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]

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].