Finward Bancorp · NASDAQ:FNWD
Finward Bancorp — Q2 2026 Earnings Presentation
37 slides from Finward Bancorp's earnings presentation, Jul 21, 2026
Slide 1: Earnings presentation and agreement to acquire Finward Bancorp, Second Quarter 2026
earnings presentation and agreement to acquire Finward Bancorp • Second Quarter 2026 Exhibit 99.2
Slide 2: Forward looking statements disclosure
forward looking statements disclosure 2 Certain statements in this presentation constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Rule 175 promulgated thereunder, and Section
Slide 3: Forward looking statements disclosure: transaction risks
forward looking statements disclosure 3 Risks, uncertainties and assumptions regarding the proposed transaction • the occurrence of any event, change or other circumstances that could give rise to the right of one or both of the parties to terminate the merger agreement; • the failure to obtain nece
Slide 4: Non-GAAP Financial Measures
forward looking statements disclosure 4 Non-GAAP Financial Measures This presentation contains certain financial information determined by methods other than in accordance with accounting principles generally accepted in the United States (GAAP). Such non-GAAP financial information should be conside
Slide 5: 2Q 2026 results
2Q 2026 results 143rd Consecutive Quarter of Profitability 5 • EOP assets decreased $340.1 million compared to the linked quarter to $22.4 billion • EOP loans increased $240.1 million compared to the linked quarter to $13.7 billion; 7.1% on an annualized basis • Average deposits increased $41.2 mill
Slide 6: 2Q 2026 highlights
2Q 2026 highlights • Strong adjusted1 quarterly earnings driven by robust net interest margin • Adjusted1 earnings per share – $0.80; highest in Company history • Adjusted1 return on assets – 1.50% • Adjusted1 pre-tax, pre-provision return on assets – 2.03% • Adjusted1 return on average tangible com
Slide 7: Noninterest income and expense highlights
• Noninterest income of $73.8 million; $71.9 million as adjusted1 • Adjustments include $0.3 million loss on securities and $2.2 million of acquisition-related adjustments • Leasing business income continues strong performance with a 5.3% increase from first quarter to $22.8 million • Other noninter
Slide 8: Acquisition update – Westfield and BFIN
acquisition update – Westfield and BFIN 8 Successful conversion of BankFinancial in June High retention of clients and key associates On track to achieve financial targets, cost savings and EPS contribution Cost savings fully implemented as of June 30th for Westfield BankFinancial cost savings will
Slide 9: Adjusted net income
adjusted net income1 9 1 Non-GAAP financial measure which management believes facilitates a better understanding of the Company’s financial condition. See Appendix for Non-GAAP reconciliations. All dollars shown in thousands, except per share amounts The table below lists certain adjustments that th
Slide 10: Profitability
profitability 10 Return on Average Assets Return on Avg Tangible Common Equity Diluted EPS 1 Non-GAAP financial measure which management believes facilitates a better understanding of the Company’s financial condition. See Appendix for Non-GAAP reconciliation. Adjusted1 Pre-tax, Pre-Provision Earnin
Slide 11: Net interest income & margin
net interest income & margin 11 2Q26 NIM (FTE) Progression All dollars shown in millions 1 1 1 Non-GAAP financial measure which management believes facilitates a better understanding of the Company’s financial condition. See Appendix for Non-GAAP reconciliation. 1 1 1Q26 3.99% Asset yields/mix -0.02
Slide 12: Average balance sheet
average balance sheet 12 All dollars shown in millions 1 Includes loans fees and loan accretion $4,769 $5,080 $3,989 $3,479 $3,552 4.42% 4.45% 4.31% 4.31% 4.44% 2Q25 3Q25 4Q25 1Q26 2Q26 Investment Securities Investment Securities Yield Average Securities $12,812 $14,028 $13,619 $11,793 $11,806 6.45%
Slide 13: Borrowing capacity & cash/investment liquidity
13 Borrowing Capacity • Interest-bearing deposits with other banks of $579 million • Investment securities portfolio: • 99.0% of investment portfolio classified as available-for-sale • $765.3 million of expected cash flow from securities portfolio in next 12 months • $410.1 million of floating rate
Slide 14: Loan portfolio
loan portfolio 14 Loan LOB Mix (EOP) Net Loan Change-LOB (Linked Quarter) All dollars shown in millions Total growth/(decline): $240.1 million ICRE $3,803 28% Commercial & Small Business Banking $3,966 29% Oak Street $1,172 8% Summit $1,226 9% Agile $377 3% Consumer $1,265 9% Mortgage $1,926 14% Tot
Slide 15: Loan concentrations
loan concentrations 15 C&I and Owner Occupied CRE Loans by Sector1 Investor CRE Loans by Property Type All dollars shown in millions 1 Excludes Agile Premium Finance • CRE balances approximately 180% of risk-based capital NAICS Sector 6/30/26 % of Total Loans Finance and Insurance $1,330.4 9.7% Manu
Slide 16: Area of focus – NDFI exposure
area of focus – NDFI exposure 16 All dollars shown in millions NDFI Private Credit Exposure • Direct Exposure • $120.7 million outstanding • Primarily subscription lines to well-established funds that are either an institutional investor or publicly traded • $210.0 million committed • Loans to NDFI
Slide 17: Deposits
deposits 17 Deposit Product Mix (Avg) 2Q26 Average Deposit Progression All dollars shown in millions Total growth/(decline): $41.2 million $18.8 $93.9 -$0.4 -$57.8 -$47.9 -$127.4 $162.0 Noninterest-bearing Interest-bearing demand Savings Money Market Retail CDs Brokered Deposits Public Funds Noninte
Slide 18: Average deposit trends
average deposit trends 18 All dollars shown in millions Average Deposit Balances Uninsured Deposits Uninsured deposits (per call report instructions) 7,455 $ Less: Public funds 2,057 Less: Intercompany deposits 543 Adjusted uninsured deposits 4,855 Borrowing capacity 6,288 Borrowing capacity in exce
Slide 19: Noninterest income
noninterest income 19 Noninterest Income 1 Non-GAAP financial measure which management believes facilitates a better understanding of the Company’s financial condition. See Appendix for Non-GAAP reconciliations. 2Q26 Highlights • Adjustments include a $0.3 million loss on securities and $2.2 million
Slide 20: Noninterest expense
noninterest expense 20 Noninterest Expense 2Q26 Highlights 1 Non-GAAP financial measure which management believes facilitates a better understanding of the Company' Company’s financial condition. See Appendix for Non-GAAP reconciliations. All dollars shown in millions • Adjusted1 noninterest expense
Slide 21: Allowance for credit losses
allowance for credit losses 21 2Q26 Highlights All dollars shown in millions • $208.2 million combined ACL; $8.2 million combined provision expense • $189.9 million ACL – loans and leases • ACL 1.38% of total loans; 2 bp increase from first quarter • Utilized Moody’s June baseline forecast in quanti
Slide 22: Asset quality
asset quality 22 Classified Assets / Total Assets 1 Provision includes both loans & leases and unfunded commitments All dollars shown in millions Nonperforming Assets / Total Assets Net Charge Offs & Provision Expense1 $96.3 $102.0 $100.8 $77.1 $76.1 0.43% 0.44% 0.48% 0.41% 0.41% 2Q25 3Q25 4Q25 1Q26
Slide 23: Capital
capital 23 Tangible Common Equity Ratio 6/30 Risk Weighted Assets = $16,456,311 All capital numbers are considered preliminary. 1 Non-GAAP financial measure which management believes facilitates a better understanding of the Company’s financial condition. See Appendix for Non-GAAP reconciliation. Ad
Slide 24: Capital strategy
capital strategy 24 Tangible Book Value Per Share Strategy & Deployment • 3.0% annualized dividend yield as of June 30th • 34% of 2Q26 earnings returned to shareholders through common dividend • Most recent internal stress testing indicates capital ratios above regulatory minimums in all modeled sce
Slide 25: Outlook commentary
outlook commentary 1 • Loan balances expected to increase mid single digits on an annualized basis • Core deposit balances expected to increase low single digits 25 • Total noninterest expense expected to be $149 - 152 million • Incentive expense will fluctuate with fee income Noninterest Expense Ne
Slide 26: Strategic expansion in Chicago & Northwest Indiana with Finward acquisition
1 strategic expansion in Chicago & Northwest Indiana with Finward acquisition July 21, 2026
Slide 27: Transaction highlights
5.0% Earnings per Share accretion De minimis TBV dilution Capitalized value of synergies represents 76% of deal value Enhances key profitability metrics, including 90bps improvement in Efficiency Ratio and 100bps increase in ROTCE Acquisition of a low cost, granular core deposit franchise with $2.0B
Slide 28: Overview of Finward
28 overview of Finward Key Franchise Highlights Financial Summary Loan & Deposit Composition Total Assets $2.0Bn Total Deposits $1.7Bn Assets Under Management $412MM Headquarters Munster, Indiana Chief Executive Officer Ben Bochnowski Year Founded 1910 Branches 24 Retail Locations Ticker FNWD (NASDA
Slide 29: Increases Chicago deposits to $4.1Bn
Increases Chicago Deposits to $4.1Bn 29 complementary Chicago & Northwest Indiana presence 1 Per FDIC deposit information Source: S&P Capital IQ Pro, Moody’s, World Business Chicago Joliet Evanston Skokie Hoffman Estates Naperville Bolingbrook Tinley Park Gary Wheaton Chicago Milwaukee INDIANA India
Slide 30: Summary of expected financial impacts
30 summary of expected financial impacts Key Items Pro Forma Financial Impacts Earnings per Share(1) (Fully Phased-In) 5.0% TBV(1) per Share at Closing (0.4)% TBV 0.6 Years (1) Earnback (Crossover Method) Capitalized Value of Synergies / Deal Value 76% Internal Rate of Return 21% CET1 Ratio Impact a
Slide 31: Transaction terms
31 transaction terms Consideration & Deal Value Transaction Multiples Closing & Other • Consideration Mix – 100% FFBC common stock • Exchange Ratio – Fixed exchange ratio of 1.35x ‒ Approximately 5.9 million shares issued to Finward in transaction • Transaction Value – $210 million deal value, or $4
Slide 32: Key transaction assumptions
32 key transaction assumptions Key Merger Assumptions • Cost Savings – Approximately 40% of Finward’s annual noninterest expense ‒ 50% phase-in during 2027 and 100% in 2028 and thereafter • One-Time Merger Expenses – $36 million pre-tax ‒ Fully reflected in pro forma impacts at closing for illustrat
Slide 33: Key takeaways
33 key takeaways Strong strategic and cultural alignment supports low execution risk Enhances Chicago banking franchise for continued growth in the market Strategically expands presence in economically robust Chicago and Northwest Indiana market with strong core deposit franchise Financially attract
Slide 34: Appendix: non-GAAP to GAAP reconciliation
appendix: non-GAAP to GAAP reconciliation 34 All dollars shown in thousands Net interest income and net interest margin - fully tax equivalent June 30, Mar. 31, Dec. 31, Sep. 30, June 30, 2026 2026 2025 2025 2025 Net interest income 190,377 $ 189,610 $ 173,995 $ 160,486 $ 158,269 $ Tax equivalent ad
Slide 35: Appendix: non-GAAP to GAAP reconciliation
appendix: non-GAAP to GAAP reconciliation 35 All dollars shown in thousands Additional non-GAAP ratios June 30, Mar. 31, Dec. 31, Sep. 30, June 30, (Dollars in thousands, except per share data) 2026 2026 2025 2025 2025 Net income (a) 76,456 $ 74,445 $ 62,393 $ 71,923 $ 69,996 $ Average total shareho
Slide 36: Appendix: non-GAAP to GAAP reconciliation
appendix: non-GAAP to GAAP reconciliation 36 All dollars shown in thousands Additional non-GAAP measures 4Q25 3Q25 As Reported Adjusted As Reported Adjusted As Reported Adjusted As Reported Adjusted Net interest income (f) 190,377 $ 190,377 $ 189,610 $ 189,610 $ 173,995 $ 173,995 $ 160,486 $ 160,486
Slide 37: First Financial Bancorp
37 First Financial Bancorp First Financial Center 255 East Fifth Street Cincinnati, OH 45202