Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) x Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934. For the quarterly period ended June 30, 2025 or o Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934. For the transition period from ______ to ______ Commission File Number: 001-40999 Finward Bancorp (Exact name of registrant as specified in its charter) Indiana 35-192798 ...

Exhibit 99.1 July 29, 2025 Finward Bancorp Announces Second Quarter 2025 Results Munster, Indiana - Finward Bancorp (Nasdaq: FNWD) (the "Bancorp"), the holding company for Peoples Bank (the "Bank"), today announced that net income available to common stockholders was $2.2 million, or $0.50 per diluted share, for the quarter ended June 30, 2025 , as compared to $455 thousand, or $0.11 per diluted share, for the quarter ended March 31, 2025. Selected performance metrics are as follows for the periods presente ...

Company Overview and Strategy - Finward Bancorp has grown from $776 million to $2.1 billion in assets over the last 10 years, representing a 10.3% CAGR[7] - The company aims to build capital and increase returns while positioning for different economic and interest rate outcomes[7] - The company is evaluating opportunities to optimize the balance sheet and improve earnings quality[7] Financial Performance - Total assets were $2.075 billion as of September YTD 2024[11] - Total loans were $1.508 billion as of September YTD 2024[11] - Total deposits were $1.748 billion as of September YTD 2024[11] - Total equity was $160 million as of September YTD 2024[11] - The tax-adjusted net interest margin was 2.67% for the three months ended September 30, 2024[22] Asset Quality and Loan Portfolio - Non-performing loans totaled $13.8 million, representing 0.92% of total loans as of September 30, 2024[48] - The bank originated $70.4 million in new commercial loans during the quarter ended September 30, 2024[39] - Total 1-4 family originations for the quarter ended September 30, 2024, totaled $20.1 million[39]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934. For the quarterly period ended March 31, 2025 or ☐ Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934. For the transition period from ______ to ______ Commission File Number: 001-40999 Finward Bancorp (Exact name of registrant as specified in its charter) (State or other jurisdiction of in ...

Financial Performance - For the quarter ended March 31, 2025, net income available to common stockholders was $456 thousand, or $0.11 per diluted share, a decrease of 78.3% from $2.1 million, or $0.49 per diluted share for the quarter ended December 31, 2024, and a decrease of 95.1% from $9.3 million, or $2.17 per diluted share for the quarter ended March 31, 2024 [3]. - Return on equity for the quarter ended March 31, 2025, was 1.17%, a decrease from 5.39% in the previous quarter [16]. - Return on assets for the same quarter was 0.09%, down from 0.41% in the prior quarter [16]. - Basic earnings per share decreased to $0.11 from $0.49 in the previous quarter [16]. - Net income for the quarter was $456 thousand, a substantial drop from $2,102 thousand in the previous quarter, reflecting a decrease of about 78.2% [22]. - Total revenue for the period was $15,542 million, a decrease from $16,339 million, reflecting a decline of about 4.9% [26]. Asset and Deposit Management - As of March 31, 2025, total deposits were $1.8 billion, a decrease of $10.2 million, or 0.6% compared to December 31, 2024, with non-interest-bearing deposits increasing by $18.1 million, or 6.9% [5]. - Total assets as of March 31, 2025, were $2,059,968,000, a slight decrease from $2,069,310,000 at the end of the previous quarter [18]. - Total assets decreased to $2,039,714 thousand as of March 31, 2025, down from $2,060,699 thousand in December 2024, representing a decline of approximately 1.0% [20]. - Net loans receivable stood at $1,473,741 thousand, a slight decrease from $1,492,065 thousand in the previous quarter, reflecting a reduction of about 1.2% [20]. - Total liabilities decreased to $1,887,907 thousand from $1,909,285 thousand in the previous quarter, a decline of approximately 1.1% [20]. Credit Quality - The allowance for credit losses on loans totaled $17.9 million at March 31, 2025, representing 1.20% of total loans receivable, an increase of $1 million, or 6.2% from December 31, 2024 [6]. - Non-performing loans decreased to $12.5 million at March 31, 2025, down $1.3 million, or 9.1% from $13.7 million at December 31, 2024, with the ratio of non-performing loans to total loans at 0.84% [8]. - The Bank recorded a net provision for credit loss expense of $454 thousand for the quarter ended March 31, 2025, with net charge-offs totaling $32.7 thousand, a decrease of 97.2% from $2.2 million for the quarter ended December 31, 2024 [7]. - The allowance for credit losses increased to $17,955 thousand from $16,911 thousand in the previous quarter, marking an increase of approximately 6.2% [24]. - Nonaccruing loans decreased to $12,483 thousand from $13,738 thousand in the previous quarter, a reduction of about 9.1% [24]. Capital and Equity - The Bank's tier 1 capital to adjusted average assets ratio was 8.48% as of March 31, 2025, an improvement from 8.47% at December 31, 2024, exceeding all applicable regulatory capital requirements [9]. - The common equity tier 1 capital ratio was 11.02%, exceeding the minimum required ratio of 4.50% [24]. - Total stockholder's equity as of March 31, 2025, is $151,807,000, compared to $151,581,000 on March 31, 2024, reflecting a year-over-year increase of 0.15% [25]. - Tangible common equity for the same period is $127,777,000, up from $126,275,000 a year earlier, indicating a growth of 1.19% [25]. - Tangible book value per diluted share is $29.55 as of March 31, 2025, compared to $29.30 a year prior, representing an increase of 0.85% [25]. Operational Efficiency - The efficiency ratio for the quarter ended March 31, 2025, was 93.11%, compared to 87.20% for the quarter ended December 31, 2024, indicating increased operating expenses [9]. - The efficiency ratio increased to 93.11% from 87.20% in the previous quarter, indicating higher operational costs relative to income [16]. - Total non-interest expense was $14,471 million, slightly up from $14,247 million, marking an increase of about 1.6% [26]. Interest Income and Margin - The net interest margin for the quarter ended March 31, 2025, was 2.81%, an increase from 2.65% for the quarter ended December 31, 2024, while the tax-adjusted net interest margin was 2.95%, up from 2.79% [5]. - Total interest income for the quarter was $22,341 thousand, compared to $22,595 thousand in the prior quarter, indicating a decrease of approximately 1.1% [22]. - Net interest income after provision for credit losses was $12,859 thousand, down from $13,186 thousand in the previous quarter, a decline of about 2.5% [22]. - Net interest income increased to $13,313 million, up from $12,607 million, representing a growth of about 5.6% [26]. - Adjusted net interest income rose to $13,983 million compared to $13,281 million, indicating an increase of approximately 5.3% [26].

Core Points - Finward Bancorp reported a net income of $456 thousand, or $0.11 per diluted share, for Q1 2025, a significant decrease from $2.1 million, or $0.49 per diluted share, in Q4 2024 and $9.3 million, or $2.17 per diluted share, in Q1 2024 [1][16] - The tax-adjusted net interest margin increased to 2.95% in Q1 2025 from 2.79% in Q4 2024, primarily due to reduced deposit and borrowing costs following the Federal Reserve's rate cuts [2][17] - Non-performing loans decreased to $12.5 million, or 0.84% of total loans, down from $13.7 million, or 0.91%, in the previous quarter, indicating improved asset quality [6][7] Financial Performance - The return on equity for Q1 2025 was 1.17%, down from 5.39% in Q4 2024, while the return on assets was 0.09%, compared to 0.41% in the previous quarter [1][15] - Non-interest expense as a percentage of average assets increased to 2.81% in Q1 2025 from 2.75% in Q4 2024, driven by higher compensation and benefit expenses [7][15] - The efficiency ratio worsened to 93.11% in Q1 2025 from 87.20% in Q4 2024, reflecting increased operational costs [1][15] Funding and Liquidity - Total deposits as of March 31, 2025, were $1.8 billion, a slight decrease of $10.2 million, or 0.6%, from the previous quarter [2][19] - The Bancorp's liquidity position remained strong with available liquidity of $697 million, including borrowing capacity from the FHLB and Federal Reserve [3][19] Credit Quality - The allowance for credit losses on loans increased to $17.9 million, or 1.20% of total loans, from $16.9 million, or 1.12%, in the previous quarter [4][5] - The net provision for credit loss expense was $454 thousand for Q1 2025, with net charge-offs significantly reduced to $32.7 thousand from $2.2 million in Q4 2024 [5][6] Securities and Lending - The securities available for sale decreased to $330.1 million as of March 31, 2025, down from $333.6 million in the previous quarter [6][19] - The aggregate loan portfolio remained stable at $1.5 billion, with new commercial loan originations increasing to $36.7 million in Q1 2025 from $25.0 million in Q4 2024 [6][19]

Core Points - Finward Bancorp declared a dividend of $0.12 per share on its common stock, payable on May 12, 2025, to shareholders of record as of April 28, 2025 [1] Company Overview - Finward Bancorp is an independent financial holding company based in Munster, Indiana, primarily holding the stock of Peoples Bank, which offers a variety of financial services from 26 locations in Northwest Indiana and the Chicagoland area [2]

Loan Portfolio - As of December 31, 2024, total loans receivable amounted to $1,506,583,000, a slight decrease from $1,508,755,000 in 2023[30] - The company's loan portfolio includes $467,293,000 in residential real estate loans, down from $484,948,000 in 2023, representing a decrease of approximately 1.5%[30] - The company reported a total of $551,674,000 in commercial real estate loans as of December 31, 2024, an increase from $503,202,000 in 2023, reflecting a growth of approximately 9.3%[30] - Adjustable Rate Mortgage (ARM) originations totaled $7.3 million in 2024, accounting for 14.8% of total mortgage loan originations[40] - The primary lending area includes Lake County in northwest Indiana and Cook County in northeast Illinois, where the majority of loan activity is concentrated[33] - The company’s construction loans are primarily made for residential properties, with a maximum loan-to-value ratio of 89%[41] - During 2024, 75.2% of closed mortgage loans were conventional loans with borrowers having 20% or more equity, eliminating the need for private mortgage insurance[38] - The company had no concentrations of loans in any industry exceeding 10% of total loans as of December 31, 2024[27] Credit Quality - Non-performing loans increased to $13,738 thousand in 2024 from $9,608 thousand in 2023, representing a 43.5% increase[57] - The ratio of non-performing loans to total assets rose to 0.74% in 2024, up from 0.61% in 2023[57] - Total substandard loans increased to $16,021 thousand in 2024, compared to $12,264 thousand in 2023, marking a 30.3% increase[59] - Special mention loans grew to $25,290 thousand in 2024, up from $19,198 thousand in 2023, reflecting a 31.8% increase[60] - The company recorded $656 thousand in gross interest income on non-accrual loans that would have been recognized if the loans had been current throughout 2024[57] - The allowance for credit losses allocated for collateral dependent loans was $284 thousand as of December 31, 2024[65] - The total allowance for credit losses at the end of 2024 was $16,911,000, down from $18,768,000 at the end of 2023[72] - The allowance for credit losses (ACL) to loans outstanding ratio was 1.12% for 2024, compared to 1.24% in 2023[72] Interest Income and Expenses - Net interest income for the year ended December 31, 2024, was $48,447 million, down from $54,555 million in 2023[98] - Interest income from loans receivable decreased by $734 million, resulting in a total of $2,753 million for 2024[101] - Total interest-earning assets saw a net decrease of $262 million, totaling $3,395 million in 2024[101] - Net interest income experienced a decline of $1,043 million, leading to a total of $6,108 million for the year[101] - The average interest rate on total interest-earning assets increased to 4.67% in 2024 from 4.45% in 2023[98] Capital and Regulatory Compliance - The Company is subject to minimum capital standards, including a common equity Tier 1 capital ratio of 4.50%[122] - As of December 31, 2024, the Bank met all applicable capital adequacy requirements[126] - The Bank's common equity tier 1 capital to risk-weighted assets ratio was 11.26%, exceeding the minimum required ratio of 4.50%[135] - The total capital to risk-weighted assets ratio for the Bank was 12.19% as of December 31, 2024, compared to the minimum required ratio of 8.00%[135] - The Bank's tier 1 capital to adjusted average assets ratio was 8.47% as of December 31, 2024, above the minimum required ratio of 4.00%[135] - The Company is exempt from consolidated regulatory capital requirements under the "Small Bank Holding Company" exemption due to its asset size being less than $3 billion[127] Deposits and Funding - As of December 31, 2024, total deposits amounted to $1,755,547 million, reflecting a 2.40% increase from $1,784,086 million in 2023[86] - The Company had $21.7 million in brokered deposit balances at December 31, 2024, obtained through prior acquisitions[84] - The Company had $65.0 million in Federal Home Loan Bank (FHLB) fixed rate advances and $40.1 million in repurchase agreements as of December 31, 2024[83] - The weighted average rate on repurchase agreements was 3.85% in 2024, compared to 3.64% in 2023[93] Economic and Market Conditions - The monetary policies of the Federal Reserve significantly impact the Company's earnings and growth, as well as the broader banking industry[169] - Interest rate risk is identified as the primary source of market risk for the Company, arising from timing differences in repricings and maturities of interest-earning assets and interest-bearing liabilities[333] - The Company forecasts net interest income under various interest rate scenarios, indicating sensitivity to changes in market interest rates[342] - A table shows the impact of changes in interest rates on net interest income and economic value of equity (EVE), with a base EVE of $425 million and a net interest income of $61.6 million[344] Compliance and Risk Management - The Company is subject to periodic reporting and compliance requirements under the SEC and Nasdaq rules due to its public listing[165] - The Company has not discovered any material cybersecurity incidents during 2024, indicating effective risk management practices[159] - The Bank was rated "satisfactory" in its Community Reinvestment Act compliance, which is considered in expansion proposals and merger applications[150] - The final rule to strengthen CRA regulations was issued on October 24, 2023, but its implementation is currently delayed due to a preliminary injunction[152]

Market Overview - Last week's market performance was negatively impacted by uncertainty over tariffs, leading to the S&P 500 Index posting its worst weekly performance since September 2024, with a decline of 3.1% [1][2] - The Nasdaq Composite fell 3.8%, entering correction territory, while the Dow Jones declined by 2.5%. Small-cap stocks, represented by the Russell 2000, experienced the steepest decline at 4.3% [2] Financial Services Sector - The Financial Services sector among U.S. small-cap stocks was one of the top five worst performers last week, yet some stocks managed to perform positively [3] - Economists and policymakers view tariffs as a potential factor that could increase prices for U.S. businesses and consumers, which may slow economic growth over time [5] - Small-cap stocks are more sensitive to domestic economic conditions compared to large-cap companies, making them vulnerable to economic performance fluctuations [6] Investment Opportunities - Three small-cap financial services stocks that showed resilience and ended the week positively are Medallion Financial Corp. (MFIN), OFS Capital Corporation (OFS), and Finward Bancorp (FNWD) [3][8] - Medallion Financial reported total revenues of $213.9 million in 2024, a 7% increase year-over-year, and is expected to see a 5.3% sales increase this year [12] - OFS Capital's fair value of its debt investment portfolio was $224.2 million, and the stock gained 7.6% last week, indicating strong demand for specialized financing [15][17] - Finward Bancorp's revenues grew 9% year-over-year to $71.1 million in 2024, driven by a one-time gain on real estate, and the stock gained 3.7% last week [19][21]

Core Points - Finward Bancorp reported a net income of $12.1 million, or $2.84 per diluted share, for the twelve months ended December 31, 2024, an increase from $8.4 million, or $1.96 per diluted share, in the prior year [1] - For the fourth quarter of 2024, net income was $2.1 million, or $0.49 per diluted share, compared to $606 thousand, or $0.14 per diluted share, in the previous quarter and $1.5 million, or $0.35 per diluted share, in the same quarter of 2023 [1] - The Bank's return on equity improved to 5.39% for the quarter ended December 31, 2024, up from 1.60% in the previous quarter [1][14] - The net interest margin for the three months ended December 31, 2024, was 2.65%, an increase from 2.51% in the prior quarter [2] - Total deposits as of December 31, 2024, were $1.8 billion, reflecting an increase of $11.8 million or 0.7% from the previous quarter [2] - The allowance for credit losses on loans decreased to $16.9 million, or 1.12% of total loans receivable, from $18.5 million, or 1.23%, in the prior quarter [5] - Non-performing loans totaled $13.7 million, a slight decrease from $13.8 million in the previous quarter, resulting in a non-performing loans ratio of 0.91% [6] Performance Metrics - The tax-adjusted net interest margin for the twelve months ended December 31, 2024, was 2.68%, down from 2.98% in the prior year [2] - Non-interest expense as a percentage of average assets was 2.75% for the quarter ended December 31, 2024, compared to 2.80% in the previous quarter [10] - The Bank's tier 1 capital to adjusted average assets ratio improved to 8.46% as of December 31, 2024, from 8.38% in the prior quarter [10] - The efficiency ratio improved to 87.20% for the quarter ended December 31, 2024, down from 97.32% in the previous quarter [14] Funding and Liquidity - As of December 31, 2024, the Bank had available liquidity of $687 million, including borrowing capacity from the FHLB and Federal Reserve facilities [4] - Non-interest-bearing deposits decreased by $21.8 million or 7.7% to $263.3 million compared to the previous quarter [2][3] - Borrowings and repurchase agreements totaled $105.0 million, a decrease of $22.9 million or 17.9% from the previous quarter [3] Loan Portfolio and Asset Quality - The Bank's aggregate loan portfolio remained stable at $1.5 billion as of December 31, 2024 [6] - The Bank originated $59.2 million in new commercial loans during the fourth quarter of 2024, compared to $70.4 million in the previous quarter [6] - The ratio of the allowance for credit losses to non-performing loans was 123.1% at December 31, 2024, down from 134.1% in the previous quarter [7]