FNWD

MUNSTER, Ind., July 28, 2026--(BUSINESS WIRE)--Finward Bancorp (Nasdaq: FNWD) (the "Bancorp"), the holding company for Peoples Bank (the "Bank"), today announced that net income available to common stockholders was $2.1 million, or $0.48 per diluted share, for the quarter ended June 30, 2026, as compared to $2.2 million, or $0.52 per diluted share, for the quarter ended March 31, 2026. Selected performance metrics are as follows for the periods presented: "Despite overhead impacts from merger-related expenses and a previously disclosed branch closure, we showed continued progress in key areas this quarter. Results were supported by solid loan growth, stable deposit funding, and continued momentum across the organization. These results reflect the dedication of our team and the strength of the relationships we have built throughout Northwest Indiana and Chicagoland, and I am proud of what our team has accomplished together," said Benjamin Bochnowski, Chief Executive Officer. "The quarter was also highlighted by the announcement of our planned merger with First Financial. This transaction recognizes the value of our franchise and positions our customers, employees, communities, and shareholders to benefit from an even stronger banking organization in the years ahead. While we are excited about the opportunities this partnership creates, our near-term priorities are clear: serving customers, maintaining strong credit quality, and preparing for a successful combination with First Financial." Highlights of the current period include: Net Interest Margin - The net interest margin for the quarter ended June 30, 2026 was 3.25% compared to 3.23% for the quarter ended March 31, 2026. Net interest margin on a tax-equivalent basis (a non-GAAP measure) for the quarter ended June 30, 2026 was 3.37%, as compared to 3.35% for the quarter ended March 31, 2026. Net interest margin increased from the prior quarter primarily due to continued repricing and maturity of the existing loan portfolio, as well as strength in new loan originations. Funding - As of June 30, 2026, deposits totaled $1.73 billion, an increase of $13.5 million, or 0.8% compared with March 31, 2026 balances, which totaled $1.72 billion. As of June 30, 2026, non-interest-bearing deposits totaled $270.7 million, a decrease of $8.0 million. Core deposits totaled $1.2 billion at both June 30, 2026 and March 31, 2026. Core deposits include checking, savings, and money market accounts and represented 71.3% of the Bancorp’s total deposits at June 30, 2026. As of June 30, 2026, balances for certificates of deposit totaled $497.4 million, compared to $488.8 million on March 31, 2026, an increase of $8.6 million or 1.8%. The increase in total portfolio deposits is primarily related to cyclical flows and continued adjustments to deposit pricing. In addition, as of June 30, 2026, borrowings, federal funds purchased and repurchase agreements totaled $95.3 million, an increase of $4.5 million or 4.9%, compared to March 31, 2026. The increase in borrowings was primarily attributable to new FHLB advances in conjunction with increased loan origination during the quarter.As of June 30, 2026, 72.5% of our deposits are fully FDIC insured, and another 7.8% 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 June 30, 2026, the Bancorp had available liquidity of $604 million including borrowing capacity from the FHLB and Federal Reserve facilities. Securities Portfolio - Securities available for sale balances increased by $2.5 million to $310.2 million as of June 30, 2026, compared to $307.7 million as of March 31, 2026. The yield on the securities portfolio increased to 2.27% for the three months ended June 30, 2026 from 2.22% for the three months ended March 31, 2026. The increase in securities available for sale was primarily attributable to a decrease in the negative fair value adjustment to securities. The Bank did not sell or purchase any securities during the quarter. Lending - The Bank’s aggregate loan portfolio totaled $1.50 billion on June 30, 2026 and $1.46 billion on March 31, 2026. During the three months ended June 30, 2026, the Bank originated $81.3 million in new commercial loans, compared to $37.4 million during the three months ended March 31, 2026, based on strength experienced in the lending pipeline, specifically within commercial business and commercial real estate portfolios. At June 30, 2026, the Bancorp’s portfolio loan balances in commercial real estate owner occupied properties totaled $262.4 million or 17.4% of loans receivable and commercial real estate non-owner occupied properties totaled $334.9 million or 22.3% of loans receivable. Of the $334.9 million in commercial real estate non-owner occupied properties balances, loans collateralized by office buildings represented $41.2 million or 2.7% of total loan balances. Asset Quality - At June 30, 2026, non-performing loans totaled $16.5 million, compared to $12.4 million at March 31, 2026, an increase of $4.2 million or 33.8%. The Bank’s ratio of non-performing loans to total loans was 1.10% at June 30, 2026, compared to 0.85% at March 31, 2026. The Bank’s ratio of non-performing assets to total assets was 0.90% at June 30, 2026 and 0.71% at March 31, 2026. The non-performing balance increases are driven by a variety of credits and not due to concentrations or an indication of overall economic stress within our customer base or footprint. The increase in non-performers consisted of twelve loans from eleven different relationships, averaging $417 thousand per loan across commercial real estate, multifamily and residential real estate. 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 $17.7 million at June 30, 2026, or 1.18% of total loans receivable, compared to $17.3 million at March 31, 2026, or 1.19% of total loans receivable, an increase of $409 thousand or 2.37%. The Bank's unused commitment reserve, included in other liabilities, totaled $1.9 million at June 30, 2026, compared to $2.0 million at March 31, 2026, a decrease of $114 thousand or 5.6%.For the quarter ended June 30, 2026, the Bank recorded a net provision for credit loss totaling $264 thousand based on quarterly growth in certain loan segment balances and other factors within the Bank's ACL modeling. The second quarter's provision consisted of a $378 thousand provision for credit losses on loans, and a $114 thousand reversal of credit losses on unused commitments. For the quarter ended June 30, 2026, net loan recoveries totaled $31 thousand, compared to net loan recoveries of $3 thousand for the quarter ended March 31, 2026. The allowance for credit losses as a percentage of non-performing loans, or coverage ratio, was 106.9% at June 30, 2026, compared to 139.7% at March 31, 2026. Operating Income and Expenses - Non-interest income as a percentage of average assets was 0.48% for both the quarter ended June 30, 2026 and March 31, 2026. Total non-interest expense increased slightly from the prior quarter, while non-interest expense as a percentage of average assets was 2.95% for the quarter ended June 30, 2026, as compared to 2.93% for the quarter ended March 31, 2026. The aggregate reduction in non-interest income as compared to the prior quarter was due to a $180 thousand loss associated with the closure of one of the Bancorp's leased branch locations. The increase in non-interest expense quarter over quarter was primarily attributable to compensation and benefits and seasonality of certain professional and outside services expenses. Capital Adequacy - The Bank’s tier 1 leverage ratio was 9.31% as of June 30, 2026 and 9.24% as of March 31, 2026. The Bank’s capital continues to exceed all applicable regulatory capital requirements. The Bancorp’s tangible book value per share (non-GAAP) was $35.75 at June 30, 2026, up from $34.39 as of March 31, 2026. Tangible common equity to tangible assets (non-GAAP) was 7.68% at June 30, 2026, up from 7.48% as of March 31, 2026. 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 book value per share, tangible common equity/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 24 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); 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 Average Balances, Interest, Rates Consolidated Balance Sheets Consolidated Statements of Income Consolidated Statements of Income (cont'd) Loans Deposits Asset Quality Allowance for Credit Losses Bank-Level Regulatory Capital Requirements Reconciliation of Non-GAAP Performance Measures View source version on businesswire.com: https://www.businesswire.com/news/home/20260728367749/en/ Contacts FOR FURTHER INFORMATION CONTACT SHAREHOLDER SERVICES (219) 853-7575

This article first appeared on GuruFocus. Release Date: July 22, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. First Financial Bancorp (NASDAQ:FFBC) reported a record adjusted net income of $83.9 million, or $0.80 per share, marking an 8% increase over the second quarter of 2025. The company achieved a stable net interest margin of approximately 4%, with expectations to maintain this stability in the near term. Loan growth was strong at 7% on an annualized basis, driven by C&I, Agile, and Summit, with loan originations increasing by 23% over the first quarter. Asset quality remained stable, with net charge-offs declining by 15 basis points to 0.2% of total loans. The acquisition of Finward Bancorp is expected to be 5% accretive to earnings per share, with minimal impact on tangible book value per share. Second quarter adjusted fee income was below expectations due to lower foreign exchange, swap income, and investment banking fees. Non-interest income saw a decline compared to the linked-quarter, despite a strong first quarter. No shares were repurchased during the quarter as the company focused on integrating recent acquisitions. The company anticipates a slight uptick in deposit costs, which may impact the net interest margin. The integration of Finward Bancorp and realization of full cost savings are expected to take until the end of the third quarter of next year. Warning! GuruFocus has detected 7 Warning Sign with FFBC. Is FFBC fairly valued? Test your thesis with our free DCF calculator. Q: With the recent Finward acquisition, are you planning to pause on M&A activities, or is there still room for more transactions? A: Archie Brown, CEO: This is our third transaction, and while it's strategic and incremental, we don't see ourselves on the sidelines. However, our focus will be on integrating Finward over the next four quarters, and we'll reassess opportunities as they arise. Q: Can you provide more details on your capital return strategy, especially in light of the Finward deal? A: Jamie Anderson, CFO: We're targeting a 35% to 40% payout ratio with our common dividend. We plan to allocate a third of our earnings to dividends, a third to organic growth and small M&A, and a third to buybacks. We held off on buybacks in Q2 due to the deal but plan to resume them. Q: How do you see fee income evolving, particularly in foreign exchange and wealth management? A: Archie Brown, CEO: Foreign exchange income can be lumpy, but it's up 12% year-over-year for the first half. Wealth management, particularly M&A advisory, is small but has a strong pipeline, with some deals expected to close in Q3. Q: What are your plans for the Finward balance sheet, and how do you see the overall balance sheet trending? A: Archie Brown, CEO: We plan to retain Finward's loans and integrate their team to enhance growth. Jamie Anderson, CFO: On the securities side, we'll likely sell and reinvest to align with our investment philosophy, but no major changes are expected. Q: How do you view the trajectory of your core margin and new loan yields? A: Jamie Anderson, CFO: We expect our margin to remain relatively flat, with slight upticks in deposit costs. New loan yields are currently in line with payoff yields, and any rate hikes could positively impact our margin. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in First Financial Bancorp.? Here are five stocks we like better. First Financial Bancorp. posted record adjusted Q2 earnings of $83.9 million, or $0.80 per share, helped by 7% annualized loan growth and a strong net interest margin of 3.98%. Adjusted return on tangible common equity reached 19.7%. Credit quality and capital remained solid, with net charge-offs improving to 0.20% of total loans annualized and non-performing assets declining. Tangible book value rose to $16.64 and the board increased the quarterly dividend to $0.26 per share. The company announced a strategic acquisition of Finward Bancorp to expand in Chicago and Northwest Indiana, a deal valued at about $208 million and expected to be roughly 5% accretive to earnings. Management expects the transaction to close around year-end and help further build its regional deposit base. First Financial Bancorp. (NASDAQ:FFBC) reported record adjusted second-quarter earnings and outlined plans to expand further in the Chicago and Northwest Indiana markets through its planned acquisition of Finward Bancorp, executives said on the company’s earnings call. President and Chief Executive Officer Archie Brown said the quarter was “another active quarter” as the company continued post-integration work related to the Westfield acquisition and completed the systems conversion for BankFinancial. He said operating results were strong, with adjusted net income of $83.9 million, or $0.80 per share. → Buyback Boom: These 3 Companies Are Betting Billions on Their Own Stocks Brown said adjusted earnings per share increased 8% from the second quarter of 2025, driven by higher earning assets from organic loan growth and recent acquisitions. Adjusted return on assets was 1.5%, while adjusted return on tangible common equity was 19.7%. Chief Financial Officer Jamie Anderson said the quarter was highlighted by “strong earnings, 7% loan growth, a solid net interest margin, and positive credit trends.” Net interest margin was 3.98%, down one basis point from the linked quarter. Anderson said deposit costs declined six basis points, while asset yields fell seven basis points due to lower accretion income. → 3 Photonics Companies Making Quantum Tech Possible Loan balances rose $240 million, or 7% annualized, with growth across much of the portfolio. Management highlighted commercial and industrial lending, Summit and Agile as key contributors. Brown said loan originations increased 23% from the first quarter and that advanced-stage pipelines remained strong heading into the second half of the year. Average deposits increased $41 million, which Anderson attributed mainly to a seasonal influx in public funds and growth in interest-bearing demand accounts. He said 21% of total deposit balances remained in non-interest-bearing accounts and that the company remains focused on growing lower-cost deposits. → AI Data Centers Need Power, and These 2 Industrials Are Cashing In Brown said adjusted fee income was below management’s expectations after a strong first quarter, with lower foreign exchange swap income and investment banking fees weighing on non-interest income. However, he said the company expects a rebound in the third quarter. Anderson said adjusted fee income totaled $72 million, led by leasing and foreign exchange. Other non-interest income increased $3.6 million due to higher income from bank-owned life insurance and limited partnership investments. Adjusted non-interest expenses declined from the linked quarter, which management attributed to lower commission expense, payroll taxes and acquisition-related synergies. Anderson said core expenses decreased $5.7 million, driven by lower compensation costs tied to lower fee income. Brown said virtually all expected Westfield cost reductions had been realized by June 30, while BankFinancial-related savings are expected to phase in during the third quarter, with full savings anticipated by quarter-end. Asset quality trends were positive in the quarter. Net charge-offs declined 15 basis points to 0.20% of total loans on an annualized basis. Anderson said net charge-offs were down 42% from the first quarter, while non-performing assets and classified assets also declined. The allowance for credit losses increased two basis points to 1.38% of total loans. The company recorded $8.2 million of provision expense, driven primarily by loan growth and net charge-offs. Capital levels remained above internal and regulatory targets. Tangible book value increased to $16.64, and the tangible common equity ratio rose to 8.2%. Anderson said tangible book value now exceeds pre-Westfield and BankFinancial levels. The company did not repurchase shares during the quarter as it focused on acquisitions and integration work. Anderson said 34% of second-quarter earnings were returned to shareholders through the common dividend, and the board voted to raise the common dividend to $0.26 per share. For the third quarter, Brown said management expects mid-single-digit annualized loan growth and low single-digit core deposit growth. The company expects net interest margin to remain in a range of 3.96% to 4.01%, assuming no changes in interest rates and purchase accounting accretion in line with the second quarter. Management expects credit costs to approximate second-quarter levels and allowance coverage to remain relatively stable as a percentage of loans. Brown said net charge-offs are expected to approximate 25 to 30 basis points in the back half of the year. The company projected total fee income of $74 million to $77 million in the third quarter, including $15 million to $17 million from foreign exchange and $22 million to $24 million from leasing business revenue. Non-interest expenses are expected to range from $149 million to $152 million. First Financial also discussed its agreement to acquire Finward Bancorp, the holding company for Peoples Bank. Finward is headquartered in Munster, Indiana, and has 24 banking locations. Brown said the transaction is expected to expand First Financial’s ability to serve consumers and businesses in the Chicagoland and Northwest Indiana markets. Finward has approximately $2 billion in assets, $1.7 billion in deposits, $1.5 billion in loans and $412 million in wealth assets under management. Under the agreement, each outstanding Finward common share will be converted into the right to receive 1.35 shares of First Financial common stock. Brown said the transaction was valued at approximately $208 million based on First Financial’s July 20 closing price. Brown said the deal is expected to be approximately 5% accretive to First Financial’s earnings per share, with tangible book value per share at closing estimated to be only slightly diluted and an anticipated earn-back period of just over half a year. Including the BankFinancial acquisition, Brown said First Financial will have added $2.9 billion in lower-cost deposits to its Northwest Indiana operations and will have $4.1 billion in deposits in Chicago and Northwest Indiana. The combined branch network in the region is expected to exceed 40 offices. During the question-and-answer session, Brown said the company does not expect to be on the sidelines for M&A permanently, but said management does not see anything in the near to intermediate term beyond closing and integrating Finward. He said the acquisition is strategic and incremental relative to First Financial’s size. Anderson said First Financial expects to close the Finward transaction around year-end, with conversion anticipated sometime in the second quarter of next year. He said cost savings would likely phase in after conversion, with the first full quarter of all expected savings likely in the fourth quarter of next year. Brown said First Financial is also committing $500,000 to its foundation for the benefit of organizations in communities served by Finward, in addition to the $1 million donation made when the company entered the Chicago market through BankFinancial. First Financial Bancorp (NASDAQ: FFBC) is a bank holding company headquartered in Cincinnati, Ohio, and the parent of First Financial Bank. The company provides a comprehensive suite of commercial and consumer banking services through a network of more than 100 full-service banking centers and mortgage offices across Ohio, Indiana and Kentucky. Its core mission centers on delivering personalized relationship banking to businesses, individuals and public sector clients. First Financial Bank's product portfolio includes deposit solutions such as checking, savings and money market accounts, alongside a range of lending offerings that cover commercial and industrial loans, real estate and construction financing, home mortgages and home equity lines of credit. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "First Financial Bancorp. Q2 Earnings Call Highlights" was originally published by MarketBeat. 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Earnings per diluted share of $0.73; $0.80 on an adjusted(1) basis is highest in Company history Return on average assets of 1.37%; 1.50% on an adjusted(1) basis Net interest margin on FTE basis(1) of 3.98% Loan growth of $240 million, or 7.1% on an annualized basis Net charge-offs 0.20% of total loans ROTCE of 18.0%; 19.7% on adjusted(1) basis Board of Directors approved quarterly dividend increase to $0.26 to be paid in 3Q26 Agreement to acquire Finward Bancorp, the holding company for Peoples Bank, in all stock transaction CINCINNATI, July 21, 2026 /PRNewswire/ -- First Financial Bancorp. (Nasdaq: FFBC) ("First Financial" or the "Company") announced financial results for the three and six months ended June 30, 2026, as well as the pending acquisition of Finward Bancorp ("Finward"). Second Quarter Financial Results For the three months ended June 30, 2026, the Company reported net income of $76.5 million, or $0.73 per diluted common share. These results compare to net income of $74.4 million, or $0.71 per diluted common share, for the first quarter of 2026. For the six months ended June 30, 2026, First Financial had earnings per diluted share of $1.44 compared to $1.27 for the same period in 2025. Return on average assets for the second quarter of 2026 was 1.37% while return on average tangible common equity was 17.95%(1). These compare to return on average assets of 1.34% and return on average tangible common equity of 17.78%(1) in the first quarter of 2026. Second quarter 2026 highlights include: Robust net interest margin of 3.96%, or 3.98% on a fully tax-equivalent basis(1) Noninterest income of $73.8 million; $71.9 million on an adjusted(1) basis Noninterest expenses of $161.5 million, or $149.1 million as adjusted(1); 3.7% decrease from linked quarter Strong loan growth during the quarter Stable deposit balances during the quarter Total Allowance for Credit Losses of $208.2 million; Total quarterly provision expense of $8.2 million Capital ratios remain strong Additionally, the Board of Directors approved a quarterly dividend of $0.26 per common share for the next regularly scheduled dividend, payable on September 15, 2026 to shareholders of record as of September 1, 2026. Archie Brown, President and CEO commented on Second Quarter results, "The second quarter was another active quarter as we remained focused on post-integration efforts related to the Westfield acquisition and successfully converted BankFinancial systems. Our second quarter operating results were strong, and we are very pleased with our performance. Adjusted(1) net income for the period was a record $83.9 million or $0.80 per share, with an adjusted(1) return on assets of 1.50% and an adjusted(1) return on tangible common equity of 19.7%. These adjusted(1) earnings per share represented an 8% increase from the second quarter of 2025 and were driven by increases in earning assets from a combination of organic loan growth and our recent acquisitions. Our net interest margin was stable at approximately 4.00% as lower funding costs offset a decline in loan accretion income. Assuming no significant changes in interest rates, we expect our margin to remain stable over the near-term." Mr. Brown continued, "Loan growth for the quarter was 7% on an annualized basis, and reflected continued momentum across the portfolio with C&I, Agile and Summit being the primary drivers of our increase in balances. Loan originations increased 23% over the first quarter and advanced stage pipelines remain strong heading into the back half of the year. We expect loan production to remain healthy and contribute to solid growth in the third quarter." Mr. Brown commented on fee income and expenses, "Second quarter adjusted(1) fee income was below our expectations. After a very strong first quarter, lower foreign exchange, swap income and investment banking fees led to a decline in total noninterest income compared to the linked quarter. While results in these business lines can vary from quarter to quarter, we anticipate a rebound in the third quarter. Conversely, adjusted(1) noninterest expenses were materially lower than the linked quarter, driven by lower commission expense, payroll taxes and acquisition-related synergies. As of June 30th, virtually all of the expected Westfield cost reductions have been realized, while savings related to the BankFinancial acquisition will gradually phase in over the course of the third quarter with full synergies expected by quarter-end." Mr. Brown commented on asset quality and capital, "Asset quality was stable for the quarter with net charge-offs declining by 15 basis points to 0.20% of total loans. Capital levels remain strong with tangible common equity increasing to 8.2% and tangible book value increasing 3% from the linked quarter to $16.64. No shares were repurchased during the quarter as we focused on integrating recent acquisitions and preparing for the acquisition of Finward." Mr. Brown concluded, "The second quarter was another great quarter for our Company. We achieved record earnings while successfully integrating two bank acquisitions and positioning the Company for continued success in the second half of the year. Regarding the acquisitions, we are most pleased with how our newer associates have assimilated into the Company. They remain deeply committed to serving their clients and communities, and their efforts have been instrumental in strong client retention levels. We are thankful for their dedication, hard work and client-focused approach over the past year. I am very proud of the work our teams have done throughout the integration process, and their efforts position us for success in our newly expanded markets." Full detail of the Company's second quarter 2026 performance is provided in the accompanying financial statements and slide presentation. Finward Bancorp Acquisition First Financial Bancorp. has agreed to acquire Finward Bancorp, the holding company for Peoples Bank, headquartered in Munster, Indiana Strategically expands First Financial's presence in northwest Indiana and Chicago, with the addition of a low cost core deposit franchise and 24 locations Finward has approximately $2.0 billion in assets, $1.7 billion in deposits, $1.5 billion in loans and $412 million in assets under management Transaction is expected to be approximately 5% accretive to First Financial's earnings per share First Financial Bancorp. (Nasdaq: FFBC) and Finward Bancorp (Nasdaq: FNWD) jointly announced today that they have entered into an agreement by which First Financial will acquire Munster-based Finward in an all-stock transaction, further expanding First Financial's presence in the economically robust Chicagoland market with a strong core deposit franchise including 24 financial centers and a 116 year presence in the Northwest Indiana and Chicago markets. Combined with the 15 retail locations from First Financial's recent acquisition in the Chicagoland market, the Finward acquisition enhances First Financial's market presence and increases its pro forma deposits in the Chicago metropolitan statistical area by 75% to over $4 billion. "The addition of Finward Bancorp and Peoples Bank is expected to strategically expand First Financial's ability to serve the consumers and businesses of the Chicagoland and Northwest Indiana markets. We are excited to partner with a bank with a similar operating philosophy and strong credit culture," said Archie Brown, President and Chief Executive Officer of First Financial Bank. "We have built an impressive combination of retail and commercial banking services, wealth management services, and specialty banking solutions, complemented by our client-centered, community-focused business model, that offers an alternative to larger banks. To demonstrate our further commitment to Chicago and Northwest Indiana, First Financial has committed to donate $500,000 to its Foundation for the benefit of local organizations in the communities served by Finward, in addition to the $1 million we donated to the Foundation when we entered the Chicago market with the completed acquisition of BankFinancial Corporation in January 2026." Upon completion of the transaction, Finward's consumer, trust/wealth management and commercial credit lines of business will be incorporated into First Financial's respective business lines, and Peoples Bank employees will become First Financial associates. "This partnership represents an exciting next chapter for our organization and the communities we serve," said Benjamin Bochnowski, Chief Executive Officer of Peoples Bank. "First Financial shares our deep commitment to customers, employees, shareholders, and the communities that have placed their trust in us for more than 100 years. Together, we are accelerating our common strategy to better serve the Chicagoland and Northwest Indiana markets. We are creating a stronger regional banking franchise with expanded capabilities, greater resources, and a sharper focus on delivering exceptional service. We are confident this partnership will create meaningful opportunities for our customers and employees, while preserving the community-centered values that have defined our organization for generations." Through this addition, First Financial continues its recent period of growth, including the recent acquisitions of Westfield Bancorp in Northeast Ohio and BankFinancial Corporation in Chicago, and its commercial banking expansion into Chicago, Cleveland and Grand Rapids. First Financial's Midwestern base includes Chicago, IL; Cincinnati, Dayton, Cleveland and Columbus, OH; Indianapolis, IN; and Louisville, KY. The acquisition of Finward enhances First Financial's existing Chicagoland footprint that includes its commercial loan production office in Fulton Market; the Agile Premium Finance division in Lincolnshire, IL; and Bannockburn Capital Markets in downtown Chicago. Additionally in the area, First Financial offers retail and business banking solutions in Northwest Indiana and Northeast Illinois. Transaction Terms Under the terms of the agreement, each outstanding share of Finward common stock will be converted into the right to receive 1.35 shares of First Financial common stock, valuing the transaction at approximately $208 million, based on First Financial's closing stock price on July 20, 2026. The transaction is expected to be approximately 5% accretive to First Financial's earnings per share, and First Financial's tangible book value per share ("TBV") at closing is estimated to be only slightly diluted (0.4% dilution) with an anticipated TBV earnback of 0.6 years. The merger agreement has been unanimously approved by the Boards of Directors of First Financial and Finward. The transaction is expected to close in the fourth quarter of 2026, subject to satisfaction of customary closing conditions, regulatory approvals and approval of Finward's shareholders. Transaction Advisors Morgan Stanley & Co. LLC is serving as financial advisor to First Financial. Stephens Inc. is serving as financial advisor to Finward and rendered a fairness opinion to Finward's Board of Directors. Squire Patton Boggs, (US) LLP is serving as legal counsel to First Financial. Barack Ferrazzano Kirschbaum & Nagelberg LLP is serving as legal counsel to Finward. Teleconference / Webcast Information First Financial's executive management will host a conference call to discuss the Company's financial and operating results on Wednesday, July 22, 2026 at 8:30 a.m. Eastern Time. Members of the public who would like to listen to the conference call should dial (833) 461-5787 (U.S. toll free), meeting ID 657340574. The number should be dialed five to ten minutes prior to the start of the conference call. The conference call will also be accessible as an audio webcast via the Investor Relations section of the Company's website at www.bankatfirst.com. The webcast will be archived on the Investor Relations section of the Company's website for 12 months. Press Release and Additional Information on Website This press release as well as supplemental information are available to the public through the Investor Relations section of First Financial's website at www.bankatfirst.com. Use of Non-GAAP Financial Measures This earnings release contains GAAP financial measures and Non-GAAP financial measures where management believes it to be helpful in understanding the Company's results of operations or financial position. Where Non-GAAP financial measures are used, the comparable GAAP financial measures, as well as a reconciliation to the comparable GAAP financial measure, can be found in the section titled "Appendix: Non-GAAP to GAAP Reconciliation" in the accompanying slide presentation. Forward-Looking Statements Certain statements in this press release constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Rule 175 promulgated thereunder, and Section 21E of the Securities Exchange Act of 1934, as amended, and Rule 3b-6 promulgated thereunder, which statements involve inherent risks and uncertainties. Examples of forward-looking statements include, but are not limited to, (a) statements regarding First Financial Bancorp's (the "Company" or "First Financial") operations, such as (i) our future operating or financial performance, including revenues, income or loss and earnings per share, (ii) future common stock dividends, (iii) our capital structure, including future capital levels, (iv) our plans, objectives and strategies, and (v) the assumptions that underlie our forward-looking statements; and (b) statements regarding the proposed transaction, such as (i) statements regarding the outlook and expectations of First Financial and Finward Bancorp ("Finward"), respectively, with respect to the proposed transaction, (ii) the strategic benefits and financial benefits of the proposed transaction, including the expected impact of the proposed transactions on the combined First Financial's future financial performance (including anticipated accretion to earnings per share, the tangible book value earn-back period and other operating and return metrics), (iii) the timing of the closing of the proposed transaction, and (iv) the ability to successfully integrate the combined businesses. Such statements are often characterized by the use of qualified words (and their derivatives) such as "may," "will," "anticipate," "could," "should," "would," "believe," "contemplate," "expect," "estimate," "continue," "plan," "project" and "intend," as well as words of similar meaning or other statements concerning opinions or judgment of First Financial or Finward or their respective management about future events. Forward-looking statements are based on assumptions as of the time they are made and are subject to risks, uncertainties and other factors that are difficult to predict with regard to timing, extent, likelihood and degree of occurrence, which could cause actual results to differ materially from anticipated results expressed or implied by such forward-looking statements. Any reference to forward-looking statements by Finward herein is solely related to the proposed transaction. Such risks, uncertainties and assumptions include, among others, the following: Risks, uncertainties and assumptions regarding First Financial's operations economic, market, liquidity, credit, interest rate, operational and technological risks associated with First Financial's business; future credit quality and performance, including our expectations regarding future loan losses and our allowance for credit losses; the effect of and changes in policies and laws or regulatory agencies, including the Dodd-Frank Wall Street Reform and Consumer Protection Act and other legislation and regulation relating to the banking industry; management's ability to effectively execute its business plans; pursuit of mergers and acquisitions, including costs or difficulties related to the acquisition and/or integration of any acquired companies; the possibility that any of the anticipated benefits of First Financial's prior or contemplated acquisitions will not be realized or will not be realized within the expected time period; the effect of changes in accounting policies and practices; changes in consumer spending, borrowing and saving and changes in unemployment; changes in customers' performance and creditworthiness; the costs and effects of litigation and of unexpected or adverse outcomes in such litigation; current and future economic and market conditions, including the effects of changes in housing prices, fluctuations in unemployment rates, U.S. fiscal debt, budget and tax matters, geopolitical matters, trade and tariff policies, and any slowdown in global economic growth; our capital and liquidity requirements (including under regulatory capital standards, such as the Basel III capital standards) and our ability to generate capital internally or raise capital on favorable terms; financial services reform and other current, pending or future legislation or regulation that could have a negative effect on our revenue and businesses, including the Dodd-Frank Act and other legislation and regulation relating to bank products and services; the effect of the current interest rate environment or changes in interest rates or in the level or composition of our assets or liabilities on our net interest income, net interest margin and our mortgage originations, mortgage servicing rights and mortgage loans held for sale; the effect of a fall in stock market prices on our brokerage, asset and wealth management businesses; a failure in or breach of our operational or security systems or infrastructure, or those of our third-party vendors or other service providers, including as a result of cyber attacks; the effect of changes in the level of checking or savings account deposits on our funding costs and net interest margin; and our ability to develop and execute effective business plans and strategies. Risks, uncertainties and assumptions regarding the proposed transaction the occurrence of any event, change or other circumstances that could give rise to the right of one or both of the parties to terminate the merger agreement; the failure to obtain necessary regulatory approvals (and the risk that such approvals may result in the imposition of conditions that could adversely affect the combined First Financial or the expected benefits of the proposed transaction) and the possibility that the proposed transaction does not close when expected or at all because required regulatory approvals, the approval by Finward's shareholders, or other approvals and the other conditions to closing are not received or satisfied on a timely basis or at all; the outcome of any legal proceedings that may be instituted against First Financial or Finward; the possibility that the anticipated benefits of the proposed transaction, including anticipated synergies and strategic gains, are not realized when expected or at all, including as a result of changes in, or problems arising from, general economic and market conditions, interest and exchange rates, monetary policy, laws and regulations and their enforcement, and the degree of competition in the geographic and business areas in which First Financial and Finward operate; the possibility that the integration of the two companies may be more difficult, time-consuming or costly than expected; the impact of purchase accounting with respect to the proposed transaction, or any change in the assumptions used regarding the assets acquired and liabilities assumed to determine their fair value and credit marks; the possibility that the proposed transaction may be more expensive or take longer to complete than anticipated, including as a result of unexpected factors or events; the diversion of management's attention from ongoing business operations and opportunities; potential adverse reactions of First Financial's or Finward's customers or changes to business or employee relationships, including those resulting from the announcement or completion of the proposed transaction; a material adverse change in the financial condition of First Financial or Finward; changes in First Financial's share price before closing; risks relating to the potential dilutive effect of shares of First Financial's common stock to be issued in the proposed transaction; general competitive, economic, political and market conditions; the ability to retain key employees, management personnel and other associates of First Financial and Finward following announcement or consummation of the proposed transaction; major catastrophes such as earthquakes, floods or other natural or human disasters, including infectious disease outbreaks; and other factors that may affect future results of First Financial or Finward, including, among others, changes in asset quality and credit risk; the inability to sustain revenue and earnings growth; changes in interest rates; deposit flows; inflation; customer borrowing, repayment, investment and deposit practices; the impact, extent and timing of technological changes; capital management activities; and other actions of the Federal Reserve Board, the Ohio Division of Financial Institutions, the Indiana Department of Financial Institutions, and any other state or federal legislative and regulatory actions and reforms. These factors are not necessarily all of the factors that could cause First Financial, Finward, or the combined company's actual results, performance or achievements to differ materially from those expressed in or implied by any of the forward-looking statements. Other factors, including unknown or unpredictable factors, also could harm the results of First Financial, Finward, or the combined company. Although each of First Financial and Finward believes that its expectations with respect to forward-looking statements are based upon reasonable assumptions within the bounds of its existing knowledge of its business and operations, there can be no assurance that actual results of First Financial or Finward (as related to the proposed transaction) will not differ materially from any projected future results expressed or implied by such forward-looking statements. Additional factors that could cause results to differ materially from those described above can be found in each of First Financial's and Finward's most recent annual report on Form 10-K for the fiscal year ended December 31, 2025, quarterly reports on Form 10-Q, and other documents subsequently filed by First Financial and Finward with the Securities Exchange Commission ("SEC"). The actual results anticipated for the proposed transaction or First Financial's operations may not be realized or, even if substantially realized, they may not have the expected consequences to or effects on First Financial, Finward or each of their respective businesses or operations. Investors are cautioned not to rely too heavily on any such forward-looking statements. First Financial and Finward urge you to consider all of these risks, uncertainties and other factors carefully in evaluating all such forward-looking statements made by First Financial and Finward. Forward-looking statements speak only as of the date they are made, and First Financial and Finward undertake no obligation to update or clarify these forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent required by applicable law. No Offer or Solicitation This presentation does not constitute an offer to sell or the solicitation of an offer to buy any securities or the solicitation of any vote or approval with respect to the proposed transaction between First Financial and Finward. No offer of securities shall be made except by means of a prospectus meeting the requirements of the Securities Act of 1933, as amended, and no offer to sell or solicitation of an offer to buy shall be made in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction. Important Additional Information about the Transaction and Where to Find It In connection with the proposed transaction, First Financial intends to file with the SEC a Registration Statement on Form S-4 (the "Registration Statement") to register the shares of First Financial capital stock to be issued in connection with the proposed transaction. The Registration Statement will include a proxy statement of Finward and a prospectus of First Financial (the "Proxy Statement/Prospectus"), and First Financial and Finward may file with the SEC other relevant documents concerning the proposed transaction. BEFORE MAKING ANY VOTING OR INVESTMENT DECISION, INVESTORS AND SHAREHOLDERS ARE URGED TO READ THE REGISTRATION STATEMENT AND PROXY STATEMENT/PROSPECTUS REGARDING THE PROPOSED TRANSACTION WHEN THEY BECOME AVAILABLE AND ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THOSE DOCUMENTS, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT FIRST FINANCIAL, FINWARD AND THE PROPOSED TRANSACTION AND RELATED MATTERS. A copy of the Registration Statement, Proxy Statement/Prospectus, as well as other filings containing information about First Financial and Finward, may be obtained, free of charge, at the SEC's website (www.sec.gov) when they are filed. Copies of documents filed with the SEC by First Financial will be made available free of charge in the "Investor Relations" section of First Financial's website, https://www.bankatfirst.com/about/investor-relations.html. Copies of documents filed with the SEC by Finward will be made available free of charge in the "Investor Relations" section of Finward's website, https://www.investorrelations.ibankpeoples.com. The information on First Financial's and Finward's websites is not, and shall not be deemed to be, a part of this communication or incorporated into other filings either First Financial makes with the SEC. Participants in Solicitation Finward and its directors, executive officers, management and employees may be deemed to be participants in the solicitation of proxies in respect of the Merger. Information concerning Finward's participants is set forth in the Proxy Statement, dated April 3, 2026, for Finward's 2026 annual meeting of stockholders as filed with the SEC on Schedule 14A. Additional information regarding the participants in the solicitation of proxies in respect of the proposed transaction and interests of participants of Finward in the solicitation of proxies in respect of the Merger will be included in the Registration Statement and Proxy Statement/Prospectus to be filed with the SEC. Free copies of these documents, when available, may be obtained as described in the preceding paragraph. About First Financial Bancorp. First Financial Bancorp. is a Cincinnati, Ohio based bank holding company. As of June 30, 2026, the Company had $22.4 billion in assets, $13.7 billion in loans, $17.6 billion in deposits and $3.0 billion in shareholders' equity. The Company's subsidiary, First Financial Bank, founded in 1863, provides banking and financial services products through its six lines of business: Commercial, Retail Banking, Investment Commercial Real Estate, Mortgage Banking, Commercial Finance and Wealth Management. These business units provide traditional banking services to business and retail clients. Wealth Management provides wealth planning, portfolio management, trust and estate, brokerage and retirement plan services and had approximately $4.6 billion in assets under management as of June 30, 2026. The Company operated 151 full service banking centers as of June 30, 2026, located in Ohio, Indiana, Kentucky and Illinois, while the Commercial Finance business lends into targeted industry verticals on a nationwide basis. In 2025, First Financial Bank received its second consecutive Outstanding rating from the Federal Reserve for its performance under the Community Reinvestment Act and was recognized as a Gallup Exceptional Workplace Award winner, one of only 70 Gallup clients worldwide to receive this designation. Additional information about the Company, including its products, services and banking locations, is available at www.bankatfirst.com. 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 24 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. View original content:https://www.prnewswire.com/news-releases/first-financial-bancorp-announces-second-quarter-2026-financial-results-quarterly-dividend-increase--acquisition-of-finward-bancorp-302831305.html

MUNSTER, Ind., April 28, 2026--(BUSINESS WIRE)--Finward Bancorp (Nasdaq: FNWD) (the "Bancorp"), the holding company for Peoples Bank (the "Bank"), today announced that net income available to common stockholders was $2.2 million, or $0.52 per diluted share, for the quarter ended March 31, 2026, as compared to $2.0 million, or $0.46 per diluted share, for the quarter ended December 31, 2025. Selected performance metrics are as follows for the periods presented: "Results for the quarter reflect continued progress in our efforts to improve profitability, and confirm expected improvement to our core earnings trajectory. Our focus on loan originations has built a solid loan pipeline, and along with the repricing of existing loans, is expected to drive net interest margin expansion and further earnings improvement in the coming quarters," said Benjamin Bochnowski, Chief Executive Officer. "Actions taken over recent quarters are starting to translate into stronger operating performance, and this has allowed for a renewed focus on customer growth and service as the year progresses." "As part of our efficiency efforts, we announced the planned closure of two branch locations expected to occur early in the second quarter. Credit quality remains healthy, reserves are appropriate, and the organization remains well positioned to continue on our path in the current operating environment." Highlights of the current period include: Net Interest Margin - The net interest margin for the quarter ended March 31, 2026 was 3.23% compared to 3.18% for the quarter ended December 31, 2025. Net interest margin on a tax-equivalent basis (a non-GAAP measure) for the quarter ended March 31, 2026 was 3.35%, as compared to 3.32% for the quarter ended December 31, 2025. Net interest margin increased from the prior quarter primarily due to a favorable reduction in funding costs. Funding - As of March 31, 2026, deposits totaled $1.72 billion, a decrease of $7.9 million, or 0.5% compared with December 31, 2025 balances, which totaled $1.73 billion. As of March 31, 2026, non-interest-bearing deposits totaled $278.7 million, an increase of $11.3 million. Core deposits totaled $1.2 billion at both March 31, 2026 and December 31, 2025. Core deposits include checking, savings, and money market accounts and represented 71.6% of the Bancorp’s total deposits at March 31, 2026. As of March 31, 2026, balances for certificates of deposit totaled $488.8 million, compared to $499.6 million on December 31, 2025, a decrease of $10.8 million or 2.2%. The decrease in total portfolio deposits is primarily related to cyclical flows and continued adjustments to deposit pricing. In addition, as of March 31, 2026, borrowings, federal funds purchased and repurchase agreements totaled $90.8 million, an increase of $6.1 million or 7.2%, compared to December 31, 2025. The increase in borrowings was primarily attributable to new FHLB advances during the quarter. As of March 31, 2026, 72.0% of our deposits are fully FDIC insured, and another 7.5% 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 March 31, 2026, the Bancorp had available liquidity of $555 million including borrowing capacity from the FHLB and Federal Reserve facilities. Securities Portfolio - Securities available for sale balances decreased by $8.5 million to $307.7 million as of March 31, 2026, compared to $316.2 million as of December 31, 2025. The yield on the securities portfolio decreased to 2.22% for the three months ended March 31, 2026 from 2.29% for the three months ended December 31, 2025. The decrease in securities available for sale was primarily attributable to an increase in the negative fair value adjustment to securities, as well as maturity of certain securities. The Bank did not sell any securities during the quarter. Lending - The Bank’s aggregate loan portfolio totaled $1.45 billion on both March 31, 2026 and December 31, 2025. During the three months ended March 31, 2026, the Bank originated $37.4 million in new commercial loans, compared to $45.8 million during the three months ended December 31, 2025, largely as expected given lending seasonality. At March 31, 2026, the Bancorp’s portfolio loan balances in commercial real estate owner occupied properties totaled $261.7 million or 18.0% of total loan balances and commercial real estate non-owner occupied properties totaled $302.9 million or 20.8% of total loan balances. Of the $302.9 million in commercial real estate non-owner occupied properties balances, loans collateralized by office buildings represented $41.6 million or 2.9% of total loan balances. Asset Quality - At March 31, 2026, non-performing loans totaled $12.4 million, compared to $11.2 million at December 31, 2025, an increase of $1.2 million or 10.7%. The Bank’s ratio of non-performing loans to total loans was 0.85% at March 31, 2026, compared to 0.77% at December 31, 2025. The Bank’s ratio of non-performing assets to total assets was 0.71% at March 31, 2026 and 0.65% at December 31, 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 $17.3 million at March 31, 2026, or 1.19% of total loans receivable, compared to $17.5 million at December 31, 2025, or 1.21% of total loans receivable, a decrease of $221 thousand or 1.26%. The Bank's unused commitment reserve, included in other liabilities, totaled $2.0 million at March 31, 2026, compared to $1.8 million at December 31, 2025, an increase of $279 thousand or 16.0%. For the quarter ended March 31, 2026, the Bank recorded a net provision for credit loss totaling $55 thousand based on the reduction of certain loan segment balances and other factors within the Bank's ACL modeling. The first quarter's provision consisted of a $224 thousand reversal for credit losses on loans, and a $279 thousand provision of credit losses on unused commitments. For the quarter ended March 31, 2026, net loan recoveries totaled $3 thousand, compared to net loan charge-offs of $301 thousand for the quarter ended December 31, 2025. The allowance for credit losses as a percentage of non-performing loans, or coverage ratio, was 139.7% at March 31, 2026, compared to 156.8% at December 31, 2025. Operating Income and Expenses - Non-interest income as a percentage of average assets was 0.48% for the quarter ended March 31, 2026, as compared to 0.29% for the quarter ended December 31, 2025. The increase in non-interest income quarter over quarter was primarily attributable to the $1.6 million in realized losses on the sale of investment securities during December 2025. Total non-interest expense decreased slightly from the prior quarter, while non-interest expense as a percentage of average assets was 2.93% for the quarter ended March 31, 2026, as compared to 2.90% for the quarter ended December 31, 2025. The decrease in non-interest expense quarter over quarter was primarily attributable to lower data processing and technology expenses as well as lower occupancy and equipment costs. The Bank remains focused on identifying additional operating efficiencies and third-party expense reductions. Capital Adequacy - The Bank’s tier 1 leverage ratio was 9.24% as of March 31, 2026 and 8.93% as of December 31, 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 $34.39 at March 31, 2026, down from $34.92 as of December 31, 2025. Tangible common equity to tangible assets (non-GAAP) was 7.48% at March 31, 2026, down from 7.56% as of December 31, 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 book value per share, tangible common equity/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 25 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. View source version on businesswire.com: https://www.businesswire.com/news/home/20260428163087/en/ Contacts FOR FURTHER INFORMATION CONTACT SHAREHOLDER SERVICES (219) 853-7575

MUNSTER, Ind., January 27, 2026--(BUSINESS WIRE)--Finward Bancorp (Nasdaq: FNWD) (the "Bancorp"), the holding company for Peoples Bank (the "Bank"), today announced that net income available to common stockholders was $2.0 million, or $0.46 per diluted share, for the quarter ended December 31, 2025, as compared to $3.5 million, or $0.81 per diluted share, for the quarter ended September 30, 2025. Selected performance metrics are as follows for the periods presented: "Operational results were significantly stronger in 2025 than 2024, reflecting the execution of successful strategic initiatives that have strengthened our organization over that time. While we continue to aim higher, these results reflect the hard work our team has put in throughout the year, " said Benjamin Bochnowski, CEO. "Actions taken in the fourth quarter are expected to further enhance our financial position, including steps to optimize our balance sheet, reduce risk, increase net interest margin, and improve efficiency. This included a small securities repositioning, where the Bank sold $26.6 million in primarily municipal securities, generating a $1.6 million pre-tax reduction to our posted fourth quarter results. Credit quality also remains stable, and the current rate environment remains supportive of continued progress in operational results in 2026." Highlights of the current period include: Net Interest Margin - The net interest margin for the quarter ended December 31, 2025 was 3.18% compared to 3.04% for the quarter ended September 30, 2025. Net interest margin on a tax-equivalent basis (a non-GAAP measure) for the quarter ended December 31, 2025 was 3.32%, as compared to 3.18% for the quarter ended September 30, 2025. The increased net interest margin from the prior quarter is primarily the result of increased loan yields from loan repricing, as well as reduced deposit costs as a result of the Federal Reserve's continued reduction of federal funds rates during the quarter. Funding - As of December 31, 2025, deposits totaled $1.7 billion, a decrease of $23.7 million, or 1.4% compared with September 30, 2025 balances, which totaled $1.8 billion. As of December 31, 2025, non-interest-bearing deposits totaled $267.4 million, a decrease of $12.9 million. Core deposits totaled $1.2 billion at both December 31, 2025 and September 30, 2025. Core deposits include checking, savings, and money market accounts and represented 71.1% of the Bancorp’s total deposits at December 31, 2025. As of December 31, 2025, balances for certificates of deposit totaled $499.6 million, compared to $536.7 million on September 30, 2025, a decrease of $37.1 million or 6.9%. As of December 31, 2025, the Bank has no remaining brokered deposits. The decrease in total portfolio deposits is primarily related to cyclical flows, maturity of $20 million in brokered deposits, and continued adjustments to deposit pricing. In addition, as of December 31, 2025, borrowings and repurchase agreements totaled $84.7 million, a decrease of $18.7 million or 18.1%, compared to September 30, 2025. The decrease in borrowings was the result of certain called putable FHLB advances occurring during the quarter. As of December 31, 2025, 71.8% of our deposits are fully FDIC insured, and another 7.3% 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 December 31, 2025, the Bancorp had available liquidity of $674 million including borrowing capacity from the FHLB and Federal Reserve facilities. Securities Portfolio - Securities available for sale balances decreased by $18.9 million to $316.2 million as of December 31, 2025, compared to $335.2 million as of September 30, 2025. The yield on the securities portfolio decreased to 2.29% for the three months ended December 31, 2025 from 2.40% for the three months ended September 30, 2025. During the fourth quarter, the Bank incurred $1.6 million in securities losses, attributable to the execution of securities repositioning transactions where the Bank sold securities with a market value of $26.6 million and an unadjusted book yield of 2.59%. Lending - The Bank’s aggregate loan portfolio totaled $1.45 billion on December 31, 2025 and $1.47 billion on September 30, 2025. During the three months ended December 31, 2025, the Bank originated $68.9 million in new commercial loans, compared to $62.6 million during the three months ended September 30, 2025. At December 31, 2025, the Bancorp’s portfolio loan balances in commercial real estate owner occupied properties totaled $253.5 million or 17.4% of total loan balances and commercial real estate non-owner occupied properties totaled $302.1 million or 20.9% of total loan balances. Of the $302.1 million in commercial real estate non-owner occupied properties balances, loans collateralized by office buildings represented $42.1 million or 2.9% of total loan balances. The decrease in total portfolio loans is primarily due to customer loan payoffs experienced during the quarter. Asset Quality - At December 31, 2025, non-performing loans totaled $11.9 million, compared to $13.9 million at September 30, 2025, a decrease of $2.0 million or 14.3%. The Bank’s ratio of non-performing loans to total loans was 0.82% at December 31, 2025, compared to 0.94% at September 30, 2025. The Bank’s ratio of non-performing assets to total assets was 0.68% at December 31, 2025 and 0.76% at September 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 $17.5 million at December 31, 2025, or 1.21% of total loans receivable, compared to $18.0 million at September 30, 2025, or 1.22% of total loans receivable, a decrease of $471 thousand or 2.62%. The Bank's unused commitment reserve, included in other liabilities, totaled $1.8 million at December 31, 2025, compared to $1.7 million at September 30, 2025, an increase of $86 thousand or 5.2%. For the quarter ended December 31, 2025, the Bank recorded a net benefit from credit loss totaling $84 thousand based on lower loan impairments, reduction of certain loan segment balances, and other factors within the Bank's ACL modeling. The fourth quarter's benefit consisted of a $170 thousand reversal for credit losses on loans, and a $86 thousand provision of credit losses on unused commitments. For the quarter ended December 31, 2025, net loan charge-offs totaled $301 thousand, compared to net loan charge-offs of $268 thousand for the quarter ended September 30, 2025. The allowance for credit losses as a percentage of non-performing loans, or coverage ratio, was 147.1% at December 31, 2025, compared to 129.4% at September 30, 2025. Operating Income and Expenses - Non-interest income as percentage of average assets was 0.29% for the quarter ended December 31, 2025, as compared to 0.57% for the quarter ended September 30, 2025. The decrease in non-interest income quarter over quarter was primarily attributable to the realized losses on the sale of investment securities partially offset by bank owned life insurance death claim benefits. Non-interest expense as a percentage of average assets was 2.90% for the quarter ended December 31, 2025, as compared to 2.74% for the quarter ended September 30, 2025. The increase in non-interest expenses quarter over quarter was primarily attributable to higher compensation and benefits and data processing expense as well as higher occupancy and equipment 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 8.93% as of December 31, 2025 and 8.77% as of September 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 $34.92 at December 31, 2025, up from $32.77 as of September 30, 2025. Tangible common equity to tangible assets (non-GAAP) was 7.56% at December 31, 2025, up from 6.99% as of September 30, 2025. Excluding accumulated other comprehensive losses, tangible book value per share (non-GAAP) increased to $44.55 as of December 31, 2025, from $44.16 as of September 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. View source version on businesswire.com: https://www.businesswire.com/news/home/20260127845840/en/ Contacts FOR FURTHER INFORMATION CONTACT SHAREHOLDER SERVICES (219) 853-7575

MUNSTER, Ind., October 28, 2025--(BUSINESS WIRE)--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: "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. View source version on businesswire.com: https://www.businesswire.com/news/home/20251028436017/en/ Contacts FOR FURTHER INFORMATION CONTACT SHAREHOLDER SERVICES (219) 853-7575

MUNSTER, Ind., July 29, 2025--(BUSINESS WIRE)--Finward Bancorp (Nasdaq: FNWD) (the "Bancorp"), the holding company for Peoples Bank (the "Bank"), today announced that net income available to common stockholders was $2.2 million, or $0.50 per diluted share, for the quarter ended June 30, 2025, as compared to $455 thousand, or $0.11 per diluted share, for the quarter ended March 31, 2025. Selected performance metrics are as follows for the periods presented: "Our team has been focused on improving core operating results over the past several quarters, and this quarter has begun to show the results of those efforts. Net interest margin expanded for another consecutive quarter and is above 3% on a tax-equivalent basis. Importantly, we have moved Tier 1 capital up above key internal targets, and asset quality has remained relatively stable. Net recoveries were a strong point, and supported overall profitability and credit quality. Seasonal and timing factors impacted operating expense and non-interest income, and we see continued opportunity in both areas as the year moves forward," said Benjamin Bochnowski, CEO. Highlights of the current period include: Net Interest Margin - The net interest margin for the quarter ended June 30, 2025 was 2.97% compared to 2.81% for the quarter ended March 31, 2025. Net interest margin on a tax-equivalent basis (a non-GAAP measure) for the quarter ended June 30, 2025 was 3.11%, as compared to 2.95% for the quarter ended March 31, 2025. The increased net interest margin from the prior quarter is primarily the result of increased loan yields from repricing, as well as improved funding costs and mix. Funding - As of June 30, 2025, deposits totaled $1.8 billion, an increase of $4.5 million, or 0.3% compared with March 31, 2025 balances, which also totaled $1.8 billion. As of June 30, 2025, non-interest-bearing deposits totaled $271.2 million, a decrease of $10.3 million. Core deposits totaled $1.2 billion at June 30, 2025 and March 31, 2025. Core deposits include checking, savings, and money market accounts and represented 69.1% of the Bancorp’s total deposits at June 30, 2025. As of June 30, 2025, balances for certificates of deposit totaled $542.7 million, compared to $544.8 million on March 31, 2025, a decrease of $2.1 million or 0.4%. The increase in total portfolio deposits is primarily related to cyclical flows and continued adjustments to deposit pricing. In addition, as of June 30, 2025, borrowings and repurchase agreements totaled $113.3 million, an increase of $11.6 million or 11.4%, compared to March 31, 2025. The increase in short-term borrowings was the result of cyclical inflows and outflows of interest-earning assets and interest-bearing liabilities. As of June 30, 2025, 71.7% of our deposits are fully FDIC insured, and another 8.0% 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 June 30, 2025, the Bancorp had available liquidity of $728 million including borrowing capacity from the FHLB and Federal Reserve facilities. Securities Portfolio - Securities available for sale balances decreased by $2.3 million to $327.8 million as of June 30, 2025, compared to $330.1 million as of March 31, 2025. The decrease in securities available for sale was primarily due to payoffs of collateralized mortgage obligations and residential mortgage-backed securities within the portfolio. The yield on the securities portfolio increased to 2.42% for the three months ended June 30, 2025 from 2.38% for the three months ended March 31, 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 June 30, 2025 and March 31, 2025. During the three months ended June 30, 2025, the Bank originated $46.1 million in new commercial loans, compared to $36.7 million during the three months ended March 31, 2025. At June 30, 2025, the Bancorp’s portfolio loan balances in commercial real estate owner occupied properties totaled $251.0 million or 16.9% of total loan balances and commercial real estate non-owner occupied properties totaled $299.9 million or 20.1% of total loan balances. Of the $299.9 million in commercial real estate non-owner occupied properties balances, loans collateralized by office buildings represented $42.1 million or 2.8% of total loan balances. Asset Quality - At June 30, 2025, non-performing loans totaled $13.5 million, compared to $12.5 million at March 31, 2025, an increase of $1.0 million or 8.4%. The Bank’s ratio of non-performing loans to total loans was 0.91% at June 30, 2025, compared to 0.84% at March 31, 2025. The Bank’s ratio of non-performing assets to total assets increased to 0.74% at June 30, 2025 from 0.69% at March 31, 2025. Management maintains a vigilant oversight of nonperforming loans through proactive relationship management. The allowance for credit losses (ACL) on loans totaled $18.2 million at June 30, 2025, or 1.22% of total loans receivable, compared to $17.9 million at March 31, 2025, or 1.20% of total loans receivable, an increase of $229 thousand or 1.3%. The Bank's unused commitment reserve, included in other liabilities, totaled $2.0 million at June 30, 2025, compared to $2.1 million at March 31, 2025, a decrease of $89 thousand or 4.2%. For the quarter ended June 30, 2025, the Bank recorded a net benefit from credit loss totaling $274 thousand based on net loan recoveries, reduction of certain loan and unfunded commitment segment balances, and other factors within the Bank's ACL modeling. The second quarter's benefit consisted of a $185 thousand reversal for credit losses on loans, and a $89 thousand reversal of credit losses on unused commitments. For the quarter ended June 30, 2025, net loan recoveries totaled $414 thousand, compared to net charge-offs of $33 thousand for the quarter ended March 31, 2025. The allowance for credit losses as a percentage of non-performing loans, or coverage ratio, was 133.0% at June 30, 2025, compared to 143.8% at March 31, 2025. Operating Expenses - Non-interest expense as a percentage of average assets was 2.90% for the quarter ended June 30, 2025, as compared to 2.81% for the quarter ended March 31, 2025. The increase in non-interest expenses quarter over quarter was primarily attributable to higher data processing expenses and higher marketing expenses. The Bank remains focused on identifying additional operating efficiencies and third-party expense reductions. Capital Adequacy - As of June 30, 2025, the Bank’s tier 1 leverage ratio was 8.69%, an improvement of 0.21% compared to 8.48% at March 31, 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 $30.16 at June 30, 2025, up from $29.55 as of March 31, 2025. Tangible common equity to total assets (non-GAAP) was 6.32% at June 30, 2025, up from 6.26% as of March 31, 2025. Excluding accumulated other comprehensive losses, tangible book value per share (non-GAAP) increased to $43.47 as of June 30, 2025, from $43.02 as of March 31, 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/total assets, tangible common equity adjusted for other comprehensive loss/total 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 consent order and 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. View source version on businesswire.com: https://www.businesswire.com/news/home/20250729160833/en/ Contacts FOR FURTHER INFORMATION CONTACT SHAREHOLDER SERVICES (219) 853-7575

The quarterly results for Finward Bancorp (NASDAQ:FNWD) were released last week, making it a good time to revisit its performance. Revenues US$16m disappointed slightly, at4.4% below what the analysts had predicted. Profits were a relative bright spot, with statutory per-share earnings of US$0.11 coming in 16% above what was anticipated. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year. We've discovered 1 warning sign about Finward Bancorp. View them for free. Taking into account the latest results, the current consensus from Finward Bancorp's twin analysts is for revenues of US$68.2m in 2025. This would reflect a decent 11% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to surge 39% to US$1.06. Before this earnings report, the analysts had been forecasting revenues of US$68.4m and earnings per share (EPS) of US$1.07 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results. See our latest analysis for Finward Bancorp The consensus price target rose 6.5% to US$33.00despite there being no meaningful change to earnings estimates. It could be that the analystsare reflecting the predictability of Finward Bancorp's earnings by assigning a price premium. Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Finward Bancorp's rate of growth is expected to accelerate meaningfully, with the forecast 15% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 4.4% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 7.1% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Finward Bancorp is expected to grow much faster than its industry. The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving. With that in mind, we wouldn't be too quick to come to a conclusion on Finward Bancorp. Long-term earnings power is much more important than next year's profits. We have analyst estimates for Finward Bancorp going out as far as 2026, and you can see them free on our platform here. We don't want to rain on the parade too much, but we did also find 1 warning sign for Finward Bancorp that you need to be mindful of. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

MUNSTER, Ind., April 30, 2025 (GLOBE NEWSWIRE) -- Finward Bancorp (Nasdaq: FNWD) (the “Bancorp”), the holding company for Peoples Bank (the “Bank”), today announced that net income available to common stockholders was $456 thousand, or $0.11 per diluted share, for the quarter ended March 31, 2025, as compared to $2.1 million, or $0.49 per diluted share for the quarter ended December 31, 2024, and as compared to $9.3 million or $2.17 per diluted share for the quarter ended March 31, 2024. Selected performance metrics are as follows for the periods presented: “Margin continued to expand in the first quarter as deposits repriced lower, continuing the trend we have seen over the past year. With economic uncertainty potentially increasing, we are maintaining our focus on capital and credit quality. Non-performing loans improved in the first quarter, and our Provision for Credit Loss was driven by model-related factors that reflect the broader trends we see in the economy. Seasonal and timing factors impacted operating expense and non-interest income, and we see opportunity in both areas as the year moves forward,” said Benjamin Bochnowski, CEO. “Our team remains focused on continued improvement in operating results, and on serving our customers and communities.” Highlights of the current period include: Net Interest Margin - The net interest margin for the quarter ended March 31, 2025, was 2.81%, compared to 2.65% for the quarter ended December 31, 2024. The tax-adjusted net interest margin (a non-GAAP measure) for the quarter ended March 31, 2025, was 2.95%, compared to 2.79% for the quarter ended December 31, 2024. The increased net interest margin for the three months ended March 31, 2025 compared to December 31, 2024 is primarily the result of reduced deposit and borrowing costs as a result of the Federal Reserve’s reduction of federal funds rates during the last four months of 2024. See Table 1 at the end of this press release for a reconciliation of the tax-adjusted net interest margin to the GAAP net interest margin. Funding - As of March 31 2025, deposits totaled $1.8 billion, a decrease of $10.2 million, or 0.6% compared to December 31, 2024, which also totaled $1.8 billion. As of March 31, 2025, non-interest-bearing deposits totaled $281.5 million, an increase of $18.1 million or 6.9%, compared to December 31, 2024. Core deposits totaled $1.2 billion at both March 31, 2025 and December 31, 2024. Core deposits include checking, savings, and money market accounts and represented 68.9% of the Bancorp’s total deposits at March 31, 2025. As of March 31, 2025, balances for certificates of deposit totaled $544.8 million, compared to $560.3 million on December 31, 2024, a decrease of $15.5 million or 2.8%. The decline in total portfolio deposits is primarily related to cyclical flows and continued adjustments to deposit pricing. The increase in non-interest-bearing deposits is primarily attributable to inflows of business-related checking deposits after year-end. In addition, as of March 31, 2025, borrowings and repurchase agreements totaled $101.7 million, a decrease of $3.4 million or 3.2%, compared to December 31, 2024. The decrease in short-term borrowings was the result of cyclical inflows and outflows of interest-earning assets and interest-bearing liabilities.As of March 31, 2025, 72% of our deposits are fully FDIC insured, and another 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 March 31, 2025, the Bancorp had available liquidity of $697 million including borrowing capacity from the FHLB and Federal Reserve facilities. Securities Portfolio - Securities available for sale balances decreased by $3.5 million to $330.1 million as of March 31, 2025, compared to $333.6 million as of December 31, 2024. The decrease in securities available for sale was primarily due to continued portfolio runoff. Accumulated other comprehensive loss ("AOCL") was $58.2 million as of March 31, 2025, compared to $58.1 million on December 31, 2024, a decline of $160.4 thousand, or 0.3%. The yield on the securities portfolio increased to 2.38% for the three months ended March 31, 2025 from 2.34% for the three months ended December 31, 2024. Management did not execute any securities sale transactions during the quarter. Lending - The Bank’s aggregate loan portfolio totaled $1.5 billion on both March 31, 2025 and December 31, 2024. During the three months ended March 31, 2025, the Bank originated $36.7 million in new commercial loans, compared to $25.0 million during the three months ended December 31, 2024. The loan portfolio represents 79.1% of earning assets and is comprised of 62.6% commercial-related credits. At March 31, 2025, the Bancorp’s portfolio loan balances in commercial real estate owner occupied properties totaled $236.9 million or 15.7% of total loan balances and commercial real estate non-owner-occupied properties totaled $302.8 million or 20.1% of total loan balances. Of the $302.8 million in commercial real estate non-owner-occupied properties balances, loans collateralized by office buildings represented $40.4 million or 2.7% of total loan balances. Asset Quality - At March 31, 2025, non-performing loans totaled $12.5 million, compared to $13.7 million at December 31, 2024, a decrease of $1.3 million or 9.1%. The Bank’s ratio of non-performing loans to total loans was 0.84% at March 31, 2025, compared to 0.91% at December 31, 2024. The Bank’s ratio of non-performing assets to total assets was 0.69% at March 31, 2025, compared to 0.74% at December 31, 2024. Management maintains a vigilant oversight of nonperforming loans through proactive relationship management.The allowance for credit losses (ACL) on loans totaled $17.9 million at March 31, 2025, or 1.20% of total loans receivable, compared to $16.9 million at December 31, 2024, or 1.12% of total loans receivable, an increase of $1 million or 6.2%. The Bank’s unused commitment reserve, included in other liabilities, totaled $2.1 million at March 31, 2025, compared to $2.7 million at December 31, 2024, a decrease of $622 thousand or 22.7%. For the quarter ended March 31, 2025, the Bank recorded a net provision for credit loss expense totaling $454 thousand based on historical loss rate updates, migration of loan and unfunded commitment segment balances, and other factors within the Bank’s ACL modeling. The first quarter’s provision expense consisted of a $1.1 million provision for credit losses on loans, and a $623 thousand reversal of provision for credit losses on unused commitments. The decrease in the Bank’s unused commitment reserve was primarily due to lower loss rates. For the quarter ended March 31, 2025, net charge-offs, totaled $32.7 thousand, compared to $2.2 million for the quarter ended December 31, 2024, a decrease of $2.1 million, or a decline of 97.2%. The ACL as a percentage of non-performing loans, or coverage ratio, was 143.8% at March 31, 2025 compared to 123.1% at December 31, 2024. Operating Expenses - Non-interest expense as a percentage of average assets was 2.81% for the quarter ended March 31, 2025, as compared to 2.75% for the quarter ended December 31, 2024. The increase in non-interest expenses quarter over quarter was primarily attributable to increased compensation and benefit expenses offset by reduced data processing and marketing expenses. The Bank remains focused on identifying additional operating efficiencies and third-party expense reductions. Compensation and benefits expense is up 3.7% for the quarter ended March 31, 2025, compared to the quarter ended March 31, 2024, primarily due to annual merit-based salary increases during the quarter ended March 31, 2025. Capital Adequacy - As of March 31, 2025, the Bank’s tier 1 capital to adjusted average assets ratio was 8.48%, an improvement of 0.01% compared to 8.47% at December 31, 2024. 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 was $29.55 at March 31, 2025, up from $29.48 as of December 31, 2024 (a non-GAAP measure). Tangible common equity to total assets was 6.26% at March 31, 2025, up from 6.17% as of December 31, 2024 (a non-GAAP measure). Excluding accumulated other comprehensive losses, tangible book value per share increased to $43.02 as of March 31, 2025, from $42.94 as of December 31, 2024 (a non-GAAP measure). See Table 1 at the end of this press release for a reconciliation of the tangible book value per share, tangible book value per share adjusted for other accumulated comprehensive losses, tangible common equity as a percentage of total assets, and tangible common equity as a percentage of total assets adjusted for accumulated other comprehensive losses to the related GAAP ratios. Disclosures Regarding Non-GAAP Financial MeasuresReported 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/total assets, tax-adjusted net interest margin, and efficiency ratio, which can vary from period to period, provides a better comparison of period to period operating performance. The adjusted net interest income and tax-adjusted net interest margin 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 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 Table 1 – Reconciliation of Non-GAAP Financial Measures at the end of this document for a reconciliation of the non-GAAP measures identified herein and their most comparable GAAP measures. About Finward BancorpFinward 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 StatementsThis 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; the Bank’s ability to demonstrate compliance with the terms of the previously disclosed consent order and 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; the aggregate effects of inflation experienced in recent years; 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. FOR FURTHER INFORMATIONCONTACT SHAREHOLDER SERVICES(219) 853-7575