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 Information
Consolidated 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 institutions	4,410,327			4,668,889
Cash and cash equivalents	7,045,825			13,354,946

Securities available for sale	107,185,861			110,063,452
Loans held for sale	158,000			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, 2023	410,645,871			390,544,236
Federal Home Loan Bank stock, at cost	1,289,700			1,289,700
Accrued interest receivable	2,718,842			2,648,368
Premises and equipment, net	7,762,148			8,121,511
Mortgage servicing rights	1,095,003			1,128,019
Cash surrender value of life insurance	12,619,809			10,086,476
Goodwill	1,213,898			1,213,898
Repossessed assets	1,250			109,596
Other assets	4,967,346			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-bearing	446,835,882			437,700,301
Total deposits	497,547,718			490,967,382

Borrowings	6,500,000			2,100,000
Accrued expenses and other liabilities	4,692,595			3,792,808
Total liabilities	508,740,313			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, 2023	18,363			18,363
Additional paid-in capital	10,220,664			10,150,145
Retained earnings	60,903,966			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' equity	47,963,240			46,384,563

Total liabilities and shareholders' equity	$	556,703,553		$	543,244,753

FFW Corporation Selected Financial Information
Consolidated Statement of Income
		Three Months Ended March 31					Nine Months Ended March 31
		2024		2023			2024			2023
		Unaudited		Unaudited			Unaudited			Unaudited
Interest and dividend income:
	Loans, including fees	$	5,373,052	$	4,494,524		$	15,688,146		$	12,606,871
	Taxable securities	508,864		477,067			1,493,040			1,381,213
	Tax exempt securities	407,951		457,460			1,250,686			1,377,899
	Other	57,616		76,502			189,900			360,583
	Total interest and dividend income	6,347,483		5,505,553			18,621,772			15,726,566

Interest expense:
	Deposits	2,746,943		1,526,134			7,680,525			3,121,684
	Borrowings	64,888		4,665			128,357			6,037
	Total interest expense	2,811,831		1,530,799			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 loans	28,349		12,710			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 income	364,240		299,231			1,034,231			923,239
	Service charges and fees	276,777		242,269			779,262			804,352
	Earnings on life insurance	107,851		79,662			283,332			238,088
	Other	291,081		278,705			874,958			879,123
	Total noninterest income	1,068,298		879,636			3,006,532			2,975,304

Noninterest expense:
	Salaries and benefits	1,942,761		1,913,505			5,726,167			5,551,802
	Occupancy and equipment	323,582		320,444			950,172			932,825
	Professional	116,840		109,579			359,794			326,487
	Marketing	98,890		102,263			281,794			281,215
	Deposit insurance premium	69,000		39,025			207,666			119,968
	Regulatory assessment	10,345		8,511			31,035			24,690
	Correspondent bank charges	25,675		21,650			69,885			66,073
	Data processing	474,275		435,771			1,384,115			1,236,359
	Printing, postage and supplies	64,214		65,940			219,432			221,267
	Expense on life insurance	41,249		21,889			88,785			65,982
	Contribution expense	20,946		20,248			40,881			40,124
	Expense on REO	-		636			5,822			6,540
	Other	421,267		418,077			1,217,961			1,210,389
	Total noninterest expense	3,609,044		3,477,538			10,583,509			10,083,721

Income before income taxes		994,906		1,301,852			3,235,913			5,015,428

Income tax expense		75,100		85,468			264,001			660,505

Net income		$	919,806	$	1,216,384		$	2,971,912		$	4,354,923

FFW Corporation Selected Financial Information
Key Balances and Ratios
	Three Months Ended March 31		Nine Months Ended March 31
	2024	2023	2024	2023
	Unaudited	Unaudited	Unaudited	Unaudited
Per common share data:
Earnings	$0.82	$1.07	$2.64	$3.84
Diluted earnings	$0.82	$1.07	$2.64	$3.84
Dividends paid	$0.29	$0.28	$0.87	$0.84
Average shares issued and outstanding	1,128,394	1,128,995	1,126,998	1,133,501
Shares outstanding end of period	1,126,843	1,127,357	1,126,843	1,127,357

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 31	June 30
	2024	2023
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