Finward Bancorp · NASDAQ:FNWD
Finward Bancorp — Q1 2023 Earnings Presentation
14 slides from Finward Bancorp's earnings presentation, May 5, 2023
Slide 1: Finward Bancorp
Finward Bancorp > FINWARD BANCORP A NASDAQ Traded Company — Symbol FNWD BANCORP May 5, 2023,
Slide 2: Important Information
Important Information Forward-Looking Statements ‘This presentation may contain forward-looking statements regarding the financial performance, business prospects, growth and operating strategies of Finward Bancorp (-FNWD"). For these statements, FNWD claims the protections ofthe safe harbor for for
Slide 3: Overview of Finward Bancorp
May 5, 2023 Overview of Finward Bancorp = 13-year-old bank headquartered in Munster, Indiana Community bank with meaningful presence in the Chicago city market and Chicagoland suburban market ), Integrity, Committed to our core values of Stabi Community and Excellence Expanded into Illinois via thre
Slide 4: Net Interest Margin
Net Interest Margin Net Interest Margin ($ Millions) 280% ee 37K 373% i 3173 3175 5168 $155 3147 ai22 0222 03.22 04.22 123 Interest Income ($ Millions) {MN Tota Interest income a se = — a oe a (1) Tax acjusted (a non-GAAP measure, see in the appendix of this May 5, 2023 Margin Compression ‘= The net
Slide 5: Funding
Funding Total Interest-Bearing Liabilities ($ millions) Total deposits mBorrowings and repurchase agreements 578 136 122 0222 03.22 08.22 Cost of Interest-Bearing Liabilities (most of repurchase agreements cost of borrowed funds Wcortof deposits laoox % 039% 1.10% Josex a ons | 039% a aia or Sa >> F
Slide 6: Securities
May 5, 2023 Securities Total AFS Securities ($ million: Q1-22 AFS Securities Q1-23 AFS Securities FS, UST.00% usage 18% 025 ses on the Sec 15, GE, ust.03% _ usagency,20% BIAS Adjustment mSecurtes Market Value saz 5459 $1403) 12 Unrealized Lo: rities Portfolio = Accumulated other comprehensive losses
Slide 7: Loans
May 5, 2023 Loans Total Loans ($ millions) Q1-22 Total Loans Q1-23 Total Loans 509 $1516 $1469 tact se $1433 ann a2 on ez avs Yield on Loans Organic Loan Growth Gain on Sale of Loans = The Bancorp's loan portfolio * Increases in mortgage rates totaled $1.52 billion on have dampened demand a tom Marc
Slide 8: Asset Quality
May 5, 2023 Asset Quality The Bancorp implemented the Current Expected Credit Losses (““CECL") accounting method beginning with the first quarter of 2023 At implementation, an entry of $5.7 million was made increasing the allowance for credit loss by $5.1 million CECL Impact and unfunded commitment
Slide 9: Focused Expense Management
May 5, 2023 Focused Expense Management Total Branches Remaining Non-Interest Expense and Efficiency Ratio (MMM Tots noninterestenpense Efficiency ratio MPNIE /avg assets 97.10% asx 74546 769% 82.35% 333% 2% 230% 3.07% 279% $163 5156 3152 150 [| fz UJ [| a 0222 0322 ar 03.22 123 Average Assets to FTE
Slide 10: Capital Levels
May 5, 2023 Capital Levels Tangible Book Value per Diluted Share” Tier 1 Bank Capital a) ( mAdjusted fr Aoct jss00 25.2 526.7 i TL i 222 03.22 222 0322 Tangible Common Equity to Total es Capital Adequacy eu = As of March 31, 2023, the Bank’s tier 1 capital to adjusted a sted for aoa balls average as
Slide 11: Franchise Highlights
Franchise Highlights (v} Experienced and Invested Leadership = Dynamic team with significant experience in Chicago area markets ‘Interests aligned with shareholders through substantial ownership (v) Meaningful Presence in Diverse, Dynamic Markets * Benefiting from Chicago's demographics and Indiana'
Slide 12: Thank You
THANK YOU BANCORP
Slide 13: Appendix
APPENDIX BANCORP
Slide 14: Non-GAAP Reconciliation
Non-GAAP Reconciliation May 5, 2023, ‘inmsto Tach SL RES December ST BU September 30,2002 ne OED wae 97, ‘aleulaton oTangte common eau Teal eco ety s re aut 235) was) e255) ais) ans er angen 4.0 a7, 18) (5:06) 00 (Tang conmenegaty z Teas ee no $e Sees Catton ctangie common ety autor acme oer enpeent