Finward Bancorp Announces Earnings for the Quarter Ended March 31, 2025

Core Points - Finward Bancorp reported a net income of $456 thousand, or $0.11 per diluted share, for Q1 2025, a significant decrease from $2.1 million, or $0.49 per diluted share, in Q4 2024 and $9.3 million, or $2.17 per diluted share, in Q1 2024 [1][16] - The tax-adjusted net interest margin increased to 2.95% in Q1 2025 from 2.79% in Q4 2024, primarily due to reduced deposit and borrowing costs following the Federal Reserve's rate cuts [2][17] - Non-performing loans decreased to $12.5 million, or 0.84% of total loans, down from $13.7 million, or 0.91%, in the previous quarter, indicating improved asset quality [6][7] Financial Performance - The return on equity for Q1 2025 was 1.17%, down from 5.39% in Q4 2024, while the return on assets was 0.09%, compared to 0.41% in the previous quarter [1][15] - Non-interest expense as a percentage of average assets increased to 2.81% in Q1 2025 from 2.75% in Q4 2024, driven by higher compensation and benefit expenses [7][15] - The efficiency ratio worsened to 93.11% in Q1 2025 from 87.20% in Q4 2024, reflecting increased operational costs [1][15] Funding and Liquidity - Total deposits as of March 31, 2025, were $1.8 billion, a slight decrease of $10.2 million, or 0.6%, from the previous quarter [2][19] - The Bancorp's liquidity position remained strong with available liquidity of $697 million, including borrowing capacity from the FHLB and Federal Reserve [3][19] Credit Quality - The allowance for credit losses on loans increased to $17.9 million, or 1.20% of total loans, from $16.9 million, or 1.12%, in the previous quarter [4][5] - The net provision for credit loss expense was $454 thousand for Q1 2025, with net charge-offs significantly reduced to $32.7 thousand from $2.2 million in Q4 2024 [5][6] Securities and Lending - The securities available for sale decreased to $330.1 million as of March 31, 2025, down from $333.6 million in the previous quarter [6][19] - The aggregate loan portfolio remained stable at $1.5 billion, with new commercial loan originations increasing to $36.7 million in Q1 2025 from $25.0 million in Q4 2024 [6][19]