FFW Corporation Announces Earnings For The Quarter And Year ...| MENAFN.COM

Saturday, 04 February 2023 10:56 GMT

FFW Corporation Announces Earnings For The Quarter And Year To Date Ended December 31, 2022


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WABASH, Ind., Jan. 25, 2023 (GLOBE NEWSWIRE) -- FFW Corporation (the“Corporation”) (OTC PINK: FFWC) (1/24/2023 Close: $44.50) , parent corporation of Crossroads Bank (the“Bank”), announced earnings for the quarter and year to date ended December 31, 2022.

For the three months ended December 31, 2022, the Corporation reported net income of $1,516,000 or $1.34 per common share compared to $1,358,000 or $1.19 per common share for the three months ended December 31, 2021. Net interest income for the three months ended December 31, 2022 was $4,248,000 compared to $3,780,000 for the three months ended December 31, 2021. The provision for loan losses was $100,000 for the three months ended December 31, 2022 and $80,000 for the three months ended December 31, 2021. Total noninterest income was $1,070,000 for the three months ended December 31, 2022 compared to $1,032,000 for the three months ended December 31, 2021. Noninterest expense was $3,415,000 for the three months ended December 31, 2022 and $3,219,000 for the three months ended December 31, 2021.

For the six months ended December 31, 2022, the Corporation reported net income of $3,139,000 or $2.76 per common share compared to $2,828,000 or $2.47 per common share for the six months ended December 31, 2021. Net interest income for the six months ended December 31, 2022 was $8,624,000 compared to $7,593,000 for the six months ended December 31, 2021. The Company recognized a provision for loan losses of $400,000 for the six months ended December 31, 2022 and $130,000 for the six months ended December 31, 2021. Total noninterest income was $2,096,000 for the six months ended December 31, 2022 compared to $2,245,000 for the six months ended December 31, 2021. Noninterest expense was $6,606,000 for the six months ended December 31, 2022 and $6,427,000 for the six months ended December 31, 2021.

The three and six months ended December 31, 2022 represented a return on average common equity of 13.71% and 13.66%, respectively, compared to 9.92% and 10.32% for the three and six month periods ended December 31, 2021. The three and six months ended December 31, 2022 represented a return on average assets of 1.14% and 1.17%, respectively, compared to 1.03% and 1.10%, for the three and six month periods ended December 31, 2021.

The allowance for loan losses as a percentage of gross loans receivable was 1.25% at December 31, 2022 compared to 1.28% at June 30, 2022. Nonperforming assets were $2,083,000 at December 31, 2022 compared to $2,344,000 at June 30, 2022.

As of December 31, 2022, FFWC's equity-to-assets ratio was 8.47% compared to 8.72% at June 30, 2022. Total assets at December 31, 2022 were $538,328,000 compared to $534,918,000 at June 30, 2022. Shareholders' equity was $45,610,000 at December 31, 2022 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 twelve 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 . Crossroads Bank, Member FDIC.


FFW Corporation
Selected Financial Information

Consolidated Balance Sheet

December 31 June 30
2022 2022
Unaudited
Assets
Cash and due from financial institutions $ 14,971,688 $ 7,122,187
Interest-bearing deposits in other financial institutions 2,223,198 48,456,109
Cash and cash equivalents 17,194,886 55,578,296
Securities available for sale 117,703,726 115,717,308
Loans held for sale - 248,000
Loans receivable, net of allowance for loan losses of $4,722,103 at
December 31, 2022 and $4,342,121 at June 30, 2022 374,270,599 335,672,317
Federal Home Loan Bank stock, at cost 1,289,700 1,289,700
Accrued interest receivable 2,532,043 2,105,470
Premises and equipment, net 8,372,618 8,481,385
Mortgage servicing rights 1,162,121 1,138,165
Cash surrender value of life insurance 9,926,218 9,767,792
Goodwill 1,213,898 1,213,898
Repossessed Assets 9,325 75,025
Other assets 4,652,723 3,630,737
Total assets $ 538,327,857 $ 534,918,093
Liabilities and shareholders' equity
Deposits
Noninterest-bearing $ 64,065,472 $ 55,960,708
Interest-bearing 422,170,715 428,550,708
Total deposits 486,236,187 484,511,416
Borrowings 3,100,000 -
Accrued expenses and other liabilities 3,381,934 3,758,195
Total liabilities 492,718,121 488,269,611
Shareholders' equity
Common stock, $.01 par; 2,000,000 shares authorized;
Issued: 1,836,328; outstanding: 1,130,963 - December 31, 2022 and 1,140,305 - June 30, 2022 18,363 18,363
Additional paid-in capital 10,030,575 9,940,774
Retained earnings 58,887,026 56,384,625
Accumulated other comprehensive income (loss) (10,898,564 ) (7,726,089 )
Treasury stock, at cost: 705,365 shares at December 31, 2022 and
696,023 shares at June 30, 2022 (12,427,664 ) (11,969,191 )
Total shareholders' equity 45,609,736 46,648,482
Total liabilities and shareholders' equity $ 538,327,857 $ 534,918,093


FFW Corporation
Selected Financial Information

Consolidated Statement of Income

Three Months Ended December 31 Six Months Ended December 31
2022 2021 2022 2021
Unaudited Unaudited Unaudited Unaudited
Interest and dividend income:
Loans, including fees $ 4,242,834 $ 3,362,773 $ 8,112,347 $ 6,755,289
Taxable securities 462,321 331,914 904,146 686,485
Tax exempt securities 468,809 407,372 920,439 821,630
Other 122,509 25,096 284,081 43,849
Total interest and dividend income 5,296,473 4,127,155 10,221,013 8,307,253
Interest expense:
Deposits 1,047,197 347,651 1,595,550 714,322
Borrowings 1,372 1 1,372 1
Total interest expense 1,048,569 347,652 1,596,922 714,323
Net interest income 4,247,904 3,779,503 8,624,091 7,592,930
Provision for loan losses 100,000 80,000 400,000 130,000
Net interest income after provision for
loan losses 4,147,904 3,699,503 8,224,091 7,462,930
Noninterest income:
Net gains on sales of loans 70,746 72,163 138,892 354,826
Net gains (losses) on fixed assets - 10,250 - 10,250
Net gains (losses) on sales of REO - 13,770 11,841 6,754
Commission income 305,588 313,632 624,008 636,236
Service charges and fees 282,653 246,442 562,083 509,672
Earnings on life insurance 80,122 77,282 158,426 153,647
Other 330,622 298,788 600,418 574,096
Total noninterest income 1,069,731 1,032,327 2,095,668 2,245,481
Noninterest expense:
Salaries and benefits 1,867,630 1,778,904 3,638,297 3,491,114
Occupancy and equipment 304,998 320,454 612,381 646,470
Professional 107,657 106,231 216,908 225,150
Marketing 84,978 105,686 178,952 218,054
Deposit insurance premium 42,943 33,000 80,943 66,000
Regulatory assessment 8,089 9,360 16,179 18,720
Correspondent bank charges 22,007 19,186 44,423 38,710
Data processing 469,446 413,164 800,588 832,436
Printing, postage and supplies 77,515 75,994 155,327 148,278
Expense on life insurance 21,994 21,332 44,093 42,764
Contribution expense 10,375 10,513 19,876 31,527
Expense on REO 1,121 4,961 5,904 1,025
Other 396,732 319,979 792,312 667,017
Total noninterest expense 3,415,485 3,218,764 6,606,183 6,427,265
Income before income taxes 1,802,150 1,513,066 3,713,576 3,281,146
Income tax expense 286,650 155,358 575,037 452,894
Net income $ 1,515,500 $ 1,357,708 $ 3,138,539 $ 2,828,252


FFW Corporation
Selected Financial Information

Key Balances and Ratios

Three Months Ended December 31 Six Months Ended December 31
2022 2021 2022 2021
Unaudited Unaudited Unaudited Unaudited
Per common share data:
Earnings $1.34 $1.19 $2.76 $2.47
Diluted earnings $1.34 $1.19 $2.76 $2.47
Dividends paid $0.28 $0.26 $0.56 $0.52
Average shares issued and outstanding 1,130,963 1,143,377 1,135,688 1,144,291
Shares outstanding end of period 1,130,963 1,143,377 1,130,963 1,143,377
Supplemental data:
Net interest margin ** 3.25 % 3.07 % 3.31 % 3.15 %
Return on average assets *** 1.13 % 1.03 % 1.17 % 1.10 %
Return on average common equity *** 13.71 % 9.92 % 13.66 % 10.32 %
December 31 June 30
2022 2022
Nonperforming assets * $2,083,441 $2,344,693
Repossessed assets $9,325 $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




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