Finward Bancorp reported its financial results for the third quarter and the nine months ended September 30, 2024, highlighting a mixed performance in revenue and profitability compared to the previous fiscal period.

For the quarter ended September 30, 2024, the Bancorp recorded net income of $606,000, a significant decline of 72.3% from $2.2 million in the same quarter of 2023. This resulted in earnings per share dropping to $0.14 from $0.52. The decrease in net income was attributed to a reduction in net interest income, which fell to $12.0 million from $13.1 million, reflecting an 8.6% decrease. The weighted-average cost of interest-bearing liabilities increased to 2.63%, up from 2.16% in the prior year, contributing to a narrower interest rate spread of 2.07%, down from 2.35%.

In contrast, the nine-month period showed a more favorable trend, with net income rising to $10.0 million, up 46% from $6.9 million in the same period of 2023. Earnings per share for the nine months increased to $2.35 from $1.60. This growth was supported by a substantial increase in noninterest income, which surged to $18.9 million, a 136.1% increase compared to $8.0 million in the prior year. Key contributors included a gain on the sale of real estate amounting to $11.9 million, compared to a loss of $13,000 in the previous year.

Total assets as of September 30, 2024, decreased to $2.1 billion from $2.1 billion at the end of 2023, while total deposits fell to $1.7 billion, down 3.6% from $1.8 billion. Core deposits also declined by 7.4%, reflecting a shift in customer preferences towards higher-yielding certificates of deposit, which increased by 5.7% to $562.2 million.

Strategically, the Bancorp completed a sale-leaseback transaction on February 22, 2024, selling five branch properties for $17.2 million, which is expected to enhance liquidity. The company’s liquidity position remains strong, with available liquidity reported at $686 million, including borrowing capacity from the Federal Home Loan Bank and Federal Reserve facilities.

The Bancorp's capital position exceeded all regulatory requirements, with total stockholders' equity increasing to $159.6 million as of September 30, 2024, up from $147.3 million at the end of 2023. The company continues to monitor its loan portfolio closely, with no loans classified as doubtful or loss as of the reporting date.