FFW Corporation Announces Earnings For the Quarter and Year to Date Ended December 31, 2024

Rhea-AI Summary

FFW (FFWC) reported strong financial results for Q4 2024, with net income reaching $1,440,000 ($1.29 per share), up from $1,074,000 ($0.95 per share) in Q4 2023. For the six months ended December 31, 2024, net income was $2,682,000 ($2.38 per share), compared to $2,052,000 ($1.82 per share) in the same period 2023.

Key metrics showed improvement with net interest income increasing to $3,994,000 in Q4 2024 from $3,633,000 in Q4 2023. The company's return on average common equity rose to 11.36% for Q4 2024, up from 8.82% in Q4 2023. Total assets grew to $579,610,000, while maintaining a solid equity-to-assets ratio of 8.49%. The company actively repurchased 34,470 shares during Q4 at an average price of $39.52.

Positive

• Net income increased 34% YoY to $1.44M in Q4 2024
• EPS grew 35.8% YoY to $1.29 in Q4 2024
• Net interest income rose 9.9% YoY to $3.99M in Q4 2024
• Return on average common equity improved to 11.36% from 8.82% YoY
• Total assets increased to $579.6M from $567.4M in June 2024

Negative

• Nonperforming assets increased significantly to $8.76M from $4.04M in June 2024
• New provision for credit losses of $75,000 compared to $0 in previous year
• Slight decrease in equity-to-assets ratio to 8.49% from 8.55% in June 2024

WABASH, Ind., Jan. 24, 2025 (GLOBE NEWSWIRE) -- FFW Corporation (the “Corporation”) (OTC PINK: FFWC) (1/23/2025 Close: $39.80), parent corporation of Crossroads Bank (the “Bank”), announced earnings for the quarter and year to date ended December 31, 2024.

For the three months ended December 31, 2024, the Corporation reported net income of $1,440,000 or $1.29 per common share compared to $1,074,000 or $0.95 per common share for the three months ended December 31, 2023. Net interest income for the three months ended December 31, 2024 was $3,994,000 compared to $3,633,000 for the three months ended December 31, 2023. The provision for credit losses was $75,000 for the three months ended December 31, 2024 and $0 for the three months ended December 31, 2023. Total noninterest income was $1,259,000 for the three months ended December 31, 2024 compared to $1,010,000 for the three months ended December 31, 2023. Noninterest expense was $3,578,000 for the three months ended December 31, 2024 and $3,487,000 for the three months ended December 31, 2023.

For the six months ended December 31, 2024, the Corporation reported net income of $2,682,000 or $2.38 per common share compared to $2,052,000 or $1.82 per common share for the six months ended December 31, 2023. Net interest income for the six months ended December 31, 2024 was $7,776,000 compared to $7,277,000 for the six months ended December 31, 2023. The Company recognized a provision for credit losses of $75,000 for the six months ended December 31, 2024 and $0 for the six months ended December 31, 2023. Total noninterest income was $2,540,000 for the six months ended December 31, 2024 compared to $1,938,000 for the six months ended December 31, 2023. Noninterest expense was $7,273,000 for the six months ended December 31, 2024 and $6,974,000 for the six months ended December 31, 2023.

The three and six months ended December 31, 2024 represented a return on average common equity of 11.36% and 10.67%, respectively, compared to 8.82% and 9.03% for the three and six month periods ended December 31, 2023. The three and six months ended December 31, 2024 represented a return on average assets of 0.99% and 0.93%, respectively, compared to 0.78% and 0.75%, for the three and six month periods ended December 31, 2023.

The allowance for credit losses as a percentage of gross loans receivable was 1.30% at December 31, 2024 compared to 1.33% at June 30, 2024. Nonperforming assets were $8,762,000 at December 31, 2024 compared to $4,044,000 at June 30, 2024.

As of December 31, 2024, FFWC’s equity-to-assets ratio was 8.49% compared to 8.55% at June 30, 2024. Total assets at December 31, 2024 were $579,610,000 compared to $567,363,000 at June 30, 2024. Shareholders’ equity was $49,217,000 at December 31, 2024 compared to $48,515,000 at June 30, 2024. Crossroads Bank exceeds all applicable regulatory requirements to be considered “well capitalized.”

The Corporation has an active share repurchase program. During the quarter ended December 31, 2024, the Corporation repurchased 34,470 shares at an average price of $39.52. Year to date the Corporation repurchased 39,470 shares at an average price of $39.20. For more information regarding the share repurchase program, please contact Roger Cromer, President, at (260) 563-3185. The Corporation may suspend or discontinue repurchases at any time.

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.

FOR MORE INFORMATION Contact: Stacy Wiley, Treasurer, at (260) 563-3185   

FFW Corporation
Selected Financial Information

Consolidated Balance Sheet

		December 31			June 30
			2024			2024
		Unaudited
Assets
Cash and due from financial institutions		$	9,531,033		$	5,202,224
Interest-bearing deposits in other financial institutions			9,864,318			11,717,782
	Cash and cash equivalents		19,395,351			16,920,006
Securities available for sale			105,470,188			106,179,450
Loans held for sale			647,441			559,830
Loans receivable, net of allowance for credit losses of $5,573,850
	at December 31, 2024 and $5,564,436 at June 30, 2024		421,864,177			411,841,368
Federal Home Loan Bank stock, at cost			1,289,700			1,289,700
Accrued interest receivable			3,046,702			3,016,660
Premises and equipment, net			7,546,937			7,614,589
Mortgage servicing rights			1,093,572			1,086,587
Cash surrender value of life insurance			12,944,163			12,725,890
Goodwill			1,213,898			1,213,898
Repossessed Assets			-			1,250
Other assets			5,098,352			4,913,693
	Total assets	$	579,610,481		$	567,362,921
Liabilities and shareholders' equity
Deposits
	Noninterest-bearing	$	50,176,332		$	47,530,618
	Interest-bearing		476,342,992			466,891,628
	Total deposits		526,519,324			514,422,246
Accrued expenses and other liabilities			3,874,259			4,425,736
	Total liabilities		530,393,583			518,847,982
Shareholders' equity
Common stock, $.01 par; 2,000,000 shares authorized;
	Issued: 1,836,328; outstanding: 1,100,198 at December 31, 2024 and 1,126,243 at June 30, 2024		18,363			18,363
Additional paid-in capital			10,133,144			10,266,257
Retained earnings			63,696,411			61,694,919
Accumulated other comprehensive income (loss)			(10,654,524	)		(10,795,929	)
Treasury stock, at cost: 736,130 at December 31, 2024 and
	710,085 at June 30, 2024		(13,976,496	)		(12,668,671	)
	Total shareholders' equity		49,216,898			48,514,939
	Total liabilities and shareholders' equity	$	579,610,481		$	567,362,921

FFW Corporation
Selected Financial Information

Consolidated Statement of Income

			Three Months Ended December 31					Six Months Ended December 31
				2024			2023		2024			2023
			Unaudited			Unaudited		Unaudited			Unaudited
Interest and dividend income:
	Loans, including fees		$	5,759,713		$	5,283,343	$	11,490,780		$	10,315,094
	Taxable securities			537,113			495,056		1,074,663			984,176
	Tax exempt securities			411,872			419,116		817,709			842,735
	Other			187,210			74,910		381,632			132,284
		Total interest and dividend income		6,895,908			6,272,425		13,764,784			12,274,289
Interest expense:
	Deposits			2,901,835			2,601,732		5,989,166			4,933,582
	Borrowings			14			38,140		14			63,469
		Total interest expense		2,901,849			2,639,872		5,989,180			4,997,051
Net interest income				3,994,059			3,632,553		7,775,604			7,277,238
Provision for credit losses				75,000			-		75,000			-
Net interest income after provision for
	credit losses			3,919,059			3,632,553		7,700,604			7,277,238
Noninterest income:
	Net gains on sales of loans			141,322			22,292		239,334			43,406
	Net gains (losses) on fixed assets			35,238			-		35,238			-
	Net gains (losses) on sales of REO			-			-		(684	)		(37,006	)
	Commission income			452,309			334,542		936,389			669,991
	Service charges and fees			208,986			256,951		465,519			502,485
	Earnings on life insurance			110,593			94,612		218,272			175,481
	Other			310,600			301,568		645,474			583,877
		Total noninterest income		1,259,048			1,009,965		2,539,542			1,938,234
Noninterest expense:
	Salaries and benefits			2,004,047			1,869,210		4,045,660			3,783,406
	Occupancy and equipment			311,383			309,349		633,457			626,590
	Professional			193,931			121,300		336,682			242,954
	Marketing			103,762			101,328		194,203			182,904
	Deposit insurance premium			75,000			71,666		162,261			138,666
	Regulatory assessment			11,569			10,345		19,282			20,690
	Correspondent bank charges			24,055			20,269		46,554			44,210
	Data processing			494,887			458,873		963,476			909,840
	Printing, postage and supplies			84,644			87,518		156,852			155,218
	Expense on life insurance			(82,096	)		24,740		(47,553	)		47,536
	Contribution expense			9,601			10,226		19,102			19,935
	Expense on REO			-			-		-			5,822
	Other			347,235			402,221		743,467			796,694
		Total noninterest expense		3,578,018			3,487,045		7,273,443			6,974,465
Income before income taxes				1,600,089			1,155,473		2,966,703			2,241,007
Income tax expense				160,565			81,027		284,493			188,901
Net income			$	1,439,524		$	1,074,446	$	2,682,210		$	2,052,106

FFW Corporation
Selected Financial Information

Key Balances and Ratios

		Three Months Ended December 31						Six Months Ended December 31
			2024			2023			2024			2023
		Unaudited			Unaudited			Unaudited			Unaudited
Per common share data:
Earnings		$	1.29		$	0.95		$	2.38		$	1.82
Diluted earnings		$	1.29		$	0.95		$	2.38		$	1.82
Dividends paid		$	0.30		$	0.29		$	0.60		$	0.58
Average shares issued and outstanding			1,112,282			1,125,986			1,127,300			1,126,307
Shares outstanding end of period			1,100,198			1,125,453			1,100,198			1,125,453
Supplemental data:
Net interest margin **			2.82	%		2.69	%		2.76	%		2.72	%
Return on average assets ***			0.99	%		0.78	%		0.93	%		0.75	%
Return on average common equity ***			11.36	%		8.82	%		10.67	%		9.03	%
		December 31			June 30
			2024			2024
Nonperforming assets *		$	8,762,032		$	4,044,082
Repossessed assets		$	0		$	1,250
*	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

FAQ

What was FFW 's (FFWC) earnings per share for Q4 2024?

FFWC reported earnings of $1.29 per share for Q4 2024, up from $0.95 per share in Q4 2023.

How many shares did FFWC repurchase in Q4 2024?

FFWC repurchased 34,470 shares at an average price of $39.52 during Q4 2024.

What was FFWC's return on average common equity in Q4 2024?

FFWC's return on average common equity was 11.36% in Q4 2024, up from 8.82% in Q4 2023.

How much did FFWC's nonperforming assets increase in December 2024?

Nonperforming assets increased to $8,762,000 as of December 31, 2024, up from $4,044,000 in June 2024.

What was FFWC's net interest income for Q4 2024?

FFWC's net interest income for Q4 2024 was $3,994,000, compared to $3,633,000 in Q4 2023.