FFW Corporation Announces Earnings for the Quarter and Year to Date Ended December 31, 2021

Rhea-AI Summary

FFW Corporation (OTC PINK: FFWC) reported its earnings for Q4 and YTD ending December 31, 2021. The Corporation's net income for Q4 was $1,358,000 or $1.19 per share, down from $1,774,000 or $1.55 per share in Q4 2020. For the six months, net income fell to $2,828,000 or $2.47 per share from $3,521,000 or $3.08 in the previous year. Net interest income rose slightly to $3,780,000 in Q4 2021. Noninterest income declined to $1,032,000 compared to $1,814,000 in Q4 2020. The equity-to-assets ratio was 10.42%, declining from 10.89% at June 30, 2021.

Positive

• Net interest income increased to $3,780,000 in Q4 2021 from $3,727,000 in Q4 2020.
• Noninterest expenses decreased slightly to $3,219,000 in Q4 2021 compared to $3,260,000 in Q4 2020.
• Total assets grew to $521,625,000 at December 31, 2021, up from $486,442,000 at June 30, 2021.
• Crossroads Bank is well capitalized, exceeding regulatory requirements.

Negative

• Net income for Q4 2021 decreased by 23.5% compared to Q4 2020.
• Net income for the six months fell to $2,828,000, down 19.7% from the same period in 2020.
• Total noninterest income dropped significantly to $1,032,000 in Q4 2021 from $1,814,000 in Q4 2020.
• Return on average equity decreased to 9.92% in Q4 2021 from 13.66% in Q4 2020.

WABASH, Ind., Jan. 26, 2022 (GLOBE NEWSWIRE) -- FFW Corporation (the “Corporation”) (OTC PINK: FFWC) (1/25/2022 Close: $46.95), parent corporation of Crossroads Bank (the “Bank”), announced earnings for the quarter and year to date ended December 31, 2021.

For the three months ended December 31, 2021, the Corporation reported net income of $1,358,000 or $1.19 per common share compared to $1,774,000 or $1.55 per common share for the three months ended December 31, 2020. Net interest income for the three months ended December 31, 2021 was $3,780,000 compared to $3,727,000 for the three months ended December 31, 2020. The provision for loan losses was $80,000 for the three months ended December 31, 2021 and $165,000 for the three months ended December 31, 2020. Total noninterest income was $1,032,000 for the three months ended December 31, 2021 compared to $1,814,000 for the three months ended December 31, 2020. Noninterest expense was $3,219,000 for the three months ended December 31, 2021 and $3,260,000 for the three months ended December 31, 2020.

For the six months ended December 31, 2021, the Corporation reported net income of $2,828,000 or $2.47 per common share compared to $3,521,000 or $3.08 per common share for the six months ended December 31, 2020. Net interest income for the six months ended December 31, 2021 was $7,593,000 compared to $7,434,000 for the six months ended December 31, 2020. The Company recognized a provision for loan losses of $130,000 for the six months ended December 31, 2021 and $330,000 for the six months ended December 31, 2020. Total noninterest income was $2,245,000 for the six months ended December 31, 2021 compared to $3,795,000 for the six months ended December 31, 2020. Noninterest expense was $6,427,000 for the six months ended December 31, 2021 and $6,686,000 for the six months ended December 31, 2020.

The three and six months ended December 31, 2021 represented a return on average common equity of 9.92% and 10.32%, respectively, compared to 13.66% and 13.69% for the three and six month periods ended December 31, 2020. The three and six months ended December 31, 2021 represented a return on average assets of 1.03% and 1.10%, respectively, compared to 1.46% and 1.47%, for the three and six month periods ended December 31, 2020.

The allowance for loan losses as a percentage of gross loans receivable was 1.35% at December 31, 2021 compared to 1.43% at June 30, 2021. Nonperforming assets were $2,921,000 at December 31, 2021 compared to $3,242,000 at June 30, 2021.

As of December 31, 2021, FFWC’s equity-to-assets ratio was 10.42% compared to 10.89% at June 30, 2021. Total assets at December 31, 2021 were $521,625,000 compared to $486,442,000 at June 30, 2021. Shareholders’ equity was $54,332,000 at December 31, 2021 compared to $52,954,000 at June 30, 2020. 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 www.crossroadsbanking.com. Crossroads Bank, Member FDIC.

FFW Corporation
Selected Financial Information

Consolidated Balance Sheet

	December 31			June 30
	2021			2021
	Unaudited
Assets
Cash and due from financial institutions	$	6,153,813		$	4,779,188
Interest-bearing deposits in other financial institutions	64,506,271			51,646,720
Cash and cash equivalents	70,660,084			56,425,908
Securities available for sale	114,818,062			116,335,455
Loans receivable, net of allowance for loan losses of $4,252,370 at
December 31, 2021 and $4,168,689 at June 30, 2021	310,761,100			285,643,064
Loans held for sale	54,501			2,613,987
Federal Home Loan Bank stock, at cost	1,462,500			1,462,500
Accrued interest receivable	2,087,995			2,131,744
Premises and equipment, net	8,717,373			8,949,842
Mortgage servicing rights	1,033,145			1,011,046
Cash surrender value of life insurance	9,613,392			9,459,746
Goodwill	1,213,898			1,213,898
Repossessed Assets	58,953			148,621
Other assets	1,143,749			1,045,876
Total assets	$	521,624,752		$	486,441,687
Liabilities and shareholders' equity
Deposits
Noninterest-bearing	$	50,431,524		$	49,510,375
Interest-bearing	412,858,678			380,084,790
Total deposits	463,290,202			429,595,165
Accrued expenses and other liabilities	4,002,546			3,892,719
Total liabilities	467,292,748			433,487,884
Shareholders' equity
Common stock, $.01 par; 2,000,000 shares authorized;
Issued: 1,836,328; outstanding: 1,143,377 - December 31, 2021 and 1,141,190 - June 30, 2021	18,363			18,363
Additional paid-in capital	9,834,406			9,809,754
Retained earnings	54,085,891			51,852,194
Accumulated other comprehensive income	2,220,454			3,058,832
Treasury stock, at cost: 692,951 shares at December 31, 2021 and 695,138
shares at June 30, 2021	(11,827,110		)	(11,785,340		)
Total shareholders' equity	54,332,004			52,953,803
Total liabilities and shareholders' equity	$	521,624,752		$	486,441,687

FFW Corporation
Selected Financial Information

Consolidated Statement of Income

	Three Months Ended December 31				Six Months Ended December 31
	2021		2020		2021		2020
	Unaudited		Unaudited		Unaudited		Unaudited
Interest and dividend income:
Loans, including fees	$	3,362,773	$	3,559,989	$	6,755,289	$	7,164,305
Taxable securities	331,914		321,319		686,485		654,512
Tax exempt securities	407,372		417,657		821,630		789,928
Other	25,096		9,728		43,849		17,509
Total interest and dividend income	4,127,155		4,308,693		8,307,253		8,626,254
Interest expense:
Deposits	347,651		581,261		714,322		1,192,646
Borrowings	1		-		1		-
Total interest expense	347,652		581,261		714,323		1,192,646
Net interest income	3,779,503		3,727,432		7,592,930		7,433,608
Provision for loan losses	80,000		165,000		130,000		330,000
Net interest income after provision for loan losses	3,699,503		3,562,432		7,462,930		7,103,608
Noninterest income:
Net gains on sales of securities	-		-		-		98,467
Net gains on sales of loans	72,163		1,013,356		354,826		2,208,842
Net gains (losses) on fixed assets	10,250		9,204		10,250		9,204
Net gains (losses) on sales of REO	13,770		-		6,754		(6,535		)
Commission income	313,632		281,325		636,236		571,403
Service charges and fees	246,442		199,419		509,672		294,838
Earnings on life insurance	77,282		75,379		153,647		149,820
Other	298,788		235,103		574,096		469,446
Total noninterest income	1,032,327		1,813,786		2,245,481		3,795,485
Noninterest expense:
Salaries and benefits	1,778,904		1,714,403		3,491,114		3,475,467
Occupancy and equipment	320,454		321,365		646,470		664,459
Professional	106,231		92,608		225,150		153,194
Marketing	105,686		108,652		218,054		222,593
Deposit insurance premium	33,000		33,000		66,000		66,000
Regulatory assessment	9,360		9,301		18,720		18,602
Correspondent bank charges	19,186		17,146		38,710		34,663
Data processing	413,164		400,688		832,436		821,270
Printing, postage and supplies	75,994		72,084		148,278		167,496
Expense on life insurance	21,332		15,849		42,764		31,698
Contribution expense	10,513		11,887		31,527		27,275
Expense on REO	4,961		3,258		1,025		8,039
Other	319,979		459,435		667,017		994,748
Total noninterest expense	3,218,764		3,259,676		6,427,265		6,685,504
Income before income taxes	1,513,066		2,116,542		3,281,146		4,213,589
Income tax expense	155,358		342,970		452,894		692,487
Net income	$	1,357,708	$	1,773,572	$	2,828,252	$	3,521,102

FFW Corporation
Selected Financial Information

Key Balances and Ratios

		Three Months Ended December 31		Six Months Ended December 31
		2021	2020	2021	2020
		Unaudited	Unaudited	Unaudited	Unaudited
Per common share data:
Earnings		$1.19	$1.55	$2.47	$3.08
Diluted earnings		$1.19	$1.55	$2.47	$3.08
Dividends paid		$0.26	$0.25	$0.52	$0.50
Average shares issued and outstanding		1,143,377	1,142,690	1,144,291	1,142,690
Shares outstanding end of period		1,143,377	1,142,690	1,143,377	1,142,690
Supplemental data:
Net interest margin **		3.07%	3.30%	3.15%	3.34%
Return on average assets ***		1.03%	1.46%	1.10%	1.47%
Return on average common equity ***		9.92%	13.66%	10.32%	13.69%
		December 31	June 30
		2021	2021
Nonperforming assets *		$2,920,997	$3,241,581
Repossessed assets		$58,953	$148,621
*	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 are FFWC's Q4 2021 earnings results?

FFWC reported a net income of $1,358,000 or $1.19 per share for Q4 2021.

How did FFWC's net income change compared to Q4 2020?

Net income in Q4 2021 decreased by 23.5% from $1,774,000 in Q4 2020.

What was FFWC's total assets as of December 31, 2021?

Total assets were $521,625,000 as of December 31, 2021.

How did the equity-to-assets ratio of FFWC change?

The equity-to-assets ratio declined to 10.42% at December 31, 2021, from 10.89% at June 30, 2021.