Finward Bancorp reports Q2 EPS 57c vs. $1.04 last year

The net interest margin for the six months ended June 30, 2023, was 2.98%, compared to 3.50% for the six months ended June 30, 2022. As of June 30, 2023, the Bank’s tier 1 capital to adjusted average assets ratio totaled 7.6%, which is within all regulatory capital requirements, and continues to be considered well capitalized. The Bancorp’s tangible book value per share was $25.64 at June 30, 2023, up from $25.41 as of December 31, 2022. Tangible common equity to total assets was 5.11% at June 30, 2023, down from 5.27% as of December 31, 2022. The decrease is due to increased average assets compared to year-ended December 31, 2022. Excluding accumulated other comprehensive losses, tangible book value per share decreased to $39.62 as of June 30, 2023, from $40.36 as of December 31, 2022. The decrease is related to a reduction of retained earnings of $6.1 million due to the impact of the adoption of ASU No. 2016-13 and the payment of dividends of $2.7 million. “Business conditions have stabilized significantly over the second quarter, for both Peoples Bank and the industry more broadly. The Bank’s deposits were largely stable, although we did see continued movement of customers’ deposits from lower-cost to higher-cost deposit accounts. We have maintained a defensive liquidity position, and in this environment it is possible to generate some marginal income while we maintain our cash position. With that in mind, like many banks, we are focused on serving our core customers and communities with our capital and liquidity, and loan yields are starting to show some momentum,” said Benjamin Bochnowski, Chairman and CEO. “Our team has remained disciplined with operating expenses and we are serving our customers more efficiently and effectively. We anticipate that we could be at the top of the rate cycle for some time, and with that in mind, we are also highly focused on credit quality. We have been selective and diligent in our underwriting while we have reduced our number of non-performing loans.”