Munster-based Finward Bancorp (Nasdaq: FNWD), the parent of Peoples Bank, is reporting second quarter net income of $6.6 million, compared to $8.1 million during the same period last year. Despite the drop, Chief Executive Officer Benjamin Bochnowski says the bank improved its core net income and net interest margin during the second quarter.
Finward says increases in mortgage rates have dampened demand and slowed the sale of fixed rate mortgage loans into the secondary market resulting in decreased sale of loan figures.
“Changes in consumer demands for fixed rate mortgages has slowed our ability to generate gains from the sales of loans; however, we continue to grow our residential real estate loan portfolio,” said Bochnowski. “Cashflows from our securities portfolio, along with securities sales in a volatile market and growth in core deposits, have supported strong commercial loan growth with commercial real estate loans increasing by 12.6% year-to-date. We are actively managing our expense base to achieve greater economies of scale, and continue to perform at levels that generate capital and allow for the ongoing investments in the digital transformation process for Peoples Bank and Finward Bancorp.”
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