FFW Corporation Announces Earnings for the Fiscal Year Ended June 30, 2020
WABASH, Ind., Aug. 18, 2020 (GLOBE NEWSWIRE) -- FFW Corporation (the “Corporation”) (OTC PINK: FFWC) (8/17/20 Close: $37.75), parent corporation of Crossroads Bank (the “Bank”), announced earnings for the fiscal year ended June 30, 2020.
For the three months ended June 30, 2020, the Corporation reported net income of $1,399,000 or $1.23 per common share compared to $1,037,000 or $0.90 per common share for the three months ended June 30, 2019. Net interest income for the three months ended June 30, 2020 was $3,637,000 compared to $3,295,000 for the three months ended June 30, 2019. The provision for loan losses was $105,000 for the three months ended June 30, 2020 and $50,000 for the three months ended June 30, 2019. Total noninterest income was $1,367,000 for the three months ended June 30, 2020 compared to $770,000 for the three months ended June 30, 2019. Noninterest expense was $3,236,000 for the three months ended June 30, 2020 and $2,844,000 for the three months ended June 30, 2019.
For the twelve months ended June 30, 2020, the Corporation reported net income of $5,011,000 or $4.40 per common share compared to $4,344,000 or $3.77 per common share for the twelve months ended June 30, 2019. Net interest income for the twelve months ended June 30, 2020 was $14,176,000 compared to $13,190,000 for the twelve months ended June 30, 2019. The Company recognized a provision for loan losses of $305,000 for the twelve months ended June 30, 2020 and $231,000 for the twelve months ended June 30, 2019. Total noninterest income was $4,197,000 for the twelve months ended June 30, 2020 compared to $3,177,000 for the twelve months ended June 30, 2019. Noninterest expense was $12,232,000 for the twelve months ended June 30, 2020 and $11,151,000 for the twelve months ended June 30, 2019.
The three and twelve months ended June 30, 2020 represented a return on average common equity of 11.78% and 10.72%, respectively, compared to 9.49% and 10.39% for the three and twelve month periods ended June 30, 2019. The three and twelve months ended June 30, 2020 represented a return on average assets of 1.24% and 1.17%, respectively, compared to 1.02% and 1.09%, for the three and twelve month periods ended June 30, 2019.
The allowance for loan losses as a percentage of gross loans receivable was 1.29% at June 30, 2020 compared to 1.35% at June 30, 2019. Nonperforming assets were $3,551,000 at June 30, 2020 compared to $3,693,000 at June 30, 2019.
President & CEO, Roger Cromer commented, “At June 30, 2020, we had closed approximately $14.4 million in Paycheck Protection Program (PPP) loans supporting 200 local businesses and approximately 2,000 employees. We believe each loan will be forgiven in accordance with the Small Business Administration’s guidelines. Our allowance as a percentage of gross loans was 1.29% at June 30, 2020. Excluding $14.4 million in PPP loans, this percentage would have been 1.35%. Management is focused on customer needs and a strong assessment of the allowance.”
As of June 30, 2020, FFWC’s equity-to-assets ratio was 10.66% compared to 10.79% at June 30, 2019. Total assets at June 30, 2020 were $461,724,000 compared to $414,517,000 at June 30, 2019. Shareholders’ equity was $49,198,000 at June 30, 2020 compared to $44,738,000 at June 30, 2019. 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 five Indiana banking centers located in Columbia City, North Manchester, Peru, South Whitley and Syracuse. The Bank provides leasing services at its banking centers and its Fishers, IN leasing and commercial loan office. 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.
FOR MORE INFORMATION Contact: Emily Boardman, Treasurer, at (260) 563-3185
FFW Corporation
Selected Financial Information
Consolidated Balance Sheet
| June 30 | June 30 | ||||||
| 2020 | 2019 | ||||||
| Unaudited | |||||||
| Assets | |||||||
| Cash and due from financial institutions | $ | 6,084,611 | $ | 4,897,871 | |||
| Interest-bearing deposits in other financial institutions | 30,077,626 | 21,857,520 | |||||
| Cash and cash equivalents | 36,162,237 | 26,755,391 | |||||
| Securities available for sale | 86,147,475 | 85,275,452 | |||||
| Loans receivable, net of allowance for loan losses of $4,098,026 at | |||||||
| June 30, 2020 and $3,857,473 at June 30, 2019 | 303,183,291 | 279,796,467 | |||||
| Loans held for sale | 10,796,333 | 1,340,765 | |||||
| Federal Home Loan Bank stock, at cost | 1,462,500 | 1,462,500 | |||||
| Accrued interest receivable | 2,281,588 | 2,240,851 | |||||
| Premises and equipment, net | 9,338,832 | 5,442,196 | |||||
| Mortgage servicing rights | 731,190 | 762,392 | |||||
| Cash surrender value of life insurance | 9,159,293 | 8,867,601 | |||||
| Goodwill | 1,213,898 | 1,213,898 | |||||
| Repossessed Assets | 145,782 | 194,730 | |||||
| Other assets | 1,101,841 | 1,165,252 | |||||
| Total assets | $ | 461,724,260 | $ | 414,517,495 | |||
| Liabilities and shareholders' equity | |||||||
| Deposits | |||||||
| Noninterest-bearing | $ | 42,014,196 | $ | 33,005,454 | |||
| Interest-bearing | 366,527,945 | 331,115,288 | |||||
| Total deposits | 408,542,141 | 364,120,742 | |||||
| Borrowings | 0 | 2,000,000 | |||||
| Accrued expenses and other liabilities | 3,984,019 | 3,659,180 | |||||
| Total liabilities | 412,526,160 | 369,779,922 | |||||
| Shareholders' equity | |||||||
| Common stock, $.01 par; 2,000,000 shares authorized; | |||||||
| Issued: 1,836,328; outstanding: 1,129,394 - June 30, 2020 and 1,149,783 - June 30, 2019 | 18,363 | 18,363 | |||||
| Additional paid-in capital | 9,826,124 | 9,777,849 | |||||
| Retained earnings | 47,660,175 | 43,691,848 | |||||
| Accumulated other comprehensive income | 3,634,798 | 2,238,257 | |||||
| Treasury stock, at cost: 706,934 shares at June 30, 2020 and 686,545 shares at June 30, 2019 | (11,941,360 | ) | (10,988,744 | ) | |||
| Total shareholders' equity | 49,198,100 | 44,737,573 | |||||
| Total liabilities and shareholders' equity | $ | 461,724,260 | $ | 414,517,495 | |||
FFW Corporation
Selected Financial Information
Consolidated Statement of Income
| Three Months Ended June 30 | Twelve Months Ended June 30 | |||||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||||
| Unaudited | Unaudited | |||||||||||||
| Interest and dividend income: | ||||||||||||||
| Loans, including fees | $ | 3,631,205 | $ | 3,475,982 | $ | 14,804,286 | $ | 13,447,651 | ||||||
| Taxable securities | 349,342 | 406,219 | 1,391,566 | 1,452,121 | ||||||||||
| Tax exempt securities | 329,816 | 331,714 | 1,268,773 | 1,244,855 | ||||||||||
| Other | 5,613 | 114,914 | 239,067 | 475,939 | ||||||||||
| Total interest and dividend income | 4,315,976 | 4,328,829 | 17,703,692 | 16,620,566 | ||||||||||
| Interest expense: | ||||||||||||||
| Deposits | 679,327 | 1,024,793 | 3,497,764 | 3,395,598 | ||||||||||
| Borrowings | - | 8,647 | 29,434 | 34,900 | ||||||||||
| Total interest expense | 679,327 | 1,033,440 | 3,527,198 | 3,430,498 | ||||||||||
| Net interest income | 3,636,649 | 3,295,389 | 14,176,494 | 13,190,068 | ||||||||||
| Provision for loan losses | 105,000 | 50,000 | 305,000 | 231,118 | ||||||||||
| Net interest income after provision for | ||||||||||||||
| loan losses | 3,531,649 | 3,245,389 | 13,871,494 | 12,958,950 | ||||||||||
| Noninterest income: | ||||||||||||||
| Net gains on sales of securities | 25,503 | - | 20,958 | 43,776 | ||||||||||
| Net gains on sales of loans | 693,285 | 65,984 | 1,298,996 | 298,129 | ||||||||||
| Net gains (losses) on fixed assets | - | (15,716 | ) | - | (15,716 | ) | ||||||||
| Net gains (losses) on sales of REO | (12,986 | ) | 3,825 | (33,854 | ) | 9,318 | ||||||||
| Commission income | 280,750 | 247,601 | 1,145,772 | 962,088 | ||||||||||
| Service charges and fees | 84,895 | 161,570 | 633,476 | 816,743 | ||||||||||
| Earnings on life insurance | 73,864 | 70,701 | 291,693 | 281,934 | ||||||||||
| Other | 221,248 | 235,596 | 839,903 | 780,758 | ||||||||||
| Total noninterest income | 1,366,559 | 769,561 | 4,196,944 | 3,177,030 | ||||||||||
| Noninterest expense: | ||||||||||||||
| Salaries and benefits | 1,792,027 | 1,522,509 | 6,631,880 | 6,134,248 | ||||||||||
| Occupancy and equipment | 288,374 | 320,367 | 1,161,072 | 1,239,158 | ||||||||||
| Professional | 52,291 | 87,294 | 470,967 | 408,750 | ||||||||||
| Marketing | 111,551 | 94,446 | 407,145 | 388,414 | ||||||||||
| Deposit insurance premium | 14,912 | 21,000 | 53,851 | 72,589 | ||||||||||
| Regulatory assessment | 8,954 | 8,099 | 37,002 | 33,147 | ||||||||||
| Correspondent bank charges | 16,853 | 22,255 | 75,931 | 81,599 | ||||||||||
| Data processing | 385,597 | 263,074 | 1,416,850 | 979,574 | ||||||||||
| Printing, postage and supplies | 79,924 | 78,318 | 294,099 | 248,362 | ||||||||||
| Expense on life insurance | 14,895 | 18,730 | 59,579 | 74,921 | ||||||||||
| Contribution expense | 59,558 | 8,352 | 94,538 | 41,652 | ||||||||||
| Expense on REO | 15,833 | 3,037 | 45,515 | 18,941 | ||||||||||
| Other | 395,547 | 396,628 | 1,483,412 | 1,430,051 | ||||||||||
| Total noninterest expense | 3,236,316 | 2,844,109 | 12,231,841 | 11,151,406 | ||||||||||
| Income before income taxes | 1,661,892 | 1,170,841 | 5,836,597 | 4,984,574 | ||||||||||
| Income tax expense | 262,844 | 133,385 | 825,368 | 640,814 | ||||||||||
| Net income | $ | 1,399,048 | $ | 1,037,456 | $ | 5,011,229 | $ | 4,343,760 | ||||||
FFW Corporation
Selected Financial Information
Key Balances and Ratios
| Three Months Ended June 30 | Twelve Months Ended June 30 | ||||||||||||
| 2020 | 2019 | 2020 | 2019 | ||||||||||
| Unaudited | Unaudited | ||||||||||||
| Per common share data: | |||||||||||||
| Earnings | $1.23 | $0.90 | $4.40 | $3.77 | |||||||||
| Diluted earnings | $1.23 | $0.90 | $4.40 | $3.77 | |||||||||
| Dividends paid | $0.23 | $0.21 | $0.92 | $0.84 | |||||||||
| Average shares issued and outstanding | 1,129,394 | 1,149,783 | 1,138,115 | 1,151,968 | |||||||||
| Shares outstanding end of period | 1,129,394 | 1,149,783 | 1,129,394 | 1,149,783 | |||||||||
| Supplemental data: | |||||||||||||
| Net interest margin ** | 3.45 | % | 3.43 | % | 3.54 | % | 3.52 | % | |||||
| Return on average assets *** | 1.24 | % | 1.02 | % | 1.17 | % | 1.09 | % | |||||
| Return on average common equity *** | 11.78 | % | 9.49 | % | 10.72 | % | 10.39 | % | |||||
| June 30 | June 30 | ||||||||||||
| 2020 | 2019 | ||||||||||||
| Nonperforming assets * | $3,550,611 | $3,692,825 | |||||||||||
| Repossessed assets | $145,782 | $194,730 | |||||||||||
| * | 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 | ||||||||||||
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