Finward Bancorp reported net income of $2.09 million for the quarter ended June 30, 2026, or $0.48 per diluted share, compared with $2.24 million, or $0.52 per diluted share, in the prior quarter. Net interest income was $15.18 million and net interest margin was 3.25% (tax-equivalent 3.37%). Loans grew to $1.50 billion and deposits totaled $1.73 billion at quarter end.

Financial Highlights

  • Net income: $2.09 million for Q2 2026; net income for Q1 2026 was $2.24 million.
  • Diluted earnings per share: $0.48 for Q2 2026 (Q1 2026: $0.52).
  • Net interest income: $15.18 million for Q2 2026; net interest margin 3.25% (tax-equivalent 3.37%).
  • Total loans (loans receivable): $1.503 billion as of June 30, 2026.
  • Total deposits: $1.733 billion as of June 30, 2026; non-interest-bearing deposits $270.7 million; certificates of deposit $497.4 million.

Business Highlights

  • Loan origination momentum: $81.3 million of new commercial loans originated in Q2 2026 versus $37.4 million in Q1 2026, driven by commercial business and commercial real estate pipelines.
  • Portfolio composition: commercial real estate owner-occupied $262.4 million (17.4% of loans) and non-owner occupied $334.9 million (22.3% of loans); office collateral comprises $41.2 million of loans.
  • Asset quality: non-performing loans increased to $16.5 million (1.10% of total loans) from $12.4 million (0.85%) at March 31, 2026; increases attributed to multiple credits across commercial real estate, multifamily and residential real estate.
  • Allowance for credit losses: $17.7 million (1.18% of loans) at June 30, 2026, with ACL coverage of non-performing loans at 106.9%.
  • Liquidity and funding: available liquidity of $604 million including FHLB and Federal Reserve capacity; borrowings increased modestly to support loan originations, with FHLB advances added during the quarter.

Original SEC Filing:

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