Finward Bancorp Files 2023 Annual Report on Form 10-K

TL;DR

<b>Finward Bancorp filed its 2023 10-K, reporting $4.3 billion in assets and $795,423 in net income.</b>

AI Summary

Finward Bancorp (FNWD) filed a Annual Report (10-K) with the SEC on March 28, 2024. Finward Bancorp reported total assets of $4,298,773,000 as of December 31, 2023. The company's net income for the twelve months ended December 31, 2023, was $795,423. Earnings per share (EPS) for the twelve months ended December 31, 2023, were $1.24. Finward Bancorp's operating margin was 47.75% for the twelve months ended December 31, 2023. The company's gross margin was 4.30% for the twelve months ended December 31, 2023.

Why It Matters

For investors and stakeholders tracking Finward Bancorp, this filing contains several important signals. The filing provides a comprehensive overview of Finward Bancorp's financial performance and position for the fiscal year ended December 31, 2023, including key metrics like assets, net income, and EPS. Investors and analysts can use this report to assess the company's profitability, operational efficiency, and overall financial health, aiding in investment decisions and competitive analysis.

Risk Assessment

Risk Level: low — Finward Bancorp shows low risk based on this filing. The filing is a standard 10-K report, which is routine for publicly traded companies and does not indicate any unusual or significant negative events.

Analyst Insight

Review the detailed financial statements and risk factors within the 10-K to understand Finward Bancorp's performance drivers and potential challenges.

Financial Highlights

revenue

4,298,773

operating Margin

47.75

total Assets

4,298,773

net Income

795,423

eps

1.24

gross Margin

4.30

Key Numbers

• 4,298,773,000 — Total Assets (As of December 31, 2023.)
• 795,423 — Net Income (For the twelve months ended December 31, 2023.)
• 1.24 — EPS (For the twelve months ended December 31, 2023.)
• 47.75% — Operating Margin (For the twelve months ended December 31, 2023.)
• 4.30% — Gross Margin (For the twelve months ended December 31, 2023.)
• 10,000,000 — Common Stock Value (As of December 31, 2023.)
• 4,298,401 — Retained Earnings (As of December 31, 2023.)
• 2.9 — Pre-tax merger expenses (Excluded for the twelve months ended December 31, 2022.)

Key Players & Entities

• Finward Bancorp (company) — Filer of the 10-K report.
• 9204 COLUMBIA AVE (location) — Business and mailing address of Finward Bancorp.
• MUNSTER (location) — City of Finward Bancorp's business and mailing address.
• IN (location) — State of Finward Bancorp's business and mailing address.
• 46321 (location) — ZIP code of Finward Bancorp's business and mailing address.
• 219 836-9690 (phone) — Business phone number for Finward Bancorp.
• NORTHWEST INDIANA BANCORP (company) — Former company name of Finward Bancorp.
• ASC 326 (regulation) — Accounting Standards Update adopted by the company.

FAQ

Key Financial Figures

• $20.14 — .4609 shares of Finward common stock or $20.14 in cash, or a combination of both, for
• $18.7 million — aid cash consideration of approximately $18.7 million in the RYFL Merger. Based on the closin
• $56.7 million — d an implied valuation of approximately $56.7 million. The acquisition further expanded the B
• $27.5 million — d surplus limitation, was approximately $27.5 million. At December 31, 2023, the Bank had no
• $4,000,000 — irectors, to approve loans. Loans up to $4,000,000 are approved by the loan officers' loan
• $7,000,000 — oan committee. Loans from $4,000,000 to $7,000,000 are approved by the senior officers' lo
• $15,000,000 — mittee (SOLC). Loans from $7,000,000 to $15,000,000 are approved the executive officer's lo
• $1,000,000 — sions of credit to that person, exceeds $1,000,000 unless: (1) the extension of credit has
• $17.7 million — n year period. ARM originations totaled $17.7 million for 2023 and $44.6 million for 2022. Du
• $44.6 million — ions totaled $17.7 million for 2023 and $44.6 million for 2022. During 2023, ARMs represented

Filing Documents

• fnwd20231231_10k.htm (10-K) — 4577KB
• ex_633857.htm (EX-21) — 9KB
• ex_633858.htm (EX-23.1) — 3KB
• ex_633859.htm (EX-31.1) — 10KB
• ex_633860.htm (EX-31.2) — 9KB
• ex_633861.htm (EX-32) — 8KB
• ex_642088.htm (EX-97) — 74KB
• 0001437749-24-009816.txt (&nbsp;) — 20652KB
• fnwd-20231231.xsd (EX-101.SCH) — 123KB
• fnwd-20231231_cal.xml (EX-101.CAL) — 91KB
• fnwd-20231231_def.xml (EX-101.DEF) — 844KB
• fnwd-20231231_lab.xml (EX-101.LAB) — 732KB
• fnwd-20231231_pre.xml (EX-101.PRE) — 905KB
• fnwd20231231_10k_htm.xml (XML) — 4886KB

Risk Factors

Item 1A. Risk Factors 34

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments 46

Cybersecurity

Item 1C. Cybersecurity 47

Properties

Item 2. Properties 48

Legal Proceedings

Item 3. Legal Proceedings 49

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 49

5 Information About Our Executive Officers

Item 4.5 Information About Our Executive Officers 49 PART II.

Market for the Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Item 5. Market for the Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 51

[Reserved]

Item 6. [Reserved] 52

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 52

Quantitative and Qualitative Disclosures about Market Risk

Item 7A. Quantitative and Qualitative Disclosures about Market Risk 66

Financial Statements

Item 8. Financial Statements 67

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 115

Controls and Procedures

Item 9A. Controls and Procedures 115

Other Information

Item 9B. Other Information 117

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 117 PART III.

Directors, Executive Officers and Corporate Governance

Item 10. Directors, Executive Officers and Corporate Governance 118

Executive Compensation

Item 11. Executive Compensation 118

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 118

Certain Relationships and Related Transactions, and Director Independence

Item 13. Certain Relationships and Related Transactions, and Director Independence 118

Principal Accountant Fees and Services

Item 14. Principal Accountant Fees and Services 118 PART IV.

Exhibits and Financial Statement Schedules

Item 15. Exhibits and Financial Statement Schedules 119

SIGNATURES

SIGNATURES 122 EXHIBIT INDEX 119 Page 3 of 122 PART I

Business

Item 1. Business General Finward Bancorp, an Indiana corporation (the "Bancorp" or "Finward"), was incorporated on January 31, 1994, and is the holding company for Peoples Bank, an Indiana-chartered commercial bank (the "Bank"). The Bank is a wholly owned subsidiary of the Bancorp. The Bancorp has no other business activity other than being a holding company for the Bank and the Bancorp's earnings are primarily dependent upon the earnings of the Bank. The Bank is primarily engaged in the business of attracting deposits from the general public and the origination of loans, mostly upon the security of single family residences and commercial real estate, as well as, construction loans and various types of consumer loans, commercial business loans and municipal loans, within its primary market areas of Lake and Porter Counties, in Northwest Indiana, and Cook County, Illinois. In addition, the Bancorp's Wealth Management Group currently provides estate and retirement planning, custodial services, guardianships, IRA accounts, investment agency accounts, serves as the personal representative of estates, and acts as corporate trustee for revocable and irrevocable trusts. On January 31, 2022, the Bancorp completed its acquisition of Royal Financial, Inc. ("RYFL") pursuant to an Agreement and Plan of Merger dated July 28, 2021 (the "Merger Agreement") between the Bancorp and RYFL. Pursuant to the terms of the Merger Agreement, RYFL merged with and into the Bancorp, with the Bancorp as the surviving corporation (the "RYFL Merger"). Simultaneous with the RYFL Merger, Royal Savings Bank, an Illinois state-chartered savings bank and wholly-owned subsidiary of RYFL, merged with and into the Bank, with the Bank as the surviving institution. Under the terms of the Merger Agreement, RYFL stockholders who owned 101 or more shares of RYFL common stock were permitted to elect to receive either 0.4609 shares of Finward common stock or $20.14 in cash, or a combination of both, for e

Forward-Looking Statements

Forward-Looking Statements Certain of the statements made in this report are "forward-looking statements" within the meaning and protections of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act. All statements other than statements of historical fact, including statements regarding our financial position, business strategy, and the plans and objectives of our management for future operations, are forward-looking statements. You can identify these forward-looking statements through our use of words such as "may," "will," "anticipate," "assume," "should," "indicate," "would," "believe," "contemplate," "expect," "estimate," "continue," "plan," "point to," "project," "could," "intend," "target," and other similar words and expressions relating to the future. Although management believes that the expectations reflected in such forward-looking statements are reasonable, actual results may differ materially, and adversely or positively, from the expectations of the Bancorp that are expressed or implied by any forward-looking statement. Risks, uncertainties, and factors that could cause the Bancorp's actual results to vary materially from those expressed or implied by any forward-looking statement include but are not limited to: 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 interest rates, market liquidity, and capital markets, as well as the magnitude of such changes, which may reduce net interest margins; continuing effects of inflation; current financial

View Full Filing

View this 10-K filing on SEC EDGAR