FFW Corporation Announces Earnings For the Quarter Ended September 30, 2022

Rhea-AI Summary

FFW Corporation (OTC PINK: FFWC) reported a strong performance for Q3 2022, achieving a net income of $1,623,000 or $1.42 per share, up from $1,471,000 or $1.28 per share in Q3 2021. Net interest income increased to $4,376,000 from $3,813,000 year-over-year. However, the provision for loan losses rose significantly to $300,000 compared to $50,000 in the prior year. The return on average equity improved to 13.61%, while total assets decreased to $527,573,000. Nonperforming assets also decreased to $2,035,000.

Positive

• Net income rose to $1,623,000 for Q3 2022, an increase from $1,471,000 in Q3 2021.
• Return on average common equity improved to 13.61%, up from 10.72% year-over-year.
• Net interest income increased to $4,376,000 from $3,813,000 in the previous year.
• Nonperforming assets decreased to $2,035,000, indicating improved asset quality.

Negative

• Provision for loan losses increased to $300,000 from $50,000, suggesting potential higher risk in loans.
• Total assets decreased to $527,573,000 from $534,918,000, reflecting a contraction.
• Shareholders' equity declined to $43,444,000 from $46,648,000, indicating a decrease in the financial buffer.

WABASH, Ind., Oct. 26, 2022 (GLOBE NEWSWIRE) -- FFW Corporation (the “Corporation”) (OTC PINK: FFWC) (10/25/2022 Close: $45.46), parent corporation of Crossroads Bank (the “Bank”), announced earnings for the quarter ended September 30, 2022.

For the three months ended September 30, 2022, the Corporation reported net income of $1,623,000 or $1.42 per common share compared to $1,471,000 or $1.28 per common share for the three months ended September 30, 2021. Net interest income for the three months ended September 30, 2022 was $4,376,000 compared to $3,813,000 for the three months ended September 30, 2021. The provision for loan losses was $300,000 for the three months ended September 30, 2022 and $50,000 for the three months ended September 30, 2021. Total noninterest income was $1,026,000 for the three months ended September 30, 2022 compared to $1,213,000 for the three months ended September 30, 2021. Noninterest expense was $3,191,000 for the three months ended September 30, 2022 and $3,209,000 for the three months ended September 30, 2021.

The three months ended September 30, 2022 represented a return on average common equity of 13.61% compared to 10.72% for the three months ended September 30, 2021. The three months ended September 30, 2022 represented a return on average assets of 1.21% compared to 1.17% for the three months ended September 30, 2021.

The allowance for loan losses as a percentage of gross loans receivable was 1.24% at September 30, 2022 compared to 1.28% at June 30, 2022. Nonperforming assets were $2,035,000 at September 30, 2022 compared to $2,345,000 at June 30, 2022.

As of September 30, 2022, FFWC’s equity-to-assets ratio was 8.23% compared to 8.72% at June 30, 2022. Total assets at September 30, 2022 were $527,573,000 compared to $534,918,000 at June 30, 2022. Shareholders’ equity was $43,444,000 at September 30, 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 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

	September 30			June 30
		2022			2022
	Unaudited
Assets
Cash and due from financial institutions	$	5,776,634		$	7,122,187
Interest-bearing deposits in other financial institutions		10,849,260			48,456,109
Cash and cash equivalents		16,625,894			55,578,296
Securities available for sale		114,236,507			115,717,308
Loans held for sale		594,050			248,000
Loans receivable, net of allowance for loan losses of $4,625,109 at September 30, 2022 and $4,342,121 at June 30, 2022		366,890,844			335,672,317
Federal Home Loan Bank stock, at cost		1,289,700			1,289,700
Accrued interest receivable		2,274,881			2,105,470
Premises and equipment, net		8,416,156			8,481,385
Mortgage servicing rights		1,133,989			1,138,165
Cash surrender value of life insurance		9,846,096			9,767,792
Goodwill		1,213,898			1,213,898
Repossessed Assets		9,325			75,025
Other assets		5,041,538			3,630,737
Total assets	$	527,572,878		$	534,918,093
Liabilities and shareholders' equity
Deposits
Noninterest-bearing	$	55,744,751		$	55,960,708
Interest-bearing		424,962,052			428,550,708
Total deposits		480,706,803			484,511,416
Accrued expenses and other liabilities		3,422,327			3,758,195
Total liabilities		484,129,130			488,269,611
Shareholders' equity
Common stock, $.01 par; 2,000,000 shares authorized;
Issued: 1,836,328; outstanding: 1,130,963 - September 30, 2022 and 1,140,305 - June 30, 2022		18,363			18,363
Additional paid-in capital		9,980,148			9,940,774
Retained earnings		57,688,196			56,384,625
Accumulated other comprehensive income (loss)		(11,815,295	)		(7,726,089	)
Treasury stock, at cost: 705,365 shares at September 30, 2022 and 696,023 shares at June 30, 2022		(12,427,664	)		(11,969,191	)
Total shareholders' equity		43,443,748			46,648,482
Total liabilities and shareholders' equity	$	527,572,878		$	534,918,093

FFW Corporation
Selected Financial Information

Consolidated Statement of Income

	Three Months Ended September 30
		2022			2021
	Unaudited			Unaudited
Interest and dividend income:
Loans, including fees	$	3,869,513		$	3,392,516
Taxable securities		441,825			354,571
Tax exempt securities		451,630			414,258
Other		161,572			18,753
Total interest and dividend income		4,924,540			4,180,098
Interest expense:
Deposits		548,353			366,671
Total interest expense		548,353			366,671
Net interest income		4,376,187			3,813,427
Provision for loan losses		300,000			50,000
Net interest income after provision for  loan losses		4,076,187			3,763,427
Noninterest income:
Net gains on sales of loans		68,146			282,663
Net gains (losses) on sales of REO		11,841			(7,016	)
Commission income		318,420			322,604
Service charges and fees		279,430			263,230
Earnings on life insurance		78,304			76,365
Other		269,796			275,308
Total noninterest income		1,025,937			1,213,154
Noninterest expense:
Salaries and benefits		1,770,667			1,712,210
Occupancy and equipment		307,383			326,016
Professional		109,251			118,919
Marketing		93,974			112,368
Deposit insurance premium		38,000			33,000
Regulatory assessment		8,090			9,360
Correspondent bank charges		22,416			19,524
Data processing		331,142			419,272
Printing, postage and supplies		77,812			72,284
Expense on life insurance		22,099			21,432
Contribution expense		9,501			21,014
Expense on REO		4,783			(3,936	)
Other		395,580			347,038
Total noninterest expense		3,190,698			3,208,501
Income before income taxes		1,911,426			1,768,080
Income tax expense		288,387			297,536
Net income	$	1,623,039		$	1,470,544

FFW Corporation
Selected Financial Information

Key Balances and Ratios

	Three Months Ended September 30
		2022			2021
	Unaudited			Unaudited
Per common share data:
Earnings	$	1.42		$	1.28
Diluted earnings	$	1.42		$	1.28
Dividends paid	$	0.28		$	0.26
Average shares issued and outstanding		1,140,413.0			1,145,204.0
Shares outstanding end of period		1,130,963.0			1,143,377.0
Supplemental data:
Net interest margin **		3.37	%		3.23	%
Return on average assets ***		1.21	%		1.17	%
Return on average common equity ***		13.61	%		10.72	%
	September 30			June 30
		2022			2022
Nonperforming assets *	$	2,035,344		$	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: Roger Cromer, President, at (260) 563-3185

FAQ

What were FFWC's earnings for Q3 2022?

FFWC reported earnings of $1,623,000 or $1.42 per share for Q3 2022.

How much did net interest income increase for FFWC in Q3 2022?

Net interest income increased to $4,376,000 in Q3 2022 from $3,813,000 in Q3 2021.

What is the provision for loan losses for FFWC in Q3 2022?

The provision for loan losses for Q3 2022 was $300,000, up from $50,000 in the previous year.

How did FFWC's return on equity change in Q3 2022?

FFWC's return on average common equity improved to 13.61% in Q3 2022.

What were FFWC's total assets as of September 30, 2022?

As of September 30, 2022, FFWC's total assets were $527,573,000.