FFW Corporation Announces Earnings for the Quarter and Year to Date Ended December 31, 2022
01/25/2023 - 09:48 AM
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
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
