FFW Corporation Announces Earnings for the Quarter and Year to Date Ended December 31, 2022

Rhea-AI Summary

FFW Corporation (OTC PINK: FFWC) reported a strong financial performance for the quarter and year-to-date ended December 31, 2022. Net income for Q4 was $1,516,000, up from $1,358,000 in Q4 2021, translating to $1.34 EPS versus $1.19. For the six months, net income reached $3,139,000, an increase from $2,828,000, with EPS at $2.76 compared to $2.47. Key financial metrics showed a rise in net interest income to $4,248,000 in Q4 and $8,624,000 in six months, while noninterest income slightly decreased. Nonperforming assets dropped to $2,083,000, and the equity-to-assets ratio was 8.47%. The corporation remains well-capitalized, exceeding regulatory requirements.

Positive

• Net income increased by 11.6% year-over-year for Q4 and 10.9% for the first six months.
• Return on average common equity rose to 13.71% in Q4 and 13.66% year-to-date, compared to previous year's 9.92% and 10.32%.
• Nonperforming assets decreased from $2,344,000 to $2,083,000, indicating improved asset quality.
• FFWC's equity-to-assets ratio of 8.47% shows strong capitalization.

Negative

• Provision for loan losses increased significantly, reaching $400,000 for six months compared to $130,000 in 2021.
• Total noninterest income declined from $2,245,000 to $2,096,000 over the six-month period.

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 www.crossroadsbanking.com. 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

FAQ

What are FFW Corporation's earnings for Q4 2022?

FFW Corporation reported net income of $1,516,000 for Q4 2022.

How did FFWC's net income for the six months ended December 31, 2022 compare to 2021?

Net income for the six months ended December 31, 2022, was $3,139,000, up from $2,828,000 in 2021.

What was the EPS for FFW Corporation in Q4 2022?

The earnings per share (EPS) for Q4 2022 was $1.34.

What changes occurred in FFWC's nonperforming assets by the end of December 2022?

Nonperforming assets decreased to $2,083,000 at December 31, 2022.

What is FFW Corporation's equity-to-assets ratio as of December 31, 2022?

The equity-to-assets ratio was 8.47% as of December 31, 2022.