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Finward Bancorp (NASDAQ: FNWD) lifts Q1 2026 earnings and margin

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8-K

Rhea-AI Filing Summary

Finward Bancorp reported first-quarter 2026 net income available to common stockholders of $2.2 million, or $0.52 per diluted share, up from $2.0 million, or $0.46, in the prior quarter. Return on equity was 5.00% and return on assets 0.44%.

Net interest margin improved to 3.23%, or 3.35% on a tax-equivalent basis, helped by lower funding costs. Deposits were $1.72 billion, down 0.5% from year-end, with core deposits of $1.2 billion representing 71.6% of total deposits. Loans were stable at $1.45 billion.

Asset quality remained moderate, with non-performing loans of $12.4 million, equal to 0.85% of total loans, and an allowance for credit losses of $17.3 million, or 1.19% of loans. The Bank’s tier 1 leverage ratio was 9.24%. Management highlighted ongoing efficiency efforts, including the planned closure of two branches and a focus on improving core earnings while maintaining strong liquidity of $555 million.

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Insights

Finward shows modest earnings and margin improvement with stable credit quality.

Finward Bancorp increased quarterly net income to $2.2M and earnings of $0.52 per diluted share, with return on equity at 5.00%. The key driver was a higher net interest margin of 3.23%, or 3.35% on a tax-equivalent basis, as funding costs eased.

Balance sheet trends were mixed but controlled. Deposits declined slightly to $1.72B, while loans held near $1.45B. Asset quality metrics remain manageable: non-performing loans are 0.85% of total loans and the allowance for credit losses is 1.19% of loans, giving a coverage ratio near 140%.

Capital and liquidity look solid, with a tier 1 leverage ratio of 9.24% and available liquidity of $555M. Management continues efficiency initiatives, including two planned branch closures, and emphasizes improving core earnings and customer growth within the current operating environment.

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 Q1 2026 $2.2 million Quarter ended March 31, 2026
Diluted EPS Q1 2026 $0.52 per share Quarter ended March 31, 2026
Net interest margin 3.23% Quarter ended March 31, 2026
Deposits $1.72 billion As of March 31, 2026
Loans receivable $1.45 billion Total loans as of March 31, 2026
Non-performing loans ratio 0.85% Non-performing loans to total loans at March 31, 2026
Allowance for credit losses $17.3 million (1.19% of loans) As of March 31, 2026
Tier 1 leverage ratio 9.24% Bank-level capital ratio at March 31, 2026
net interest margin financial
"The net interest margin for the quarter ended March 31, 2026 was 3.23%"
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.
efficiency ratio financial
"Efficiency ratio (non-GAAP) (1) | 84.45% | | 89.50%"
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.
allowance for credit losses financial
"The allowance for credit losses (ACL) on loans totaled $17.3 million at March 31, 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.
tangible common equity financial
"tangible common equity to tangible assets (non-GAAP) was 7.48% at March 31, 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.
non-performing loans financial
"At March 31, 2026, non-performing loans totaled $12.4 million"
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.
tier 1 leverage ratio financial
"The Bank’s tier 1 leverage ratio was 9.24% as of March 31, 2026"
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.
Offering Type earnings_snapshot
Understanding 8-K Material Events →
false000091986400009198642026-04-282026-04-28

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): April 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 April 28, 2026, Finward Bancorp (the “Bancorp”) issued a press release reporting its unaudited financial results for the quarter ended March 31, 2026. A copy of the press release is filed as Exhibit 99.1 to this report and is incorporated herein by reference.
Item 9.01.         Financial Statements and Exhibits.
(d)Exhibits.
99.1
Earnings release for the quarter ended March 31, 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: April 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_rgba.jpg
April 28, 2026 
Finward Bancorp Announces First 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 $2.2 million, or $0.52 per diluted share,
for the quarter ended March 31, 2026, as compared to $2.0 million, or $0.46 per diluted share, for the quarter ended
December 31, 2025. Selected performance metrics are as follows for the periods presented:
Performance Ratios
Quarter ended
3/31/2026
12/31/2025
9/30/2025
6/30/2025
3/31/2025
Return on equity
5.00%
4.66%
8.96%
5.66%
1.17%
Return on assets
0.44%
0.39%
0.68%
0.42%
0.09%
Net interest margin, tax-equivalent  (non-GAAP)
3.35%
3.32%
3.18%
3.11%
2.95%
Non-interest income/average assets
0.48%
0.29%
0.57%
0.53%
0.43%
Non-interest expense/average assets
2.93%
2.90%
2.74%
2.90%
2.81%
Efficiency ratio
84.45%
89.50%
81.22%
88.92%
93.11%
“Results for the quarter reflect continued progress in our efforts to improve profitability, and confirm expected
improvement to our core earnings trajectory. Our focus on loan originations has built a solid loan pipeline, and along with
the repricing of existing loans, is expected to drive net interest margin expansion and further earnings improvement in the
coming quarters.” said Benjamin Bochnowski, Chief Executive Officer. “Actions taken over recent quarters are starting to
translate into stronger operating performance, and this has allowed for a renewed focus on customer growth and service as
the year progresses."
"As part of our efficiency efforts, we announced the planned closure of two branch locations expected to occur early in the
second quarter. Credit quality remains healthy, reserves are appropriate, and the organization remains well positioned to
continue on our path in the current operating environment.”
Highlights of the current period include:
•Net Interest Margin - The net interest margin for the quarter ended March 31, 2026 was 3.23% compared to 3.18%
for the quarter ended December 31, 2025. Net interest margin on a tax-equivalent basis (a non-GAAP measure) for the
quarter ended March 31, 2026 was 3.35%, as compared to 3.32% for the quarter ended December 31, 2025. Net
interest margin increased from the prior quarter primarily due to a favorable reduction in funding costs.
•Funding - As of March 31, 2026, deposits totaled $1.72 billion, a decrease of $7.9 million, or 0.5% compared with
December 31, 2025 balances, which totaled $1.73 billion. As of March 31, 2026, non-interest-bearing deposits totaled
$278.7 million, an increase of $11.3 million. Core deposits totaled $1.2 billion at both March 31, 2026 and
December 31, 2025. Core deposits include checking, savings, and money market accounts and represented 71.6% of
the Bancorp’s total deposits at March 31, 2026. As of March 31, 2026, balances for certificates of deposit totaled
$488.8 million, compared to $499.6 million on December 31, 2025, a decrease of $10.8 million or 2.2%. The decrease
in total portfolio deposits is primarily related to cyclical flows and continued adjustments to deposit pricing. In
addition, as of March 31, 2026, borrowings, federal funds purchased and repurchase agreements totaled $90.8 million,
an increase of $6.1 million or 7.2%, compared to December 31, 2025. The increase in borrowings was primarily
attributable to new FHLB advances during the quarter.
As of March 31, 2026, 72.0% of our deposits are fully FDIC insured, and another 7.5% 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 March 31, 2026, the Bancorp had available liquidity of $555 million including borrowing capacity from
the FHLB and Federal Reserve facilities.
2
Exhibit 99.1
•Securities Portfolio - Securities available for sale balances decreased by $8.5 million to $307.7 million as of
March 31, 2026, compared to $316.2 million as of December 31, 2025. The yield on the securities portfolio decreased
to 2.22% for the three months ended March 31, 2026 from 2.29% for the three months ended December 31, 2025. The
decrease in securities available for sale was primarily attributable to an increase in the negative fair value adjustment
to securities, as well as maturity of certain securities.  The Bank did not sell any securities during the quarter.
•Lending - The Bank’s aggregate loan portfolio totaled $1.45 billion on both March 31, 2026 and December 31, 2025.
During the three months ended March 31, 2026, the Bank originated $37.4 million in new commercial loans,
compared to $45.8 million during the three months ended December 31, 2025, largely as expected given lending
seasonality. At March 31, 2026, the Bancorp’s portfolio loan balances in commercial real estate owner occupied
properties totaled $261.7 million or 18.0% of total loan balances and commercial real estate non-owner occupied
properties totaled $302.9 million or 20.8% of total loan balances. Of the $302.9 million in commercial real estate non-
owner occupied properties balances, loans collateralized by office buildings represented $41.6 million or 2.9% of total
loan balances.
•Asset Quality - At March 31, 2026, non-performing loans totaled $12.4 million, compared to $11.2 million at
December 31, 2025, an increase of $1.2 million or 10.7%. The Bank’s ratio of non-performing loans to total loans was
0.85% at March 31, 2026, compared to 0.77% at December 31, 2025. The Bank’s ratio of non-performing assets to
total assets was 0.71% at March 31, 2026 and 0.65% at December 31, 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 $17.3 million at March 31, 2026, or 1.19% of total loans
receivable, compared to $17.5 million at December 31, 2025, or 1.21% of total loans receivable, a decrease of $221
thousand or 1.26%. The Bank's unused commitment reserve, included in other liabilities, totaled $2.0 million at
March 31, 2026, compared to $1.8 million at December 31, 2025, an increase of $279 thousand or 16.0%.
      For the quarter ended March 31, 2026, the Bank recorded a net provision for credit loss totaling $55 thousand based on
the reduction of certain loan segment balances and other factors within the Bank's ACL modeling. The first quarter's
provision consisted of a $224 thousand reversal for credit losses on loans, and a $279 thousand provision of credit
losses on unused commitments. For the quarter ended March 31, 2026, net loan recoveries totaled $3 thousand,
compared to net loan charge-offs of $301 thousand for the quarter ended December 31, 2025. The allowance for credit
losses as a percentage of non-performing loans, or coverage ratio, was 139.7% at March 31, 2026, compared to
156.8% at December 31, 2025.
•Operating Income and Expenses - Non-interest income as a percentage of average assets was 0.48% for the quarter
ended March 31, 2026, as compared to 0.29% for the quarter ended December 31, 2025. The increase in non-interest
income quarter over quarter was primarily attributable to the $1.6 million in realized losses on the sale of investment
securities during December 2025. Total non-interest expense decreased slightly from the prior quarter, while non-
interest expense as a percentage of average assets was 2.93% for the quarter ended March 31, 2026, as compared to
2.90% for the quarter ended December 31, 2025. The decrease in non-interest expense quarter over quarter was
primarily attributable to lower data processing and technology expenses as well as lower occupancy and equipment
costs. The Bank remains focused on identifying additional operating efficiencies and third-party expense reductions.
•Capital Adequacy - The Bank’s tier 1 leverage ratio was 9.24% as of March 31, 2026 and 8.93% as of December 31,
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 $34.39 at March 31, 2026, down from $34.92 as
of December 31, 2025. Tangible common equity to tangible assets (non-GAAP) was 7.48% at March 31, 2026, down
from 7.56% as of December 31, 2025.
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 25 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
4
Exhibit 99.1
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.
FOR FURTHER INFORMATION
CONTACT SHAREHOLDER SERVICES
(219) 853-7575
5
Finward Bancorp    Exhibit 99.1
First Quarter 2026 Financial Results (unaudited)
Performance Ratios
Quarter Ended
3/31/2026
12/31/2025
9/30/2025
6/30/2025
3/31/2025
Return on equity
5.00%
4.66%
8.96%
5.66%
1.17%
Return on assets
0.44%
0.39%
0.68%
0.42%
0.09%
Yield on loans
5.50%
5.64%
5.49%
5.36%
5.25%
Yield on security investments
2.22%
2.29%
2.40%
2.42%
2.38%
Total yield on earning assets
4.86%
4.96%
4.91%
4.82%
4.71%
Cost of interest-bearing deposits
1.92%
2.09%
2.16%
2.12%
2.17%
Cost of federal funds purchased and repurchase agreements
2.85%
3.12%
3.37%
3.32%
3.35%
Cost of borrowed funds
3.70%
3.70%
3.64%
3.91%
4.12%
Total cost of interest-bearing liabilities
2.00%
2.16%
2.25%
2.22%
2.28%
Net interest margin
3.23%
3.18%
3.04%
2.97%
2.81%
Net interest margin, tax-equivalent (non-GAAP) (1)
3.35%
3.32%
3.18%
3.11%
2.95%
Non-interest income/average assets
0.48%
0.29%
0.57%
0.53%
0.43%
Non-interest expense/average assets
2.93%
2.90%
2.74%
2.90%
2.81%
Efficiency ratio (non-GAAP) (1)
84.45%
89.50%
81.22%
88.92%
93.11%
Non-performing assets to total assets
0.71%
0.65%
0.76%
0.74%
0.69%
Non-performing loans to total loans
0.85%
0.77%
0.94%
0.91%
0.84%
Allowance for credit losses to non-performing loans
139.72%
156.84%
129.41%
133.01%
143.84%
Allowance for credit losses to loans receivable
1.19%
1.21%
1.22%
1.22%
1.20%
Net charge-offs (recoveries) as a percentage of average loans receivable
0.00%
0.08%
0.07%
(0.11%)
0.01%
Basic earnings per share
$0.52
$0.46
$0.82
$0.50
$0.11
Diluted earnings per share
$0.52
$0.46
$0.81
$0.50
$0.11
Weighted average common shares outstanding—basic
4,276,530
4,273,421
4,273,022
4,271,952
4,266,976
Weighted average common shares outstanding—diluted
4,302,206
4,301,462
4,299,007
4,291,319
4,284,496
Stockholders' equity to total assets
8.56%
8.64%
8.06%
7.48%
7.44%
Tangible common equity to tangible assets (non-GAAP) (1)
7.48%
7.56%
6.99%
6.41%
6.34%
Book value per share
$39.81
$40.37
$38.24
$35.67
$35.10
Tangible common book value per share (non-GAAP) (1)
$34.39
$34.92
$32.77
$30.16
$29.55
Closing stock price
$36.30
$35.19
$32.09
$27.62
$29.10
Dividends declared per common share
$0.12
$0.12
$0.12
$0.12
$—
(1)See the reconciliation of these non-GAAP measures to the most directly comparable GAAP measures on pg 12.
6
Finward Bancorp    Exhibit 99.1
First Quarter 2026 Financial Results (unaudited)
Average Balances, Interest, Rates
Quarter Ended
March 31, 2026
December 31, 2025
September 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
$96,250
$949
3.94%
$100,035
$903
3.61%
$90,880
$991
4.36%
Federal funds sold
1,523
11
2.89%
1,113
10
3.59%
1,285
12
3.74%
Securities available-for-sale
318,670
1,771
2.22%
327,747
1,877
2.29%
327,030
1,965
2.40%
Loans receivable
1,445,921
19,871
5.50%
1,454,174
20,496
5.64%
1,474,324
20,246
5.49%
Federal Home Loan Bank stock
6,547
119
7.27%
6,547
126
7.70%
6,547
126
7.70%
Total interest earning assets
1,868,911
$22,721
4.86%
1,889,616
$23,412
4.96%
1,900,066
$23,340
4.91%
Cash and non-interest bearing
deposits in other financial
institutions
21,331
23,385
24,882
Allowance for credit losses
(17,608)
(18,049)
(18,243)
Other non-interest bearing assets
143,452
146,675
152,135
Total assets
$2,016,086
$2,041,627
$2,058,840
LIABILITIES AND
STOCKHOLDERS' EQUITY
Interest-bearing deposits
$1,447,994
$6,959
1.92%
$1,458,748
$7,605
2.09%
$1,478,543
$7,996
2.16%
Federal funds purchased and
repurchase agreements
38,113
272
2.85%
40,968
317
3.10%
46,498
392
3.37%
Borrowed funds
45,334
419
3.70%
48,089
448
3.73%
55,904
509
3.64%
Total interest bearing liabilities
1,531,441
$7,650
2.00%
1,547,805
$8,370
2.16%
1,580,945
$8,897
2.25%
Non-interest bearing deposits
270,626
288,073
285,347
Other non-interest bearing
liabilities
34,588
35,588
36,397
Total liabilities
1,836,655
1,871,466
1,902,689
Total stockholders' equity
179,431
170,161
156,151
Total liabilities and
stockholders' equity
$2,016,086
$2,041,627
$2,058,840
Net interest income
$15,071
$15,042
$14,443
Return on average assets
0.44%
0.39%
0.68%
Return on average equity
5.00%
4.66%
8.96%
Net interest margin
3.23%
3.18%
3.04%
Net interest margin, tax-equivalent
(non-GAAP)(1)
3.35%
3.32%
3.18%
Net interest spread
2.86%
2.80%
2.66%
Ratio of interest-earning assets to
interest-bearing liabilities
1.22x
1.22x
1.20x
(1)See the reconciliation of non-GAAP measures to the most directly comparable GAAP measures on pg 12.
7
Finward Bancorp    Exhibit 99.1
First Quarter 2026 Financial Results (unaudited)
Consolidated Balance Sheets
As of
(Dollars in thousands)
3/31/2026
12/31/2025
9/30/2025
6/30/2025
3/31/2025
ASSETS
Cash and non-interest bearing deposits in other financial institutions
$15,758
$18,265
$19,458
$23,027
$18,563
Interest bearing deposits in other financial institutions
102,997
101,382
84,157
79,976
52,829
Federal funds sold
-
-
563
411
975
Total cash and cash equivalents
118,755
119,647
104,178
103,414
72,367
Securities available-for-sale
307,686
316,227
335,150
327,845
330,127
Loans held-for-sale
-
1,096
2,641
834
2,849
Loans receivable, net of deferred fees and costs
1,455,118
1,450,387
1,473,774
1,484,278
1,491,696
Less: allowance for credit losses
(17,285)
(17,506)
(17,977)
(18,184)
(17,955)
Net loans receivable
1,437,833
1,432,881
1,455,797
1,466,094
1,473,741
Federal Home Loan Bank stock
6,547
6,547
6,547
6,547
6,547
Accrued interest receivable
7,700
7,781
7,585
7,651
7,821
Premises and equipment
44,315
44,976
45,544
46,179
46,680
Cash value of bank owned life insurance
33,786
33,586
33,843
33,932
33,712
Goodwill
22,395
22,395
22,395
22,395
22,395
Other intangible assets
1,076
1,172
1,273
1,414
1,635
Other assets
35,063
34,873
37,771
41,606
41,840
Total assets
$2,015,156
$2,021,181
$2,052,724
$2,057,911
$2,039,714
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Non-interest bearing
$278,705
$267,441
$280,296
$271,172
$281,461
Interest bearing
1,440,366
1,459,530
1,470,350
1,483,678
1,468,923
Total
1,719,071
1,726,971
1,750,646
1,754,850
1,750,384
Federal funds purchased and repurchase agreements
40,815
39,703
48,426
48,331
45,053
Borrowed funds
50,000
45,000
55,000
65,000
56,657
Accrued expenses and other liabilities
32,870
34,844
33,157
35,477
35,813
Total liabilities
1,842,756
1,846,518
1,887,229
1,903,658
1,887,907
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
70,397
70,331
70,233
70,263
70,132
Accumulated other comprehensive loss
(45,713)
(41,662)
(49,266)
(57,560)
(58,244)
Retained earnings
147,716
145,994
144,528
141,550
139,919
Total stockholders' equity
172,400
174,663
165,495
154,253
151,807
Total liabilities and stockholders' equity
$2,015,156
$2,021,181
$2,052,724
$2,057,911
$2,039,714
(1) Shares of common stock issued and outstanding were 4,330,486 at 3/31/2026; 4,326,747 at 12/31/2025; 4,327,511 at 9/30/2025; 4,324,889 at
6/30/2025; and 4,324,485 at 3/31/2025. 
8
Finward Bancorp    Exhibit 99.1
First Quarter 2026 Financial Results (unaudited)
Consolidated Statements of Income
Quarter Ended
(Dollars in thousands, except per share data)
3/31/2026
12/31/2025
9/30/2025
6/30/2025
3/31/2025
Interest income:
Loans
$19,871
$20,496
$20,246
$19,940
$19,655
Securities & short-term investments
2,850
2,916
3,094
2,730
2,686
Total interest income
22,721
23,412
23,340
22,670
22,341
Interest expense:
Deposits
6,959
7,605
7,996
7,780
8,045
Borrowings
691
765
901
945
983
Total interest expense
7,650
8,370
8,897
8,725
9,028
Net interest income
15,071
15,042
14,443
13,945
13,313
Provision for (benefit from) credit losses
55
(84)
(301)
(274)
454
Net interest income after provision for credit losses
15,016
15,126
14,744
14,219
12,859
Non-interest income:
Fees and service charges
1,295
1,485
1,463
1,330
1,109
Wealth management operations
661
659
759
696
619
Gain (loss) on tax credit investment
-
-
23
-
67
Gain (loss) on sale of loans held-for-sale, net
257
346
265
378
230
Gain (loss) on sale of securities, net
-
(1,577)
-
-
-
Bank owned life insurance
201
522
439
220
198
Gain (loss) on sale of property and equipment
-
1
(56)
-
-
Other
3
37
20
59
6
Total non-interest income
2,417
1,473
2,913
2,683
2,229
Non-interest expense:
Compensation and benefits
7,591
7,573
7,330
7,313
7,372
Occupancy and equipment
1,991
2,111
2,004
1,935
2,111
Data processing
1,105
1,465
1,116
1,341
1,039
Marketing
587
230
257
214
86
Federal deposit insurance premiums
381
417
399
471
433
Professional and outside services
1,169
906
945
1,115
1,260
Technology
508
521
549
545
454
Other
1,436
1,558
1,497
1,852
1,717
Total non-interest expense
14,768
14,781
14,097
14,786
14,472
Income before income taxes
2,665
1,818
3,560
2,116
616
Income tax expenses (benefit)
423
(166)
63
(35)
161
Net income
$2,242
$1,984
$3,497
$2,151
$455
Earnings per common share:
Basic
$0.52
$0.46
$0.82
$0.50
$0.11
Diluted
$0.52
$0.46
$0.81
$0.50
$0.11
9
Finward Bancorp    Exhibit 99.1
First Quarter 2026 Financial Results (unaudited)
Loans
As of
(Dollars in thousands)
3/31/2026
12/31/2025
9/30/2025
6/30/2025
3/31/2025
3/31/2026 vs
12/31/2025
3/31/2026 vs
3/31/2025
Residential real estate
$445,097
$442,443
$450,007
$457,248
$458,424
$2,654
0.6%
$(13,327)
(2.9)%
Home equity
53,855
53,497
51,813
51,112
49,752
358
0.7%
4,103
8.2%
Commercial real estate
564,613
555,594
564,558
551,091
554,866
9,019
1.6%
9,747
1.8%
Construction and land development
76,582
77,208
79,678
74,795
86,728
(626)
(0.8)%
(10,146)
(11.7)%
Multifamily
185,824
183,902
192,698
200,440
204,964
1,922
1.0%
(19,140)
(9.3)%
Commercial business
94,160
99,304
96,192
105,636
99,519
(5,144)
(5.2)%
(5,359)
(5.4)%
Consumer
310
870
348
2,347
504
(560)
(64.4)%
(194)
(38.5)%
Manufactured homes
22,981
23,708
24,372
25,146
25,762
(727)
(3.1)%
(2,781)
(10.8)%
Government
9,998
12,298
12,298
14,628
9,279
(2,300)
(18.7)%
719
7.7%
Loans receivable
1,453,420
1,448,824
1,471,964
1,482,443
1,489,798
4,596
0.3%
(36,378)
(2.4)%
Net deferred loan origination costs
1,723
1,606
1,719
2,012
2,209
117
7.3%
(486)
(22.0)%
Loan clearing funds
(25)
(43)
91
(177)
(311)
18
(41.9)%
286
(92.0)%
Loans receivable, net
$1,455,118
$1,450,387
$1,473,774
$1,484,278
$1,491,696
$4,731
0.3%
$(36,578)
(2.5)%
Deposits
As of
(Dollars in thousands)
3/31/2026
12/31/2025
9/30/2025
6/30/2025
3/31/2025
3/31/2026 vs
12/31/2025
3/31/2026 vs
3/31/2025
Checking
$587,575
$592,214
$579,760
$593,471
$589,403
$(4,639)
(0.8)%
$(1,828)
(0.3)%
Savings
253,408
254,055
257,058
266,070
274,028
(647)
(0.3)%
(20,620)
(7.5)%
Money market
389,274
381,111
377,155
352,616
342,106
8,163
2.1%
47,168
13.8%
Certificates of deposit
488,814
499,591
536,673
542,693
544,847
(10,777)
(2.2)%
(56,033)
(10.3)%
Total deposits
$1,719,071
$1,726,971
$1,750,646
$1,754,850
$1,750,384
$(7,900)
(0.5)%
$(31,313)
(1.8)%
10
Finward Bancorp    Exhibit 99.1
First Quarter 2026 Financial Results (unaudited)
Asset Quality
As of and for the Quarter Ended
(Dollars in thousands)
3/31/2026
12/31/2025
9/30/2025
6/30/2025
3/31/2025
Non-accruing loans
$12,371
$11,162
$13,892
$13,526
$12,483
Accruing loans delinquent more than 90 days
-
-
-
145
-
Securities in non-accrual
1,891
1,882
1,616
1,616
1,630
Total nonperforming assets
$14,262
$13,044
$15,508
$15,287
$14,113
Allowance for Credit Losses
As of and for the Quarter Ended
(Dollars in thousands)
3/31/2026
12/31/2025
9/30/2025
6/30/2025
3/31/2025
Beginning allowance for credit losses
$17,506
$17,977
$18,184
$17,955
$16,911
Provision for (benefit from) loan losses
(224)
(170)
61
(185)
1,077
Net (charge-offs) recoveries
3
(301)
(268)
414
(33)
Ending allowance for credit losses
$17,285
$17,506
$17,977
$18,184
$17,955
11
Finward Bancorp    Exhibit 99.1
First Quarter 2026 Financial Results (unaudited)
Bank-Level Regulatory Capital Requirements
March 31, 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
$188,161
11.78%
$71,907
4.50%
$103,865
6.50%
Tier 1 capital to risk-weighted assets
$188,161
11.78%
$95,875
6.00%
$127,834
8.00%
Total capital to risk-weighted assets
$207,477
13.00%
$127,834
8.00%
$159,792
10.00%
Tier 1 leverage ratio
$188,161
9.24%
$81,448
4.00%
$101,810
5.00%
(1) Current quarter ratios are estimated.
12
Finward Bancorp    Exhibit 99.1
First Quarter 2026 Financial Results (unaudited)
Reconciliation of Non-GAAP Performance Measures
Quarter Ended
(Dollars in thousands, except per share amounts)
3/31/2026
12/31/2025
9/30/2025
6/30/2025
3/31/2025
Tangible Common Ratios
Stockholder's equity (GAAP)
$172,400
$174,663
$165,495
$154,253
$151,807
Less: Goodwill (GAAP)
(22,395)
(22,395)
(22,395)
(22,395)
(22,395)
Less: Other intangibles (GAAP)
(1,076)
(1,172)
(1,273)
(1,414)
(1,635)
Tangible common equity (non-GAAP)
$148,929
$151,096
$141,827
$130,444
$127,777
Total assets (GAAP)
$2,015,156
$2,021,181
$2,052,724
$2,057,911
$2,039,714
Less: Goodwill (GAAP)
(22,395)
(22,395)
(22,395)
(22,395)
(22,395)
Less: Other intangibles (GAAP)
(1,076)
(1,172)
(1,273)
(1,414)
(1,635)
Tangible assets (non-GAAP)
$1,991,685
$1,997,614
$2,029,056
$2,034,102
$2,015,684
Shares outstanding - end of quarter
4,330,486
4,326,747
4,327,511
4,324,889
4,324,485
Common book value per share (GAAP)
$39.81
$40.37
$38.24
$35.67
$35.10
Tangible common book value per share (non-GAAP)
$34.39
$34.92
$32.77
$30.16
$29.55
Total equity to total assets (GAAP)
8.56%
8.64%
8.06%
7.50%
7.44%
Tangible common equity to tangible assets (non-GAAP)
7.48%
7.56%
6.99%
6.41%
6.34%
Calculation of net interest margin, taxable-equivalent basis
Net interest income (GAAP)
$15,071
$15,042
$14,443
$13,945
$13,313
Tax-equivalent adjustment on securities and loans (1)
582
629
663
674
670
Net interest income (tax-equivalent basis)
$15,653
$15,671
$15,106
$14,619
$13,983
Total average earning assets
$1,868,911
$1,889,616
$1,900,066
$1,879,892
$1,895,847
Net interest margin
3.23%
3.18%
3.04%
2.97%
2.81%
Net interest margin (tax-equivalent basis)
3.35%
3.32%
3.18%
3.11%
2.95%
Efficiency ratio
Total non-interest expense
$14,768
$14,781
$14,097
$14,786
$14,472
Total revenue
17,488
16,515
17,356
16,628
15,542
Efficiency ratio
84.45%
89.50%
81.22%
88.92%
93.11%
(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

FAQ

How did Finward Bancorp (FNWD) perform in Q1 2026?

Finward Bancorp reported net income of $2.2 million, or $0.52 per diluted share, for Q1 2026. This was up from $2.0 million, or $0.46, in the prior quarter, reflecting better profitability and higher net interest margin.

What happened to Finward Bancorp (FNWD) net interest margin in Q1 2026?

Net interest margin improved to 3.23% in Q1 2026, from 3.18% in Q4 2025. On a tax-equivalent basis, net interest margin rose to 3.35% from 3.32%, mainly due to a favorable reduction in funding costs across deposits and borrowings.

How strong are Finward Bancorp (FNWD) deposits and liquidity as of March 31, 2026?

Total deposits were $1.72 billion, down 0.5% from year-end, with core deposits of $1.2 billion making up 71.6% of deposits. About 72.0% of deposits are fully FDIC insured and another 7.5% covered by Indiana’s fund, supporting liquidity of $555 million.

What is the asset quality picture for Finward Bancorp (FNWD) in Q1 2026?

Non-performing loans totaled $12.4 million, or 0.85% of total loans, at March 31, 2026. The allowance for credit losses was $17.3 million, equal to 1.19% of loans, resulting in coverage of about 139.7% of non-performing loans.

What are Finward Bancorp (FNWD) capital ratios and tangible book value in Q1 2026?

The Bank’s tier 1 leverage ratio was 9.24% at March 31, 2026, exceeding regulatory minimums. Tangible common equity to tangible assets was 7.48%, and tangible book value per share (non-GAAP) was $34.39, slightly lower than $34.92 at December 31, 2025.

Did Finward Bancorp (FNWD) make any strategic or efficiency moves in Q1 2026?

Management highlighted ongoing efficiency efforts and announced the planned closure of two branch locations expected early in Q2. They emphasized improving core earnings, controlling non-interest expense, and maintaining a focus on customer growth and service while managing the current operating environment.

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