Finward Bancorp(FNWD) - 2021 Q1 - Quarterly Report

Financial Performance - Net income for the three months ended March 31, 2021, was $4.7 million, resulting in earnings per common share of $1.35 [103]. - Return on average assets improved to 1.22% for Q1 2021, compared to 0.97% in Q1 2020 [158]. - Return on average equity increased to 12.30% in Q1 2021, up from 9.38% in Q1 2020 [158]. - Total noninterest income grew by 21.6% to $4,313 thousand in Q1 2021, compared to $3,546 thousand in Q1 2020 [161]. - Gain on sale of loans held-for-sale increased by 77.7% to $2,049 thousand, driven by high demand in the current economic environment [161]. - Income tax expenses for Q1 2021 totaled $764 thousand, reflecting a 49.2% increase from $512 thousand in Q1 2020 [164]. - The efficiency ratio improved to 63.2% in Q1 2021, down from 70.3% in Q1 2020, indicating better cost management [163]. Asset and Loan Growth - As of March 31, 2021, NorthWest Indiana Bancorp had total assets of $1.6 billion, total loans receivable of $974.1 million, and total deposits of $1.4 billion [103]. - Total assets increased to $1,536,835 thousand as of March 31, 2021, compared to $1,322,428 thousand a year earlier, representing a growth of 16.2% [158]. - Total loans amounted to $974.054 million as of March 31, 2021, compared to $966.578 million at December 31, 2020, indicating a rise of 0.5% [132]. - Net loans receivable rose to $961.0 million, up from $954.1 million at December 31, 2020, reflecting a focus on quality loan growth and product diversification [118]. - The Bancorp originated $49.1 million in new fixed-rate mortgage loans for sale during the three months ended March 31, 2021, compared to $24.9 million in the same period of 2020 [120]. Loan Portfolio and Credit Quality - Nonperforming loans decreased to $12.9 million (1.32% of total loans) as of March 31, 2021, down from $14.4 million (1.49% of total loans) at December 31, 2020 [122]. - Special mention loans increased to $26.9 million as of March 31, 2021, compared to $22.7 million at December 31, 2020, due to new commercial real estate customers [124]. - The allowance for loan losses (ALL) increased to $13.047 million as of March 31, 2021, from $12.458 million at December 31, 2020, representing a growth of 4.7% [132]. - The Bancorp's provision for loan losses for the three months ended March 31, 2021, totaled $578 thousand, compared to $514 thousand for the same period in 2020, reflecting an increase of 12.5% [130]. - The total amount of loans classified as troubled debt restructured decreased to $1.983 million as of March 31, 2021, from $2.121 million at December 31, 2020 [127]. Capital and Equity - The Bancorp's stockholders' equity totaled $150.1 million, or 9.64% of total assets, with a book value per share of $43.16 [103]. - The Bancorp's Common Equity Tier 1 Capital ratio was 13.4% as of March 31, 2021, exceeding the minimum required ratio of 4.5% [150]. - The Total Capital ratio was 14.6% as of March 31, 2021, above the minimum required ratio of 8.0% [150]. - The Bancorp's Tier 1 Capital to adjusted average assets ratio was 8.5% as of March 31, 2021, exceeding the minimum required ratio of 4.0% [150]. - The Bancorp's stockholders' equity decreased by $2.8 million (1.8%) during the three months ended March 31, 2021 [144]. Deposits and Cash Management - Total deposits rose to $1.366694 billion, an increase of $64.355 million (4.9%) from $1.302339 billion at December 31, 2020 [137]. - Cash and cash equivalents increased by $48.1 million for the three months ended March 31, 2021, compared to a decrease of $5.1 million for the same period in 2020 [141]. - The Bancorp's net cash provided from financing activities totaled $59.3 million during the current period, compared to $7.7 million for the three months ended March 31, 2020 [141]. Paycheck Protection Program (PPP) Participation - The Bancorp approved 782 applications totaling $91.5 million under the first round of the Paycheck Protection Program (PPP), helping retain 10,758 employees [112]. - In the second round of the PPP, the Bancorp approved 350 applications totaling $34.6 million, with an average loan size of approximately $98,989, aiding 4,080 employees [115]. - As of March 31, 2021, the Bancorp had remaining loan balances under the PPP totaling $66.3 million [115]. Operational Adjustments - The company has implemented remote working policies for 54% of its workforce to support social distancing measures during the pandemic [114]. - The Bancorp's loan portfolio is well-positioned to withstand the effects of the COVID-19 pandemic, with management confident in addressing customer needs [118].