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]

Financial Performance - For the twelve months ended December 31, 2024, net income available to common stockholders was $12.1 million, or $2.84 per diluted share, compared to $8.4 million, or $1.96 per diluted share for the prior year[2] - Net income for the quarter was $2,102 thousand, compared to $1,510 thousand in the same quarter last year, representing an increase of approximately 39.2%[18] - Basic earnings per share increased to $0.49 for the quarter ended December 31, 2024, compared to $0.14 in the prior quarter[14] - Basic earnings per share increased to $0.49 from $0.36 year-over-year, reflecting a growth of approximately 36.1%[18] Asset and Liability Management - Total assets as of December 31, 2024, were $2,069,310 thousand, a slight decrease from $2,070,724 thousand at the end of the previous quarter[15] - Total liabilities stood at $1,913,517 thousand, with total stockholders' equity at $155,793 thousand as of December 31, 2024[15] - Total liabilities decreased to $1,909,285 thousand from $1,960,934 thousand year-over-year, representing a decline of approximately 2.6%[17] - Total capital to risk-weighted assets ratio improved to 12.26% as of December 31, 2024, compared to 12.14% in the prior quarter[14] Loan and Deposit Activity - The Bank's aggregate loan portfolio totaled $1.5 billion as of December 31, 2024, with $59.2 million in new commercial loans originated during the quarter[4] - Total deposits as of December 31, 2024, were $1.8 billion, an increase of $11.8 million or 0.7% compared to September 30, 2024[4] - Non-performing loans totaled $13.7 million at December 31, 2024, a decrease of $68 thousand or 0.5% from September 30, 2024[5] - Net loans receivable remained stable at $1,492,065 thousand, showing a slight increase from $1,493,827 thousand year-over-year[17] Interest Income and Margin - The net interest margin for the three months ended December 31, 2024, was 2.65%, up from 2.51% for the three months ended September 30, 2024[3] - The yield on loans was 5.27% for the quarter ended December 31, 2024, compared to 5.22% in the previous quarter[14] - Year-to-date net interest income reached $48,447 thousand, up from $35,840 thousand in the previous year[16] - Total interest income for the quarter was $22,595 thousand, an increase from $22,256 thousand in the same quarter last year, reflecting a growth of about 1.5%[18] Efficiency and Cost Management - Non-interest expense as a percentage of average assets was 2.75% for the quarter ended December 31, 2024, compared to 2.80% for the previous quarter[8] - The efficiency ratio improved to 87.20% for the quarter ended December 31, 2024, from 97.32% in the previous quarter[14] - Total noninterest expense was $14,247 thousand, slightly lower than $13,517 thousand in the same quarter last year, showing a decrease of approximately 5.4%[18] Capital Ratios - The Bank's tier 1 capital to adjusted average assets ratio was 8.46% as of December 31, 2024, an improvement of 0.08% from September 30, 2024[8] - Common equity tier 1 capital to risk-weighted assets was 11.32% as of December 31, 2024, compared to 11.10% in the previous quarter[14] - Common equity tier 1 capital to risk-weighted assets ratio was 11.32%, significantly above the minimum required ratio of 4.50%[19] Stock Performance - The closing stock price was $28.11 as of December 31, 2024, down from $31.98 in the previous quarter[14] - Tangible book value per diluted share was $29.48, an increase from $28.31 year-over-year[20] Other Income and Gains - A one-time gain of $1.2 million was recognized from the dissolution of a tax credit investment partnership during the three months ended December 31, 2024[4] - Noninterest income totaled $3,732 thousand for the quarter, up from $2,735 thousand a year ago, indicating a growth of about 36.5%[18] - Total revenue for the quarter was $16.339 million, an increase from $14.873 million in the previous quarter[20]

Core Viewpoint - Finward Bancorp has declared a dividend of $0.12 per share on its common stock, payable on February 3, 2025, to shareholders of record as of January 21, 2025 [1] Company Overview - Finward Bancorp is an independent financial holding company based in Munster, Indiana, primarily engaged in holding the stock of Peoples Bank, which offers a variety of financial services across 26 locations in Northwest Indiana and the Chicagoland area [2] Financial Performance and Future Outlook - The company has issued forward-looking statements regarding its financial performance and business prospects, which are subject to various risks and uncertainties [3][8] - The actual amounts and timing of future dividends or share repurchases will depend on factors such as capital position, financial performance, market conditions, and regulatory considerations [4]

Core Viewpoint - Finward Bancorp has declared a dividend of $0.12 per share on its common stock, payable on October 31, 2024, to shareholders of record by October 18, 2024 [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 across 26 locations in Northwest Indiana and the Chicagoland area [2] Dividend Declaration - The Board of Directors of Finward Bancorp declared a dividend of $0.12 per share on September 20, 2024, with a payment date set for October 31, 2024 [1]

Core Viewpoint - The article emphasizes the importance of identifying and maintaining trends in short-term investing, highlighting that sound fundamentals and positive earnings estimates are crucial for sustaining momentum in stock prices [1]. Group 1: Stock Screening and Selection - The "Recent Price Strength" screen is a unique short-term trading strategy that helps identify stocks with strong fundamentals capable of maintaining an uptrend [2]. - Stocks that pass this screen are typically trading in the upper portion of their 52-week high-low range, indicating bullish sentiment [2]. Group 2: Case Study - Finward Bancorp (FNWD) - Finward Bancorp (FNWD) has shown a solid price increase of 27.1% over the past 12 weeks, indicating strong investor interest [3]. - The stock has also increased by 14.2% over the last four weeks, suggesting that the upward trend is still intact [4]. - FNWD is currently trading at 88.3% of its 52-week high-low range, indicating a potential breakout [4]. Group 3: Fundamental Strength - FNWD holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises [5]. - The Zacks Rank system has a strong track record, with Zacks Rank 1 stocks averaging an annual return of +25% since 1988 [6]. - The average broker recommendation for FNWD is 1 (Strong Buy), reflecting high optimism from the brokerage community regarding its near-term price performance [6]. Group 4: Additional Opportunities - Besides FNWD, there are several other stocks that meet the criteria of the "Recent Price Strength" screen, suggesting further investment opportunities [7]. - The article encourages exploring over 45 Zacks Premium Screens tailored to different investing styles to identify potential winning stocks [7].

Core Insights - The article emphasizes the importance of timing and sustainability in short-term investing, highlighting that while trends can be beneficial, ensuring their longevity is crucial for success [1][2]. Group 1: Stock Performance - Finward Bancorp (FNWD) has shown a solid price increase of 12.6% over the past 12 weeks, indicating strong investor interest and potential for further upside [4]. - The stock has maintained a price increase of 0.1% over the last four weeks, suggesting that the upward trend is still intact [5]. - FNWD is currently trading at 82.2% of its 52-week high-low range, indicating it may be on the verge of a breakout [5]. Group 2: Fundamental Strength - FNWD holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, which are critical for near-term price movements [6]. - The stock has an Average Broker Recommendation of 1 (Strong Buy), reflecting high optimism from the brokerage community regarding its near-term performance [7]. Group 3: Investment Strategy - The "Recent Price Strength" screen is a useful tool for identifying stocks like FNWD that are on an uptrend supported by strong fundamentals [3]. - The article suggests that there are multiple stocks passing through the "Recent Price Strength" screen, encouraging investors to explore these options [8].

Core Viewpoint - Finward Bancorp has appointed three new independent directors to its Board, enhancing its governance and strategic capabilities as it aims to achieve its long-term goals [2][3]. Group 1: New Appointments - Martin P. Alwin, Jennifer R. Evans, and Carolyn M. Burke have been appointed as directors of Finward Bancorp and Peoples Bank, effective September 9, 2024 [1][2]. - Mr. Alwin will serve as a Class I director until the 2025 annual meeting, Ms. Evans as a Class II director until the 2026 meeting, and Ms. Burke as a Class III director until the 2027 meeting [3]. - The Board size has been increased from 10 to 11 directors to accommodate Mr. Alwin's appointment [3]. Group 2: Directors' Backgrounds - Martin P. Alwin has extensive experience in investment banking and financial services, previously serving as Vice President at Piper Jaffray & Co. and holding an MBA from the University of Chicago [4]. - Jennifer R. Evans has a strong legal and compliance background, having served as General Counsel at PrivateBancorp and CIBC, with a focus on enterprise risk management [5]. - Carolyn M. Burke has a robust financial services background, currently serving as CFO of Exron Capital and previously holding senior roles at UBS and Mesirow, with a CPA designation [6][7]. Group 3: Company Overview - Finward Bancorp is an independent financial holding company based in Munster, Indiana, primarily focused on holding the stock of Peoples Bank, which offers a range of financial services across 26 locations [8].

Core Viewpoint - The article emphasizes the importance of identifying and maintaining stock price trends for successful short-term investing, highlighting the use of a specific screening strategy to find stocks with strong fundamentals and positive price momentum [1][2]. Group 1: Stock Screening Strategy - The "Recent Price Strength" screen is designed to identify stocks with sufficient fundamental strength to sustain their upward price trends, focusing on those trading in the upper portion of their 52-week high-low range, indicating bullishness [3]. - Finward Bancorp (FNWD) is highlighted as a suitable candidate from this screen, having experienced a price increase of 10.3% over the past 12 weeks, reflecting investor confidence in its potential upside [4]. - A recent price increase of 5.4% over the last four weeks further confirms that FNWD's price trend remains intact, with the stock currently trading at 81.4% of its 52-week high-low range, suggesting a potential breakout [5]. Group 2: Fundamental Strength - FNWD holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, which are critical for near-term price movements [6]. - The Zacks Rank system has a strong historical performance, with Zacks Rank 1 stocks averaging an annual return of +25% since 1988, indicating the effectiveness of this ranking in identifying profitable stocks [7]. - The Average Broker Recommendation for FNWD is 1 (Strong Buy), reflecting high optimism from the brokerage community regarding the stock's near-term performance [7]. Group 3: Additional Insights - The article suggests that FNWD's price trend is unlikely to reverse soon, and encourages investors to explore other stocks that meet the criteria of the "Recent Price Strength" screen for potential investment opportunities [8]. - The Zacks Research Wizard is mentioned as a tool for backtesting stock-picking strategies, allowing investors to verify the effectiveness of their approaches based on historical performance [9].