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FFW Corporation Announces Earnings For the Fiscal Year Ended June 30, 2024

WABASH, Ind., Aug. 21, 2024 (GLOBE NEWSWIRE) — FFW Corporation (the “Corporation”) (OTC PINK: FFWC) (8/20/24 Close: $34.50), parent corporation of Crossroads Bank (the “Bank”), announced earnings for the fiscal year ended June 30, 2024.

For the three months ended June 30, 2024, the Corporation reported net income of $1,118,000 or $0.99 per common share compared to $1,343,000 or $1.19 per common share for the three months ended June 30, 2023. Net interest income for the three months ended June 30, 2024 was $3,664,000 compared to $3,800,000 for the three months ended June 30, 2023. Credit loss expense was $0 for the three months ended June 30, 2024 and $75,000 for the three months ended June 30, 2023. Total noninterest income was $1,137,000 for the three months ended June 30, 2024 compared to $1,030,000 for the three months ended June 30, 2023. Noninterest expense was $3,641,000 for the three months ended June 30, 2024 and $3,349,000 for the three months ended June 30, 2023.

For the twelve months ended June 30, 2024, the Corporation reported net income of $4,089,000 or $3.63 per common share compared to $5,698,000 or $5.03 per common share for the twelve months ended June 30, 2023. Net interest income for the twelve months ended June 30, 2024 was $14,477,000 compared to $16,399,000 for the twelve months ended June 30, 2023. The Company recognized credit loss expense of $0 for the twelve months ended June 30, 2024 and $550,000 for the twelve months ended June 30, 2023. Total noninterest income was $4,144,000 for the twelve months ended June 30, 2024 compared to $4,005,000 for the twelve months ended June 30, 2023. Noninterest expense was $14,225,000 for the twelve months ended June 30, 2024 and $13,433,000 for the twelve months ended June 30, 2023.

The three and twelve months ended June 30, 2024 represented a return on average common equity of 9.41% and 8.78%, respectively, compared to 11.30% and 12.26% for the three and twelve month periods ended June 30, 2023. The three and twelve months ended June 30, 2024 represented a return on average assets of 0.80% and 0.74%, respectively, compared to 0.99% and 1.07% for the three and twelve month periods ended June 30, 2023.

The allowance for credit losses as a percentage of gross loans receivable was 1.33% at June 30, 2024 compared to 1.23% at June 30, 2023. Nonperforming assets were $4,044,000 at June 30, 2024 compared to $2,065,000 at June 30, 2023.

As of June 30, 2024, FFWC’s equity-to-assets ratio was 8.55% compared to 8.54% at June 30, 2023. Total assets at June 30, 2024 were $567,363,000 compared to $543,245,000 at June 30, 2023. Shareholders’ equity was $48,515,000 at June 30, 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
   
 June 30June 30
  2024  2023 
 Unaudited 
Assets  
Cash and due from financial institutions$5,202,224 $8,686,057 
Interest-bearing deposits in other financial institutions 11,717,782  4,668,889 
Cash and cash equivalents 16,920,006  13,354,946 
   
Securities available for sale 106,179,450  110,063,452 
Loans held for sale 559,830  80,000 
Loans receivable, net of allowance for credit losses of $5,564,436  
June 30, 2024 and $4,852,745 at June 30, 2023 411,841,368  390,544,236 
Federal Home Loan Bank stock, at cost 1,289,700  1,289,700 
Accrued interest receivable 3,016,660  2,648,368 
Premises and equipment, net 7,614,589  8,121,511 
Mortgage servicing rights 1,086,587  1,128,019 
Cash surrender value of life insurance 12,725,890  10,086,476 
Goodwill 1,213,898  1,213,898 
Repossessed Assets 1,250  109,596 
Other assets 4,913,693  4,604,551 
Total assets$ 567,362,921  $ 543,244,753  
   
Liabilities and shareholders’ equity  
Deposits  
Noninterest-bearing$47,530,618 $53,267,081 
Interest-bearing 466,891,628  437,700,301 
Total deposits 514,422,246  490,967,382 
   
Borrowings   2,100,000 
Accrued expenses and other liabilities 4,425,736  3,792,808 
Total liabilities 518,847,982  496,860,190 
   
Shareholders’ equity  
Common stock, $.01 par; 2,000,000 shares authorized;  
Issued: 1,836,328; outstanding: 1,126,243 – June 30, 2024 and 1,126,357 – June 30, 2023 18,363  18,363 
Additional paid-in capital 10,266,257  10,150,145 
Retained earnings 61,694,919  59,406,634 
Accumulated other comprehensive income (loss) (10,795,929) (10,588,876)
Treasury stock, at cost: 710,085 at June 30, 2024 and 709,971 shares at June 30, 2023 (12,668,671) (12,601,703)
Total shareholders’ equity 48,514,939  46,384,563 
   
Total liabilities and shareholders’ equity $ 567,362,921  $ 543,244,753  
       

FFW Corporation
Selected Financial Information
 
Consolidated Statement of Income
 
 Three Months Ended June 30Twelve Months Ended June 30
  2024  2023  2024  2023 
 Unaudited Unaudited 
Interest and dividend income:    
Loans, including fees$5,561,214 $4,797,377 $21,249,360 $17,404,248 
Taxable securities 538,577  483,668  2,031,617  1,864,881 
Tax exempt securities 406,253  426,926  1,656,939  1,804,825 
Other 119,404  188,303  309,304  548,886 
Total interest and dividend income 6,625,448  5,896,274  25,247,220  21,622,840 
     
Interest expense:    
Deposits 2,933,414  2,095,131  10,613,939  5,216,815 
Borrowings 27,627  1,059  155,984  7,096 
Total interest expense 2,961,041  2,096,190  10,769,923  5,223,911 
     
Net interest income  3,664,407    3,800,084    14,477,297    16,398,929  
     
Credit loss expense   75,000    550,000 
     
Net interest income after credit loss expense  3,664,407    3,725,084    14,477,297    15,848,929  
     
Noninterest income:    
Net gains (losses) on sales of securities       (3,633)
Net gains on sales of loans 113,780  15,397  185,535  166,999 
Net gains (losses) on fixed assets       (20,533)
Net gains (losses) on sales of REO   18,039  (37,006) 21,105 
Commission income 395,409  374,866  1,429,640  1,298,105 
Service charges and fees 219,733  248,318  998,995  1,052,670 
Earnings on life insurance 106,082  80,596  389,414  318,684 
Other 302,374  292,868  1,177,332  1,171,991 
Total noninterest income 1,137,378  1,030,084  4,143,910  4,005,388 
     
Noninterest expense:    
Salaries and benefits 1,990,109  1,789,700  7,716,276  7,341,502 
Occupancy and equipment 320,824  314,274  1,270,996  1,247,099 
Professional 122,245  146,533  482,039  473,020 
Marketing 96,753  83,207  378,547  364,422 
Deposit insurance premium 73,000  82,000  280,666  201,968 
Regulatory assessment 10,344  8,090  41,379  32,780 
Correspondent bank charges 23,388  21,641  93,273  87,714 
Data processing 482,683  419,607  1,866,798  1,655,966 
Printing, postage and supplies 65,701  57,018  285,133  278,285 
Expense on life insurance 41,149  21,785  129,934  87,767 
Contribution expense 9,501  8,876  50,382  49,000 
Expense on REO (139) 2,837  5,683  9,377 
Other 405,714  393,378  1,623,675  1,603,767 
Total noninterest expense 3,641,272  3,348,946  14,224,781  13,432,667 
     
Income before income taxes  1,160,513    1,406,222    4,396,426    6,421,650  
     
Income tax expense 42,948  63,249  306,949  723,754 
     
Net income $ 1,117,565  $ 1,342,973  $ 4,089,477  $ 5,697,896  
             

FFW Corporation
Selected Financial Information
 
Key Balances and Ratios
 
 Three Months Ended June 30Twelve Months Ended June 30
  2024  2023  2024  2023 
 Unaudited Unaudited 
Per common share data:    
Earnings$0.99 $1.19 $3.63 $5.03 
Diluted earnings$0.99 $1.19 $3.63 $5.03 
Dividends paid$0.29 $1.53 $1.16 $2.37 
Average shares issued and outstanding 1,126,520  1,126,522  1,126,879  1,131,761 
Shares outstanding end of period 1,126,243  1,126,357  1,126,243  1,126,357 
     
Supplemental data:    
Net interest margin ** 2.66% 2.85% 2.69% 3.15%
Return on average assets *** 0.80% 0.99% 0.74% 1.07%
Return on average common equity *** 9.41% 11.30% 8.78% 12.26%
     
 June 30June 30  
  2024  2023   
Nonperforming assets *$4,044,082 $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

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

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