FFW Corporation Announces Earnings and Special Dividend

WABASH, Ind., April 26, 2023 (GLOBE NEWSWIRE) -- FFW Corporation (the “Corporation”) (OTC PINK: FFWC) (4/25/2023 Close: $42.00), parent corporation of Crossroads Bank (the “Bank”), announced earnings for the quarter and year to date ended March 31, 2023.

For the three months ended March 31, 2023, the Corporation reported net income of $1,216,000 or $1.07 per common share compared to $1,369,000 or $1.20 per common share for the three months ended March 31, 2022. Net interest income for the three months ended March 31, 2023 was $3,975,000 compared to $3,745,000 for the three months ended March 31, 2022. The provision for loan losses was $75,000 for the three months ended March 31, 2023 and March 31, 2022. Total noninterest income was $880,000 for the three months ended March 31, 2023 compared to $1,120,000 for the three months ended March 31, 2022. Noninterest expense was $3,478,000 for the three months ended March 31, 2023 and $3,291,000 for the three months ended March 31, 2022.

For the nine months ended March 31, 2023, the Corporation reported net income of $4,355,000 or $3.84 per common share compared to $4,197,000 or $3.67 per common share for the nine months ended March 31, 2022. Net interest income for the nine months ended March 31, 2023 was $12,599,000 compared to $11,338,000 for the nine months ended March 31, 2022. The Company recognized a provision for loan losses of $475,000 for the nine months ended March 31, 2023 and $205,000 for the nine months ended March 31, 2022. Total noninterest income was $2,975,000 for the nine months ended March 31, 2023 compared to $3,366,000 for the nine months ended March 31, 2022. Noninterest expense was $10,084,000 for the nine months ended March 31, 2023 and $9,718,000 for the nine months ended March 31, 2022.

The three and nine months ended March 31, 2023 represented a return on average common equity of 10.47% and 12.59%, respectively, compared to 10.30% and 10.32% for the three and nine month periods ended March 31, 2022. The three and nine months ended March 31, 2023 represented a return on average assets of 0.93% and 1.09%, respectively, compared to 1.04% and 1.08%, for the three and nine month periods ended March 31, 2022.

The allowance for loan losses as a percentage of gross loans receivable was 1.23% at March 31, 2023 compared to 1.28% at June 30, 2022. Nonperforming assets were $2,183,000 at March 31, 2023 compared to $2,345,000 at June 30, 2022.

The Board of Directors has declared a special cash dividend of $1.25 per share of the Company’s common stock. The dividend is payable May 31, 2023 to shareholders of record on May 17, 2023.

As of March 31, 2023, FFWC’s equity-to-assets ratio was 8.85% compared to 8.72% at June 30, 2022. Total assets at March 31, 2023 were $542,885,000 compared to $534,918,000 at June 30, 2022. Shareholders’ equity was $48,060,000 at March 31, 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
		March 31			June 30
		2023			2022
		Unaudited
Assets
Cash and due from financial institutions		$	6,090,005		$	7,122,187
Interest-bearing deposits in other financial institutions			12,928,912			48,456,109
	Cash and cash equivalents		19,018,917			55,578,296
Securities available for sale			112,343,889			115,717,308
Loans held for sale			-			248,000
Loans receivable, net of allowance for loan losses of $4,776,796 at March 31, 2023 and $4,342,121 at June 30, 2022			383,066,522			335,672,317
Federal Home Loan Bank stock, at cost			1,289,700			1,289,700
Accrued interest receivable			2,336,991			2,105,470
Premises and equipment, net			8,219,360			8,481,385
Mortgage servicing rights			1,143,885			1,138,165
Cash surrender value of life insurance			10,005,880			9,767,792
Goodwill			1,213,898			1,213,898
Repossessed Assets			-			75,025
Other assets			4,246,342			3,630,737
	Total assets	$	542,885,384		$	534,918,093
Liabilities and shareholders' equity
Deposits
	Noninterest-bearing	$	53,706,317		$	55,960,708
	Interest-bearing		437,336,866			428,550,708
	Total deposits		491,043,183			484,511,416
Accrued expenses and other liabilities			3,781,728			3,758,195
	Total liabilities		494,824,911			488,269,611
Shareholders' equity
Common stock, $.01 par; 2,000,000 shares authorized;
	Issued: 1,836,328; outstanding: 1,127,357 - March 31, 2023 and 1,140,305 - June 30, 2022		18,363			18,363
Additional paid-in capital			10,100,525			9,940,774
Retained earnings			59,787,611			56,384,625
Accumulated other comprehensive income (loss)			(9,288,073	)		(7,726,089	)
Treasury stock, at cost: 708,971 shares at March 31, 2023 and
696,023 shares at June 30, 2022			(12,557,953	)		(11,969,191	)
	Total shareholders' equity		48,060,473			46,648,482
	Total liabilities and shareholders' equity	$	542,885,384		$	534,918,093

FFW Corporation Selected Financial Information
Consolidated Statement of Income
			Three Months Ended March 31					Nine Months Ended March 31
			2023			2022		2023			2022
			Unaudited			Unaudited		Unaudited			Unaudited
Interest and dividend income:
	Loans, including fees		$	4,494,524		$	3,342,482	$	12,606,871		$	10,097,771
	Taxable securities			477,067			289,642		1,381,213			976,127
	Tax exempt securities			457,460			407,352		1,377,899			1,228,982
	Other			76,502			25,514		360,583			69,363
		Total interest and dividend income		5,505,553			4,064,990		15,726,566			12,372,243
Interest expense:
	Deposits			1,526,134			319,839		3,121,684			1,034,161
	Borrowings			4,665			-		6,037			1
		Total interest expense		1,530,799			319,839		3,127,721			1,034,162
Net interest income				3,974,754			3,745,151		12,598,845			11,338,081
Provision for loan losses				75,000			75,000		475,000			205,000
Net interest income after provision for
	loan losses			3,899,754			3,670,151		12,123,845			11,133,081
Noninterest income:
	Net gains (losses) on sales of securities			(3,633	)		-		(3,633	)		-
	Net gains on sales of loans			12,710			92,943		151,602			447,769
	Net gains (losses) on fixed assets			(20,533	)		24,033		(20,533	)		34,283
	Net gains (losses) on sales of REO			(8,775	)		4,532		3,066			11,286
	Commission income			299,231			305,301		923,239			941,537
	Service charges and fees			242,269			349,991		804,352			859,663
	Earnings on life insurance			79,662			76,749		238,088			230,396
	Other			278,705			266,661		879,123			840,757
		Total noninterest income		879,636			1,120,210		2,975,304			3,365,691
Noninterest expense:
	Salaries and benefits			1,913,505			1,794,574		5,551,802			5,285,688
	Occupancy and equipment			320,444			338,682		932,825			985,152
	Professional			109,579			111,657		326,487			336,807
	Marketing			102,263			85,077		281,215			303,131
	Deposit insurance premium			39,025			36,448		119,968			102,448
	Regulatory assessment			8,511			9,585		24,690			28,305
	Correspondent bank charges			21,650			19,814		66,073			58,524
	Data processing			435,771			414,997		1,236,359			1,247,433
	Printing, postage and supplies			65,940			71,759		221,267			220,037
	Expense on life insurance			21,889			21,232		65,982			63,996
	Contribution expense			20,248			22,380		40,124			53,907
	Expense on REO			636			1,068		6,540			2,093
	Other			418,077			363,451		1,210,389			1,030,468
		Total noninterest expense		3,477,538			3,290,724		10,083,721			9,717,989
Income before income taxes				1,301,852			1,499,637		5,015,428			4,780,783
Income tax expense				85,468			130,611		660,505			583,505
Net income			$	1,216,384		$	1,369,026	$	4,354,923		$	4,197,278

FFW Corporation Selected Financial Information
Key Balances and Ratios
		Three Months Ended March 31						Nine Months Ended March 31
		2023			2022			2023			2022
		Unaudited			Unaudited			Unaudited			Unaudited
Per common share data:
Earnings		$	1.07		$	1.20		$	3.84		$	3.67
Diluted earnings		$	1.07		$	1.20		$	3.84		$	3.67
Dividends paid		$	0.28		$	0.26		$	0.84		$	0.78
Average shares issued and outstanding			1,128,995			1,143,348			1,133,501			1,143,981
Shares outstanding end of period			1,127,357			1,143,327			1,127,357			1,143,327
Supplemental data:
Net interest margin **			3.13	%		3.03	%		3.25	%		3.11	%
Return on average assets ***			0.93	%		1.04	%		1.09	%		1.08	%
Return on average common equity ***			10.47	%		10.30	%		12.59	%		10.32	%
		March 31			June 30
			2023			2022
Nonperforming assets *		$	2,182,794		$	2,344,693
Repossessed assets		$	0		$	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

FOR MORE INFORMATION Contact: Kirsten Pendarvis, Treasurer, at (260) 563-3185