FFW Corporation Announces Earnings for the Quarter and Year to Date Ended December 31, 2022
January 25, 2023 at 09:49 am EST
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WABASH, Ind., Jan. 25, 2023 (GLOBE NEWSWIRE) -- FFW Corporation (the “Corporation”) (OTC PINK: FFWC) (1/24/2023 Close: $44.50), parent corporation of Crossroads Bank (the “Bank”), announced earnings for the quarter and year to date ended December 31, 2022.
For the three months ended December 31, 2022, the Corporation reported net income of $1,516,000 or $1.34 per common share compared to $1,358,000 or $1.19 per common share for the three months ended December 31, 2021. Net interest income for the three months ended December 31, 2022 was $4,248,000 compared to $3,780,000 for the three months ended December 31, 2021. The provision for loan losses was $100,000 for the three months ended December 31, 2022 and $80,000 for the three months ended December 31, 2021. Total noninterest income was $1,070,000 for the three months ended December 31, 2022 compared to $1,032,000 for the three months ended December 31, 2021. Noninterest expense was $3,415,000 for the three months ended December 31, 2022 and $3,219,000 for the three months ended December 31, 2021.
For the six months ended December 31, 2022, the Corporation reported net income of $3,139,000 or $2.76 per common share compared to $2,828,000 or $2.47 per common share for the six months ended December 31, 2021. Net interest income for the six months ended December 31, 2022 was $8,624,000 compared to $7,593,000 for the six months ended December 31, 2021. The Company recognized a provision for loan losses of $400,000 for the six months ended December 31, 2022 and $130,000 for the six months ended December 31, 2021. Total noninterest income was $2,096,000 for the six months ended December 31, 2022 compared to $2,245,000 for the six months ended December 31, 2021. Noninterest expense was $6,606,000 for the six months ended December 31, 2022 and $6,427,000 for the six months ended December 31, 2021.
The three and six months ended December 31, 2022 represented a return on average common equity of 13.71% and 13.66%, respectively, compared to 9.92% and 10.32% for the three and six month periods ended December 31, 2021. The three and six months ended December 31, 2022 represented a return on average assets of 1.14% and 1.17%, respectively, compared to 1.03% and 1.10%, for the three and six month periods ended December 31, 2021.
The allowance for loan losses as a percentage of gross loans receivable was 1.25% at December 31, 2022 compared to 1.28% at June 30, 2022. Nonperforming assets were $2,083,000 at December 31, 2022 compared to $2,344,000 at June 30, 2022.
As of December 31, 2022, FFWC’s equity-to-assets ratio was 8.47% compared to 8.72% at June 30, 2022. Total assets at December 31, 2022 were $538,328,000 compared to $534,918,000 at June 30, 2022. Shareholders’ equity was $45,610,000 at December 31, 2022 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 twelve 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
December 31
June 30
2022
2022
Unaudited
Assets
Cash and due from financial institutions
$
14,971,688
$
7,122,187
Interest-bearing deposits in other financial institutions
2,223,198
48,456,109
Cash and cash equivalents
17,194,886
55,578,296
Securities available for sale
117,703,726
115,717,308
Loans held for sale
-
248,000
Loans receivable, net of allowance for loan losses of $4,722,103 at
December 31, 2022 and $4,342,121 at June 30, 2022
374,270,599
335,672,317
Federal Home Loan Bank stock, at cost
1,289,700
1,289,700
Accrued interest receivable
2,532,043
2,105,470
Premises and equipment, net
8,372,618
8,481,385
Mortgage servicing rights
1,162,121
1,138,165
Cash surrender value of life insurance
9,926,218
9,767,792
Goodwill
1,213,898
1,213,898
Repossessed Assets
9,325
75,025
Other assets
4,652,723
3,630,737
Total assets
$
538,327,857
$
534,918,093
Liabilities and shareholders' equity
Deposits
Noninterest-bearing
$
64,065,472
$
55,960,708
Interest-bearing
422,170,715
428,550,708
Total deposits
486,236,187
484,511,416
Borrowings
3,100,000
-
Accrued expenses and other liabilities
3,381,934
3,758,195
Total liabilities
492,718,121
488,269,611
Shareholders' equity
Common stock, $.01 par; 2,000,000 shares authorized;
Issued: 1,836,328; outstanding: 1,130,963 - December 31, 2022 and 1,140,305 - June 30, 2022
18,363
18,363
Additional paid-in capital
10,030,575
9,940,774
Retained earnings
58,887,026
56,384,625
Accumulated other comprehensive income (loss)
(10,898,564
)
(7,726,089
)
Treasury stock, at cost: 705,365 shares at December 31, 2022 and
696,023 shares at June 30, 2022
(12,427,664
)
(11,969,191
)
Total shareholders' equity
45,609,736
46,648,482
Total liabilities and shareholders' equity
$
538,327,857
$
534,918,093
FFW Corporation Selected Financial Information
Consolidated Statement of Income
Three Months Ended December 31
Six Months Ended December 31
2022
2021
2022
2021
Unaudited
Unaudited
Unaudited
Unaudited
Interest and dividend income:
Loans, including fees
$
4,242,834
$
3,362,773
$
8,112,347
$
6,755,289
Taxable securities
462,321
331,914
904,146
686,485
Tax exempt securities
468,809
407,372
920,439
821,630
Other
122,509
25,096
284,081
43,849
Total interest and dividend income
5,296,473
4,127,155
10,221,013
8,307,253
Interest expense:
Deposits
1,047,197
347,651
1,595,550
714,322
Borrowings
1,372
1
1,372
1
Total interest expense
1,048,569
347,652
1,596,922
714,323
Net interest income
4,247,904
3,779,503
8,624,091
7,592,930
Provision for loan losses
100,000
80,000
400,000
130,000
Net interest income after provision for
loan losses
4,147,904
3,699,503
8,224,091
7,462,930
Noninterest income:
Net gains on sales of loans
70,746
72,163
138,892
354,826
Net gains (losses) on fixed assets
-
10,250
-
10,250
Net gains (losses) on sales of REO
-
13,770
11,841
6,754
Commission income
305,588
313,632
624,008
636,236
Service charges and fees
282,653
246,442
562,083
509,672
Earnings on life insurance
80,122
77,282
158,426
153,647
Other
330,622
298,788
600,418
574,096
Total noninterest income
1,069,731
1,032,327
2,095,668
2,245,481
Noninterest expense:
Salaries and benefits
1,867,630
1,778,904
3,638,297
3,491,114
Occupancy and equipment
304,998
320,454
612,381
646,470
Professional
107,657
106,231
216,908
225,150
Marketing
84,978
105,686
178,952
218,054
Deposit insurance premium
42,943
33,000
80,943
66,000
Regulatory assessment
8,089
9,360
16,179
18,720
Correspondent bank charges
22,007
19,186
44,423
38,710
Data processing
469,446
413,164
800,588
832,436
Printing, postage and supplies
77,515
75,994
155,327
148,278
Expense on life insurance
21,994
21,332
44,093
42,764
Contribution expense
10,375
10,513
19,876
31,527
Expense on REO
1,121
4,961
5,904
1,025
Other
396,732
319,979
792,312
667,017
Total noninterest expense
3,415,485
3,218,764
6,606,183
6,427,265
Income before income taxes
1,802,150
1,513,066
3,713,576
3,281,146
Income tax expense
286,650
155,358
575,037
452,894
Net income
$
1,515,500
$
1,357,708
$
3,138,539
$
2,828,252
FFW Corporation Selected Financial Information
Key Balances and Ratios
Three Months Ended December 31
Six Months Ended December 31
2022
2021
2022
2021
Unaudited
Unaudited
Unaudited
Unaudited
Per common share data:
Earnings
$1.34
$1.19
$2.76
$2.47
Diluted earnings
$1.34
$1.19
$2.76
$2.47
Dividends paid
$0.28
$0.26
$0.56
$0.52
Average shares issued and outstanding
1,130,963
1,143,377
1,135,688
1,144,291
Shares outstanding end of period
1,130,963
1,143,377
1,130,963
1,143,377
Supplemental data:
Net interest margin **
3.25
%
3.07
%
3.31
%
3.15
%
Return on average assets ***
1.13
%
1.03
%
1.17
%
1.10
%
Return on average common equity ***
13.71
%
9.92
%
13.66
%
10.32
%
December 31
June 30
2022
2022
Nonperforming assets *
$2,083,441
$2,344,693
Repossessed assets
$9,325
$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.