Executive Summary

Q1 2025 GAAP diluted EPS was $0.11 and net income was $0.456M; total revenue was $15.54M. Net interest margin expanded to 2.81% (tax‐equivalent 2.95%), driven by lower deposit and borrowing costs following late-2024 Fed cuts .
Asset quality improved: non-performing loans fell 9.1% QoQ to $12.5M; ACL coverage rose to 143.8% and net charge-offs dropped to $32.7K from $2.2M in Q4 .
Noninterest income and expenses were impacted by seasonal/timing factors; efficiency ratio worsened to 93.11% vs 87.20% in Q4, but margin trajectory remained favorable per management .
Liquidity and capital robust: deposits ~$1.75B, available liquidity $697M; tangible book value per share increased to $29.55 (adjusted for AOCL: $43.02) .
Consensus snapshot: S&P Global shows Q1 EPS modestly above consensus and revenue below consensus; the narrative catalyst is continued margin expansion alongside improving credit metrics (see Estimates Context). Values retrieved from S&P Global.

What Went Well and What Went Wrong

What Went Well
- “Margin continued to expand in the first quarter as deposits repriced lower, continuing the trend we have seen over the past year” — CEO Benjamin Bochnowski; GAAP NIM 2.81% and tax-equivalent NIM 2.95% vs 2.65%/2.79% in Q4 .
- Asset quality improved: non-performing loans down to $12.5M; NPL/loans 0.84% vs 0.91% in Q4; ACL coverage up to 143.8% .
- Capital and liquidity remained strong: tier 1 leverage 8.48%, available liquidity $697M; tangible common equity/total assets 6.26% (adjusted for AOCL 9.12%) .
What Went Wrong
- Earnings normalization: net income fell to $0.456M vs $2.102M in Q4 and $9.279M in Q1 2024, reflecting lack of prior-period one-time gains and seasonal/timing impacts on noninterest income/expense .
- Efficiency ratio deteriorated to 93.11% (vs 87.20% in Q4), with compensation/benefits up 3.7% YoY; noninterest expense/avg assets rose to 2.81% .
- AOCL remained sizable at ~$58.2M (flat QoQ), a continued headwind to reported equity book metrics despite stability this quarter .

Financial Results

Metric	Q1 2024	Q4 2024	Q1 2025
Total Revenue ($USD Millions)	$25.26	$16.34	$15.54
Net Income ($USD Millions)	$9.28	$2.10	$0.46
Diluted EPS ($USD)	$2.17	$0.49	$0.11
Net Interest Margin (GAAP, %)	2.57	2.65	2.81
Net Interest Margin (Tax-Equivalent, %)	2.57	2.79	2.95
Efficiency Ratio (%)	59.41	87.20	93.11

Segment/Portfolio Mix and Funding

Metric	Q1 2024	Q4 2024	Q1 2025
Total Deposits ($USD Billions)	$1.75	$1.76	$1.75
Non-Interest-Bearing Deposits ($USD Millions)	$296.96	$263.32	$281.46
Certificates of Deposit ($USD Millions)	$—	$560.3	$544.8
Borrowings + Repos ($USD Millions)	$131.14	$105.12	$101.71
Loans Receivable (Gross, $USD Billions)	$1.51	$1.51	$1.49
CRE Owner-Occupied Loans ($USD Millions)	$—	$246.6	$236.9
CRE Non-Owner-Occupied Loans ($USD Millions)	$—	$305.1	$302.8
Office CRE Exposure ($USD Millions)	$—	$38.5	$40.4

Key Performance Indicators (KPIs)

KPI	Q1 2024	Q4 2024	Q1 2025
ROA (%)	1.77	0.41	0.09
ROE (%)	24.97	5.39	1.17
NPL / Total Loans (%)	0.78	0.91	0.84
Non-Performing Assets / Total Assets (%)	0.64	0.74	0.69
ACL / Non-Performing Loans (%)	159.12	123.10	143.84
ACL / Loans Receivable (%)	1.25	1.12	1.20
Tangible BVPS ($)	$29.30	$29.48	$29.55
Tangible BVPS (Adj. AOCL, $)	$42.36	$42.94	$43.02
TCE / Total Assets (%)	6.09	6.17	6.26

Results vs S&P Global Consensus (Q1 2025) Values retrieved from S&P Global.

Metric	Q1 2025 Actual	Q1 2025 Consensus	Surprise
Primary EPS (S&P “Primary EPS”)	0.098	0.095	+0.003 (+3%) — bold beat
Revenue ($USD Millions)	15.09	16.25	-1.16 (-7%) — bold miss

Note: Company-reported GAAP diluted EPS was $0.11 ; S&P “Primary EPS” may reflect normalization differences.

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Dividend per common share ($)	Q2 2025 payable May 12	$0.12 (recent quarters)	$0.12 declared Apr 9, 2025	Maintained
Revenue/EPS guidance	FY/Q2 2025	None provided	None provided	N/A
Margin/OpEx guidance	FY/Q2 2025	Directional (stable to improving margin)	Directional: margin expanding; focus on operating efficiency	Narrative reiteration

Earnings Call Themes & Trends

No earnings call transcript was available in our document archive for Q1 2025; Finward primarily issued the press release. Themes are derived from press releases.

Topic	Previous Mentions (Q3 2024, Q4 2024)	Current Period (Q1 2025)	Trend
Net Interest Margin trajectory	Stable NIM; prepared for Fed easing; minimal late-Q3 cut benefit	NIM expanded on lower deposit/borrowing costs after late-2024 Fed cuts	Improving
Credit/Asset Quality	Vigilant on credit; NPLs rose in Q3; charge-offs in Q4	NPLs improved QoQ; net charge-offs dropped materially; ACL coverage higher	Improving
Capital	Built capital through 2024; tier 1 leverage up	Tier 1 leverage 8.48%; TCE/TA up; TBVPS up	Stable to improving
Liquidity/Deposits	Exited BTFP; strong liquidity; core deposits steady	Available liquidity $697M; core deposits $1.2B; NIB deposits up QoQ	Stable
AOCL/Investment Securities	AOCL improved in Q3; worsened in Q4 with rates	AOCL flat/slightly up ($58.2M vs $58.1M)	Stable
Operating Efficiency	Expenses stable to modest pressure	Efficiency ratio worsened (93.11%); seasonal/timing impacts	Mixed

Management Commentary

“Margin continued to expand in the first quarter as deposits repriced lower… Non-performing loans improved in the first quarter… Seasonal and timing factors impacted operating expense and non-interest income, and we see opportunity in both areas as the year moves forward.” — Benjamin Bochnowski, CEO .
Q4 2024 context: “We improved regulatory capital… net interest margin improved throughout 2024… [and] had the benefit of one-time income including… a gain on a long-held tax credit investment.” — CEO .

Q&A Highlights

No Q1 2025 conference call transcript was published; thus, no Q&A highlights are available in our source set.

Estimates Context

S&P Global consensus for Q1 2025: EPS 0.095 on 2 estimates; revenue $16.25M on 2 estimates. S&P “Primary EPS” actual 0.098 and revenue actual $15.09M indicate a modest EPS beat and revenue miss. Values retrieved from S&P Global.
Company GAAP diluted EPS was $0.11 and reported total revenue $15.54M, reflecting definitional differences vs S&P’s normalized “Primary EPS” and revenue constructs .
Forward estimate adjustments likely center on continued NIM improvement vs efficiency ratio pressure; improving credit metrics may temper provisioning assumptions.

Key Takeaways for Investors

Margin expansion is the core driver: GAAP NIM rose to 2.81% (tax-equivalent 2.95%) on lower funding costs, a trend that can persist if deposit repricing continues and rate environment remains benign .
Credit normalization accelerates: net charge-offs collapsed to $32.7K and NPL ratios improved, lifting ACL coverage to ~144% — a supportive backdrop for earnings durability .
Earnings volatility normalized post one-time items: Q1 lacks Q4’s tax-credit gain; watch noninterest income cadence through the year .
Efficiency remains a focus: ratio at 93.11% highlights need for expense discipline; management targets operating efficiencies and third-party cost reduction .
Capital/liquidity are strong: available liquidity $697M; TCE and TBVPS modestly higher; AOCL stable — supports balance sheet resilience .
Dividend maintained at $0.12/share (payable May 12), signaling confidence within regulatory parameters and capital stance .
Near-term trading lens: positive momentum around margin and credit could offset seasonal expense noise; monitor deposit mix, AOCL sensitivity, and operating efficiency improvements as catalysts .

Sources: Q1 2025 8-K and press release ; press release ; Dividend press release ; Q4 2024 8-K ; Q3 2024 8-K . S&P Global consensus and actuals: Values retrieved from S&P Global.

Finward Bancorp (FNWD)·Q1 2025 Earnings Summary