FFW Corporation : Announces Earnings for the Quarter Ended September 30, 2020
October 28, 2020 at 09:33 am EDT
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WABASH, Ind., Oct. 28, 2020 (GLOBE NEWSWIRE) -- FFW Corporation (the “Corporation”) (OTC PINK: FFWC) (10/27/20 Close: $39.00), parent corporation of Crossroads Bank (the “Bank”), announced earnings for the quarter ended September 30, 2020.
For the three months ended September 30, 2020, the Corporation reported net income of $1,748,000 or $1.53 per common share compared to $1,236,000 or $1.08 per common share for the three months ended September 30, 2019. Net interest income for the three months ended September 30, 2020 was $3,706,000 compared to $3,491,000 for the three months ended September 30, 2019. The provision for loan losses was $165,000 for the three months ended September 30, 2020 and $75,000 for the three months ended September 30, 2019. Total noninterest income was $1,982,000 for the three months ended September 30, 2020 compared to $1,011,000 for the three months ended September 30, 2019. Noninterest expense was $3,426,000 for the three months ended September 30, 2020 and $2,990,000 for the three months ended September 30, 2019.
The three months ended September 30, 2020 represented a return on average common equity of 13.71% compared to 10.77% for the three months ended September 30, 2019. The three months ended September 30, 2020 represented a return on average assets of 1.48% compared to 1.18% for the three months ended September 30, 2019.
The allowance for loan losses as a percentage of gross loans receivable was 1.29% at September 30, 2020 compared to 1.29% at June 30, 2020. Nonperforming assets were $3,175,000 at September 30, 2020 compared to $3,551,000 at June 30, 2020.
As of September 30, 2020, FFWC’s equity-to-assets ratio was 10.83% compared to 10.66% at June 30, 2020. Total assets at September 30, 2020 were $466,214,000 compared to $461,724,000 at June 30, 2020. Shareholders’ equity was $50,474,000 at September 30, 2020 compared to $49,198,000 at June 30, 2020. 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
September 30
June 30
2020
2020
Unaudited
Assets
Cash and due from financial institutions
$
4,865,661
$
6,084,611
Interest-bearing deposits in other financial institutions
26,909,857
30,077,626
Cash and cash equivalents
31,775,518
36,162,237
Securities available for sale
100,178,257
86,147,475
Loans receivable, net of allowance for loan losses of $4,036,116 at
September 30, 2020 and $4,098,026 at June 30, 2020
304,558,569
303,102,891
Loans held for sale
4,107,705
10,876,733
Federal Home Loan Bank stock, at cost
1,462,500
1,462,500
Accrued interest receivable
2,339,030
2,281,588
Premises and equipment, net
9,376,500
9,338,832
Mortgage servicing rights
784,574
731,190
Cash surrender value of life insurance
9,233,735
9,159,293
Goodwill
1,213,898
1,213,898
Repossessed Assets
179,184
145,782
Other assets
1,004,677
1,101,841
Total assets
$
466,214,147
$
461,724,260
Liabilities and shareholders' equity
Deposits
Noninterest-bearing
$
46,598,906
$
42,014,196
Interest-bearing
365,015,219
366,527,945
Total deposits
411,614,125
408,542,141
Accrued expenses and other liabilities
4,126,072
3,984,019
Total liabilities
415,740,197
412,526,160
Shareholders' equity
Common stock, $.01 par; 2,000,000 shares authorized;
Issued: 1,836,328; outstanding: 1,142,690 - September 30, 2020 and 1,129,394 - June 30, 2020
18,363
18,363
Additional paid-in capital
9,653,604
9,826,124
Retained earnings
49,122,033
47,660,175
Accumulated other comprehensive income
3,396,740
3,634,798
Treasury stock, at cost: 693,638 shares at September 30, 2020 and 706,934 shares at June 30, 2020
(11,716,790
)
(11,941,360
)
Total shareholders' equity
50,473,950
49,198,100
Total liabilities and shareholders' equity
$
466,214,147
$
461,724,260
FFW Corporation Selected Financial Information
Consolidated Statement of Income
Three Months Ended September 30
2020
2019
Unaudited
Unaudited
Interest and dividend income:
Loans, including fees
$
3,604,316
$
3,703,229
Taxable securities
333,193
392,816
Tax exempt securities
372,271
313,594
Other
7,781
106,981
Total interest and dividend income
4,317,561
4,516,620
Interest expense:
Deposits
611,385
1,015,660
Borrowings
-
9,840
Total interest expense
611,385
1,025,500
Net interest income
3,706,176
3,491,120
Provision for loan losses
165,000
75,000
Net interest income after provision for
loan losses
3,541,176
3,416,120
Noninterest income:
Net gains on sales of securities
98,467
-
Net gains on sales of loans
1,195,486
166,585
Net gains (losses) on sales of REO
(6,535
)
-
Commission income
290,078
312,606
Service charges and fees
95,419
226,690
Earnings on life insurance
74,441
71,319
Other
234,343
234,187
Total noninterest income
1,981,699
1,011,387
Noninterest expense:
Salaries and benefits
1,761,064
1,579,123
Occupancy and equipment
343,094
295,692
Professional
60,586
140,339
Marketing
113,941
108,184
Deposit insurance premium
33,000
33,000
Regulatory assessment
9,301
8,953
Correspondent bank charges
17,517
20,330
Data processing
420,582
316,938
Printing, postage and supplies
95,412
68,519
Expense on life insurance
15,849
14,895
Contribution expense
15,388
9,546
Expense on REO
4,781
3,524
Other
535,313
391,426
Total noninterest expense
3,425,828
2,990,469
Income before income taxes
2,097,047
1,437,038
Income tax expense
349,517
201,246
Net income
$
1,747,530
$
1,235,792
FFW Corporation Selected Financial Information
Key Balances and Ratios
Three Months Ended September 30
2020
2019
Unaudited
Unaudited
Per common share data:
Earnings
$
1.53
$
1.08
Diluted earnings
$
1.53
$
1.08
Dividends paid
$
0.25
$
0.23
Average shares issued and outstanding
1,142,690
1,144,435
Shares outstanding end of period
1,142,690
1,137,783
Supplemental data:
Net interest margin **
3.38
%
3.56
%
Return on average assets ***
1.48
%
1.18
%
Return on average common equity ***
13.71
%
10.77
%
September 30
June 30
2020
2020
Nonperforming assets *
$
3,174,865
$
3,550,611
Repossessed assets
$
179,184
$
145,782
*
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: Emily Boardman, 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.