Finward Bancorp(US:FNWD)2026-01-27 21:03Financial Performance - Net income available to common stockholders for Q4 2025 was $2.0 million, or $0.46 per diluted share, down from $3.5 million, or $0.81 per diluted share in Q3 2025[1]. - Net income for Q4 2025 was $1,984, a decrease of 43.3% from $3,497 in Q3 2025[27]. - Earnings per common share for Q4 2025 were $0.46, down from $0.82 in Q3 2025[27]. - Total stockholders' equity increased to $170,161 thousand in Q4 2025 from $156,151 thousand in Q3 2025[21]. - Total stockholders' equity increased to $174,663, up 5.3% from $165,495 in Q3 2025[26]. Asset Quality - Non-performing loans decreased to $11.9 million, or 0.82% of total loans, down from $13.9 million, or 0.94% in Q3 2025[9]. - Non-performing loans to total loans ratio improved to 0.82% in Q4 2025 from 0.94% in Q3 2025[18]. - Nonperforming assets totaled $13,781 thousand, down from $15,508 thousand in the previous quarter and $15,157 thousand a year ago, indicating improved asset quality[33]. - The allowance for credit losses on loans was $17.5 million, or 1.21% of total loans, a slight decrease from $18.0 million, or 1.22% in Q3 2025[6]. - The allowance for credit losses (ACL) decreased to $17,506 thousand, down from $17,977 thousand in the previous quarter, with a provision for loan losses of $(170) thousand[34]. Revenue and Income - Net interest income increased to $15,042 thousand in Q4 2025 from $14,443 thousand in Q3 2025[23]. - Total interest income for Q4 2025 was $23,412, an increase of 0.3% compared to $23,340 in Q3 2025[27]. - Non-interest income for Q4 2025 was $1,473, a significant decrease of 49.5% from $2,913 in Q3 2025[27]. - Net interest income after provision for credit losses rose to $15,126, up 2.6% from $14,744 in the previous quarter[27]. Deposits and Loans - Total deposits decreased by $23.7 million, or 1.4%, to $1.7 billion as of December 31, 2025, with non-interest-bearing deposits down by $12.9 million[5]. - Total deposits amounted to $1,726,971 thousand, reflecting a decrease of 1.4% from $1,750,646 thousand in the previous quarter and a decline of 1.9% from $1,760,566 thousand year-over-year[31]. - Net loans receivable decreased to $1,432,881 from $1,455,797, reflecting a decline of 1.6% quarter-over-quarter[24]. - Total loans receivable decreased to $1,450,387 thousand, down 1.6% from $1,473,774 thousand in the previous quarter and down 3.9% from $1,508,976 thousand a year ago[30]. - The Bank originated $68.9 million in new commercial loans during Q4 2025, compared to $62.6 million in Q3 2025[9]. Capital and Ratios - Return on equity decreased to 4.66% in Q4 2025 from 8.96% in Q3 2025, while return on assets fell to 0.39% from 0.68%[2]. - Common equity tier 1 capital ratio stood at 11.86%, well above the minimum required ratio of 4.50% for capital adequacy purposes[36]. - The Bank's tier 1 leverage ratio improved to 8.93% as of December 31, 2025, up from 8.77% in Q3 2025[10]. - Tangible book value per share increased to $34.92 from $32.77, while tangible common equity to tangible assets rose to 7.56% from 6.99%[10]. - The efficiency ratio was reported at 89.50%, compared to 81.22% in the previous quarter, reflecting increased operational costs[38]. Interest Margin - Net interest margin on a tax-equivalent basis increased to 3.32% in Q4 2025 from 3.18% in Q3 2025, driven by higher loan yields and reduced deposit costs[5]. - Net interest margin improved to 3.18% in Q4 2025 compared to 3.04% in Q3 2025[23]. - The net interest margin increased to 3.18%, up from 3.04% in the previous quarter and 2.65% a year ago, indicating improved profitability[38]. - Cost of interest-bearing deposits decreased to 2.09% in Q4 2025 from 2.16% in Q3 2025[21]. Securities and Investments - Securities available for sale decreased by $18.9 million to $316.2 million, with a yield decrease to 2.29% from 2.40%[9]. - The tax equivalent adjustment indicates an increase in net interest income required to reflect tax-exempt income from certain investment securities and loans, calculated using a federal statutory corporate rate of 21%[39].