FFW Corporation Announces Earnings For the Fiscal Year Ended June 30, 2024

Rhea-AI Summary

FFW (OTC PINK: FFWC), parent of Crossroads Bank, reported financial results for the fiscal year ended June 30, 2024. Net income for Q4 2024 was $1,118,000 ($0.99 per share), down from $1,343,000 ($1.19 per share) in Q4 2023. Full-year net income for FY2024 was $4,089,000 ($3.63 per share), compared to $5,698,000 ($5.03 per share) in FY2023.

Key financial metrics for FY2024 include:

• Net interest income: $14,477,000 (down from $16,399,000 in FY2023)
• Noninterest income: $4,144,000 (up from $4,005,000)
• Noninterest expense: $14,225,000 (up from $13,433,000)
• Return on average assets: 0.74% (down from 1.07%)
• Total assets: $567,363,000 (up from $543,245,000)
• Shareholders' equity: $48,515,000 (up from $46,385,000)

Positive

• Total assets increased to $567,363,000 from $543,245,000 year-over-year
• Shareholders' equity rose to $48,515,000 from $46,385,000
• Noninterest income grew to $4,144,000 from $4,005,000 for the full year
• No credit loss expense recognized for FY2024, compared to $550,000 in FY2023
• Crossroads Bank maintains 'well capitalized' status

Negative

• Net income decreased to $4,089,000 from $5,698,000 for the full year
• Earnings per share declined to $3.63 from $5.03 year-over-year
• Net interest income fell to $14,477,000 from $16,399,000
• Return on average assets dropped to 0.74% from 1.07%
• Nonperforming assets increased to $4,044,000 from $2,065,000
• Noninterest expenses rose to $14,225,000 from $13,433,000

WABASH, Ind., Aug. 21, 2024 (GLOBE NEWSWIRE) -- FFW Corporation (the “Corporation”) (OTC PINK: FFWC) (8/20/24 Close: $34.50), parent corporation of Crossroads Bank (the “Bank”), announced earnings for the fiscal year ended June 30, 2024.

For the three months ended June 30, 2024, the Corporation reported net income of $1,118,000 or $0.99 per common share compared to $1,343,000 or $1.19 per common share for the three months ended June 30, 2023. Net interest income for the three months ended June 30, 2024 was $3,664,000 compared to $3,800,000 for the three months ended June 30, 2023. Credit loss expense was $0 for the three months ended June 30, 2024 and $75,000 for the three months ended June 30, 2023. Total noninterest income was $1,137,000 for the three months ended June 30, 2024 compared to $1,030,000 for the three months ended June 30, 2023. Noninterest expense was $3,641,000 for the three months ended June 30, 2024 and $3,349,000 for the three months ended June 30, 2023.

For the twelve months ended June 30, 2024, the Corporation reported net income of $4,089,000 or $3.63 per common share compared to $5,698,000 or $5.03 per common share for the twelve months ended June 30, 2023. Net interest income for the twelve months ended June 30, 2024 was $14,477,000 compared to $16,399,000 for the twelve months ended June 30, 2023. The Company recognized credit loss expense of $0 for the twelve months ended June 30, 2024 and $550,000 for the twelve months ended June 30, 2023. Total noninterest income was $4,144,000 for the twelve months ended June 30, 2024 compared to $4,005,000 for the twelve months ended June 30, 2023. Noninterest expense was $14,225,000 for the twelve months ended June 30, 2024 and $13,433,000 for the twelve months ended June 30, 2023.

The three and twelve months ended June 30, 2024 represented a return on average common equity of 9.41% and 8.78%, respectively, compared to 11.30% and 12.26% for the three and twelve month periods ended June 30, 2023. The three and twelve months ended June 30, 2024 represented a return on average assets of 0.80% and 0.74%, respectively, compared to 0.99% and 1.07% for the three and twelve month periods ended June 30, 2023.

The allowance for credit losses as a percentage of gross loans receivable was 1.33% at June 30, 2024 compared to 1.23% at June 30, 2023. Nonperforming assets were $4,044,000 at June 30, 2024 compared to $2,065,000 at June 30, 2023.

As of June 30, 2024, FFWC’s equity-to-assets ratio was 8.55% compared to 8.54% at June 30, 2023. Total assets at June 30, 2024 were $567,363,000 compared to $543,245,000 at June 30, 2023. Shareholders’ equity was $48,515,000 at June 30, 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
	June 30			June 30
		2024			2023
	Unaudited
Assets
Cash and due from financial institutions	$	5,202,224		$	8,686,057
Interest-bearing deposits in other financial institutions		11,717,782			4,668,889
Cash and cash equivalents		16,920,006			13,354,946
Securities available for sale		106,179,450			110,063,452
Loans held for sale		559,830			80,000
Loans receivable, net of allowance for credit losses of $5,564,436
June 30, 2024 and $4,852,745 at June 30, 2023		411,841,368			390,544,236
Federal Home Loan Bank stock, at cost		1,289,700			1,289,700
Accrued interest receivable		3,016,660			2,648,368
Premises and equipment, net		7,614,589			8,121,511
Mortgage servicing rights		1,086,587			1,128,019
Cash surrender value of life insurance		12,725,890			10,086,476
Goodwill		1,213,898			1,213,898
Repossessed Assets		1,250			109,596
Other assets		4,913,693			4,604,551
Total assets	$	567,362,921		$	543,244,753
Liabilities and shareholders' equity
Deposits
Noninterest-bearing	$	47,530,618		$	53,267,081
Interest-bearing		466,891,628			437,700,301
Total deposits		514,422,246			490,967,382
Borrowings		-			2,100,000
Accrued expenses and other liabilities		4,425,736			3,792,808
Total liabilities		518,847,982			496,860,190
Shareholders' equity
Common stock, $.01 par; 2,000,000 shares authorized;
Issued: 1,836,328; outstanding: 1,126,243 - June 30, 2024 and 1,126,357 - June 30, 2023		18,363			18,363
Additional paid-in capital		10,266,257			10,150,145
Retained earnings		61,694,919			59,406,634
Accumulated other comprehensive income (loss)		(10,795,929	)		(10,588,876	)
Treasury stock, at cost: 710,085 at June 30, 2024 and 709,971 shares at June 30, 2023		(12,668,671	)		(12,601,703	)
Total shareholders' equity		48,514,939			46,384,563
Total liabilities and shareholders' equity	$	567,362,921		$	543,244,753

FFW Corporation Selected Financial Information
Consolidated Statement of Income
	Three Months Ended June 30						Twelve Months Ended June 30
		2024			2023			2024			2023
	Unaudited						Unaudited
Interest and dividend income:
Loans, including fees	$	5,561,214		$	4,797,377		$	21,249,360		$	17,404,248
Taxable securities		538,577			483,668			2,031,617			1,864,881
Tax exempt securities		406,253			426,926			1,656,939			1,804,825
Other		119,404			188,303			309,304			548,886
Total interest and dividend income		6,625,448			5,896,274			25,247,220			21,622,840
Interest expense:
Deposits		2,933,414			2,095,131			10,613,939			5,216,815
Borrowings		27,627			1,059			155,984			7,096
Total interest expense		2,961,041			2,096,190			10,769,923			5,223,911
Net interest income		3,664,407			3,800,084			14,477,297			16,398,929
Credit loss expense		-			75,000			-			550,000
Net interest income after credit loss expense		3,664,407			3,725,084			14,477,297			15,848,929
Noninterest income:
Net gains (losses) on sales of securities		-			-			-			(3,633	)
Net gains on sales of loans		113,780			15,397			185,535			166,999
Net gains (losses) on fixed assets		-			-			-			(20,533	)
Net gains (losses) on sales of REO		-			18,039			(37,006	)		21,105
Commission income		395,409			374,866			1,429,640			1,298,105
Service charges and fees		219,733			248,318			998,995			1,052,670
Earnings on life insurance		106,082			80,596			389,414			318,684
Other		302,374			292,868			1,177,332			1,171,991
Total noninterest income		1,137,378			1,030,084			4,143,910			4,005,388
Noninterest expense:
Salaries and benefits		1,990,109			1,789,700			7,716,276			7,341,502
Occupancy and equipment		320,824			314,274			1,270,996			1,247,099
Professional		122,245			146,533			482,039			473,020
Marketing		96,753			83,207			378,547			364,422
Deposit insurance premium		73,000			82,000			280,666			201,968
Regulatory assessment		10,344			8,090			41,379			32,780
Correspondent bank charges		23,388			21,641			93,273			87,714
Data processing		482,683			419,607			1,866,798			1,655,966
Printing, postage and supplies		65,701			57,018			285,133			278,285
Expense on life insurance		41,149			21,785			129,934			87,767
Contribution expense		9,501			8,876			50,382			49,000
Expense on REO		(139	)		2,837			5,683			9,377
Other		405,714			393,378			1,623,675			1,603,767
Total noninterest expense		3,641,272			3,348,946			14,224,781			13,432,667
Income before income taxes		1,160,513			1,406,222			4,396,426			6,421,650
Income tax expense		42,948			63,249			306,949			723,754
Net income	$	1,117,565		$	1,342,973		$	4,089,477		$	5,697,896

FFW Corporation Selected Financial Information
Key Balances and Ratios
	Three Months Ended June 30						Twelve Months Ended June 30
		2024			2023			2024			2023
	Unaudited						Unaudited
Per common share data:
Earnings	$	0.99		$	1.19		$	3.63		$	5.03
Diluted earnings	$	0.99		$	1.19		$	3.63		$	5.03
Dividends paid	$	0.29		$	1.53		$	1.16		$	2.37
Average shares issued and outstanding		1,126,520			1,126,522			1,126,879			1,131,761
Shares outstanding end of period		1,126,243			1,126,357			1,126,243			1,126,357
Supplemental data:
Net interest margin **		2.66	%		2.85	%		2.69	%		3.15	%
Return on average assets ***		0.80	%		0.99	%		0.74	%		1.07	%
Return on average common equity ***		9.41	%		11.30	%		8.78	%		12.26	%
	June 30			June 30
		2024			2023
Nonperforming assets *	$	4,044,082		$	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

FAQ

What was FFW 's (FFWC) net income for fiscal year 2024?

FFW reported a net income of $4,089,000 for the fiscal year ended June 30, 2024.

How did FFWC's earnings per share (EPS) change in fiscal year 2024 compared to 2023?

FFWC's earnings per share decreased from $5.03 in fiscal year 2023 to $3.63 in fiscal year 2024.

What was the total asset value of FFW (FFWC) as of June 30, 2024?

FFW 's total assets were $567,363,000 as of June 30, 2024.

How did FFWC's net interest income change in fiscal year 2024?

FFWC's net interest income decreased from $16,399,000 in fiscal year 2023 to $14,477,000 in fiscal year 2024.

What was FFW 's (FFWC) return on average assets for fiscal year 2024?

FFW 's return on average assets for fiscal year 2024 was 0.74%, down from 1.07% in the previous year.