FFW Corporation Announces Earnings for the Fiscal Year Ended June 30, 2022
August 12, 2022 at 04:45 pm EDT
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WABASH, Ind., Aug. 12, 2022 (GLOBE NEWSWIRE) -- FFW Corporation (the “Corporation”) (OTC PINK: FFWC) (8/11/2022 Close: $47.00), parent corporation of Crossroads Bank (the “Bank”), announced earnings for the fiscal year ended June 30, 2022.
For the three months ended June 30, 2022, the Corporation reported net income of $1,523,000 or $1.33 per common share compared to $1,379,000 or $1.21 per common share for the three months ended June 30, 2021. Net interest income for the three months ended June 30, 2022 was $4,071,000 compared to $3,608,000 for the three months ended June 30, 2021. The provision for loan losses was $200,000 for the three months ended June 30, 2022 and ($150,000) for the three months ended June 30, 2021. Total noninterest income was $1,075,000 for the three months ended June 30, 2022 compared to $1,221,000 for the three months ended June 30, 2021. Noninterest expense was $3,215,000 for the three months ended June 30, 2022 and $3,391,000 for the three months ended June 30, 2021.
For the twelve months ended June 30, 2022, the Corporation reported net income of $5,721,000 or $5.00 per common share compared to $6,476,000 or $5.67 per common share for the twelve months ended June 30, 2021. Net interest income for the twelve months ended June 30, 2022 was $15,409,000 compared to $14,697,000 for the twelve months ended June 30, 2021. The Company recognized a provision for loan losses of $405,000 for the twelve months ended June 30, 2022 and $345,000 for the twelve months ended June 30, 2021. Total noninterest income was $4,441,000 for the twelve months ended June 30, 2022 compared to $6,590,000 for the twelve months ended June 30, 2021. Noninterest expense was $12,933,000 for the twelve months ended June 30, 2022 and $13,303,000 for the twelve months ended June 30, 2021.
The three and twelve months ended June 30, 2022 represented a return on average common equity of 12.63% and 10.85%, respectively, compared to 10.37% and 12.42% for the three and twelve month periods ended June 30, 2021. The three and twelve months ended June 30, 2022 represented a return on average assets of 1.16% and 1.10%, respectively, compared to 1.12% and 1.36% for the three and twelve month periods ended June 30, 2021.
The allowance for loan losses as a percentage of gross loans receivable was 1.28% at June 30, 2022 compared to 1.43% at June 30, 2021. Nonperforming assets were $2,345,000 at June 30, 2022 compared to $3,242,000 at June 30, 2021.
As of June 30, 2022, FFWC’s equity-to-assets ratio was 8.72% compared to 10.89% at June 30, 2021. Total assets at June 30, 2022 were $534,918,000 compared to $486,442,000 at June 30, 2021. Shareholders’ equity was $46,648,000 at June 30, 2022 compared to $52,954,000 at June 30, 2021. 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
June 30
June 30
2022
2021
Unaudited
Assets
Cash and due from financial institutions
$
7,122,187
$
4,779,188
Interest-bearing deposits in other financial institutions
48,456,109
51,646,720
Cash and cash equivalents
55,578,296
56,425,908
Securities available for sale
115,717,308
116,335,455
Loans held for sale
248,000
2,613,987
Loans receivable, net of allowance for loan losses of $4,342,121 at
June 30, 2022 and $4,168,689 at June 30, 2021
335,672,317
285,643,064
Federal Home Loan Bank stock, at cost
1,289,700
1,462,500
Accrued interest receivable
2,105,470
2,131,744
Premises and equipment, net
8,481,385
8,949,842
Mortgage servicing rights
1,138,165
1,011,046
Cash surrender value of life insurance
9,767,792
9,459,746
Goodwill
1,213,898
1,213,898
Repossessed Assets
75,025
148,621
Other assets
3,630,737
1,045,876
Total assets
$
534,918,093
$
486,441,687
Liabilities and shareholders' equity
Deposits
Noninterest-bearing
$
55,960,708
$
49,510,375
Interest-bearing
428,550,708
380,084,790
Total deposits
484,511,416
429,595,165
Accrued expenses and other liabilities
3,758,195
3,892,719
Total liabilities
488,269,611
433,487,884
Shareholders' equity
Common stock, $.01 par; 2,000,000 shares authorized;
Issued: 1,836,328; outstanding: 1,140,305 - June 30, 2022 and 1,141,190 - June 30, 2021
18,363
18,363
Additional paid-in capital
9,940,774
9,809,754
Retained earnings
56,384,625
51,852,194
Accumulated other comprehensive income (loss)
(7,726,089
)
3,058,832
Treasury stock, at cost: 696,023 shares at June 30, 2022 and 695,138
shares at June 30, 2021
(11,969,191
)
(11,785,340
)
Total shareholders' equity
46,648,482
52,953,803
Total liabilities and shareholders' equity
$
534,918,093
$
486,441,687
FFW Corporation Selected Financial Information
Consolidated Statement of Income
Three Months Ended June 30
Twelve Months Ended June 30
2022
2021
2022
2021
Unaudited
Unaudited
Interest and dividend income:
Loans, including fees
$
3,562,772
$
3,257,093
$
13,660,543
$
13,769,397
Taxable securities
341,548
313,689
1,317,675
1,308,266
Tax exempt securities
423,846
418,267
1,652,828
1,627,426
Other
128,452
14,860
197,815
38,650
Total interest and dividend income
4,456,618
4,003,909
16,828,861
16,743,739
Interest expense:
Deposits
385,508
395,295
1,419,669
2,046,577
Borrowings
200
200
201
200
Total interest expense
385,708
395,495
1,419,870
2,046,777
Net interest income
4,070,910
3,608,414
15,408,991
14,696,962
Provision for loan losses
200,000
(150,000
)
405,000
345,000
Net interest income after provision for
loan losses
3,870,910
3,758,414
15,003,991
14,351,962
Noninterest income:
Net gains on sales of securities
-
-
-
98,467
Net gains on sales of loans
75,450
390,165
523,219
3,261,880
Net gains (losses) on fixed assets
-
-
34,283
9,204
Net gains (losses) on sales of REO
(17,909
)
-
(6,623
)
(23,498
)
Commission income
337,665
309,389
1,279,202
1,224,845
Service charges and fees
275,763
188,237
1,135,426
721,677
Earnings on life insurance
77,651
75,757
308,047
300,452
Other
326,669
257,103
1,167,426
996,765
Total noninterest income
1,075,289
1,220,651
4,440,980
6,589,792
Noninterest expense:
Salaries and benefits
1,815,040
1,875,637
7,100,728
6,885,238
Occupancy and equipment
313,309
325,235
1,298,461
1,339,852
Professional
111,887
143,066
448,694
850,073
Marketing
90,882
104,293
394,013
431,982
Deposit insurance premium
38,304
33,000
140,752
132,000
Regulatory assessment
9,074
9,588
37,379
37,705
Correspondent bank charges
22,200
18,881
80,724
71,511
Data processing
337,292
391,172
1,584,725
1,613,051
Printing, postage and supplies
73,382
62,193
293,419
292,047
Expense on life insurance
21,132
20,518
85,128
72,827
Contribution expense
11,676
11,138
65,583
70,753
Expense on REO
5,412
5,626
7,505
18,683
Other
365,584
391,069
1,396,052
1,487,411
Total noninterest expense
3,215,174
3,391,416
12,933,163
13,303,133
Income before income taxes
1,731,025
1,587,649
6,511,808
7,638,621
Income tax expense
207,572
208,465
791,077
1,163,097
Net income
$
1,523,453
$
1,379,184
$
5,720,731
$
6,475,524
FFW Corporation Selected Financial Information
Key Balances and Ratios
Three Months Ended June 30
Twelve Months Ended June 30
2022
2021
2022
2021
Unaudited
Unaudited
Per common share data:
Earnings
$
1.33
$
1.21
$
5.00
$
5.67
Diluted earnings
$
1.33
$
1.21
$
5.00
$
5.67
Dividends paid
$
0.26
$
1.25
$
1.04
$
2.00
Average shares issued and outstanding
1,141,763
1,141,717
1,143,428
1,142,448
Shares outstanding end of period
1,140,305
1,141,190
1,140,305
1,141,190
Supplemental data:
Net interest margin **
3.15
%
3.11
%
3.12
%
3.29
%
Return on average assets ***
1.16
%
1.12
%
1.10
%
1.36
%
Return on average common equity ***
12.63
%
10.37
%
10.85
%
12.42
%
June 30
June 30
2022
2021
Nonperforming assets *
$
2,344,693
$
3,241,581
Repossessed assets
$
75,025
$
148,621
*
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.