Executive Summary

Q1 2022 net income was $0.567M and diluted EPS $0.09, down 15.4% YoY (vs $0.10 in Q1 2021) but up sequentially from $0.07 in Q4 2021 as expenses fell and NIM improved sequentially .
Net interest margin rose to 3.30% (from 2.97% in Q4 2021), while interest and dividend income fell YoY on lower PPP fees and slower mortgage refi activity; noninterest income also declined on lower gain-on-sale .
Credit quality remained strong: non-performing assets were 0.08% of total assets, allowance was 1.09% of loans and 873% of NPLs; tangible book value per share was $13.89 .
Capital return stepped up with a new authorization to repurchase up to 625,000 shares (~10% of outstanding), following completion of the prior program in March 2022—an incremental support and potential stock catalyst .

What Went Well and What Went Wrong

What Went Well
- Sequential operating improvement: diluted EPS improved to $0.09 (Q1 2022) from $0.07 (Q4 2021) as NIM increased to 3.30% from 2.97% .
- Expense discipline: noninterest expense decreased $0.286M YoY to $2.117M on lower data processing and salaries/benefits .
- Capital return and strong balance sheet quality: new 10% buyback authorization; non-performing assets were 0.08% of assets, and allowance coverage stood at 873% of NPLs .
- Management quote: “our ability to grow our loan portfolio over the last twelve months as well as execute our share buyback programs allowed us to keep earnings per share in line quarter to quarter... Our goal for 2022 will be to continue to profitably grow our small business banking platform.” — Edward H. Schaefer, CEO .
What Went Wrong
- Earnings pressure vs prior year: net income declined to $0.567M (–15.4% YoY), with diluted EPS $0.09 vs $0.10 in Q1 2021, primarily as PPP/mortgage refinance tailwinds faded .
- Revenue headwinds: total interest and dividend income fell by $0.356M YoY to $2.810M on lower PPP fee contribution; noninterest income fell $0.097M on lower gain-on-sale .
- YoY margin compression: NIM declined from 3.78% in Q1 2021 to 3.30% in Q1 2022 (though improved sequentially), reflecting mix and fee normalization .

Financial Results

Sequential P&L and NIM (oldest → newest)

Metric	Q3 2021	Q4 2021	Q1 2022
Interest & Dividend Income ($M)	$2.674	$2.681	$2.810
Net Interest Income ($M)	$2.428	$2.469	$2.613
Noninterest Income ($M)	$0.326	$0.295	$0.258
Noninterest Expense ($M)	$2.176	$2.121	$2.117
Net Income ($M)	$0.459	$0.402	$0.567
Diluted EPS ($)	$0.07	$0.07	$0.09
Net Interest Margin (%)	2.94%	2.97%	3.30%

YoY comparison (Q1 2021 vs Q1 2022)

Metric	Q1 2021	Q1 2022
Interest & Dividend Income ($M)	$3.166	$2.810
Net Interest Income ($M)	$2.900	$2.613
Noninterest Income ($M)	$0.355	$0.258
Noninterest Expense ($M)	$2.403	$2.117
Net Income ($M)	$0.670	$0.567
Diluted EPS ($)	$0.10	$0.09
Net Interest Margin (%)	3.78%	3.30%

Balance Sheet (sequential)

Metric	Q3 2021	Q4 2021	Q1 2022
Total Assets ($M)	$355.279	$357.077	$341.684
Deposits & Escrow ($M)	$251.600	$255.352	$246.817
Borrowings ($M)	$6.500	$6.500	$6.500
Total Equity ($M)	$95.826	$93.972	$87.186
Tangible BV/Share ($)	$13.81	$13.91	$13.89

KPIs

KPI	Q3 2021	Q4 2021	Q1 2022
Allowance for Loan Losses (% of Loans)	1.16%	1.08%	1.09%
Allowance / NPLs (%)	1,355.0%	855.3%	873.0%
Nonaccrual Loans (% of Loans)	0.09%	0.13%	0.12%
Non-performing Assets (% of Assets)	0.05%	0.08%	0.08%
OREO	None	—	None

Note: FFBW does not present “Revenue” as a single line; the tables show bank-relevant lines (net interest income, noninterest income) and NIM with direct citations.

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Share Repurchase Authorization	Q1 2022 (May 10, 2022)	Completed 2nd program on Mar 23, 2022; 690,000 shares repurchased; 6.254M shares outstanding	New authorization to repurchase up to 625,000 shares (~10% of outstanding)	Initiated
Formal quantitative financial guidance (revenue, margins, OpEx, OI&E, tax, dividends)	Q1 2022	Not provided in releases reviewed	Not provided in Q1 2022 release	Maintained (no formal guidance)

Earnings Call Themes & Trends

No Q1 2022 earnings call transcript was available; themes are compiled from company press releases.

Topic	Previous Mentions (Q3 2021; Q4 2021)	Current Period (Q1 2022)	Trend
Loan growth / Small business platform	“strong loan growth” and building commercial lending platform (Q3) ; added “many new small business relationships” and grew loan portfolio despite PPP runoff (Q4)	CEO highlights 12‑month loan growth and plan to “profitably grow our small business banking platform” in 2022	Improving
Net interest margin / Liquidity	NIM 2.94% down due to elevated cash post‑acquisition (Q3) ; NIM 2.97% with same dynamic (Q4)	NIM improved to 3.30% (Q1)	Improving
Mortgage banking / Gain on sale	Gain on sale down $0.138M YoY (Q3)	Gain on sale down $0.193M YoY (Q4)	Gain on sale down $0.130M YoY (Q1)
Expenses / Integration run-rate	Higher salaries/benefits with Mitchell expansion (Q3)	Salaries/benefits elevated (Q4)	Noninterest expense down $0.286M YoY (Q1)
Capital return (buybacks)	Completed prior 10% program; adopted new up to 690k program (Q3)	Completed second program (690k) in Mar 2022	New 625k (~10%) authorization announced (Q1)
Credit quality	NPA 0.05% of assets; nonaccrual 0.09% of loans (Q3)	NPA 0.08% (Q4)	NPA 0.08%; nonaccrual 0.12% (Q1)

Management Commentary

Strategic focus: “Our goal for 2022 will be to continue to profitably grow our small business banking platform... These efforts in 2022 should positively grow the company’s tangible book value on a per share basis” — Edward H. Schaefer, President & CEO .
Capital deployment: Board authorized buyback of up to 625,000 shares (~10% of outstanding) following completion of the prior program .
2021 context: “adding many new small business relationships and growing our loan portfolio despite the runoff of PPP loans” (Q4 release), positioning for profitable growth .
Q3 backdrop: “strong loan growth” and expense control moving toward more normal run rate after integration .

Q&A Highlights

No Q1 2022 earnings call transcript was found for FFBW; therefore, no Q&A highlights or call-specific guidance clarifications are available from the period’s materials [ListDocuments: none found].

Estimates Context

We attempted to retrieve Wall Street consensus (S&P Global) for Q1 2022 EPS and revenue but could not access the data due to daily request limits; as a result, we cannot provide a beat/miss analysis versus consensus for this quarter. If estimates become available, we would anchor comparisons to S&P Global consensus and update accordingly.

Key Takeaways for Investors

Sequential improvement: EPS rose to $0.09 with NIM expanding to 3.30% from 2.97%, indicating healthier core spread dynamics even as PPP tailwinds normalized .
Cost control gaining traction: noninterest expense fell $0.286M YoY, aiding profitability amid lower fee income from mortgage activity .
Strong credit: NPA at 0.08% of assets and allowance coverage at 873% of NPLs provide cushion against credit shocks .
Capital return catalyst: new authorization to repurchase up to 625k shares (~10%) should be accretive to EPS/TBV and support the stock, following the completed prior program .
Mortgage/refi normalization: lower gain-on-sale and PPP fee runoff reduced YoY interest and fee income; investors should expect earnings mix driven more by core lending and spread income vs. 2021 peak refi activity .
Balance sheet moderation: assets and deposits declined sequentially (partly share repurchase related), while equity stepped down with buybacks; monitor funding costs as rates rise and liquidity normalizes .
Execution watch: management is prioritizing profitable growth in small business banking—sustained loan growth with stable credit and rising NIM would be the medium-term thesis driver .

Citations:

Q1 2022 press release and financial statements .
Q4 2021 press release and financial statements .
Q3 2021 press release and financial statements .
Share repurchase authorization details .

FFBW, Inc. /MD/ (FFBW)·Q1 2022 Earnings Summary