Finward Bancorp Announces Third Quarter 2025 Results
MUNSTER, Ind.--( 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:
Performance Ratios
Quarter ended
9/30/2025
6/30/2025
3/31/2025
12/31/2024
9/30/2024
Return on equity
8.96%
5.66%
1.17%
5.39%
1.60%
Return on assets
0.68%
0.42%
0.09%
0.41%
0.12%
Net interest margin, tax-equivalent (non-GAAP)
3.18%
3.11%
2.95%
2.79%
2.66%
Non-interest income/average assets
0.57%
0.53%
0.43%
0.72%
0.55%
Non-interest expense/average assets
2.74%
2.90%
2.81%
2.75%
2.80%
Efficiency ratio
81.22%
88.92%
93.11%
87.20%
97.32%
“We continued to build momentum in the third quarter, delivering overall improved profitability. Margin expansion and stable credit contributed to further overall profitability gains, along with benefits in overhead efficiency. The recent rate cut by the Federal Reserve, coupled with our strengthened capital and liquidity position, provides a solid foundation for growth as we enter the final quarter of the year," said Benjamin Bochnowski, CEO. "We are well positioned to maintain our current trajectory, and I'm proud of our team and their disciplined execution that got us to this point."
Highlights of the current period include:
Disclosures Regarding Non-GAAP Financial Measures
Reported amounts are presented in accordance with GAAP. In this press release, the Bancorp also provides certain financial measures identified as non-GAAP. The Bancorp’s management believes that the non-GAAP information, which consists of tangible common equity, tangible common equity adjusted for accumulated other comprehensive losses, tangible book value per share, tangible book value per share adjusted for accumulated other comprehensive losses, tangible common equity/tangible assets, tangible common equity adjusted for other comprehensive loss/tangible assets, net interest margin on a tax-equivalent basis, and efficiency ratio which can vary from period to period, provides a better comparison of period to period operating performance. The net interest income and net interest margin on a tax-equivalent basis measures recognize the income tax savings when comparing taxable and tax-exempt assets. Interest income and yields on tax-exempt securities and loans are presented using the current federal corporate income tax rate of 21%. Management believes that it is standard practice in the banking industry to present net interest income and net interest margin on a fully tax-equivalent basis and that it may enhance comparability for peer comparison purposes. Additionally, the Bancorp believes this information is utilized by regulators and market analysts to evaluate a company’s financial condition and, therefore, such information is useful to investors. These disclosures should not be viewed as a substitute for financial results in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures which may be presented by other companies. Refer to the "Reconciliation of non-GAAP Financial Measures" below for more information.
About Finward Bancorp
Finward Bancorp is a locally managed and independent financial holding company headquartered in Munster, Indiana, whose activities are primarily limited to holding the stock of Peoples Bank. Peoples Bank provides a wide range of personal, business, electronic and wealth management financial services from its 26 locations in Lake and Porter Counties in Northwest Indiana and Chicagoland. Finward Bancorp’s common stock is quoted on The NASDAQ Stock Market, LLC under the symbol FNWD. The website ibankpeoples.com provides information on Peoples Bank’s products and services, and Finward Bancorp’s investor relations.
Forward Looking Statements
This press release may contain forward-looking statements regarding the financial performance, business prospects, growth and operating strategies of the Bancorp. For these statements, the Bancorp claims the protections of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Statements in this communication should be considered in conjunction with the other information available about the Bancorp, including the information in the filings the Bancorp makes with the SEC. Forward-looking statements provide current expectations or forecasts of future events and are not guarantees of future performance. The forward-looking statements are based on management’s expectations and are subject to a number of risks and uncertainties. Forward-looking statements are typically identified by using words such as “anticipate,” “estimate,” “project,” “intend,” “plan,” “believe,” “will” and similar expressions in connection with any discussion of future operating or financial performance.
Although management believes that the expectations reflected in such forward-looking statements are reasonable, actual results may differ materially from those expressed or implied in such statements. Risks and uncertainties that could cause actual results to differ materially include: changes in domestic and international trade policies, including tariffs and other non-tariff barriers, and the effects of such changes on the Bank and its customers; risks related to the development and use of artificial intelligence (AI); the Bank’s ability to demonstrate compliance with the terms of the previously disclosed memorandum of understanding entered into between the Bank and the Federal Deposit Insurance Corporation (“FDIC”) and Indiana Department of Financial Institutions (“DFI”), or to demonstrate compliance to the satisfaction of the FDIC and/or DFI within prescribed time frames; the Bank’s agreement under the memorandum of understanding to refrain from paying cash dividends without prior regulatory approval; changes in asset quality and credit risk; the inability to sustain revenue and earnings growth; changes in interest rates, market liquidity, and capital markets, as well as the magnitude of such changes, which may reduce net interest margins; inflation; further deterioration in the market value of securities held in the Bancorp’s investment securities portfolio, whether as a result of macroeconomic factors or otherwise; customer acceptance of the Bancorp’s products and services; customer borrowing, repayment, investment, and deposit practices; customer disintermediation; the introduction, withdrawal, success, and timing of business initiatives; competitive conditions; the inability to realize cost savings or revenues or to implement integration plans and other consequences associated with mergers, acquisitions, and divestitures; economic conditions; and the impact, extent, and timing of technological changes, capital management activities, regulatory actions by the Federal Deposit Insurance Corporation and Indiana Department of Financial Institutions, and other actions of the Federal Reserve Board and legislative and regulatory actions and reforms. Additional factors that could cause actual results to differ materially from those expressed in the forward-looking statements are discussed in the Bancorp’s reports (such as the Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K) filed with the SEC and available at the SEC’s Internet website ( www.sec.gov). All subsequent written and oral forward-looking statements concerning matters attributable to the Bancorp or any person acting on its behalf are expressly qualified in their entirety by the cautionary statements above. Except as required by law, The Bancorp does not undertake any obligation to update any forward-looking statement to reflect circumstances or events that occur after the date the forward-looking statement is made.
In addition to the above factors, we also caution that the actual amounts and timing of any future common stock dividends or share repurchases will be subject to various factors, including our capital position, financial performance, capital impacts of strategic initiatives, market conditions, and regulatory and accounting considerations, as well as any other factors that our Board of Directors deems relevant in making such a determination. Therefore, there can be no assurance that we will repurchase shares or pay any dividends to holders of our common stock, or as to the amount of any such repurchases or dividends.
Performance Ratios
Quarter Ended
Nine Months Ended
9/30/2025
6/30/2025
3/31/2025
12/31/2024
9/30/2024
9/30/2025
9/30/2024
Return on equity
8.96
%
5.66
%
1.17
%
5.39
%
1.60
%
5.27
%
4.50
%
Return on assets
0.68
%
0.42
%
0.09
%
0.41
%
0.12
%
0.40
%
0.64
%
Yield on loans
5.49
%
5.36
%
5.25
%
5.27
%
5.22
%
5.37
%
5.12
%
Yield on security investments
2.40
%
2.42
%
2.38
%
2.34
%
2.37
%
2.40
%
2.39
%
Total yield on earning assets
4.91
%
4.82
%
4.71
%
4.74
%
4.70
%
4.82
%
4.62
%
Cost of interest-bearing deposits
2.16
%
2.12
%
2.17
%
2.41
%
2.47
%
2.15
%
2.40
%
Cost of repurchase agreements
3.37
%
3.32
%
3.35
%
3.65
%
4.04
%
3.35
%
3.93
%
Cost of borrowed funds
3.64
%
3.91
%
4.12
%
4.31
%
4.56
%
3.90
%
4.70
%
Total cost of interest-bearing liabilities
2.25
%
2.22
%
2.28
%
2.53
%
2.63
%
2.25
%
2.57
%
Net interest margin
3.04
%
2.97
%
2.81
%
2.65
%
2.53
%
2.94
%
2.49
%
Net interest margin, tax-equivalent (non-GAAP) (1)
3.18
%
3.11
%
2.95
%
2.79
%
2.66
%
3.08
%
2.63
%
Non-interest income/average assets
0.57
%
0.53
%
0.43
%
0.72
%
0.55
%
0.51
%
1.21
%
Non-interest expense/average assets
2.74
%
2.90
%
2.81
%
2.75
%
2.80
%
2.81
%
2.82
%
Efficiency ratio (non-GAAP) (1)
81.22
%
88.92
%
93.11
%
87.20
%
97.32
%
87.54
%
80.16
%
Non-performing assets to total assets
0.76
%
0.74
%
0.69
%
0.74
%
0.73
%
0.76
%
0.73
%
Non-performing loans to total loans
0.94
%
0.91
%
0.84
%
0.91
%
0.92
%
0.94
%
0.92
%
Allowance for credit losses to non-performing loans
129.41
%
133.01
%
143.84
%
123.10
%
134.12
%
129.41
%
134.12
%
Allowance for credit losses to loans receivable
1.22
%
1.22
%
1.20
%
1.12
%
1.23
%
1.22
%
1.23
%
Net charge-offs (recoveries) as a percentage of average loans receivable
0.07
%
(0.11
%)
0.01
%
0.59
%
0.05
%
(0.01
%)
(0.01
)%
Basic earnings per share
$
0.82
$
0.50
$
0.11
$
0.49
$
0.14
$
1.43
$
2.35
Diluted earnings per share
$
0.81
$
0.50
$
0.11
$
0.49
$
0.14
$
1.42
$
2.35
Weighted average common shares outstanding—basic
4,273,022
4,271,952
4,266,976
4,261,079
4,260,809
4,270,652
4,259,063
Weighted average common shares outstanding—diluted
4,299,007
4,291,319
4,284,496
4,286,742
4,281,148
4,291,171
4,271,664
Stockholders' equity to total assets
8.06
%
7.48
%
7.44
%
7.35
%
7.69
%
8.06
%
7.69
%
Tangible common equity to tangible assets (non-GAAP) (1)
6.99
%
6.41
%
6.34
%
6.24
%
6.58
%
6.99
%
6.58
%
Tangible common equity adjusted for accumulated other comprehensive loss to tangible assets (non-GAAP) (1)
9.42
%
9.24
%
9.23
%
9.10
%
8.93
%
9.42
%
8.93
%
Book value per share
$
38.24
$
35.67
$
35.10
$
35.10
$
36.99
$
38.24
$
36.99
Tangible common book value per share (non-GAAP) (1)
$
32.77
$
30.16
$
29.55
$
29.48
$
31.28
$
32.77
$
31.28
Tangible common book value per share adjusted for accumulated other comprehensive loss (non-GAAP) (1)
$
44.16
$
43.47
$
43.02
$
42.94
$
42.47
$
44.16
$
42.47
Closing stock price
$
32.09
$
27.62
$
29.10
$
28.11
$
31.98
$
32.09
$
31.98
Dividends declared per common share
$
0.12
$
0.12
$
—
$
0.12
$
0.12
$
0.24
$
0.36
Average Balances, Interest, Rates
Quarter Ended
September 30, 2025
June 30, 2025
March 31, 2025
Average
Balance
Interest
Yield/Rate
Average
Balance
Interest
Yield/Rate
Average
Balance
Interest
Yield/Rate
ASSETS
Interest bearing deposits in other financial institutions
$
90,880
$
991
4.36
%
$
57,749
$
614
4.25
%
$
53,553
$
540
4.03
%
Federal funds sold
1,285
12
3.74
%
868
8
3.69
%
1,375
12
3.49
%
Securities available-for-sale
327,030
1,965
2.40
%
327,867
1,980
2.42
%
336,060
1,998
2.38
%
Loans receivable
1,474,324
20,246
5.49
%
1,486,861
19,940
5.36
%
1,498,312
19,655
5.25
%
Federal Home Loan Bank stock
6,547
126
7.70
%
6,547
128
7.82
%
6,547
136
8.31
%
Total interest earning assets
1,900,066
$
23,340
4.91
%
1,879,892
$
22,670
4.82
%
1,895,847
$
22,341
4.71
%
Cash and non-interest bearing deposits in other financial institutions
24,882
27,192
27,919
Allowance for credit losses
(18,243
)
(18,028
)
(16,946
)
Other non-interest bearing assets
152,135
152,880
153,148
Total assets
$
2,058,840
$
2,041,936
$
2,059,968
LIABILITIES AND STOCKHOLDERS' EQUITY
Interest-bearing deposits
$
1,478,543
$
7,996
2.16
%
$
1,470,225
$
7,780
2.12
%
$
1,481,377
$
8,044
2.17
%
Repurchase agreements
46,498
392
3.37
%
44,401
370
3.33
%
41,631
349
3.35
%
Borrowed funds
55,904
509
3.64
%
58,995
575
3.90
%
61,613
635
4.12
%
Total interest bearing liabilities
1,580,945
$
8,897
2.25
%
1,573,621
$
8,725
2.22
%
1,584,621
$
9,028
2.28
%
Non-interest bearing deposits
285,347
278,620
279,013
Other non-interest bearing liabilities
36,397
37,703
40,923
Total liabilities
1,902,689
1,889,944
1,904,557
Total stockholders' equity
156,151
151,992
155,411
Total liabilities and stockholders' equity
$
2,058,840
$
2,041,936
$
2,059,968
Net interest income
$
14,443
$
13,945
$
13,313
Return on average assets
0.68
%
0.42
%
0.09
%
Return on average equity
8.96
%
5.66
%
1.17
%
Net interest margin
3.04
%
2.97
%
2.81
%
Net interest margin, tax-equivalent (non-GAAP) (1)
3.18
%
3.11
%
2.95
%
Net interest spread
2.66
%
2.60
%
2.43
%
Ratio of interest-earning assets to interest-bearing liabilities
1.20x
1.19x
1.20x
Consolidated Balance Sheets
As of
(Dollars in thousands)
9/30/2025
6/30/2025
3/31/2025
12/31/2024
9/30/2024
ASSETS
Cash and non-interest bearing deposits in other financial institutions
$
19,458
$
23,027
$
18,563
$
17,883
$
23,071
Interest bearing deposits in other financial institutions
84,157
79,976
52,829
52,047
48,025
Federal funds sold
563
411
975
654
553
Total cash and cash equivalents
104,178
103,414
72,367
70,584
71,649
Securities available-for-sale
335,150
327,845
330,127
333,554
350,027
Loans held-for-sale
2,641
834
2,849
1,253
2,567
Loans receivable, net of deferred fees and costs
1,473,774
1,484,278
1,491,696
1,508,976
1,508,242
Less: allowance for credit losses
(17,977
)
(18,184
)
(17,955
)
(16,911
)
(18,516
)
Net loans receivable
1,455,797
1,466,094
1,473,741
1,492,065
1,489,726
Federal Home Loan Bank stock
6,547
6,547
6,547
6,547
6,547
Accrued interest receivable
7,585
7,651
7,821
7,721
7,442
Premises and equipment
45,544
46,179
46,680
47,259
47,912
Cash value of bank owned life insurance
33,843
33,932
33,712
33,514
33,312
Goodwill
22,395
22,395
22,395
22,395
22,395
Other intangible assets
1,273
1,414
1,635
1,860
2,203
Other assets
37,771
41,606
41,840
43,947
40,882
Total assets
$
2,052,724
$
2,057,911
$
2,039,714
$
2,060,699
$
2,074,662
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Non-interest bearing
$
280,296
$
271,172
$
281,461
$
263,324
$
285,157
Interest bearing
1,470,350
1,483,678
1,468,923
1,497,242
1,463,653
Total
1,750,646
1,754,850
1,750,384
1,760,566
1,748,810
Repurchase agreements
48,426
48,331
45,053
40,116
43,038
Borrowed funds
55,000
65,000
56,657
65,000
85,000
Accrued expenses and other liabilities
33,157
35,477
35,813
43,603
38,259
Total liabilities
1,887,229
1,903,658
1,887,907
1,909,285
1,915,107
Stockholders' Equity:
Preferred stock, no par or stated value; 10,000,000 shares authorized, none outstanding
-
-
-
-
-
Common stock, no par or stated value; 10,000,000 shares authorized (1)
-
-
-
-
-
Additional paid-in capital
70,233
70,263
70,132
70,034
69,916
Accumulated other comprehensive loss
(49,266
)
(57,560
)
(58,244
)
(58,084
)
(48,241
)
Retained earnings
144,528
141,550
139,919
139,464
137,880
Total stockholders' equity
165,495
154,253
151,807
151,414
159,555
Total liabilities and stockholders' equity
$
2,052,724
$
2,057,911
$
2,039,714
$
2,060,699
$
2,074,662
(1) Shares of common stock issued and outstanding were 4,327,511 at 9/30/2025; 4,324,889 at 6/30/2025; 4,324,485 at 3/31/2025; 4,313,698 at 12/31/24; and 4,313,940 at 9/30/24.
Consolidated Statements of Income
Quarter Ended
(Dollars in thousands, except per share data)
9/30/2025
6/30/2025
3/31/2025
12/31/2024
9/30/2024
Interest income:
Loans
$
20,246
$
19,940
$
19,655
$
19,802
$
19,660
Securities & short-term investments
3,094
2,730
2,686
2,793
2,812
Total interest income
23,340
22,670
22,341
22,595
22,472
Interest expense:
Deposits
7,996
7,780
8,045
8,812
8,946
Borrowings
901
945
983
1,176
1,520
Total interest expense
8,897
8,725
9,028
9,988
10,466
Net interest income
14,443
13,945
13,313
12,607
12,006
Provision for (benefit from) credit losses
(301
)
(274
)
454
(579
)
-
Net interest income after provision for credit losses
14,744
14,219
12,859
13,186
12,006
Non-interest income:
Fees and service charges
1,463
1,330
1,109
1,439
1,463
Wealth management operations
759
696
619
728
731
Gain on tax credit investment
23
-
67
1,236
-
Gain on sale of loans held-for-sale, net
265
378
230
328
338
Increase in cash value of bank owned life insurance
210
220
198
202
205
Gain (loss) on sale of real estate
(56
)
-
-
(212
)
-
Other
249
59
6
11
130
Total non-interest income
2,913
2,683
2,229
3,732
2,867
Non-interest expense:
Compensation and benefits
7,330
7,313
7,372
6,628
6,963
Occupancy and equipment
2,004
1,935
2,111
2,045
2,181
Data processing
1,116
1,341
1,039
1,202
1,165
Federal deposit insurance premiums
399
471
433
457
435
Marketing
257
214
86
220
209
Professional and outside services
945
1,115
1,260
1,341
1,251
Technology
549
545
454
509
602
Other
1,497
1,852
1,717
1,845
1,668
Total non-interest expense
14,097
14,786
14,472
14,247
14,474
Income before income taxes
3,560
2,116
616
2,671
399
Income tax expenses (benefit)
63
(35
)
161
569
(207
)
Net income
$
3,497
$
2,151
$
455
$
2,102
$
606
Earnings per common share:
Basic
$
0.82
$
0.50
$
0.11
$
0.49
$
0.14
Diluted
$
0.81
$
0.50
$
0.11
$
0.49
$
0.14
Consolidated Statements of Income (cont'd)
Nine Months Ended
(Dollars in thousands, except per share data)
9/30/2025
9/30/2024
Interest income:
Loans
$
59,841
$
57,713
Securities & short-term investments
8,510
8,870
Total interest income
68,351
66,583
Interest expense:
Deposits
23,821
26,350
Borrowings
2,829
4,393
Total interest expense
26,650
30,743
Net interest income
41,701
35,840
Provision for (benefit from) credit losses
(121
)
76
Net interest income after provision for credit losses
41,822
35,764
Non-interest income:
Fees and service charges
3,902
3,873
Wealth management operations
2,074
2,127
Gain on tax credit investment
90
-
Gain on sale of loans held-for-sale, net
873
810
Increase in cash value of bank owned life insurance
628
610
Gain (loss) on sale of real estate
(56
)
11,873
Loss on sale of securities, net
—
(531
)
Other
314
154
Total non-interest income
7,825
18,916
Non-interest expense:
Compensation and benefits
22,015
21,109
Occupancy and equipment
6,050
6,205
Data processing
3,496
3,470
Federal deposit insurance premiums
1,303
1,333
Marketing
557
579
Professional and outside services
3,320
4,064
Technology
1,548
1,734
Other
5,066
5,401
Total non-interest expense
43,355
43,895
Income before income taxes
6,292
10,785
Income tax expenses
189
756
Net income
$
6,103
$
10,029
Earnings per common share:
Basic
$
1.43
$
2.35
Diluted
$
1.42
$
2.35
Loans
As of
(Dollars in thousands)
9/30/2025
6/30/2025
3/31/2025
12/31/2024
9/30/2024
9/30/2025 vs
6/30/2025
9/30/2025 vs
9/30/2024
Residential real estate
$
450,007
$
457,248
$
458,424
$
467,293
$
471,156
$
(7,241
)
(1.6
)%
$
(21,149
)
(4.5
)%
Home equity
51,813
51,112
49,752
49,758
49,106
701
1.4
%
2,707
5.5
%
Commercial real estate
564,558
551,091
554,866
551,674
539,972
13,467
2.4
%
24,586
4.6
%
Construction and land development
79,678
74,795
86,728
82,874
87,923
4,883
6.5
%
(8,245
)
(9.4
)%
Multifamily
192,698
200,440
204,964
212,455
218,037
(7,742
)
(3.9
)%
(25,339
)
(11.6
)%
Commercial business
96,192
105,636
99,519
104,246
97,900
(9,444
)
(8.9
)%
(1,708
)
(1.7
)%
Consumer
348
2,347
504
551
522
(1,999
)
(85.2
)%
(174
)
(33.3
)%
Manufactured homes
24,372
25,146
25,762
26,708
27,462
(774
)
(3.1
)%
(3,090
)
(11.3
)%
Government
12,298
14,628
9,279
11,024
12,969
(2,330
)
(15.9
)%
(671
)
(5.2
)%
Loans receivable
1,471,964
1,482,443
1,489,798
1,506,583
1,505,047
(10,479
)
(0.7
)%
(33,083
)
(2.2
)%
Net deferred loan origination costs
1,719
2,012
2,209
2,439
2,606
(293
)
(14.6
)%
(887
)
(34.0
)%
Loan clearing funds
91
(177
)
(311
)
(46
)
589
268
(151.4
)%
(498
)
(84.6
)%
Loans receivable, net
$
1,473,774
$
1,484,278
$
1,491,696
$
1,508,976
$
1,508,242
$
(10,504
)
(0.7
)%
$
(34,468
)
(2.3
)%
Deposits
As of
(Dollars in thousands)
9/30/2025
6/30/2025
3/31/2025
12/31/2024
9/30/2024
9/30/2025 vs
6/30/2025
9/30/2025 vs
9/30/2024
Checking
$
579,760
$
593,471
$
589,403
$
591,487
$
579,132
$
(13,711
)
(2.3
)%
$
628
0.1
%
Savings
257,058
266,070
274,028
275,121
279,126
(9,012
)
(3.4
)%
(22,068
)
(7.9
)%
Money market
377,155
352,616
342,106
333,705
328,329
24,539
7.0
%
48,826
14.9
%
Certificates of deposit
536,673
542,693
544,847
560,253
562,223
(6,020
)
(1.1
)%
(25,550
)
(4.5
)%
Total deposits
$
1,750,646
$
1,754,850
$
1,750,384
$
1,760,566
$
1,748,810
$
(4,204
)
(0.2
)%
$
1,836
0.1
%
Asset Quality
As of and for the Quarter Ended
(Dollars in thousands)
9/30/2025
6/30/2025
3/31/2025
12/31/2024
9/30/2024
Non-accruing loans
$
13,892
$
13,526
$
12,483
$
13,738
$
13,806
Accruing loans delinquent more than 90 days
-
145
-
-
-
Securities in non-accrual
1,616
1,616
1,630
1,419
1,440
Total nonperforming assets
$
15,508
$
15,287
$
14,113
$
15,157
$
15,246
Allowance for credit losses (ACL):
ACL specific allowances for collateral dependent loans
$
912
$
570
$
259
$
284
$
1,821
ACL general allowances for loan portfolio
17,065
17,614
17,696
16,627
16,695
Total ACL
$
17,977
$
18,184
$
17,955
$
16,911
$
18,516
Allowance for Credit Losses
As of and for the Quarter Ended
(Dollars in thousands)
9/30/2025
6/30/2025
3/31/2025
12/31/2024
9/30/2024
Beginning allowance for credit losses
$
18,184
$
17,955
$
16,911
$
18,516
$
18,330
Provision for (benefit from) loan losses
61
(185
)
1,077
597
372
Net (charge-offs) recoveries
(268
)
414
(33
)
(2,202
)
(186
)
Ending allowance for credit losses
$
17,977
$
18,184
$
17,955
$
16,911
$
18,516
Bank-Level Regulatory Capital Requirements
September 30, 2025
Actual (1)
Minimum Required For
Capital Adequacy
Purposes
Minimum Required To Be
Well Capitalized Under Prompt
Corrective Action Regulations
(Dollars in thousands)
Amount
Ratio
Amount
Ratio
Amount
Ratio
Common equity tier 1 capital to risk-weighted assets
$
184,560
11.49
%
$
72,261
4.50
%
$
104,376
6.50
%
Tier 1 capital to risk-weighted assets
$
184,560
11.49
%
$
96,348
6.00
%
$
128,463
8.00
%
Total capital to risk-weighted assets
$
204,202
12.72
%
$
128,463
8.00
%
$
160,579
10.00
%
Tier 1 leverage ratio
$
184,560
8.77
%
$
84,146
4.00
%
$
105,182
5.00
%
(1) Current quarter ratios are estimated.
Reconciliation of Non-GAAP Performance Measures
Quarter Ended
(Dollars in thousands, except per share amounts)
9/30/2025
6/30/2025
3/31/2025
12/31/2024
9/30/2024
Tangible Common Ratios
Stockholder's equity (GAAP)
$
165,495
$
154,253
$
151,807
$
151,414
$
159,555
Less: Goodwill (GAAP)
(22,395
)
(22,395
)
(22,395
)
(22,395
)
(22,395
)
Less: Other intangibles (GAAP)
(1,273
)
(1,414
)
(1,635
)
(1,860
)
(2,203
)
Tangible common equity (non-GAAP)
$
141,827
$
130,444
$
127,777
$
127,159
$
134,957
Add: Accumulated other comprehensive loss (GAAP)
49,266
57,560
58,244
58,084
48,241
Tangible common equity adjusted for accumulated other comprehensive loss (non-GAAP) (1)
$
191,093
$
188,004
$
186,021
$
185,243
$
183,198
Total assets (GAAP)
$
2,052,724
$
2,057,911
$
2,039,714
$
2,060,699
$
2,077,067
Less: Goodwill (GAAP)
(22,395
)
(22,395
)
(22,395
)
(22,395
)
(22,395
)
Less: Other intangibles (GAAP)
(1,273
)
(1,414
)
(1,635
)
(1,860
)
(2,203
)
Tangible assets (non-GAAP)
$
2,029,056
$
2,034,102
$
2,015,684
$
2,036,444
$
2,052,469
Shares outstanding - end of quarter
4,327,511
4,324,889
4,324,485
4,313,698
4,313,940
Common book value per share (GAAP)
$
38.24
$
35.67
$
35.10
$
35.10
$
36.99
Tangible common book value per share (non-GAAP)
$
32.77
$
30.16
$
29.55
$
29.48
$
31.28
Tangible common book value per share adjusted for accumulated other comprehensive loss (non-GAAP)
$
44.16
$
43.47
$
43.02
$
42.94
$
42.47
Total equity to total assets (GAAP)
8.06
%
7.50
%
7.44
%
7.35
%
7.69
%
Tangible common equity to tangible assets (non-GAAP)
6.99
%
6.41
%
6.34
%
6.24
%
6.58
%
Tangible common equity adjusted for accumulated other comprehensive loss to tangible assets (non-GAAP)
9.42
%
9.24
%
9.23
%
9.10
%
8.93
%
Calculation of net interest margin, taxable-equivalent basis
Net interest income (GAAP)
$
14,443
$
13,945
$
13,313
$
12,607
$
12,006
Tax-equivalent adjustment on securities and loans (2)
663
674
670
674
678
Net interest income (tax-equivalent basis)
$
15,106
$
14,619
$
13,983
$
13,281
$
12,684
Total average earning assets
$
1,900,066
$
1,879,892
$
1,895,847
$
1,905,333
$
1,910,731
Net interest margin
3.04
%
2.97
%
2.81
%
2.65
%
2.53
%
Net interest margin (tax-equivalent basis)
3.18
%
3.11
%
2.95
%
2.79
%
2.66
%
Efficiency ratio
Total non-interest expense
$
14,097
$
14,786
$
14,472
$
14,247
$
14,474
Total revenue
17,356
16,628
15,542
16,339
14,873
Efficiency ratio
81.22
%
88.92
%
93.11
%
87.20
%
97.32
%
(1) Tangible common equity adjusted for accumulated other comprehensive loss is a non-GAAP financial measure used by management to evaluate the Company's capital position without the impact of unrealized losses recorded in accumulated other comprehensive loss. This measure adjusts tangible common equity by adding back unrealized losses included in accumulated other comprehensive loss.
(2) The tax equivalent adjustment represents the increase in net interest income needed to reflect the tax-exempt income from certain investment securities and loans on tax-equivalent basis using a federal statutory corporate rate of 21%.