FFW Corporation Announces Earnings for the Quarter and Year to Date Ended December 31, 2023

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

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