Finward Bancorp Announces Earnings for the Nine Months and Quarter Ended September 30, 2023
October 25 2023 - 8:00AM
Finward Bancorp (Nasdaq: FNWD) (the “Bancorp”), the holding company
for Peoples Bank (the “Bank”), today announced that net income
available to common stockholders was $6.9 million, or $1.60 per
diluted share, for the nine months ended September 30, 2023, as
compared to $11.1 million, or $2.67 per diluted share, for the
corresponding prior year period. For the quarter ended September
30, 2023, the Bancorp’s net income totaled $2.2 million, or $0.51
per diluted share, as compared to $4.6 million, or $1.07 per share,
for the quarter ending September 30, 2022. Selected performance
metrics are as follows for the periods presented:
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|
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|
|
Performance Ratios |
Quarter ended, |
|
|
Nine months ended, |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
|
(Unaudited) |
|
(Unaudited) |
|
September 30, |
June 30, |
|
March 31, |
|
December 31, |
September 30, |
September 30, |
September 30, |
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
|
2023 |
|
|
|
2022 |
|
Return on equity |
|
6.55 |
% |
|
|
7.05 |
% |
|
|
6.42 |
% |
|
|
12.96 |
% |
|
|
13.65 |
% |
|
|
|
6.68 |
% |
|
|
9.98 |
% |
Return on assets |
|
0.42 |
% |
|
|
0.46 |
% |
|
|
0.43 |
% |
|
|
0.78 |
% |
|
|
0.88 |
% |
|
|
|
0.44 |
% |
|
|
0.73 |
% |
Noninterest income / average assets |
|
0.46 |
% |
|
|
0.57 |
% |
|
|
0.50 |
% |
|
|
0.56 |
% |
|
|
0.51 |
% |
|
|
|
0.51 |
% |
|
|
0.57 |
% |
Noninterest expense / average assets |
|
2.59 |
% |
|
|
2.66 |
% |
|
|
2.75 |
% |
|
|
3.07 |
% |
|
|
2.90 |
% |
|
|
|
2.67 |
% |
|
|
3.04 |
% |
Efficiency ratio |
|
86.88 |
% |
|
|
82.11 |
% |
|
|
82.35 |
% |
|
|
79.63 |
% |
|
|
74.54 |
% |
|
|
|
83.68 |
% |
|
|
78.72 |
% |
|
“Our customers remain our top priority, as well as the internal
variables of our operations that we control. Operating expense
control continues to show results, and we have been able to
continue to improve credit quality. Internal efforts have resulted
in stronger operations while we manage through the current interest
rate cycle,” said Benjamin Bochnowski, chairman and chief executive
officer. “We recognize the potential for higher-for-longer interest
rates, and are evaluating capital, the balance sheet, and the
margin appropriately. A smaller, more effective bank will be better
suited to endure the interest rate cycle, and our attempts to
shrink the balance sheet are evidenced in our asset levels this
quarter. Finward will continue to evaluate all options to optimize
our profile, while driving capital, earnings, and tangible book
value as we work through the current cycle.”
Highlights of the year-to-date period include:
- Net interest margin - The net interest margin
for the nine months ended September 30, 2023, was 2.89%, compared
to 3.56% for the nine months ended September 30, 2022. The
tax-adjusted net interest margin (a non-GAAP measure) for the nine
months ended September 30, 2023, was 3.04%, compared to 3.75% for
the nine months ended September 30, 2022. The decreased net
interest margin is primarily the result of the increase in
short-term interest rates relative to long-term interest rates as
part of the Federal Reserve’s response to high inflation. We
anticipate the compression seen in the first nine months of the
year could continue, unless target rates decrease, and our
interest-bearing liabilities are able to be repriced at those lower
rates. See Table 1 at the end of this press release for a
reconciliation of the tax-adjusted net interest margin to the GAAP
net interest margin.
- Funding - On September 30, 2023, deposits
totaled $1.784 billion, compared to $1.775 billion on December 31,
2022, an increase of $9.0 million or 0.5%. As of September 30,
2023, core deposits totaled $1.2 billion, compared to $1.4 billion
on December 31, 2022, a decrease of $170.9 million or 12.1%. Core
deposits include checking, savings, and money market accounts and
represented 69.6% of the Bancorp’s total deposits at September 30,
2023. Through the first nine months of 2023, balances for checking
and savings accounts decreased as balances migrated into higher
yielding accounts. On September 30, 2023, balances for certificates
of deposit totaled $543.0 million, compared to $363.1 million on
December 31, 2022, an increase of $179.9 million or 49.5%. The
decrease in core deposits and increase in certificate of deposit
balances is related to customer preferences for higher yielding
deposits. In addition, on September 30, 2023, borrowings and
repurchase agreements totaled $148.3 million, compared to $135.5
million at December 31, 2022, an increase of $12.8 million or 9.5%.
The increase in short-term borrowings was the result of cyclical
inflows and outflows of interest-earning assets and
interest-bearing liabilities. As of September 30, 2023, 73% of our
deposits are fully FDIC insured, and another 8% are further backed
by the Indiana Public Deposit Insurance Fund, an overall increase
of 1% from the amount as of June 30, 2023, of 71% of deposits being
fully FDIC insured, and 9% backed by the Indiana Public Deposit
Insurance Fund. The Bancorp’s liquidity position remains strong
with solid core deposit customer relationships, excess cash, debt
securities, and access to diversified borrowing sources. The
Bancorp has available liquidity of $749 million including borrowing
capacity from the FHLB and Federal Reserve facilities.
- Unrealized losses on the securities portfolio
- Accumulated other comprehensive losses were $78.8
million as of September 30, 2023, compared to $64.3 million on
December 31, 2022, an increase of $14.5 million or 22.6%. The yield
on the securities portfolio improved on a year-to-date basis to
2.39% for the nine months ended September 30, 2023, up from 2.17%
for the nine months ended September 30, 2022. The effective
duration of the securities portfolio was 6.6 years as of September
30, 2023. Management continually monitors the securities portfolio
for restructuring opportunities but has not yet found economically
viable options. Other than potential restructuring, management does
not currently anticipate the need to realize losses from sales in
the securities portfolio, as losses are currently driven by the
interest rate environment and management expects such losses to be
fully recoverable. Further, it remains unlikely the Bank will be
required to sell the investments in the portfolio before recovery
of their amortized cost basis, which may be at maturity.
- Gain on sale of loans - Increases in mortgage
rates have slowed the sale of fixed rate mortgage loans into the
secondary market. As a result, gains from the sale of loans for the
nine months ended September 30, 2023, totaled $729 thousand, down
from $1.2 million for the nine months ended September 30, 2022.
During the nine months ended September 30, 2023, the Bank
originated $30.4 million in new fixed rate mortgage loans for sale,
compared to $40.8 million during the nine months ended September
30, 2022. During the nine months ended September 30, 2023, the Bank
originated $31.8 million in new mortgage loans retained in its
portfolio, compared to $78.8 million during the nine months ended
September 30, 2022. Total mortgage originations for the three-month
period ending September 30, 2023, totaled $25.5 million, an
increase of $2.8 million from the amount for the three-month period
ending June 30, 2023, totaling $22.7 million. This increase was
primarily driven by seasonal demand for mortgages peaking in the
spring and summer months. These retained loans are primarily
construction loans and adjustable-rate loans with a fixed-rate
period of 7 years or less, and the Bank continues to sell
longer-duration fixed rate mortgages into the secondary
market.
- Commercial lending - The Bank’s aggregate loan
portfolio totaled $1.53 billion on September 30, 2023, compared to
$1.51 billion on December 31, 2022, an increase of $12.0 million or
0.8%. The increase is the result of organic loan portfolio growth.
During the nine months ended September 30, 2023, the Bank
originated $186.8 million in new commercial loans, compared to
$296.8 million during the nine months ended September 30, 2022. The
loan portfolio represents 79.2% of earning assets and is comprised
of 62.5% commercial related credits. At September 30, 2023, the
Bancorp’s held loan balances in commercial real estate owner
occupied properties of $217.3 million or 14.2% of total loan
balances and commercial real estate non-owner occupied properties
of $281.2 million of 18.4% of total loan balances. Of the $281.2
million in commercial real estate non-owner occupied properties
balances, loans collateralized by office build represented $41.8
million or 2.7% of total loan balances.
- Asset quality - At September 30, 2023,
non-performing loans totaled $10.1 million, compared to $18.4
million at December 31, 2022, a decrease of $8.3 million or 45.2%.
The Bank’s ratio of non-performing loans to total loans was 0.66%
at September 30, 2023, compared to 1.21% at December 31, 2022. The
Bank’s ratio of non-performing assets to total assets was 0.54% at
September 30, 2023, compared to 0.94% at December 31, 2022. The
decrease in non-performing loans is primarily the result of
management’s strategic non-performing asset management which
includes proactive relationship management and note sales. At
September 30, 2023, the allowance for credit losses (ACL) totaled
$19.4 million and is considered adequate by management. For the
quarter ended September 30, 2023, charge-offs, net of recoveries,
totaled $1.1 million. The allowance for credit losses as a
percentage of total loans was 1.27% at September 30, 2023, and the
allowance for credit losses as a percentage of non-performing
loans, or coverage ratio, was 192.9% at September 30, 2023. On
January 1, 2023, the Bancorp adopted ASU No. 2016-13 resulting in
an implementation entry of $8.3 million, increasing the ACL by $5.2
million and unfunded commitment liability of $3.1 million, and also
resulting in retained earnings decreasing $6.1 million and
generating a deferred tax asset of $2.2 million. The majority of
the implementation entry is related to including acquired loan
portfolios in the model and the addition of using economic
forecasts in estimating future losses. In addition, $1.0 million of
non-accretable credit loan discounts on purchase credit impaired
loans now classified as purchase credit deteriorated were
reallocated to the ACL.
- Operating Expenses: Non-interest expense as a
percent of average assets was 2.67% for the nine months ended
September 30, 2023, as compared to 3.04% for the same period in
2022. Recent branch closures have had a positive impact on this
number. Management also continues to improve efficiency in
personnel and has netted a reduction of 17 full time equivalents,
or 6%, through the nine months ended September 30, 2023.
Compensation and benefits expense is down 4.7% for the nine months
ended September 30, 2023, compared to the same period in 2022.
- Capital Adequacy - As of
September 30, 2023, the Bank’s tier 1 capital to adjusted average
assets ratio totaled 7.8%, an increase of 0.2% from the ratio as of
June 30, 2023, of 7.6%, and is within all regulatory capital
requirements, and continues to be considered well capitalized. The
Bancorp’s tangible book value per share was $21.63 at September 30,
2023, down from $25.41 as of December 31, 2022 (a non-GAAP
measure). Tangible common equity to total assets was 4.46% at
September 30, 2023, down from 5.27% as of December 31, 2022 (a
non-GAAP measure). The decrease is due to increased accumulated
other comprehensive losses compared to year-ended December 31,
2022. Excluding accumulated other comprehensive losses, tangible
book value per share decreased to $39.96 as of September 30, 2023,
from $40.36 as of December 31, 2022 (a non-GAAP measure). The
decrease is related to a reduction of retained earnings of $6.1
million due to the impact of the adoption of ASU No. 2016-13 and
the payment of dividends of $4.0 million. See Table 1 at the end of
this press release for a reconciliation of the tangible book value
per share, tangible book value per share adjusted for accumulated
other losses, tangible capital as a percentage of tangible assets,
and tangible capital as a percentage of tangible assets adjusted
for accumulated other comprehensive losses to the related GAAP
ratios.
Disclosures Regarding Non-GAAP Financial
Measures Reported amounts are presented in accordance with
GAAP. In this press release the Bancorp also is providing certain
financial measures that are 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 losses, tangible book value per share, tangible
book value per share adjusted for accumulated other losses,
tangible common equity/total assets, adjusted net interest margin,
and efficiency ratio, which can vary from period to period,
provides a better comparison of period to period operating
performance. Additionally, the Bancorp believes this information is
utilized by regulators and market analysts to evaluate a company’s
financial condition and, therefore, such information is useful to
investors. These disclosures should not be viewed as a substitute
for financial results in accordance with GAAP, nor are they
necessarily comparable to non-GAAP performance measures which may
be presented by other companies. Refer to Table 1 – Reconciliation
of Non-GAAP Financial Measures at the end of this document for a
reconciliation of the non-GAAP measures identified herein and their
most comparable GAAP measures.
About Finward BancorpFinward Bancorp is a
locally managed and independent financial holding company
headquartered in Munster, Indiana, whose activities are primarily
limited to holding the stock of Peoples Bank. Peoples Bank provides
a wide range of personal, business, electronic and wealth
management financial services from its 26 locations in Lake and
Porter Counties in Northwest Indiana and Chicagoland. Finward
Bancorp’s common stock is quoted on The NASDAQ Stock Market, LLC
under the symbol FNWD. The website ibankpeoples.com provides
information on Peoples Bank’s products and services, and Finward
Bancorp’s investor relations.
Forward Looking StatementsThis press release
may contain forward-looking statements regarding the financial
performance, business prospects, growth and operating strategies of
the Bancorp. For these statements, the Bancorp claims the
protections of the safe harbor for forward-looking statements
contained in the Private Securities Litigation Reform Act of 1995.
Statements in this communication should be considered in
conjunction with the other information available about the Bancorp,
including the information in the filings the Bancorp makes with the
SEC. Forward-looking statements provide current expectations or
forecasts of future events and are not guarantees of future
performance. The forward-looking statements are based on
management’s expectations and are subject to a number of risks and
uncertainties. Forward-looking statements are typically identified
by using words such as “anticipate,” “estimate,” “project,”
“intend,” “plan,” “believe,” “will” and similar expressions in
connection with any discussion of future operating or financial
performance.
Although management believes that the expectations reflected in
such forward-looking statements are reasonable, actual results may
differ materially from those expressed or implied in such
statements. Risks and uncertainties that could cause actual results
to differ materially include: changes in asset quality and credit
risk; the inability to sustain revenue and earnings growth; changes
in interest rates, market liquidity, and capital markets, as well
as the magnitude of such changes, which may reduce net interest
margins; inflation; further deterioration in the market value of
securities held in the Bancorp’s investment securities portfolio,
whether as a result of macroeconomic factors or otherwise; customer
acceptance of the Bancorp’s products and services; customer
borrowing, repayment, investment, and deposit practices; customer
disintermediation; the introduction, withdrawal, success, and
timing of business initiatives; competitive conditions; the
inability to realize cost savings or revenues or to implement
integration plans and other consequences associated with mergers,
acquisitions, and divestitures; economic conditions; and the
impact, extent, and timing of technological changes, capital
management activities, regulatory actions by the Federal Deposit
Insurance Corporation and Indiana Department of Financial
Institutions, and other actions of the Federal Reserve Board and
legislative and regulatory actions and reforms. Additional factors
that could cause actual results to differ materially from those
expressed in the forward-looking statements are discussed in the
Bancorp’s reports (such as the Annual Report on Form 10-K,
Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K)
filed with the SEC and available at the SEC’s Internet website
(www.sec.gov). All subsequent written and oral forward-looking
statements concerning matters attributable to the Bancorp or any
person acting on its behalf are expressly qualified in their
entirety by the cautionary statements above. Except as required by
law, The Bancorp does not undertake any obligation to update any
forward-looking statement to reflect circumstances or events that
occur after the date the forward-looking statement is made.
In addition to the above factors, we also caution that the
actual amounts and timing of any future common stock dividends or
share repurchases will be subject to various factors, including our
capital position, financial performance, capital impacts of
strategic initiatives, market conditions, and regulatory and
accounting considerations, as well as any other factors that our
Board of Directors deems relevant in making such a determination.
Therefore, there can be no assurance that we will repurchase shares
or pay any dividends to holders of our common stock, or as to the
amount of any such repurchases or dividends.
Finward Bancorp |
Quarterly Financial Report |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance Ratios |
Quarter ended, |
|
|
Nine months ended, |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
|
(Unaudited) |
|
(Unaudited) |
|
September 30, |
June 30, |
|
March 31, |
|
December 31, |
September 30, |
September 30, |
September 30, |
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
|
2023 |
|
|
|
2022 |
|
Return on equity |
|
6.55 |
% |
|
|
7.05 |
% |
|
|
6.42 |
% |
|
|
12.96 |
% |
|
|
13.65 |
% |
|
|
|
6.68 |
% |
|
|
9.98 |
% |
Return on assets |
|
0.42 |
% |
|
|
0.46 |
% |
|
|
0.43 |
% |
|
|
0.78 |
% |
|
|
0.88 |
% |
|
|
|
0.44 |
% |
|
|
0.73 |
% |
Yield on loans |
|
5.02 |
% |
|
|
4.91 |
% |
|
|
4.67 |
% |
|
|
4.66 |
% |
|
|
4.34 |
% |
|
|
|
4.87 |
% |
|
|
4.23 |
% |
Yield on security investments |
|
2.41 |
% |
|
|
2.36 |
% |
|
|
2.39 |
% |
|
|
2.44 |
% |
|
|
2.30 |
% |
|
|
|
2.39 |
% |
|
|
2.17 |
% |
Total yield on earning assets |
|
4.51 |
% |
|
|
4.43 |
% |
|
|
4.22 |
% |
|
|
4.21 |
% |
|
|
3.88 |
% |
|
|
|
4.39 |
% |
|
|
3.69 |
% |
Cost of deposits |
|
1.95 |
% |
|
|
1.66 |
% |
|
|
1.14 |
% |
|
|
0.57 |
% |
|
|
0.23 |
% |
|
|
|
1.58 |
% |
|
|
0.15 |
% |
Cost of repurchase agreements |
|
3.83 |
% |
|
|
3.78 |
% |
|
|
2.65 |
% |
|
|
2.06 |
% |
|
|
0.98 |
% |
|
|
|
3.59 |
% |
|
|
0.59 |
% |
Cost of borrowed funds |
|
4.48 |
% |
|
|
4.53 |
% |
|
|
4.74 |
% |
|
|
5.19 |
% |
|
|
2.52 |
% |
|
|
|
4.58 |
% |
|
|
1.71 |
% |
Total cost of funds |
|
2.16 |
% |
|
|
1.89 |
% |
|
|
1.41 |
% |
|
|
0.81 |
% |
|
|
0.27 |
% |
|
|
|
1.82 |
% |
|
|
0.16 |
% |
Noninterest income / average assets |
|
0.46 |
% |
|
|
0.57 |
% |
|
|
0.50 |
% |
|
|
0.56 |
% |
|
|
0.51 |
% |
|
|
|
0.51 |
% |
|
|
0.57 |
% |
Noninterest expense / average assets |
|
2.59 |
% |
|
|
2.66 |
% |
|
|
2.75 |
% |
|
|
3.07 |
% |
|
|
2.90 |
% |
|
|
|
2.67 |
% |
|
|
3.04 |
% |
Net noninterest margin / average assets |
|
-2.13 |
% |
|
|
-2.09 |
% |
|
|
-2.25 |
% |
|
|
-2.52 |
% |
|
|
-2.39 |
% |
|
|
|
-2.16 |
% |
|
|
-2.47 |
% |
Efficiency ratio |
|
86.88 |
% |
|
|
82.11 |
% |
|
|
82.35 |
% |
|
|
79.63 |
% |
|
|
74.54 |
% |
|
|
|
83.68 |
% |
|
|
78.72 |
% |
Effective tax rate |
|
-22.20 |
% |
|
|
3.86 |
% |
|
|
12.53 |
% |
|
|
1.12 |
% |
|
|
11.14 |
% |
|
|
|
0.30 |
% |
|
|
11.41 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-performing assets to total assets |
|
0.54 |
% |
|
|
0.62 |
% |
|
|
1.02 |
% |
|
|
0.94 |
% |
|
|
0.58 |
% |
|
|
|
0.54 |
% |
|
|
0.58 |
% |
Non-performing loans to total loans |
|
0.66 |
% |
|
|
0.80 |
% |
|
|
1.34 |
% |
|
|
1.21 |
% |
|
|
0.73 |
% |
|
|
|
0.66 |
% |
|
|
0.73 |
% |
Allowance for credit losses to non-performing loans |
|
192.89 |
% |
|
|
158.26 |
% |
|
|
96.15 |
% |
|
|
70.18 |
% |
|
|
122.64 |
% |
|
|
|
192.89 |
% |
|
|
122.64 |
% |
Allowance for credit losses to loans outstanding |
|
1.27 |
% |
|
|
1.27 |
% |
|
|
1.29 |
% |
|
|
0.85 |
% |
|
|
0.89 |
% |
|
|
|
1.27 |
% |
|
|
0.89 |
% |
Foreclosed real estate to total assets |
|
0.00 |
% |
|
|
0.00 |
% |
|
|
0.00 |
% |
|
|
0.00 |
% |
|
|
0.00 |
% |
|
|
|
0.00 |
% |
|
|
0.00 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share |
$ |
0.52 |
|
|
$ |
0.57 |
|
|
$ |
0.52 |
|
|
$ |
0.93 |
|
|
$ |
1.07 |
|
|
|
$ |
1.60 |
|
|
$ |
2.68 |
|
Diluted earnings per share |
$ |
0.51 |
|
|
$ |
0.57 |
|
|
$ |
0.51 |
|
|
$ |
0.93 |
|
|
$ |
1.07 |
|
|
|
$ |
1.60 |
|
|
$ |
2.67 |
|
Net worth / total assets |
|
5.70 |
% |
|
|
6.33 |
% |
|
|
6.66 |
% |
|
|
6.59 |
% |
|
|
5.75 |
% |
|
|
|
5.70 |
% |
|
|
5.75 |
% |
Book value per share |
$ |
27.68 |
|
|
$ |
31.77 |
|
|
$ |
32.47 |
|
|
$ |
31.73 |
|
|
$ |
27.46 |
|
|
|
$ |
27.68 |
|
|
$ |
27.46 |
|
Closing stock price |
$ |
22.00 |
|
|
$ |
22.00 |
|
|
$ |
29.10 |
|
|
$ |
36.20 |
|
|
$ |
34.01 |
|
|
|
$ |
22.00 |
|
|
$ |
34.01 |
|
Price per earnings per share |
$ |
10.67 |
|
|
$ |
9.59 |
|
|
$ |
14.10 |
|
|
$ |
9.70 |
|
|
$ |
7.92 |
|
|
|
$ |
10.28 |
|
|
$ |
9.53 |
|
Dividend declared per common share |
$ |
0.31 |
|
|
$ |
0.31 |
|
|
$ |
0.31 |
|
|
$ |
0.31 |
|
|
$ |
0.31 |
|
|
|
$ |
0.93 |
|
|
$ |
0.93 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common equity tier 1 capital to risk-weighted assets |
|
10.2 |
% |
|
|
10.0 |
% |
|
|
10.0 |
% |
|
|
10.0 |
% |
|
|
9.8 |
% |
|
|
|
10.2 |
% |
|
|
9.8 |
% |
Tier 1 capital to risk-weighted assets |
|
10.2 |
% |
|
|
10.0 |
% |
|
|
10.0 |
% |
|
|
10.0 |
% |
|
|
9.8 |
% |
|
|
|
10.2 |
% |
|
|
9.8 |
% |
Total capital to risk-weighted assets |
|
11.2 |
% |
|
|
11.0 |
% |
|
|
11.0 |
% |
|
|
10.9 |
% |
|
|
10.7 |
% |
|
|
|
11.2 |
% |
|
|
10.7 |
% |
Tier 1 capital to adjusted average assets |
|
7.8 |
% |
|
|
7.6 |
% |
|
|
7.7 |
% |
|
|
7.7 |
% |
|
|
7.5 |
% |
|
|
|
7.8 |
% |
|
|
7.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Performance Ratios |
Quarter ended, |
|
|
Nine months ended, |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
|
(Unaudited) |
|
(Unaudited) |
|
September 30, |
June 30, |
|
March 31, |
|
December 31, |
September 30, |
September 30, |
September 30, |
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
|
2023 |
|
|
|
2022 |
|
Net interest margin - tax equivalent |
|
2.87 |
% |
|
|
3.03 |
% |
|
|
3.23 |
% |
|
|
3.73 |
% |
|
|
3.84 |
% |
|
|
|
3.04 |
% |
|
|
3.75 |
% |
Tangible book value per diluted share |
$ |
21.63 |
|
|
$ |
25.64 |
|
|
$ |
26.24 |
|
|
$ |
25.41 |
|
|
$ |
20.99 |
|
|
|
$ |
21.63 |
|
|
$ |
20.99 |
|
Tangible book value per diluted share adjusted for AOCI |
$ |
39.96 |
|
|
$ |
39.62 |
|
|
$ |
39.23 |
|
|
$ |
40.36 |
|
|
$ |
39.57 |
|
|
|
$ |
39.96 |
|
|
$ |
39.57 |
|
Tangible common equity to total assets |
|
4.46 |
% |
|
|
5.11 |
% |
|
|
5.38 |
% |
|
|
5.27 |
% |
|
|
4.39 |
% |
|
|
|
4.46 |
% |
|
|
4.39 |
% |
Tangible common equity to total assets adjusted for AOCI |
|
8.23 |
% |
|
|
7.89 |
% |
|
|
8.05 |
% |
|
|
8.38 |
% |
|
|
8.28 |
% |
|
|
|
8.23 |
% |
|
|
8.28 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands) |
Average Balances, Interest, and Rates |
|
(unaudited) |
September 30, 2023 |
|
September 30, 2022 |
|
|
Average Balance |
|
Interest |
|
|
Rate (%) |
|
|
Average Balance |
|
Interest |
|
Rate (%) |
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest bearing deposits in other financial institutions |
$ |
33,201 |
|
|
$ |
347 |
|
|
|
4.18 |
|
|
$ |
24,732 |
|
|
$ |
110 |
|
|
|
1.78 |
|
Federal funds sold |
|
930 |
|
|
|
11 |
|
|
|
4.73 |
|
|
|
1,579 |
|
|
|
6 |
|
|
|
1.52 |
|
Certificates of deposit in other financial institutions |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1,899 |
|
|
|
9 |
|
|
|
1.90 |
|
Securities available-for-sale |
|
362,981 |
|
|
|
2,191 |
|
|
|
2.41 |
|
|
|
394,796 |
|
|
|
2,271 |
|
|
|
2.30 |
|
Loans receivable* |
|
1,526,459 |
|
|
|
19,161 |
|
|
|
5.02 |
|
|
|
1,484,678 |
|
|
|
16,122 |
|
|
|
4.34 |
|
Federal Home Loan Bank stock |
|
6,547 |
|
|
|
55 |
|
|
|
3.36 |
|
|
|
3,038 |
|
|
|
21 |
|
|
|
2.76 |
|
Total interest earning assets |
|
1,930,118 |
|
|
$ |
21,765 |
|
|
|
4.51 |
|
|
|
1,910,722 |
|
|
$ |
18,539 |
|
|
|
3.88 |
|
Cash and non-interest bearing deposits in other financial
institutions |
|
19,116 |
|
|
|
|
|
|
|
|
|
21,954 |
|
|
|
|
|
|
Allowance for credit losses |
|
(19,684 |
) |
|
|
|
|
|
|
|
|
(13,487 |
) |
|
|
|
|
|
Other noninterest bearing assets |
|
154,221 |
|
|
|
|
|
|
|
|
|
149,950 |
|
|
|
|
|
|
Total assets |
$ |
2,083,771 |
|
|
|
|
|
|
|
|
$ |
2,069,139 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits |
$ |
1,451,820 |
|
|
$ |
7,066 |
|
|
|
1.95 |
|
|
$ |
1,487,630 |
|
|
$ |
871 |
|
|
|
0.23 |
|
Repurchase agreements |
|
46,025 |
|
|
|
441 |
|
|
|
3.83 |
|
|
|
20,781 |
|
|
|
51 |
|
|
|
0.98 |
|
Borrowed funds |
|
101,683 |
|
|
|
1,138 |
|
|
|
4.48 |
|
|
|
17,456 |
|
|
|
110 |
|
|
|
2.52 |
|
Total interest bearing liabilities |
|
1,599,528 |
|
|
$ |
8,645 |
|
|
|
2.16 |
|
|
|
1,525,867 |
|
|
$ |
1,032 |
|
|
|
0.27 |
|
Non-interest bearing deposits |
|
316,084 |
|
|
|
|
|
|
|
|
|
386,332 |
|
|
|
|
|
|
Other noninterest bearing liabilities |
|
34,332 |
|
|
|
|
|
|
|
|
|
23,458 |
|
|
|
|
|
|
Total liabilities |
|
1,949,944 |
|
|
|
|
|
|
|
|
|
1,935,657 |
|
|
|
|
|
|
Total stockholders' equity |
|
133,827 |
|
|
|
|
|
|
|
|
|
133,482 |
|
|
|
|
|
|
Total liabilities and stockholders' equity |
$ |
2,083,771 |
|
|
|
|
|
|
|
|
$ |
2,069,139 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets |
|
0.42 |
% |
|
|
|
|
|
|
|
|
0.88 |
% |
|
|
|
|
|
Return on average equity |
|
6.55 |
% |
|
|
|
|
|
|
|
|
13.65 |
% |
|
|
|
|
|
Net interest margin (average earning assets) |
|
2.72 |
% |
|
|
|
|
|
|
|
|
|
|
3.67 |
% |
|
|
|
|
|
|
|
Net interest margin (average earning assets) - tax equivalent |
|
2.87 |
% |
|
|
|
|
|
|
|
|
3.84 |
% |
|
|
|
|
|
Net interest spread |
|
2.35 |
% |
|
|
|
|
|
|
|
|
3.61 |
% |
|
|
|
|
|
|
Ratio of interest-earning assets to interest-bearing
liabilities |
1.21x |
|
|
|
|
|
|
|
1.25x |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year-to-Date |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands) |
Average Balances, Interest, and Rates |
|
(unaudited) |
September 30, 2023 |
|
September 30, 2022 |
|
|
Average Balance |
|
Interest |
|
|
Rate (%) |
|
|
Average Balance |
|
Interest |
|
Rate (%) |
|
ASSETS |
|
|
` |
|
|
|
|
|
|
|
` |
|
|
|
Interest bearing deposits in other financial institutions |
$ |
31,171 |
|
|
$ |
1,112 |
|
|
|
4.76 |
|
|
$ |
24,268 |
|
|
$ |
163 |
|
|
|
0.90 |
|
Federal funds sold |
|
1,158 |
|
|
|
38 |
|
|
|
4.38 |
|
|
|
3,561 |
|
|
|
8 |
|
|
|
0.30 |
|
Certificates of deposit in other financial institutions |
|
1,169 |
|
|
|
44 |
|
|
|
5.02 |
|
|
|
1,750 |
|
|
|
15 |
|
|
|
1.14 |
|
Securities available-for-sale |
|
369,897 |
|
|
|
6,631 |
|
|
|
2.39 |
|
|
|
447,319 |
|
|
|
7,295 |
|
|
|
2.17 |
|
Loans receivable* |
|
1,519,981 |
|
|
|
55,481 |
|
|
|
4.87 |
|
|
|
1,406,591 |
|
|
|
44,629 |
|
|
|
4.23 |
|
Federal Home Loan Bank stock |
|
6,547 |
|
|
|
221 |
|
|
|
4.50 |
|
|
|
3,364 |
|
|
|
63 |
|
|
|
2.50 |
|
Total interest earning assets |
|
1,929,923 |
|
|
$ |
63,527 |
|
|
|
4.39 |
|
|
|
1,886,853 |
|
|
$ |
52,173 |
|
|
|
3.69 |
|
Cash and non-interest bearing deposits in other financial
institutions |
|
18,723 |
|
|
|
|
|
|
|
|
|
21,279 |
|
|
|
|
|
|
Allowance for loan losses |
|
(17,619 |
) |
|
|
|
|
|
|
|
|
(13,418 |
) |
|
|
|
|
|
Other noninterest bearing assets |
|
154,227 |
|
|
|
|
|
|
|
|
|
142,254 |
|
|
|
|
|
|
Total assets |
$ |
2,085,254 |
|
|
|
|
|
|
|
|
$ |
2,036,968 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits |
$ |
1,455,410 |
|
|
$ |
17,258 |
|
|
|
1.58 |
|
|
$ |
1,464,008 |
|
|
$ |
1,597 |
|
|
|
0.15 |
|
Repurchase agreements |
|
33,170 |
|
|
|
892 |
|
|
|
3.59 |
|
|
|
20,935 |
|
|
|
93 |
|
|
|
0.59 |
|
Borrowed funds |
|
102,864 |
|
|
|
3,537 |
|
|
|
4.58 |
|
|
|
11,175 |
|
|
|
143 |
|
|
|
1.71 |
|
Total interest bearing liabilities |
|
1,591,444 |
|
|
|
21,687 |
|
|
|
1.82 |
|
|
|
1,496,118 |
|
|
$ |
1,833 |
|
|
|
0.16 |
|
Non-interest bearing deposits |
|
326,431 |
|
|
|
|
|
|
|
|
|
369,704 |
|
|
|
|
|
|
Other noninterest bearing liabilities |
|
30,178 |
|
|
|
|
|
|
|
|
|
22,510 |
|
|
|
|
|
|
Total liabilities |
|
1,948,053 |
|
|
|
|
|
|
|
|
|
1,888,332 |
|
|
|
|
|
|
Total stockholders' equity |
|
137,201 |
|
|
|
|
|
|
|
|
|
148,636 |
|
|
|
|
|
|
Total liabilities and stockholders' equity |
$ |
2,085,254 |
|
|
|
|
|
|
|
|
$ |
2,036,968 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets |
|
0.44 |
% |
|
|
|
|
|
|
|
|
0.73 |
% |
|
|
|
|
|
Return on average equity |
|
6.68 |
% |
|
|
|
|
|
|
|
|
9.98 |
% |
|
|
|
|
|
Net interest margin (average earning assets) |
|
2.89 |
% |
|
|
|
|
|
|
|
|
|
|
3.56 |
% |
|
|
|
|
|
|
|
Net interest margin (average earning assets) - tax equivalent |
|
3.04 |
% |
|
|
|
|
|
|
|
|
3.75 |
% |
|
|
|
|
|
Net interest spread |
|
2.57 |
% |
|
|
|
|
|
|
|
|
3.52 |
% |
|
|
|
|
|
|
Ratio of interest-earning assets to interest-bearing
liabilities |
1.21x |
|
|
|
|
|
|
|
1.26x |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Finward Bancorp |
Quarterly Financial Report |
|
|
|
|
|
|
|
|
|
|
Balance Sheet Data |
|
|
|
|
|
|
|
|
|
(Dollars in thousands) |
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
|
|
(Unaudited) |
|
September 30, |
June 30, |
|
March 31, |
|
December 31, |
September 30, |
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2022 |
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and non-interest bearing deposits in other financial
institutions |
$ |
17,922 |
|
|
$ |
23,210 |
|
|
$ |
33,785 |
|
|
$ |
19,965 |
|
|
$ |
26,463 |
|
Interest bearing deposits in other financial institutions |
|
52,875 |
|
|
|
89,706 |
|
|
|
20,342 |
|
|
|
11,210 |
|
|
|
11,151 |
|
|
|
|
|
|
|
|
|
|
|
Total cash and cash equivalents |
|
71,648 |
|
|
|
115,673 |
|
|
|
54,781 |
|
|
|
31,282 |
|
|
|
38,296 |
|
|
|
|
|
|
|
|
|
|
|
Certificates of deposit in other financial institutions |
|
- |
|
|
|
- |
|
|
|
2,452 |
|
|
|
2,456 |
|
|
|
2,214 |
|
|
|
|
|
|
|
|
|
|
|
Securities available-for-sale |
|
339,280 |
|
|
|
368,136 |
|
|
|
377,901 |
|
|
|
370,896 |
|
|
|
359,035 |
|
Securities held-to-maturity |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Loans held-for-sale |
|
2,057 |
|
|
|
1,832 |
|
|
|
1,672 |
|
|
|
1,543 |
|
|
|
997 |
|
Loans receivable, net of deferred fees and costs |
|
1,525,660 |
|
|
|
1,534,161 |
|
|
|
1,521,089 |
|
|
|
1,513,631 |
|
|
|
1,502,696 |
|
Less: allowance for credit losses (1) |
|
(19,430 |
) |
|
|
(19,507 |
) |
|
|
(19,568 |
) |
|
|
(12,897 |
) |
|
|
(13,398 |
) |
Net loans receivable |
|
1,506,230 |
|
|
|
1,514,654 |
|
|
|
1,501,521 |
|
|
|
1,500,734 |
|
|
|
1,489,298 |
|
Accrued interest receivable |
|
7,864 |
|
|
|
7,714 |
|
|
|
7,717 |
|
|
|
7,421 |
|
|
|
6,849 |
|
Premises and equipment |
|
38,810 |
|
|
|
39,204 |
|
|
|
39,732 |
|
|
|
40,212 |
|
|
|
43,865 |
|
Foreclosed real estate |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Cash value of bank owned life insurance |
|
32,509 |
|
|
|
32,316 |
|
|
|
32,115 |
|
|
|
31,936 |
|
|
|
31,754 |
|
Goodwill |
|
22,395 |
|
|
|
22,395 |
|
|
|
22,395 |
|
|
|
22,395 |
|
|
|
22,615 |
|
Other intangible assets |
|
3,636 |
|
|
|
4,015 |
|
|
|
4,402 |
|
|
|
4,794 |
|
|
|
5,188 |
|
Other assets |
|
56,494 |
|
|
|
48,732 |
|
|
|
47,357 |
|
|
|
50,123 |
|
|
|
49,837 |
|
|
|
|
|
|
|
|
|
|
|
Total assets |
$ |
2,087,470 |
|
|
$ |
2,161,218 |
|
|
$ |
2,098,592 |
|
|
$ |
2,070,339 |
|
|
$ |
2,052,986 |
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
Non-interest bearing |
$ |
312,635 |
|
|
$ |
315,671 |
|
|
$ |
330,057 |
|
|
$ |
359,092 |
|
|
$ |
386,137 |
|
Interest bearing |
|
1,471,402 |
|
|
|
1,479,476 |
|
|
|
1,476,053 |
|
|
|
1,415,925 |
|
|
|
1,446,827 |
|
Total |
|
1,784,037 |
|
|
|
1,795,147 |
|
|
|
1,806,110 |
|
|
|
1,775,017 |
|
|
|
1,832,964 |
|
Repurchase agreements |
|
48,310 |
|
|
|
46,402 |
|
|
|
28,423 |
|
|
|
15,503 |
|
|
|
21,966 |
|
Borrowed funds |
|
100,000 |
|
|
|
150,000 |
|
|
|
100,000 |
|
|
|
120,000 |
|
|
|
56,174 |
|
Accrued expenses and other liabilities |
|
36,080 |
|
|
|
32,919 |
|
|
|
24,323 |
|
|
|
23,426 |
|
|
|
23,859 |
|
|
|
|
|
|
|
|
|
|
|
Total liabilities |
|
1,968,427 |
|
|
|
2,024,468 |
|
|
|
1,958,856 |
|
|
|
1,933,946 |
|
|
|
1,934,963 |
|
|
|
|
|
|
|
|
|
|
|
Commitments and contingencies |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred stock, no par or stated value; |
|
|
|
|
|
|
|
|
|
10,000,000 shares authorized, none outstanding |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Common stock, no par or stated value |
|
- |
|
|
|
- |
|
|
|
|
|
- |
|
|
|
Additional paid-in capital |
|
69,482 |
|
|
|
69,384 |
|
|
|
69,182 |
|
|
|
69,032 |
|
|
|
68,826 |
|
Accumulated other comprehensive loss |
|
(78,848 |
) |
|
|
(60,185 |
) |
|
|
(55,895 |
) |
|
|
(64,300 |
) |
|
|
(79,839 |
) |
Retained earnings |
|
128,409 |
|
|
|
127,551 |
|
|
|
126,449 |
|
|
|
131,661 |
|
|
|
129,036 |
|
|
|
|
|
|
|
|
|
|
|
Total stockholders' equity |
|
119,043 |
|
|
|
136,750 |
|
|
|
139,736 |
|
|
|
136,393 |
|
|
|
118,023 |
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and stockholders' equity |
$ |
2,087,470 |
|
|
$ |
2,161,218 |
|
|
$ |
2,098,592 |
|
|
$ |
2,070,339 |
|
|
$ |
2,052,986 |
|
Finward Bancorp |
|
Quarterly Financial Report |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Statements of Income |
Quarter ended, |
|
|
Nine months Ended, |
|
(Dollars in thousands) |
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
|
(Unaudited) |
|
(Unaudited) |
|
|
September 30, |
June 30, |
|
March 31, |
|
December 31, |
September 30, |
|
September 30, |
September 30, |
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Interest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans |
$ |
19,161 |
|
|
$ |
18,694 |
|
|
$ |
17,626 |
|
|
$ |
17,504 |
|
|
$ |
16,122 |
|
|
$ |
55,481 |
|
|
$ |
44,629 |
|
Securities & short-term investments |
|
2,617 |
|
|
|
2,919 |
|
|
|
2,510 |
|
|
|
2,358 |
|
|
|
2,417 |
|
|
|
8,046 |
|
|
|
7,544 |
|
Total interest income |
|
21,778 |
|
|
|
21,613 |
|
|
|
20,136 |
|
|
|
19,862 |
|
|
|
18,539 |
|
|
|
63,527 |
|
|
|
52,173 |
|
Interest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
7,066 |
|
|
|
6,105 |
|
|
|
4,087 |
|
|
|
2,007 |
|
|
|
871 |
|
|
|
17,258 |
|
|
|
1,597 |
|
Borrowings |
|
1,579 |
|
|
|
1,469 |
|
|
|
1,381 |
|
|
|
1,046 |
|
|
|
161 |
|
|
|
4,429 |
|
|
|
236 |
|
Total interest expense |
|
8,645 |
|
|
|
7,574 |
|
|
|
5,468 |
|
|
|
3,053 |
|
|
|
1,032 |
|
|
|
21,687 |
|
|
|
1,833 |
|
Net interest income |
|
13,133 |
|
|
|
14,039 |
|
|
|
14,668 |
|
|
|
16,809 |
|
|
|
17,507 |
|
|
|
41,840 |
|
|
|
50,340 |
|
Provision for credit losses |
|
244 |
|
|
|
514 |
|
|
|
488 |
|
|
|
- |
|
|
|
- |
|
|
|
1,246 |
|
|
|
- |
|
Net interest income after provision for credit losses |
|
12,889 |
|
|
|
13,525 |
|
|
|
14,180 |
|
|
|
16,809 |
|
|
|
17,507 |
|
|
|
40,594 |
|
|
|
50,340 |
|
Noninterest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fees and service charges |
|
1,374 |
|
|
|
1,832 |
|
|
|
1,311 |
|
|
|
1,823 |
|
|
|
1,570 |
|
|
|
4,517 |
|
|
|
4,434 |
|
Wealth management operations |
|
572 |
|
|
|
626 |
|
|
|
614 |
|
|
|
523 |
|
|
|
407 |
|
|
|
1,812 |
|
|
|
1,590 |
|
Gain on sale of loans held-for-sale, net |
|
192 |
|
|
|
274 |
|
|
|
263 |
|
|
|
126 |
|
|
|
344 |
|
|
|
729 |
|
|
|
1,242 |
|
Increase in cash value of bank owned life insurance |
|
193 |
|
|
|
201 |
|
|
|
179 |
|
|
|
182 |
|
|
|
183 |
|
|
|
573 |
|
|
|
628 |
|
(Loss) gain on sale of foreclosed real estate, net |
|
2 |
|
|
|
(15 |
) |
|
|
- |
|
|
|
16 |
|
|
|
- |
|
|
|
(13 |
) |
|
|
- |
|
(Loss) gain on sale of securities, net |
|
- |
|
|
|
(48 |
) |
|
|
- |
|
|
|
- |
|
|
|
23 |
|
|
|
(48 |
) |
|
|
662 |
|
Other |
|
64 |
|
|
|
136 |
|
|
|
241 |
|
|
|
169 |
|
|
|
103 |
|
|
|
441 |
|
|
|
114 |
|
Total noninterest income |
|
2,397 |
|
|
|
3,006 |
|
|
|
2,608 |
|
|
|
2,839 |
|
|
|
2,630 |
|
|
|
8,011 |
|
|
|
8,670 |
|
Noninterest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and benefits |
|
6,729 |
|
|
|
7,098 |
|
|
|
7,538 |
|
|
|
6,587 |
|
|
|
7,498 |
|
|
|
21,365 |
|
|
|
22,403 |
|
Occupancy and equipment |
|
1,711 |
|
|
|
1,636 |
|
|
|
1,690 |
|
|
|
1,752 |
|
|
|
1,212 |
|
|
|
5,037 |
|
|
|
5,033 |
|
Data processing |
|
1,085 |
|
|
|
1,407 |
|
|
|
973 |
|
|
|
1,238 |
|
|
|
1,804 |
|
|
|
3,465 |
|
|
|
5,512 |
|
Federal deposit insurance premiums |
|
474 |
|
|
|
572 |
|
|
|
465 |
|
|
|
279 |
|
|
|
350 |
|
|
|
1,511 |
|
|
|
949 |
|
Marketing |
|
235 |
|
|
|
159 |
|
|
|
255 |
|
|
|
284 |
|
|
|
587 |
|
|
|
649 |
|
|
|
1,623 |
|
Impairment charge on assets held for sale |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1,232 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Net loss recognized on sale of premises and equipment |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
49 |
|
|
|
254 |
|
|
|
- |
|
|
|
254 |
|
Other |
|
3,259 |
|
|
|
3,123 |
|
|
|
3,306 |
|
|
|
4,224 |
|
|
|
3,305 |
|
|
|
9,688 |
|
|
|
10,681 |
|
Total noninterest expense |
|
13,493 |
|
|
|
13,995 |
|
|
|
14,227 |
|
|
|
15,645 |
|
|
|
15,010 |
|
|
|
41,715 |
|
|
|
46,455 |
|
Income before income taxes |
|
1,793 |
|
|
|
2,536 |
|
|
|
2,561 |
|
|
|
4,003 |
|
|
|
5,127 |
|
|
|
6,890 |
|
|
|
12,555 |
|
Income tax expenses |
|
(398 |
) |
|
|
98 |
|
|
|
321 |
|
|
|
45 |
|
|
|
571 |
|
|
|
21 |
|
|
|
1,433 |
|
Net income |
$ |
2,191 |
|
|
$ |
2,438 |
|
|
$ |
2,240 |
|
|
$ |
3,958 |
|
|
$ |
4,556 |
|
|
$ |
6,869 |
|
|
$ |
11,122 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
0.52 |
|
|
|
0.57 |
|
|
|
0.52 |
|
|
|
0.93 |
|
|
|
1.07 |
|
|
|
1.60 |
|
|
|
2.68 |
|
Diluted |
|
0.51 |
|
|
|
0.57 |
|
|
|
0.51 |
|
|
|
0.93 |
|
|
|
1.07 |
|
|
|
1.60 |
|
|
|
2.67 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Finward Bancorp |
|
Quarterly Financial Report |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Quality |
|
(Unaudited) |
|
(Unaudited) |
|
|
|
(Unaudited) |
|
(Unaudited) |
|
(Dollars in thousands) |
September 30, |
June 30, |
|
March 31, |
|
December 31, |
September 30, |
|
|
|
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2022 |
|
Nonaccruing loans |
|
$ |
9,840 |
|
|
$ |
12,071 |
|
|
$ |
19,473 |
|
|
$ |
18,128 |
|
|
$ |
8,943 |
|
Accruing loans delinquent more than 90 days |
|
|
233 |
|
|
|
255 |
|
|
|
878 |
|
|
|
248 |
|
|
|
1,982 |
|
Securities in non-accrual |
|
|
1,155 |
|
|
|
1,075 |
|
|
|
1,017 |
|
|
|
1,048 |
|
|
|
1,027 |
|
Foreclosed real estate |
|
|
71 |
|
|
|
61 |
|
|
|
60 |
|
|
|
- |
|
|
|
- |
|
|
Total nonperforming assets |
|
$ |
11,299 |
|
|
$ |
13,462 |
|
|
$ |
21,428 |
|
|
$ |
19,424 |
|
|
$ |
11,952 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit losses (ACL): |
|
|
|
|
|
|
|
|
|
|
|
|
ACL specific allowances for impaired loans |
|
$ |
554 |
|
|
$ |
717 |
|
|
$ |
1,075 |
|
|
$ |
338 |
|
|
$ |
749 |
|
|
ACL general allowances for loan portfolio |
|
|
18,876 |
|
|
|
18,790 |
|
|
|
18,493 |
|
|
|
12,559 |
|
|
|
12,649 |
|
|
|
Total ACL |
|
$ |
19,430 |
|
|
$ |
19,507 |
|
|
$ |
19,568 |
|
|
$ |
12,897 |
|
|
$ |
13,398 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
September 30, |
Required |
|
|
|
|
|
|
|
|
|
|
|
|
|
2023 |
|
|
To Be Well |
|
|
|
|
|
|
|
|
|
|
|
|
Actual Ratio |
|
Capitalized |
|
|
|
|
|
|
|
Capital Adequacy Bank |
|
|
|
|
|
|
|
|
|
|
|
Common equity tier 1 capital to risk-weighted assets |
|
|
10.2 |
% |
|
|
6.5 |
% |
|
|
|
|
|
|
|
Tier 1 capital to risk-weighted assets |
|
|
10.2 |
% |
|
|
8.0 |
% |
|
|
|
|
|
|
|
Total capital to risk-weighted assets |
|
|
11.2 |
% |
|
|
10.0 |
% |
|
|
|
|
|
|
|
Tier 1 capital to adjusted average assets |
|
|
7.8 |
% |
|
|
5.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 1 - Reconciliation of the Non-GAAP Performance Measures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands) |
Three Months Ended, |
|
Nine months Ended |
|
(unaudited) |
September 30,2023 |
June 30,2023 |
|
March 31,2023 |
|
December 31,2022 |
September 30,2022 |
September 30,2023 |
September 30,2022 |
|
Calculation of tangible common equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total stockholder's equity |
$ |
119,043 |
|
|
$ |
136,750 |
|
|
$ |
139,736 |
|
|
$ |
136,393 |
|
|
$ |
118,023 |
|
|
$ |
119,043 |
|
|
$ |
118,023 |
|
|
Goodwill |
|
(22,395 |
) |
|
|
(22,395 |
) |
|
|
(22,395 |
) |
|
|
(22,395 |
) |
|
|
(22,615 |
) |
|
|
(22,395 |
) |
|
|
(22,615 |
) |
|
Other intangibles |
|
(3,636 |
) |
|
|
(4,015 |
) |
|
|
(4,402 |
) |
|
|
(4,794 |
) |
|
|
(5,188 |
) |
|
|
(3,636 |
) |
|
|
(5,188 |
) |
(A) |
Tangible common equity |
$ |
93,012 |
|
|
$ |
110,340 |
|
|
$ |
112,939 |
|
|
$ |
109,204 |
|
|
$ |
90,220 |
|
|
$ |
93,012 |
|
|
$ |
90,220 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Calculation of tangible common equity adjusted for
accumulated other comprehensive loss (income) |
(A) |
Tangible common equity |
$ |
93,012 |
|
|
$ |
110,340 |
|
|
$ |
112,939 |
|
|
$ |
109,204 |
|
|
$ |
90,220 |
|
|
$ |
93,012 |
|
|
$ |
90,220 |
|
|
Accumulated other comprehensive loss (income) |
|
78,848 |
|
|
|
60,185 |
|
|
|
55,895 |
|
|
|
64,300 |
|
|
|
79,839 |
|
|
|
78,848 |
|
|
|
79,839 |
|
(B) |
Tangible common equity adjusted for accumulated other comprehensive
loss (income) |
$ |
171,860 |
|
|
$ |
170,525 |
|
|
$ |
168,834 |
|
|
$ |
173,504 |
|
|
$ |
170,059 |
|
|
$ |
171,860 |
|
|
$ |
170,059 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Calculation of tangible book value per share |
(A) |
Tangible common equity |
$ |
93,012 |
|
|
$ |
110,340 |
|
|
$ |
112,939 |
|
|
$ |
109,204 |
|
|
$ |
90,220 |
|
|
$ |
93,012 |
|
|
$ |
90,220 |
|
|
Shares outstanding |
|
4,301,080 |
|
|
|
4,303,766 |
|
|
|
4,304,026 |
|
|
|
4,298,401 |
|
|
|
4,297,900 |
|
|
|
4,301,080 |
|
|
|
4,297,900 |
|
|
Tangible book value per diluted share |
$ |
21.63 |
|
|
$ |
25.64 |
|
|
$ |
26.24 |
|
|
$ |
25.41 |
|
|
$ |
20.99 |
|
|
$ |
21.63 |
|
|
$ |
20.99 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Calculation of tangible book value per diluted share
adjusted for accumulated other comprehensive loss
(income) |
(B) |
Tangible common equity adjusted for accumulated other comprehensive
loss (income) |
$ |
171,860 |
|
|
$ |
170,525 |
|
|
$ |
168,834 |
|
|
$ |
173,504 |
|
|
$ |
170,059 |
|
|
$ |
171,860 |
|
|
$ |
170,059 |
|
|
Diluted average common shares outstanding |
|
4,301,080 |
|
|
|
4,303,766 |
|
|
|
4,304,026 |
|
|
|
4,298,401 |
|
|
|
4,297,900 |
|
|
|
4,301,080 |
|
|
|
4,297,900 |
|
|
Tangible book value per diluted share adjusted for accumulated
other comprehensive loss (income) |
$ |
39.96 |
|
|
$ |
39.62 |
|
|
$ |
39.23 |
|
|
$ |
40.36 |
|
|
$ |
39.57 |
|
|
$ |
39.96 |
|
|
$ |
39.57 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Calculation of tangible common equity to total
assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
(A) |
Tangible common equity |
$ |
93,012 |
|
|
$ |
110,340 |
|
|
$ |
112,939 |
|
|
$ |
109,204 |
|
|
$ |
90,220 |
|
|
$ |
93,012 |
|
|
$ |
90,220 |
|
|
Total assets |
|
2,087,470 |
|
|
|
2,161,218 |
|
|
|
2,098,592 |
|
|
|
2,070,339 |
|
|
|
2,052,986 |
|
|
|
2,087,470 |
|
|
|
2,052,986 |
|
|
Tangible common equity to total assets |
|
4.46 |
% |
|
|
5.11 |
% |
|
|
5.38 |
% |
|
|
5.27 |
% |
|
|
4.39 |
% |
|
|
4.46 |
% |
|
|
4.39 |
% |
|
Calculation of tangible common equity to total
assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
(B) |
Tangible common equity adjusted for accumulated other comprehensive
loss (income) |
$ |
171,860 |
|
|
$ |
170,525 |
|
|
$ |
168,834 |
|
|
$ |
173,504 |
|
|
$ |
170,059 |
|
|
$ |
171,860 |
|
|
$ |
170,059 |
|
|
Total assets |
|
2,087,470 |
|
|
|
2,161,218 |
|
|
|
2,098,592 |
|
|
|
2,070,339 |
|
|
|
2,052,986 |
|
|
|
2,087,470 |
|
|
|
2,052,986 |
|
|
Tangible common equity to total assets adjusted for accumulated
other comprehensive loss (income) |
|
8.23 |
% |
|
|
7.89 |
% |
|
|
8.05 |
% |
|
|
8.38 |
% |
|
|
8.28 |
% |
|
|
8.23 |
% |
|
|
8.28 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Calculation of tax adjusted net interest
margin |
|
Net interest income |
$ |
13,133 |
|
|
$ |
14,039 |
|
|
$ |
14,668 |
|
|
$ |
16,809 |
|
|
$ |
17,507 |
|
|
$ |
41,840 |
|
|
$ |
50,340 |
|
|
Tax adjusted interest on securities and loans |
|
730 |
|
|
|
748 |
|
|
|
756 |
|
|
|
791 |
|
|
|
817 |
|
|
|
2,234 |
|
|
|
2,713 |
|
|
Adjusted net interest income |
|
13,863 |
|
|
|
14,787 |
|
|
|
15,424 |
|
|
|
17,600 |
|
|
|
18,324 |
|
|
|
44,074 |
|
|
|
53,053 |
|
|
Total average earning assets |
|
1,930,118 |
|
|
|
1,950,774 |
|
|
|
1,908,647 |
|
|
|
1,886,596 |
|
|
|
1,910,722 |
|
|
|
1,929,923 |
|
|
|
1,886,853 |
|
|
Tax adjusted net interest margin |
|
2.87 |
% |
|
|
3.03 |
% |
|
|
3.23 |
% |
|
|
3.73 |
% |
|
|
3.84 |
% |
|
|
3.04 |
% |
|
|
3.75 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total non-interest expense |
$ |
13,493 |
|
|
$ |
13,995 |
|
|
$ |
14,227 |
|
|
$ |
15,645 |
|
|
$ |
15,010 |
|
|
$ |
41,715 |
|
|
$ |
46,455 |
|
|
Total revenue |
|
15,530 |
|
|
|
17,045 |
|
|
|
17,276 |
|
|
|
19,648 |
|
|
|
20,137 |
|
|
|
49,851 |
|
|
|
59,010 |
|
|
Efficiency ratio |
|
86.88 |
% |
|
|
82.11 |
% |
|
|
82.35 |
% |
|
|
79.63 |
% |
|
|
74.54 |
% |
|
|
83.68 |
% |
|
|
78.72 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FOR FURTHER INFORMATIONCONTACT
SHAREHOLDER SERVICES(219) 853-7575
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