FFW Corporation Announces Earnings, Share Repurchase

Rhea-AI Summary

FFW Corporation (OTC PINK: FFWC) reported financial results for the quarter and year-to-date ending March 31, 2022. Net income for Q1 was $1,369,000 ($1.20 per share), a decline from $1,575,000 ($1.38 per share) in Q1 2021. Year-to-date net income of $4,197,000 ($3.67 per share) also decreased from $5,096,000 ($4.46 per share) in the prior period. While net interest income rose to $3,745,000 for Q1 and $11,338,000 YTD, total noninterest income fell to $1,120,000 and $3,366,000 respectively. The return on average equity was 10.30% for Q1 compared to 12.00% in 2021.

Positive

• Net interest income increased to $3,745,000 for Q1 2022 from $3,655,000 in Q1 2021.
• Noninterest expenses decreased, improving cost management: $3,291,000 in Q1 2022 vs $3,570,000 in Q1 2021.
• Nonperforming assets decreased to $2,518,000 from $3,242,000 since June 2021.

Negative

• Net income decreased by 13.1% in Q1 2022 compared to Q1 2021.
• Total noninterest income dropped 41.6% year-over-year for Q1.
• Return on average equity declined from 12.00% in Q1 2021 to 10.30% in Q1 2022.
• Equity-to-assets ratio decreased to 9.41% from 10.89% since June 2021.

WABASH, Ind., April 27, 2022 (GLOBE NEWSWIRE) -- FFW Corporation (the “Corporation”) (OTC PINK: FFWC) (4/26/2022 Close: $46.50), parent corporation of Crossroads Bank (the “Bank”), announced earnings for the quarter and year to date ended March 31, 2022.

For the three months ended March 31, 2022, the Corporation reported net income of $1,369,000 or $1.20 per common share compared to $1,575,000 or $1.38 per common share for the three months ended March 31, 2021. Net interest income for the three months ended March 31, 2022 was $3,745,000 compared to $3,655,000 for the three months ended March 31, 2021. The provision for loan losses was $75,000 for the three months ended March 31, 2022 and $165,000 for the three months ended March 31, 2021. Total noninterest income was $1,120,000 for the three months ended March 31, 2022 compared to $1,917,000 for the three months ended March 31, 2021. Noninterest expense was $3,291,000 for the three months ended March 31, 2022 and $3,570,000 for the three months ended March 31, 2021.

For the nine months ended March 31, 2022, the Corporation reported net income of $4,197,000 or $3.67 per common share compared to $5,096,000 or $4.46 per common share for the nine months ended March 31, 2021. Net interest income for the nine months ended March 31, 2022 was $11,338,000 compared to $11,089,000 for the nine months ended March 31, 2021. The Company recognized a provision for loan losses of $205,000 for the nine months ended March 31, 2022 and $495,000 for the nine months ended March 31, 2021. Total noninterest income was $3,366,000 for the nine months ended March 31, 2022 compared to $5,713,000 for the nine months ended March 31, 2021. Noninterest expense was $9,718,000 for the nine months ended March 31, 2022 and $10,255,000 for the nine months ended March 31, 2021.

The three and nine months ended March 31, 2022 represented a return on average common equity of 10.30% and 10.32%, respectively, compared to 12.00% and 13.12% for the three and nine month periods ended March 31, 2021. The three and nine months ended March 31, 2022 represented a return on average assets of 1.04% and 1.08%, respectively, compared to 1.36% and 1.44%, for the three and nine month periods ended March 31, 2021.

The allowance for loan losses as a percentage of gross loans receivable was 1.28% at March 31, 2022 compared to 1.43% at June 30, 2021. Nonperforming assets were $2,518,000 at March 31, 2022 compared to $3,242,000 at June 30, 2021.

As of March 31, 2022, FFWC’s equity-to-assets ratio was 9.41% compared to 10.89% at June 30, 2021. Total assets at March 31, 2022 were $532,318,000 compared to $486,442,000 at June 30, 2021. Shareholders’ equity was $50,103,000 at March 31, 2022 compared to $52,954,000 at June 30, 2021. Crossroads Bank exceeds all applicable regulatory requirements to be considered “well capitalized.”

The corporation has an active walk-in share repurchase program. Share repurchases may be facilitated at the corporate office located at 1205 N. Cass St., Wabash IN 46992. For more information regarding the share repurchase program, please contact Kirsten Pendarvis, Treasurer, at (260) 563-3185. The corporation may suspend or discontinue repurchases at any time.

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

	March 31			June 30
		2022			2021
	Unaudited
Assets
Cash and due from financial institutions	$	6,366,006		$	4,779,188
Interest-bearing deposits in other financial institutions		61,807,267			51,646,720
Cash and cash equivalents		68,173,273			56,425,908
Securities available for sale		112,746,728			116,335,455
Loans receivable, net of allowance for loan losses of $4,203,633 at March 31, 2022 and $4,168,689 at June 30, 2021		325,007,588			285,643,064
Loans held for sale		-			2,613,987
Federal Home Loan Bank stock, at cost		1,289,700			1,462,500
Accrued interest receivable		1,881,750			2,131,744
Premises and equipment, net		8,601,701			8,949,842
Mortgage servicing rights		1,124,143			1,011,046
Cash surrender value of life insurance		9,690,141			9,459,746
Goodwill		1,213,898			1,213,898
Repossessed Assets		68,758			148,621
Other assets		2,520,184			1,045,876
Total assets	$	532,317,864		$	486,441,687
Liabilities and shareholders' equity
Deposits
Noninterest-bearing	$	56,402,280		$	49,510,375
Interest-bearing		421,539,440			380,084,790
Total deposits		477,941,720			429,595,165
Accrued expenses and other liabilities		4,273,628			3,892,719
Total liabilities		482,215,348			433,487,884
Shareholders' equity
Common stock, $.01 par; 2,000,000 shares authorized;
Issued: 1,836,328; outstanding: 1,143,327 - March 31, 2022 and 1,141,190 - June 30, 2021		18,363			18,363
Additional paid-in capital		9,887,878			9,809,754
Retained earnings		55,157,652			51,852,194
Accumulated other comprehensive income		(3,131,898	)		3,058,832
Treasury stock, at cost: 693,001 shares at March 31, 2022 and 695,138 shares at June 30, 2021		(11,829,479	)		(11,785,340	)
Total shareholders' equity		50,102,516			52,953,803
Total liabilities and shareholders' equity	$	532,317,864		$	486,441,687

FFW Corporation
Selected Financial Information

Consolidated Statement of Income

	Three Months Ended March 31						Nine Months Ended March 31
		2022			2021			2022			2021
	Unaudited			Unaudited			Unaudited			Unaudited
Interest and dividend income:
Loans, including fees	$	3,342,482		$	3,347,999		$	10,097,771		$	10,512,304
Taxable securities		289,642			340,065			976,127			994,577
Tax exempt securities		407,352			419,231			1,228,982			1,209,159
Other		25,514			6,281			69,363			23,790
Total interest and dividend income		4,064,990			4,113,576			12,372,243			12,739,830
Interest expense:
Deposits		319,839			458,636			1,034,161			1,651,282
Borrowings		-			-			1			-
Total interest expense		319,839			458,636			1,034,162			1,651,282
Net interest income		3,745,151			3,654,940			11,338,081			11,088,548
Provision for loan losses		75,000			165,000			205,000			495,000
Net interest income after provision for  loan losses		3,670,151			3,489,940			11,133,081			10,593,548
Noninterest income:
Net gains on sales of securities		-			-			-			98,467
Net gains on sales of loans		92,943			1,006,539			447,769			3,215,381
Net gains (losses) on fixed assets		24,033			-			34,283			9,204
Net gains (losses) on sales of REO		4,532			(16,963	)		11,286			(23,498	)
Commission income		305,301			344,053			941,537			915,456
Service charges and fees		349,991			238,602			859,663			533,440
Earnings on life insurance		76,749			74,875			230,396			224,695
Other		266,661			270,216			840,757			739,662
Total noninterest income		1,120,210			1,917,322			3,365,691			5,712,807
Noninterest expense:
Salaries and benefits		1,794,574			1,534,134			5,285,688			5,009,601
Occupancy and equipment		338,682			350,158			985,152			1,014,617
Professional		111,657			553,813			336,807			707,007
Marketing		85,077			105,096			303,131			327,689
Deposit insurance premium		36,448			33,000			102,448			99,000
Regulatory assessment		9,585			9,515			28,305			28,117
Correspondent bank charges		19,814			17,967			58,524			52,630
Data processing		414,997			400,609			1,247,433			1,221,879
Printing, postage and supplies		71,759			62,358			220,037			229,854
Expense on life insurance		21,232			20,611			63,996			52,309
Contribution expense		22,380			32,340			53,907			59,615
Expense on REO		1,068			5,018			2,093			13,057
Other		363,451			445,260			1,030,468			1,440,008
Total noninterest expense		3,290,724			3,569,879			9,717,989			10,255,383
Income before income taxes		1,499,637			1,837,383			4,780,783			6,050,972
Income tax expense		130,611			262,145			583,505			954,632
Net income	$	1,369,026		$	1,575,238		$	4,197,278		$	5,096,340

FFW Corporation
Selected Financial Information

Key Balances and Ratios

		Three Months Ended March 31						Nine Months Ended March 31
			2022			2021			2022			2021
		Unaudited			Unaudited			Unaudited			Unaudited
Per common share data:
Earnings		$	1.20		$	1.38		$	3.67		$	4.46
Diluted earnings		$	1.20		$	1.38		$	3.67		$	4.46
Dividends paid		$	0.26		$	0.25		$	0.78		$	0.75
Average shares issued and outstanding			1,143,348			1,142,690			1,143,981			1,142,690
Shares outstanding end of period			1,143,327			1,142,690			1,143,327			1,142,690
Supplemental data:
Net interest margin **			3.03	%		3.37	%		3.11	%		3.35	%
Return on average assets ***			1.04	%		1.36	%		1.08	%		1.44	%
Return on average common equity ***			10.30	%		12.00	%		10.32	%		13.12	%
		March 31			June 30
			2022			2021
Nonperforming assets *		$	2,518,218		$	3,241,581
Repossessed assets		$	68,758		$	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 were FFW Corporation's earnings for the first quarter of 2022?

FFW Corporation reported net income of $1,369,000 or $1.20 per common share for Q1 2022.

How did FFWC's net income compare year-over-year?

Net income decreased from $1,575,000 ($1.38 per share) in Q1 2021 to $1,369,000 ($1.20 per share) in Q1 2022.

What is the total noninterest income for FFW Corporation as of March 31, 2022?

Total noninterest income for Q1 2022 was $1,120,000, a decrease from $1,917,000 in Q1 2021.

How has FFWC's return on equity changed in 2022?

Return on average equity fell to 10.30% for Q1 2022 from 12.00% in Q1 2021.

What is the current status of FFW Corporation's share repurchase program?

FFW Corporation has an active share repurchase program that may be suspended or discontinued at any time.