FFW Corporation Announces Earnings for the Quarter Ended September 30, 2023
October 25, 2023 at 09:16 am EDT
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WABASH, Ind., Oct. 25, 2023 (GLOBE NEWSWIRE) -- FFW Corporation (the “Corporation”) (OTC PINK: FFWC) (10/24/2023 Close: $35.60), parent corporation of Crossroads Bank (the “Bank”), announced earnings for the quarter ended September 30, 2023.
For the three months ended September 30, 2023, the Corporation reported net income of $978,000 or $0.87 per common share compared to $1,623,000 or $1.42 per common share for the three months ended September 30, 2022. Net interest income for the three months ended September 30, 2023 was $3,645,000 compared to $4,376,000 for the three months ended September 30, 2022. The provision for credit losses was $0 for the three months ended September 30, 2023 and $300,000 for the three months ended September 30, 2022. Total noninterest income was $928,000 for the three months ended September 30, 2023 compared to $1,026,000 for the three months ended September 30, 2022. Noninterest expense was $3,487,000 for the three months ended September 30, 2023 and $3,191,000 for the three months ended September 30, 2022.
The three months ended September 30, 2023 represented a return on average common equity of 8.87% compared to 13.61% for the three months ended September 30, 2022. The three months ended September 30, 2023 represented a return on average assets of 0.72% compared to 1.21% for the three months ended September 30, 2022.
The allowance for credit losses as a percentage of gross loans receivable was 1.32% at September 30, 2023 compared to 1.23% at June 30, 2023. Nonperforming assets were $1,845,000 at September 30, 2023 compared to $2,065,000 at June 30, 2023.
As of September 30, 2023, FFWC’s equity-to-assets ratio was 8.10% compared to 8.54% at June 30, 2023. Total assets at September 30, 2023 were $541,533,000 compared to $543,245,000 at June 30, 2023. Shareholders’ equity was $43,846,000 at September 30, 2023 compared to $46,385,000 at June 30, 2023. 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
2023
2023
Unaudited
Assets
Cash and due from financial institutions
$
6,102,535
$
8,686,057
Interest-bearing deposits in other financial institutions
3,260,402
4,668,889
Cash and cash equivalents
9,362,937
13,354,946
Securities available for sale
105,912,763
110,063,452
Loans held for sale
84,000
80,000
Loans receivable, net of allowance for credit losses of $5,292,801 at
September 30, 2023 and $4,852,745 at June 30, 2023
395,751,052
390,544,236
Federal Home Loan Bank stock, at cost
1,289,700
1,289,700
Accrued interest receivable
2,752,820
2,648,368
Premises and equipment, net
8,060,878
8,121,511
Mortgage servicing rights
1,110,991
1,128,019
Cash surrender value of life insurance
10,167,345
10,086,476
Goodwill
1,213,898
1,213,898
Repossessed Assets
-
109,596
Other assets
5,827,032
4,604,551
Total assets
$
541,533,416
$
543,244,753
Liabilities and shareholders' equity
Deposits
Noninterest-bearing
$
56,217,861
$
53,267,081
Interest-bearing
431,138,013
437,700,301
Total deposits
487,355,874
490,967,382
Borrowings
6,000,000
2,100,000
Accrued expenses and other liabilities
4,332,013
3,792,808
Total liabilities
497,687,887
496,860,190
Shareholders' equity
Common stock, $.01 par; 2,000,000 shares authorized;
Issued: 1,836,328; outstanding: 1,126,607 - September 30, 2023 and 1,126,357 - June 30, 2023
18,363
18,363
Additional paid-in capital
10,195,967
10,150,145
Retained earnings
59,562,879
59,406,634
Accumulated other comprehensive income (loss)
(13,333,327
)
(10,588,876
)
Treasury stock, at cost: 709,721 shares at September 30, 2023 and
709,971 shares at June 30, 2023
(12,598,353
)
(12,601,703
)
Total shareholders' equity
43,845,529
46,384,563
Total liabilities and shareholders' equity
$
541,533,416
$
543,244,753
FFW Corporation Selected Financial Information
Consolidated Statement of Income
Three Months Ended September 30
2023
2022
Unaudited
Unaudited
Interest and dividend income:
Loans, including fees
$
5,031,751
$
3,869,513
Taxable securities
489,120
441,825
Tax exempt securities
423,619
451,630
Other
57,374
161,572
Total interest and dividend income
6,001,864
4,924,540
Interest expense:
Deposits
2,331,850
548,353
Borrowings
25,329
-
Total interest expense
2,357,179
548,353
Net interest income
3,644,685
4,376,187
Provision for credit losses
-
300,000
Net interest income after provision for credit losses
3,644,685
4,076,187
Noninterest income:
Net gains on sales of loans
21,114
68,146
Net gains (losses) on sales of REO
(37,006
)
11,841
Commission income
335,449
318,420
Service charges and fees
245,534
279,430
Earnings on life insurance
80,869
78,304
Other
282,309
269,796
Total noninterest income
928,269
1,025,937
Noninterest expense:
Salaries and benefits
1,914,196
1,770,667
Occupancy and equipment
317,241
307,383
Professional
121,654
109,251
Marketing
81,576
93,974
Deposit insurance premium
67,000
38,000
Regulatory assessment
10,345
8,090
Correspondent bank charges
23,941
22,416
Data processing
450,967
331,142
Printing, postage and supplies
67,700
77,812
Expense on life insurance
22,796
22,099
Contribution expense
9,709
9,501
Expense on REO
5,822
4,783
Other
394,473
395,580
Total noninterest expense
3,487,420
3,190,698
Income before income taxes
1,085,534
1,911,426
Income tax expense
107,874
288,387
Net income
$
977,660
$
1,623,039
FFW Corporation Selected Financial Information
Key Balances and Ratios
Three Months Ended September 30
2023
2022
Unaudited
Unaudited
Per common share data:
Earnings
$0.87
$1.42
Diluted earnings
$0.87
$1.42
Dividends paid
$0.29
$0.28
Average shares issued and outstanding
1,126,628
1,140,413
Shares outstanding end of period
1,126,607
1,130,963
Supplemental data:
Net interest margin **
2.75
%
3.37
%
Return on average assets ***
0.72
%
1.21
%
Return on average common equity ***
8.87
%
13.61
%
September 30
June 30
2023
2023
Nonperforming assets *
$1,844,964
$2,065,381
Repossessed assets
$0
$109,596
*
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.