FFW Corporation Announces Earnings for the Quarter and Year to Date Ended March 31, 2024
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 $46,385,000 at June 30, 2023. Crossroads Bank exceeds all applicable regulatory requirements to be considered “well capitalized.” Forward Looking Statements This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include expressions such as “expects,” “intends,” “believes,” and “should,” which are necessarily statements of belief as to the expected outcomes of future events. Actual results could materially differ from those presented. The Corporation's ability to predict future results involves a number of risks and uncertainties. The Corporation undertakes no obligation to release revisions to these forward-looking statements or reflect events or circumstances after the date of this release. Crossroads Bank is a wholly owned subsidiary of FFW Corporation providing an extensive array of banking services and a wide range of investments and securities products through its main office in Wabash and six Indiana banking centers located in Columbia City, North Manchester, Peru, South Whitley, Syracuse, and Warsaw. The Bank also provides leasing services at each of its banking centers. Insurance products are offered through an affiliated company, Insurance 1 Services, Inc. The Corporation’s stock is traded on the OTC Markets under the symbol “FFWC.” Our website address is www.crossroadsbanking.com. Crossroads Bank, Member FDIC. FFW Corporation Selected Financial InformationConsolidated Balance Sheet March 31 June 30 2024 2023 Unaudited Assets Cash and due from financial institutions$ 2,635,498 $ 8,686,057 Interest-bearing deposits in other financial institutions4,410,327 4,668,889 Cash and cash equivalents7,045,825 13,354,946 Securities available for sale107,185,861 110,063,452 Loans held for sale158,000 80,000 Loans receivable, net of allowance for credit losses of $5,366,311 at March 31, 2024 and $4,852,745 at June 30, 2023410,645,871 390,544,236 Federal Home Loan Bank stock, at cost1,289,700 1,289,700 Accrued interest receivable2,718,842 2,648,368 Premises and equipment, net7,762,148 8,121,511 Mortgage servicing rights1,095,003 1,128,019 Cash surrender value of life insurance12,619,809 10,086,476 Goodwill1,213,898 1,213,898 Repossessed assets1,250 109,596 Other assets4,967,346 4,604,551 Total assets$ 556,703,553 $ 543,244,753 Liabilities and shareholders' equity Deposits Noninterest-bearing$ 50,711,836 $ 53,267,081 Interest-bearing446,835,882 437,700,301 Total deposits497,547,718 490,967,382 Borrowings6,500,000 2,100,000 Accrued expenses and other liabilities4,692,595 3,792,808 Total liabilities508,740,313 496,860,190 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, 202318,363 18,363 Additional paid-in capital10,220,664 10,150,145 Retained earnings60,903,966 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' equity47,963,240 46,384,563 Total liabilities and shareholders' equity $ 556,703,553 $ 543,244,753 FFW Corporation Selected Financial InformationConsolidated Statement of Income Three Months Ended March 31 Nine Months Ended March 31 20242023 2024 2023 UnauditedUnaudited Unaudited Unaudited Interest and dividend income: Loans, including fees$ 5,373,052$ 4,494,524 $ 15,688,146 $ 12,606,871 Taxable securities508,864477,067 1,493,040 1,381,213 Tax exempt securities407,951457,460 1,250,686 1,377,899 Other57,61676,502 189,900 360,583 Total interest and dividend income6,347,4835,505,553 18,621,772 15,726,566 Interest expense: Deposits2,746,9431,526,134 7,680,525 3,121,684 Borrowings64,8884,665 128,357 6,037 Total interest expense2,811,8311,530,799 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 loans28,34912,710 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 income364,240299,231 1,034,231 923,239 Service charges and fees276,777242,269 779,262 804,352 Earnings on life insurance107,85179,662 283,332 238,088 Other291,081278,705 874,958 879,123 Total noninterest income1,068,298879,636 3,006,532 2,975,304 Noninterest expense: Salaries and benefits1,942,7611,913,505 5,726,167 5,551,802 Occupancy and equipment323,582320,444 950,172 932,825 Professional116,840109,579 359,794 326,487 Marketing98,890102,263 281,794 281,215 Deposit insurance premium69,00039,025 207,666 119,968 Regulatory assessment10,3458,511 31,035 24,690 Correspondent bank charges25,67521,650 69,885 66,073 Data processing474,275435,771 1,384,115 1,236,359 Printing, postage and supplies64,21465,940 219,432 221,267 Expense on life insurance41,24921,889 88,785 65,982 Contribution expense20,94620,248 40,881 40,124 Expense on REO-636 5,822 6,540 Other421,267418,077 1,217,961 1,210,389 Total noninterest expense3,609,0443,477,538 10,583,509 10,083,721 Income before income taxes 994,906 1,301,852 3,235,913 5,015,428 Income tax expense75,10085,468 264,001 660,505 Net income $ 919,806$ 1,216,384 $ 2,971,912 $ 4,354,923 FFW Corporation Selected Financial InformationKey Balances and Ratios Three Months Ended March 31Nine Months Ended March 31 2024202320242023 UnauditedUnauditedUnauditedUnauditedPer common share data: Earnings$0.82$1.07$2.64$3.84Diluted earnings$0.82$1.07$2.64$3.84Dividends paid$0.29$0.28$0.87$0.84Average shares issued and outstanding1,128,3941,128,9951,126,9981,133,501Shares outstanding end of period1,126,8431,127,3571,126,8431,127,357 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 31June 30 20242023 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
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