Finward Bancorp (FNWD) investor relations material

Executive summary

• Total assets reached $2.04 billion at June 30, 2026, with net loans of $1.5 billion and deposits of $1.7 billion.

• Net income for Q2 2026 was $2.1 million ($0.48 per diluted share); six-month net income was $4.3 million ($1.00 per diluted share).

• ROA for Q2 2026 was 0.42% and ROE was 4.74%; six-month ROA was 0.43% and ROE was 4.87%.

• Announced merger with First Financial Bancorp, valued at approximately $208 million, with a fixed exchange ratio of 1.35 shares of First Financial for each share, expected to close in Q4 2026.

• Results reflect solid loan growth, stable deposit funding, and continued organizational momentum despite merger-related expenses and a branch closure.

Financial highlights

• Net interest income for Q2 2026 increased 8.9% year-over-year to $15.2 million; net interest margin (tax-equivalent) rose to 3.37%.

• Non-interest income for Q2 2026 decreased 10.6% year-over-year, mainly due to a $180,000 loss on branch closure.

• Non-interest expense for Q2 2026 rose 0.5% year-over-year, driven by higher compensation and benefits.

• For the six months ended June 30, 2026, net interest income was $30.3 million (up 11.0% year-over-year); net interest margin (tax-equivalent) was 3.36%.

• Efficiency ratio was 84.52%, slightly up from 84.45% in the prior quarter.

Outlook and guidance

• The merger with First Financial Bancorp is expected to close in Q4 2026, subject to regulatory and shareholder approvals.

• Management expects sufficient liquidity and capital to meet operational and strategic needs over the next twelve months.

• Near-term priorities include serving customers, maintaining strong credit quality, and preparing for the merger.

• Forward-looking statements highlight risks from interest rates, asset quality, regulatory changes, and integration of mergers.