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 30June 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 
 UnauditedUnaudited
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 
 UnauditedUnaudited
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 30June 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


Source: FFW Corporation

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