WABASH, Ind., Jan. 26, 2022 (GLOBE NEWSWIRE) -- FFW Corporation (the “Corporation”) (OTC PINK: FFWC) (1/25/2022 Close: $46.95), parent corporation of Crossroads Bank (the “Bank”), announced earnings for the quarter and year to date ended December 31, 2021.

For the three months ended December 31, 2021, the Corporation reported net income of $1,358,000 or $1.19 per common share compared to $1,774,000 or $1.55 per common share for the three months ended December 31, 2020. Net interest income for the three months ended December 31, 2021 was $3,780,000 compared to $3,727,000 for the three months ended December 31, 2020. The provision for loan losses was $80,000 for the three months ended December 31, 2021 and $165,000 for the three months ended December 31, 2020. Total noninterest income was $1,032,000 for the three months ended December 31, 2021 compared to $1,814,000 for the three months ended December 31, 2020. Noninterest expense was $3,219,000 for the three months ended December 31, 2021 and $3,260,000 for the three months ended December 31, 2020.

For the six months ended December 31, 2021, the Corporation reported net income of $2,828,000 or $2.47 per common share compared to $3,521,000 or $3.08 per common share for the six months ended December 31, 2020. Net interest income for the six months ended December 31, 2021 was $7,593,000 compared to $7,434,000 for the six months ended December 31, 2020. The Company recognized a provision for loan losses of $130,000 for the six months ended December 31, 2021 and $330,000 for the six months ended December 31, 2020. Total noninterest income was $2,245,000 for the six months ended December 31, 2021 compared to $3,795,000 for the six months ended December 31, 2020. Noninterest expense was $6,427,000 for the six months ended December 31, 2021 and $6,686,000 for the six months ended December 31, 2020.

The three and six months ended December 31, 2021 represented a return on average common equity of 9.92% and 10.32%, respectively, compared to 13.66% and 13.69% for the three and six month periods ended December 31, 2020. The three and six months ended December 31, 2021 represented a return on average assets of 1.03% and 1.10%, respectively, compared to 1.46% and 1.47%, for the three and six month periods ended December 31, 2020.

The allowance for loan losses as a percentage of gross loans receivable was 1.35% at December 31, 2021 compared to 1.43% at June 30, 2021. Nonperforming assets were $2,921,000 at December 31, 2021 compared to $3,242,000 at June 30, 2021.

As of December 31, 2021, FFWC’s equity-to-assets ratio was 10.42% compared to 10.89% at June 30, 2021. Total assets at December 31, 2021 were $521,625,000 compared to $486,442,000 at June 30, 2021. Shareholders’ equity was $54,332,000 at December 31, 2021 compared to $52,954,000 at June 30, 2020. 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. Crossroads Bank, Member FDIC.


FFW Corporation
Selected Financial Information

Consolidated Balance Sheet

 December 31 June 30 
 2021 2021 
 Unaudited   
Assets    
Cash and due from financial institutions$            6,153,813 $            4,779,188 
Interest-bearing deposits in other financial institutions64,506,271 51,646,720 
Cash and cash equivalents70,660,084 56,425,908 
     
Securities available for sale114,818,062 116,335,455 
Loans receivable, net of allowance for loan losses of $4,252,370 at    
December 31, 2021 and $4,168,689 at June 30, 2021310,761,100 285,643,064 
Loans held for sale54,501 2,613,987 
Federal Home Loan Bank stock, at cost1,462,500 1,462,500 
Accrued interest receivable2,087,995 2,131,744 
Premises and equipment, net8,717,373 8,949,842 
Mortgage servicing rights1,033,145 1,011,046 
Cash surrender value of life insurance9,613,392 9,459,746 
Goodwill1,213,898 1,213,898 
Repossessed Assets58,953 148,621 
Other assets1,143,749 1,045,876 
Total assets$        521,624,752 $        486,441,687 
     
Liabilities and shareholders' equity    
Deposits    
Noninterest-bearing$          50,431,524 $          49,510,375 
Interest-bearing412,858,678 380,084,790 
Total deposits463,290,202 429,595,165 
     
Accrued expenses and other liabilities4,002,546 3,892,719 
Total liabilities467,292,748 433,487,884 
     
Shareholders' equity    
Common stock, $.01 par; 2,000,000 shares authorized;    
Issued: 1,836,328; outstanding: 1,143,377 - December 31, 2021 and 1,141,190 - June 30, 202118,363 18,363 
Additional paid-in capital9,834,406 9,809,754 
Retained earnings54,085,891 51,852,194 
Accumulated other comprehensive income2,220,454 3,058,832 
Treasury stock, at cost: 692,951 shares at December 31, 2021 and 695,138    
shares at June 30, 2021(11,827,110)(11,785,340)
Total shareholders' equity54,332,004 52,953,803 
     
Total liabilities and shareholders' equity $        521,624,752 $        486,441,687 
     


FFW Corporation
Selected Financial Information

Consolidated Statement of Income

 Three Months Ended December 31Six Months Ended December 31 
 2021202020212020 
 UnauditedUnauditedUnauditedUnaudited 
Interest and dividend income:     
Loans, including fees$                  3,362,773$                  3,559,989$                  6,755,289$                  7,164,305 
Taxable securities331,914321,319686,485654,512 
Tax exempt securities407,372417,657821,630789,928 
Other25,0969,72843,84917,509 
Total interest and dividend income4,127,1554,308,6938,307,2538,626,254 
      
Interest expense:     
Deposits347,651581,261714,3221,192,646 
Borrowings1-1- 
Total interest expense347,652581,261714,3231,192,646 
      
Net interest income                     3,779,503                     3,727,432                     7,592,930                     7,433,608 
      
Provision for loan losses80,000165,000130,000330,000 
      
Net interest income after provision for loan losses                     3,699,503                     3,562,432                     7,462,930                     7,103,608 
      
Noninterest income:     
Net gains on sales of securities---98,467 
Net gains on sales of loans72,1631,013,356354,8262,208,842 
Net gains (losses) on fixed assets10,2509,20410,2509,204 
Net gains (losses) on sales of REO13,770-6,754(6,535)
Commission income313,632281,325636,236571,403 
Service charges and fees246,442199,419509,672294,838 
Earnings on life insurance77,28275,379153,647149,820 
Other298,788235,103574,096469,446 
Total noninterest income1,032,3271,813,7862,245,4813,795,485 
      
Noninterest expense:     
Salaries and benefits1,778,9041,714,4033,491,1143,475,467 
Occupancy and equipment320,454321,365646,470664,459 
Professional106,23192,608225,150153,194 
Marketing105,686108,652218,054222,593 
Deposit insurance premium33,00033,00066,00066,000 
Regulatory assessment9,3609,30118,72018,602 
Correspondent bank charges19,18617,14638,71034,663 
Data processing413,164400,688832,436821,270 
Printing, postage and supplies75,99472,084148,278167,496 
Expense on life insurance21,33215,84942,76431,698 
Contribution expense10,51311,88731,52727,275 
Expense on REO4,9613,2581,0258,039 
Other319,979459,435667,017994,748 
Total noninterest expense3,218,7643,259,6766,427,2656,685,504 
      
Income before income taxes                     1,513,066                     2,116,542                     3,281,146                     4,213,589 
      
Income tax expense155,358342,970452,894692,487 
      
Net income $                   1,357,708$                   1,773,572$                   2,828,252$                   3,521,102 
      


FFW Corporation
Selected Financial Information

Key Balances and Ratios

  Three Months Ended December 31Six Months Ended December 31
  2021202020212020
  UnauditedUnauditedUnauditedUnaudited
Per common share data:    
Earnings$1.19$1.55$2.47$3.08
Diluted earnings$1.19$1.55$2.47$3.08
Dividends paid$0.26$0.25$0.52$0.50
Average shares issued and outstanding1,143,3771,142,6901,144,2911,142,690
Shares outstanding end of period1,143,3771,142,6901,143,3771,142,690
      
Supplemental data:    
Net interest margin **3.07%3.30%3.15%3.34%
Return on average assets ***1.03%1.46%1.10%1.47%
Return on average common equity ***9.92%13.66%10.32%13.69%
      
  December 31June 30  
  20212021  
Nonperforming assets *$2,920,997$3,241,581  
Repossessed assets$58,953$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