Finward Bancorp (NASDAQ:FNWD) (the "Bancorp"), the holding company for Peoples Bank (the "Bank"), today announced that net income available to common stockholders was $3.5 million, or $0.81 per diluted share, for the quarter ended September 30, 2025, as compared to $2.2 million, or $0.50 per diluted share, for the quarter ended June 30, 2025. Selected performance metrics are as follows for the periods presented:

Performance Ratios
	Quarter ended
	9/30/2025	6/30/2025	3/31/2025	12/31/2024	9/30/2024
Return on equity	8.96%	5.66%	1.17%	5.39%	1.60%
Return on assets	0.68%	0.42%	0.09%	0.41%	0.12%
Net interest margin, tax-equivalent (non-GAAP)	3.18%	3.11%	2.95%	2.79%	2.66%
Non-interest income/average assets	0.57%	0.53%	0.43%	0.72%	0.55%
Non-interest expense/average assets	2.74%	2.90%	2.81%	2.75%	2.80%
Efficiency ratio	81.22%	88.92%	93.11%	87.20%	97.32%

"We continued to build momentum in the third quarter, delivering overall improved profitability. Margin expansion and stable credit contributed to further overall profitability gains, along with benefits in overhead efficiency. The recent rate cut by the Federal Reserve, coupled with our strengthened capital and liquidity position, provides a solid foundation for growth as we enter the final quarter of the year," said Benjamin Bochnowski, CEO. "We are well positioned to maintain our current trajectory, and I'm proud of our team and their disciplined execution that got us to this point."

Highlights of the current period include:

Net Interest Margin - The net interest margin for the quarter ended September 30, 2025 was 3.04% compared to 2.97% for the quarter ended June 30, 2025. Net interest margin on a tax-equivalent basis (a non-GAAP measure) for the quarter ended September 30, 2025 was 3.18%, as compared to 3.11% for the quarter ended June 30, 2025. The increased net interest margin from the prior quarter is primarily the result of increased loan yields from repricing, as well as customer payoffs of certain lower yielding loans.

Funding - As of September 30, 2025, deposits totaled $1.8 billion, an increase of $4.2 million, or 0.2% compared with June 30, 2025 balances, which also totaled $1.8 billion. As of September 30, 2025, non-interest-bearing deposits totaled $280.3 million, an increase of $9.1 million. Core deposits totaled $1.2 billion at September 30, 2025 and June 30, 2025. Core deposits include checking, savings, and money market accounts and represented 69.3% of the Bancorp's total deposits at September 30, 2025. As of September 30, 2025, balances for certificates of deposit totaled $536.7 million, compared to $542.7 million on June 30, 2025, a decrease of $6.0 million or 1.1%. The decrease in total portfolio deposits is primarily related to cyclical flows and continued adjustments to deposit pricing. In addition, as of September 30, 2025, borrowings and repurchase agreements totaled $103.4 million, a decrease of $9.9 million or 8.7%, compared to June 30, 2025. The decrease in borrowings was the result of the maturity of FHLB advances during the quarter.

As of September 30, 2025, 72.4% of our deposits are fully FDIC insured, and another 7.9% are further backed by the Indiana Public Deposit Insurance Fund. The Bancorp's liquidity position remains strong with solid core deposit customer relationships, excess cash, debt securities, contractual loan repayments, and access to diversified borrowing sources. As of September 30, 2025, the Bancorp had available liquidity of $737 million including borrowing capacity from the FHLB and Federal Reserve facilities.

Securities Portfolio - Securities available for sale balances increased by $7.3 million to $335.2 million as of September 30, 2025, compared to $327.8 million as of June 30, 2025. The increase in securities available for sale was primarily due to an increase in the fair value of the overall portfolio. The yield on the securities portfolio decreased to 2.40% for the three months ended September 30, 2025 from 2.42% for the three months ended June 30, 2025. Management did not execute any securities sale transactions during the quarter.

Lending - The Bank's aggregate loan portfolio totaled $1.5 billion on both September 30, 2025 and June 30, 2025. During the three months ended September 30, 2025, the Bank originated $62.6 million in new commercial loans, compared to $46.1 million during the three months ended June 30, 2025. At September 30, 2025, the Bancorp's portfolio loan balances in commercial real estate owner occupied properties totaled $252.9 million or 17.2% of total loan balances and commercial real estate non-owner occupied properties totaled $311.6 million or 21.2% of total loan balances. Of the $311.6 million in commercial real estate non-owner occupied properties balances, loans collateralized by office buildings represented $42.5 million or 2.9% of total loan balances.

Asset Quality - At September 30, 2025, non-performing loans totaled $13.9 million, compared to $13.5 million at June 30, 2025, an increase of $366 thousand or 2.7%. The Bank's ratio of non-performing loans to total loans was 0.94% at September 30, 2025, compared to 0.91% at June 30, 2025. The Bank's ratio of non-performing assets to total assets was 0.76% at September 30, 2025 and 0.74% at June 30, 2025. Management maintains a vigilant oversight of nonperforming loans through proactive relationship management. The Bank has no known credit exposures to non-depositary financial institutions at this time.

The allowance for credit losses (ACL) on loans totaled $18.0 million at September 30, 2025, or 1.22% of total loans receivable, compared to $18.2 million at June 30, 2025, or 1.22% of total loans receivable, a decrease of $229 thousand or 1.1%. The Bank's unused commitment reserve, included in other liabilities, totaled $1.7 million at September 30, 2025, compared to $2.0 million at June 30, 2025, a decrease of $361 thousand or 17.8%.

For the quarter ended September 30, 2025, the Bank recorded a net benefit from credit loss totaling $301 thousand based on net loan recoveries, reduction of certain loan segment balances, and other factors within the Bank's ACL modeling. The third quarter's benefit consisted of a $61 thousand provision for credit losses on loans, and a $361 thousand reversal of credit losses on unused commitments. For the quarter ended September 30, 2025, net loan charge-offs totaled $268 thousand, compared to net loan recoveries of $414 thousand for the quarter ended June 30, 2025. The allowance for credit losses as a percentage of non-performing loans, or coverage ratio, was 129.4% at September 30, 2025, compared to 133.0% at June 30, 2025.

Operating Expenses - Non-interest expense as a percentage of average assets was 2.74% for the quarter ended September 30, 2025, as compared to 2.90% for the quarter ended June 30, 2025. The decrease in non-interest expenses quarter over quarter was primarily attributable to lower data processing expenses and professional and outside services expense as well as lower federal deposit insurance premiums and other operational expenses. The Bank remains focused on identifying additional operating efficiencies and third-party expense reductions.

Capital Adequacy - The Bank's tier 1 leverage ratio was 8.77% as of September 30, 2025 and 8.69% as of June 30, 2025. The Bank's capital continues to exceed all applicable regulatory capital requirements as set forth in 12 C.F.R. § 324. The Bancorp's tangible book value per share (non-GAAP) was $32.77 at September 30, 2025, up from $30.16 as of June 30, 2025. Tangible common equity to tangible assets (non-GAAP) was 6.99% at September 30, 2025, up from 6.41% as of June 30, 2025. Excluding accumulated other comprehensive losses, tangible book value per share (non-GAAP) increased to $44.16 as of September 30, 2025, from $43.47 as of June 30, 2025.

Disclosures Regarding Non-GAAP Financial Measures

Reported amounts are presented in accordance with GAAP. In this press release, the Bancorp also provides certain financial measures identified as non-GAAP. The Bancorp's management believes that the non-GAAP information, which consists of tangible common equity, tangible common equity adjusted for accumulated other comprehensive losses, tangible book value per share, tangible book value per share adjusted for accumulated other comprehensive losses, tangible common equity/tangible assets, tangible common equity adjusted for other comprehensive loss/tangible assets, net interest margin on a tax-equivalent basis, and efficiency ratio which can vary from period to period, provides a better comparison of period to period operating performance. The net interest income and net interest margin on a tax-equivalent basis measures recognize the income tax savings when comparing taxable and tax-exempt assets. Interest income and yields on tax-exempt securities and loans are presented using the current federal corporate income tax rate of 21%. Management believes that it is standard practice in the banking industry to present net interest income and net interest margin on a fully tax-equivalent basis and that it may enhance comparability for peer comparison purposes. Additionally, the Bancorp believes this information is utilized by regulators and market analysts to evaluate a company's financial condition and, therefore, such information is useful to investors. These disclosures should not be viewed as a substitute for financial results in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures which may be presented by other companies. Refer to the "Reconciliation of non-GAAP Financial Measures" below for more information.

About Finward Bancorp

Finward Bancorp is a locally managed and independent financial holding company headquartered in Munster, Indiana, whose activities are primarily limited to holding the stock of Peoples Bank. Peoples Bank provides a wide range of personal, business, electronic and wealth management financial services from its 26 locations in Lake and Porter Counties in Northwest Indiana and Chicagoland. Finward Bancorp's common stock is quoted on The NASDAQ Stock Market, LLC under the symbol FNWD. The website ibankpeoples.com provides information on Peoples Bank's products and services, and Finward Bancorp's investor relations.

Forward Looking Statements

This press release may contain forward-looking statements regarding the financial performance, business prospects, growth and operating strategies of the Bancorp. For these statements, the Bancorp claims the protections of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Statements in this communication should be considered in conjunction with the other information available about the Bancorp, including the information in the filings the Bancorp makes with the SEC. Forward-looking statements provide current expectations or forecasts of future events and are not guarantees of future performance. The forward-looking statements are based on management's expectations and are subject to a number of risks and uncertainties. Forward-looking statements are typically identified by using words such as "anticipate," "estimate," "project," "intend," "plan," "believe," "will" and similar expressions in connection with any discussion of future operating or financial performance.

Although management believes that the expectations reflected in such forward-looking statements are reasonable, actual results may differ materially from those expressed or implied in such statements. Risks and uncertainties that could cause actual results to differ materially include: changes in domestic and international trade policies, including tariffs and other non-tariff barriers, and the effects of such changes on the Bank and its customers; risks related to the development and use of artificial intelligence (AI); the Bank's ability to demonstrate compliance with the terms of the previously disclosed memorandum of understanding entered into between the Bank and the Federal Deposit Insurance Corporation ("FDIC") and Indiana Department of Financial Institutions ("DFI"), or to demonstrate compliance to the satisfaction of the FDIC and/or DFI within prescribed time frames; the Bank's agreement under the memorandum of understanding to refrain from paying cash dividends without prior regulatory approval; changes in asset quality and credit risk; the inability to sustain revenue and earnings growth; changes in interest rates, market liquidity, and capital markets, as well as the magnitude of such changes, which may reduce net interest margins; inflation; further deterioration in the market value of securities held in the Bancorp's investment securities portfolio, whether as a result of macroeconomic factors or otherwise; customer acceptance of the Bancorp's products and services; customer borrowing, repayment, investment, and deposit practices; customer disintermediation; the introduction, withdrawal, success, and timing of business initiatives; competitive conditions; the inability to realize cost savings or revenues or to implement integration plans and other consequences associated with mergers, acquisitions, and divestitures; economic conditions; and the impact, extent, and timing of technological changes, capital management activities, regulatory actions by the Federal Deposit Insurance Corporation and Indiana Department of Financial Institutions, and other actions of the Federal Reserve Board and legislative and regulatory actions and reforms. Additional factors that could cause actual results to differ materially from those expressed in the forward-looking statements are discussed in the Bancorp's reports (such as the Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K) filed with the SEC and available at the SEC's Internet website (www.sec.gov). All subsequent written and oral forward-looking statements concerning matters attributable to the Bancorp or any person acting on its behalf are expressly qualified in their entirety by the cautionary statements above. Except as required by law, The Bancorp does not undertake any obligation to update any forward-looking statement to reflect circumstances or events that occur after the date the forward-looking statement is made.

In addition to the above factors, we also caution that the actual amounts and timing of any future common stock dividends or share repurchases will be subject to various factors, including our capital position, financial performance, capital impacts of strategic initiatives, market conditions, and regulatory and accounting considerations, as well as any other factors that our Board of Directors deems relevant in making such a determination. Therefore, there can be no assurance that we will repurchase shares or pay any dividends to holders of our common stock, or as to the amount of any such repurchases or dividends.

Performance Ratios

	Quarter Ended															Nine Months Ended
	9/30/2025			6/30/2025			3/31/2025			12/31/2024			9/30/2024			9/30/2025			9/30/2024
Return on equity		8.96	%		5.66	%		1.17	%		5.39	%		1.60	%		5.27	%		4.50	%
Return on assets		0.68	%		0.42	%		0.09	%		0.41	%		0.12	%		0.40	%		0.64	%
Yield on loans		5.49	%		5.36	%		5.25	%		5.27	%		5.22	%		5.37	%		5.12	%
Yield on security investments		2.40	%		2.42	%		2.38	%		2.34	%		2.37	%		2.40	%		2.39	%
Total yield on earning assets		4.91	%		4.82	%		4.71	%		4.74	%		4.70	%		4.82	%		4.62	%
Cost of interest-bearing deposits		2.16	%		2.12	%		2.17	%		2.41	%		2.47	%		2.15	%		2.40	%
Cost of repurchase agreements		3.37	%		3.32	%		3.35	%		3.65	%		4.04	%		3.35	%		3.93	%
Cost of borrowed funds		3.64	%		3.91	%		4.12	%		4.31	%		4.56	%		3.90	%		4.70	%
Total cost of interest-bearing liabilities		2.25	%		2.22	%		2.28	%		2.53	%		2.63	%		2.25	%		2.57	%
Net interest margin		3.04	%		2.97	%		2.81	%		2.65	%		2.53	%		2.94	%		2.49	%
Net interest margin, tax-equivalent (non-GAAP)⁽¹⁾		3.18	%		3.11	%		2.95	%		2.79	%		2.66	%		3.08	%		2.63	%
Non-interest income/average assets		0.57	%		0.53	%		0.43	%		0.72	%		0.55	%		0.51	%		1.21	%
Non-interest expense/average assets		2.74	%		2.90	%		2.81	%		2.75	%		2.80	%		2.81	%		2.82	%
Efficiency ratio (non-GAAP)⁽¹⁾		81.22	%		88.92	%		93.11	%		87.20	%		97.32	%		87.54	%		80.16	%

Non-performing assets to total assets		0.76	%		0.74	%		0.69	%		0.74	%		0.73	%		0.76	%		0.73	%
Non-performing loans to total loans		0.94	%		0.91	%		0.84	%		0.91	%		0.92	%		0.94	%		0.92	%
Allowance for credit losses to non-performing loans		129.41	%		133.01	%		143.84	%		123.10	%		134.12	%		129.41	%		134.12	%
Allowance for credit losses to loans receivable		1.22	%		1.22	%		1.20	%		1.12	%		1.23	%		1.22	%		1.23	%
Net charge-offs (recoveries) as a percentage of average loans receivable		0.07	%		(0.11	%)		0.01	%		0.59	%		0.05	%		(0.01	%)		(0.01	)%

Basic earnings per share	$	0.82		$	0.50		$	0.11		$	0.49		$	0.14		$	1.43		$	2.35
Diluted earnings per share	$	0.81		$	0.50		$	0.11		$	0.49		$	0.14		$	1.42		$	2.35
Weighted average common shares outstanding—basic		4,273,022			4,271,952			4,266,976			4,261,079			4,260,809			4,270,652			4,259,063
Weighted average common shares outstanding—diluted		4,299,007			4,291,319			4,284,496			4,286,742			4,281,148			4,291,171			4,271,664

Stockholders' equity to total assets		8.06	%		7.48	%		7.44	%		7.35	%		7.69	%		8.06	%		7.69	%
Tangible common equity to tangible assets (non-GAAP) ⁽¹⁾		6.99	%		6.41	%		6.34	%		6.24	%		6.58	%		6.99	%		6.58	%
Tangible common equity adjusted for accumulated other comprehensive loss to tangible assets (non-GAAP) ⁽¹⁾		9.42	%		9.24	%		9.23	%		9.10	%		8.93	%		9.42	%		8.93	%
Book value per share	$	38.24		$	35.67		$	35.10		$	35.10		$	36.99		$	38.24		$	36.99
Tangible common book value per share (non-GAAP) ⁽¹⁾	$	32.77		$	30.16		$	29.55		$	29.48		$	31.28		$	32.77		$	31.28
Tangible common book value per share adjusted for accumulated other comprehensive loss (non-GAAP) ⁽¹⁾	$	44.16		$	43.47		$	43.02		$	42.94		$	42.47		$	44.16		$	42.47
Closing stock price	$	32.09		$	27.62		$	29.10		$	28.11		$	31.98		$	32.09		$	31.98
Dividends declared per common share	$	0.12		$	0.12		$	—		$	0.12		$	0.12		$	0.24		$	0.36
(1) See the reconciliation of these non-GAAP measures to the most directly comparable GAAP measures on pg 13.

Average Balances, Interest, Rates

	Quarter Ended
	September 30, 2025							June 30, 2025							March 31, 2025
	Average Balance			Interest		Yield/Rate		Average Balance			Interest		Yield/Rate		Average Balance			Interest		Yield/Rate
ASSETS
Interest bearing deposits in other financial institutions	$	90,880		$	991	4.36	%	$	57,749		$	614	4.25	%	$	53,553		$	540	4.03	%
Federal funds sold		1,285			12	3.74	%		868			8	3.69	%		1,375			12	3.49	%
Securities available-for-sale		327,030			1,965	2.40	%		327,867			1,980	2.42	%		336,060			1,998	2.38	%
Loans receivable		1,474,324			20,246	5.49	%		1,486,861			19,940	5.36	%		1,498,312			19,655	5.25	%
Federal Home Loan Bank stock		6,547			126	7.70	%		6,547			128	7.82	%		6,547			136	8.31	%
Total interest earning assets		1,900,066		$	23,340	4.91	%		1,879,892		$	22,670	4.82	%		1,895,847		$	22,341	4.71	%
Cash and non-interest bearing deposits in other financial institutions		24,882							27,192							27,919
Allowance for credit losses		(18,243	)						(18,028	)						(16,946	)
Other non-interest bearing assets		152,135							152,880							153,148
Total assets	$	2,058,840						$	2,041,936						$	2,059,968

LIABILITIES AND STOCKHOLDERS' EQUITY
Interest-bearing deposits	$	1,478,543		$	7,996	2.16	%	$	1,470,225		$	7,780	2.12	%	$	1,481,377		$	8,044	2.17	%
Repurchase agreements		46,498			392	3.37	%		44,401			370	3.33	%		41,631			349	3.35	%
Borrowed funds		55,904			509	3.64	%		58,995			575	3.90	%		61,613			635	4.12	%
Total interest bearing liabilities		1,580,945		$	8,897	2.25	%		1,573,621		$	8,725	2.22	%		1,584,621		$	9,028	2.28	%
Non-interest bearing deposits		285,347							278,620							279,013
Other non-interest bearing liabilities		36,397							37,703							40,923
Total liabilities		1,902,689							1,889,944							1,904,557
Total stockholders' equity		156,151							151,992							155,411
Total liabilities and stockholders' equity	$	2,058,840						$	2,041,936						$	2,059,968

Net interest income				$	14,443						$	13,945						$	13,313
Return on average assets		0.68	%						0.42	%						0.09	%
Return on average equity		8.96	%						5.66	%						1.17	%
Net interest margin		3.04	%						2.97	%						2.81	%
Net interest margin, tax-equivalent (non-GAAP)⁽¹⁾		3.18	%						3.11	%						2.95	%
Net interest spread		2.66	%						2.60	%						2.43	%
Ratio of interest-earning assets to interest-bearing liabilities	1.20x							1.19x							1.20x
(1) See the reconciliation of non-GAAP measures to the most directly comparable GAAP measures on pg 13.

Consolidated Balance Sheets

	As of
(Dollars in thousands)	9/30/2025			6/30/2025			3/31/2025			12/31/2024			9/30/2024
ASSETS
Cash and non-interest bearing deposits in other financial institutions	$	19,458		$	23,027		$	18,563		$	17,883		$	23,071
Interest bearing deposits in other financial institutions		84,157			79,976			52,829			52,047			48,025
Federal funds sold		563			411			975			654			553
Total cash and cash equivalents		104,178			103,414			72,367			70,584			71,649
Securities available-for-sale		335,150			327,845			330,127			333,554			350,027
Loans held-for-sale		2,641			834			2,849			1,253			2,567
Loans receivable, net of deferred fees and costs		1,473,774			1,484,278			1,491,696			1,508,976			1,508,242
Less: allowance for credit losses		(17,977	)		(18,184	)		(17,955	)		(16,911	)		(18,516	)
Net loans receivable		1,455,797			1,466,094			1,473,741			1,492,065			1,489,726
Federal Home Loan Bank stock		6,547			6,547			6,547			6,547			6,547
Accrued interest receivable		7,585			7,651			7,821			7,721			7,442
Premises and equipment		45,544			46,179			46,680			47,259			47,912
Cash value of bank owned life insurance		33,843			33,932			33,712			33,514			33,312
Goodwill		22,395			22,395			22,395			22,395			22,395
Other intangible assets		1,273			1,414			1,635			1,860			2,203
Other assets		37,771			41,606			41,840			43,947			40,882
Total assets	$	2,052,724		$	2,057,911		$	2,039,714		$	2,060,699		$	2,074,662
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Non-interest bearing	$	280,296		$	271,172		$	281,461		$	263,324		$	285,157
Interest bearing		1,470,350			1,483,678			1,468,923			1,497,242			1,463,653
Total		1,750,646			1,754,850			1,750,384			1,760,566			1,748,810
Repurchase agreements		48,426			48,331			45,053			40,116			43,038
Borrowed funds		55,000			65,000			56,657			65,000			85,000
Accrued expenses and other liabilities		33,157			35,477			35,813			43,603			38,259
Total liabilities		1,887,229			1,903,658			1,887,907			1,909,285			1,915,107
Stockholders' Equity:
Preferred stock, no par or stated value; 10,000,000 shares authorized, none outstanding		-			-			-			-			-
Common stock, no par or stated value; 10,000,000 shares authorized⁽¹⁾		-			-			-			-			-
Additional paid-in capital		70,233			70,263			70,132			70,034			69,916
Accumulated other comprehensive loss		(49,266	)		(57,560	)		(58,244	)		(58,084	)		(48,241	)
Retained earnings		144,528			141,550			139,919			139,464			137,880
Total stockholders' equity		165,495			154,253			151,807			151,414			159,555
Total liabilities and stockholders' equity	$	2,052,724		$	2,057,911		$	2,039,714		$	2,060,699		$	2,074,662

(1) Shares of common stock issued and outstanding were 4,327,511 at 9/30/2025; 4,324,889 at 6/30/2025; 4,324,485 at 3/31/2025; 4,313,698 at 12/31/24; and 4,313,940 at 9/30/24.

Consolidated Statements of Income

	Quarter Ended
(Dollars in thousands, except per share data)	9/30/2025			6/30/2025			3/31/2025		12/31/2024			9/30/2024
Interest income:
Loans	$	20,246		$	19,940		$	19,655	$	19,802		$	19,660
Securities & short-term investments		3,094			2,730			2,686		2,793			2,812
Total interest income		23,340			22,670			22,341		22,595			22,472
Interest expense:
Deposits		7,996			7,780			8,045		8,812			8,946
Borrowings		901			945			983		1,176			1,520
Total interest expense		8,897			8,725			9,028		9,988			10,466
Net interest income		14,443			13,945			13,313		12,607			12,006
Provision for (benefit from) credit losses		(301	)		(274	)		454		(579	)		-
Net interest income after provision for credit losses		14,744			14,219			12,859		13,186			12,006
Non-interest income:
Fees and service charges		1,463			1,330			1,109		1,439			1,463
Wealth management operations		759			696			619		728			731
Gain on tax credit investment		23			-			67		1,236			-
Gain on sale of loans held-for-sale, net		265			378			230		328			338
Increase in cash value of bank owned life insurance		210			220			198		202			205
Gain (loss) on sale of real estate		(56	)		-			-		(212	)		-
Other		249			59			6		11			130
Total non-interest income		2,913			2,683			2,229		3,732			2,867
Non-interest expense:
Compensation and benefits		7,330			7,313			7,372		6,628			6,963
Occupancy and equipment		2,004			1,935			2,111		2,045			2,181
Data processing		1,116			1,341			1,039		1,202			1,165
Federal deposit insurance premiums		399			471			433		457			435
Marketing		257			214			86		220			209
Professional and outside services		945			1,115			1,260		1,341			1,251
Technology		549			545			454		509			602
Other		1,497			1,852			1,717		1,845			1,668
Total non-interest expense		14,097			14,786			14,472		14,247			14,474
Income before income taxes		3,560			2,116			616		2,671			399
Income tax expenses (benefit)		63			(35	)		161		569			(207	)
Net income	$	3,497		$	2,151		$	455	$	2,102		$	606

Earnings per common share:
Basic	$	0.82		$	0.50		$	0.11	$	0.49		$	0.14
Diluted	$	0.81		$	0.50		$	0.11	$	0.49		$	0.14

Consolidated Statements of Income (cont'd)

	Nine Months Ended
(Dollars in thousands, except per share data)	9/30/2025			9/30/2024
Interest income:
Loans	$	59,841		$	57,713
Securities & short-term investments		8,510			8,870
Total interest income		68,351			66,583
Interest expense:
Deposits		23,821			26,350
Borrowings		2,829			4,393
Total interest expense		26,650			30,743
Net interest income		41,701			35,840
Provision for (benefit from) credit losses		(121	)		76
Net interest income after provision for credit losses		41,822			35,764
Non-interest income:
Fees and service charges		3,902			3,873
Wealth management operations		2,074			2,127
Gain on tax credit investment		90			-
Gain on sale of loans held-for-sale, net		873			810
Increase in cash value of bank owned life insurance		628			610
Gain (loss) on sale of real estate		(56	)		11,873
Loss on sale of securities, net		—			(531	)
Other		314			154
Total non-interest income		7,825			18,916
Non-interest expense:
Compensation and benefits		22,015			21,109
Occupancy and equipment		6,050			6,205
Data processing		3,496			3,470
Federal deposit insurance premiums		1,303			1,333
Marketing		557			579
Professional and outside services		3,320			4,064
Technology		1,548			1,734
Other		5,066			5,401
Total non-interest expense		43,355			43,895
Income before income taxes		6,292			10,785
Income tax expenses		189			756
Net income	$	6,103		$	10,029

Earnings per common share:
Basic	$	1.43		$	2.35
Diluted	$	1.42		$	2.35

Loans

	As of
(Dollars in thousands)	9/30/2025		6/30/2025			3/31/2025			12/31/2024			9/30/2024		9/30/2025 vs 6/30/2025					9/30/2025 vs 9/30/2024
Residential real estate	$	450,007	$	457,248		$	458,424		$	467,293		$	471,156	$	(7,241	)	(1.6	)%	$	(21,149	)	(4.5	)%
Home equity		51,813		51,112			49,752			49,758			49,106		701		1.4	%		2,707		5.5	%
Commercial real estate		564,558		551,091			554,866			551,674			539,972		13,467		2.4	%		24,586		4.6	%
Construction and land development		79,678		74,795			86,728			82,874			87,923		4,883		6.5	%		(8,245	)	(9.4	)%
Multifamily		192,698		200,440			204,964			212,455			218,037		(7,742	)	(3.9	)%		(25,339	)	(11.6	)%
Commercial business		96,192		105,636			99,519			104,246			97,900		(9,444	)	(8.9	)%		(1,708	)	(1.7	)%
Consumer		348		2,347			504			551			522		(1,999	)	(85.2	)%		(174	)	(33.3	)%
Manufactured homes		24,372		25,146			25,762			26,708			27,462		(774	)	(3.1	)%		(3,090	)	(11.3	)%
Government		12,298		14,628			9,279			11,024			12,969		(2,330	)	(15.9	)%		(671	)	(5.2	)%
Loans receivable		1,471,964		1,482,443			1,489,798			1,506,583			1,505,047		(10,479	)	(0.7	)%		(33,083	)	(2.2	)%
Net deferred loan origination costs		1,719		2,012			2,209			2,439			2,606		(293	)	(14.6	)%		(887	)	(34.0	)%
Loan clearing funds		91		(177	)		(311	)		(46	)		589		268		(151.4	)%		(498	)	(84.6	)%
Loans receivable, net	$	1,473,774	$	1,484,278		$	1,491,696		$	1,508,976		$	1,508,242	$	(10,504	)	(0.7	)%	$	(34,468	)	(2.3	)%

Deposits

	As of
(Dollars in thousands)	9/30/2025		6/30/2025		3/31/2025		12/31/2024		9/30/2024		9/30/2025 vs 6/30/2025					9/30/2025 vs 9/30/2024
Checking	$	579,760	$	593,471	$	589,403	$	591,487	$	579,132	$	(13,711	)	(2.3	)%	$	628		0.1	%
Savings		257,058		266,070		274,028		275,121		279,126		(9,012	)	(3.4	)%		(22,068	)	(7.9	)%
Money market		377,155		352,616		342,106		333,705		328,329		24,539		7.0	%		48,826		14.9	%
Certificates of deposit		536,673		542,693		544,847		560,253		562,223		(6,020	)	(1.1	)%		(25,550	)	(4.5	)%
Total deposits	$	1,750,646	$	1,754,850	$	1,750,384	$	1,760,566	$	1,748,810	$	(4,204	)	(0.2	)%	$	1,836		0.1	%

Asset Quality

	As of and for the Quarter Ended
(Dollars in thousands)	9/30/2025		6/30/2025		3/31/2025		12/31/2024		9/30/2024
Non-accruing loans	$	13,892	$	13,526	$	12,483	$	13,738	$	13,806
Accruing loans delinquent more than 90 days		-		145		-		-		-
Securities in non-accrual		1,616		1,616		1,630		1,419		1,440
Total nonperforming assets	$	15,508	$	15,287	$	14,113	$	15,157	$	15,246

Allowance for credit losses (ACL):
ACL specific allowances for collateral dependent loans	$	912	$	570	$	259	$	284	$	1,821
ACL general allowances for loan portfolio		17,065		17,614		17,696		16,627		16,695
Total ACL	$	17,977	$	18,184	$	17,955	$	16,911	$	18,516

Allowance for Credit Losses

	As of and for the Quarter Ended
(Dollars in thousands)	9/30/2025			6/30/2025			3/31/2025			12/31/2024			9/30/2024
Beginning allowance for credit losses	$	18,184		$	17,955		$	16,911		$	18,516		$	18,330
Provision for (benefit from) loan losses		61			(185	)		1,077			597			372
Net (charge-offs) recoveries		(268	)		414			(33	)		(2,202	)		(186	)
Ending allowance for credit losses	$	17,977		$	18,184		$	17,955		$	16,911		$	18,516

Bank-Level Regulatory Capital Requirements

	September 30, 2025
	Actual⁽¹⁾				Minimum Required For Capital Adequacy Purposes					Minimum Required To Be Well Capitalized Under Prompt Corrective Action Regulations
(Dollars in thousands)	Amount		Ratio		Amount		Ratio			Amount		Ratio
Common equity tier 1 capital to risk-weighted assets	$	184,560	11.49	%	$	72,261		4.50	%	$	104,376	6.50	%
Tier 1 capital to risk-weighted assets	$	184,560	11.49	%	$	96,348		6.00	%	$	128,463	8.00	%
Total capital to risk-weighted assets	$	204,202	12.72	%	$	128,463		8.00	%	$	160,579	10.00	%
Tier 1 leverage ratio	$	184,560	8.77	%	$	84,146		4.00	%	$	105,182	5.00	%


(1) Current quarter ratios are estimated.

Reconciliation of Non-GAAP Performance Measures

	Quarter Ended
(Dollars in thousands, except per share amounts)	9/30/2025			6/30/2025			3/31/2025			12/31/2024			9/30/2024
Tangible Common Ratios
Stockholder's equity (GAAP)	$	165,495		$	154,253		$	151,807		$	151,414		$	159,555
Less: Goodwill (GAAP)		(22,395	)		(22,395	)		(22,395	)		(22,395	)		(22,395	)
Less: Other intangibles (GAAP)		(1,273	)		(1,414	)		(1,635	)		(1,860	)		(2,203	)
Tangible common equity (non-GAAP)	$	141,827		$	130,444		$	127,777		$	127,159		$	134,957
Add: Accumulated other comprehensive loss (GAAP)		49,266			57,560			58,244			58,084			48,241
Tangible common equity adjusted for accumulated other comprehensive loss (non-GAAP) ⁽¹⁾	$	191,093		$	188,004		$	186,021		$	185,243		$	183,198
Total assets (GAAP)	$	2,052,724		$	2,057,911		$	2,039,714		$	2,060,699		$	2,077,067
Less: Goodwill (GAAP)		(22,395	)		(22,395	)		(22,395	)		(22,395	)		(22,395	)
Less: Other intangibles (GAAP)		(1,273	)		(1,414	)		(1,635	)		(1,860	)		(2,203	)
Tangible assets (non-GAAP)	$	2,029,056		$	2,034,102		$	2,015,684		$	2,036,444		$	2,052,469
Shares outstanding - end of quarter		4,327,511			4,324,889			4,324,485			4,313,698			4,313,940
Common book value per share (GAAP)	$	38.24		$	35.67		$	35.10		$	35.10		$	36.99
Tangible common book value per share (non-GAAP)	$	32.77		$	30.16		$	29.55		$	29.48		$	31.28
Tangible common book value per share adjusted for accumulated other comprehensive loss (non-GAAP)	$	44.16		$	43.47		$	43.02		$	42.94		$	42.47
Total equity to total assets (GAAP)		8.06	%		7.50	%		7.44	%		7.35	%		7.69	%
Tangible common equity to tangible assets (non-GAAP)		6.99	%		6.41	%		6.34	%		6.24	%		6.58	%
Tangible common equity adjusted for accumulated other comprehensive loss to tangible assets (non-GAAP)		9.42	%		9.24	%		9.23	%		9.10	%		8.93	%

Calculation of net interest margin, taxable-equivalent basis
Net interest income (GAAP)	$	14,443		$	13,945		$	13,313		$	12,607		$	12,006
Tax-equivalent adjustment on securities and loans ⁽²⁾		663			674			670			674			678
Net interest income (tax-equivalent basis)	$	15,106		$	14,619		$	13,983		$	13,281		$	12,684
Total average earning assets	$	1,900,066		$	1,879,892		$	1,895,847		$	1,905,333		$	1,910,731
Net interest margin		3.04	%		2.97	%		2.81	%		2.65	%		2.53	%
Net interest margin (tax-equivalent basis)		3.18	%		3.11	%		2.95	%		2.79	%		2.66	%

Efficiency ratio
Total non-interest expense	$	14,097		$	14,786		$	14,472		$	14,247		$	14,474
Total revenue		17,356			16,628			15,542			16,339			14,873
Efficiency ratio		81.22	%		88.92	%		93.11	%		87.20	%		97.32	%

(1) Tangible common equity adjusted for accumulated other comprehensive loss is a non-GAAP financial measure used by management to evaluate the Company's capital position without the impact of unrealized losses recorded in accumulated other comprehensive loss. This measure adjusts tangible common equity by adding back unrealized losses included in accumulated other comprehensive loss.
(2) The tax equivalent adjustment represents the increase in net interest income needed to reflect the tax-exempt income from certain investment securities and loans on tax-equivalent basis using a federal statutory corporate rate of 21%.

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Finward Bancorp Announces Third Quarter 2025 Results