Finward Bancorp, the holding company for Peoples Bank, reported a net income of $12.1 million for the fiscal year ending December 31, 2024, marking a 44.8% increase from the previous year's net income of $8.4 million. This growth was primarily driven by higher noninterest income, including a significant gain from a sale-leaseback transaction and a tax credit investment, alongside a decrease in the provision for credit losses. The company's return on average assets improved to 0.58% from 0.40% in 2023, while the return on average equity rose to 8.06% from 6.28%.
Total assets for Finward Bancorp decreased by 2.3% to $2.1 billion, with interest-earning assets also declining by 2.9% to $2 billion. The loan portfolio, which constitutes the largest asset segment, totaled $1.5 billion, representing 73.2% of total assets. Notably, the commercial real estate loan segment grew to $551.7 million, up from $503.2 million in 2023, reflecting a strategic focus on this area despite prevailing market challenges such as elevated interest rates and reduced occupancy rates.
Operationally, the company maintained a strong capital position, with stockholders' equity increasing to $151.4 million from $147.3 million year-over-year. The allowance for credit losses stood at $16.9 million, down from $18.8 million in 2023, reflecting management's assessment of credit quality and economic conditions. The company also reported a decrease in non-performing loans, which totaled $13.7 million, compared to $9.6 million in the previous year, indicating improved asset quality.
In terms of strategic developments, Finward Bancorp entered into a Consent Order with the FDIC and the Indiana Department of Financial Institutions in November 2023, aimed at enhancing compliance with the Bank Secrecy Act. The company has since taken steps to address the findings from regulatory examinations, including strengthening its compliance programs and enhancing oversight. Additionally, the company has been actively managing its loan portfolio, particularly in commercial real estate, to mitigate risks associated with market fluctuations.
Looking ahead, Finward Bancorp anticipates continued challenges from economic conditions, including inflation and interest rate volatility, which may impact loan demand and credit quality. However, management remains optimistic about the company's ability to adapt and grow, supported by a solid capital base and ongoing strategic initiatives aimed at enhancing operational efficiency and compliance.
About Finward Bancorp
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