Finward Bancorp(FNWD) - 2025 Q1 - Quarterly Results

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].