ADVERTISEMENT
Press release content from Globe Newswire. The AP news staff was not involved in its creation.
PRESS RELEASE: Paid content from Globe Newswire
Press release content from Globe Newswire. The AP news staff was not involved in its creation.

FFW Corporation Announces Earnings for the Quarter Ended September 30, 2021

October 27, 2021 GMT

WABASH, Ind., Oct. 27, 2021 (GLOBE NEWSWIRE) -- FFW Corporation (the “Corporation”) (OTC PINK: FFWC) (10/26/2021 Close: $47.50), parent corporation of Crossroads Bank (the “Bank”), announced earnings for the quarter ended September 30, 2021.

For the three months ended September 30, 2021, the Corporation reported net income of $1,471,000 or $1.28 per common share compared to $1,748,000 or $1.53 per common share for the three months ended September 30, 2020. Net interest income for the three months ended September 30, 2021 was $3,813,000 compared to $3,706,000 for the three months ended September 30, 2020. The provision for loan losses was $50,000 for the three months ended September 30, 2021 and $165,000 for the three months ended September 30, 2020. Total noninterest income was $1,213,000 for the three months ended September 30, 2021 compared to $1,982,000 for the three months ended September 30, 2020. Noninterest expense was $3,209,000 for the three months ended September 30, 2021 and $3,426,000 for the three months ended September 30, 2020.

ADVERTISEMENT

The three months ended September 30, 2021 represented a return on average common equity of 10.72% compared to 13.71% for the three months ended September 30, 2020. The three months ended September 30, 2021 represented a return on average assets of 1.17% compared to 1.48% for the three months ended September 30, 2020.

The allowance for loan losses as a percentage of gross loans receivable was 1.37% at September 30, 2021 compared to 1.43% at June 30, 2021. Nonperforming assets were $3,229,000 at September 30, 2021 compared to $3,242,000 at June 30, 2021.

As of September 30, 2021, FFWC’s equity-to-assets ratio was 10.75% compared to 10.89% at June 30, 2021. Total assets at September 30, 2021 were $500,042,000 compared to $486,442,000 at June 30, 2021. Shareholders’ equity was $53,760,000 at September 30, 2021 compared to $52,954,000 at June 30, 2021. 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.

ADVERTISEMENT

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 twelve 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 30June 30
   2021  2021 
  Unaudited 
Assets  
Cash and due from financial institutions$6,567,703 $4,779,188 
Interest-bearing deposits in other financial institutions 48,015,361  51,646,720 
 Cash and cash equivalents 54,583,064  56,425,908 
   
Securities available for sale 116,500,686  116,335,455 
Loans receivable, net of allowance for loan losses of $4,204,048 at  
September 30, 2021 and $4,168,689 at June 30, 2021 302,895,512  285,643,064 
Loans held for sale 562,044  2,613,987 
Federal Home Loan Bank stock, at cost 1,462,500  1,462,500 
Accrued interest receivable 2,082,763  2,131,744 
Premises and equipment, net 8,793,695  8,949,842 
Mortgage servicing rights 1,035,531  1,011,046 
Cash surrender value of life insurance 9,536,111  9,459,746 
Goodwill 1,213,898  1,213,898 
Repossessed Assets 178,839  148,621 
Other assets 1,197,152  1,045,876 
 Total assets$500,041,795 $486,441,687 
    
Liabilities and shareholders' equity  
Deposits  
 Noninterest-bearing$58,004,539 $49,510,375 
 Interest-bearing 384,368,074  380,084,790 
    Total deposits 442,372,613  429,595,165 
    
Accrued expenses and other liabilities 3,908,786  3,892,719 
 Total liabilities 446,281,399  433,487,884 
    
Shareholders' equity  
Common stock, $.01 par; 2,000,000 shares authorized;  
 Issued: 1,836,328; outstanding: 1,143,377 - September 30, 2021 and 1,141,190 - June 30, 2021 18,363  18,363 
Additional paid-in capital 9,780,934  9,809,754 
Retained earnings 53,025,460  51,852,194 
Accumulated other comprehensive income 2,762,749  3,058,832 
Treasury stock, at cost: 692,951 shares at September 30, 2021 and 695,138 shares at June 30, 2021 (11,827,110) (11,785,340)
 Total shareholders' equity 53,760,396  52,953,803 
    
 Total liabilities and shareholders' equity$500,041,795 $486,441,687 

FFW Corporation
Selected Financial Information

Consolidated Statement of Income

   Three Months Ended September 30
    2021  2020 
   UnauditedUnaudited
Interest and dividend income:  
 Loans, including fees$3,392,516 $3,604,316 
 Taxable securities 354,571  333,193 
 Tax exempt securities 414,258  372,271 
 Other 18,753  7,781 
  Total interest and dividend income 4,180,098  4,317,561 
     
Interest expense:  
 Deposits 366,671  611,385 
  Total interest expense 366,671  611,385 
     
Net interest income 3,813,427  3,706,176 
     
Provision for loan losses 50,000  165,000 
     
Net interest income after provision for  
 loan losses 3,763,427  3,541,176 
     
Noninterest income:  
 Net gains on sales of securities -  98,467 
 Net gains on sales of loans 282,663  1,195,486 
 Net gains (losses) on sales of REO (7,016) (6,535)
 Commission income 322,604  290,078 
 Service charges and fees 263,230  95,419 
 Earnings on life insurance 76,365  74,441 
 Other 275,308  234,343 
  Total noninterest income 1,213,154  1,981,699 
     
Noninterest expense:  
 Salaries and benefits 1,712,210  1,761,064 
 Occupancy and equipment 326,016  343,094 
 Professional 118,919  60,586 
 Marketing 112,368  113,941 
 Deposit insurance premium 33,000  33,000 
 Regulatory assessment 9,360  9,301 
 Correspondent bank charges 19,524  17,517 
 Data processing 419,272  420,582 
 Printing, postage and supplies 72,284  95,412 
 Expense on life insurance 21,432  15,849 
 Contribution expense 21,014  15,388 
 Expense on REO (3,936) 4,781 
 Other 347,038  535,313 
  Total noninterest expense 3,208,501  3,425,828 
     
Income before income taxes 1,768,080  2,097,047 
     
Income tax expense 297,536  349,517 
     
Net income$1,470,544 $1,747,530 

FFW Corporation
Selected Financial Information

Key Balances and Ratios

  Three Months Ended September 30
   2021  2020 
  UnauditedUnaudited
Per common share data:  
Earnings$1.28 $1.53 
Diluted earnings$1.28 $1.53 
Dividends paid$0.26 $0.25 
Average shares issued and outstanding 1,145,204  1,142,690 
Shares outstanding end of period 1,143,377  1,142,690 
    
Supplemental data:  
Net interest margin ** 3.23% 3.38%
Return on average assets *** 1.17% 1.48%
Return on average common equity *** 10.72% 13.71%
    
  September 30June 30
   2021  2021 
Nonperforming assets *$3,229,370 $3,241,581 
Repossessed assets$178,839 $148,621 
    
*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