FFW Corporation Announces Earnings for the Quarter and Year to Date Ended March 31, 2024

In this article:

WABASH, Ind., April 24, 2024 (GLOBE NEWSWIRE) -- FFW Corporation (the “Corporation”) (OTC PINK: FFWC) (4/23/2024 Close: $34.65), parent corporation of Crossroads Bank (the “Bank”), announced earnings for the quarter and year to date ended March 31, 2024.

For the three months ended March 31, 2024, the Corporation reported net income of $920,000 or $0.82 per common share compared to $1,216,000 or $1.07 per common share for the three months ended March 31, 2023. Net interest income for the three months ended March 31, 2024 was $3,536,000 compared to $3,975,000 for the three months ended March 31, 2023. The provision for credit losses was $0 for the three months ended March 31, 2024 compared to $75,000 for the three months ended March 31, 2023. Total noninterest income was $1,068,000 for the three months ended March 31, 2024 compared to $880,000 for the three months ended March 31, 2023. Noninterest expense was $3,609,000 for the three months ended March 31, 2024 and $3,478,000 for the three months ended March 31, 2023.

For the nine months ended March 31, 2024, the Corporation reported net income of $2,972,000 or $2.64 per common share compared to $4,355,000 or $3.84 per common share for the nine months ended March 31, 2023. Net interest income for the nine months ended March 31, 2024 was $10,813,000 compared to $12,599,000 for the nine months ended March 31, 2023. The Company recognized a provision for credit losses of $0 for the nine months ended March 31, 2024 and $475,000 for the nine months ended March 31, 2023. Total noninterest income was $3,007,000 for the nine months ended March 31, 2024 compared to $2,975,000 for the nine months ended March 31, 2023. Noninterest expense was $10,584,000 for the nine months ended March 31, 2024 and $10,084,000 for the nine months ended March 31, 2023.

The three and nine months ended March 31, 2024 represented a return on average common equity of 7.67% and 8.56%, respectively, compared to 10.47% and 12.59% for the three and nine month periods ended March 31, 2023. The three and nine months ended March 31, 2024 represented a return on average assets of 0.66% and 0.72%, respectively, compared to 0.93% and 1.09%, for the three and nine month periods ended March 31, 2023.

The allowance for credit losses as a percentage of gross loans receivable was 1.29% at March 31, 2024 compared to 1.23% at June 30, 2023. Nonperforming assets were $4,105,000 at March 31, 2024 compared to $2,065,000 at June 30, 2023.

As of March 31, 2024, FFWC’s equity-to-assets ratio was 8.62% compared to 8.54% at June 30, 2023. Total assets at March 31, 2024 were $556,704,000 compared to $543,245,000 at June 30, 2023. Shareholders’ equity was $47,963,000 at March 31, 2024 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

 

March 31

 

June 30

 

 

2024

 

2023

 

 

Unaudited

 

 

 

Assets

 

 

 

 

Cash and due from financial institutions

$

2,635,498

 

$

8,686,057

 

Interest-bearing deposits in other financial institutions

4,410,327

 

4,668,889

 

Cash and cash equivalents

7,045,825

 

13,354,946

 

 

 

 

 

 

Securities available for sale

107,185,861

 

110,063,452

 

Loans held for sale

158,000

 

80,000

 

Loans receivable, net of allowance for credit losses of $5,366,311 at

 

 

 

 

March 31, 2024 and $4,852,745 at June 30, 2023

410,645,871

 

390,544,236

 

Federal Home Loan Bank stock, at cost

1,289,700

 

1,289,700

 

Accrued interest receivable

2,718,842

 

2,648,368

 

Premises and equipment, net

7,762,148

 

8,121,511

 

Mortgage servicing rights

1,095,003

 

1,128,019

 

Cash surrender value of life insurance

12,619,809

 

10,086,476

 

Goodwill

1,213,898

 

1,213,898

 

Repossessed assets

1,250

 

109,596

 

Other assets

4,967,346

 

4,604,551

 

Total assets

$

        556,703,553

 

$

        543,244,753

 

 

 

 

 

 

Liabilities and shareholders' equity

 

 

 

 

Deposits

 

 

 

 

Noninterest-bearing

$

50,711,836

 

$

53,267,081

 

Interest-bearing

446,835,882

 

437,700,301

 

Total deposits

497,547,718

 

490,967,382

 

 

 

 

 

 

Borrowings

6,500,000

 

2,100,000

 

Accrued expenses and other liabilities

4,692,595

 

3,792,808

 

Total liabilities

508,740,313

 

496,860,190

 

 

 

 

 

 

Shareholders' equity

 

 

 

 

Common stock, $.01 par; 2,000,000 shares authorized;

 

 

 

 

Issued: 1,836,328; outstanding: 1,126,843 - March 31, 2024 and 1,126,357 - June 30, 2023

18,363

 

18,363

 

Additional paid-in capital

10,220,664

 

10,150,145

 

Retained earnings

60,903,966

 

59,406,634

 

Accumulated other comprehensive income (loss)

(10,532,232

)

(10,588,876

)

Treasury stock, at cost: 709,485 at March 31, 2024 and

 

 

 

 

709,971 shares at June 30, 2023

(12,647,521

)

(12,601,703

)

Total shareholders' equity

47,963,240

 

46,384,563

 

 

 

 

 

 

Total liabilities and shareholders' equity 

$

        556,703,553

 

$

        543,244,753

 


FFW Corporation
Selected Financial Information

Consolidated Statement of Income

 

 

Three Months Ended March 31

 

Nine Months Ended March 31

 

 

 

2024

2023

 

2024

 

2023

 

 

 

Unaudited

Unaudited

 

Unaudited

 

Unaudited

 

Interest and dividend income:

 

 

 

 

 

 

 

 

Loans, including fees

$

5,373,052

$

4,494,524

 

$

15,688,146

 

$

12,606,871

 

 

Taxable securities

508,864

477,067

 

1,493,040

 

1,381,213

 

 

Tax exempt securities

407,951

457,460

 

1,250,686

 

1,377,899

 

 

Other

57,616

76,502

 

189,900

 

360,583

 

 

Total interest and dividend income

6,347,483

5,505,553

 

18,621,772

 

15,726,566

 

 

 

 

 

 

 

 

 

 

Interest expense:

 

 

 

 

 

 

 

 

Deposits

2,746,943

1,526,134

 

7,680,525

 

3,121,684

 

 

Borrowings

64,888

4,665

 

128,357

 

6,037

 

 

Total interest expense

2,811,831

1,530,799

 

7,808,882

 

3,127,721

 

 

 

 

 

 

 

 

 

 

Net interest income

                     3,535,652

                     3,974,754

 

                   10,812,890

 

                   12,598,845

 

 

 

 

 

 

 

 

 

 

Provision for credit losses

-

75,000

 

-

 

475,000

 

 

 

 

 

 

 

 

 

 

Net interest income after provision for 

 

 

 

 

 

 

 

 

credit losses

                     3,535,652

                     3,899,754

 

                   10,812,890

 

                   12,123,845

 

 

 

 

 

 

 

 

 

 

Noninterest income:

 

 

 

 

 

 

 

 

Net gains (losses) on sales of securities

-

(3,633

)

-

 

(3,633

)

 

Net gains on sales of loans

28,349

12,710

 

71,755

 

151,602

 

 

Net gains (losses) on fixed assets

-

(20,533

)

-

 

(20,533

)

 

Net gains (losses) on sales of REO

-

(8,775

)

(37,006

)

3,066

 

 

Commission income

364,240

299,231

 

1,034,231

 

923,239

 

 

Service charges and fees

276,777

242,269

 

779,262

 

804,352

 

 

Earnings on life insurance

107,851

79,662

 

283,332

 

238,088

 

 

Other

291,081

278,705

 

874,958

 

879,123

 

 

Total noninterest income

1,068,298

879,636

 

3,006,532

 

2,975,304

 

 

 

 

 

 

 

 

 

 

Noninterest expense:

 

 

 

 

 

 

 

 

Salaries and benefits

1,942,761

1,913,505

 

5,726,167

 

5,551,802

 

 

Occupancy and equipment

323,582

320,444

 

950,172

 

932,825

 

 

Professional

116,840

109,579

 

359,794

 

326,487

 

 

Marketing

98,890

102,263

 

281,794

 

281,215

 

 

Deposit insurance premium

69,000

39,025

 

207,666

 

119,968

 

 

Regulatory assessment

10,345

8,511

 

31,035

 

24,690

 

 

Correspondent bank charges

25,675

21,650

 

69,885

 

66,073

 

 

Data processing

474,275

435,771

 

1,384,115

 

1,236,359

 

 

Printing, postage and supplies

64,214

65,940

 

219,432

 

221,267

 

 

Expense on life insurance

41,249

21,889

 

88,785

 

65,982

 

 

Contribution expense

20,946

20,248

 

40,881

 

40,124

 

 

Expense on REO

-

636

 

5,822

 

6,540

 

 

Other

421,267

418,077

 

1,217,961

 

1,210,389

 

 

Total noninterest expense

3,609,044

3,477,538

 

10,583,509

 

10,083,721

 

 

 

 

 

 

 

 

 

 

Income before income taxes

                        994,906

                     1,301,852

 

                     3,235,913

 

                     5,015,428

 

 

 

 

 

 

 

 

 

 

Income tax expense

75,100

85,468

 

264,001

 

660,505

 

 

 

 

 

 

 

 

 

 

Net income 

$

                      919,806

$

                   1,216,384

 

$

                   2,971,912

 

$

                   4,354,923

 

 

 

 

 

 

 

 

 

 


FFW Corporation
Selected Financial Information

Key Balances and Ratios

 

Three Months Ended March 31

Nine Months Ended March 31

 

2024

2023

2024

2023

 

Unaudited

Unaudited

Unaudited

Unaudited

Per common share data:

 

 

 

 

Earnings

$0.82

$1.07

$2.64

$3.84

Diluted earnings

$0.82

$1.07

$2.64

$3.84

Dividends paid

$0.29

$0.28

$0.87

$0.84

Average shares issued and outstanding

1,128,394

1,128,995

1,126,998

1,133,501

Shares outstanding end of period

1,126,843

1,127,357

1,126,843

1,127,357

 

 

 

 

 

Supplemental data:

 

 

 

 

Net interest margin **

2.66%

3.13%

2.70%

3.25%

Return on average assets ***

0.66%

0.93%

0.72%

1.09%

Return on average common equity ***

7.67%

10.47%

8.56%

12.59%

 

 

 

 

 

 

March 31

June 30

 

 

 

2024

2023

 

 

Nonperforming assets *

$4,105,121

$2,065,381

 

 

Repossessed assets

$1,250

$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


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