FFW Corporation Announces Earnings For the Quarter Ended September 30, 2022
October 26, 2022 at 08:32 pm IST
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WABASH, Ind., Oct. 26, 2022 (GLOBE NEWSWIRE) -- FFW Corporation (the “Corporation”) (OTC PINK: FFWC) (10/25/2022 Close: $45.46), parent corporation of Crossroads Bank (the “Bank”), announced earnings for the quarter ended September 30, 2022.
For the three months ended September 30, 2022, the Corporation reported net income of $1,623,000 or $1.42 per common share compared to $1,471,000 or $1.28 per common share for the three months ended September 30, 2021. Net interest income for the three months ended September 30, 2022 was $4,376,000 compared to $3,813,000 for the three months ended September 30, 2021. The provision for loan losses was $300,000 for the three months ended September 30, 2022 and $50,000 for the three months ended September 30, 2021. Total noninterest income was $1,026,000 for the three months ended September 30, 2022 compared to $1,213,000 for the three months ended September 30, 2021. Noninterest expense was $3,191,000 for the three months ended September 30, 2022 and $3,209,000 for the three months ended September 30, 2021.
The three months ended September 30, 2022 represented a return on average common equity of 13.61% compared to 10.72% for the three months ended September 30, 2021. The three months ended September 30, 2022 represented a return on average assets of 1.21% compared to 1.17% for the three months ended September 30, 2021.
The allowance for loan losses as a percentage of gross loans receivable was 1.24% at September 30, 2022 compared to 1.28% at June 30, 2022. Nonperforming assets were $2,035,000 at September 30, 2022 compared to $2,345,000 at June 30, 2022.
As of September 30, 2022, FFWC’s equity-to-assets ratio was 8.23% compared to 8.72% at June 30, 2022. Total assets at September 30, 2022 were $527,573,000 compared to $534,918,000 at June 30, 2022. Shareholders’ equity was $43,444,000 at September 30, 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 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
2022
2022
Unaudited
Assets
Cash and due from financial institutions
$
5,776,634
$
7,122,187
Interest-bearing deposits in other financial institutions
10,849,260
48,456,109
Cash and cash equivalents
16,625,894
55,578,296
Securities available for sale
114,236,507
115,717,308
Loans held for sale
594,050
248,000
Loans receivable, net of allowance for loan losses of $4,625,109 at September 30, 2022 and $4,342,121 at June 30, 2022
366,890,844
335,672,317
Federal Home Loan Bank stock, at cost
1,289,700
1,289,700
Accrued interest receivable
2,274,881
2,105,470
Premises and equipment, net
8,416,156
8,481,385
Mortgage servicing rights
1,133,989
1,138,165
Cash surrender value of life insurance
9,846,096
9,767,792
Goodwill
1,213,898
1,213,898
Repossessed Assets
9,325
75,025
Other assets
5,041,538
3,630,737
Total assets
$
527,572,878
$
534,918,093
Liabilities and shareholders' equity
Deposits
Noninterest-bearing
$
55,744,751
$
55,960,708
Interest-bearing
424,962,052
428,550,708
Total deposits
480,706,803
484,511,416
Accrued expenses and other liabilities
3,422,327
3,758,195
Total liabilities
484,129,130
488,269,611
Shareholders' equity
Common stock, $.01 par; 2,000,000 shares authorized;
Issued: 1,836,328; outstanding: 1,130,963 - September 30, 2022 and 1,140,305 - June 30, 2022
18,363
18,363
Additional paid-in capital
9,980,148
9,940,774
Retained earnings
57,688,196
56,384,625
Accumulated other comprehensive income (loss)
(11,815,295
)
(7,726,089
)
Treasury stock, at cost: 705,365 shares at September 30, 2022 and 696,023 shares at June 30, 2022
(12,427,664
)
(11,969,191
)
Total shareholders' equity
43,443,748
46,648,482
Total liabilities and shareholders' equity
$
527,572,878
$
534,918,093
FFW Corporation Selected Financial Information
Consolidated Statement of Income
Three Months Ended September 30
2022
2021
Unaudited
Unaudited
Interest and dividend income:
Loans, including fees
$
3,869,513
$
3,392,516
Taxable securities
441,825
354,571
Tax exempt securities
451,630
414,258
Other
161,572
18,753
Total interest and dividend income
4,924,540
4,180,098
Interest expense:
Deposits
548,353
366,671
Total interest expense
548,353
366,671
Net interest income
4,376,187
3,813,427
Provision for loan losses
300,000
50,000
Net interest income after provision for loan losses
4,076,187
3,763,427
Noninterest income:
Net gains on sales of loans
68,146
282,663
Net gains (losses) on sales of REO
11,841
(7,016
)
Commission income
318,420
322,604
Service charges and fees
279,430
263,230
Earnings on life insurance
78,304
76,365
Other
269,796
275,308
Total noninterest income
1,025,937
1,213,154
Noninterest expense:
Salaries and benefits
1,770,667
1,712,210
Occupancy and equipment
307,383
326,016
Professional
109,251
118,919
Marketing
93,974
112,368
Deposit insurance premium
38,000
33,000
Regulatory assessment
8,090
9,360
Correspondent bank charges
22,416
19,524
Data processing
331,142
419,272
Printing, postage and supplies
77,812
72,284
Expense on life insurance
22,099
21,432
Contribution expense
9,501
21,014
Expense on REO
4,783
(3,936
)
Other
395,580
347,038
Total noninterest expense
3,190,698
3,208,501
Income before income taxes
1,911,426
1,768,080
Income tax expense
288,387
297,536
Net income
$
1,623,039
$
1,470,544
FFW Corporation Selected Financial Information
Key Balances and Ratios
Three Months Ended September 30
2022
2021
Unaudited
Unaudited
Per common share data:
Earnings
$
1.42
$
1.28
Diluted earnings
$
1.42
$
1.28
Dividends paid
$
0.28
$
0.26
Average shares issued and outstanding
1,140,413.0
1,145,204.0
Shares outstanding end of period
1,130,963.0
1,143,377.0
Supplemental data:
Net interest margin **
3.37
%
3.23
%
Return on average assets ***
1.21
%
1.17
%
Return on average common equity ***
13.61
%
10.72
%
September 30
June 30
2022
2022
Nonperforming assets *
$
2,035,344
$
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: Roger Cromer, President, 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.