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].

MUNSTER, Ind., July 30, 2024 (GLOBE NEWSWIRE) -- Finward Bancorp (Nasdaq: FNWD) (the "Bancorp"), the holding company for Peoples Bank (the "Bank"), today announced corrections to its press release issued on July 24, 2024. Specifically, the following press release (i) corrects the "Performance Ratios" table set forth in the rear portion of the original press release to include line items for return on equity, return on assets, tax adjusted net interest margin, noninterest income / average assets, noninterest ...

| Performance Ratios | | | Quarter ended, | | | Six months ended, | | | --- | --- | --- | --- | --- | --- | --- | --- | | | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | | | | | December | September | | | | | | June 30, | March 31, | 31, | 30, | June 30, | June 30, | June 30, | | | 2024 | 2024 | 2023 | 2023 | 2023 | 2024 | 2023 | | Return on equity | 0.39% | 24.97% | 4.92% | 6.55% | 7.05% | 12.81% | 6.74% | | Return on assets | 0.03% | 1.77% | 0.29% | 0.42 ...

PART I. Financial Information [Unaudited Financial Statements and Notes](index=3&type=section&id=Item%201.%20Unaudited%20Financial%20Statements%20and%20Notes) This section presents the unaudited consolidated financial statements for Finward Bancorp as of March 31, 2024, and for the three months then ended, including the balance sheet, statements of income, comprehensive income, changes in stockholders' equity, and cash flows, along with detailed notes explaining the basis of presentation and significant accounting policies [Consolidated Financial Statements](index=3&type=section&id=Consolidated%20Financial%20Statements) The consolidated financial statements show a decrease in total assets to $2.07 billion from $2.11 billion at year-end 2023, primarily due to a reduction in deposits, while net income for Q1 2024 surged to $9.3 million, largely driven by a significant one-time gain on the sale of real estate Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Total Assets | $2,071,782 | $2,108,279 | | Net Loans Receivable | $1,489,446 | $1,493,827 | | Total Deposits | $1,747,478 | $1,813,421 | | Total Liabilities | $1,920,201 | $1,960,934 | | Total Stockholders' Equity | $151,581 | $147,345 | Consolidated Income Statement Highlights (in thousands, except per share data) | Account | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net Interest Income | $11,780 | $14,668 | | Provision for Credit Losses | $0 | $488 | | Noninterest Income | $13,475 | $2,608 | | **Net Income** | **$9,279** | **$2,240** | | Diluted EPS | $2.17 | $0.51 | - A significant driver of the increase in noninterest income and net income in Q1 2024 was an **$11.86 million** gain on the sale of real estate[9](index=9&type=chunk) - Cash flows from investing activities were a net inflow of **$39.2 million** in Q1 2024, driven by proceeds from the sale of premises and equipment (**$17.7 million**) and securities (**$14.7 million**), contrasting with a net outflow of **$3.0 million** in Q1 2023[15](index=15&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes detail the composition of the Bancorp's assets and liabilities, including a securities portfolio with significant unrealized losses, a loan portfolio concentrated in commercial and residential real estate, and an allowance for credit losses, along with information on intangibles, deposits, derivatives, borrowings, and a recent sale-leaseback transaction Securities Available-for-Sale (in thousands) | Security Type | Fair Value (Mar 31, 2024) | Gross Unrealized Losses | | :--- | :--- | :--- | | U.S. government sponsored entities | $7,866 | $(1,018) | | CMOs and RMBS | $117,897 | $(27,180) | | Municipal securities | $219,028 | $(45,164) | | Collateralized debt obligations | $1,442 | $(724) | | **Total** | **$346,233** | **$(74,086)** | Loan Portfolio Composition (in thousands) | Loan Type | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Residential real estate | $480,255 | $484,948 | | Commercial real estate | $518,166 | $503,202 | | Multifamily | $220,789 | $219,917 | | Construction and land development | $102,446 | $115,227 | | Commercial business | $94,521 | $97,386 | | Other | $88,749 | $97,875 | | **Total Loans Receivable** | **$1,504,926** | **$1,508,755** | - The allowance for credit losses (ACL) was **$18.8 million** as of March 31, 2024, a slight increase from **$18.77 million** at year-end 2023, with no provision for credit losses in Q1 2024 compared to a **$488 thousand** provision in Q1 2023[9](index=9&type=chunk)[74](index=74&type=chunk) - On February 22, 2024, the Bank completed a sale-leaseback transaction for five branch properties, receiving an aggregate purchase price of **$17.2 million** and entering into 15-year triple net lease agreements, resulting in a gain of **$11.8 million**[9](index=9&type=chunk)[105](index=105&type=chunk) - The Bancorp utilized the Federal Reserve's Bank Term Funding Program (BTFP), with **$65 million** in funding outstanding as of March 31, 2024, before the program ceased new loans on March 11, 2024[104](index=104&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=36&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the Bancorp's financial condition and operating results, highlighting a significant increase in net income in Q1 2024 due to a one-time gain, while addressing challenges such as net interest margin compression and significant regulatory actions related to Bank Secrecy Act compliance [Regulatory Developments](index=36&type=section&id=Regulatory%20Developments) The Bank entered into a Consent Order with the FDIC and Indiana DFI on November 7, 2023, concerning deficiencies in its Bank Secrecy Act (BSA) compliance program, mandating enhanced oversight, revised BSA programs, and a concurrent Memorandum of Understanding (MOU) requiring prior regulatory approval for cash dividends - On November 7, 2023, the Bank entered into a Consent Order with the FDIC and Indiana DFI related to Bank Secrecy Act (BSA) compliance deficiencies found during a February 2023 examination[110](index=110&type=chunk) - Corrective actions required by the order include strengthening board oversight, revising the BSA compliance program, implementing a customer due diligence program, and reviewing past account activity[111](index=111&type=chunk) - A concurrent Memorandum of Understanding (MOU) requires the Bank to refrain from paying cash dividends without prior regulatory approval[115](index=115&type=chunk) [Financial Condition](index=37&type=section&id=Financial%20Condition) As of March 31, 2024, total assets decreased by **1.7%** to **$2.1 billion** from year-end 2023, with the net loan portfolio remaining stable at **$1.5 billion**, while non-performing loans slightly increased to **0.78%** of total loans, and total deposits declined by **3.6%** to **$1.7 billion** - Total assets decreased by **$36.5 million** (**1.7%**) during Q1 2024, while net loans receivable remained stable at approximately **$1.5 billion**[117](index=117&type=chunk)[118](index=118&type=chunk) Asset Quality Ratios | Metric | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Nonperforming loans to total loans | 0.78% | 0.76% | | ACL-to-total loans | 1.25% | 1.24% | | ACL-to-non-performing loans | 158.7% | 163.9% | - The securities portfolio decreased by **$25.1 million** (**6.8%**) to **$346.2 million**, partly due to a sale of **$15.1 million** in securities which resulted in a **$531 thousand** realized loss, and accumulated other comprehensive losses increased to **$56.3 million**[132](index=132&type=chunk) - Total deposits decreased by **$65.9 million** (**3.6%**) to **$1.7 billion**, primarily due to cyclical outflows from municipal depositors and a planned reduction in deposit pricing[138](index=138&type=chunk) [Liquidity and Capital Resources](index=48&type=section&id=Liquidity%20and%20Capital%20Resources) The Bancorp maintains a strong liquidity position with **$516.4 million** in total available liquidity as of March 31, 2024, and stockholders' equity increased to **$151.6 million** in Q1 2024, with capital ratios remaining well above regulatory minimums, though dividend payments are subject to regulatory approval - As of March 31, 2024, the Bancorp had total available liquidity of **$516.4 million**, including borrowing capacity from the FHLB and Federal Reserve facilities[161](index=161&type=chunk)[162](index=162&type=chunk) Bank Capital Ratios | Ratio | March 31, 2024 | Minimum for Well Capitalized | | :--- | :--- | :--- | | Common Equity Tier 1 Capital | 10.89% | 6.50% | | Tier 1 Capital | 10.89% | 8.00% | | Total Capital | 11.92% | 10.00% | | Tier 1 Leverage | 8.24% | 5.00% | - The Bancorp's ability to pay dividends is dependent on the Bank, which must seek regulatory approval prior to paying cash dividends due to the MOU[170](index=170&type=chunk) [Results of Operations](index=51&type=section&id=Results%20of%20Operations) For Q1 2024, net income was **$9.3 million**, a **314.2%** increase from **$2.2 million** in Q1 2023, driven by a **$10.9 billion** increase in noninterest income primarily from an **$11.8 million** gain on a real estate sale, despite a **19.7%** decrease in net interest income due to rising funding costs Key Performance Metrics | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net Income (in millions) | $9.3 | $2.2 | | Return on Average Assets (ROA) | 1.77% | 0.43% | | Return on Average Equity (ROE) | 24.97% | 6.42% | - Net interest income decreased by **$2.9 million** (**19.7%**) YoY, as the cost of funds rose to **2.53%** from **1.41%**, outpacing the increase in asset yields[174](index=174&type=chunk) - The tax-adjusted net interest margin compressed to **2.57%** in Q1 2024 from **3.23%** in Q1 2023, primarily due to the higher interest rate environment increasing funding costs[174](index=174&type=chunk)[175](index=175&type=chunk) - Noninterest income surged by **416.7%** to **$13.5 million**, mainly due to an **$11.8 million** gain on the sale of real estate from a sale-leaseback transaction[177](index=177&type=chunk) - Noninterest expense increased by **5.5%** to **$15.0 million**, driven by higher consulting, legal, and operational enhancement costs[179](index=179&type=chunk)[180](index=180&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=53&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) This item is marked as not applicable in the report, with detailed disclosures regarding market risk, primarily interest rate risk, provided within Item 2, Management's Discussion and Analysis - The report states this item is not applicable, with market risk disclosures included in the MD&A section[187](index=187&type=chunk) [Controls and Procedures](index=53&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that the Bancorp's disclosure controls and procedures were effective as of March 31, 2024, with no material changes to internal control over financial reporting during the quarter - The CEO and CFO concluded that the Bancorp's disclosure controls and procedures were effective as of March 31, 2024[188](index=188&type=chunk) - There were no material changes to the internal control over financial reporting during the first quarter of 2024[189](index=189&type=chunk) PART II. Other Information [Legal Proceedings](index=55&type=section&id=Item%201.%20Legal%20Proceedings) The Bancorp and its subsidiaries are involved in routine legal proceedings in the ordinary course of business, which management does not expect to have a material adverse effect on the company's financial position - The company is involved in ordinary course legal proceedings which are not expected to have a material adverse effect on its financial condition[191](index=191&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=55&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The Bancorp has a stock repurchase program authorized in 2014 for up to 50,000 shares, with no shares repurchased under this program during Q1 2024, though 2,816 shares were reacquired from employees at an average price of **$24.11** per share to satisfy tax withholding obligations - No shares were repurchased under the publicly announced stock repurchase program during Q1 2024, with **48,828** shares remaining for potential repurchase[193](index=193&type=chunk)[194](index=194&type=chunk) - In March 2024, the company reacquired **2,816** shares from employees at an average price of **$24.11** to cover tax withholding on vested restricted stock awards[194](index=194&type=chunk)[197](index=197&type=chunk)

| Performance Ratios | | | Quarter ended, | | | | --- | --- | --- | --- | --- | --- | | | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | | | | December | September | | | | | March 31, | 31, | 30, | June 30, | March 31, | | | 2024 | 2023 | 2023 | 2023 | 2023 | | Return on equity | 24.97% | 4.92% | 6.55% | 7.05% | 6.42% | | Return on assets | 1.77% | 0.29% | 0.42% | 0.46% | 0.43% | | Noninterest income / average assets | 2.57% | 0.53% | 0.46% | 0.57% | 0.50% | | Noninterest expense / av ...

MUNSTER, Ind., April 24, 2024 (GLOBE NEWSWIRE) -- Finward Bancorp (NASDAQ:FNWD) (the "Bancorp"), the holding company for Peoples Bank (the "Bank"), today announced that net income available to common stockholders was $9.3 million, or $2.17 per diluted share, for the quarter ended March 31, 2024, as compared to $2.2 million, or $0.51 per diluted share, for the corresponding prior year period. Increases to our profitability results and performance ratio increases reported for quarter ended March 31, 2024 were ...

PART I [Business](index=5&type=section&id=Item%201.%20Business) Finward Bancorp, holding company for Peoples Bank, offers banking and wealth management services in Indiana and Illinois, recently expanding and addressing regulatory compliance - Finward Bancorp is the holding company for Peoples Bank, an Indiana-chartered commercial bank, primarily attracting public deposits and originating loans for single-family residences and commercial real estate in Northwest Indiana and Cook County, Illinois[13](index=13&type=chunk)[14](index=14&type=chunk) - On January 31, 2022, the Bancorp acquired Royal Financial, Inc. for an implied valuation of approximately **$56.7 million**, expanding its banking network in Cook and DuPage Counties, Illinois[15](index=15&type=chunk) - The Bancorp's Wealth Management Group provides a range of services including estate and retirement planning, custodial services, and trust management[14](index=14&type=chunk) - On August 9, 2023, the Bancorp dissolved its captive insurance subsidiary, NWIN Risk Management, Inc., to simplify its organizational structure in response to proposed IRS regulations regarding "micro-captives"[17](index=17&type=chunk) [Lending Activities](index=8&type=section&id=Lending%20Activities) The Bancorp maintains a diversified loan portfolio of approximately $1.51 billion, primarily in real estate, focusing on adjustable-rate and shorter-term loans to manage interest rate risk Loan Portfolio Composition (2022-2023) | Loan Type | Dec 31, 2023 ($ thousands) | Dec 31, 2022 ($ thousands) | | :--- | :--- | :--- | | Residential real estate | $484,948 | $484,595 | | Home equity | $46,599 | $38,978 | | Commercial real estate | $503,202 | $486,431 | | Construction and land development | $115,227 | $108,926 | | Multifamily | $219,917 | $251,014 | | Commercial business | $97,386 | $93,278 | | Consumer & Other | $41,476 | $45,349 | | **Total Loans Receivable** | **$1,508,755** | **$1,508,571** | - The Bancorp's lending strategy stresses quality growth, product diversification, and competitive pricing, with a focus on adjustable-rate and shorter-term loans to manage interest rate risk[25](index=25&type=chunk) - The maximum loan amount to a single borrower was approximately **$27.5 million** as of December 31, 2023, based on regulatory limits, with no loans exceeding this limit[27](index=27&type=chunk) [Non-Performing Assets, Asset Classification and Provision for Credit Losses](index=13&type=section&id=Non-Performing%20Assets%2C%20Asset%20Classification%20and%20Provision%20for%20Credit%20Losses) Non-performing loans significantly decreased to $11.5 million in 2023, while the Allowance for Credit Losses increased to $18.8 million due to CECL adoption and higher net charge-offs Non-Performing Assets Summary (2022-2023) | Metric | 2023 ($ thousands) | 2022 ($ thousands) | | :--- | :--- | :--- | | Non-accrual loans | $9,608 | $18,128 | | Accruing loans past due 90+ days | $1,843 | $248 | | **Total Non-performing loans** | **$11,451** | **$18,376** | | Ratio of non-performing loans to total loans | 0.76% | 1.21% | Allowance for Credit Losses (ACL) Activity - 2023 | Metric | Amount ($ thousands) | | :--- | :--- | | Balance at beginning of year | $12,897 | | Adoption of ASC 326 (CECL) | $5,158 | | PCD Gross-up | $1,029 | | Net charge-offs | ($2,008) | | Provision for credit losses | $1,692 | | **Balance at end of year** | **$18,768** | - On January 1, 2023, the Bancorp adopted ASU No. 2016-13 (CECL), resulting in an **$8.3 million** implementation entry that increased the ACL by **$5.2 million** and the unfunded commitment liability by **$3.1 million**[77](index=77&type=chunk) - Substandard loans decreased from **$23.0 million** in 2022 to **$12.3 million** in 2023, while special mention loans increased from **$11.6 million** to **$19.2 million** over the same period[61](index=61&type=chunk)[62](index=62&type=chunk) [Investment Activities](index=19&type=section&id=Investment%20Activities) The Bancorp's $371.4 million investment portfolio, primarily in AFS municipal and mortgage-backed securities, provides liquidity and stable earnings, with unrealized losses attributed to interest rate changes Investment Portfolio Composition (Carrying Value) | Security Type | 2023 ($ thousands) | 2022 ($ thousands) | | :--- | :--- | :--- | | U.S. government sponsored agencies | $7,883 | $7,625 | | Collateralized Mortgage Obligations & MBS | $123,464 | $134,116 | | Municipal Securities | $238,670 | $227,718 | | Collateralized Debt Securities | $1,357 | $1,048 | | U.S. treasury securities | $0 | $389 | | **Total** | **$371,374** | **$370,896** | - Two trust preferred securities with a cost basis of **$2.2 million** were on non-accrual status as of December 31, 2023, due to a temporary delay in interest payments[85](index=85&type=chunk) [Sources of Funds](index=20&type=section&id=Sources%20of%20Funds) Deposits are the primary funding source, supplemented by FHLB and BTFP borrowings, contributing to $824.0 million in total available liquidity Average Deposits and Rates Paid | Deposit Type | 2023 Avg. Amount ($ thousands) | 2023 Avg. Rate | 2022 Avg. Amount ($ thousands) | 2022 Avg. Rate | | :--- | :--- | :--- | :--- | :--- | | Noninterest bearing demand | $323,694 | - | $377,408 | - | | Interest bearing demand | $344,449 | 0.96% | $374,815 | 0.36% | | MMDA accounts | $284,910 | 2.73% | $286,155 | 0.37% | | Savings accounts | $343,008 | 0.05% | $416,898 | 0.05% | | Certificates of deposit | $488,025 | 2.91% | $368,322 | 0.26% | | **Total deposits** | **$1,784,086** | **1.43%** | **$1,823,598** | **0.20%** | - The Bancorp participated in the Federal Reserve's Bank Term Funding Program (BTFP), accessing **$100 million** in 2023, with an outstanding balance of **$80 million** at year-end[94](index=94&type=chunk) - As of December 31, 2023, the Bancorp had available liquidity of **$824.0 million**, including borrowing capacity from the FHLB and Federal Reserve facilities[94](index=94&type=chunk) [Regulation and Supervision](index=26&type=section&id=Regulation%20and%20Supervision) Finward Bancorp and Peoples Bank are extensively regulated, meeting capital requirements, but are subject to a recent Consent Order and MOU restricting dividends due to BSA compliance issues - On November 7, 2023, the Bank entered into a Consent Order with the FDIC and Indiana DFI related to Bank Secrecy Act (BSA) compliance, requiring enhancements to its BSA program, internal controls, and staffing[124](index=124&type=chunk)[209](index=209&type=chunk) - Concurrently, the Bank entered into a Memorandum of Understanding (MOU) which requires it to refrain from paying cash dividends without prior regulatory approval and to implement plans regarding operations, capital, and strategy[124](index=124&type=chunk)[265](index=265&type=chunk) Bank Regulatory Capital Ratios (as of Dec 31, 2023) | Capital Ratio | Actual Ratio | Minimum for Adequacy | Minimum to be Well Capitalized | | :--- | :--- | :--- | :--- | | Common equity tier 1 capital | 10.4% | 4.5% | 6.5% | | Tier 1 capital | 10.4% | 6.0% | 8.0% | | Total capital | 11.4% | 8.0% | 10.0% | | Tier 1 leverage | 7.8% | 4.0% | 5.0% | [Risk Factors](index=35&type=section&id=Item%201A.%20Risk%20Factors) The Bancorp faces credit, market, liquidity, and operational risks, compounded by economic conditions, intense competition, and regulatory actions including a recent Consent Order and MOU - The Bancorp is subject to a Consent Order and MOU with regulators, which is expected to result in additional compliance expenses and may limit or delay the ability to obtain regulatory approval for expansionary activities, with failure to comply potentially leading to further regulatory action[209](index=209&type=chunk)[210](index=210&type=chunk) - A significant portion of the loan portfolio (**$681.4 million**, or **45.2%**) consists of fixed-rate loans, which exposes the bank to interest rate risk, as a prolonged increase in market rates could adversely affect net interest income[182](index=182&type=chunk) - The Bancorp faces liquidity risk, which could be impacted by factors such as market downturns, failures of other financial institutions reducing market confidence, or regulatory actions limiting access to funding[179](index=179&type=chunk) - Increased unrealized losses in the investment portfolio, driven by rising interest rates, reduce book capital and could affect liquidity if securities must be sold at a loss[180](index=180&type=chunk)[181](index=181&type=chunk) - The business faces strong competition from large regional banks, community banks, and non-bank financial technology ("FinTech") companies, which could impact loan and deposit growth and net interest margins[219](index=219&type=chunk)[220](index=220&type=chunk)[222](index=222&type=chunk) [Unresolved Staff Comments](index=47&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) There are no unresolved staff comments to report - Not applicable[235](index=235&type=chunk) [Cybersecurity](index=48&type=section&id=Item%201C.%20Cybersecurity) The Board's Risk Management Committee oversees cybersecurity risk, with the program based on FFIEC guidance and NIST standards, requiring continuous investment against evolving threats - The Board of Directors has delegated primary oversight of cybersecurity risk to its Risk Management Committee, which receives quarterly reports from the CISO and CRO[236](index=236&type=chunk) - The Bancorp's cybersecurity processes are based on the FFIEC guidance and the CRI Profile, which aligns with the NIST Cybersecurity Framework[237](index=237&type=chunk) - During 2023, the Bancorp did not discover any material cybersecurity incidents[162](index=162&type=chunk) [Properties](index=49&type=section&id=Item%202.%20Properties) The Bancorp operates 26 banking locations across Indiana and Illinois, owning 21 properties with a net book value of $38.4 million - The Bancorp operates **26** branch locations, with **14** in Northwest Indiana and **12** in Illinois (11 in Cook County, 1 in DuPage County)[240](index=240&type=chunk) - The Bank owns **21** of its branch properties and leases **5** under long-term agreements[240](index=240&type=chunk) - The net book value of property, premises, and equipment totaled **$38.4 million** at December 31, 2023[241](index=241&type=chunk) [Legal Proceedings](index=50&type=section&id=Item%203.%20Legal%20Proceedings) The Bancorp is involved in ordinary course legal proceedings, with management not anticipating a material adverse effect on its financial position - The company is involved in legal proceedings in the ordinary course of business, but management believes the outcomes will not have a material adverse effect on its financial position[242](index=242&type=chunk) [Mine Safety Disclosures](index=50&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[243](index=243&type=chunk) [Information About Our Executive Officers](index=50&type=section&id=Item%204.5%20Information%20About%20Our%20Executive%20Officers) This section provides background information on the Bancorp's four executive officers, including their roles and ages Executive Officers (as of Dec 31, 2023) | Executive Officer | Age | Position | | :--- | :--- | :--- | | Benjamin J. Bochnowski | 43 | President, CEO of Finward Bancorp, CEO of Peoples Bank | | Robert T. Lowry | 62 | Executive Vice President, Chief Operating Officer | | Todd M. Scheub | 56 | Executive Vice President, Chief Revenue Officer of Finward Bancorp, President of Peoples Bank | | Benjamin L. Schmitt | 43 | Senior Vice President, Chief Financial Officer and Treasurer | PART II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=52&type=section&id=Item%205.%20Market%20for%20the%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Finward Bancorp's common stock trades on Nasdaq, with 4.3 million shares outstanding, and the company has an active stock repurchase program - The Bancorp's common stock is listed on the Nasdaq Capital Market under the symbol "FNWD"[248](index=248&type=chunk) - A stock repurchase program authorized in 2014 allows for the repurchase of up to **50,000 shares**, with **48,828 shares** remaining available for repurchase under this program as of December 31, 2023[249](index=249&type=chunk)[250](index=250&type=chunk) - During 2023, no shares were repurchased under the publicly announced program; however, **5,684 shares** were reacquired from employees to satisfy tax withholding obligations on vested restricted stock awards[249](index=249&type=chunk)[251](index=251&type=chunk) [Reserved](index=53&type=section&id=Item%206.%20%5BReserved%5D) This item is reserved [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=53&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Net income decreased to $8.4 million in 2023 due to lower net interest income and margin compression, while total assets grew slightly and asset quality improved amidst CECL adoption and regulatory actions Key Financial Metrics (2023 vs 2022) | Metric | 2023 | 2022 | | :--- | :--- | :--- | | Net Income | $8.4 million | $15.1 million | | Diluted EPS | $1.96 | $3.60 | | Return on Average Assets | 0.40% | 0.74% | | Return on Average Equity | 6.28% | 10.47% | | Net Interest Margin | 2.83% | 3.56% | - The decrease in net income was primarily driven by a **$12.6 million** (**18.8%**) decrease in net interest income, as the cost of funds rose significantly from **0.33%** in 2022 to **1.96%** in 2023[299](index=299&type=chunk) - The company adopted the CECL accounting standard on January 1, 2023, which required a significant adjustment to the allowance for credit losses[258](index=258&type=chunk) - The company is addressing regulatory actions, including a Consent Order on BSA compliance and an MOU that restricts dividend payments without prior regulatory approval[259](index=259&type=chunk)[265](index=265&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=67&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) This item is not applicable to the company - Not applicable[316](index=316&type=chunk) [Financial Statements](index=68&type=section&id=Item%208.%20Financial%20Statements) This section presents the consolidated financial statements for 2023 and 2022, including the auditor's report, balance sheets, income statements, and detailed notes [Consolidated Financial Statements](index=70&type=section&id=Consolidated%20Financial%20Statements) The consolidated financial statements show total assets of $2.11 billion and net income of $8.4 million in 2023, with an increase in stockholders' equity Consolidated Balance Sheet Highlights | Account | Dec 31, 2023 ($ thousands) | Dec 31, 2022 ($ thousands) | | :--- | :--- | :--- | | Total Assets | $2,108,279 | $2,070,339 | | Net Loans Receivable | $1,493,827 | $1,500,734 | | Total Deposits | $1,813,421 | $1,775,017 | | Total Liabilities | $1,960,934 | $1,933,946 | | Total Stockholders' Equity | $147,345 | $136,393 | Consolidated Income Statement Highlights | Account | 2023 ($ thousands) | 2022 ($ thousands) | | :--- | :--- | :--- | | Net Interest Income | $54,555 | $67,149 | | Provision for Credit Losses | $2,025 | $0 | | Noninterest Income | $10,746 | $11,509 | | Noninterest Expense | $55,231 | $62,100 | | **Net Income** | **$8,380** | **$15,080** | [Notes to Consolidated Financial Statements](index=75&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes detail accounting policies, CECL adoption, portfolio composition, goodwill, regulatory capital, and a significant subsequent sale-leaseback transaction - The Bancorp adopted ASU 2016-13 (CECL) on January 1, 2023, resulting in a day-one after-tax decrease to retained earnings of **$6.1 million** and an increase to the allowance for credit losses on loans of **$6.2 million**[384](index=384&type=chunk)[386](index=386&type=chunk) - On January 29, 2024, the Bank entered into a sale-leaseback agreement for **5** branch properties for an aggregate purchase price of **$17.2 million**, with the transaction closing on February 22, 2024[507](index=507&type=chunk)[508](index=508&type=chunk) - Goodwill from past acquisitions totaled **$22.4 million** as of December 31, 2023, and no impairment was recorded[448](index=448&type=chunk) - As of December 31, 2023, the Bancorp had outstanding loan origination commitments of **$244.1 million** and standby letters of credit totaling **$18.3 million**[481](index=481&type=chunk) [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=119&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) There were no changes in or disagreements with accountants on accounting and financial disclosure to report - There are no items reportable under this item[510](index=510&type=chunk) [Controls and Procedures](index=119&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that disclosure controls and internal control over financial reporting were effective as of December 31, 2023, with no material changes during the year - The CEO and CFO concluded that the Bancorp's disclosure controls and procedures were effective as of December 31, 2023[510](index=510&type=chunk) - Management's assessment, based on the COSO framework, determined that the Bancorp's internal control over financial reporting was effective as of December 31, 2023[513](index=513&type=chunk) [Other Information](index=121&type=section&id=Item%209B.%20Other%20Information) There were no items to report under this section - There are no items reportable under this item[515](index=515&type=chunk) [Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](index=121&type=section&id=Item%209C.%20Disclosure%20Regarding%20Foreign%20Jurisdictions%20that%20Prevent%20Inspections) This item is not applicable to the company - Not applicable[516](index=516&type=chunk) PART III [Directors, Executive Officers and Corporate Governance](index=122&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information on directors, corporate governance, and executive officers is incorporated by reference from the 2024 Proxy Statement - The required information for this item is incorporated by reference from the company's 2024 Definitive Proxy Statement[518](index=518&type=chunk) [Executive Compensation](index=122&type=section&id=Item%2011.%20Executive%20Compensation) Information on executive compensation is incorporated by reference from the 2024 Proxy Statement - The required information for this item is incorporated by reference from the company's 2024 Definitive Proxy Statement[519](index=519&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=122&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information on security ownership and equity compensation plans is incorporated by reference from the 2024 Proxy Statement Equity Compensation Plan Information (as of Dec 31, 2023) | Plan Category | Securities to be issued upon exercise of outstanding options, warrants and rights | Weighted-average exercise price of outstanding options, warrants and rights | Securities remaining available for future issuance | | :--- | :--- | :--- | :--- | | Equity compensation plans approved by security holders | 0 | $0.00 | 224,845 | | **Total** | **0** | **$0.00** | **224,845** | [Certain Relationships and Related Transactions, and Director Independence](index=122&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information on related party transactions and director independence is incorporated by reference from the 2024 Proxy Statement - The required information for this item is incorporated by reference from the company's 2024 Definitive Proxy Statement[524](index=524&type=chunk) [Principal Accountant Fees and Services](index=122&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) Information on principal accountant fees and services is incorporated by reference from the 2024 Proxy Statement - The required information for this item is incorporated by reference from the company's 2024 Definitive Proxy Statement[525](index=525&type=chunk) PART IV [Exhibits and Financial Statement Schedules](index=123&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists all financial statements, schedules, and exhibits filed with the Form 10-K report - This item lists all financial statements and exhibits filed with the Form 10-K, including the auditor's report, consolidated financial statements, and various corporate and compensatory agreements[527](index=527&type=chunk)[529](index=529&type=chunk)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 Commission File Number: 0-26128 Finward Bancorp FORM 10-Q (Exact name of registrant as specified in its charter) (Mark One) Indiana 35-1927981 (State or other jurisdiction of incorporation or organization) ☒ Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934. 9204 Columbia Avenue Munster, Indiana 46321 (Address of principal executive offices) (ZIP code) For the quarterly period ended September 30, 20 ...

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 June 30, 2023 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: 0-26128 Finward Bancorp (Exact name of registrant as specified in its charter) (State or other jurisdiction of incor ...

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, 2023 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: 0-26128 Finward Bancorp (Exact name of registrant as specified in its charter) (State or other jurisdiction of inco ...