Businesswireยท2025-10-28 21:30Core Insights - Finward Bancorp reported a net income of $3.5 million, or $0.81 per diluted share, for Q3 2025, an increase from $2.2 million, or $0.50 per diluted share, in Q2 2025 [1] - The company experienced improved profitability driven by margin expansion, stable credit, and enhanced overhead efficiency [1] Performance Metrics - Return on equity increased to 8.96% in Q3 2025 from 5.66% in Q2 2025 [1][10] - Return on assets rose to 0.68% in Q3 2025 compared to 0.42% in Q2 2025 [1][10] - Net interest margin on a tax-equivalent basis improved to 3.18% in Q3 2025 from 3.11% in Q2 2025 [1][10] Funding and Deposits - Total deposits reached $1.8 billion as of September 30, 2025, reflecting a slight increase of $4.2 million, or 0.2%, from Q2 2025 [4] - Non-interest-bearing deposits increased by $9.1 million to $280.3 million [4] - Core deposits remained stable at $1.2 billion, representing 69.3% of total deposits [4] Securities and Lending - Securities available for sale increased by $7.3 million to $335.2 million as of September 30, 2025 [4] - The Bank's loan portfolio totaled $1.5 billion, with new commercial loans originated amounting to $62.6 million in Q3 2025, up from $46.1 million in Q2 2025 [4] Asset Quality - Non-performing loans rose to $13.9 million, a 2.7% increase from $13.5 million in Q2 2025 [4] - The ratio of non-performing loans to total loans was 0.94% in Q3 2025, up from 0.91% in Q2 2025 [4] Operating Expenses and Efficiency - Non-interest expense as a percentage of average assets decreased to 2.74% in Q3 2025 from 2.90% in Q2 2025 [4] - The efficiency ratio improved to 81.22% in Q3 2025 from 88.92% in Q2 2025 [1][10] Capital Adequacy - The Bank's tier 1 leverage ratio was 8.77% as of September 30, 2025, up from 8.69% in Q2 2025 [4] - Tangible book value per share increased to $32.77 from $30.16 in the previous quarter [4]