Finward Bancorp Announces Earnings for the Quarter and Twelve Months Ended December 31, 2024

Core Points - Finward Bancorp reported a net income of $12.1 million, or $2.84 per diluted share, for the twelve months ended December 31, 2024, an increase from $8.4 million, or $1.96 per diluted share, in the prior year [1] - For the fourth quarter of 2024, net income was $2.1 million, or $0.49 per diluted share, compared to $606 thousand, or $0.14 per diluted share, in the previous quarter and $1.5 million, or $0.35 per diluted share, in the same quarter of 2023 [1] - The Bank's return on equity improved to 5.39% for the quarter ended December 31, 2024, up from 1.60% in the previous quarter [1][14] - The net interest margin for the three months ended December 31, 2024, was 2.65%, an increase from 2.51% in the prior quarter [2] - Total deposits as of December 31, 2024, were $1.8 billion, reflecting an increase of $11.8 million or 0.7% from the previous quarter [2] - The allowance for credit losses on loans decreased to $16.9 million, or 1.12% of total loans receivable, from $18.5 million, or 1.23%, in the prior quarter [5] - Non-performing loans totaled $13.7 million, a slight decrease from $13.8 million in the previous quarter, resulting in a non-performing loans ratio of 0.91% [6] Performance Metrics - The tax-adjusted net interest margin for the twelve months ended December 31, 2024, was 2.68%, down from 2.98% in the prior year [2] - Non-interest expense as a percentage of average assets was 2.75% for the quarter ended December 31, 2024, compared to 2.80% in the previous quarter [10] - The Bank's tier 1 capital to adjusted average assets ratio improved to 8.46% as of December 31, 2024, from 8.38% in the prior quarter [10] - The efficiency ratio improved to 87.20% for the quarter ended December 31, 2024, down from 97.32% in the previous quarter [14] Funding and Liquidity - As of December 31, 2024, the Bank had available liquidity of $687 million, including borrowing capacity from the FHLB and Federal Reserve facilities [4] - Non-interest-bearing deposits decreased by $21.8 million or 7.7% to $263.3 million compared to the previous quarter [2][3] - Borrowings and repurchase agreements totaled $105.0 million, a decrease of $22.9 million or 17.9% from the previous quarter [3] Loan Portfolio and Asset Quality - The Bank's aggregate loan portfolio remained stable at $1.5 billion as of December 31, 2024 [6] - The Bank originated $59.2 million in new commercial loans during the fourth quarter of 2024, compared to $70.4 million in the previous quarter [6] - The ratio of the allowance for credit losses to non-performing loans was 123.1% at December 31, 2024, down from 134.1% in the previous quarter [7]