GlobeNewswire Inc | Jan 26, 2022 10:32AM EST

January 26, 2022

WABASH, Ind., Jan. 26, 2022 (GLOBE NEWSWIRE) -- FFW Corporation (the Corporation) (OTC PINK: FFWC) (1/25/2022 Close: $46.95), parent corporation of Crossroads Bank (the Bank), announced earnings for the quarter and year to date ended December 31, 2021.

For the three months ended December 31, 2021, the Corporation reported net income of $1,358,000 or $1.19 per common share compared to $1,774,000 or $1.55 per common share for the three months ended December 31, 2020. Net interest income for the three months ended December 31, 2021 was $3,780,000 compared to $3,727,000 for the three months ended December 31, 2020. The provision for loan losses was $80,000 for the three months ended December 31, 2021 and $165,000 for the three months ended December 31, 2020. Total noninterest income was $1,032,000 for the three months ended December 31, 2021 compared to $1,814,000 for the three months ended December 31, 2020. Noninterest expense was $3,219,000 for the three months ended December 31, 2021 and $3,260,000 for the three months ended December 31, 2020.

For the six months ended December 31, 2021, the Corporation reported net income of $2,828,000 or $2.47 per common share compared to $3,521,000 or $3.08 per common share for the six months ended December 31, 2020. Net interest income for the six months ended December 31, 2021 was $7,593,000 compared to $7,434,000 for the six months ended December 31, 2020. The Company recognized a provision for loan losses of $130,000 for the six months ended December 31, 2021 and $330,000 for the six months ended December 31, 2020. Total noninterest income was $2,245,000 for the six months ended December 31, 2021 compared to $3,795,000 for the six months ended December 31, 2020. Noninterest expense was $6,427,000 for the six months ended December 31, 2021 and $6,686,000 for the six months ended December 31, 2020.

The three and six months ended December 31, 2021 represented a return on average common equity of 9.92% and 10.32%, respectively, compared to 13.66% and 13.69% for the three and six month periods ended December 31, 2020. The three and six months ended December 31, 2021 represented a return on average assets of 1.03% and 1.10%, respectively, compared to 1.46% and 1.47%, for the three and six month periods ended December 31, 2020.

The allowance for loan losses as a percentage of gross loans receivable was 1.35% at December 31, 2021 compared to 1.43% at June 30, 2021. Nonperforming assets were $2,921,000 at December 31, 2021 compared to $3,242,000 at June 30, 2021.

As of December 31, 2021, FFWCs equity-to-assets ratio was 10.42% compared to 10.89% at June 30, 2021. Total assets at December 31, 2021 were $521,625,000 compared to $486,442,000 at June 30, 2021. Shareholders equity was $54,332,000 at December 31, 2021 compared to $52,954,000 at June 30, 2020. 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 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 Corporations stock is traded on the OTC Markets under the symbol FFWC. Our website address is www.crossroadsbanking.com. Crossroads Bank, Member FDIC.

FFW CorporationSelected Financial Information

Consolidated Balance Sheet

December 31 June 30 2021 2021 Unaudited Assets Cash and due from $ $ financial institutions 6,153,813 4,779,188Interest-bearingdeposits in other 64,506,271 51,646,720 financial institutionsCash and cash 70,660,084 56,425,908 equivalents Securities available 114,818,062 116,335,455 for saleLoans receivable, netof allowance for loan losses of $4,252,370 atDecember 31, 2021 and$4,168,689 at June 30, 310,761,100 285,643,064 2021Loans held for sale 54,501 2,613,987 Federal Home Loan Bank 1,462,500 1,462,500 stock, at costAccrued interest 2,087,995 2,131,744 receivablePremises and equipment, 8,717,373 8,949,842 netMortgage servicing 1,033,145 1,011,046 rightsCash surrender value of 9,613,392 9,459,746 life insuranceGoodwill 1,213,898 1,213,898 Repossessed Assets 58,953 148,621 Other assets 1,143,749 1,045,876 Total assets $ $ 521,624,752 486,441,687 Liabilities and shareholders' equityDeposits Noninterest-bearing $ $ 50,431,524 49,510,375Interest-bearing 412,858,678 380,084,790 Total deposits 463,290,202 429,595,165 Accrued expenses and 4,002,546 3,892,719 other liabilitiesTotal liabilities 467,292,748 433,487,884 Shareholders' equity Common stock, $.01 par;2,000,000 shares authorized;Issued: 1,836,328;outstanding: 1,143,377- December 31, 2021 and 18,363 18,363 1,141,190 - June 30,2021Additional paid-in 9,834,406 9,809,754 capitalRetained earnings 54,085,891 51,852,194 Accumulated other 2,220,454 3,058,832 comprehensive incomeTreasury stock, atcost: 692,951 shares at December 31, 2021 and695,138shares at June 30, 2021 (11,827,110 ) (11,785,340 )Total shareholders' 54,332,004 52,953,803 equity Total liabilities and $ $ shareholders' equity 521,624,752 486,441,687

FFW CorporationSelected Financial Information

Consolidated Statement of Income

Three Months Ended December 31 Six Months Ended December 31 2021 2020 2021 2020 Unaudited Unaudited Unaudited Unaudited Interest anddividend income:Loans, including $ 3,362,773 $ 3,559,989 $ 6,755,289 $ 7,164,305 feesTaxable 331,914 321,319 686,485 654,512 securitiesTax exempt 407,372 417,657 821,630 789,928 securitiesOther 25,096 9,728 43,849 17,509 Totalinterest and 4,127,155 4,308,693 8,307,253 8,626,254 dividendincome Interest expense:Deposits 347,651 581,261 714,322 1,192,646 Borrowings 1 - 1 - Totalinterest 347,652 581,261 714,323 1,192,646 expense Net interest income 3,779,503 3,727,432 7,592,930 7,433,608 Provision for 80,000 165,000 130,000 330,000 loan losses Net interestincome after provision for 3,699,503 3,562,432 7,462,930 7,103,608loan losses Noninterest income:Net gains onsales of - - - 98,467 securitiesNet gains onsales of 72,163 1,013,356 354,826 2,208,842 loansNet gains(losses) on 10,250 9,204 10,250 9,204 fixed assetsNet gains(losses) on 13,770 - 6,754 (6,535 )sales of REOCommission 313,632 281,325 636,236 571,403 incomeServicecharges and 246,442 199,419 509,672 294,838 feesEarnings onlife 77,282 75,379 153,647 149,820 insuranceOther 298,788 235,103 574,096 469,446 Totalnoninterest 1,032,327 1,813,786 2,245,481 3,795,485 income Noninterest expense:Salaries and 1,778,904 1,714,403 3,491,114 3,475,467 benefitsOccupancy and 320,454 321,365 646,470 664,459 equipmentProfessional 106,231 92,608 225,150 153,194 Marketing 105,686 108,652 218,054 222,593 Depositinsurance 33,000 33,000 66,000 66,000 premiumRegulatory 9,360 9,301 18,720 18,602 assessmentCorrespondent 19,186 17,146 38,710 34,663 bank chargesData 413,164 400,688 832,436 821,270 processingPrinting,postage and 75,994 72,084 148,278 167,496 suppliesExpense onlife 21,332 15,849 42,764 31,698 insuranceContribution 10,513 11,887 31,527 27,275 expenseExpense on 4,961 3,258 1,025 8,039 REOOther 319,979 459,435 667,017 994,748 Totalnoninterest 3,218,764 3,259,676 6,427,265 6,685,504 expense Income before income taxes 1,513,066 2,116,542 3,281,146 4,213,589 Income tax 155,358 342,970 452,894 692,487 expense Net income $ $ $ $ 1,357,708 1,773,572 2,828,252 3,521,102

FFW CorporationSelected Financial Information

Key Balances and Ratios

Three Months Ended December Six Months Ended December 31 31 2021 2020 2021 2020 Unaudited Unaudited Unaudited UnauditedPer common share data: Earnings $1.19 $1.55 $2.47 $3.08Diluted earnings $1.19 $1.55 $2.47 $3.08Dividends paid $0.26 $0.25 $0.52 $0.50Average shares issued 1,143,377 1,142,690 1,144,291 1,142,690and outstandingShares outstanding end 1,143,377 1,142,690 1,143,377 1,142,690of period Supplemental data: Net interest margin ** 3.07% 3.30% 3.15% 3.34%Return on average 1.03% 1.46% 1.10% 1.47%assets ***Return on average 9.92% 13.66% 10.32% 13.69%common equity *** December 31 June 30 2021 2021 Nonperforming assets * $2,920,997 $3,241,581 Repossessed assets $58,953 $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