FFW Corporation Announces Earnings for the Quarter Ended September 30, 2021

Rhea-AI Summary

FFW Corporation (OTC PINK: FFWC) reported a net income of $1,471,000 ($1.28 per share) for Q3 2021, down from $1,748,000 ($1.53 per share) in Q3 2020. Their net interest income rose to $3,813,000 from $3,706,000 year-over-year. The provision for loan losses significantly decreased to $50,000 compared to $165,000 last year. Total noninterest income was $1,213,000, a decline from $1,982,000. The return on average equity fell to 10.72% from 13.71%, while total assets increased to $500,042,000, with a consistent equity-to-assets ratio of 10.75%.

Positive

• Net interest income increased to $3,813,000, up from $3,706,000 year-over-year.
• Total assets grew to $500,042,000 compared to $486,442,000 at the end of June 2021.
• Shareholders' equity rose to $53,760,000 from $52,954,000 at June 30, 2021.

Negative

• Net income decreased to $1,471,000 from $1,748,000 year-over-year.
• Noninterest income declined to $1,213,000 from $1,982,000 in Q3 2020.
• Return on average equity dropped to 10.72% from 13.71%.

WABASH, Ind., Oct. 27, 2021 (GLOBE NEWSWIRE) -- FFW Corporation (the “Corporation”) (OTC PINK: FFWC) (10/26/2021 Close: $47.50), parent corporation of Crossroads Bank (the “Bank”), announced earnings for the quarter ended September 30, 2021.

For the three months ended September 30, 2021, the Corporation reported net income of $1,471,000 or $1.28 per common share compared to $1,748,000 or $1.53 per common share for the three months ended September 30, 2020. Net interest income for the three months ended September 30, 2021 was $3,813,000 compared to $3,706,000 for the three months ended September 30, 2020. The provision for loan losses was $50,000 for the three months ended September 30, 2021 and $165,000 for the three months ended September 30, 2020. Total noninterest income was $1,213,000 for the three months ended September 30, 2021 compared to $1,982,000 for the three months ended September 30, 2020. Noninterest expense was $3,209,000 for the three months ended September 30, 2021 and $3,426,000 for the three months ended September 30, 2020.

The three months ended September 30, 2021 represented a return on average common equity of 10.72% compared to 13.71% for the three months ended September 30, 2020. The three months ended September 30, 2021 represented a return on average assets of 1.17% compared to 1.48% for the three months ended September 30, 2020.

The allowance for loan losses as a percentage of gross loans receivable was 1.37% at September 30, 2021 compared to 1.43% at June 30, 2021. Nonperforming assets were $3,229,000 at September 30, 2021 compared to $3,242,000 at June 30, 2021.

As of September 30, 2021, FFWC’s equity-to-assets ratio was 10.75% compared to 10.89% at June 30, 2021. Total assets at September 30, 2021 were $500,042,000 compared to $486,442,000 at June 30, 2021. Shareholders’ equity was $53,760,000 at September 30, 2021 compared to $52,954,000 at June 30, 2021. 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

		September 30			June 30
			2021			2021
		Unaudited
Assets
Cash and due from financial institutions		$	6,567,703		$	4,779,188
Interest-bearing deposits in other financial institutions			48,015,361			51,646,720
	Cash and cash equivalents		54,583,064			56,425,908
Securities available for sale			116,500,686			116,335,455
Loans receivable, net of allowance for loan losses of $4,204,048 at
September 30, 2021 and $4,168,689 at June 30, 2021			302,895,512			285,643,064
Loans held for sale			562,044			2,613,987
Federal Home Loan Bank stock, at cost			1,462,500			1,462,500
Accrued interest receivable			2,082,763			2,131,744
Premises and equipment, net			8,793,695			8,949,842
Mortgage servicing rights			1,035,531			1,011,046
Cash surrender value of life insurance			9,536,111			9,459,746
Goodwill			1,213,898			1,213,898
Repossessed Assets			178,839			148,621
Other assets			1,197,152			1,045,876
	Total assets	$	500,041,795		$	486,441,687
Liabilities and shareholders' equity
Deposits
	Noninterest-bearing	$	58,004,539		$	49,510,375
	Interest-bearing		384,368,074			380,084,790
	Total deposits		442,372,613			429,595,165
Accrued expenses and other liabilities			3,908,786			3,892,719
	Total liabilities		446,281,399			433,487,884
Shareholders' equity
Common stock, $.01 par; 2,000,000 shares authorized;
	Issued: 1,836,328; outstanding: 1,143,377 - September 30, 2021 and 1,141,190 - June 30, 2021		18,363			18,363
Additional paid-in capital			9,780,934			9,809,754
Retained earnings			53,025,460			51,852,194
Accumulated other comprehensive income			2,762,749			3,058,832
Treasury stock, at cost: 692,951 shares at September 30, 2021 and 695,138 shares at June 30, 2021			(11,827,110	)		(11,785,340	)
	Total shareholders' equity		53,760,396			52,953,803
	Total liabilities and shareholders' equity	$	500,041,795		$	486,441,687

FFW Corporation
Selected Financial Information

Consolidated Statement of Income

			Three Months Ended September 30
				2021			2020
			Unaudited			Unaudited
Interest and dividend income:
	Loans, including fees		$	3,392,516		$	3,604,316
	Taxable securities			354,571			333,193
	Tax exempt securities			414,258			372,271
	Other			18,753			7,781
		Total interest and dividend income		4,180,098			4,317,561
Interest expense:
	Deposits			366,671			611,385
		Total interest expense		366,671			611,385
Net interest income				3,813,427			3,706,176
Provision for loan losses				50,000			165,000
Net interest income after provision for
	loan losses			3,763,427			3,541,176
Noninterest income:
	Net gains on sales of securities			-			98,467
	Net gains on sales of loans			282,663			1,195,486
	Net gains (losses) on sales of REO			(7,016	)		(6,535	)
	Commission income			322,604			290,078
	Service charges and fees			263,230			95,419
	Earnings on life insurance			76,365			74,441
	Other			275,308			234,343
		Total noninterest income		1,213,154			1,981,699
Noninterest expense:
	Salaries and benefits			1,712,210			1,761,064
	Occupancy and equipment			326,016			343,094
	Professional			118,919			60,586
	Marketing			112,368			113,941
	Deposit insurance premium			33,000			33,000
	Regulatory assessment			9,360			9,301
	Correspondent bank charges			19,524			17,517
	Data processing			419,272			420,582
	Printing, postage and supplies			72,284			95,412
	Expense on life insurance			21,432			15,849
	Contribution expense			21,014			15,388
	Expense on REO			(3,936	)		4,781
	Other			347,038			535,313
		Total noninterest expense		3,208,501			3,425,828
Income before income taxes				1,768,080			2,097,047
Income tax expense				297,536			349,517
Net income			$	1,470,544		$	1,747,530

FFW Corporation
Selected Financial Information

Key Balances and Ratios

		Three Months Ended September 30
			2021			2020
		Unaudited			Unaudited
Per common share data:
Earnings		$	1.28		$	1.53
Diluted earnings		$	1.28		$	1.53
Dividends paid		$	0.26		$	0.25
Average shares issued and outstanding			1,145,204			1,142,690
Shares outstanding end of period			1,143,377			1,142,690
Supplemental data:
Net interest margin **			3.23	%		3.38	%
Return on average assets ***			1.17	%		1.48	%
Return on average common equity ***			10.72	%		13.71	%
		September 30			June 30
			2021			2021
Nonperforming assets *		$	3,229,370		$	3,241,581
Repossessed assets		$	178,839		$	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 the Q3 2021 earnings for FFW Corporation (FFWC)?

For Q3 2021, FFW Corporation reported a net income of $1,471,000, or $1.28 per share.

How did FFW Corporation's net interest income perform in Q3 2021?

FFW Corporation's net interest income for Q3 2021 increased to $3,813,000 compared to $3,706,000 in Q3 2020.

What is the current equity-to-assets ratio for FFW Corporation?

As of September 30, 2021, FFW Corporation's equity-to-assets ratio was 10.75%.

What trends were observed in noninterest income for FFW Corporation?

Noninterest income in Q3 2021 decreased to $1,213,000 from $1,982,000 in the same quarter of the previous year.

What was the provision for loan losses for FFW Corporation in Q3 2021?

The provision for loan losses was $50,000 for Q3 2021, down from $165,000 in Q3 2020.