UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): August 6, 2021
FFBW, INC.
(Exact Name of Registrant as Specified in Charter)
Maryland | | 001-39182 | | 37-1962248 | |
(State or Other Jurisdiction) | | (Commission File No.) | | (I.R.S. Employer | |
of Incorporation) | | Identification No.) | |||
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1360 South Moorland Road, Brookfield, Wisconsin | | 53005 | |||
(Address of Principal Executive Offices) | | (Zip Code) | |||
Registrant's telephone number, including area code:(262) 542-4448
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17
CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17
CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each class | | Trading Symbol(s) | | Name of each exchange on which registered |
Common Stock, par value $0.01 per share | | FFBW | | The NASDAQ Stock Market, LLC |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). Emerging growth company ⌧
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02.Results of Operations and Financial Condition
On August 5, 2021, FFBW, Inc. issued a press release announcing results for the fiscal second quarter ended June 30, 2021. A copy of the Press Release is attached as Exhibit 99.1 to this report. The attached Exhibit 99.1 is furnished pursuant to Item 2.02 of Form 8-K.
The information in this Form 8-K and the Exhibit attached hereto shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall they be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, except as shall be expressly set forth by specific in such filing.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits
ExhibitDescription
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.
| FFBW, INC. |
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DATE: August 6, 2021 | By:/s/ Steven L. Wierschem |
| Steven L. Wierschem |
| Chief Financial Officer |
Exhibit 99.1
FFBW, Inc. Announces Financial Results for the Three Months Ended June 30, 2021
Brookfield, WI, August 6, 2021 – FFBW, Inc. (Nasdaq: FFBW) (the “Company”), the parent company of First Federal Bank of Wisconsin (the “Bank”), a federally chartered stock savings bank offering full-service commercial banking, consumer banking and residential lending, today announced unaudited financial results for the three months ended June 30, 2021. For the three months ended June 30, 2021, net income was $452,000, or $0.07 per diluted share, compared to $365,000, or $0.05 per diluted share, for the three months ended June 30, 2020, a 23.8% increase quarter to quarter.
Share Repurchase Program
The Company continued the execution of a stock repurchase program during the second quarter. The program authorized the Company to repurchase up to 10% of the outstanding stock. Through June 30, 2021, 672,000 or 8.7% of the outstanding shares were repurchased, reducing the total number of shares outstanding at the end of the quarter to 7,034,000.
Edward H. Schaefer, President and CEO, stated, “Our community bank model focusing on prudent small business lending continues to increase earnings while we diligently work to maintain our net interest margin and find operational efficiencies from our recent acquisition. As we come out of the pandemic, I want to thank our stakeholders (employees, customers and investors) for their efforts and support the last year as we navigated through these very challenging times”.
Financial Highlights at June 30, 2021
| • | At June 30, 2021, the Bank had a Tier 1 Risk-Based Capital ratio of 33.6%. |
| • | At June 30, 2021, the allowance for loan loss was 1.21% of total loans and 719.5% of non-performing loans. |
| • | At June 30, 2021, the Bank has no other real estate owned (OREO). |
Income Statement and Balance Sheet Overview
Total interest and dividend income increased $25,000 or 0.9%, to $2.8 million for the three months ended June 30, 2021, compared to $2.8 million for the three months ended June 30, 2020. Average interest-earning assets increased $39.4 million, or 14.1%, to $319.1 million for the three months ended June 30, 2021, compared to $279.7 million for the three months ended June 30, 2020, and the weighted average yield on interest-earning assets decreased 47 basis points when comparing the 2021 and 2020 periods. The decrease in average yield was primarily the result of an increase in our cash balance.
Total interest expense decreased $178,000, or 40.2%, to $265,000 for the three months ended June 30, 2021, compared to $443,000 for the three months ended June 30, 2020. Average interest-bearing liabilities increased $47.8 million, or 32.6%, to $194.4 million for the three months ended June 30, 2021, from $146.6 million for the three months ended June 30, 2020. The rate paid on interest-bearing liabilities decreased 66 basis points to 0.55% for the three months ended June 30, 2021, compared to 1.21% for the three months ended June 30, 2020.
Net interest margin was 3.23% for the three months ended June 30, 2021, compared to 3.40% for the three months ended June 30, 2020.
The loan loss provision was $0 for the three months ended June 30, 2021, compared to $215,000 for the three months ended June 30, 2020. On June 30, 2021, our allowance for loan loss was $2.4 million, or 1.21%, of total loans. At June 30, 2021, the Bank’s allowance for loan losses excluding government guaranteed PPP loans is 1.26% of total loans.
Noninterest income decreased $40,000, or 13.3%, to $260,000 for the three months ended June 30, 2021, compared to $300,000 for the three months ended June 30, 2020. The decrease was due primarily to a decrease in the gain on sale of loans of $53,000 resulting from a decrease in refinance volume.
Noninterest expense increased $273,000, or 13.6%, to $2.3 million for the three months ended June 30, 2021, compared to $2.0 million for the three months ended June 30, 2020. The increase was primarily due to an increase in salaries and employee benefits expenses of $363,000 which was influenced by the acquisition of Mitchell Bank.
Total assets increased $13.6 million, or 4.0%, to $352.6 million at June 30, 2021 from $339.0 million at December 31, 2020 due to a $42.9 million increase in cash due, in part, to deposit growth.
Nonaccrual loans were $0.3 million, or 0.10% of total loans, at June 30, 2021, and $1.1 million, or 0.49% of total loans, at December 31, 2020. Non-performing assets were $0.3 million, or 0.17% of total assets, at June 30, 2021, compared to $1.2 million, or 0.35% of total assets, at December 31, 2020.
About the Company
FFBW, Inc. is the holding company for First Federal Bank of Wisconsin, a wholly owned subsidiary. The Company’s stock trades on the NASDAQ Capital Market under the symbol “FFBW.” First Federal Bank of Wisconsin is a full-service stock savings bank based in Waukesha, Wisconsin, servicing customers in Waukesha and Milwaukee Counties in Wisconsin through five branch locations.
Cautionary Statement Regarding Forward-Looking Statements
This release contains forward-looking statements, which can be identified by the use of words such as “estimate,” “project,” “believe,” “intend,” “anticipate,” “plan,” “seek,” “expect” and words of similar meaning. These forward-looking statements include, but are not limited to: statements of our goals, intentions and expectations; statements regarding our business plans, prospects, growth and operating strategies; statements regarding the quality of our loan and investment portfolios; and estimates of our risks and future costs and benefits. These forward-looking statements are based on current beliefs and expectations of our management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond our control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. The following factors, among others, could cause actual results to differ materially from the anticipated results or other expectations expressed in the forward-looking statements: general economic conditions, either nationally or in our market areas, that are worse than expected; economic or regulatory changes related to the COVID-19 pandemic; changes in the level and direction of loan delinquencies and write-offs and changes in estimates of the adequacy of the allowance for loan losses; our ability to access cost-effective funding; fluctuations in real estate values and both residential and commercial real estate market conditions; demand for loans and deposits in our market area; our ability to implement and change our business strategies; competition among depository and other financial institutions; inflation and changes in the interest rate environment that reduce our margins and yields, our mortgage banking revenues, the fair value of financial instruments or our level of loan originations, or increase the level of defaults, losses and prepayments on loans we have made and make; adverse changes in the securities or secondary mortgage markets; changes in laws or government regulations or policies affecting financial institutions, including changes in regulatory fees and capital requirements, including as a result of Basel III; the impact of the Dodd-Frank Act and the implementing regulations; changes in the quality or composition of our loan or investment portfolios; technological changes that may be more difficult or expensive than expected; the inability of third-party providers to perform as expected; our ability to manage market risk, credit risk and operational risk in the current economic environment; our ability to enter new markets successfully and capitalize on growth opportunities; our ability to successfully integrate into our operations any assets, liabilities, customers, systems and management personnel we may acquire and our ability to realize related revenue synergies and cost savings within expected time frames, and any goodwill charges related thereto; changes in consumer spending, borrowing and savings habits; changes in accounting policies and practices, as may be adopted by the bank regulatory agencies, the Financial Accounting Standards Board, the Securities and Exchange Commission or the Public Company Accounting Oversight Board; our ability to retain key employees; our compensation expense associated with equity allocated or awarded to our employees; and changes in the financial condition, results of operations or future prospects of issuers of securities that
we own. Because of these and a wide variety of other uncertainties, our actual future results may be materially different from the results indicated by these forward-looking statements.
Contact: Edward H. Schaefer, President & CEO
(262) 542-4448
FFBW, Inc.
Balance Sheets
June 30, 2021 (Unaudited) and December 31, 2020
(In thousands)
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| June 30, | December 31, |
Assets | 2021 | 2020 | |
Cash and cash equivalents | $ 84,420 | $ 41,479 | |
Available for sale securities, stated at fair value | 51,453 | 64,243 | |
Net Loans | 197,997 | 216,431 | |
Premises and equipment, net | 5,514 | 5,594 | |
Foreclosed assets | - | 125 | |
Other assets | 13,219 | 11,100 | |
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TOTAL ASSETS | $ 352,603 | $ 338,972 | |
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Liabilities and Equity |
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Deposits and escrow | $ 245,921 | $ 226,625 | |
Borrowings | 8,500 | 7,500 | |
Other liabilities | 1,413 | 1,582 | |
Total liabilities | 255,834 | 235,707 | |
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Total equity | 96,769 | 103,265 | |
TOTAL LIABILITIES AND EQUITY | $ 352,603 | $ 338,972 | |
FFBW, Inc.
Condensed Statements of Income
Three Months Ended June 30, 2021 and 2020 (Unaudited)
(In thousands, except share data)
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| 2021 | 2020 | |
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Interest and dividend income: | $ 2,843 | $ 2,818 | ||
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Interest expense: | 265 | 443 | ||
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Net interest income | 2,578 | 2,375 | ||
Provision for loan losses | 0 | 215 | ||
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Net interest income after provision for loan losses | 2,578 | 2,160 | ||
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Noninterest income: | 260 | 300 | ||
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Noninterest expense: | 2,282 | 2,009 | ||
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Income before income taxes | 556 | 451 | ||
Provision for income taxes | 104 | 86 | ||
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Net income (loss) | 452 | 365 | ||
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Earnings (loss) per share |
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| Basis |
| $ 0.07 | $ 0.05 |
| Diluted | $ 0.07 | $ 0.05 | |