Finward Bancorp (FNWD) AI Stock Analysis

• Market Cap: $162.35M
• Dividend Yield: 0.97%
• Average Volume (3M): 34.79K
• Price to Earnings (P/E): 19.5
• Beta (1Y): 0.02
• Revenue Growth: -7.20%
• EPS Growth: -29.17%
• Country: US
• Employees: 293
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.81
• Shares Outstanding: 4,327,000
• 10 Day Avg. Volume: 17,730
• 30 Day Avg. Volume: 34,794
• PEG Ratio: 0.22
• Price to Book (P/B): 0.79
• Price to Sales (P/S): 1.07
• P/FCF Ratio: 17.84
• Enterprise Value/Market Cap: 1.37
• Enterprise Value/Revenue: 2.91
• Enterprise Value/Gross Profit: 4.54
• Enterprise Value/Ebitda: 18.74
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 1.47
• Revenue Forecast (FY): $69.40M

• Rating: 73 Outperform
• Price Target: $43.00 ▲(13.16% Upside)

Finward Bancorp's overall score reflects a stable financial position with strong cash flow generation and positive technical indicators. The strategic focus on leveraging technology and improving operations is a positive corporate event. However, challenges with valuation and declining revenue growth weigh on the score.

Positive Factors

Cash Flow Generation

Robust cash flow generation enhances financial flexibility, allowing for reinvestment in growth opportunities and debt management.

Strategic Focus on Technology

Adopting advanced technologies can streamline operations, improve customer service, and provide a competitive edge in the banking sector.

Moderate Leverage

Maintaining moderate leverage ensures financial stability and reduces risk, providing a solid foundation for sustainable growth.

Negative Factors

Declining Revenue Growth

Falling revenue growth can hinder the company's ability to expand and invest in new initiatives, impacting long-term profitability.

Regulatory Challenges

Regulatory constraints can limit operational flexibility and increase compliance costs, affecting strategic initiatives and financial performance.

Reduced Profitability Margins

Pressure on profit margins can reduce net income, limiting resources available for growth and shareholder returns.

Finward Bancorp Business Overview & Revenue Model

Company Description

Finward Bancorp (FNWD) is a financial holding company that operates primarily through its wholly-owned subsidiary, First Federal Savings Bank. The company provides a range of banking and financial services, including personal and business banking, mortgage lending, and investment services. With a commitment to serving the communities in which it operates, Finward Bancorp focuses on customer-centric solutions and offers products such as savings and checking accounts, loans, and wealth management services.

How the Company Makes Money

Finward Bancorp generates revenue primarily through interest income from loans and securities, as well as non-interest income from fees and service charges. The key revenue streams include interest earned on residential and commercial loans, which constitute a significant portion of the company's earnings, along with interest from investment securities. Additionally, the bank earns non-interest income from various services, such as transaction fees, account maintenance fees, and investment advisory services. The company's profitability is also supported by its efficient cost management strategies and a strong focus on customer relationships, which enhance customer retention and attract new clients. Partnerships with financial technology firms and local businesses further contribute to its revenue by expanding service offerings and improving operational efficiency.

Finward Bancorp Financial Statement Overview

Summary

Finward Bancorp demonstrates a stable financial position with strengths in cash flow generation and moderate leverage. However, challenges exist with declining revenue growth and reduced profitability margins. The balance sheet is well-managed, but declining return on equity and pressure on gross profit margins highlight areas for improvement.

Income Statement

Finward Bancorp's income statement shows a mixed performance. The TTM data indicates a decline in revenue growth at -6.80%, which is concerning. However, the company maintains a decent net profit margin of 8.67% and an EBIT margin of 18.86%. The historical data shows fluctuating revenue growth rates, with a peak in 2022. The gross profit margin has decreased significantly in the TTM period compared to previous years, indicating pressure on profitability.

Balance Sheet

The balance sheet reflects moderate leverage with a TTM debt-to-equity ratio of 0.62, which is an improvement from previous years. The return on equity has decreased to 5.27% in the TTM period, indicating reduced profitability for shareholders. The equity ratio remains stable, suggesting a balanced capital structure. Overall, the company has managed its debt levels well, but the declining ROE is a concern.

Cash Flow

Finward Bancorp's cash flow statement shows a strong free cash flow growth rate of 86.06% in the TTM period, indicating improved cash generation capabilities. The free cash flow to net income ratio is healthy at 85.19%, suggesting efficient conversion of income to cash. However, the operating cash flow to net income ratio is low, indicating potential issues in cash flow from operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	76.25M	111.83M	96.53M	83.54M	66.60M	69.77M
Gross Profit	48.91M	71.60M	63.28M	78.66M	63.01M	60.34M
EBITDA	11.85M	20.75M	15.21M	22.53M	20.94M	21.91M
Net Income	4.71M	12.13M	8.38M	15.08M	14.96M	15.93M
Balance Sheet
Total Assets	2.05B	2.06B	2.11B	2.07B	1.62B	1.50B
Cash, Cash Equivalents and Short-Term Investments	0.00	404.14M	457.38M	404.53M	560.07M	430.59M
Total Debt	103.43M	105.12M	118.12M	135.50M	14.58M	19.86M
Total Liabilities	1.89B	1.91B	1.96B	1.93B	1.46B	1.34B
Stockholders Equity	165.50M	151.41M	147.34M	136.39M	156.62M	151.69M
Cash Flow
Free Cash Flow	12.74M	6.73M	23.06M	14.70M	13.91M	16.00M
Operating Cash Flow	12.96M	9.80M	24.21M	17.73M	17.04M	19.74M
Investing Cash Flow	44.05M	42.79M	15.02M	-1.13M	-125.93M	-185.06M
Financing Cash Flow	-24.48M	-68.02M	15.49M	-18.49M	122.14M	137.99M

Finward Bancorp Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 38.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FNWD, the sentiment is Neutral. The current price of 38 is below the 20-day moving average (MA) of 38.23, above the 50-day MA of 35.66, and above the 200-day MA of 31.03, indicating a neutral trend. The MACD of 0.58 indicates Positive momentum. The RSI at 49.74 is Neutral, neither overbought nor oversold. The STOCH value of 34.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FNWD.

Finward Bancorp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EBMT	75 Outperform	$156.02M	11.36	7.43%	2.93%	6.10%	59.32%
FNWD	73 Outperform	$162.35M	19.54	5.05%	0.97%	-7.20%	-29.17%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
RBKB	63 Neutral	$134.86M	26.48	3.95%	―	22.30%	―
BCBP	58 Neutral	$143.34M	172.29	0.86%	7.74%	-8.73%	-95.86%
FGBI	52 Neutral	$78.30M	-1.22	-24.07%	0.84%	1.33%	-593.24%

Finward Bancorp Corporate Events

Finward Bancorp Declares Dividend Amid Regulatory Challenges

On December 3, 2025, Finward Bancorp‘s Board of Directors declared a dividend of $0.12 per share on its common stock, payable on December 30, 2025, to shareholders recorded by December 17, 2025. This announcement comes amid regulatory challenges, as the Bank must comply with a memorandum of understanding with the FDIC and Indiana DFI, which includes restrictions on paying cash dividends without prior approval. The declaration reflects the company’s financial strategies and regulatory navigation, impacting its operations and stakeholders.

Finward Bancorp Highlights at 2025 Stephens Banking Forum

Finward Bancorp presented financial information at the 2025 Stephens Banking Forum, highlighting its strategic focus on strengthening business operations and capitalizing on opportunities. The company has demonstrated consistent growth in assets, with a strong presence in Northwest Indiana and the Chicagoland area. The bank is actively managing customer relationships and leveraging technology like Salesforce and AI to improve operations. Despite challenges such as regulatory compliance and market conditions, Finward Bancorp remains committed to building capital and increasing returns while navigating economic and interest rate changes.