Finward Bancorp (Nasdaq: FNWD) reported unaudited financial results for the quarter ended September 30, 2026, filing an -K with the SEC on October 27, 2026.
Net income available to common stockholders was $1.4 million, or $0.31 per diluted share, for the third quarter of 2026. This represents a decrease from the $2.1 million, or $0.48 per diluted share, reported for the prior quarter ended June 30, 2026.
The Bancorp attributed the decline in earnings to merger-related expenses associated with its pending merger with First Financial. These costs included adjustments to compensation and benefits totaling $1.8 million and professional and outside services expenses of $536,000.
Despite the lower net income, the company reported an increase in its net interest margin. The tax-equivalent net interest margin was 3.51% for the third quarter of 2026, up from 3.37% in the second quarter. The company cited continued repricing and maturity of the loan portfolio as the primary driver for this increase.
Finward Bancorp also reported growth in its deposit base. Total deposits as of September 30, 2026, were $1.76 billion, an increase of $25.9 million, or 1.5%, compared to June 30, 2026. Core deposits, which include checking, savings, and money market accounts, totaled $1.3 billion and represented 71.9% of total deposits.
The company’s liquidity position remains strong, with available liquidity of $623 million as of September 30, 2026. This includes borrowing capacity from the Federal Home Loan Bank (FHLB) and Federal Reserve facilities.
Asset quality metrics showed stability. Non-performing loans totaled $16.8 million, or 1.12% of total loans, compared to $16.5 million, or 1.10%, in the prior quarter. The allowance for credit losses on loans was $17.5 million, or 1.17% of total loans receivable.
Finward Bancorp’s tier 1 leverage ratio was 9.29% as of September 30, 2026, exceeding all applicable regulatory capital requirements. However, tangible book value per share decreased to $31.07 from $35.75 in the previous quarter.
