FFW Corporation Announces Earnings for the Fiscal Year Ended June 30, 2023
August 08, 2023 at 11:44 am
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WABASH, Ind., Aug. 08, 2023 (GLOBE NEWSWIRE) -- FFW Corporation (the “Corporation”) (OTC PINK: FFWC) (8/7/23 Close: $39.50), parent corporation of Crossroads Bank (the “Bank”), announced earnings for the fiscal year ended June 30, 2023.
For the three months ended June 30, 2023, the Corporation reported net income of $1,343,000 or $1.19 per common share compared to $1,523,000 or $1.33 per common share for the three months ended June 30, 2022. Net interest income for the three months ended June 30, 2023 was $3,800,000 compared to $4,071,000 for the three months ended June 30, 2022. The provision for loan losses was $75,000 for the three months ended June 30, 2023 and $200,000 for the three months ended June 30, 2022. Total noninterest income was $1,030,000 for the three months ended June 30, 2023 compared to $1,075,000 for the three months ended June 30, 2022. Noninterest expense was $3,349,000 for the three months ended June 30, 2023 and $3,215,000 for the three months ended June 30, 2022.
For the twelve months ended June 30, 2023, the Corporation reported net income of $5,698,000 or $5.03 per common share compared to $5,721,000 or $5.00 per common share for the twelve months ended June 30, 2022. Net interest income for the twelve months ended June 30, 2023 was $15,849,000 compared to $15,409,000 for the twelve months ended June 30, 2022. The Company recognized a provision for loan losses of $550,000 for the twelve months ended June 30, 2023 and $405,000 for the twelve months ended June 30, 2022. Total noninterest income was $4,005,000 for the twelve months ended June 30, 2023 compared to $4,441,000 for the twelve months ended June 30, 2022. Noninterest expense was $13,433,000 for the twelve months ended June 30, 2023 and $12,933,000 for the twelve months ended June 30, 2022.
The three and twelve months ended June 30, 2023 represented a return on average common equity of 11.30% and 12.26%, respectively, compared to 12.63% and 10.85% for the three and twelve month periods ended June 30, 2022. The three and twelve months ended June 30, 2023 represented a return on average assets of 0.99% and 1.07%, respectively, compared to 1.16% and 1.10% for the three and twelve month periods ended June 30, 2022.
The allowance for loan losses as a percentage of gross loans receivable was 1.23% at June 30, 2023 compared to 1.28% at June 30, 2022. Nonperforming assets were $2,065,000 at June 30, 2023 compared to $2,345,000 at June 30, 2022.
As of June 30, 2023, FFWC’s equity-to-assets ratio was 8.54% compared to 8.72% at June 30, 2022. Total assets at June 30, 2023 were $543,245,000 compared to $534,918,000 at June 30, 2022. Shareholders’ equity was $46,385,000 at June 30, 2023 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
June 30
June 30
2023
2022
Unaudited
Assets
Cash and due from financial institutions
$
8,686,057
$
7,122,187
Interest-bearing deposits in other financial institutions
4,668,889
48,456,109
Cash and cash equivalents
13,354,946
55,578,296
Securities available for sale
110,063,452
115,717,308
Loans held for sale
80,000
248,000
Loans receivable, net of allowance for loan losses of $4,852,745 at June 30, 2023 and $4,342,121 at June 30, 2022
390,544,236
335,672,317
Federal Home Loan Bank stock, at cost
1,289,700
1,289,700
Accrued interest receivable
2,648,368
2,105,470
Premises and equipment, net
8,121,511
8,481,385
Mortgage servicing rights
1,128,019
1,138,165
Cash surrender value of life insurance
10,086,476
9,767,792
Goodwill
1,213,898
1,213,898
Repossessed Assets
109,596
75,025
Other assets
4,604,551
3,630,737
Total assets
$
543,244,753
$
534,918,093
Liabilities and shareholders' equity
Deposits
Noninterest-bearing
$
53,267,081
$
55,960,708
Interest-bearing
437,700,301
428,550,708
Total deposits
490,967,382
484,511,416
Borrowings
2,100,000
-
Accrued expenses and other liabilities
3,792,808
3,758,195
Total liabilities
496,860,190
488,269,611
Shareholders' equity
Common stock, $.01 par; 2,000,000 shares authorized;
Issued: 1,836,328; outstanding: 1,126,357 - June 30, 2023 and 1,140,305 - June 30, 2022
18,363
18,363
Additional paid-in capital
10,150,145
9,940,774
Retained earnings
59,406,634
56,384,625
Accumulated other comprehensive income (loss)
(10,588,876
)
(7,726,089
)
Treasury stock, at cost: 709,971 shares at June 30, 2023 and 696,023 shares at June 30, 2022
(12,601,703
)
(11,969,191
)
Total shareholders' equity
46,384,563
46,648,482
Total liabilities and shareholders' equity
$
543,244,753
$
534,918,093
FFW Corporation
Selected Financial Information
Consolidated Statement of Income
Three Months Ended June 30
Twelve Months Ended June 30
2023
2022
2023
2022
Unaudited
Unaudited
Unaudited
Unaudited
Interest and dividend income:
Loans, including fees
$
4,797,377
$
3,562,772
$
17,404,248
$
13,660,543
Taxable securities
483,668
341,548
1,864,881
1,317,675
Tax exempt securities
426,926
423,846
1,804,825
1,652,828
Other
188,303
128,452
548,886
197,815
Total interest and dividend income
5,896,274
4,456,618
21,622,840
16,828,861
Interest expense:
Deposits
2,095,131
385,508
5,216,815
1,419,669
Borrowings
1,059
200
7,096
201
Total interest expense
2,096,190
385,708
5,223,911
1,419,870
Net interest income
3,800,084
4,070,910
16,398,929
15,408,991
Provision for loan losses
75,000
200,000
550,000
405,000
Net interest income after provision for loan losses
3,725,084
3,870,910
15,848,929
15,003,991
Noninterest income:
Net gains (losses) on sales of securities
-
-
(3,633
)
-
Net gains on sales of loans
15,397
75,450
166,999
523,219
Net gains (losses) on fixed assets
-
-
(20,533
)
34,283
Net gains (losses) on sales of REO
18,039
(17,909
)
21,105
(6,623
)
Commission income
374,866
337,665
1,298,105
1,279,202
Service charges and fees
248,318
275,763
1,052,670
1,135,426
Earnings on life insurance
80,596
77,651
318,684
308,047
Other
292,868
326,669
1,171,991
1,167,426
Total noninterest income
1,030,084
1,075,289
4,005,388
4,440,980
Noninterest expense:
Salaries and benefits
1,789,700
1,815,040
7,341,502
7,100,728
Occupancy and equipment
314,274
313,309
1,247,099
1,298,461
Professional
146,533
111,887
473,020
448,694
Marketing
83,207
90,882
364,422
394,013
Deposit insurance premium
82,000
38,304
201,968
140,752
Regulatory assessment
8,090
9,074
32,780
37,379
Correspondent bank charges
21,641
22,200
87,714
80,724
Data processing
419,607
337,292
1,655,966
1,584,725
Printing, postage and supplies
57,018
73,382
278,285
293,419
Expense on life insurance
21,785
21,132
87,767
85,128
Contribution expense
8,876
11,676
49,000
65,583
Expense on REO
2,837
5,412
9,377
7,505
Other
393,378
365,584
1,603,767
1,396,052
Total noninterest expense
3,348,946
3,215,174
13,432,667
12,933,163
Income before income taxes
1,406,222
1,731,025
6,421,650
6,511,808
Income tax expense
63,249
207,572
723,754
791,077
Net income
$
1,342,973
$
1,523,453
$
5,697,896
$
5,720,731
FFW Corporation
Selected Financial Information
Key Balances and Ratios
Three Months Ended June 30
Twelve Months Ended June 30
2023
2022
2023
2022
Unaudited
Unaudited
Unaudited
Unaudited
Per common share data:
Earnings
$1.19
$1.33
$5.03
$5.00
Diluted earnings
$1.19
$1.33
$5.03
$5.00
Dividends paid
$1.53
$0.26
$2.37
$1.04
Average shares issued and outstanding
1,126,522
1,141,763
1,131,761
1,143,428
Shares outstanding end of period
1,126,357
1,140,305
1,126,357
1,140,305
Supplemental data:
Net interest margin **
2.85
%
3.15
%
3.15
%
3.12
%
Return on average assets ***
0.99
%
1.16
%
1.07
%
1.10
%
Return on average common equity ***
11.30
%
12.63
%
12.26
%
10.85
%
June 30
June 30
2023
2022
Nonperforming assets *
$2,065,381
$2,344,693
Repossessed assets
$109,596
$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: Kirsten Pendarvis, Treasurer, 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.