Executive Summary

Q4 2024 EPS was $0.49, up sharply vs Q3 2024 ($0.14) and vs Q4 2023 ($0.35), with management citing margin expansion and one-time gains (tax credit investment) as drivers . Versus Wall Street, MarketBeat shows consensus EPS of $0.18, implying a significant beat of +$0.31; S&P Global consensus was unavailable at time of request .
Net interest margin improved to 2.65% (tax-adjusted to 2.79%) from 2.53% (2.66% tax-adjusted) in Q3 2024, driven by higher loan yields and lower deposit/borrowing costs following Fed cuts .
Credit costs were elevated: net charge-offs of $2.2M in Q4 and a net negative provision (benefit) of $579K driven by model updates and unused commitment reserve release; NPLs were stable at $13.7M and ACL coverage ratio at 123.1% .
Liquidity and capital remained solid (available liquidity $687M; Tier 1 leverage 8.46%); AOCL increased by $9.8M QoQ, reducing tangible common equity ratios in Q4, though AOCL-adjusted TBV per share rose .

What Went Well and What Went Wrong

What Went Well

Net interest margin expansion: GAAP NIM rose to 2.65% (tax-equivalent 2.79%) vs 2.53% (2.66% tax-equivalent) in Q3, as loan yields improved and funding costs fell with Fed policy easing .
One-time income tailwinds: $1.2M gain on termination of a long-held tax credit investment boosted noninterest income; management also referenced prior sale-leaseback benefits supporting capital and earnings .
Balance sheet and liquidity: deposits increased modestly QoQ and short-term borrowings fell $22.9M; available liquidity reached $687M, underpinning strong funding flexibility .

Management quote: “Net interest margin improved throughout 2024… based on our earning asset position and reduced funding costs driven by recent Federal Reserve interest rate policy.” — CEO Benjamin Bochnowski .

What Went Wrong

Credit costs: net charge-offs of $2.2M in Q4 (primarily a small number of commercial/multifamily loans) and a lower ACL coverage ratio vs Q3 (123.1% vs 134.1%) .
AOCL increased $9.8M QoQ to $58.1M, weighing on reported tangible equity metrics despite AOCL-adjusted improvements .
Noninterest-bearing deposits declined $21.8M QoQ due to typical year-end business outflows, partially offset by total deposit growth; mix shifts can pressure funding costs if persistent .

Financial Results

Headline P&L and Margins (Quarterly)

Metric	Q4 2023	Q3 2024	Q4 2024
Total revenue ($USD Millions)	$15.450	$14.873	$16.339
Net interest income ($USD Millions)	$12.715	$12.006	$12.607
Noninterest income ($USD Millions)	$2.735	$2.867	$3.732
Diluted EPS ($USD)	$0.35	$0.14	$0.49
Net interest margin (GAAP, %)	N/A	2.53%	2.65%
Net interest margin (Tax-adjusted, %)	2.80%	2.67%	2.79%
Net income ($USD Millions)	$1.510	$0.606	$2.102

Trend vs Prior Two Quarters

Metric	Q2 2024	Q3 2024	Q4 2024
Total revenue ($USD Millions)	$14.627	$14.873	$16.339
Diluted EPS ($USD)	$0.03	$0.14	$0.49
Net interest margin (GAAP, %)	2.53%	2.53%	2.65%
Net interest margin (Tax-adjusted, %)	2.67%	2.67%	2.79%

KPIs and Balance Sheet

KPI	Q4 2023	Q3 2024	Q4 2024
Total deposits ($USD Billions)	$1.813	$1.749	$1.800
Noninterest-bearing deposits ($USD Millions)	$295.6	$285.2	$263.3
NPLs ($USD Millions)	$9.608	$13.806	$13.740
NPLs / Total loans (%)	0.66%	0.92%	0.91%
ACL coverage of NPLs (%)	163.9%	134.1%	123.1%
AOCL ($USD Millions)	$51.613	$48.241	$58.084
Tangible book value per share ($USD)	$28.31	$31.28	$29.48
Available liquidity ($USD Millions)	N/A	$686	$687
Borrowings + repos ($USD Millions)	$118.1	$128.0	$105.0

Notes:

Q4 2024 noninterest income includes $1.236M gain from tax credit investment (one-time) .
Q4 2024 net charge-offs were $2.2M; provision for credit losses was net negative $579K (loan provision +$597K; unused commitments reversal −$1.2M) .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Dividend per common share	Q1 2025 declared	$0.12 (ongoing quarterly)	$0.12 payable Feb 3, 2025	Maintained
Net interest margin	2025 narrative	No formal guidance	Management expects continued margin expansion as funding costs reprice lower	Directional positive
Capital ratios	Ongoing	Exceed regulatory requirements	Continued compliance; Tier 1 leverage ~8.46% at 12/31/24	Maintained

Management cautions dividends/share repurchases depend on capital, performance, market conditions, and regulatory considerations; cash dividends require prior regulatory approval under a memorandum of understanding .

Earnings Call Themes & Trends

No transcript was available for Q4 2024; MarketBeat lists a conference call on Jan 28, 2025 at 4:00PM ET, but the transcript could not be retrieved .

Topic	Previous Mentions (Q2 & Q3 2024)	Current Period (Q4 2024)	Trend
Rates/Funding costs	Prepared for Fed easing; margin/expenses stable; exited BTFP early	Margin improved on higher loan yields and lower deposit/borrowing costs	Improving margin trajectory
Credit quality	NPLs rose in Q3; ACL coverage 134%	Net charge-offs $2.2M; coverage 123.1%; vigilant management	Elevated but managed
Liquidity	Available liquidity ~$686M; strong diversified sources	Available liquidity ~$687M; continued strength	Stable/strong
AOCL/Investment portfolio	AOCL improved in Q3 to $48.2M; yield 2.37%	AOCL increased to $58.1M; yield 2.34%; no securities sales	AOCL headwind
Regulatory context	Capital building; exceeding requirements	Tier 1 leverage 8.46%; exceed requirements	Maintained compliance

Management Commentary

“We improved regulatory capital throughout the year through balance sheet management and earnings and had the benefit of one-time income including our sale leaseback transaction early in the year and a gain on a long-held tax credit investment this past quarter.” — CEO Benjamin Bochnowski (Q4 release) .
“Net interest margin improved throughout 2024 as expected… reduced funding costs driven by recent Federal Reserve interest rate policy.” — CEO Benjamin Bochnowski (Q4 release) .
“Margin continued to expand in the first quarter as deposits repriced lower… Non-performing loans improved in the first quarter, and our Provision for Credit Loss was driven by model-related factors.” — CEO Benjamin Bochnowski (Q1 2025 release, for trajectory) .

Q&A Highlights

No Q4 2024 transcript found; unable to extract Q&A themes or tone changes. MarketBeat lists the call time but provides no transcript links for Jan 28, 2025 .

Estimates Context

S&P Global consensus data was unavailable at time of request.
MarketBeat shows Q4 2024 EPS actual $0.49 vs consensus $0.18, a beat of +$0.31; revenue consensus $16.0M, but actual revenue not reported on MarketBeat for banks .
Based on company-reported total revenue of $16.339M, the quarter’s revenue was higher than Q3 and Q4 2023; formal S&P consensus comparison for “revenue” is not determinable from our sources .

Key Takeaways for Investors

Margin expansion is a core driver into 2025 as funding costs reprice; GAAP NIM rose to 2.65% and tax-equivalent NIM to 2.79% in Q4 .
Earnings quality included a one-time $1.2M tax credit investment gain; expect normalization of noninterest income without these benefits .
Credit costs were elevated (net charge-offs $2.2M), but management remains vigilant; watch ACL coverage and NPL trajectories in coming quarters .
AOCL volatility remains a tangible equity headwind; TBV per share dipped QoQ on reported basis, though AOCL-adjusted TBV improved .
Liquidity/capital are strong (available liquidity ~$687M; Tier 1 leverage 8.46%); improving funding mix/borrowings reduction support margin and risk buffers .
Dividend of $0.12 per share maintained; subject to regulatory approval constraints under existing MOU—monitor regulatory updates and capital plans .
Near-term trading: EPS beat vs MarketBeat consensus and margin expansion are positives; medium-term thesis hinges on sustained NIM tailwinds, controlled credit losses, and AOCL moderation with rate path .

Finward Bancorp (FNWD)·Q4 2024 Earnings Summary