Finward Bancorp reported its financial results for the second quarter of 2025, revealing a net income of $2.2 million, or $0.50 per diluted share, a significant increase from the $143,000, or $0.03 per diluted share, recorded in the same period last year. For the first half of 2025, net income totaled $2.6 million, down from $9.4 million in the prior year, reflecting a decrease in profitability largely attributed to a one-time gain from a sale-leaseback transaction in 2024. The company's return on average assets (ROA) improved to 0.42% for the quarter, while the return on average equity (ROE) was 5.66%.
Total assets as of June 30, 2025, stood at $2.1 billion, a slight decrease from $2.06 billion at the end of 2024. The loan portfolio remained stable at approximately $1.5 billion, with net loans receivable slightly declining from $1.51 billion at year-end 2024. The company’s total deposits decreased by 0.32% to $1.75 billion, with a notable increase in money market accounts, which rose by 5.7%. The decrease in overall deposits was primarily due to a reduction in certificate of deposit activity.
In terms of operational developments, Finward Bancorp has successfully resolved compliance issues related to the Bank Secrecy Act, leading to the termination of a Consent Order by the FDIC and the Indiana Department of Financial Institutions. Additionally, the company has entered into a memorandum of understanding with regulators to enhance certain operational areas, which may limit its ability to pay dividends without prior approval. The company’s capital ratios remain strong, with a Common Equity Tier 1 Capital ratio of 11.30%, well above the regulatory minimum.
Looking ahead, Finward Bancorp is focused on maintaining its liquidity position, which includes $728.5 million in available liquidity sources. The company is also monitoring its loan portfolio closely, particularly in the commercial real estate sector, which constitutes a significant portion of its lending activities. Management anticipates that the ongoing evaluation of market conditions and regulatory requirements will shape its strategic decisions in the coming months.
About Finward Bancorp
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