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FFW CORP
Symbol	FFWC
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FFW Corporation Announces Earnings for the Fiscal Year Ended June 30, 2022

2022-08-12 16:45 ET - News Release

WABASH, Ind., Aug. 12, 2022 (GLOBE NEWSWIRE) -- FFW Corporation (the "Corporation") (OTC PINK: FFWC) (8/11/2022 Close: $47.00), parent corporation of Crossroads Bank (the "Bank"), announced earnings for the fiscal year ended June 30, 2022.

For the three months ended June 30, 2022, the Corporation reported net income of $1,523,000 or $1.33 per common share compared to $1,379,000 or $1.21 per common share for the three months ended June 30, 2021. Net interest income for the three months ended June 30, 2022 was $4,071,000 compared to $3,608,000 for the three months ended June 30, 2021. The provision for loan losses was $200,000 for the three months ended June 30, 2022 and ($150,000) for the three months ended June 30, 2021. Total noninterest income was $1,075,000 for the three months ended June 30, 2022 compared to $1,221,000 for the three months ended June 30, 2021. Noninterest expense was $3,215,000 for the three months ended June 30, 2022 and $3,391,000 for the three months ended June 30, 2021.

For the twelve months ended June 30, 2022, the Corporation reported net income of $5,721,000 or $5.00 per common share compared to $6,476,000 or $5.67 per common share for the twelve months ended June 30, 2021. Net interest income for the twelve months ended June 30, 2022 was $15,409,000 compared to $14,697,000 for the twelve months ended June 30, 2021. The Company recognized a provision for loan losses of $405,000 for the twelve months ended June 30, 2022 and $345,000 for the twelve months ended June 30, 2021. Total noninterest income was $4,441,000 for the twelve months ended June 30, 2022 compared to $6,590,000 for the twelve months ended June 30, 2021. Noninterest expense was $12,933,000 for the twelve months ended June 30, 2022 and $13,303,000 for the twelve months ended June 30, 2021.

The three and twelve months ended June 30, 2022 represented a return on average common equity of 12.63% and 10.85%, respectively, compared to 10.37% and 12.42% for the three and twelve month periods ended June 30, 2021. The three and twelve months ended June 30, 2022 represented a return on average assets of 1.16% and 1.10%, respectively, compared to 1.12% and 1.36% for the three and twelve month periods ended June 30, 2021.

The allowance for loan losses as a percentage of gross loans receivable was 1.28% at June 30, 2022 compared to 1.43% at June 30, 2021. Nonperforming assets were $2,345,000 at June 30, 2022 compared to $3,242,000 at June 30, 2021.

As of June 30, 2022, FFWC's equity-to-assets ratio was 8.72% compared to 10.89% at June 30, 2021. Total assets at June 30, 2022 were $534,918,000 compared to $486,442,000 at June 30, 2021. Shareholders' equity was $46,648,000 at June 30, 2022 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.

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
		June 30			June 30
			2022			2021
		Unaudited
Assets
Cash and due from financial institutions		$	7,122,187		$	4,779,188
Interest-bearing deposits in other financial institutions			48,456,109			51,646,720
	Cash and cash equivalents		55,578,296			56,425,908

Securities available for sale			115,717,308			116,335,455
Loans held for sale			248,000			2,613,987
Loans receivable, net of allowance for loan losses of $4,342,121 at
June 30, 2022 and $4,168,689 at June 30, 2021			335,672,317			285,643,064
Federal Home Loan Bank stock, at cost			1,289,700			1,462,500
Accrued interest receivable			2,105,470			2,131,744
Premises and equipment, net			8,481,385			8,949,842
Mortgage servicing rights			1,138,165			1,011,046
Cash surrender value of life insurance			9,767,792			9,459,746
Goodwill			1,213,898			1,213,898
Repossessed Assets			75,025			148,621
Other assets			3,630,737			1,045,876
	Total assets	$	534,918,093		$	486,441,687

Liabilities and shareholders' equity
Deposits
	Noninterest-bearing	$	55,960,708		$	49,510,375
	Interest-bearing		428,550,708			380,084,790
	Total deposits		484,511,416			429,595,165

Accrued expenses and other liabilities			3,758,195			3,892,719
	Total liabilities		488,269,611			433,487,884

Shareholders' equity
Common stock, $.01 par; 2,000,000 shares authorized;
	Issued: 1,836,328; outstanding: 1,140,305 - June 30, 2022 and 1,141,190 - June 30, 2021		18,363			18,363
Additional paid-in capital			9,940,774			9,809,754
Retained earnings			56,384,625			51,852,194
Accumulated other comprehensive income (loss)			(7,726,089	)		3,058,832
Treasury stock, at cost: 696,023 shares at June 30, 2022 and 695,138
shares at June 30, 2021			(11,969,191	)		(11,785,340	)
	Total shareholders' equity		46,648,482			52,953,803

	Total liabilities and shareholders' equity	$	534,918,093		$	486,441,687

FFW Corporation Selected Financial Information
Consolidated Statement of Income
			Three Months Ended June 30						Twelve Months Ended June 30
				2022			2021			2022			2021
			Unaudited						Unaudited
Interest and dividend income:
	Loans, including fees		$	3,562,772		$	3,257,093		$	13,660,543		$	13,769,397
	Taxable securities			341,548			313,689			1,317,675			1,308,266
	Tax exempt securities			423,846			418,267			1,652,828			1,627,426
	Other			128,452			14,860			197,815			38,650
		Total interest and dividend income		4,456,618			4,003,909			16,828,861			16,743,739

Interest expense:
	Deposits			385,508			395,295			1,419,669			2,046,577
	Borrowings			200			200			201			200
		Total interest expense		385,708			395,495			1,419,870			2,046,777

Net interest income				4,070,910			3,608,414			15,408,991			14,696,962

Provision for loan losses				200,000			(150,000	)		405,000			345,000

Net interest income after provision for
	loan losses			3,870,910			3,758,414			15,003,991			14,351,962

Noninterest income:
	Net gains on sales of securities			-			-			-			98,467
	Net gains on sales of loans			75,450			390,165			523,219			3,261,880
	Net gains (losses) on fixed assets			-			-			34,283			9,204
	Net gains (losses) on sales of REO			(17,909	)		-			(6,623	)		(23,498	)
	Commission income			337,665			309,389			1,279,202			1,224,845
	Service charges and fees			275,763			188,237			1,135,426			721,677
	Earnings on life insurance			77,651			75,757			308,047			300,452
	Other			326,669			257,103			1,167,426			996,765
		Total noninterest income		1,075,289			1,220,651			4,440,980			6,589,792

Noninterest expense:
	Salaries and benefits			1,815,040			1,875,637			7,100,728			6,885,238
	Occupancy and equipment			313,309			325,235			1,298,461			1,339,852
	Professional			111,887			143,066			448,694			850,073
	Marketing			90,882			104,293			394,013			431,982
	Deposit insurance premium			38,304			33,000			140,752			132,000
	Regulatory assessment			9,074			9,588			37,379			37,705
	Correspondent bank charges			22,200			18,881			80,724			71,511
	Data processing			337,292			391,172			1,584,725			1,613,051
	Printing, postage and supplies			73,382			62,193			293,419			292,047
	Expense on life insurance			21,132			20,518			85,128			72,827
	Contribution expense			11,676			11,138			65,583			70,753
	Expense on REO			5,412			5,626			7,505			18,683
	Other			365,584			391,069			1,396,052			1,487,411
		Total noninterest expense		3,215,174			3,391,416			12,933,163			13,303,133

Income before income taxes				1,731,025			1,587,649			6,511,808			7,638,621

Income tax expense				207,572			208,465			791,077			1,163,097

Net income			$	1,523,453		$	1,379,184		$	5,720,731		$	6,475,524

FFW Corporation Selected Financial Information
Key Balances and Ratios
		Three Months Ended June 30						Twelve Months Ended June 30
			2022			2021			2022			2021
		Unaudited						Unaudited
Per common share data:
Earnings		$	1.33		$	1.21		$	5.00		$	5.67
Diluted earnings		$	1.33		$	1.21		$	5.00		$	5.67
Dividends paid		$	0.26		$	1.25		$	1.04		$	2.00
Average shares issued and outstanding			1,141,763			1,141,717			1,143,428			1,142,448
Shares outstanding end of period			1,140,305			1,141,190			1,140,305			1,141,190

Supplemental data:
Net interest margin **			3.15	%		3.11	%		3.12	%		3.29	%
Return on average assets ***			1.16	%		1.12	%		1.10	%		1.36	%
Return on average common equity ***			12.63	%		10.37	%		10.85	%		12.42	%

		June 30			June 30
			2022			2021
Nonperforming assets *		$	2,344,693		$	3,241,581
Repossessed assets		$	75,025		$	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