether a stock is priced above or below its underlying, tangible worth, like valuing a property by its bricks and cash rather than its reputation.

memorandum of understanding regulatory

A memorandum of understanding (MOU) is a formal agreement between two or more parties that outlines their shared intentions and plans to work together. It acts like a handshake in writing, clarifying each side’s roles and expectations before any official contract is signed. For investors, an MOU signals that parties are serious about collaboration, which can influence future business opportunities and potential growth.

federal deposit insurance corporation regulatory

A U.S. government agency that insures customer deposits at member banks up to a set limit, acting like a safety net so people don’t lose their cash if a bank fails. It matters to investors because it helps maintain confidence in the banking system, reduces the chance of sudden withdrawals or bank runs, and can influence the stability and share prices of banks and financial markets.

MUNSTER, Ind.--(BUSINESS WIRE)-- Finward Bancorp (Nasdaq: FNWD) (the “Bancorp”), the holding company for Peoples Bank (the “Bank”), today announced that net income available to common stockholders was $2.0 million, or $0.46 per diluted share, for the quarter ended December 31, 2025, as compared to $3.5 million, or $0.81 per diluted share, for the quarter ended September 30, 2025. Selected performance metrics are as follows for the periods presented:

Performance Ratios
	Quarter ended
	12/31/2025		9/30/2025		6/30/2025		3/31/2025		12/31/2024
Return on equity	4.66%		8.96%		5.66%		1.17%		5.39%
Return on assets	0.39%		0.68%		0.42%		0.09%		0.41%
Net interest margin, tax-equivalent (non-GAAP)	3.32%		3.18%		3.11%		2.95%		2.79%
Non-interest income/average assets	0.29%		0.57%		0.53%		0.43%		0.72%
Non-interest expense/average assets	2.90%		2.74%		2.90%		2.81%		2.75%
Efficiency ratio	89.50%		81.22%		88.92%		93.11%		87.20%

“Operational results were significantly stronger in 2025 than 2024, reflecting the execution of successful strategic initiatives that have strengthened our organization over that time. While we continue to aim higher, these results reflect the hard work our team has put in throughout the year, " said Benjamin Bochnowski, CEO. "Actions taken in the fourth quarter are expected to further enhance our financial position, including steps to optimize our balance sheet, reduce risk, increase net interest margin, and improve efficiency. This included a small securities repositioning, where the Bank sold $26.6 million in primarily municipal securities, generating a $1.6 million pre-tax reduction to our posted fourth quarter results. Credit quality also remains stable, and the current rate environment remains supportive of continued progress in operational results in 2026."

Highlights of the current period include:

• Net Interest Margin - The net interest margin for the quarter ended December 31, 2025 was 3.18% compared to 3.04% for the quarter ended September 30, 2025. Net interest margin on a tax-equivalent basis (a non-GAAP measure) for the quarter ended December 31, 2025 was 3.32%, as compared to 3.18% for the quarter ended September 30, 2025. The increased net interest margin from the prior quarter is primarily the result of increased loan yields from loan repricing, as well as reduced deposit costs as a result of the Federal Reserve's continued reduction of federal funds rates during the quarter.
• Funding - As of December 31, 2025, deposits totaled $1.7 billion, a decrease of $23.7 million, or 1.4% compared with September 30, 2025 balances, which totaled $1.8 billion. As of December 31, 2025, non-interest-bearing deposits totaled $267.4 million, a decrease of $12.9 million. Core deposits totaled $1.2 billion at both December 31, 2025 and September 30, 2025. Core deposits include checking, savings, and money market accounts and represented 71.1% of the Bancorp’s total deposits at December 31, 2025. As of December 31, 2025, balances for certificates of deposit totaled $499.6 million, compared to $536.7 million on September 30, 2025, a decrease of $37.1 million or 6.9%. As of December 31, 2025, the Bank has no remaining brokered deposits. The decrease in total portfolio deposits is primarily related to cyclical flows, maturity of $20 million in brokered deposits, and continued adjustments to deposit pricing. In addition, as of December 31, 2025, borrowings and repurchase agreements totaled $84.7 million, a decrease of $18.7 million or 18.1%, compared to September 30, 2025. The decrease in borrowings was the result of certain called putable FHLB advances occurring during the quarter.

As of December 31, 2025, 71.8% of our deposits are fully FDIC insured, and another 7.3% are further backed by the Indiana Public Deposit Insurance Fund. The Bancorp’s liquidity position remains strong with solid core deposit customer relationships, excess cash, debt securities, contractual loan repayments, and access to diversified borrowing sources. As of December 31, 2025, the Bancorp had available liquidity of $674 million including borrowing capacity from the FHLB and Federal Reserve facilities.

• Securities Portfolio - Securities available for sale balances decreased by $18.9 million to $316.2 million as of December 31, 2025, compared to $335.2 million as of September 30, 2025. The yield on the securities portfolio decreased to 2.29% for the three months ended December 31, 2025 from 2.40% for the three months ended September 30, 2025. During the fourth quarter, the Bank incurred $1.6 million in securities losses, attributable to the execution of securities repositioning transactions where the Bank sold securities with a market value of $26.6 million and an unadjusted book yield of 2.59%.
• Lending - The Bank’s aggregate loan portfolio totaled $1.45 billion on December 31, 2025 and $1.47 billion on September 30, 2025. During the three months ended December 31, 2025, the Bank originated $68.9 million in new commercial loans, compared to $62.6 million during the three months ended September 30, 2025. At December 31, 2025, the Bancorp’s portfolio loan balances in commercial real estate owner occupied properties totaled $253.5 million or 17.4% of total loan balances and commercial real estate non-owner occupied properties totaled $302.1 million or 20.9% of total loan balances. Of the $302.1 million in commercial real estate non-owner occupied properties balances, loans collateralized by office buildings represented $42.1 million or 2.9% of total loan balances. The decrease in total portfolio loans is primarily due to customer loan payoffs experienced during the quarter.
• Asset Quality - At December 31, 2025, non-performing loans totaled $11.9 million, compared to $13.9 million at September 30, 2025, a decrease of $2.0 million or 14.3%. The Bank’s ratio of non-performing loans to total loans was 0.82% at December 31, 2025, compared to 0.94% at September 30, 2025. The Bank’s ratio of non-performing assets to total assets was 0.68% at December 31, 2025 and 0.76% at September 30, 2025. Management maintains a vigilant oversight of nonperforming loans through proactive relationship management. The Bank has no known credit exposures to non-depositary financial institutions at this time.

The allowance for credit losses (ACL) on loans totaled $17.5 million at December 31, 2025, or 1.21% of total loans receivable, compared to $18.0 million at September 30, 2025, or 1.22% of total loans receivable, a decrease of $471 thousand or 2.62%. The Bank's unused commitment reserve, included in other liabilities, totaled $1.8 million at December 31, 2025, compared to $1.7 million at September 30, 2025, an increase of $86 thousand or 5.2%.

For the quarter ended December 31, 2025, the Bank recorded a net benefit from credit loss totaling $84 thousand based on lower loan impairments, reduction of certain loan segment balances, and other factors within the Bank's ACL modeling. The fourth quarter's benefit consisted of a $170 thousand reversal for credit losses on loans, and a $86 thousand provision of credit losses on unused commitments. For the quarter ended December 31, 2025, net loan charge-offs totaled $301 thousand, compared to net loan charge-offs of $268 thousand for the quarter ended September 30, 2025. The allowance for credit losses as a percentage of non-performing loans, or coverage ratio, was 147.1% at December 31, 2025, compared to 129.4% at September 30, 2025.

• Operating Income and Expenses - Non-interest income as percentage of average assets was 0.29% for the quarter ended December 31, 2025, as compared to 0.57% for the quarter ended September 30, 2025. The decrease in non-interest income quarter over quarter was primarily attributable to the realized losses on the sale of investment securities partially offset by bank owned life insurance death claim benefits. Non-interest expense as a percentage of average assets was 2.90% for the quarter ended December 31, 2025, as compared to 2.74% for the quarter ended September 30, 2025. The increase in non-interest expenses quarter over quarter was primarily attributable to higher compensation and benefits and data processing expense as well as higher occupancy and equipment expenses. The Bank remains focused on identifying additional operating efficiencies and third-party expense reductions.
• Capital Adequacy - The Bank’s tier 1 leverage ratio was 8.93% as of December 31, 2025 and 8.77% as of September 30, 2025. The Bank’s capital continues to exceed all applicable regulatory capital requirements as set forth in 12 C.F.R. § 324. The Bancorp’s tangible book value per share (non-GAAP) was $34.92 at December 31, 2025, up from $32.77 as of September 30, 2025. Tangible common equity to tangible assets (non-GAAP) was 7.56% at December 31, 2025, up from 6.99% as of September 30, 2025. Excluding accumulated other comprehensive losses, tangible book value per share (non-GAAP) increased to $44.55 as of December 31, 2025, from $44.16 as of September 30, 2025.

Disclosures Regarding Non-GAAP Financial Measures

Reported amounts are presented in accordance with GAAP. In this press release, the Bancorp also provides certain financial measures identified as non-GAAP. The Bancorp’s management believes that the non-GAAP information, which consists of tangible common equity, tangible common equity adjusted for accumulated other comprehensive losses, tangible book value per share, tangible book value per share adjusted for accumulated other comprehensive losses, tangible common equity/tangible assets, tangible common equity adjusted for other comprehensive loss/tangible assets, net interest margin on a tax-equivalent basis, and efficiency ratio which can vary from period to period, provides a better comparison of period to period operating performance. The net interest income and net interest margin on a tax-equivalent basis measures recognize the income tax savings when comparing taxable and tax-exempt assets. Interest income and yields on tax-exempt securities and loans are presented using the current federal corporate income tax rate of 21%. Management believes that it is standard practice in the banking industry to present net interest income and net interest margin on a fully tax-equivalent basis and that it may enhance comparability for peer comparison purposes. Additionally, the Bancorp believes this information is utilized by regulators and market analysts to evaluate a company’s financial condition and, therefore, such information is useful to investors. These disclosures should not be viewed as a substitute for financial results in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures which may be presented by other companies. Refer to the "Reconciliation of non-GAAP Financial Measures" below for more information.

About Finward Bancorp

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

Forward Looking Statements

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

Although management believes that the expectations reflected in such forward-looking statements are reasonable, actual results may differ materially from those expressed or implied in such statements. Risks and uncertainties that could cause actual results to differ materially include: changes in domestic and international trade policies, including tariffs and other non-tariff barriers, and the effects of such changes on the Bank and its customers; risks related to the development and use of artificial intelligence (AI); the Bank’s ability to demonstrate compliance with the terms of the previously disclosed memorandum of understanding entered into between the Bank and the Federal Deposit Insurance Corporation (“FDIC”) and Indiana Department of Financial Institutions (“DFI”), or to demonstrate compliance to the satisfaction of the FDIC and/or DFI within prescribed time frames; the Bank’s agreement under the memorandum of understanding to refrain from paying cash dividends without prior regulatory approval; changes in asset quality and credit risk; the inability to sustain revenue and earnings growth; changes in interest rates, market liquidity, and capital markets, as well as the magnitude of such changes, which may reduce net interest margins; inflation; further deterioration in the market value of securities held in the Bancorp’s investment securities portfolio, whether as a result of macroeconomic factors or otherwise; customer acceptance of the Bancorp’s products and services; customer borrowing, repayment, investment, and deposit practices; customer disintermediation; the introduction, withdrawal, success, and timing of business initiatives; competitive conditions; the inability to realize cost savings or revenues or to implement integration plans and other consequences associated with mergers, acquisitions, and divestitures; economic conditions; and the impact, extent, and timing of technological changes, capital management activities, regulatory actions by the Federal Deposit Insurance Corporation and Indiana Department of Financial Institutions, and other actions of the Federal Reserve Board and legislative and regulatory actions and reforms. Additional factors that could cause actual results to differ materially from those expressed in the forward-looking statements are discussed in the Bancorp’s reports (such as the Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K) filed with the SEC and available at the SEC’s Internet website (www.sec.gov). All subsequent written and oral forward-looking statements concerning matters attributable to the Bancorp or any person acting on its behalf are expressly qualified in their entirety by the cautionary statements above. Except as required by law, The Bancorp does not undertake any obligation to update any forward-looking statement to reflect circumstances or events that occur after the date the forward-looking statement is made.

In addition to the above factors, we also caution that the actual amounts and timing of any future common stock dividends or share repurchases will be subject to various factors, including our capital position, financial performance, capital impacts of strategic initiatives, market conditions, and regulatory and accounting considerations, as well as any other factors that our Board of Directors deems relevant in making such a determination. Therefore, there can be no assurance that we will repurchase shares or pay any dividends to holders of our common stock, or as to the amount of any such repurchases or dividends.

Performance Ratios
	Quarter Ended										Year Ended
	12/31/2025		9/30/2025		6/30/2025		3/31/2025		12/31/2024		12/31/2025		12/31/2024
Return on equity	4.66%		8.96%		5.66%		1.17%		5.39%		5.10%		8.06%
Return on assets	0.39%		0.68%		0.42%		0.09%		0.41%		0.39%		0.58%
Yield on loans	5.64%		5.49%		5.36%		5.25%		5.27%		5.43%		5.15%
Yield on security investments	2.29%		2.40%		2.42%		2.38%		2.34 %		2.41%		2.38%
Total yield on earning assets	4.96%		4.91%		4.82%		4.71%		4.74%		4.85%		4.67%
Cost of interest-bearing deposits	2.09%		2.16%		2.12%		2.17%		2.41%		2.13%		2.40%
Cost of repurchase agreements	3.10%		3.37%		3.32%		3.35%		3.65%		3.29%		3.85%
Cost of borrowed funds	3.73%		3.64%		3.91%		4.12%		4.31%		3.86%		4.62%
Total cost of interest-bearing liabilities	2.16%		2.25%		2.22%		2.28%		2.53%		2.23%		2.56%
Net interest margin	3.18%		3.04%		2.97%		2.81%		2.65%		3.00%		2.54%
Net interest margin, tax-equivalent (non-GAAP) (1)	3.32%		3.18%		3.11%		2.95%		2.79%		3.14%		2.68%
Non-interest income/average assets	0.29%		0.57%		0.53%		0.43%		0.72%		0.45%		1.09%
Non-interest expense/average assets	2.90%		2.74%		2.90%		2.81%		2.75%		2.84%		2.80%
Efficiency ratio (non-GAAP) (1)	89.50%		81.22%		88.92%		93.11%		87.20%		88.03%		81.78%
Non-performing assets to total assets	0.68%		0.76%		0.74%		0.69%		0.74%		0.68%		0.74%
Non-performing loans to total loans	0.82%		0.94%		0.91%		0.84%		0.91%		0.82%		0.91%
Allowance for credit losses to non-performing loans	147.12%		129.41%		133.01%		143.84%		123.10%		147.12%		123.10%
Allowance for credit losses to loans receivable	1.21%		1.22%		1.22%		1.20%		1.12%		1.21%		1.12%
Net charge-offs (recoveries) as a percentage of average loans receivable	0.08%		0.07%		(0.11%)		0.01%		0.59%		0.01%		0.14 %
Basic earnings per share	$ 0.46		$ 0.82		$ 0.50		$ 0.11		$ 0.49		$ 1.89		$ 2.85
Diluted earnings per share	$ 0.46		$ 0.81		$ 0.50		$ 0.11		$ 0.49		$ 1.88		$ 2.84
Weighted average common shares outstanding—basic	4,273,421		4,273,022		4,271,952		4,266,976		4,261,079		4,271,350		4,259,570
Weighted average common shares outstanding—diluted	4,301,462		4,299,007		4,291,319		4,284,496		4,286,742		4,292,058		4,274,633
Stockholders' equity to total assets	8.64 %		8.06 %		7.48 %		7.44 %		7.35 %		8.64%		7.35%
Tangible common equity to tangible assets (non-GAAP) (1)	7.56 %		6.99 %		6.41 %		6.34 %		6.24 %		7.56 %		6.24 %
Tangible common equity adjusted for accumulated other comprehensive loss to tangible assets (non-GAAP) (1)	9.65%		9.42%		9.24%		9.23%		9.10%		9.65 %		9.10 %
Book value per share	$ 40.37		$ 38.24		$ 35.67		$ 35.10		$ 35.10		$ 40.37		$ 35.10
Tangible common book value per share (non-GAAP) (1)	$ 34.92		$ 32.77		$ 30.16		$ 29.55		$ 29.48		$ 34.92		$ 29.48
Tangible common book value per share adjusted for accumulated other comprehensive loss (non-GAAP) (1)	$ 44.55		$ 44.16		$ 43.47		$ 43.02		$ 42.94		$ 44.55		$ 42.94
Closing stock price	$ 35.19		$ 32.09		$ 27.62		$ 29.10		$ 28.11		$ 35.19		$ 28.11
Dividends declared per common share	$ 0.12		$ 0.12		$ 0.12		$ —		$ 0.12		$ 0.36		$ 0.48

(1)	See the reconciliation of these non-GAAP measures to the most directly comparable GAAP measures on pg 13.

Average Balances, Interest, Rates
	Quarter Ended
	December 31, 2025										September 30, 2025										June 30, 2025
(Dollars in thousands)	Average Balance				Interest			Yield/Rate			Average Balance				Interest			Yield/Rate			Average Balance				Interest			Yield/Rate
ASSETS
Interest bearing deposits in other financial institutions	$	100,035			$	903		3.61	%		$	90,880			$	991		4.36	%		$	57,749			$	614		4.25	%
Federal funds sold		1,113				10		3.59	%			1,285				12		3.74	%			868				8		3.69	%
Securities available-for-sale		327,747				1,877		2.29	%			327,030				1,965		2.40	%			327,867				1,980		2.42	%
Loans receivable		1,454,174				20,496		5.64	%			1,474,324				20,246		5.49	%			1,486,861				19,940		5.36	%
Federal Home Loan Bank stock		6,547				126		7.70	%			6,547				126		7.70	%			6,547				128		7.82	%
Total interest earning assets		1,889,616			$	23,412		4.96	%			1,900,066			$	23,340		4.91	%			1,879,892			$	22,670		4.82	%
Cash and non-interest bearing deposits in other financial institutions		23,385										24,882										27,192
Allowance for credit losses		(18,049	)									(18,243	)									(18,028	)
Other non-interest bearing assets		146,675										152,135										152,880
Total assets	$	2,041,627									$	2,058,840									$	2,041,936
LIABILITIES AND STOCKHOLDERS' EQUITY
Interest-bearing deposits	$	1,458,748			$	7,605		2.09	%		$	1,478,543			$	7,996		2.16	%		$	1,470,225			$	7,780		2.12	%
Repurchase agreements		40,968				317		3.10	%			46,498				392		3.37	%			44,401				370		3.33	%
Borrowed funds		48,089				448		3.73	%			55,904				509		3.64	%			58,995				575		3.90	%
Total interest bearing liabilities		1,547,805			$	8,370		2.16	%			1,580,945			$	8,897		2.25	%			1,573,621			$	8,725		2.22	%
Non-interest bearing deposits		288,073										285,347										278,620
Other non-interest bearing liabilities		35,588										36,397										37,703
Total liabilities		1,871,466										1,902,689										1,889,944
Total stockholders' equity		170,161										156,151										151,992
Total liabilities and stockholders' equity	$	2,041,627									$	2,058,840									$	2,041,936
Net interest income					$	15,042									$	14,443									$	13,945
Return on average assets		0.39	%									0.68	%									0.42	%
Return on average equity		4.66	%									8.96	%									5.66	%
Net interest margin		3.18	%									3.04	%									2.97	%
Net interest margin, tax-equivalent (non-GAAP)(1)		3.32	%									3.18	%									3.11	%
Net interest spread		2.80	%									2.66	%									2.60	%
Ratio of interest-earning assets to interest-bearing liabilities	1.22x										1.20x										1.19x

(1)	See the reconciliation of these non-GAAP measures to the most directly comparable GAAP measures on pg 13.

Consolidated Balance Sheets
	As of
(Dollars in thousands)	12/31/2025				9/30/2025				6/30/2025				3/31/2025				12/31/2024
ASSETS
Cash and non-interest bearing deposits in other financial institutions	$	18,265			$	19,458			$	23,027			$	18,563			$	17,883
Interest bearing deposits in other financial institutions		101,382				84,157				79,976				52,829				52,047
Federal funds sold		-				563				411				975				654
Total cash and cash equivalents		119,647				104,178				103,414				72,367				70,584
Securities available-for-sale		316,227				335,150				327,845				330,127				333,554
Loans held-for-sale		1,096				2,641				834				2,849				1,253
Loans receivable, net of deferred fees and costs		1,450,387				1,473,774				1,484,278				1,491,696				1,508,976
Less: allowance for credit losses		(17,506	)			(17,977	)			(18,184	)			(17,955	)			(16,911	)
Net loans receivable		1,432,881				1,455,797				1,466,094				1,473,741				1,492,065
Federal Home Loan Bank stock		6,547				6,547				6,547				6,547				6,547
Accrued interest receivable		7,781				7,585				7,651				7,821				7,721
Premises and equipment		44,976				45,544				46,179				46,680				47,259
Cash value of bank owned life insurance		33,586				33,843				33,932				33,712				33,514
Goodwill		22,395				22,395				22,395				22,395				22,395
Other intangible assets		1,172				1,273				1,414				1,635				1,860
Other assets		34,873				37,771				41,606				41,840				43,947
Total assets	$	2,021,181			$	2,052,724			$	2,057,911			$	2,039,714			$	2,060,699
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Non-interest bearing	$	267,441			$	280,296			$	271,172			$	281,461			$	263,324
Interest bearing		1,459,530				1,470,350				1,483,678				1,468,923				1,497,242
Total		1,726,971				1,750,646				1,754,850				1,750,384				1,760,566
Repurchase agreements		39,152				48,426				48,331				45,053				40,116
Borrowed funds		45,551				55,000				65,000				56,657				65,000
Accrued expenses and other liabilities		34,844				33,157				35,477				35,813				43,603
Total liabilities		1,846,518				1,887,229				1,903,658				1,887,907				1,909,285
Stockholders' Equity:
Preferred stock, no par or stated value; 10,000,000 shares authorized, none outstanding		-				-				-				-				-
Common stock, no par or stated value; 10,000,000 shares authorized(1)		-				-				-				-				-
Additional paid-in capital		70,331				70,233				70,263				70,132				70,034
Accumulated other comprehensive loss		(41,662	)			(49,266	)			(57,560	)			(58,244	)			(58,084	)
Retained earnings		145,994				144,528				141,550				139,919				139,464
Total stockholders' equity		174,663				165,495				154,253				151,807				151,414
Total liabilities and stockholders' equity	$	2,021,181			$	2,052,724			$	2,057,911			$	2,039,714			$	2,060,699

(1)	Shares of common stock issued and outstanding were 4,326,747 at 12/31/2025; 4,327,511 at 9/30/2025; 4,324,889 at 6/30/2025; 4,324,485 at 3/31/2025; and 4,313,698 at 12/31/24.

Consolidated Statements of Income
	Quarter Ended
(Dollars in thousands, except per share data)	12/31/2025				9/30/2025				6/30/2025				3/31/2025			12/31/2024
Interest income:
Loans	$	20,496			$	20,246			$	19,940			$	19,655		$	19,802
Securities & short-term investments		2,916				3,094				2,730				2,686			2,793
Total interest income		23,412				23,340				22,670				22,341			22,595
Interest expense:
Deposits		7,605				7,996				7,780				8,045			8,812
Borrowings		765				901				945				983			1,176
Total interest expense		8,370				8,897				8,725				9,028			9,988
Net interest income		15,042				14,443				13,945				13,313			12,607
Provision for (benefit from) credit losses		(84	)			(301	)			(274	)			454			(579	)
Net interest income after provision for credit losses		15,126				14,744				14,219				12,859			13,186
Non-interest income:
Fees and service charges		1,485				1,463				1,330				1,109			1,439
Wealth management operations		659				759				696				619			728
Gain on tax credit investment		-				23				-				67			1,236
Gain on sale of loans held-for-sale, net		346				265				378				230			328
Bank owned life insurance		522				439				220				198			202
Gain (loss) on sale of property and equipment		1				(56	)			-				-			(212	)
Loss on sale of securities, net		(1,577	)			-				-				-			-
Other		37				20				59				6			11
Total non-interest income		1,473				2,913				2,683				2,229			3,732
Non-interest expense:
Compensation and benefits		7,573				7,330				7,313				7,372			6,628
Occupancy and equipment		2,111				2,004				1,935				2,111			2,045
Data processing		1,465				1,116				1,341				1,039			1,202
Federal deposit insurance premiums		417				399				471				433			457
Marketing		230				257				214				86			220
Professional and outside services		906				945				1,115				1,260			1,341
Technology		521				549				545				454			509
Other		1,558				1,497				1,852				1,717			1,845
Total non-interest expense		14,781				14,097				14,786				14,472			14,247
Income before income taxes		1,818				3,560				2,116				616			2,671
Income tax expenses (benefit)		(166	)			63				(35	)			161			569
Net income	$	1,984			$	3,497			$	2,151			$	455		$	2,102
Earnings per common share:
Basic	$	0.46			$	0.82			$	0.50			$	0.11		$	0.49
Diluted	$	0.46			$	0.81			$	0.50			$	0.11		$	0.49

Consolidated Statements of Income (cont'd)
	Year Ended
(Dollars in thousands, except per share data)	12/31/2025				12/31/2024
Interest income:
Loans	$	80,337			$	77,515
Securities & short-term investments		11,426				11,663
Total interest income		91,763				89,178
Interest expense:
Deposits		31,426				35,162
Borrowings		3,594				5,569
Total interest expense		35,020				40,731
Net interest income		56,743				48,447
Provision for (benefit from) credit losses		(205	)			(503	)
Net interest income after provision for credit losses		56,948				48,950
Non-interest income:
Fees and service charges		5,387				5,312
Wealth management operations		2,733				2,855
Gain on tax credit investment		90				1,236
Gain on sale of loans held-for-sale, net		1,219				1,138
Bank owned life insurance		1,379				812
Gain (loss) on sale of property and equipment		(55	)			11,661
Loss on sale of securities, net		(1,577	)			(531	)
Other		122				164
Total non-interest income		9,298				22,647
Non-interest expense:
Compensation and benefits		29,588				27,737
Occupancy and equipment		8,161				8,250
Data processing		4,961				4,672
Federal deposit insurance premiums		1,720				1,790
Marketing		787				799
Professional and outside services		4,226				5,405
Technology		2,069				2,243
Other		6,624				7,246
Total non-interest expense		58,136				58,142
Income before income taxes		8,110				13,455
Income tax expenses		23				1,325
Net income	$	8,087			$	12,130
Earnings per common share:
Basic	$	1.89			$	2.85
Diluted	$	1.88			$	2.84

Loans
	As of
(Dollars in thousands)	12/31/2025				9/30/2025			6/30/2025				3/31/2025				12/31/2024				12/31/2025 vs 9/30/2025							12/31/2025 vs 12/31/2024
Residential real estate	$	442,443			$	450,007		$	457,248			$	458,424			$	467,293			$	(7,564	)		(1.7	)%		$	(24,850	)		(5.3	)%
Home equity		53,497				51,813			51,112				49,752				49,758				1,684			3.3	%			3,739			7.5	%
Commercial real estate		555,594				564,558			551,091				554,866				551,674				(8,964	)		(1.6	)%			3,920			0.7	%
Construction and land development		77,208				79,678			74,795				86,728				82,874				(2,470	)		(3.1	)%			(5,666	)		(6.8	)%
Multifamily		183,902				192,698			200,440				204,964				212,455				(8,796	)		(4.6	)%			(28,553	)		(13.4	)%
Commercial business		99,304				96,192			105,636				99,519				104,246				3,112			3.2	%			(4,942	)		(4.7	)%
Consumer		870				348			2,347				504				551				522			150.0	%			319			57.9	%
Manufactured homes		23,708				24,372			25,146				25,762				26,708				(664	)		(2.7	)%			(3,000	)		(11.2	)%
Government		12,298				12,298			14,628				9,279				11,024				—			—	%			1,274			11.6	%
Loans receivable		1,448,824				1,471,964			1,482,443				1,489,798				1,506,583				(23,140	)		(1.6	)%			(57,759	)		(3.8	)%
Net deferred loan origination costs		1,606				1,719			2,012				2,209				2,439				(113	)		(6.6	)%			(833	)		(34.2	)%
Loan clearing funds		(43	)			91			(177	)			(311	)			(46	)			(134	)		(147.3	)%			3			(6.5	)%
Loans receivable, net	$	1,450,387			$	1,473,774		$	1,484,278			$	1,491,696			$	1,508,976			$	(23,387	)		(1.6	)%		$	(58,589	)		(3.9	)%

Deposits
	As of
(Dollars in thousands)	12/31/2025			9/30/2025			6/30/2025			3/31/2025			12/31/2024			12/31/2025 vs 9/30/2025							12/31/2025 vs 12/31/2024
Checking	$	592,214		$	579,760		$	593,471		$	589,403		$	591,487		$	12,454			2.1	%		$	727			0.1	%
Savings		254,055			257,058			266,070			274,028			275,121			(3,003	)		(1.2	)%			(21,066	)		(7.7	)%
Money market		381,111			377,155			352,616			342,106			333,705			3,956			1.0	%			47,406			14.2	%
Certificates of deposit		499,591			536,673			542,693			544,847			560,253			(37,082	)		(6.9	)%			(60,662	)		(10.8	)%
Total deposits	$	1,726,971		$	1,750,646		$	1,754,850		$	1,750,384		$	1,760,566		$	(23,675	)		(1.4	)%		$	(33,595	)		(1.9	)%

Asset Quality
	As of and for the Quarter Ended
(Dollars in thousands)	12/31/2025			9/30/2025			6/30/2025			3/31/2025			12/31/2024
Non-accruing loans	$	11,899		$	13,892		$	13,526		$	12,483		$	13,738
Accruing loans delinquent more than 90 days		-			-			145			-			-
Securities in non-accrual		1,882			1,616			1,616			1,630			1,419
Total nonperforming assets	$	13,781		$	15,508		$	15,287		$	14,113		$	15,157
Allowance for credit losses (ACL):
ACL specific allowances for collateral dependent loans	$	263		$	912		$	570		$	259		$	284
ACL general allowances for loan portfolio		17,243			17,065			17,614			17,696			16,627
Total ACL	$	17,506		$	17,977		$	18,184		$	17,955		$	16,911

Allowance for Credit Losses
	As of and for the Quarter Ended
(Dollars in thousands)	12/31/2025				9/30/2025				6/30/2025				3/31/2025				12/31/2024
Beginning allowance for credit losses	$	17,977			$	18,184			$	17,955			$	16,911			$	18,516
Provision for (benefit from) loan losses		(170	)			61				(185	)			1,077				597
Net (charge-offs) recoveries		(301	)			(268	)			414				(33	)			(2,202	)
Ending allowance for credit losses	$	17,506			$	17,977			$	18,184			$	17,955			$	16,911

Bank-Level Regulatory Capital Requirements
		December 31, 2025
		Actual (1)						Minimum Required For Capital Adequacy Purposes						Minimum Required To Be Well Capitalized Under Prompt Corrective Action Regulations
(Dollars in thousands)		Amount			Ratio			Amount		Ratio				Amount			Ratio
Common equity tier 1 capital to risk-weighted assets		$	186,214		11.86	%		$	70,626		4.50	%		$	102,016		6.50	%
Tier 1 capital to risk-weighted assets		$	186,214		11.86	%		$	94,168		6.00	%		$	125,558		8.00	%
Total capital to risk-weighted assets		$	205,472		13.09	%		$	125,558		8.00	%		$	156,947		10.00	%
Tier 1 leverage ratio		$	186,214		8.93	%		$	83,379		4.00	%		$	104,223		5.00	%

(1)	Current quarter ratios are estimated.

Reconciliation of Non-GAAP Performance Measures
	Quarter Ended
(Dollars in thousands, except per share amounts)	12/31/2025				9/30/2025				6/30/2025				3/31/2025				12/31/2024
Tangible Common Ratios
Stockholder's equity (GAAP)	$	174,663			$	165,495			$	154,253			$	151,807			$	151,414
Less: Goodwill (GAAP)		(22,395	)			(22,395	)			(22,395	)			(22,395	)			(22,395	)
Less: Other intangibles (GAAP)		(1,172	)			(1,273	)			(1,414	)			(1,635	)			(1,860	)
Tangible common equity (non-GAAP)	$	151,096			$	141,827			$	130,444			$	127,777			$	127,159
Add: Accumulated other comprehensive loss (GAAP)		41,662				49,266				57,560				58,244				58,084
Tangible common equity adjusted for accumulated other comprehensive loss (non-GAAP) (1)	$	192,758			$	191,093			$	188,004			$	186,021			$	185,243
Total assets (GAAP)	$	2,021,181			$	2,052,724			$	2,057,911			$	2,039,714			$	2,060,699
Less: Goodwill (GAAP)		(22,395	)			(22,395	)			(22,395	)			(22,395	)			(22,395	)
Less: Other intangibles (GAAP)		(1,172	)			(1,273	)			(1,414	)			(1,635	)			(1,860	)
Tangible assets (non-GAAP)	$	1,997,614			$	2,029,056			$	2,034,102			$	2,015,684			$	2,036,444
Shares outstanding - end of quarter		4,327,511				4,327,511				4,324,889				4,324,485				4,313,698
Common book value per share (GAAP)	$	40.36			$	38.24			$	35.67			$	35.10			$	35.10
Tangible common book value per share (non-GAAP)	$	34.92			$	32.77			$	30.16			$	29.55			$	29.48
Tangible common book value per share adjusted for accumulated other comprehensive loss (non-GAAP)	$	44.54			$	44.16			$	43.47			$	43.02			$	42.94
Total equity to total assets (GAAP)		8.64	%			8.06	%			7.50	%			7.44	%			7.35	%
Tangible common equity to tangible assets (non-GAAP)		7.56	%			6.99	%			6.41	%			6.34	%			6.24	%
Tangible common equity adjusted for accumulated other comprehensive loss to tangible assets (non-GAAP)		9.65	%			9.42	%			9.24	%			9.23	%			9.10	%
Calculation of net interest margin, taxable-equivalent basis
Net interest income (GAAP)	$	15,042			$	14,443			$	13,945			$	13,313			$	12,607
Tax-equivalent adjustment on securities and loans (2)		629				663				674				670				674
Net interest income (tax-equivalent basis)	$	15,671			$	15,106			$	14,619			$	13,983			$	13,281
Total average earning assets	$	1,889,616			$	1,900,066			$	1,879,892			$	1,895,847			$	1,905,333
Net interest margin		3.18	%			3.04	%			2.97	%			2.81	%			2.65	%
Net interest margin (tax-equivalent basis)		3.32	%			3.18	%			3.11	%			2.95	%			2.79	%
Efficiency ratio
Total non-interest expense	$	14,781			$	14,097			$	14,786			$	14,472			$	14,247
Total revenue		16,515				17,356				16,628				15,542				16,339
Efficiency ratio		89.50	%			81.22	%			88.92	%			93.11	%			87.20	%

(1)	Tangible common equity adjusted for accumulated other comprehensive loss is a non-GAAP financial measure used by management to evaluate the Company's capital position without the impact of unrealized losses recorded in accumulated other comprehensive loss. This measure adjusts tangible common equity by adding back unrealized losses included in accumulated other comprehensive loss.
(2)	The tax equivalent adjustment represents the increase in net interest income needed to reflect the tax-exempt income from certain investment securities and loans on tax-equivalent basis using a federal statutory corporate rate of 21%.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20260127845840/en/

FOR FURTHER INFORMATION

CONTACT SHAREHOLDER SERVICES

(219) 853-7575

Source: Finward Bancorp