FFW Corporation Announces Earnings for the Fiscal Year Ended June 30, 2022
08/12/2022 - 04:44 PM
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 CorporationSelected 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