Finward Bancorp Reports 2024 Earnings Results

MUNSTER, Ind., January 28, 2025 (GLOBE NEWSWIRE) — Finward Bancorp (NASDAQ: FNWD), which oversees Peoples Bank, has announced its earnings for the year concluded on December 31, 2024. The director of the Bancorp stated that net income available to common shareholders was reported at $12.1 million, translating to $2.84 per diluted share, a significant increase from the previous year’s earnings of $8.4 million, or $1.96 per diluted share.

In the last quarter of the year, specifically for the three months ended December 31, 2024, the Bancorp achieved a net income of $2.1 million, or $0.49 per diluted share. This performance marked an improvement compared to $606 thousand, or $0.14 per diluted share, in the three months concluding September 30, 2024, and also exceeded the $1.5 million, or $0.35 per diluted share, from the same quarter in 2023.

Key Financial Metrics

The following are selected performance ratios for the Bancorp:

Performance Ratios

Quarter ended

Twelve months ended

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

Return on equity

5.39%

1.60%

Return on assets

0.41%

0.12%

Tax adjusted net interest margin (Non-GAAP)

2.79%

2.66%

Benjamin Bochnowski, the CEO of Finward Bancorp, noted, “The Bank ended the year with continued improvement in its overall positioning and increased momentum for 2025. Throughout the year, we effectively managed our balance sheet and improved our regulatory capital with various earnings strategies.” He emphasized that the reduction in funding costs, influenced by Federal Reserve policies, contributed to the improvement in net interest margins.

Insights from Financial Performance

During Q4 2024, the net interest margin was reported at 2.65%, demonstrating a rise from the previous quarter's 2.51%. For the year, the Bancorp saw a net interest margin of 2.54%, slightly down from 2.83% in the prior year.

Deposits stood at $1.8 billion as of December 31, 2024, reflecting a modest increase of $11.8 million, or 0.7%, compared to the third quarter of the same year. However, non-interest-bearing deposits experienced a decrease of $21.8 million or 7.7%, largely due to regular business deposit flows typical at year-end.

The Bank's aggregate loan portfolio remained stable at $1.5 billion, with new commercial loans amounting to $59.2 million originated during the quarter.

Furthermore, the Bancorp recorded a one-time gain from the termination of a long-term tax credit investment partnership, yielding an additional $1.2 million for the quarter.

Asset Quality and Operating Expenses

Finward Bancorp maintained a vigilant approach to asset quality, with non-performing loans totaling $13.7 million, a slight decrease from $13.8 million in the prior quarter. The allowance for credit losses on loans was $16.9 million, an adequate level according to management. Additionally, net charge-offs for the quarter were recorded at $2.2 million, primarily related to a small number of commercial loans.

Operating expenses decreased as a percentage of average assets to 2.75% for the final quarter of 2024, down from 2.80% in the prior quarter, attributed to focused efforts on decreasing compensation expenses and implementing operational efficiencies.

Capital Adequacy and Future Outlook

By the end of December 2024, the Bancorp's tier 1 capital to adjusted average assets ratio was reported at 8.46%, marking an increase from the previously noted 8.38%. The tangible book value per share was noted at $29.48, showing a decline from $31.28 in the third quarter.

In summary, Finward Bancorp has demonstrated a positive trajectory in financial performance for 2024, with steady earnings growth, enhanced net interest margins, and effective management of asset quality. The executive team expresses optimism for continued growth and strong positioning for 2025.

Earnings, Finance, Banking