Executive Summary

EPS of $0.81 beat S&P Global consensus of $0.40 by $0.41 on stronger net interest margin and lower operating costs; revenue of $17.66M was modestly below $17.80M consensus, while company-defined total revenue was $17.36M in Q3 (+4.4% q/q; +16.7% y/y) . EPS and revenue estimates from S&P Global marked with an asterisk below.*
Net interest margin expanded to 3.04% (3.18% tax-equivalent) from 2.97% (3.11% TE) in Q2, reflecting higher loan yields and selective payoffs of lower-yielding loans; efficiency ratio improved to 81.22% from 88.92% .
Credit remained stable with NPLs at 0.94% of loans (up 3 bps q/q); ACL coverage of loans held at 1.22% and coverage of NPLs at 129% .
Capital and tangible book value strengthened on AOCI improvement: TBV/share rose to $32.77 ($44.16 ex-AOCL) and tier 1 leverage ratio increased to 8.77% .
Regulatory backdrop improved with the August termination of the BSA/AML Consent Order; however, the Bank remains under an MOU requiring regulatory approval for cash dividends (a $0.12 dividend was declared on Aug 15 for payment on Sep 12) .

What Went Well and What Went Wrong

What Went Well

Margin expansion and operating efficiency: NIM rose to 3.04% (3.18% TE) from 2.97% (3.11% TE) q/q; efficiency ratio improved to 81.22% from 88.92% driven by lower data processing, professional services, and FDIC premiums .
Balance sheet and capital: TBV/share increased to $32.77 (from $30.16) and TBV ex-AOCL to $44.16 (from $43.47); tier 1 leverage ratio ticked up to 8.77% .
CEO tone constructive: “We continued to build momentum… Margin expansion and stable credit contributed to further overall profitability gains… The recent rate cut by the Federal Reserve, coupled with our strengthened capital and liquidity position, provides a solid foundation for growth…” .

What Went Wrong

Slight uptick in non-performing loans: NPLs rose to $13.9M (0.94% of loans) from $13.5M (0.91%) in Q2; net loan charge-offs were 0.07% vs net recoveries of (0.11%) in Q2 .
Loan balances edged down: Loans receivable net declined to $1.474B from $1.484B q/q, despite higher commercial originations ($62.6M vs $46.1M in Q2) due to paydowns/payoffs .
Revenue vs S&P consensus: Revenue of $17.66M* was slightly below the $17.80M* consensus, despite company “total revenue” rising to $17.36M .*

Financial Results

Headline metrics vs prior periods

Metric	Q3 2024	Q2 2025	Q3 2025
Diluted EPS ($)	$0.14	$0.50	$0.81
Total Revenue (Company, $M)	$14.87	$16.63	$17.36
Net Interest Income ($M)	$12.01	$13.95	$14.44
Non-Interest Income ($M)	$2.87	$2.68	$2.91
Net Interest Margin (GAAP, %)	2.53%	2.97%	3.04%
NIM (Tax-Equivalent, %)	2.66%	3.11%	3.18%
Efficiency Ratio (%)	97.32%	88.92%	81.22%

Q3 2025 actuals vs S&P Global consensus

Metric	Estimate	Actual	Surprise
EPS (Primary, $)	$0.40*	$0.81*	+$0.41, +102%*
Revenue ($M)	$17.80*	$17.66*	-$0.14, -0.8%*
Values retrieved from S&P Global.*

Balance sheet and credit KPIs

KPI	Q3 2024	Q2 2025	Q3 2025
Total Deposits ($M)	$1,748.81	$1,754.85	$1,750.65
Non-interest-bearing Deposits ($M)	$285.16	$271.17	$280.30
Core Deposits (% of total)	—	69.1%	69.3%
Borrowings + Repos ($M)	$128.0	$113.3	$103.4
Loans Receivable, net ($M)	$1,489.73	$1,489.49	$1,473.77
Commercial Loan Originations ($M)	—	$46.1	$62.6
NPLs / Loans (%)	0.92%	0.91%	0.94%
ACL / Loans (%)	1.23%	1.22%	1.22%
ACL / NPLs (%)	134.12%	133.01%	129.41%
Net charge-offs (recoveries) % of avg loans	0.05%	(0.11%)	0.07%
TBV/share ($)	$31.28	$30.16	$32.77
TBV/share ex-AOCL ($)	$42.47	$43.47	$44.16
Tier 1 Leverage Ratio (%)	—	8.69%	8.77%

Note: Segment breakdown not disclosed; company reports net interest income and non-interest income rather than multi-segment revenues, per consolidated statements .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Quantitative financial guidance	FY/Q4	None provided	None provided	Maintained (no formal guidance)
Dividend per common share	Q3 2025	$0.12 in prior declared quarter	$0.12 declared Aug 15, payable Sep 12	Maintained
Regulatory – BSA/AML Consent Order	Aug 2025	In effect	Terminated Aug 6, 2025	Improved
Regulatory – MOU dividend restriction	Ongoing	In effect (prior approval required for cash dividends)	In effect	Maintained

Earnings Call Themes & Trends

No Q3 2025 earnings call transcript was posted on the company’s IR “Financial Results” page as of Nov 20, 2025; only the earnings release and 10-Q are provided .

Topic	Previous Mentions (Q1 2025, Q2 2025)	Current Period (Q3 2025)	Trend
Net interest margin trajectory	Q1: NIM up on lower deposit/borrowing costs post Fed cuts; Q2: continued expansion above 3% TE	Further expansion to 3.04% GAAP / 3.18% TE on loan repricing and payoffs	Improving
Funding mix/core deposits	Q1: Core deposits 68.9%; Q2: 69.1%	Core deposits 69.3%; NIBD +$9.1M q/q	Stable to slightly positive
Operating efficiency	Q1: Efficiency 93.1%; Q2: 88.9%	81.2% on expense reductions	Improving
Credit quality	Q1: NPLs 0.84%; Q2: 0.91% with net recoveries	NPLs 0.94%, modest uptick; net charge-offs 0.07%	Slightly weaker but contained
Capital/AOCI	Q1/Q2: TBV and TBV ex-AOCL improving	TBV to $32.77; TBV ex-AOCL to $44.16	Improving
Regulatory/legal	Q1/Q2: Under consent order (BSA/AML) and MOU noted in risk factors	Consent Order terminated Aug 6; MOU restrictions still cited	Improved (order), MOU ongoing

Management Commentary

CEO (Benjamin Bochnowski): “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…” .

Q&A Highlights

No public Q3 2025 earnings call transcript was available on the company’s IR site; therefore, no Q&A highlights could be compiled. Reference: IR Financial Results page listing only the earnings release and 10-Q for Q3 2025 .

Estimates Context

EPS: Q3 2025 actual $0.81 vs $0.40 consensus; Q2 2025 actual $0.50 vs $0.26 consensus; Q4 2025 EPS consensus $0.61*.
Revenue: Q3 2025 actual $17.66M vs $17.80M consensus; Q2 2025 actual $16.90M vs $16.95M consensus; Q4 2025 revenue consensus $18.25M*. Estimates based on 2 analysts for both EPS and revenue for these periods.* Values retrieved from S&P Global.*

Key Takeaways for Investors

The EPS beat was driven by continued NIM expansion and better operating efficiency; the small revenue shortfall (on S&P basis) is not thesis-breaking given strong net interest performance and cost control .*
Credit quality remains manageable with only a modest uptick in NPLs; ACL levels and coverage remain stable, and net charge-offs normalized from unusually strong net recoveries in Q2 .
Capital and TBV improved meaningfully with AOCI tailwinds from rate cuts; leverage ratio at 8.77% provides flexibility .
Funding is stable with higher non-interest-bearing balances and steady core deposit mix at ~69%; borrowings and repos declined ~9% q/q, reducing funding costs .
Regulatory risk eased with the August termination of the BSA/AML Consent Order; however, the MOU and associated dividend pre-approval requirement remain in place, a consideration for capital return pacing .
Near-term catalysts: further NIM support from asset repricing, additional operating expense discipline, and any updates on MOU resolution or dividend trajectory could drive sentiment .
Watch items: office CRE exposure within non-owner-occupied CRE ($42.5M, 2.9% of total loans), overall loan growth trajectory (balances down q/q), and non-interest income trends .

Finward Bancorp (FNWD)·Q3 2025 Earnings Summary