Finward Bancorp reports Q3 EPS 51c vs. $1.07 last year

As of September 30, 2023, the Bank’s tier 1 capital to adjusted average assets ratio totaled 7.8%, an increase of 0.2% from the ratio as of June 30, 2023, of 7.6%, and is within all regulatory capital requirements, and continues to be considered well capitalized. The Bancorp’s tangible book value per share was $21.63 at September 30, 2023, down from $25.41 as of December 31, 2022. Tangible common equity to total assets was 4.46% at September 30, 2023, down from 5.27% as of December 31, 2022. The decrease is due to increased accumulated other comprehensive losses compared to year-ended December 31, 2022. Excluding accumulated other comprehensive losses, tangible book value per share decreased to $39.96 as of September 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 $4.0 million. “Our customers remain our top priority, as well as the internal variables of our operations that we control. Operating expense control continues to show results, and we have been able to continue to improve credit quality. Internal efforts have resulted in stronger operations while we manage through the current interest rate cycle,” said Benjamin Bochnowski, chairman and chief executive officer. “We recognize the potential for higher-for-longer interest rates, and are evaluating capital, the balance sheet, and the margin appropriately. A smaller, more effective bank will be better suited to endure the interest rate cycle, and our attempts to shrink the balance sheet are evidenced in our asset levels this quarter. Finward will continue to evaluate all options to optimize our profile, while driving capital, earnings, and tangible book value as we work through the current cycle.”