Finward Bancorp(US:FNWD)2020-11-06 21:30Financial Performance - Net income for the quarter ended September 30, 2020, was $4.9 million, resulting in earnings per common share of $1.42, with a return on average assets (ROA) of 1.33% and return on average stockholders' equity (ROE) of 13.42%[99] - For the nine months ended September 30, 2020, the Bancorp reported net income of $13.2 million, an increase of $3.3 million (34.0%) compared to $9.8 million for the same period in 2019[170] - The efficiency ratio improved to 59.1% for the quarter ended September 30, 2020, compared to 67.7% for the same quarter in 2019, primarily due to increased noninterest income and net interest income[168] - Total noninterest income for the quarter ended September 30, 2020, was $4.855 million, an increase of $1.958 million (67.6%) compared to $2.897 million for the same quarter in 2019[165] - Total noninterest income rose to $13,447 thousand for the nine months ended September 30, 2020, a 65.3% increase from $8,135 thousand in 2019[176] Asset and Loan Growth - As of September 30, 2020, NorthWest Indiana Bancorp had total assets of $1.5 billion, total loans receivable of $975.9 million, and total deposits of $1.3 billion[99] - Total assets increased by $152.3 million (11.5%) to $1.4 billion as of September 30, 2020, compared to $1.2 billion at December 31, 2019[118] - Net loans receivable rose to $975.9 million at September 30, 2020, up from $906.9 million at December 31, 2019, marking a growth of 7.6%[119] - Total loans reached $975,940 thousand at September 30, 2020, up from $906,869 thousand at December 31, 2019, marking an increase of 7.6%[137] Loan Quality and Risk - Non-performing loans increased to $15.06 million (1.54% of total loans) at September 30, 2020, compared to $7.37 million (0.81% of total loans) at December 31, 2019[123] - The Bancorp's non-performing loans to total assets ratio increased to 1.02% at September 30, 2020, compared to 0.55% at December 31, 2019[123] - The Bancorp's substandard loans totaled $17.46 million at September 30, 2020, compared to $8.09 million at December 31, 2019, indicating a rise of 115%[124] - The Bancorp's impaired loans totaled $12.32 million at September 30, 2020, compared to $7.22 million at December 31, 2019, reflecting an increase of 70%[128] Deposits and Funding - Total deposits grew to $1,280,656 thousand, a rise of 10.9% from $1,154,370 thousand at December 31, 2019, driven by management's sales efforts and participation in the PPP[144] - The total loans receivable to total deposits ratio was 76.2% at September 30, 2020, down from 78.6% at December 31, 2019[121] - The Bancorp's end-of-period borrowed funds increased by 22.1% to $31,145 thousand as of September 30, 2020, compared to $25,499 thousand at December 31, 2019[145] Interest Income and Margin - The net interest income for the quarter ended September 30, 2020, was $11.7 million, an increase of $893 thousand (8.3%) from $10.8 million in the same quarter of 2019[160] - The Bancorp's net interest margin on earning assets was 3.41% for the quarter ended September 30, 2020, compared to 3.56% for the same quarter in 2019[160] - Net interest income for the nine months ended September 30, 2020, was $33.8 million, an increase of $1.2 million (3.6%) compared to $32.6 million for the same period in 2019[171] Tax and Expenses - Income tax expenses for the quarter ended September 30, 2020, totaled $1.0 million, an increase of $659 thousand (187.7%) compared to $351 thousand for the same quarter in 2019[169] - Total noninterest expense increased to $29,544 thousand for the nine months ended September 30, 2020, reflecting a 5.6% rise from $27,982 thousand in 2019[178] - Compensation and benefits expenses rose by 10.6% to $15,851 thousand in 2020, driven by talent management and retention efforts[178] Capital and Liquidity - The Bancorp's Common Equity Tier 1 Capital ratio was 12.8% as of September 30, 2020, significantly exceeding the minimum requirement of 4.5%[157] - The Bancorp's total capital to risk-weighted assets ratio was 13.9% as of September 30, 2020, well above the required minimum of 8.0%[157] - The Bancorp's liquidity position remains strong, with sufficient on-balance sheet liquidity and contingent liquidity sources to meet funding demand[116] Operational Adjustments - The Bancorp has implemented remote working policies for 50% of its workforce to support social distancing measures during the pandemic[116] - The Bancorp approved 782 applications totaling $91.5 million under the U.S. Small Business Administration's Paycheck Protection Program, with an average loan size of approximately $117,000, aimed at retaining 10,758 employees[108]