FFW Corporation Announces Earnings and Special Dividend
April 26, 2023 at 10:21 am EDT
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WABASH, Ind., April 26, 2023 (GLOBE NEWSWIRE) -- FFW Corporation (the “Corporation”) (OTC PINK: FFWC) (4/25/2023 Close: $42.00), parent corporation of Crossroads Bank (the “Bank”), announced earnings for the quarter and year to date ended March 31, 2023.
For the three months ended March 31, 2023, the Corporation reported net income of $1,216,000 or $1.07 per common share compared to $1,369,000 or $1.20 per common share for the three months ended March 31, 2022. Net interest income for the three months ended March 31, 2023 was $3,975,000 compared to $3,745,000 for the three months ended March 31, 2022. The provision for loan losses was $75,000 for the three months ended March 31, 2023 and March 31, 2022. Total noninterest income was $880,000 for the three months ended March 31, 2023 compared to $1,120,000 for the three months ended March 31, 2022. Noninterest expense was $3,478,000 for the three months ended March 31, 2023 and $3,291,000 for the three months ended March 31, 2022.
For the nine months ended March 31, 2023, the Corporation reported net income of $4,355,000 or $3.84 per common share compared to $4,197,000 or $3.67 per common share for the nine months ended March 31, 2022. Net interest income for the nine months ended March 31, 2023 was $12,599,000 compared to $11,338,000 for the nine months ended March 31, 2022. The Company recognized a provision for loan losses of $475,000 for the nine months ended March 31, 2023 and $205,000 for the nine months ended March 31, 2022. Total noninterest income was $2,975,000 for the nine months ended March 31, 2023 compared to $3,366,000 for the nine months ended March 31, 2022. Noninterest expense was $10,084,000 for the nine months ended March 31, 2023 and $9,718,000 for the nine months ended March 31, 2022.
The three and nine months ended March 31, 2023 represented a return on average common equity of 10.47% and 12.59%, respectively, compared to 10.30% and 10.32% for the three and nine month periods ended March 31, 2022. The three and nine months ended March 31, 2023 represented a return on average assets of 0.93% and 1.09%, respectively, compared to 1.04% and 1.08%, for the three and nine month periods ended March 31, 2022.
The allowance for loan losses as a percentage of gross loans receivable was 1.23% at March 31, 2023 compared to 1.28% at June 30, 2022. Nonperforming assets were $2,183,000 at March 31, 2023 compared to $2,345,000 at June 30, 2022.
The Board of Directors has declared a special cash dividend of $1.25 per share of the Company’s common stock. The dividend is payable May 31, 2023 to shareholders of record on May 17, 2023.
As of March 31, 2023, FFWC’s equity-to-assets ratio was 8.85% compared to 8.72% at June 30, 2022. Total assets at March 31, 2023 were $542,885,000 compared to $534,918,000 at June 30, 2022. Shareholders’ equity was $48,060,000 at March 31, 2023 compared to $46,648,000 at June 30, 2022. Crossroads Bank exceeds all applicable regulatory requirements to be considered “well capitalized.”
Forward Looking Statements
This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include expressions such as “expects,” “intends,” “believes,” and “should,” which are necessarily statements of belief as to the expected outcomes of future events. Actual results could materially differ from those presented. The Corporation's ability to predict future results involves a number of risks and uncertainties. The Corporation undertakes no obligation to release revisions to these forward-looking statements or reflect events or circumstances after the date of this release.
Crossroads Bank is a wholly owned subsidiary of FFW Corporation providing an extensive array of banking services and a wide range of investments and securities products through its main office in Wabash and six Indiana banking centers located in Columbia City, North Manchester, Peru, South Whitley, Syracuse and Warsaw. The Bank also provides leasing services at each of its banking centers. Insurance products are offered through an affiliated company, Insurance 1 Services, Inc. The Corporation’s stock is traded on the OTC Markets under the symbol “FFWC.” Our website address is www.crossroadsbanking.com. Crossroads Bank, Member FDIC.
FFW Corporation Selected Financial Information
Consolidated Balance Sheet
March 31
June 30
2023
2022
Unaudited
Assets
Cash and due from financial institutions
$
6,090,005
$
7,122,187
Interest-bearing deposits in other financial institutions
12,928,912
48,456,109
Cash and cash equivalents
19,018,917
55,578,296
Securities available for sale
112,343,889
115,717,308
Loans held for sale
-
248,000
Loans receivable, net of allowance for loan losses of $4,776,796 at March 31, 2023 and $4,342,121 at June 30, 2022
383,066,522
335,672,317
Federal Home Loan Bank stock, at cost
1,289,700
1,289,700
Accrued interest receivable
2,336,991
2,105,470
Premises and equipment, net
8,219,360
8,481,385
Mortgage servicing rights
1,143,885
1,138,165
Cash surrender value of life insurance
10,005,880
9,767,792
Goodwill
1,213,898
1,213,898
Repossessed Assets
-
75,025
Other assets
4,246,342
3,630,737
Total assets
$
542,885,384
$
534,918,093
Liabilities and shareholders' equity
Deposits
Noninterest-bearing
$
53,706,317
$
55,960,708
Interest-bearing
437,336,866
428,550,708
Total deposits
491,043,183
484,511,416
Accrued expenses and other liabilities
3,781,728
3,758,195
Total liabilities
494,824,911
488,269,611
Shareholders' equity
Common stock, $.01 par; 2,000,000 shares authorized;
Issued: 1,836,328; outstanding: 1,127,357 - March 31, 2023 and 1,140,305 - June 30, 2022
18,363
18,363
Additional paid-in capital
10,100,525
9,940,774
Retained earnings
59,787,611
56,384,625
Accumulated other comprehensive income (loss)
(9,288,073
)
(7,726,089
)
Treasury stock, at cost: 708,971 shares at March 31, 2023 and
696,023 shares at June 30, 2022
(12,557,953
)
(11,969,191
)
Total shareholders' equity
48,060,473
46,648,482
Total liabilities and shareholders' equity
$
542,885,384
$
534,918,093
FFW Corporation Selected Financial Information
Consolidated Statement of Income
Three Months Ended March 31
Nine Months Ended March 31
2023
2022
2023
2022
Unaudited
Unaudited
Unaudited
Unaudited
Interest and dividend income:
Loans, including fees
$
4,494,524
$
3,342,482
$
12,606,871
$
10,097,771
Taxable securities
477,067
289,642
1,381,213
976,127
Tax exempt securities
457,460
407,352
1,377,899
1,228,982
Other
76,502
25,514
360,583
69,363
Total interest and dividend income
5,505,553
4,064,990
15,726,566
12,372,243
Interest expense:
Deposits
1,526,134
319,839
3,121,684
1,034,161
Borrowings
4,665
-
6,037
1
Total interest expense
1,530,799
319,839
3,127,721
1,034,162
Net interest income
3,974,754
3,745,151
12,598,845
11,338,081
Provision for loan losses
75,000
75,000
475,000
205,000
Net interest income after provision for
loan losses
3,899,754
3,670,151
12,123,845
11,133,081
Noninterest income:
Net gains (losses) on sales of securities
(3,633
)
-
(3,633
)
-
Net gains on sales of loans
12,710
92,943
151,602
447,769
Net gains (losses) on fixed assets
(20,533
)
24,033
(20,533
)
34,283
Net gains (losses) on sales of REO
(8,775
)
4,532
3,066
11,286
Commission income
299,231
305,301
923,239
941,537
Service charges and fees
242,269
349,991
804,352
859,663
Earnings on life insurance
79,662
76,749
238,088
230,396
Other
278,705
266,661
879,123
840,757
Total noninterest income
879,636
1,120,210
2,975,304
3,365,691
Noninterest expense:
Salaries and benefits
1,913,505
1,794,574
5,551,802
5,285,688
Occupancy and equipment
320,444
338,682
932,825
985,152
Professional
109,579
111,657
326,487
336,807
Marketing
102,263
85,077
281,215
303,131
Deposit insurance premium
39,025
36,448
119,968
102,448
Regulatory assessment
8,511
9,585
24,690
28,305
Correspondent bank charges
21,650
19,814
66,073
58,524
Data processing
435,771
414,997
1,236,359
1,247,433
Printing, postage and supplies
65,940
71,759
221,267
220,037
Expense on life insurance
21,889
21,232
65,982
63,996
Contribution expense
20,248
22,380
40,124
53,907
Expense on REO
636
1,068
6,540
2,093
Other
418,077
363,451
1,210,389
1,030,468
Total noninterest expense
3,477,538
3,290,724
10,083,721
9,717,989
Income before income taxes
1,301,852
1,499,637
5,015,428
4,780,783
Income tax expense
85,468
130,611
660,505
583,505
Net income
$
1,216,384
$
1,369,026
$
4,354,923
$
4,197,278
FFW Corporation Selected Financial Information
Key Balances and Ratios
Three Months Ended March 31
Nine Months Ended March 31
2023
2022
2023
2022
Unaudited
Unaudited
Unaudited
Unaudited
Per common share data:
Earnings
$
1.07
$
1.20
$
3.84
$
3.67
Diluted earnings
$
1.07
$
1.20
$
3.84
$
3.67
Dividends paid
$
0.28
$
0.26
$
0.84
$
0.78
Average shares issued and outstanding
1,128,995
1,143,348
1,133,501
1,143,981
Shares outstanding end of period
1,127,357
1,143,327
1,127,357
1,143,327
Supplemental data:
Net interest margin **
3.13
%
3.03
%
3.25
%
3.11
%
Return on average assets ***
0.93
%
1.04
%
1.09
%
1.08
%
Return on average common equity ***
10.47
%
10.30
%
12.59
%
10.32
%
March 31
June 30
2023
2022
Nonperforming assets *
$
2,182,794
$
2,344,693
Repossessed assets
$
0
$
75,025
*
Includes non-accruing loans, accruing loans delinquent more than 90 days and repossessed assets
**
Yields reflected have not been computed on a tax equivalent basis
***
Annualized
FOR MORE INFORMATION Contact: Kirsten Pendarvis, Treasurer, at (260) 563-3185
FFW Corporation is a holding company. The Company operates through its subsidiaries, Crossroads Bank (the Bank) and Insurance 1 Services, Inc. The Bank provides a range of banking services and a range of investments and securities products through its main office in Wabash and six Indiana banking centers located in Columbia City, North Manchester, Peru, South Whitley, Syracuse, and Warsaw. The Bank provides leasing services at each of its banking centers. The Bank provides personal banking services, business banking services, mortgage services and insurance services. The Bank also offers various loans, such as commercial loans, commercial real estate loans, residential real estate loans and consumer credit loans. Insurance 1 Services, Inc. is an Indiana corporation that offers insurance products to customers as an independent agency. Wabash Investments, Inc., a wholly owned subsidiary of the Bank manages a portion of the Bank's investment portfolio.