WABASH, Ind., Jan. 24, 2024 (GLOBE NEWSWIRE) -- FFW Corporation (the “Corporation”) (OTC PINK: FFWC) (1/23/24 Close: $34.55), parent corporation of Crossroads Bank (the “Bank”), announced earnings for the quarter and year to date ended December 31, 2023.
For the three months ended December 31, 2023, the Corporation reported net income of $1,074,000 or $0.95 per common share compared to $1,516,000 or $1.34 per common share for the three months ended December 31, 2022. Net interest income for the three months ended December 31, 2023 was $3,633,000 compared to $4,248,000 for the three months ended December 31, 2022. The provision for credit losses was $0 for the three months ended December 31, 2023 and $100,000 for the three months ended December 31, 2022. Total noninterest income was $1,010,000 for the three months ended December 31, 2023 compared to $1,070,000 for the three months ended December 31, 2022. Noninterest expense was $3,487,000 for the three months ended December 31, 2023 and $3,415,000 for the three months ended December 31, 2022.
For the six months ended December 31, 2023, the Corporation reported net income of $2,052,000 or $1.82 per common share compared to $3,139,000 or $2.76 per common share for the six months ended December 31, 2022. Net interest income for the six months ended December 31, 2023 was $7,277,000 compared to $8,624,000 for the six months ended December 31, 2022. The Company recognized a provision for credit losses of $0 for the six months ended December 31, 2023 and $400,000 for the six months ended December 31, 2022. Total noninterest income was $1,938,000 for the six months ended December 31, 2023 compared to $2,096,000 for the six months ended December 31, 2022. Noninterest expense was $6,974,000 for the six months ended December 31, 2023 and $6,606,000 for the six months ended December 31, 2022.
The three and six months ended December 31, 2023 represented a return on average common equity of 8.82% and 9.03%, respectively, compared to 13.71% and 13.66% for the three and six month periods ended December 31, 2022. The three and six months ended December 31, 2023 represented a return on average assets of 0.78% and 0.75%, respectively, compared to 1.13% and 1.17%, for the three and six month periods ended December 31, 2022.
The allowance for credit losses as a percentage of gross loans receivable was 1.31% at December 31, 2023 compared to 1.23% at June 30, 2023. Nonperforming assets were $3,544,000 at December 31, 2023 compared to $2,065,000 at June 30, 2023.
As of December 31, 2023, FFWC’s equity-to-assets ratio was 8.75% compared to 8.54% at June 30, 2023. Total assets at December 31, 2023 were $554,153,000 compared to $543,245,000 at June 30, 2023. Shareholders’ equity was $48,475,000 at December 31, 2023 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
December 31
June 30
2023
2023
Unaudited
Assets
Cash and due from financial institutions
$
5,816,491
$
8,686,057
Interest-bearing deposits in other financial institutions
2,714,634
4,668,889
Cash and cash equivalents
8,531,125
13,354,946
Securities available for sale
109,124,615
110,063,452
Loans held for sale
218,200
80,000
Loans receivable, net of allowance for credit losses of $5,382,830 at
December 31, 2023 and $4,852,745 at June 30, 2023
404,905,627
390,544,236
Federal Home Loan Bank stock, at cost
1,289,700
1,289,700
Accrued interest receivable
2,779,664
2,648,368
Premises and equipment, net
7,918,415
8,121,511
Mortgage servicing rights
1,095,003
1,128,019
Cash surrender value of life insurance
12,511,958
10,086,476
Goodwill
1,213,898
1,213,898
Repossessed Assets
-
109,596
Other assets
4,564,887
4,604,551
Total assets
$
554,153,092
$
543,244,753
Liabilities and shareholders' equity
Deposits
Noninterest-bearing
$
51,506,811
$
53,267,081
Interest-bearing
446,214,997
437,700,301
Total deposits
497,721,808
490,967,382
Borrowings
3,400,000
2,100,000
Accrued expenses and other liabilities
4,556,577
3,792,808
Total liabilities
505,678,385
496,860,190
Shareholders' equity
Common stock, $.01 par; 2,000,000 shares authorized;
Issued: 1,836,328; outstanding: 1,125,453 - December 31, 2023 and 1,126,357 - June 30, 2023
18,363
18,363
Additional paid-in capital
10,246,688
10,150,145
Retained earnings
60,310,943
59,406,634
Accumulated other comprehensive income (loss)
(9,473,930
)
(10,588,876
)
Treasury stock, at cost: 710,875 shares at December 31, 2023
and 709,971 shares at June 30, 2023
(12,627,357
)
(12,601,703
)
Total shareholders' equity
48,474,707
46,384,563
Total liabilities and shareholders' equity
$
554,153,092
$
543,244,753
FFW Corporation Selected Financial Information
Consolidated Statement of Income
Three Months Ended December 31
Six Months Ended December 31
2023
2022
2023
2022
Unaudited
Unaudited
Unaudited
Unaudited
Interest and dividend income:
Loans, including fees
$
5,283,343
$
4,242,834
$
10,315,094
$
8,112,347
Taxable securities
495,056
462,321
984,176
904,146
Tax exempt securities
419,116
468,809
842,735
920,439
Other
74,910
122,509
132,284
284,081
Total interest and dividend income
6,272,425
5,296,473
12,274,289
10,221,013
Interest expense:
Deposits
2,601,732
1,047,197
4,933,582
1,595,550
Borrowings
38,140
1,372
63,469
1,372
Total interest expense
2,639,872
1,048,569
4,997,051
1,596,922
Net interest income
3,632,553
4,247,904
7,277,238
8,624,091
Provision for credit losses
-
100,000
-
400,000
Net interest income after provision for
credit losses
3,632,553
4,147,904
7,277,238
8,224,091
Noninterest income:
Net gains on sales of loans
22,292
70,746
43,406
138,892
Net gains (losses) on sales of REO
-
-
(37,006
)
11,841
Commission income
334,542
305,588
669,991
624,008
Service charges and fees
256,951
282,653
502,485
562,083
Earnings on life insurance
94,612
80,122
175,481
158,426
Other
301,568
330,622
583,877
600,418
Total noninterest income
1,009,965
1,069,731
1,938,234
2,095,668
Noninterest expense:
Salaries and benefits
1,869,210
1,867,630
3,783,406
3,638,297
Occupancy and equipment
309,349
304,998
626,590
612,381
Professional
121,300
107,657
242,954
216,908
Marketing
101,328
84,978
182,904
178,952
Deposit insurance premium
71,666
42,943
138,666
80,943
Regulatory assessment
10,345
8,089
20,690
16,179
Correspondent bank charges
20,269
22,007
44,210
44,423
Data processing
458,873
469,446
909,840
800,588
Printing, postage and supplies
87,518
77,515
155,218
155,327
Expense on life insurance
24,740
21,994
47,536
44,093
Contribution expense
10,226
10,375
19,935
19,876
Expense on REO
-
1,121
5,822
5,904
Other
402,221
396,732
796,694
792,312
Total noninterest expense
3,487,045
3,415,485
6,974,465
6,606,183
Income before income taxes
1,155,473
1,802,150
2,241,007
3,713,576
Income tax expense
81,027
286,650
188,901
575,037
Net income
$
1,074,446
$
1,515,500
$
2,052,106
$
3,138,539
FFW Corporation Selected Financial Information
Key Balances and Ratios
Three Months Ended December 31
Six Months Ended December 31
2023
2022
2023
2022
Unaudited
Unaudited
Unaudited
Unaudited
Per common share data:
Earnings
$
0.95
$
1.34
$
1.82
$
2.76
Diluted earnings
$
0.95
$
1.34
$
1.82
$
2.76
Dividends paid
$
0.29
$
0.28
$
0.58
$
0.56
Average shares issued and outstanding
1,125,986
1,130,963
1,126,307
1,135,688
Shares outstanding end of period
1,125,453
1,130,963
1,125,453
1,130,963
Supplemental data:
Net interest margin **
2.69
%
3.25
%
2.72
%
3.31
%
Return on average assets ***
0.78
%
1.13
%
0.75
%
1.17
%
Return on average common equity ***
8.82
%
13.71
%
9.03
%
13.66
%
December 31
June 30
2023
2023
Nonperforming assets *
$
3,543,958
$
2,065,381
Repossessed assets
$
0
$
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
