Finward Bancorp ( (FNWD) ) has realeased its Q3 earnings. Here is a breakdown of the information Finward Bancorp presented to its investors.
Finward Bancorp is a financial holding company based in Munster, Indiana, primarily engaged in offering a wide range of banking services through its subsidiary, Peoples Bank, across 26 locations in Northwest Indiana and Chicagoland. The company is listed on NASDAQ under the symbol FNWD.
In the latest earnings report for the nine months ended September 30, 2024, Finward Bancorp reported a net income of $10 million, translating to $2.35 per diluted share, which marks a significant increase from $6.9 million or $1.60 per share in the corresponding period of the previous year. However, the quarterly results showed a net income of $606 thousand or $0.14 per share, a decline from $2.2 million or $0.51 per share a year ago.
Key highlights from the report include a stable net interest margin of 2.67% for both the quarter and the nine-month period, although it is down from the previous year’s 3.04%. The company saw a slight decrease in total deposits, but core deposits remained stable at $1.2 billion, representing 67.9% of total deposits. Finward’s securities portfolio increased to $350 million, reflecting strategic adjustments and a reduction in accumulated losses. Loan origination remained robust with $70.4 million in new commercial loans during the quarter.
Despite a rise in non-performing loans to $13.8 million, the bank maintained a vigilant approach to credit management. Meanwhile, operating expenses remained stable, and the bank’s capital adequacy ratios continued to exceed regulatory requirements, with improvements noted in tier 1 capital ratios.
Looking ahead, Finward Bancorp’s management remains cautiously optimistic about future margin expansions as they anticipate the effects of lower interest rates. The company is focused on maintaining strong liquidity and capital positions to navigate the evolving financial landscape.
