1. FNWD's agreement with regulators is terminated due to BSA compliance improvements. 2. The termination reflects enhanced anti-money laundering compliance at Peoples Bank. 3. CEO Benjamin J. Bochnowski highlighted the team's dedication to compliance. 4. Finward Bancorp's commitment to sound banking practices strengthens its position. 5. The resolution improves FNWD's regulatory standing, potentially attracting more investors.
The termination of the Consent Order indicates improved compliance and operational stability, which can lead to increased investor confidence. Historically, stock prices often rise when companies resolve compliance issues favorably, as seen with other banks in similar situations.
The termination of the Consent Order is a significant development that removes regulatory burdens and enhances FNWD's credibility, leading to potential intrinsic value growth.
Investors typically react quickly to positive regulatory news. Similar cases have shown stock price increases shortly after compliance resolutions, as seen in other financial institutions.
Finward Bancorp (NASDAQ:FNWD) (the "Bancorp"), the holding company for Peoples Bank (the "Bank"), today announced that on August 6, 2025 the Federal Deposit Insurance Corporation ("FDIC") and the Indiana Department of Financial Institutions ("DFI") terminated the Consent Order issued to the Bank that was effective on November 7, 2023 relating to the Bank's compliance with the Bank Secrecy Act and its implementing regulations (collectively, the "BSA"). The termination of the Consent Order follows the Bank's successful resolution of the deficiencies in the Bank's BSA compliance and anti-money laundering compliance program, which was the subject of the Consent Order.
"We are very pleased to announce the termination of the Consent Order and the successful resolution of this matter. We want to convey our sincere appreciation and thanks to our board of directors, management team, and staff who worked tirelessly to achieve the requirements of the Consent Order, satisfy our regulators' concerns, and strengthen the BSA/AML compliance program of Peoples Bank," said Benjamin J. Bochnowski, President and Chief Executive Officer of the Bancorp. "As a company, we are proud of the hard work and dedication our team has shown throughout this process. The termination of the Consent Order reflects our ongoing commitment to strong compliance, sound banking practices, and serving our customers with integrity. We also want to thank the regulatory and supervisory staff at the FDIC and DFI for their diligent efforts and oversight as we enhanced the Bank's BSA/AML compliance program."
About Finward Bancorp
Finward Bancorp is a locally managed and independent financial holding company headquartered in Munster, Indiana, whose activities are primarily limited to holding the stock of Peoples Bank. Peoples Bank provides a wide range of personal, business, electronic and wealth management financial services from its 26 locations in Lake and Porter Counties in Northwest Indiana and Chicagoland. Finward Bancorp's common stock is quoted on The NASDAQ Stock Market, LLC under the symbol FNWD. The website ibankpeoples.com provides information on Peoples Bank's products and services, and Finward Bancorp's investor relations.
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