FFW Corporation Announces Earnings for the Fiscal Year Ended June 30, 2023

WABASH, Ind., Aug. 08, 2023 (GLOBE NEWSWIRE) -- FFW Corporation (the “Corporation”) (OTC PINK: FFWC) (8/7/23 Close: $39.50), parent corporation of Crossroads Bank (the “Bank”), announced earnings for the fiscal year ended June 30, 2023.

For the three months ended June 30, 2023, the Corporation reported net income of $1,343,000 or $1.19 per common share compared to $1,523,000 or $1.33 per common share for the three months ended June 30, 2022. Net interest income for the three months ended June 30, 2023 was $3,800,000 compared to $4,071,000 for the three months ended June 30, 2022. The provision for loan losses was $75,000 for the three months ended June 30, 2023 and $200,000 for the three months ended June 30, 2022. Total noninterest income was $1,030,000 for the three months ended June 30, 2023 compared to $1,075,000 for the three months ended June 30, 2022. Noninterest expense was $3,349,000 for the three months ended June 30, 2023 and $3,215,000 for the three months ended June 30, 2022.

For the twelve months ended June 30, 2023, the Corporation reported net income of $5,698,000 or $5.03 per common share compared to $5,721,000 or $5.00 per common share for the twelve months ended June 30, 2022. Net interest income for the twelve months ended June 30, 2023 was $15,849,000 compared to $15,409,000 for the twelve months ended June 30, 2022. The Company recognized a provision for loan losses of $550,000 for the twelve months ended June 30, 2023 and $405,000 for the twelve months ended June 30, 2022. Total noninterest income was $4,005,000 for the twelve months ended June 30, 2023 compared to $4,441,000 for the twelve months ended June 30, 2022. Noninterest expense was $13,433,000 for the twelve months ended June 30, 2023 and $12,933,000 for the twelve months ended June 30, 2022.

The three and twelve months ended June 30, 2023 represented a return on average common equity of 11.30% and 12.26%, respectively, compared to 12.63% and 10.85% for the three and twelve month periods ended June 30, 2022. The three and twelve months ended June 30, 2023 represented a return on average assets of 0.99% and 1.07%, respectively, compared to 1.16% and 1.10% for the three and twelve month periods ended June 30, 2022.

The allowance for loan losses as a percentage of gross loans receivable was 1.23% at June 30, 2023 compared to 1.28% at June 30, 2022. Nonperforming assets were $2,065,000 at June 30, 2023 compared to $2,345,000 at June 30, 2022.

As of June 30, 2023, FFWC’s equity-to-assets ratio was 8.54% compared to 8.72% at June 30, 2022. Total assets at June 30, 2023 were $543,245,000 compared to $534,918,000 at June 30, 2022. Shareholders’ equity was $46,385,000 at June 30, 2023 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
	June 30			June 30
		2023			2022
	Unaudited
Assets
Cash and due from financial institutions	$	8,686,057		$	7,122,187
Interest-bearing deposits in other financial institutions		4,668,889			48,456,109
Cash and cash equivalents		13,354,946			55,578,296
Securities available for sale		110,063,452			115,717,308
Loans held for sale		80,000			248,000
Loans receivable, net of allowance for loan losses of $4,852,745 at June 30, 2023 and $4,342,121 at June 30, 2022		390,544,236			335,672,317
Federal Home Loan Bank stock, at cost		1,289,700			1,289,700
Accrued interest receivable		2,648,368			2,105,470
Premises and equipment, net		8,121,511			8,481,385
Mortgage servicing rights		1,128,019			1,138,165
Cash surrender value of life insurance		10,086,476			9,767,792
Goodwill		1,213,898			1,213,898
Repossessed Assets		109,596			75,025
Other assets		4,604,551			3,630,737
Total assets	$	543,244,753		$	534,918,093
Liabilities and shareholders' equity
Deposits
Noninterest-bearing	$	53,267,081		$	55,960,708
Interest-bearing		437,700,301			428,550,708
Total deposits		490,967,382			484,511,416
Borrowings		2,100,000			-
Accrued expenses and other liabilities		3,792,808			3,758,195
Total liabilities		496,860,190			488,269,611
Shareholders' equity
Common stock, $.01 par; 2,000,000 shares authorized;
Issued: 1,836,328; outstanding: 1,126,357 - June 30, 2023 and 1,140,305 - June 30, 2022		18,363			18,363
Additional paid-in capital		10,150,145			9,940,774
Retained earnings		59,406,634			56,384,625
Accumulated other comprehensive income (loss)		(10,588,876	)		(7,726,089	)
Treasury stock, at cost: 709,971 shares at June 30, 2023 and 696,023 shares at June 30, 2022		(12,601,703	)		(11,969,191	)
Total shareholders' equity		46,384,563			46,648,482
Total liabilities and shareholders' equity	$	543,244,753		$	534,918,093

FFW Corporation
Selected Financial Information
Consolidated Statement of Income
	Three Months Ended June 30						Twelve Months Ended June 30
		2023			2022			2023			2022
	Unaudited			Unaudited			Unaudited			Unaudited
Interest and dividend income:
Loans, including fees	$	4,797,377		$	3,562,772		$	17,404,248		$	13,660,543
Taxable securities		483,668			341,548			1,864,881			1,317,675
Tax exempt securities		426,926			423,846			1,804,825			1,652,828
Other		188,303			128,452			548,886			197,815
Total interest and dividend income		5,896,274			4,456,618			21,622,840			16,828,861
Interest expense:
Deposits		2,095,131			385,508			5,216,815			1,419,669
Borrowings		1,059			200			7,096			201
Total interest expense		2,096,190			385,708			5,223,911			1,419,870
Net interest income		3,800,084			4,070,910			16,398,929			15,408,991
Provision for loan losses		75,000			200,000			550,000			405,000
Net interest income after provision for loan losses		3,725,084			3,870,910			15,848,929			15,003,991
Noninterest income:
Net gains (losses) on sales of securities		-			-			(3,633	)		-
Net gains on sales of loans		15,397			75,450			166,999			523,219
Net gains (losses) on fixed assets		-			-			(20,533	)		34,283
Net gains (losses) on sales of REO		18,039			(17,909	)		21,105			(6,623	)
Commission income		374,866			337,665			1,298,105			1,279,202
Service charges and fees		248,318			275,763			1,052,670			1,135,426
Earnings on life insurance		80,596			77,651			318,684			308,047
Other		292,868			326,669			1,171,991			1,167,426
Total noninterest income		1,030,084			1,075,289			4,005,388			4,440,980
Noninterest expense:
Salaries and benefits		1,789,700			1,815,040			7,341,502			7,100,728
Occupancy and equipment		314,274			313,309			1,247,099			1,298,461
Professional		146,533			111,887			473,020			448,694
Marketing		83,207			90,882			364,422			394,013
Deposit insurance premium		82,000			38,304			201,968			140,752
Regulatory assessment		8,090			9,074			32,780			37,379
Correspondent bank charges		21,641			22,200			87,714			80,724
Data processing		419,607			337,292			1,655,966			1,584,725
Printing, postage and supplies		57,018			73,382			278,285			293,419
Expense on life insurance		21,785			21,132			87,767			85,128
Contribution expense		8,876			11,676			49,000			65,583
Expense on REO		2,837			5,412			9,377			7,505
Other		393,378			365,584			1,603,767			1,396,052
Total noninterest expense		3,348,946			3,215,174			13,432,667			12,933,163
Income before income taxes		1,406,222			1,731,025			6,421,650			6,511,808
Income tax expense		63,249			207,572			723,754			791,077
Net income	$	1,342,973		$	1,523,453		$	5,697,896		$	5,720,731

FFW Corporation
Selected Financial Information
Key Balances and Ratios
		Three Months Ended June 30						Twelve Months Ended June 30
		2023			2022			2023			2022
		Unaudited			Unaudited			Unaudited			Unaudited
Per common share data:
Earnings			$1.19			$1.33			$5.03			$5.00
Diluted earnings			$1.19			$1.33			$5.03			$5.00
Dividends paid			$1.53			$0.26			$2.37			$1.04
Average shares issued and outstanding			1,126,522			1,141,763			1,131,761			1,143,428
Shares outstanding end of period			1,126,357			1,140,305			1,126,357			1,140,305
Supplemental data:
Net interest margin **			2.85	%		3.15	%		3.15	%		3.12	%
Return on average assets ***			0.99	%		1.16	%		1.07	%		1.10	%
Return on average common equity ***			11.30	%		12.63	%		12.26	%		10.85	%
		June 30			June 30
		2023			2022
Nonperforming assets *			$2,065,381			$2,344,693
Repossessed assets			$109,596			$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

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