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Finward Bancorp (NASDAQ: FNWD) details Q2 profit, loan growth and asset quality

Filing Impact
(High)
Filing Sentiment
(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

Finward Bancorp reported second‑quarter 2026 net income available to common stockholders of $2,093 thousand, or $0.48 per diluted share, compared with $2,242 thousand, or $0.52 per diluted share, for the prior quarter. Return on assets was 0.42% and return on equity 4.74%. Net interest margin improved to 3.25%, or 3.37% on a tax‑equivalent basis, from 3.23% and 3.35%, respectively. Management cited solid loan growth, stable funding, and progress toward a planned merger with First Financial.

Total loans rose to $1,503,793 thousand from $1,455,118 thousand, with $81,300 thousand of new commercial originations versus $37,400 thousand in the prior quarter. Deposits totaled $1,732,544 thousand, up $13,473 thousand, with core deposits representing 71.3% of total deposits. Available‑for‑sale securities were $310,198 thousand, and available liquidity stood at $604,000 thousand, including borrowing capacity.

Asset quality weakened as non‑performing loans increased to $16,549 thousand from $12,371 thousand, raising the non‑performing loans to total loans ratio to 1.10% from 0.85%. The allowance for credit losses was $17,694 thousand, or 1.18% of loans, with coverage of non‑performing loans at 106.92%. Capital remained strong, with a tier 1 leverage ratio of 9.31% and tangible common book value per share of $35.75, up from $34.39. For the first six months of 2026, net income was $4,335 thousand versus $2,606 thousand a year earlier, and dividends of $0.12 per share were declared in the quarter.

Positive

  • First-half 2026 net income reached $4,335 thousand, up from $2,606 thousand in the prior-year period, with diluted EPS of $1.00 versus $0.61 and net interest income rising to $30,251 thousand from $27,258 thousand.

Negative

  • Non-performing loans increased 33.8% quarter over quarter to $16,549 thousand, lifting the non-performing loans to total loans ratio to 1.10% and reducing the allowance coverage ratio to 106.92% from 139.72%.

Filing Explained

As of June 30, 2026, credit deterioration increased, while capital exceeded stated well-capitalized minimums; the filing leaves the merger at a planned stage.

This July 28, 2026 Form 8-K furnishes unaudited second-quarter results; the merger with First Financial is still described as planned, while the filing updates the company’s credit and capital position. The reported structural effect for existing holders is financial-condition information, not a disclosed ownership change.

Form 8-K reports specified material events, and this filing furnishes the earnings release under Item 2.02 rather than treating it as filed for Exchange Act Section 18 purposes. The release reports $2.1 million of second-quarter net income available to common stockholders and $0.48 diluted earnings per share.

Credit quality weakened during the quarter: non-performing loans rose to $16.5 million from $12.4 million, and the ratio increased to 1.10% from 0.85%. The increase comprised twelve loans across eleven relationships, while the company said it was not driven by concentrations or overall economic stress; the allowance covered 106.9% of non-performing loans.

At June 30, 2026, the Bank’s tier 1 leverage ratio was 9.31%, above the 5.00% minimum for being well capitalized under the table’s prompt-corrective-action standard. The filing identifies preparation for the planned combination as a near-term priority, but does not specify completion or closing conditions.

Item 2.02 Results of Operations and Financial Condition Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Net income (Q2 2026) $2,093 (thousands) Net income for the quarter ended June 30, 2026
Diluted EPS (Q2 2026) $0.48 Diluted earnings per share for the quarter ended June 30, 2026
Net interest margin 3.25% Net interest margin for the quarter ended June 30, 2026
Loans receivable $1,503,793 (thousands) Loans receivable balance as of June 30, 2026
Total deposits $1,732,544 (thousands) Total deposits as of June 30, 2026
Non-performing loans $16,549 (thousands) Non-performing loans balance as of June 30, 2026
Tier 1 leverage ratio 9.31% Bank-level tier 1 leverage ratio as of June 30, 2026
Tangible common book value per share $35.75 Tangible common book value per share at June 30, 2026
Net interest margin, tax-equivalent (non-GAAP) financial
"Net interest margin on a tax-equivalent basis (a non-GAAP measure) for the quarter ended June 30, 2026 was 3.37%"
Efficiency ratio financial
"Efficiency ratio was 84.52% for the quarter ended June 30, 2026"
A measure of how much a company spends to produce each dollar of revenue, usually shown as operating expenses divided by revenue and expressed as a percentage. Think of it as a household’s budget: a lower percentage means more of each dollar earned stays as profit, while a higher number means costs are eating into returns. Investors use it to judge cost control and compare how efficiently companies turn revenue into earnings, especially in banks and financial firms.
Tangible common equity financial
"Tangible common equity (non-GAAP) was $154,908 thousand at June 30, 2026"
Tangible common equity is the portion of a company’s net worth that belongs to ordinary shareholders after removing intangible items (like goodwill or patents) and any preferred claims; it’s often expressed on a per-share basis. Think of it as the hard, sellable value left for common owners if you removed non-physical assets and paid off debts—investors use it to judge how much real cushion a company has and whether the stock might be under- or over-valued.
Allowance for credit losses financial
"The allowance for credit losses (ACL) on loans totaled $17,694 thousand at June 30, 2026"
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.
Non-performing loans financial
"At June 30, 2026, non-performing loans totaled $16,549 thousand, compared to $12,371 thousand at March 31, 2026"
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.
Net income (Q2 2026) $2,093 thousand Compared with $2,242 thousand in Q1 2026 and $2,151 thousand in Q2 2025
Diluted EPS (Q2 2026) $0.48 Compared with $0.52 in Q1 2026 and $0.50 in Q2 2025
Net income (six months 2026) $4,335 thousand Compared with $2,606 thousand for the six months ended June 30, 2025

AI-generated analysis. How Rhea-AI works. Not financial advice.

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FAQ

What were Finward Bancorp (FNWD) second-quarter 2026 earnings?
Finward Bancorp reported net income of $2,093 thousand for Q2 2026, with basic EPS of $0.49 and diluted EPS of $0.48. This compares with net income of $2,242 thousand and diluted EPS of $0.52 in the first quarter of 2026.

How did Finward Bancorp (FNWD) net interest margin perform in Q2 2026?
Net interest margin was 3.25% in Q2 2026, up from 3.23% in Q1 2026. On a tax-equivalent basis, net interest margin was 3.37%, compared with 3.35% in the prior quarter, supported by loan repricing and new commercial loan originations.

What were Finward Bancorp (FNWD) loans and deposits as of June 30, 2026?
As of June 30, 2026, loans receivable totaled $1,503,793 thousand and deposits were $1,732,544 thousand. Core deposits, including checking, savings, and money market accounts, were $1,235,095 thousand and represented 71.3% of total deposits at that date.

What is Finward Bancorp (FNWD) capital position as of June 30, 2026?
At June 30, 2026, the Bank’s tier 1 leverage ratio was 9.31%, and total capital to risk-weighted assets was 13.03%. Tangible common equity to tangible assets was 7.68%, and tangible common book value per share was $35.75, exceeding all regulatory capital requirements.

What dividend did Finward Bancorp (FNWD) declare for Q2 2026?
Finward Bancorp declared a quarterly dividend of $0.12 per common share in Q2 2026. Cumulative dividends declared for the first six months of 2026 were $0.24 per share, consistent with the $0.12 quarterly dividend paid in prior periods shown.
false000091986400009198642026-07-282026-07-28

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
______________________________________________________________
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): July 28, 2026
FINWARD BANCORP
(Exact name of registrant as specified in its charter)
Indiana001-4099935-1927981
(State or other jurisdiction of incorporation)(Commission File Number)(IRS Employer Identification No.)
9204 Columbia Avenue
Munster, Indiana 46321
(Address of principal executive offices) (Zip Code)
(219) 836-4400
(Registrant's telephone number, including area code)
N/A
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common stock, no par valueFNWDThe NASDAQ Stock Market, LLC
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company          o
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.          o


Item 2.02.         Results of Operations and Financial Condition
On July 28, 2026, Finward Bancorp (the “Bancorp”) issued a press release reporting its unaudited financial results for the quarter ended June 30, 2026. A copy of the press release is filed as Exhibit 99.1 to this report and is incorporated herein by reference.

The information in Item 2.02 of this Current Report on Form 8-K and Exhibit 99.1 attached hereto is being “furnished” and will not, except to the extent required by applicable law or regulation, be deemed “filed” by the Bancorp for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (“Exchange Act”), or otherwise subject to the liabilities of that section, nor will any of such information or exhibits be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act.
Item 9.01.         Financial Statements and Exhibits.
(d)Exhibits.
99.1
Earnings release for the quarter ended June 30, 2026
104Cover Page Interactive Data File (embedded within the Inline XBRL document)


SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date: July 28, 2026
FINWARD BANCORP
By:/s/ Benjamin L. Schmitt
Name: Benjamin L. Schmitt
Title: Executive Vice President, Chief Financial Officer and Treasurer

1
Exhibit 99.1
finward_rgb.jpg
July 28, 2026 
Finward Bancorp Announces Second Quarter 2026 Results
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 $2.1 million, or $0.48 per diluted share,
for the quarter ended June 30, 2026, as compared to $2.2 million, or $0.52 per diluted share, for the quarter ended
March 31, 2026. Selected performance metrics are as follows for the periods presented:
Performance Ratios
Quarter ended
6/30/2026
3/31/2026
12/31/2025
9/30/2025
6/30/2025
Return on equity
4.74%
5.00%
4.66%
8.96%
5.66%
Return on assets
0.42%
0.44%
0.39%
0.68%
0.42%
Net interest margin, tax-equivalent  (non-GAAP)
3.37%
3.35%
3.32%
3.18%
3.11%
Non-interest income/average assets
0.48%
0.48%
0.29%
0.57%
0.53%
Non-interest expense/average assets
2.95%
2.93%
2.90%
2.74%
2.90%
Efficiency ratio
84.52%
84.45%
89.50%
81.22%
88.92%
"Despite overhead impacts from merger-related expenses and a previously disclosed branch closure, we showed continued
progress in key areas this quarter.  Results were supported by solid loan growth, stable deposit funding, and continued
momentum across the organization. These results reflect the dedication of our team and the strength of the relationships we
have built throughout Northwest Indiana and Chicagoland, and I am proud of what our team has accomplished together,"
said Benjamin Bochnowski, Chief Executive Officer. "The quarter was also highlighted by the announcement of our
planned merger with First Financial. This transaction recognizes the value of our franchise and positions our customers,
employees, communities, and shareholders to benefit from an even stronger banking organization in the years ahead. While
we are excited about the opportunities this partnership creates, our near-term priorities are clear: serving customers,
maintaining strong credit quality, and preparing for a successful combination with First Financial."
Highlights of the current period include:
•Net Interest Margin - The net interest margin for the quarter ended June 30, 2026 was 3.25% compared to 3.23% for
the quarter ended March 31, 2026. Net interest margin on a tax-equivalent basis (a non-GAAP measure) for the quarter
ended June 30, 2026 was 3.37%, as compared to 3.35% for the quarter ended March 31, 2026. Net interest margin
increased from the prior quarter primarily due to continued repricing and maturity of the existing loan portfolio, as
well as strength in new loan originations.
•Funding - As of June 30, 2026, deposits totaled $1.73 billion, an increase of $13.5 million, or 0.8% compared with
March 31, 2026 balances, which totaled $1.72 billion. As of June 30, 2026, non-interest-bearing deposits totaled
$270.7 million, a decrease of $8.0 million. Core deposits totaled $1.2 billion at both June 30, 2026 and March 31,
2026. Core deposits include checking, savings, and money market accounts and represented 71.3% of the Bancorp’s
total deposits at June 30, 2026. As of June 30, 2026, balances for certificates of deposit totaled $497.4 million,
compared to $488.8 million on March 31, 2026, an increase of $8.6 million or 1.8%. The increase in total portfolio
deposits is primarily related to cyclical flows and continued adjustments to deposit pricing. In addition, as of June 30,
2026, borrowings, federal funds purchased and repurchase agreements totaled $95.3 million, an increase of $4.5
million or 4.9%, compared to March 31, 2026. The increase in borrowings was primarily attributable to new FHLB
advances in conjunction with increased loan origination during the quarter.
As of June 30, 2026, 72.5% of our deposits are fully FDIC insured, and another 7.8% 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, contractual loan repayments, and access to diversified borrowing sources.
As of June 30, 2026, the Bancorp had available liquidity of $604 million including borrowing capacity from the FHLB
and Federal Reserve facilities.
2
Exhibit 99.1
•Securities Portfolio - Securities available for sale balances increased by $2.5 million to $310.2 million as of June 30,
2026, compared to $307.7 million as of March 31, 2026. The yield on the securities portfolio increased to 2.27% for
the three months ended June 30, 2026 from 2.22% for the three months ended March 31, 2026. The increase in
securities available for sale was primarily attributable to a decrease in the negative fair value adjustment to securities. 
The Bank did not sell or purchase any securities during the quarter.
•Lending - The Bank’s aggregate loan portfolio totaled $1.50 billion on June 30, 2026 and $1.46 billion on March 31,
2026. During the three months ended June 30, 2026, the Bank originated $81.3 million in new commercial loans,
compared to $37.4 million during the three months ended March 31, 2026, based on strength experienced in the
lending pipeline, specifically within commercial business and commercial real estate portfolios. At June 30, 2026, the
Bancorp’s portfolio loan balances in commercial real estate owner occupied properties totaled $262.4 million or 17.4%
of loans receivable and commercial real estate non-owner occupied properties totaled $334.9 million or 22.3% of loans
receivable. Of the $334.9 million in commercial real estate non-owner occupied properties balances, loans
collateralized by office buildings represented $41.2 million or 2.7% of total loan balances.
•Asset Quality - At June 30, 2026, non-performing loans totaled $16.5 million, compared to $12.4 million at March 31,
2026, an increase of $4.2 million or 33.8%. The Bank’s ratio of non-performing loans to total loans was 1.10% at
June 30, 2026, compared to 0.85% at March 31, 2026. The Bank’s ratio of non-performing assets to total assets was
0.90% at June 30, 2026 and 0.71% at March 31, 2026. The non-performing balance increases are driven by a variety of
credits and not due to concentrations or an indication of overall economic stress within our customer base or footprint.
The increase in non-performers consisted of twelve loans from eleven different relationships, averaging $417 thousand
per loan across commercial real estate, multifamily and residential real estate. 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 $17.7 million at June 30, 2026, or 1.18% of total loans
receivable, compared to $17.3 million at March 31, 2026, or 1.19% of total loans receivable, an increase of $409
thousand or 2.37%. The Bank's unused commitment reserve, included in other liabilities, totaled $1.9 million at
June 30, 2026, compared to $2.0 million at March 31, 2026, a decrease of $114 thousand or 5.6%.
      For the quarter ended June 30, 2026, the Bank recorded a net provision for credit loss totaling $264 thousand based on
quarterly growth in certain loan segment balances and other factors within the Bank's ACL modeling. The second
quarter's provision consisted of a $378 thousand provision for credit losses on loans, and a $114 thousand reversal of
credit losses on unused commitments. For the quarter ended June 30, 2026, net loan recoveries totaled $31 thousand,
compared to net loan recoveries of $3 thousand for the quarter ended March 31, 2026. The allowance for credit losses
as a percentage of non-performing loans, or coverage ratio, was 106.9% at June 30, 2026, compared to 139.7% at
March 31, 2026.
•Operating Income and Expenses - Non-interest income as a percentage of average assets was 0.48% for both the
quarter ended June 30, 2026 and March 31, 2026. Total non-interest expense increased slightly from the prior quarter,
while non-interest expense as a percentage of average assets was 2.95% for the quarter ended June 30, 2026, as
compared to 2.93% for the quarter ended March 31, 2026. The aggregate reduction in non-interest income as
compared to the prior quarter was due to a $180 thousand loss associated with the closure of one of the Bancorp's
leased branch locations. The increase in non-interest expense quarter over quarter was primarily attributable to
compensation and benefits and seasonality of certain professional and outside services expenses.
•Capital Adequacy - The Bank’s tier 1 leverage ratio was 9.31% as of June 30, 2026 and 9.24% as of March 31, 2026.
The Bank’s capital continues to exceed all applicable regulatory capital requirements. The Bancorp’s tangible book
value per share (non-GAAP) was $35.75 at June 30, 2026, up from $34.39 as of March 31, 2026. Tangible common
equity to tangible assets (non-GAAP) was 7.68% at June 30, 2026, up from 7.48% as of March 31, 2026.
3
Exhibit 99.1
Disclosures Regarding Non-GAAP Financial Measures
Reported amounts are presented in accordance with GAAP. In this press release, the Bancorp also provides certain
financial measures identified as non-GAAP. The Bancorp’s management believes that the non-GAAP information, which
consists of tangible common equity, tangible book value per share, tangible common equity/tangible assets, net interest
margin on a tax-equivalent basis, and efficiency ratio which can vary from period to period, provides a better comparison
of period to period operating performance. The net interest income and net interest margin on a tax-equivalent basis
measures recognize the income tax savings when comparing taxable and tax-exempt assets. Interest income and yields on
tax-exempt securities and loans are presented using the current federal corporate income tax rate of 21%. Management
believes that it is standard practice in the banking industry to present net interest income and net interest margin on a fully
tax-equivalent basis and that it may enhance comparability for peer comparison purposes. Additionally, the Bancorp
believes this information is utilized by regulators and market analysts to evaluate a company’s financial condition and,
therefore, such information is useful to investors. These disclosures should not be viewed as a substitute for financial
results in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures which may be
presented by other companies. Refer to the "Reconciliation of non-GAAP Financial Measures" below for more
information.
About Finward Bancorp
Finward Bancorp is a locally managed and independent financial holding company headquartered in Munster, Indiana,
whose activities are primarily limited to holding the stock of Peoples Bank. Peoples Bank provides a wide range of
personal, business, electronic and wealth management financial services from its 24 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); 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.
4
Exhibit 99.1
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.
FOR FURTHER INFORMATION
CONTACT SHAREHOLDER SERVICES
(219) 853-7575
5
Finward Bancorp    Exhibit 99.1
Second Quarter 2026 Financial Results (unaudited)
Performance Ratios
Quarter Ended
Six Months Ended
6/30/2026
3/31/2026
12/31/2025
9/30/2025
6/30/2025
6/30/2026
6/30/2025
Return on equity
4.74%
5.00%
4.66%
8.96%
5.66%
4.87%
3.39%
Return on assets
0.42%
0.44%
0.39%
0.68%
0.42%
0.43%
0.25%
Yield on loans
5.55%
5.50%
5.64%
5.49%
5.36%
5.53%
5.31%
Yield on security investments
2.27%
2.22%
2.29%
2.40%
2.42%
2.25%
2.40%
Total yield on earning assets
4.93%
4.86%
4.96%
4.91%
4.82%
4.90%
4.77%
Cost of interest-bearing deposits
1.98%
1.92%
2.09%
2.16%
2.12%
1.95%
2.14%
Cost of federal funds purchased and repurchase
agreements
2.82%
2.85%
3.12%
3.37%
3.32%
2.84%
3.34%
Cost of borrowed funds
3.80%
3.70%
3.70%
3.64%
3.91%
3.75%
4.01%
Total cost of interest-bearing liabilities
2.06%
2.00%
2.16%
2.25%
2.22%
2.03%
2.25%
Net interest margin
3.25%
3.23%
3.18%
3.04%
2.97%
3.24%
2.89%
Net interest margin, tax-equivalent (non-GAAP) (1)
3.37%
3.35%
3.32%
3.18%
3.11%
3.36%
3.03%
Non-interest income/average assets
0.48%
0.48%
0.29%
0.57%
0.53%
0.48%
0.48%
Non-interest expense/average assets
2.95%
2.93%
2.90%
2.74%
2.90%
2.95%
2.86%
Efficiency ratio (non-GAAP) (1)
84.52%
84.45%
89.50%
81.22%
88.92%
84.48%
90.95%
Non-performing assets to total assets
0.90%
0.71%
0.65%
0.76%
0.74%
0.90%
0.74%
Non-performing loans to total loans
1.10%
0.85%
0.77%
0.94%
0.91%
1.10%
0.91%
Allowance for credit losses to non-performing loans
106.92%
139.72%
156.84%
129.41%
133.01%
106.92%
133.01%
Allowance for credit losses to loans receivable
1.18%
1.19%
1.21%
1.22%
1.22%
1.18%
1.22%
Net charge-offs (recoveries) as a percentage of average
loans receivable
(0.01%)
0.00%
0.08%
0.07%
(0.11%)
(0.01)%
(0.05)%
Basic earnings per share
$0.49
$0.52
$0.46
$0.82
$0.50
$1.01
$0.61
Diluted earnings per share
$0.48
$0.52
$0.46
$0.81
$0.50
$1.00
$0.61
Weighted average common shares outstanding—basic
4,280,844
4,276,530
4,273,421
4,273,022
4,271,952
4,278,699
4,269,478
Weighted average common shares outstanding—diluted
4,319,052
4,302,206
4,301,462
4,299,007
4,291,319
4,316,606
4,287,877
Stockholders' equity to total assets
8.74%
8.56%
8.64%
8.06%
7.48%
8.74%
7.48%
Tangible common equity to tangible assets (non-GAAP)
(1)
7.68%
7.48%
7.56%
6.99%
6.41%
7.68%
6.41%
Book value per share
$41.15
$39.81
$40.37
$38.24
$35.67
$41.15
$35.67
Tangible common book value per share (non-GAAP) (1)
$35.75
$34.39
$34.92
$32.77
$30.16
$35.75
$30.16
Closing stock price
$36.78
$36.30
$35.19
$32.09
$27.62
$35.19
$27.62
Dividends declared per common share
$0.12
$0.12
$0.12
$0.12
$0.12
$0.24
$0.12
(1)See the reconciliation of these non-GAAP measures to the most directly comparable GAAP measures on pg 13.
6
Finward Bancorp    Exhibit 99.1
Second Quarter 2026 Financial Results (unaudited)
Average Balances, Interest, Rates
Quarter Ended
June 30, 2026
March 31, 2026
December 31, 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
$78,886
$718
3.64%
$96,250
$949
3.94%
$100,035
$903
3.61%
Federal funds sold
1,046
8
3.06%
1,523
11
2.89%
1,113
10
3.59%
Securities available-for-sale
309,251
1,757
2.27%
318,670
1,771
2.22%
327,747
1,877
2.29%
Loans receivable
1,474,063
20,468
5.55%
1,445,921
19,871
5.50%
1,454,174
20,496
5.64%
Federal Home Loan Bank stock
6,547
114
6.97%
6,547
119
7.27%
6,547
126
7.70%
Total interest earning assets
1,869,793
$23,065
4.93%
1,868,911
$22,721
4.86%
1,889,616
$23,412
4.96%
Cash and non-interest bearing
deposits in other financial
institutions
15,504
21,331
23,385
Allowance for credit losses
(17,418)
(17,608)
(18,049)
Other non-interest bearing assets
143,484
143,452
146,675
Total assets
$2,011,363
$2,016,086
$2,041,627
LIABILITIES AND
STOCKHOLDERS' EQUITY
Interest-bearing deposits
$1,446,072
$7,159
1.98%
$1,447,994
$6,959
1.92%
$1,458,748
$7,605
2.09%
Federal funds purchased and
repurchase agreements
33,076
233
2.82%
38,113
272
2.85%
40,968
317
3.10%
Borrowed funds
51,925
493
3.80%
45,334
419
3.70%
48,089
448
3.73%
Total interest bearing liabilities
1,531,073
$7,885
2.06%
1,531,441
$7,650
2.00%
1,547,805
$8,370
2.16%
Non-interest bearing deposits
268,540
270,626
288,073
Other non-interest bearing
liabilities
35,243
34,588
35,588
Total liabilities
1,834,856
1,836,655
1,871,466
Total stockholders' equity
176,507
179,431
170,161
Total liabilities and
stockholders' equity
$2,011,363
$2,016,086
$2,041,627
Net interest income
$15,180
$15,071
$15,042
Return on average assets
0.42%
0.44%
0.39%
Return on average equity
4.74%
5.00%
4.66%
Net interest margin
3.25%
3.23%
3.18%
Net interest margin, tax-equivalent
(non-GAAP)(1)
3.37%
3.35%
3.32%
Net interest spread
2.87%
2.86%
2.80%
Ratio of interest-earning assets to
interest-bearing liabilities
1.22x
1.22x
1.22x
(1)See the reconciliation of non-GAAP measures to the most directly comparable GAAP measures on pg 13.
7
Finward Bancorp    Exhibit 99.1
Second Quarter 2026 Financial Results (unaudited)
Consolidated Balance Sheets
As of
(Dollars in thousands)
6/30/2026
3/31/2026
12/31/2025
9/30/2025
6/30/2025
ASSETS
Cash and non-interest bearing deposits in other financial institutions
$17,384
$15,758
$18,265
$19,458
$23,027
Interest bearing deposits in other financial institutions
76,270
102,997
101,382
84,157
79,976
Federal funds sold
988
-
-
563
411
Total cash and cash equivalents
94,642
118,755
119,647
104,178
103,414
Securities available-for-sale
310,198
307,686
316,227
335,150
327,845
Loans held-for-sale
1,083
-
1,096
2,641
834
Loans receivable, net of deferred fees and costs
1,503,793
1,455,118
1,450,387
1,473,774
1,484,278
Less: allowance for credit losses
(17,694)
(17,285)
(17,506)
(17,977)
(18,184)
Net loans receivable
1,486,099
1,437,833
1,432,881
1,455,797
1,466,094
Federal Home Loan Bank stock
6,547
6,547
6,547
6,547
6,547
Accrued interest receivable
7,671
7,700
7,781
7,585
7,651
Premises and equipment
43,932
44,315
44,976
45,544
46,179
Cash value of bank owned life insurance
34,010
33,786
33,586
33,843
33,932
Goodwill
22,395
22,395
22,395
22,395
22,395
Other intangible assets
984
1,076
1,172
1,273
1,414
Other assets
33,145
35,063
34,873
37,771
41,606
Total assets
$2,040,706
$2,015,156
$2,021,181
$2,052,724
$2,057,911
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Non-interest bearing
$270,682
$278,705
$267,441
$280,296
$271,172
Interest bearing
1,461,862
1,440,366
1,459,530
1,470,350
1,483,678
Total
1,732,544
1,719,071
1,726,971
1,750,646
1,754,850
Federal funds purchased and repurchase agreements
30,301
40,815
39,703
48,426
48,331
Borrowed funds
65,000
50,000
45,000
55,000
65,000
Accrued expenses and other liabilities
34,574
32,870
34,844
33,157
35,477
Total liabilities
1,862,419
1,842,756
1,846,518
1,887,229
1,903,658
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
70,530
70,397
70,331
70,233
70,263
Accumulated other comprehensive loss
(41,532)
(45,713)
(41,662)
(49,266)
(57,560)
Retained earnings
149,289
147,716
145,994
144,528
141,550
Total stockholders' equity
178,287
172,400
174,663
165,495
154,253
Total liabilities and stockholders' equity
$2,040,706
$2,015,156
$2,021,181
$2,052,724
$2,057,911
(1) Shares of common stock issued and outstanding were 4,333,002 at 6/30/2026; 4,330,486 at 3/31/2026; 4,326,747 at 12/31/2025; 4,327,511 at
9/30/2025; and 4,324,889 at 6/30/2025. 
8
Finward Bancorp    Exhibit 99.1
Second Quarter 2026 Financial Results (unaudited)
Consolidated Statements of Income
Quarter Ended
(Dollars in thousands, except per share data)
6/30/2026
3/31/2026
12/31/2025
9/30/2025
6/30/2025
Interest income:
Loans
$20,468
$19,871
$20,496
$20,246
$19,940
Securities & short-term investments
2,597
2,850
2,916
3,094
2,730
Total interest income
23,065
22,721
23,412
23,340
22,670
Interest expense:
Deposits
7,159
6,959
7,605
7,996
7,780
Borrowings
726
691
765
901
945
Total interest expense
7,885
7,650
8,370
8,897
8,725
Net interest income
15,180
15,071
15,042
14,443
13,945
Provision for (benefit from) credit losses
264
55
(84)
(301)
(274)
Net interest income after provision for credit losses
14,916
15,016
15,126
14,744
14,219
Non-interest income:
Fees and service charges
1,331
1,295
1,485
1,463
1,330
Wealth management operations
748
661
659
759
696
Gain (loss) on tax credit investment
-
-
-
23
-
Gain (loss) on sale of loans held-for-sale, net
228
257
346
265
378
Gain (loss) on sale of securities, net
-
-
(1,577)
-
-
Bank owned life insurance
223
201
522
439
220
Gain (loss) on sale of property and equipment
(180)
-
1
(56)
-
Other
48
3
37
20
59
Total non-interest income
2,398
2,417
1,473
2,913
2,683
Non-interest expense:
Compensation and benefits
8,033
7,591
7,573
7,330
7,313
Occupancy and equipment
1,741
1,991
2,111
2,004
1,935
Data processing
1,176
1,105
1,465
1,116
1,341
Federal deposit insurance premiums
347
381
417
399
471
Marketing
266
587
230
257
214
Professional and outside services
1,221
1,169
906
945
1,115
Technology
516
508
521
549
545
Other
1,557
1,436
1,558
1,497
1,852
Total non-interest expense
14,857
14,768
14,781
14,097
14,786
Income before income taxes
2,457
2,665
1,818
3,560
2,116
Income tax expenses (benefit)
364
423
(166)
63
(35)
Net income
$2,093
$2,242
$1,984
$3,497
$2,151
Earnings per common share:
Basic
$0.49
$0.52
$0.46
$0.82
$0.50
Diluted
$0.48
$0.52
$0.46
$0.81
$0.50
9
Finward Bancorp    Exhibit 99.1
Second Quarter 2026 Financial Results (unaudited)
Consolidated Statements of Income (cont'd)
Six Months Ended
(Dollars in thousands, except per share data)
6/30/2026
6/30/2025
Interest income:
Loans
$40,339
$39,595
Securities & short-term investments
5,447
5,416
Total interest income
45,786
45,011
Interest expense:
Deposits
14,118
15,825
Borrowings
1,417
1,928
Total interest expense
15,535
17,753
Net interest income
30,251
27,258
Provision for (benefit from) credit losses
319
180
Net interest income after provision for credit losses
29,932
27,078
Non-interest income:
Fees and service charges
2,626
2,439
Wealth management operations
1,409
1,315
Gain on tax credit investment
—
67
Gain on sale of loans held-for-sale, net
485
608
Bank owned life insurance
424
418
Gain (loss) on sale of property and equipment
(180)
-
Other
51
65
Total non-interest income
4,815
4,912
Non-interest expense:
Compensation and benefits
15,624
14,685
Occupancy and equipment
3,732
4,046
Data processing
2,281
2,380
Federal deposit insurance premiums
728
904
Marketing
853
300
Professional and outside services
2,390
2,375
Technology
1,024
999
Other
2,993
3,569
Total non-interest expense
29,625
29,258
Income before income taxes
5,122
2,732
Income tax expenses
787
126
Net income
$4,335
$2,606
Earnings per common share:
Basic
$1.01
$0.61
Diluted
$1.00
$0.61
10
Finward Bancorp    Exhibit 99.1
Second Quarter 2026 Financial Results (unaudited)
Loans
As of
(Dollars in thousands)
6/30/2026
3/31/2026
12/31/2025
9/30/2025
6/30/2025
6/30/2026 vs
3/31/2026
6/30/2026 vs
6/30/2025
Residential real estate
$455,882
$445,097
$442,443
$450,007
$457,248
$10,785
2.4%
$(1,366)
(0.3)%
Home equity
55,601
53,855
53,497
51,813
51,112
1,746
3.2%
4,489
8.8%
Commercial real estate
597,364
564,613
555,594
564,558
551,091
32,751
5.8%
46,273
8.4%
Construction and land development
77,710
76,582
77,208
79,678
74,795
1,128
1.5%
2,915
3.9%
Multifamily
180,148
185,824
183,902
192,698
200,440
(5,676)
(3.1)%
(20,292)
(10.1)%
Commercial business
103,281
94,160
99,304
96,192
105,636
9,121
9.7%
(2,355)
(2.2)%
Consumer
2,036
310
870
348
2,347
1,726
556.8%
(311)
(13.3)%
Manufactured homes
22,050
22,981
23,708
24,372
25,146
(931)
(4.1)%
(3,096)
(12.3)%
Government
9,818
9,998
12,298
12,298
14,628
(180)
(1.8)%
(4,810)
(32.9)%
Loans receivable
1,503,890
1,453,420
1,448,824
1,471,964
1,482,443
50,470
3.5%
21,447
1.4%
Net deferred loan origination costs
1,006
1,723
1,606
1,719
2,012
(717)
(41.6)%
(1,006)
(50.0)%
Loan clearing funds
(1,103)
(25)
(43)
91
(177)
(1,078)
4312.0%
(926)
523.2%
Loans receivable, net
$1,503,793
$1,455,118
$1,450,387
$1,473,774
$1,484,278
$48,675
3.3%
$19,515
1.3%
Deposits
As of
(Dollars in thousands)
6/30/2026
3/31/2026
12/31/2025
9/30/2025
6/30/2025
6/30/2026 vs
3/31/2026
6/30/2026 vs
6/30/2025
Checking
$584,901
$587,575
$592,214
$579,760
$593,471
$(2,674)
(0.5)%
$(8,570)
(1.4)%
Savings
247,054
253,408
254,055
257,058
266,070
(6,354)
(2.5)%
(19,016)
(7.1)%
Money market
403,140
389,274
381,111
377,155
352,616
13,866
3.6%
50,524
14.3%
Certificates of deposit
497,449
488,814
499,591
536,673
542,693
8,635
1.8%
(45,244)
(8.3)%
Total deposits
$1,732,544
$1,719,071
$1,726,971
$1,750,646
$1,754,850
$13,473
0.8%
$(22,306)
(1.3)%
11
Finward Bancorp    Exhibit 99.1
Second Quarter 2026 Financial Results (unaudited)
Asset Quality
As of and for the Quarter Ended
(Dollars in thousands)
6/30/2026
3/31/2026
12/31/2025
9/30/2025
6/30/2025
Non-accruing loans
$16,549
$12,371
$11,162
$13,892
$13,526
Accruing loans delinquent more than 90 days
-
-
-
-
145
Securities in non-accrual
1,909
1,891
1,882
1,616
1,616
Foreclosed real estate
-
89
89
-
-
Total nonperforming assets
$18,458
$14,351
$13,133
$15,508
$15,287
Allowance for credit losses (ACL):
ACL specific allowances for collateral
dependent loans
$147
$-
$263
$912
$570
ACL general allowances for loan portfolio
17,547
17,285
17,243
17,065
17,614
Total ACL
$17,694
$17,285
$17,506
$17,977
$18,184
Allowance for Credit Losses
As of and for the Quarter Ended
(Dollars in thousands)
6/30/2026
3/31/2026
12/31/2025
9/30/2025
6/30/2025
Beginning allowance for credit losses
$17,285
$17,506
$17,977
$18,184
$17,955
Provision for (benefit from) loan losses
378
(224)
(170)
61
(185)
Net (charge-offs) recoveries
31
3
(301)
(268)
414
Ending allowance for credit losses
$17,694
$17,285
$17,506
$17,977
$18,184
12
Finward Bancorp    Exhibit 99.1
Second Quarter 2026 Financial Results (unaudited)
Bank-Level Regulatory Capital Requirements
June 30, 2026
Actual (1)
Minimum Required For
Capital Adequacy
Purposes
Minimum Required To Be
Well Capitalized Under Prompt
Corrective Action Regulations
(Dollars in thousands)
Amount
Ratio
Amount
Ratio
Amount
Ratio
Common equity tier 1 capital to risk-
weighted assets
$189,965
11.81%
$72,385
4.50%
$104,557
6.50%
Tier 1 capital to risk-weighted assets
$189,965
11.81%
$96,514
6.00%
$128,685
8.00%
Total capital to risk-weighted assets
$209,575
13.03%
$128,685
8.00%
$160,856
10.00%
Tier 1 leverage ratio
$189,965
9.31%
$81,581
4.00%
$101,976
5.00%
(1) Current quarter ratios are estimated.
13
Finward Bancorp    Exhibit 99.1
Second Quarter 2026 Financial Results (unaudited)
Reconciliation of Non-GAAP Performance Measures
Quarter Ended
(Dollars in thousands, except per share amounts)
6/30/2026
3/31/2026
12/31/2025
9/30/2025
6/30/2025
Tangible Common Ratios
Stockholder's equity (GAAP)
$178,287
$172,400
$174,663
$165,495
$154,253
Less: Goodwill (GAAP)
(22,395)
(22,395)
(22,395)
(22,395)
(22,395)
Less: Other intangibles (GAAP)
(984)
(1,076)
(1,172)
(1,273)
(1,414)
Tangible common equity (non-GAAP)
$154,908
$148,929
$151,096
$141,827
$130,444
Total assets (GAAP)
$2,040,706
$2,015,156
$2,021,181
$2,052,724
$2,057,911
Less: Goodwill (GAAP)
(22,395)
(22,395)
(22,395)
(22,395)
(22,395)
Less: Other intangibles (GAAP)
(984)
(1,076)
(1,172)
(1,273)
(1,414)
Tangible assets (non-GAAP)
$2,017,327
$1,991,685
$1,997,614
$2,029,056
$2,034,102
Shares outstanding - end of quarter
4,333,002
4,330,486
4,326,747
4,327,511
4,324,889
Common book value per share (GAAP)
$41.15
$39.81
$40.37
$38.24
$35.67
Tangible common book value per share (non-GAAP)
$35.75
$34.39
$34.92
$32.77
$30.16
Total equity to total assets (GAAP)
8.74%
8.56%
8.64%
8.06%
7.50%
Tangible common equity to tangible assets (non-GAAP)
7.68%
7.48%
7.56%
6.99%
6.41%
Calculation of net interest margin, taxable-equivalent basis
Net interest income (GAAP)
$15,180
$15,071
$15,042
$14,443
$13,945
Tax-equivalent adjustment on securities and loans (1)
580
582
629
663
674
Net interest income (tax-equivalent basis)
$15,760
$15,653
$15,671
$15,106
$14,619
Total average earning assets
$1,869,793
$1,868,911
$1,889,616
$1,900,066
$1,879,892
Net interest margin
3.25%
3.23%
3.18%
3.04%
2.97%
Net interest margin (tax-equivalent basis)
3.37%
3.35%
3.32%
3.18%
3.11%
Efficiency ratio
Total non-interest expense
$14,857
$14,768
$14,781
$14,097
$14,786
Total revenue
17,578
17,488
16,515
17,356
16,628
Efficiency ratio
84.52%
84.45%
89.50%
81.22%
88.92%
(1) The tax equivalent adjustment represents the increase in net interest income needed to reflect the tax-exempt income from certain investment securities
and loans on tax-equivalent basis using a federal statutory corporate rate of 21%.

Source: View Original Filing on SEC EDGAR

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