FFW Corporation Announces Earnings for the Quarter and Year to Date Ended December 31, 2023
FFW Corporation (FFWC) announced earnings for the quarter and year to date ended December 31, 2023. The Corporation reported net income of $1,074,000 or $0.95 per common share for the three months ended December 31, 2023, compared to $1,516,000 or $1.34 per common share for the same period in 2022. Net interest income, noninterest income, and noninterest expense figures were also provided. The three and six months ended December 31, 2023, represented a return on average common equity of 8.82% and 9.03%, respectively, compared to 13.71% and 13.66% for the same periods in 2022. The Corporation's allowance for credit losses, nonperforming assets, equity-to-assets ratio, total assets, and shareholders' equity were detailed, showing increases in nonperforming assets and total assets. Crossroads Bank was noted to exceed all applicable regulatory requirements to be considered 'well capitalized.'
01/24/2024 - 02:12 PM
WABASH, Ind., Jan. 24, 2024 (GLOBE NEWSWIRE) -- FFW Corporation (the “Corporation”) (OTC PINK: FFWC ) (1/23/24 Close: $34.55) , parent corporation of Crossroads Bank (the “Bank”), announced earnings for the quarter and year to date ended December 31, 2023.
For the three months ended December 31, 2023, the Corporation reported net income of $1,074,000 or $0.95 per common share compared to $1,516,000 or $1.34 per common share for the three months ended December 31, 2022. Net interest income for the three months ended December 31, 2023 was $3,633,000 compared to $4,248,000 for the three months ended December 31, 2022. The provision for credit losses was $0 for the three months ended December 31, 2023 and $100,000 for the three months ended December 31, 2022. Total noninterest income was $1,010,000 for the three months ended December 31, 2023 compared to $1,070,000 for the three months ended December 31, 2022. Noninterest expense was $3,487,000 for the three months ended December 31, 2023 and $3,415,000 for the three months ended December 31, 2022.
For the six months ended December 31, 2023, the Corporation reported net income of $2,052,000 or $1.82 per common share compared to $3,139,000 or $2.76 per common share for the six months ended December 31, 2022. Net interest income for the six months ended December 31, 2023 was $7,277,000 compared to $8,624,000 for the six months ended December 31, 2022. The Company recognized a provision for credit losses of $0 for the six months ended December 31, 2023 and $400,000 for the six months ended December 31, 2022. Total noninterest income was $1,938,000 for the six months ended December 31, 2023 compared to $2,096,000 for the six months ended December 31, 2022. Noninterest expense was $6,974,000 for the six months ended December 31, 2023 and $6,606,000 for the six months ended December 31, 2022.
The three and six months ended December 31, 2023 represented a return on average common equity of 8.82% and 9.03% , respectively, compared to 13.71% and 13.66% for the three and six month periods ended December 31, 2022. The three and six months ended December 31, 2023 represented a return on average assets of 0.78% and 0.75% , respectively, compared to 1.13% and 1.17% , for the three and six month periods ended December 31, 2022.
The allowance for credit losses as a percentage of gross loans receivable was 1.31% at December 31, 2023 compared to 1.23% at June 30, 2023. Nonperforming assets were $3,544,000 at December 31, 2023 compared to $2,065,000 at June 30, 2023.
As of December 31, 2023, FFWC’s equity-to-assets ratio was 8.75% compared to 8.54% at June 30, 2023. Total assets at December 31, 2023 were $554,153,000 compared to $543,245,000 at June 30, 2023. Shareholders’ equity was $48,475,000 at December 31, 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
December 31 June 30 2023 2023 Unaudited Assets Cash and due from financial institutions $ 5,816,491 $ 8,686,057 Interest-bearing deposits in other financial institutions 2,714,634 4,668,889 Cash and cash equivalents 8,531,125 13,354,946 Securities available for sale 109,124,615 110,063,452 Loans held for sale 218,200 80,000 Loans receivable, net of allowance for credit losses of $5,382,830 at December 31, 2023 and $4,852,745 at June 30, 2023 404,905,627 390,544,236 Federal Home Loan Bank stock, at cost 1,289,700 1,289,700 Accrued interest receivable 2,779,664 2,648,368 Premises and equipment, net 7,918,415 8,121,511 Mortgage servicing rights 1,095,003 1,128,019 Cash surrender value of life insurance 12,511,958 10,086,476 Goodwill 1,213,898 1,213,898 Repossessed Assets - 109,596 Other assets 4,564,887 4,604,551 Total assets $ 554,153,092 $ 543,244,753 Liabilities and shareholders' equity Deposits Noninterest-bearing $ 51,506,811 $ 53,267,081 Interest-bearing 446,214,997 437,700,301 Total deposits 497,721,808 490,967,382 Borrowings 3,400,000 2,100,000 Accrued expenses and other liabilities 4,556,577 3,792,808 Total liabilities 505,678,385 496,860,190 Shareholders' equity Common stock, $.01 par; 2,000,000 shares authorized; Issued: 1,836,328; outstanding: 1,125,453 - December 31, 2023 and 1,126,357 - June 30, 2023 18,363 18,363 Additional paid-in capital 10,246,688 10,150,145 Retained earnings 60,310,943 59,406,634 Accumulated other comprehensive income (loss) (9,473,930 ) (10,588,876 ) Treasury stock, at cost: 710,875 shares at December 31, 2023 and 709,971 shares at June 30, 2023 (12,627,357 ) (12,601,703 ) Total shareholders' equity 48,474,707 46,384,563 Total liabilities and shareholders' equity $ 554,153,092 $ 543,244,753
FFW Corporation Selected Financial Information
Consolidated Statement of Income
Three Months Ended December 31 Six Months Ended December 31 2023 2022 2023 2022 Unaudited Unaudited Unaudited Unaudited Interest and dividend income: Loans, including fees $ 5,283,343 $ 4,242,834 $ 10,315,094 $ 8,112,347 Taxable securities 495,056 462,321 984,176 904,146 Tax exempt securities 419,116 468,809 842,735 920,439 Other 74,910 122,509 132,284 284,081 Total interest and dividend income 6,272,425 5,296,473 12,274,289 10,221,013 Interest expense: Deposits 2,601,732 1,047,197 4,933,582 1,595,550 Borrowings 38,140 1,372 63,469 1,372 Total interest expense 2,639,872 1,048,569 4,997,051 1,596,922 Net interest income 3,632,553 4,247,904 7,277,238 8,624,091 Provision for credit losses - 100,000 - 400,000 Net interest income after provision for credit losses 3,632,553 4,147,904 7,277,238 8,224,091 Noninterest income: Net gains on sales of loans 22,292 70,746 43,406 138,892 Net gains (losses) on sales of REO - - (37,006 ) 11,841 Commission income 334,542 305,588 669,991 624,008 Service charges and fees 256,951 282,653 502,485 562,083 Earnings on life insurance 94,612 80,122 175,481 158,426 Other 301,568 330,622 583,877 600,418 Total noninterest income 1,009,965 1,069,731 1,938,234 2,095,668 Noninterest expense: Salaries and benefits 1,869,210 1,867,630 3,783,406 3,638,297 Occupancy and equipment 309,349 304,998 626,590 612,381 Professional 121,300 107,657 242,954 216,908 Marketing 101,328 84,978 182,904 178,952 Deposit insurance premium 71,666 42,943 138,666 80,943 Regulatory assessment 10,345 8,089 20,690 16,179 Correspondent bank charges 20,269 22,007 44,210 44,423 Data processing 458,873 469,446 909,840 800,588 Printing, postage and supplies 87,518 77,515 155,218 155,327 Expense on life insurance 24,740 21,994 47,536 44,093 Contribution expense 10,226 10,375 19,935 19,876 Expense on REO - 1,121 5,822 5,904 Other 402,221 396,732 796,694 792,312 Total noninterest expense 3,487,045 3,415,485 6,974,465 6,606,183 Income before income taxes 1,155,473 1,802,150 2,241,007 3,713,576 Income tax expense 81,027 286,650 188,901 575,037 Net income $ 1,074,446 $ 1,515,500 $ 2,052,106 $ 3,138,539
FFW Corporation Selected Financial Information
Key Balances and Ratios
Three Months Ended December 31 Six Months Ended December 31 2023 2022 2023 2022 Unaudited Unaudited Unaudited Unaudited Per common share data: Earnings $ 0.95 $ 1.34 $ 1.82 $ 2.76 Diluted earnings $ 0.95 $ 1.34 $ 1.82 $ 2.76 Dividends paid $ 0.29 $ 0.28 $ 0.58 $ 0.56 Average shares issued and outstanding 1,125,986 1,130,963 1,126,307 1,135,688 Shares outstanding end of period 1,125,453 1,130,963 1,125,453 1,130,963 Supplemental data: Net interest margin ** 2.69 % 3.25 % 2.72 % 3.31 % Return on average assets *** 0.78 % 1.13 % 0.75 % 1.17 % Return on average common equity *** 8.82 % 13.71 % 9.03 % 13.66 % December 31 June 30 2023 2023 Nonperforming assets * $ 3,543,958 $ 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
What were FFW Corporation's net income and earnings per share for the three months ended December 31, 2023?
The Corporation reported net income of $1,074,000 or $0.95 per common share for the three months ended December 31, 2023.
How did FFW Corporation's net interest income compare between the three months ended December 31, 2023, and the same period in 2022?
Net interest income for the three months ended December 31, 2023, was $3,633,000 compared to $4,248,000 for the three months ended December 31, 2022.
What was FFW Corporation's return on average common equity for the three and six months ended December 31, 2023?
The three and six months ended December 31, 2023, represented a return on average common equity of 8.82% and 9.03%, respectively.
What were FFW Corporation's total assets at December 31, 2023, and how did they compare to June 30, 2023?
Total assets at December 31, 2023, were $554,153,000 compared to $543,245,000 at June 30, 2023.
Is Crossroads Bank considered 'well capitalized'?
Yes, Crossroads Bank exceeds all applicable regulatory requirements to be considered 'well capitalized.'