FFW Corporation Announces Earnings for the Fiscal Year Ended June 30, 2023
Published
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