WABASH, Ind., April 24, 2024 (GLOBE NEWSWIRE) -- FFW Corporation (the “Corporation”) (OTC PINK: FFWC) (4/23/2024 Close: $34.65), parent corporation of Crossroads Bank (the “Bank”), announced earnings for the quarter and year to date ended March 31, 2024.
For the three months ended March 31, 2024, the Corporation reported net income of $920,000 or $0.82 per common share compared to $1,216,000 or $1.07 per common share for the three months ended March 31, 2023. Net interest income for the three months ended March 31, 2024 was $3,536,000 compared to $3,975,000 for the three months ended March 31, 2023. The provision for credit losses was $0 for the three months ended March 31, 2024 compared to $75,000 for the three months ended March 31, 2023. Total noninterest income was $1,068,000 for the three months ended March 31, 2024 compared to $880,000 for the three months ended March 31, 2023. Noninterest expense was $3,609,000 for the three months ended March 31, 2024 and $3,478,000 for the three months ended March 31, 2023.
For the nine months ended March 31, 2024, the Corporation reported net income of $2,972,000 or $2.64 per common share compared to $4,355,000 or $3.84 per common share for the nine months ended March 31, 2023. Net interest income for the nine months ended March 31, 2024 was $10,813,000 compared to $12,599,000 for the nine months ended March 31, 2023. The Company recognized a provision for credit losses of $0 for the nine months ended March 31, 2024 and $475,000 for the nine months ended March 31, 2023. Total noninterest income was $3,007,000 for the nine months ended March 31, 2024 compared to $2,975,000 for the nine months ended March 31, 2023. Noninterest expense was $10,584,000 for the nine months ended March 31, 2024 and $10,084,000 for the nine months ended March 31, 2023.
The three and nine months ended March 31, 2024 represented a return on average common equity of 7.67% and 8.56%, respectively, compared to 10.47% and 12.59% for the three and nine month periods ended March 31, 2023. The three and nine months ended March 31, 2024 represented a return on average assets of 0.66% and 0.72%, respectively, compared to 0.93% and 1.09%, for the three and nine month periods ended March 31, 2023.
The allowance for credit losses as a percentage of gross loans receivable was 1.29% at March 31, 2024 compared to 1.23% at June 30, 2023. Nonperforming assets were $4,105,000 at March 31, 2024 compared to $2,065,000 at June 30, 2023.
As of March 31, 2024, FFWC’s equity-to-assets ratio was 8.62% compared to 8.54% at June 30, 2023. Total assets at March 31, 2024 were $556,704,000 compared to $543,245,000 at June 30, 2023. Shareholders’ equity was $47,963,000 at March 31, 2024 compared to $46,385,000 at June 30, 2023. 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
March 31
June 30
2024
2023
Unaudited
Assets
Cash and due from financial institutions
$
2,635,498
$
8,686,057
Interest-bearing deposits in other financial institutions
4,410,327
4,668,889
Cash and cash equivalents
7,045,825
13,354,946
Securities available for sale
107,185,861
110,063,452
Loans held for sale
158,000
80,000
Loans receivable, net of allowance for credit losses of $5,366,311 at
March 31, 2024 and $4,852,745 at June 30, 2023
410,645,871
390,544,236
Federal Home Loan Bank stock, at cost
1,289,700
1,289,700
Accrued interest receivable
2,718,842
2,648,368
Premises and equipment, net
7,762,148
8,121,511
Mortgage servicing rights
1,095,003
1,128,019
Cash surrender value of life insurance
12,619,809
10,086,476
Goodwill
1,213,898
1,213,898
Repossessed assets
1,250
109,596
Other assets
4,967,346
4,604,551
Total assets
$
556,703,553
$
543,244,753
Liabilities and shareholders' equity
Deposits
Noninterest-bearing
$
50,711,836
$
53,267,081
Interest-bearing
446,835,882
437,700,301
Total deposits
497,547,718
490,967,382
Borrowings
6,500,000
2,100,000
Accrued expenses and other liabilities
4,692,595
3,792,808
Total liabilities
508,740,313
496,860,190
Shareholders' equity
Common stock, $.01 par; 2,000,000 shares authorized;
Issued: 1,836,328; outstanding: 1,126,843 - March 31, 2024 and 1,126,357 - June 30, 2023
18,363
18,363
Additional paid-in capital
10,220,664
10,150,145
Retained earnings
60,903,966
59,406,634
Accumulated other comprehensive income (loss)
(10,532,232
)
(10,588,876
)
Treasury stock, at cost: 709,485 at March 31, 2024 and
709,971 shares at June 30, 2023
(12,647,521
)
(12,601,703
)
Total shareholders' equity
47,963,240
46,384,563
Total liabilities and shareholders' equity
$
556,703,553
$
543,244,753
FFW Corporation Selected Financial Information
Consolidated Statement of Income
Three Months Ended March 31
Nine Months Ended March 31
2024
2023
2024
2023
Unaudited
Unaudited
Unaudited
Unaudited
Interest and dividend income:
Loans, including fees
$
5,373,052
$
4,494,524
$
15,688,146
$
12,606,871
Taxable securities
508,864
477,067
1,493,040
1,381,213
Tax exempt securities
407,951
457,460
1,250,686
1,377,899
Other
57,616
76,502
189,900
360,583
Total interest and dividend income
6,347,483
5,505,553
18,621,772
15,726,566
Interest expense:
Deposits
2,746,943
1,526,134
7,680,525
3,121,684
Borrowings
64,888
4,665
128,357
6,037
Total interest expense
2,811,831
1,530,799
7,808,882
3,127,721
Net interest income
3,535,652
3,974,754
10,812,890
12,598,845
Provision for credit losses
-
75,000
-
475,000
Net interest income after provision for
credit losses
3,535,652
3,899,754
10,812,890
12,123,845
Noninterest income:
Net gains (losses) on sales of securities
-
(3,633
)
-
(3,633
)
Net gains on sales of loans
28,349
12,710
71,755
151,602
Net gains (losses) on fixed assets
-
(20,533
)
-
(20,533
)
Net gains (losses) on sales of REO
-
(8,775
)
(37,006
)
3,066
Commission income
364,240
299,231
1,034,231
923,239
Service charges and fees
276,777
242,269
779,262
804,352
Earnings on life insurance
107,851
79,662
283,332
238,088
Other
291,081
278,705
874,958
879,123
Total noninterest income
1,068,298
879,636
3,006,532
2,975,304
Noninterest expense:
Salaries and benefits
1,942,761
1,913,505
5,726,167
5,551,802
Occupancy and equipment
323,582
320,444
950,172
932,825
Professional
116,840
109,579
359,794
326,487
Marketing
98,890
102,263
281,794
281,215
Deposit insurance premium
69,000
39,025
207,666
119,968
Regulatory assessment
10,345
8,511
31,035
24,690
Correspondent bank charges
25,675
21,650
69,885
66,073
Data processing
474,275
435,771
1,384,115
1,236,359
Printing, postage and supplies
64,214
65,940
219,432
221,267
Expense on life insurance
41,249
21,889
88,785
65,982
Contribution expense
20,946
20,248
40,881
40,124
Expense on REO
-
636
5,822
6,540
Other
421,267
418,077
1,217,961
1,210,389
Total noninterest expense
3,609,044
3,477,538
10,583,509
10,083,721
Income before income taxes
994,906
1,301,852
3,235,913
5,015,428
Income tax expense
75,100
85,468
264,001
660,505
Net income
$
919,806
$
1,216,384
$
2,971,912
$
4,354,923
FFW Corporation Selected Financial Information
Key Balances and Ratios
Three Months Ended March 31
Nine Months Ended March 31
2024
2023
2024
2023
Unaudited
Unaudited
Unaudited
Unaudited
Per common share data:
Earnings
$0.82
$1.07
$2.64
$3.84
Diluted earnings
$0.82
$1.07
$2.64
$3.84
Dividends paid
$0.29
$0.28
$0.87
$0.84
Average shares issued and outstanding
1,128,394
1,128,995
1,126,998
1,133,501
Shares outstanding end of period
1,126,843
1,127,357
1,126,843
1,127,357
Supplemental data:
Net interest margin **
2.66%
3.13%
2.70%
3.25%
Return on average assets ***
0.66%
0.93%
0.72%
1.09%
Return on average common equity ***
7.67%
10.47%
8.56%
12.59%
March 31
June 30
2024
2023
Nonperforming assets *
$4,105,121
$2,065,381
Repossessed assets
$1,250
$109,596
*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
