UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported):
(Exact Name of Registrant as Specified in Charter)
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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):
CFR 240.14d-2(b))
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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 November 3, 2022, FFBW, Inc. issued a press release announcing results for the quarter ended September 30, 2022. 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
99.1 |
104 | Cover page Interactive Data File (embedded within the Inline XBRL document). |
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. | |
DATE: November 3, 2022 | By:/s/ Steven L. Wierschem |
Steven L. Wierschem | |
Chief Financial Officer |
Exhibit 99.1
FFBW, Inc. Announces Financial Results for the Three Months Ended September 30, 2022
Brookfield, WI, November 3, 2022 – 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 September 30, 2022. For the three months ended September 30, 2022, net income was $510,000, or $0.10 per diluted share, compared to $459,000, or $0.07 per diluted share, for the three months ended September 30, 2021, an 11.1% increase quarter to quarter. For the three months ending September 30, 2022, the dilutive weighted average shares outstanding were 5,234,000 compared to 6,374,000 for the three months ended September 30, 2021.
Share Repurchase Program
On September 1, 2022, the Company announced it had completed a program to repurchase 625,000 shares of its common stock and adopted a new program to repurchase up to an additional 400,000 shares of its common stock, which was approximately 7% of its remaining outstanding common stock. Through September 30, 2022, 81,000 shares were repurchased under the new repurchase program, reducing the total number of shares outstanding at the end of the quarter to 5,566,000.
Financial Highlights at September 30, 2022
• | At September 30, 2022, the Company’s tangible book value per share was $13.87. |
• | At September 30, 2022, the allowance for loan loss was 1.09% of total loans and 1,702.8% of non-performing loans. |
• | At September 30, 2022, the Bank had no other real estate owned (OREO). |
Edward H. Schaefer, President and CEO, stated, “During the third quarter, we started to see the loan growth that we anticipated in the first half of the year. Continuing to fund profitable growth and share repurchases will require our team to execute both on our depository as well as loan growth plans given the pressure that rising rates are putting on liquidity. Additionally, with a possible recession in our future, we remain focused on our strong credit discipline. Thank you to the team for their commitment to increasing shareholder value.”
Income Statement and Balance Sheet Overview
Total interest and dividend income increased $493,000 or 18.4%, to $3.2 million for the three months ended September 30, 2022, compared to $2.7 million for the three months ended September 30, 2021. Average interest-earning assets decreased $28.2 million, or 8.6%, to $298.9 million for the three months ended September 30, 2022, compared to $327.1 million for the three months ended September 30, 2021, and the weighted average yield on interest-earning assets increased 96 basis points when comparing the 2022 and 2021 periods. The increase in average yield was primarily the result of higher yielding additions to our loan and securities portfolios and an increase in the rate paid on our deposits with the Federal Reserve.
Total interest expense increased $4,000, or 1.6%, to $250,000 for the three months ended September 30, 2022, compared to $246,000 for the three months ended September 30, 2021. Average interest-bearing liabilities decreased $12.9 million, or 6.4%, to $188.3 million for the three months ended September 30, 2022, from $201.2 million for the three months ended September 30, 2021. The rate paid on interest-bearing liabilities increased four basis points to 0.53% for the three months ended September 30, 2022, compared to 0.49% for the three months ended September 30, 2021.
Net interest margin was 3.91% for the three months ended September 30, 2022, compared to 2.94% for the three months ended September 30, 2021.
The loan loss provision was $93,000 for the three months ended September 30, 2022, compared to $0 for the three months ended September 30, 2021. At September 30, 2022, our allowance for loan losses was $2.5 million, or 1.09%, of total loans.
Noninterest income decreased $78,000, or 23.9% to $248,000 for the three months ended September 30, 2022, compared to $326,000 for the three months ended September 30, 2021. The decrease was due primarily to non-recurrence of grant income of $86,000 that was recognized in 2021.
Noninterest expense increased $218,000 to $2.4 million for the three months ended September 30, 2022, compared to $2.2 million for the three months ended September 30, 2021. The increase was primarily due to an increase in salaries and employee benefits expenses of $174,000.
Total assets decreased $43.3 million, or 12.1%, to $313.8 million at September 30, 2022 from $357.1 million at December 31, 2021 resulting primarily from a decrease in cash and cash equivalents, reflecting a decrease in deposits and borrowings and share repurchase activity.
Nonaccrual loans were $0.1 million, or 0.06% of total loans, at September 30, 2022 and $0.3 million, or 0.13% of total loans, at December 31, 2021. Non-performing assets were $0.1 million, or 0.05% of total assets at September 30, 2022 and $0.3 million, or 0.08% of total assets, at December 31, 2021.
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 six 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; 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
September 30, 2022 (Unaudited) and December 31, 2021
(In thousands)
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| September 30, | December 31, |
Assets | 2022 | 2021 | |
Cash and cash equivalents | $ 16,049 | $ 67,002 | |
Available for sale securities, stated at fair value | 47,472 | 48,398 | |
Net Loans | 228,300 | 222,604 | |
Premises and equipment, net | 6,684 | 5,506 | |
Other assets | 15,278 | 13,567 | |
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TOTAL ASSETS | $ 313,783 | $ 357,077 | |
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Liabilities and Equity |
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Deposits and escrow | $ 235,267 | $ 255,352 | |
Borrowings | - | 6,500 | |
Other liabilities | 1,056 | 1,253 | |
Total liabilities | 236,323 | 263,105 | |
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Total equity | 77,460 | 93,972 | |
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TOTAL LIABILITIES AND EQUITY | $ 313,783 | $ 357,077 |
FFBW, Inc.
Condensed Statements of Income
Three Months Ended September 30, 2022 and 2021 (Unaudited)
(In thousands, except share data)
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| 2022 | 2021 | |||
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Interest and dividend income: | $ 3,167 | $ 2,674 | ||||
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Interest expense: | 250 | 246 | ||||
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Net interest income | 2,917 | 2,428 | ||||
Provision for loan losses | 93 | - | ||||
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Net interest income after provision for loan losses | 2,824 | 2,428 | ||||
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Noninterest income: | 248 | 326 | ||||
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Noninterest expense: | 2,394 | 2,176 | ||||
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Income before income taxes | 678 | 578 | ||||
Provision for income taxes | 168 | 119 | ||||
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Net income | $ 510 | $ 459 | ||||
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Earnings per share |
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| Basis |
| $ 0.10 | $ 0.07 | ||
| Diluted | $ 0.10 | $ 0.07 |
Document And Entity Information |
Nov. 03, 2022 |
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Document And Entity Information | |
Document Type | 8-K |
Document Period End Date | Nov. 03, 2022 |
Entity Registrant Name | FFBW, INC. /MD/ |
Entity Incorporation, State or Country Code | MD |
Entity File Number | 001-39182 |
Entity Tax Identification Number | 37-1962248 |
Entity Address, Address Line One | 1360 South Moorland Road |
Entity Address, City or Town | Brookfield |
Entity Address, State or Province | WI |
Entity Address, Postal Zip Code | 53005 |
City Area Code | 262 |
Local Phone Number | 542-4448 |
Written Communications | false |
Soliciting Material | false |
Pre-commencement Tender Offer | false |
Pre-commencement Issuer Tender Offer | false |
Title of 12(b) Security | Common Stock, par value $0.01 per share |
Trading Symbol | FFBW |
Security Exchange Name | NASDAQ |
Entity Emerging Growth Company | true |
Entity Ex Transition Period | false |
Entity Central Index Key | 0001787384 |
Amendment Flag | false |
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