FFW Corporation Announces Earnings for the Quarter Ended September 30, 2023

WABASH, Ind., Oct. 25, 2023 (GLOBE NEWSWIRE) -- FFW Corporation (the “Corporation”) (OTC PINK: FFWC) (10/24/2023 Close: $35.60), parent corporation of Crossroads Bank (the “Bank”), announced earnings for the quarter ended September 30, 2023.

For the three months ended September 30, 2023, the Corporation reported net income of $978,000 or $0.87 per common share compared to $1,623,000 or $1.42 per common share for the three months ended September 30, 2022. Net interest income for the three months ended September 30, 2023 was $3,645,000 compared to $4,376,000 for the three months ended September 30, 2022. The provision for credit losses was $0 for the three months ended September 30, 2023 and $300,000 for the three months ended September 30, 2022. Total noninterest income was $928,000 for the three months ended September 30, 2023 compared to $1,026,000 for the three months ended September 30, 2022. Noninterest expense was $3,487,000 for the three months ended September 30, 2023 and $3,191,000 for the three months ended September 30, 2022.

The three months ended September 30, 2023 represented a return on average common equity of 8.87% compared to 13.61% for the three months ended September 30, 2022. The three months ended September 30, 2023 represented a return on average assets of 0.72% compared to 1.21% for the three months ended September 30, 2022.

The allowance for credit losses as a percentage of gross loans receivable was 1.32% at September 30, 2023 compared to 1.23% at June 30, 2023. Nonperforming assets were $1,845,000 at September 30, 2023 compared to $2,065,000 at June 30, 2023.

As of September 30, 2023, FFWC’s equity-to-assets ratio was 8.10% compared to 8.54% at June 30, 2023. Total assets at September 30, 2023 were $541,533,000 compared to $543,245,000 at June 30, 2023. Shareholders’ equity was $43,846,000 at September 30, 2023 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
	September 30			June 30
	2023			2023
	Unaudited
Assets
Cash and due from financial institutions	$	6,102,535		$	8,686,057
Interest-bearing deposits in other financial institutions		3,260,402			4,668,889
Cash and cash equivalents		9,362,937			13,354,946
Securities available for sale		105,912,763			110,063,452
Loans held for sale		84,000			80,000
Loans receivable, net of allowance for credit losses of $5,292,801 at
September 30, 2023 and $4,852,745 at June 30, 2023		395,751,052			390,544,236
Federal Home Loan Bank stock, at cost		1,289,700			1,289,700
Accrued interest receivable		2,752,820			2,648,368
Premises and equipment, net		8,060,878			8,121,511
Mortgage servicing rights		1,110,991			1,128,019
Cash surrender value of life insurance		10,167,345			10,086,476
Goodwill		1,213,898			1,213,898
Repossessed Assets		-			109,596
Other assets		5,827,032			4,604,551
Total assets	$	541,533,416		$	543,244,753
Liabilities and shareholders' equity
Deposits
Noninterest-bearing	$	56,217,861		$	53,267,081
Interest-bearing		431,138,013			437,700,301
Total deposits		487,355,874			490,967,382
Borrowings		6,000,000			2,100,000
Accrued expenses and other liabilities		4,332,013			3,792,808
Total liabilities		497,687,887			496,860,190
Shareholders' equity
Common stock, $.01 par; 2,000,000 shares authorized;
Issued: 1,836,328; outstanding: 1,126,607 - September 30, 2023 and 1,126,357 - June 30, 2023		18,363			18,363
Additional paid-in capital		10,195,967			10,150,145
Retained earnings		59,562,879			59,406,634
Accumulated other comprehensive income (loss)		(13,333,327	)		(10,588,876	)
Treasury stock, at cost: 709,721 shares at September 30, 2023 and
709,971 shares at June 30, 2023		(12,598,353	)		(12,601,703	)
Total shareholders' equity		43,845,529			46,384,563
Total liabilities and shareholders' equity	$	541,533,416		$	543,244,753

FFW Corporation Selected Financial Information
Consolidated Statement of Income
	Three Months Ended September 30
	2023			2022
	Unaudited			Unaudited
Interest and dividend income:
Loans, including fees	$	5,031,751		$	3,869,513
Taxable securities		489,120			441,825
Tax exempt securities		423,619			451,630
Other		57,374			161,572
Total interest and dividend income		6,001,864			4,924,540
Interest expense:
Deposits		2,331,850			548,353
Borrowings		25,329			-
Total interest expense		2,357,179			548,353
Net interest income		3,644,685			4,376,187
Provision for credit losses		-			300,000
Net interest income after provision for credit losses		3,644,685			4,076,187
Noninterest income:
Net gains on sales of loans		21,114			68,146
Net gains (losses) on sales of REO		(37,006	)		11,841
Commission income		335,449			318,420
Service charges and fees		245,534			279,430
Earnings on life insurance		80,869			78,304
Other		282,309			269,796
Total noninterest income		928,269			1,025,937
Noninterest expense:
Salaries and benefits		1,914,196			1,770,667
Occupancy and equipment		317,241			307,383
Professional		121,654			109,251
Marketing		81,576			93,974
Deposit insurance premium		67,000			38,000
Regulatory assessment		10,345			8,090
Correspondent bank charges		23,941			22,416
Data processing		450,967			331,142
Printing, postage and supplies		67,700			77,812
Expense on life insurance		22,796			22,099
Contribution expense		9,709			9,501
Expense on REO		5,822			4,783
Other		394,473			395,580
Total noninterest expense		3,487,420			3,190,698
Income before income taxes		1,085,534			1,911,426
Income tax expense		107,874			288,387
Net income	$	977,660		$	1,623,039

FFW Corporation Selected Financial Information
Key Balances and Ratios
		Three Months Ended September 30
		2023			2022
		Unaudited			Unaudited
Per common share data:
Earnings		$0.87			$1.42
Diluted earnings		$0.87			$1.42
Dividends paid		$0.29			$0.28
Average shares issued and outstanding			1,126,628			1,140,413
Shares outstanding end of period			1,126,607			1,130,963
Supplemental data:
Net interest margin **			2.75	%		3.37	%
Return on average assets ***			0.72	%		1.21	%
Return on average common equity ***			8.87	%		13.61	%
		September 30			June 30
		2023			2023
Nonperforming assets *		$1,844,964			$2,065,381
Repossessed assets		$0			$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 [phone]