Finward Bancorp ( (FNWD) ) has released its Q2 earnings. Here is a breakdown of the information Finward Bancorp presented to its investors.
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Finward Bancorp, headquartered in Munster, Indiana, is a financial holding company primarily engaged in providing a range of personal, business, electronic, and wealth management services through its subsidiary, Peoples Bank, across Northwest Indiana and Chicagoland.
In the second quarter of 2025, Finward Bancorp reported a significant improvement in its financial performance, with net income available to common stockholders reaching $2.2 million, or $0.50 per diluted share, a notable increase from the previous quarter’s $455 thousand, or $0.11 per diluted share. This improvement reflects the company’s ongoing efforts to enhance core operating results.
Key financial metrics for the quarter include an expansion in the net interest margin to 3.11% on a tax-equivalent basis, driven by increased loan yields and improved funding costs. The company’s deposits totaled $1.8 billion, with a slight increase from the previous quarter, while non-performing loans rose to $13.5 million, representing 0.91% of total loans. Despite these challenges, the company’s liquidity position remains robust, with available liquidity of $728 million.
Finward Bancorp’s securities portfolio saw a decrease due to payoffs of certain mortgage-backed securities, while the lending portfolio remained stable with $1.5 billion in loans. The company originated $46.1 million in new commercial loans during the quarter. Asset quality metrics showed a slight increase in non-performing assets, but the allowance for credit losses improved to $18.2 million.
Looking ahead, Finward Bancorp’s management remains focused on improving operating efficiencies and maintaining strong capital adequacy, with a tier 1 leverage ratio of 8.69%. The company is well-positioned to navigate future challenges and opportunities in the financial sector.