FFW CORPORATION

CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2023 and 2022

FFW CORPORATION

Wabash, Indiana

INDEX TO CONSOLIDATED FINANCIAL STATEMENTS

INDEPENDENT AUDITOR'S REPORT

1

CONSOLIDATED BALANCE SHEETS - JUNE 30, 2023 and 2022

3

CONSOLIDATED STATEMENTS OF INCOME

YEARS ENDED JUNE 30, 2023 and 2022

4

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

YEARS ENDED JUNE 30, 2023 and 2022

5

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY

YEARS ENDED JUNE 30, 2023 and 2022

6

CONSOLIDATED STATEMENTS OF CASH FLOWS

YEARS ENDED JUNE 30, 2023 and 2022

7

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

8

Crowe LLP

Independent Member Crowe Global

INDEPENDENT AUDITOR'S REPORT

Board of Directors and Shareholders

FFW Corporation

Wabash, Indiana

Opinion

We have audited the consolidated financial statements of FFW Corporation, which comprise the consolidated balance sheets as of June 30, 2023 and 2022, and the related consolidated statements of income, comprehensive income (loss), changes in shareholders' equity, and cash flows for the years then ended, and the related notes to the financial statements.

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the financial position of FFW Corporation as of June 30, 2023 and 2022, and the results of its operations and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinion

We conducted our audits in accordance with auditing standards generally accepted in the United States of America (GAAS). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of FFW Corporation and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Responsibilities of Management for the Financial Statements

Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about FFW Corporation's ability to continue as a going concern for one year from the date the consolidated financial statements are available to be issued.

(Continued)

1.

Auditor's Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the consolidated financial statements.

In performing an audit in accordance with GAAS, we:

  • Exercise professional judgment and maintain professional skepticism throughout the audit.
  • Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements.
  • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of FFW Corporation's internal control. Accordingly, no such opinion is expressed.
  • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the consolidated financial statements.
  • Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about FFW Corporation's ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.

Crowe LLP

Indianapolis, Indiana

August 31, 2023

2.

FFW CORPORATION

CONSOLIDATED BALANCE SHEETS

June 30, 2023 and 2022

ASSETS

2023

2022

Cash and due from financial institutions

$

8,686,057

$

7,122,187

Interest-bearing deposits in other financial institutions

4,668,889

48,456,109

Total cash and cash equivalents

13,354,946

55,578,296

Securities available for sale (AFS)

110,063,452

115,717,308

Loans held for sale

80,000

248,000

Loans receivable, net of allowance for loan losses of

$4,852,745 at June 30, 2023 and $4,342,121 at June 30, 2022

390,544,236

335,672,317

Federal Home Loan Bank stock, at cost

1,289,700

1,289,700

Accrued interest receivable

2,648,368

2,105,470

Premises and equipment, net

8,121,511

8,481,385

Mortgage servicing rights

1,128,019

1,138,165

Cash surrender value of life insurance

10,086,476

9,767,792

Goodwill

1,213,898

1,213,898

REO and repossessed assets

109,596

75,025

Other assets

4,604,551

3,630,737

Total assets

$543,244,753

$534,918,093

LIABILITIES AND SHAREHOLDERS' EQUITY

Deposits

Noninterest-bearing

$

53,267,081

$

55,960,708

Interest-bearing

437,700,301

428,550,708

Total deposits

490,967,382

484,511,416

Borrowings

2,100,000

-

Accrued expenses and other liabilities

3,792,808

3,758,195

Total liabilities

496,860,190

488,269,611

Shareholders' equity

Common stock, $.01 par; 2,000,000 shares authorized;

Issued: 1,836,328; outstanding: 1,126,357 - June 30, 2023

and 1,140,305 - June 30, 2022

18,363

18,363

Additional paid-in capital

10,150,145

9,940,774

Retained earnings

59,406,634

56,384,625

Accumulated other comprehensive income (loss)

(10,588,876)

(7,726,089)

Treasury stock, at cost; 709,971 shares at June 30, 2023

and 696,023 shares at June 30, 2022

(12,601,703)

(11,969,191)

Total shareholders' equity

46,384,563

46,648,482

Total liabilities and shareholders' equity

$543,244,753

$534,918,093

See accompanying notes to consolidated financial statements.

3.

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FFW Corporation published this content on 06 September 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 06 September 2023 18:39:06 UTC.