FFW Corporation Announces Earnings for the Fiscal Year Ended June 30, 2025
MWN-AI** Summary
FFW Corporation (OTC PINK: FFWC), parent company of Crossroads Bank, reported favorable earnings results for the fiscal year ending June 30, 2025. In Q4 of 2025, the Corporation achieved a net income of $1,461,000, or $1.35 per common share, marking an increase from $1,118,000, or $0.99 per share, in the same quarter of 2024. For the twelve-month period, net income rose to $5,542,000, translating to $5.01 per share, a significant improvement over the previous year’s income of $4,089,000, or $3.63 per share.
The increase in earnings was supported by a rise in net interest income, which reached $4,385,000 in Q4 2025, compared to $3,664,000 the prior year. Yearly net interest income also climbed to $16,279,000, up from $14,477,000. However, the Corporation recognized credit loss expenses of $75,000 in Q4 and $200,000 for the fiscal year, signaling a slight uptick in credit risk.
FFW Corporation's total noninterest income saw an increase, hitting $1,221,000 in Q4 and $5,070,000 for the year. While noninterest expenses also grew, from $3,641,000 in Q4 2024 to $3,906,000 in Q4 2025, the Corporation remains well capitalized, boasting an equity-to-assets ratio of 8.76%, up from 8.55% a year earlier.
FFW actively repurchased its shares, acquiring 3,303 shares at an average price of $39.70 during the last quarter and totaling 56,481 shares year-to-date. This reflects a strategic move to enhance shareholder value. As FFW Corporation continues to navigate the evolving financial landscape, it shows resilience through its solid financial performance.
MWN-AI** Analysis
FFW Corporation's fiscal year-end results for June 30, 2025, reveal a notable improvement in both earnings and profitability metrics, aligning with a robust performance in net interest income and a modest increase in noninterest expenses. The Corporation achieved a net income of $5.54 million, equating to $5.01 per share, up from $4.09 million and $3.63 per share in the previous fiscal year. This represents a strong year-on-year growth of approximately 35% in earnings per share, underpinned by a rise in net interest income, which climbed to $16.28 million from $14.48 million.
However, investors should also consider that total noninterest expenses rose to $15.01 million from $14.22 million, indicating a need for careful cost management as the Corporation scales its operations. On the positive side, the return on average assets (ROA) and return on average equity (ROE) showed significant improvement, demonstrating better utilization of assets and equity to generate profits.
A slight uptick in credit loss provisions, amounting to $200,000 over the year as opposed to none in the prior year, indicates cautious optimism about loan quality amid an increasingly uncertain economic climate. Nonperforming assets also doubled, which merits close observation, though it remains manageable compared to overall loans.
FFW Corporation's equity-to-assets ratio showed healthy capital levels, and the continuance of its share repurchase program may indicate confidence from management in the intrinsic value of the stock. Priced at $41.00 as of the last close, shareholders should weigh the potential for growth against increasing operating costs and asset quality concerns. A hold or moderate increase in stake could be advisable, contingent upon stabilization in nonperforming assets and sustained profitability growth patterns.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
WABASH, Ind., Aug. 25, 2025 (GLOBE NEWSWIRE) -- FFW Corporation (the “Corporation”) (OTC PINK: FFWC ) (8/22/25 Close: $41.00) , parent corporation of Crossroads Bank (the “Bank”), announced earnings for the fiscal year ended June 30, 2025.
For the three months ended June 30, 2025, the Corporation reported net income of $1,461,000 or $1.35 per common share compared to $1,118,000 or $0.99 per common share for the three months ended June 30, 2024. Net interest income for the three months ended June 30, 2025 was $4,385,000 compared to $3,664,000 for the three months ended June 30, 2024. Credit loss expense was $75,000 for the three months ended June 30, 2025 and $0 for the three months ended June 30, 2024. Total noninterest income was $1,221,000 for the three months ended June 30, 2025 compared to $1,137,000 for the three months ended June 30, 2024. Noninterest expense was $3,906,000 for the three months ended June 30, 2025 and $3,641,000 for the three months ended June 30, 2024.
For the twelve months ended June 30, 2025, the Corporation reported net income of $5,542,000 or $5.01 per common share compared to $4,089,000 or $3.63 per common share for the twelve months ended June 30, 2024. Net interest income for the twelve months ended June 30, 2025 was $16,279,000 compared to $14,477,000 for the twelve months ended June 30, 2024. The Company recognized credit loss expense of $200,000 for the twelve months ended June 30, 2025 and $0 for the twelve months ended June 30, 2024. Total noninterest income was $5,070,000 for the twelve months ended June 30, 2025 compared to $4,144,000 for the twelve months ended June 30, 2024. Noninterest expense was $15,006,000 for the twelve months ended June 30, 2025 and $14,225,000 for the twelve months ended June 30, 2024.
The three and twelve months ended June 30, 2025 represented a return on average common equity of 11.77% and 11.10%, respectively, compared to 9.41% and 8.78% for the three and twelve month periods ended June 30, 2024. The three and twelve months ended June 30, 2025 represented a return on average assets of 1.03% and 0.97%, respectively, compared to 0.80% and 0.74% for the three and twelve month periods ended June 30, 2024.
The allowance for credit losses as a percentage of gross loans receivable was 1.35% at June 30, 2025 compared to 1.33% at June 30, 2024. Nonperforming assets were $8,147,000 at June 30, 2025 compared to $4,044,000 at June 30, 2024.
As of June 30, 2025, FFWC’s equity-to-assets ratio was 8.76% compared to 8.55% at June 30, 2024. Total assets at June 30, 2025 were $570,108,000 compared to $567,363,000 at June 30, 2024. Shareholders’ equity was $49,944,000 at June 30, 2025 compared to $48,515,000 at June 30, 2024. Crossroads Bank exceeds all applicable regulatory requirements to be considered “well capitalized.”
The Corporation has an active share repurchase program. During the quarter ended June 30, 2025, the Corporation repurchased 3,303 shares at an average price of $39.70. Year to date the Corporation repurchased 56,481 shares at an average price of $39.42. For more information regarding the share repurchase program, please contact Roger Cromer, President, at (260) 563-3185. The Corporation may suspend or discontinue repurchases at any time.
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 | ||||||
| 2025 | 2024 | ||||||
| Unaudited | |||||||
| Assets | |||||||
| Cash and due from financial institutions | $ | 7,166,023 | $ | 5,202,224 | |||
| Interest-bearing deposits in other financial institutions | 3,649,597 | 11,717,782 | |||||
| Cash and cash equivalents | 10,815,620 | 16,920,006 | |||||
| Securities available for sale | 103,067,093 | 106,179,450 | |||||
| Loans held for sale | 314,800 | 559,830 | |||||
| Loans receivable, net of allowance for credit losses of $5,703,128 | |||||||
| at June 30, 2024 and $5,564,436 at June 30, 2024 | 422,829,649 | 411,841,368 | |||||
| Federal Home Loan Bank stock, at cost | 1,739,500 | 1,289,700 | |||||
| Accrued interest receivable | 3,055,402 | 3,016,660 | |||||
| Premises and equipment, net | 7,602,679 | 7,614,589 | |||||
| Mortgage servicing rights | 1,072,056 | 1,086,587 | |||||
| Cash surrender value of life insurance | 13,165,670 | 12,725,890 | |||||
| Goodwill | 1,213,898 | 1,213,898 | |||||
| Repossessed Assets | 38,560 | 1,250 | |||||
| Other assets | 5,192,615 | 4,913,693 | |||||
| Total assets | $ | 570,107,542 | $ | 567,362,921 | |||
| Liabilities and shareholders' equity | |||||||
| Deposits | |||||||
| Noninterest-bearing | $ | 52,521,124 | $ | 47,530,618 | |||
| Interest-bearing | 453,607,241 | 466,891,628 | |||||
| Total deposits | 506,128,365 | 514,422,246 | |||||
| Borrowings | 10,000,000 | - | |||||
| Accrued expenses and other liabilities | 4,035,448 | 4,425,736 | |||||
| Total liabilities | 520,163,813 | 518,847,982 | |||||
| Shareholders' equity | |||||||
| Common stock, $.01 par; 2,000,000 shares authorized; | |||||||
| Issued: 1,836,328; outstanding: 1,082,978 at June 30, 2025 and 1,126,243 at June 30, 2024 | 18,363 | 18,363 | |||||
| Additional paid-in capital | 10,233,608 | 10,266,257 | |||||
| Retained earnings | 65,911,649 | 61,694,919 | |||||
| Accumulated other comprehensive income (loss) | (11,560,272 | ) | (10,795,929 | ) | |||
| Treasury stock, at cost: 753,350 at June 30, 2025 and | |||||||
| 710,085 at June 30, 2024 | (14,659,619 | ) | (12,668,671 | ) | |||
| Total shareholders' equity | 49,943,729 | 48,514,939 | |||||
| Total liabilities and shareholders' equity | $ | 570,107,542 | $ | 567,362,921 | |||
| FFW Corporation | ||||||||||||||
| Selected Financial Information | ||||||||||||||
| Consolidated Statement of Income | ||||||||||||||
| Three Months Ended June 30 | Twelve Months Ended June 30 | |||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||
| Unaudited | Unaudited | Unaudited | Unaudited | |||||||||||
| Interest and dividend income: | ||||||||||||||
| Loans, including fees | $ | 5,985,759 | $ | 5,561,214 | $ | 23,183,812 | $ | 21,249,360 | ||||||
| Taxable securities | 563,907 | 538,577 | 2,187,692 | 2,031,617 | ||||||||||
| Tax exempt securities | 402,708 | 406,253 | 1,625,823 | 1,656,939 | ||||||||||
| Other | 78,596 | 119,404 | 564,219 | 309,304 | ||||||||||
| Total interest and dividend income | 7,030,970 | 6,625,448 | 27,561,546 | 25,247,220 | ||||||||||
| Interest expense: | ||||||||||||||
| Deposits | 2,469,399 | 2,933,414 | 11,078,011 | 10,613,939 | ||||||||||
| Borrowings | 176,469 | 27,627 | 204,282 | 155,984 | ||||||||||
| Total interest expense | 2,645,869 | 2,961,041 | 11,282,293 | 10,769,923 | ||||||||||
| Net interest income | 4,385,101 | 3,664,407 | 16,279,253 | 14,477,297 | ||||||||||
| Provision for credit losses | 75,000 | - | 200,000 | - | ||||||||||
| Net interest income after provision for | 4,310,101 | 3,664,407 | 16,079,253 | 14,477,297 | ||||||||||
| credit losses | ||||||||||||||
| Noninterest income: | ||||||||||||||
| Net gains on sales of loans | 181,575 | 113,780 | 480,176 | 185,535 | ||||||||||
| Net gains (losses) on fixed assets | (4,080 | ) | - | 31,157 | - | |||||||||
| Net gains (losses) on sales of REO | - | - | (684 | ) | (37,006 | ) | ||||||||
| Commission income | 463,212 | 395,409 | 1,993,376 | 1,429,640 | ||||||||||
| Service charges and fees | 157,836 | 219,733 | 868,973 | 998,995 | ||||||||||
| Earnings on life insurance | 111,555 | 106,082 | 439,780 | 389,414 | ||||||||||
| Other | 311,304 | 302,374 | 1,257,347 | 1,177,332 | ||||||||||
| Total noninterest income | 1,221,401 | 1,137,378 | 5,070,125 | 4,143,910 | ||||||||||
| Noninterest expense: | ||||||||||||||
| Salaries and benefits | 2,035,089 | 1,990,109 | 8,098,744 | 7,716,276 | ||||||||||
| Occupancy and equipment | 333,493 | 320,824 | 1,300,038 | 1,270,996 | ||||||||||
| Professional | 164,980 | 122,245 | 628,721 | 482,039 | ||||||||||
| Marketing | 102,924 | 96,753 | 381,332 | 378,547 | ||||||||||
| Deposit insurance premium | 102,000 | 73,000 | 348,684 | 280,666 | ||||||||||
| Regulatory assessment | 11,569 | 10,344 | 42,772 | 41,379 | ||||||||||
| Correspondent bank charges | 26,413 | 23,388 | 107,687 | 93,273 | ||||||||||
| Data processing | 584,862 | 482,683 | 2,141,131 | 1,866,798 | ||||||||||
| Printing, postage and supplies | 74,354 | 65,701 | 300,465 | 285,133 | ||||||||||
| Expense on life insurance | 27,665 | 41,149 | 7,776 | 129,934 | ||||||||||
| Contribution expense | 7,500 | 9,501 | 44,888 | 50,382 | ||||||||||
| Expense on REO | - | (139 | ) | - | 5,683 | |||||||||
| Other | 434,848 | 405,714 | 1,603,446 | 1,623,675 | ||||||||||
| Total noninterest expense | 3,905,699 | 3,641,272 | 15,005,684 | 14,224,781 | ||||||||||
| Income before income taxes | 1,625,803 | 1,160,513 | 6,143,694 | 4,396,426 | ||||||||||
| Income tax expense | 165,144 | 42,948 | 601,954 | 306,949 | ||||||||||
| Net income | $ | 1,460,659 | $ | 1,117,565 | $ | 5,541,740 | $ | 4,089,477 | ||||||
| FFW Corporation | ||||||||
| Selected Financial Information | ||||||||
| Key Balances and Ratios | ||||||||
| Three Months Ended June 30 | Twelve Months Ended June 30 | |||||||
| 2025 | 2024 | 2025 | 2024 | |||||
| Unaudited | Unaudited | Unaudited | Unaudited | |||||
| Per common share data: | ||||||||
| Earnings | $1.35 | $0.99 | $5.01 | $3.63 | ||||
| Diluted earnings | $1.35 | $0.99 | $5.01 | $3.63 | ||||
| Dividends paid | $0.30 | $0.29 | $1.20 | $1.16 | ||||
| Average shares issued and outstanding | 1,083,793 | 1,126,520 | 1,106,967 | 1,126,879 | ||||
| Shares outstanding end of period | 1,082,978 | 1,126,243 | 1,082,978 | 1,126,243 | ||||
| Supplemental data: | ||||||||
| Net interest margin ** | 3.16 | % | 2.66 | % | 2.92 | % | 2.69 | % |
| Return on average assets *** | 1.03 | % | 0.80 | % | 0.97 | % | 0.74 | % |
| Return on average common equity *** | 11.77 | % | 9.41 | % | 11.10 | % | 8.78 | % |
| June 30 | June 30 | |||||||
| 2025 | 2024 | |||||||
| Nonperforming assets * | $8,147,342 | $4,044,082 | ||||||
| Repossessed assets | $38,560 | $1,250 | ||||||
| * 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: Stacy Wiley, Treasurer, at (260) 563-3185
FAQ**
What key strategies is FFW Corp. (FFWC) implementing to maintain its growth trajectory and manage the increase in nonperforming assets, which rose from $4.04 million to $8.million between 2024 and 2025?
Given the net interest margin increased to 3.16% in 2025, how is FFW Corp. (FFWC) planning to leverage this improvement to enhance overall profitability, especially in light of rising credit loss expenses?
With a significant year-on-year increase in net income reported, how does FFW Corp. (FFWC) intend to utilize its earnings to create value for shareholders, particularly regarding its share repurchase program?
How does FFW Corp. (FFWC) plan to balance its active share repurchase program with the need for investment in growth and operational expansions, given that equity-to-assets ratio improved but total assets increased modestly?
**MWN-AI FAQ is based on asking OpenAI questions about FFW Corp. (OTC: FFWC).
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