Finward Bancorp(US:FNWD)2025-10-28 21:28Financial Performance - Net income available to common stockholders for Q3 2025 was $3.5 million, or $0.81 per diluted share, compared to $2.2 million, or $0.50 per diluted share in Q2 2025, reflecting a 59.1% increase in net income [1]. - Basic earnings per share for Q3 2025 was $0.82, significantly higher than $0.50 in Q2 2025 and $0.11 in Q1 2025 [20]. - Net income for Q3 2025 was $3,497, a significant increase of 62.5% from $2,151 in Q2 2025 [27]. - Earnings per common share for Q3 2025 were $0.82, up from $0.50 in Q2 2025, reflecting a growth of 64% [27]. Return Ratios - Return on equity improved to 8.96% in Q3 2025 from 5.66% in Q2 2025, while return on assets increased to 0.68% from 0.42% [2]. - Return on equity for Q3 2025 increased to 8.96%, up from 5.66% in Q2 2025 and 1.17% in Q1 2025 [19]. - Return on assets improved to 0.68% in Q3 2025, compared to 0.42% in Q2 2025 and 0.09% in Q1 2025 [19]. Asset and Liability Management - Total assets as of September 30, 2025, were $2,058,840,000, an increase from $2,041,936,000 at the end of Q2 2025 [22]. - Total liabilities decreased to $1,887,229 as of September 30, 2025, down from $1,903,658 on June 30, 2025, a decline of 0.86% [26]. - Total stockholders' equity rose to $165,495 as of September 30, 2025, up from $154,253 on June 30, 2025, representing a growth of 7.9% [26]. Loan and Deposit Activity - Total deposits reached $1.8 billion as of September 30, 2025, with non-interest-bearing deposits increasing by $9.1 million to $280.3 million [6]. - The Bank originated $62.6 million in new commercial loans during Q3 2025, up from $46.1 million in Q2 2025, indicating a 35.5% increase in loan originations [10]. - Non-performing loans increased to $13.9 million, representing 0.94% of total loans, up from 0.91% in Q2 2025 [10]. - Total deposits as of September 30, 2025, were $1,750,646 thousand, a slight decrease of 0.2% from $1,754,850 thousand in the previous quarter, but an increase of 0.1% compared to $1,748,810 thousand a year ago [31]. Credit Quality - The allowance for credit losses on loans was $18.0 million, or 1.22% of total loans, showing a slight decrease of 1.1% from the previous quarter [8]. - Non-performing loans to total loans ratio was 0.94% in Q3 2025, slightly up from 0.91% in Q2 2025 [19]. - The provision for loan losses was $61 thousand, compared to a benefit of $185 thousand in the previous quarter, indicating a shift in credit quality outlook [34]. Income and Expense - Total interest income for Q3 2025 was $23,340, an increase of 2.96% from $22,670 in Q2 2025 [27]. - Net interest income after provision for credit losses increased to $14,744 in Q3 2025, up from $14,219 in Q2 2025, representing a growth of 3.7% [27]. - Total non-interest expense decreased to $14,097 from $14,786, showing a reduction of approximately 4.66% [38]. Capital Ratios - The common equity tier 1 capital ratio was 11.49% as of September 30, 2025, exceeding the minimum required for capital adequacy purposes of 4.50% [36]. - Tangible common equity (non-GAAP) was reported at $141,827 thousand, an increase from $130,444 thousand in the previous quarter [37]. - Total equity to total assets (GAAP) improved to 8.06%, up from 7.50% in the previous quarter, indicating a stronger capital position [38]. Efficiency Metrics - Efficiency ratio improved to 81.22%, down from 88.92% in the prior quarter, indicating enhanced operational efficiency [38]. - Net interest margin improved to 3.04%, compared to 2.97% in the previous quarter, representing a growth of 0.07 percentage points [38].