Finward Bancorp Announces Third Quarter 2025 Results

Finward Bancorp, the holding company for Peoples Bank, has released its financial results for the third quarter of 2025. The company reported a net income available to common stockholders of $3.5 million, or $0.81 per diluted share, for the quarter ended September 30, 2025. This represents a significant increase from the $2.2 million, or $0.50 per diluted share, reported for the previous quarter ended June 30, 2025. Financial Highlights Key financial metrics for the quarter include:Return on equity (ROE) increased to 8.96% from 5.66% in the previous quarter.Return on assets (ROA) rose to 0.68% from 0.42% in the previous quarter.Net interest margin on a tax-equivalent basis improved to 3.18% from 3.11% in the previous quarter.Non-interest income as a percentage of average assets increased to 0.57% from 0.53% in the previous quarter.Efficiency ratio improved to 81.22% from 88.92% in the previous quarter. Business and Operational Highlights During the third quarter, Finward Bancorp saw a slight increase in deposits, which totaled $1.8 billion as of September 30, 2025. Non-interest-bearing deposits increased by $9.1 million, while core deposits remained stable at $1.2 billion. The company also reported a decrease in borrowings and repurchase agreements, which totaled $103.4 million, down by $9.9 million from the previous quarter.The Bank's securities portfolio saw an increase in value, with securities available for sale rising to $335.2 million from $327.8 million in the previous quarter. The yield on the securities portfolio slightly decreased to 2.40% from 2.42%.In terms of lending, the Bank originated $62.6 million in new commercial loans during the quarter, up from $46.1 million in the previous quarter. The aggregate loan portfolio remained stable at $1.5 billion. Strategic Initiatives and Corporate Developments Finward Bancorp's liquidity position remains strong, with available liquidity of $737 million, including borrowing capacity from the FHLB and Federal Reserve facilities. The company also reported that 72.4% of its deposits are fully FDIC insured, with an additional 7.9% backed by the Indiana Public Deposit Insurance Fund.The Bank's capital adequacy ratios improved, with the tier 1 leverage ratio increasing to 8.77% from 8.69% in the previous quarter. The tangible book value per share (non-GAAP) rose to $32.77 from $30.16. Management's Perspective CEO Benjamin Bochnowski commented, "We continued to build momentum in the third quarter, delivering overall improved profitability. Margin expansion and stable credit contributed to further overall profitability gains, along with benefits in overhead efficiency. The recent rate cut by the Federal Reserve, coupled with our strengthened capital and liquidity position, provides a solid foundation for growth as we enter the final quarter of the year." Future Outlook Looking ahead, Finward Bancorp is well-positioned to maintain its current trajectory. The company aims to leverage its strong capital and liquidity position to drive growth in the coming quarters. Management remains focused on identifying additional operating efficiencies and third-party expense reductions to further enhance profitability.Original SEC Filing: Finward Bancorp [ FNWD ] - 8-K - Oct. 28, 2025DisclaimerThis is an AI-powered summary. It may contain inaccuracies. Consider verifying important information with the source. Please note this summary is solely based on documents filed with the SEC.