FFW Corporation Announces Quarterly and Full Year Results
WABASH, Indiana, Jan. 26, 2022 (GLOBE NEWSWIRE) — FFW Corporation (the “Company”) (OTC PINK: FFWC) (closing on 01/25/2022: $46.95), parent company of Crossroads Bank (the “Bank”), announced its results for the quarter and year to date ended December 31, 2021.
For the quarter ended December 31, 2021, the Company reported net income of $1,358,000 or $1.19 per common share, compared to $1,774,000 or $1.55 per common share for the quarter ended December 31, 2021. December 31, 2020. Net interest income for the three months ended December 31, 2021 was $3,780,000 compared to $3,727,000 for the three months ended December 31, 2020. Provision for loan losses was $80,000 for the quarter ended December 31, 2021 and $165,000 for the quarter ended December 31, 2020. Total non-interest income was $1,032,000. for the three months ended December 31, 2021 compared to $1,814,000 for the three months ended December 31, 2020. Non-interest expense was $3,219,000 for the three months ended December 31, 2021 and $3,260,000 for the quarter ended December 31, 2020.
For the six months ended December 31, 2021, the Company reported net earnings of $2,828,000 or $2.47 per common share compared to $3,521,000 or $3.08 per common share for the six months ended December 31 2020. Net interest income for the six months ended December 31, 2021 was $7,593,000 compared to $7,434,000 for the six months ended December 31, 2020. The Company recorded an allowance for loan losses of $130,000. for the six months ended December 31, 2021 and $330,000 for the six months ended December 31, 2020. Revenue was $2,245,000 for the six months ended December 31, 2021 compared to $3,795,000 for the six months ended December 31, 2020. Non-interest expense was $6,427,000 for the six months ended December 31, 2021 and $6,686,000 for the six months ended December 31, 2020.
The three- and six-month periods ended December 31, 2021 represented an average return on common equity of 9.92% and 10.32%, respectively, compared to 13.66% and 13.69% for the three-month periods. and six months ended December 31, 2020. The three and six months ended December 31, 2021 represented an average return on assets of 1.03% and 1.10%, respectively, compared to 1.46% and 1. .47%, for the three and six-month periods ended December 31, 2020.
The allowance for loan losses as a percentage of gross loans was 1.35% as of December 31, 2021, compared to 1.43% as of June 30, 2021. Non-performing assets were $2,921,000 as of December 31, 2021, compared to $3,242,000 as of June 30, 2021.
As of December 31, 2021, FFWC’s equity to assets ratio was 10.42% compared to 10.89% as of June 30, 2021. as of December 31, 2021, compared to $52,954,000 as of June 30, 2020. 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 about the expected results of future events. Actual results could differ materially from those presented. The Company’s ability to predict future results involves a number of risks and uncertainties. The Company undertakes no obligation to issue revisions to these forward-looking statements or to reflect events or circumstances after the date of this release.
Crossroads Bank is a wholly owned subsidiary of FFW Corporation which provides a wide range of banking services and a broad range of investment and securities products through its main office in Wabash and twelve Indiana banking centers located in Columbia City, North Manchester, Peru, South Whitley, Syracuse and Warsaw. The Bank also offers leasing services in each of its banking centres. Insurance products are offered by an affiliate, Insurance 1 Services, Inc. The Company’s shares are traded on the OTC markets under the symbol “FFWC”. Our website address is www.crossroadsbanking.com. Crossroads Bank, Member FDIC.
FFW Company
Selected financial information
consolidated results
| the 31st of December | June 30th | |||||
| 2021 | 2021 | |||||
| Unaudited | ||||||
| Assets | ||||||
| Cash and receivables from financial institutions | $ | 6,153,813 | $ | 4,779,188 | ||
| Interest-bearing deposits with other financial institutions | 64 506 271 | 51,646,720 | ||||
| Cash and cash equivalents | 70,660,084 | 56,425,908 | ||||
| Titles available for sale | 114 818 062 | 116 335 455 | ||||
| Loans receivable, net of allowance for loan losses of $4,252,370 as at | ||||||
| December 31, 2021 and $4,168,689 as of June 30, 2021 | 310 761 100 | 285 643 064 | ||||
| Loans held for sale | 54,501 | 2,613,987 | ||||
| Shares of Federal Home Loan Bank, at cost | 1,462,500 | 1,462,500 | ||||
| Accrued interest receivable | 2,087,995 | 2,131,744 | ||||
| Premises and equipment, net | 8,717,373 | 8,949,842 | ||||
| Mortgage servicing rights | 1,033,145 | 1,011,046 | ||||
| Cash value of life insurance | 9,613,392 | 9,459,746 | ||||
| Good will | 1,213,898 | 1,213,898 | ||||
| Assets taken over | 58,953 | 148,621 | ||||
| other assets | 1,143,749 | 1,045,876 | ||||
| Total assets | $ | 521 624 752 | $ | 486 441 687 | ||
| Liabilities and equity | ||||||
| Deposits | ||||||
| Not bearing interest | $ | 50,431,524 | $ | 49,510,375 | ||
| Interest bearing | 412 858 678 | 380 084 790 | ||||
| Total deposits | 463,290,202 | 429 595 165 | ||||
| Accrued expenses and other liabilities | 4,002,546 | 3,892,719 | ||||
| Total responsibilities | 467 292 748 | 433 487 884 | ||||
| Equity | ||||||
| Common stock, $.01 per; 2,000,000 shares authorized; | ||||||
| Issued: 1,836,328; in circulation: 1,143,377 – December 31, 2021 and 1,141,190 – June 30, 2021 | 18,363 | 18,363 | ||||
| Premium | 9,834,406 | 9,809,754 | ||||
| Retained earnings | 54,085,891 | 51 852 194 | ||||
| Accumulated other comprehensive income | 2,220,454 | 3,058,832 | ||||
| Treasury shares, at cost: 692,951 shares as of December 31, 2021 and 695,138 | ||||||
| shares as of June 30, 2021 | (11,827,110 | ) | (11,785,340 | ) | ||
| Total equity | 54,332,004 | 52,953,803 | ||||
| Total liabilities and equity | $ | 521 624 752 | $ | 486 441 687 | ||
FFW Company
Selected financial information
Consolidated income statement
| Quarter ended December 31 | Semester ended December 31 | ||||||||
| 2021 | 2020 | 2021 | 2020 | ||||||
| Unaudited | Unaudited | Unaudited | Unaudited | ||||||
| Interest and dividend income: | |||||||||
| Loans including fees | $ | 3,362,773 | $ | 3,559,989 | $ | 6,755,289 | $ | 7,164,305 | |
| Taxable securities | 331 914 | 321 319 | 686 485 | 654 512 | |||||
| Tax-exempt securities | 407 372 | 417,657 | 821 630 | 789 928 | |||||
| Other | 25,096 | 9,728 | 43,849 | 17,509 | |||||
| Total interest and dividend income | 4,127,155 | 4,308,693 | 8,307,253 | 8,626,254 | |||||
| Interest charges: | |||||||||
| Deposits | 347,651 | 581 261 | 714 322 | 1,192,646 | |||||
| Loans | 1 | – | 1 | – | |||||
| Total interest expense | 347,652 | 581 261 | 714 323 | 1,192,646 | |||||
| Net interest income | 3,779,503 | 3,727,432 | 7,592,930 | 7,433,608 | |||||
| Allowance for loan losses | 80,000 | 165,000 | 130,000 | 330,000 | |||||
| Net interest income after provision for loan losses | 3,699,503 | 3,562,432 | 7,462,930 | 7,103,608 | |||||
| Non-interest income: | |||||||||
| Net gains on sale of securities | – | – | – | 98,467 | |||||
| Net gains on loan assignments | 72 163 | 1,013,356 | 354,826 | 2,208,842 | |||||
| Net capital gains (losses) | 10,250 | 9,204 | 10,250 | 9,204 | |||||
| Net gains (losses) on REO sales | 13,770 | – | 6,754 | (6,535 | ) | ||||
| commission income | 313,632 | 281,325 | 636 236 | 571 403 | |||||
| Service charges and fees | 246 442 | 199 419 | 509 672 | 294,838 | |||||
| Earnings on life insurance | 77,282 | 75,379 | 153,647 | 149,820 | |||||
| Other | 298,788 | 235 103 | 574,096 | 469 446 | |||||
| Total non-interest income | 1,032,327 | 1,813,786 | 2,245,481 | 3,795,485 | |||||
| Non-interest expenses: | |||||||||
| Salaries and benefits | 1,778,904 | 1,714,403 | 3,491,114 | 3,475,467 | |||||
| Occupancy and equipment | 320 454 | 321 365 | 646,470 | 664 459 | |||||
| Professional | 106,231 | 92,608 | 225 150 | 153 194 | |||||
| Marketing | 105,686 | 108,652 | 218,054 | 222,593 | |||||
| Deposit insurance premium | 33,000 | 33,000 | 66,000 | 66,000 | |||||
| Regulatory assessment | 9,360 | 9,301 | 18,720 | 18,602 | |||||
| Correspondent bank fees | 19,186 | 17,146 | 38,710 | 34,663 | |||||
| Data processing | 413 164 | 400 688 | 832 436 | 821 270 | |||||
| Printing, postage and supplies | 75,994 | 72,084 | 148 278 | 167,496 | |||||
| Life insurance costs | 21,332 | 15,849 | 42,764 | 31,698 | |||||
| Contributions | 10,513 | 11,887 | 31,527 | 27,275 | |||||
| Spend on REO | 4,961 | 3,258 | 1,025 | 8,039 | |||||
| Other | 319,979 | 459 435 | 667,017 | 994 748 | |||||
| Total non-interest expense | 3,218,764 | 3,259,676 | 6,427,265 | 6,685,504 | |||||
| income before taxes | 1,513,066 | 2,116,542 | 3,281,146 | 4,213,589 | |||||
| income tax expense | 155,358 | 342,970 | 452,894 | 692 487 | |||||
| Net revenue | $ | 1,357,708 | $ | 1,773,572 | $ | 2,828,252 | $ | 3,521,102 | |
FFW Company
Selected financial information
Main balances and ratios
| Quarter ended December 31 | Semester ended December 31 | ||||
| 2021 | 2020 | 2021 | 2020 | ||
| Unaudited | Unaudited | Unaudited | Unaudited | ||
| Data per joint action: | |||||
| Earnings | $1.19 | $1.55 | $2.47 | $3.08 | |
| Diluted profit | $1.19 | $1.55 | $2.47 | $3.08 | |
| Dividends paid | $0.26 | $0.25 | $0.52 | $0.50 | |
| Average number of shares issued and outstanding | 1,143,377 | 1,142,690 | 1,144,291 | 1,142,690 | |
| Shares outstanding at the end of the period | 1,143,377 | 1,142,690 | 1,143,377 | 1,142,690 | |
| Additional data: | |||||
| Net interest margin ** | 3.07% | 3.30% | 3.15% | 3.34% | |
| Return on average assets*** | 1.03% | 1.46% | 1.10% | 1.47% | |
| Return on average equity*** | 9.92% | 13.66% | 10.32% | 13.69% | |
| the 31st of December | June 30th | ||||
| 2021 | 2021 | ||||
| Non-performing assets* | $2,920,997 | $3,241,581 | |||
| Goods repossessed | $58,953 | $148,621 | |||
| * | Includes non-accumulated loans, accumulated loans more than 90 days past due and repossessed assets | ||||
| ** | Returns reflected have not been calculated on a tax equivalent basis | ||||
| *** | annualized | ||||
FOR MORE INFORMATION Contact: Kirsten Pendarvis, Treasurer, at (260) 563-3185