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FFBW, Inc. /MD/ (FFBW)·Q4 2021 Earnings Summary

Executive Summary

  • Q4 2021 net income was $0.402M ($0.07 diluted EPS), down 20.2% year over year; net interest margin compressed to 2.97% from 3.54% YoY due to elevated cash balances post-Mitchell Bank acquisition and strong organic deposit growth .
  • Net loan balances increased materially: +$15.8M q/q (+7.7%) and +$19.8M (+9.8%) excluding PPP forgiveness; tangible book value per share reached $13.91 .
  • Credit quality improved: nonaccrual loans fell to $0.3M (0.13% of loans) and NPAs to $0.3M (0.08% of assets) vs. $1.2M (0.35% of assets) at YE 2020 .
  • Completed second 10% share repurchase program (690,000 shares); shares outstanding now 6,254,000, supporting per-share value metrics .
  • Wall Street consensus EPS and revenue estimates via S&P Global were unavailable at time of request, so no beat/miss determination is provided (consensus unavailable via S&P Global).

What Went Well and What Went Wrong

What Went Well

  • Commercial loan growth accelerated despite PPP runoff; net loans +$15.8M q/q (+7.7%), and +$19.8M (+9.8%) ex-PPP forgiveness in Q4 2021 .
  • Credit metrics strengthened: nonaccrual loans $0.3M (0.13% of loans) and NPAs $0.3M (0.08% of assets), down sharply vs. YE 2020 .
  • Shareholder returns: completed second buyback (690k shares), reducing shares outstanding to 6.254M; tangible book value per share reached $13.91 .
    • CEO: “Our team worked extremely hard in 2021 adding many new small business relationships and growing our loan portfolio despite the runoff of PPP loans…This profitable growth along with our stock repurchase plan generated a solid increase in our tangible book value per share.”

What Went Wrong

  • Net interest margin pressure: NIM 2.97% vs. 3.54% YoY, driven by elevated cash post-acquisition and deposit inflows, diluting asset yields .
  • Noninterest income fell $91k YoY (−23.6%) on lower gain on sale of loans (−$193k), partly offset by higher service charges/other income (+$90k) .
  • Operating expenses rose: noninterest expense +$109k YoY to $2.121M, primarily salaries/benefits tied to Mitchell Bank integration/expansion .

Financial Results

MetricQ4 2020Q2 2021Q3 2021Q4 2021
Revenue (Interest & Dividend Income, $USD Millions)$2.816 $2.843 $2.674 $2.681
Net Interest Income ($USD Millions)$2.532 $2.578 $2.428 $2.469
Noninterest Income ($USD Millions)$0.386 $0.260 $0.326 $0.295
Noninterest Expense ($USD Millions)$2.012 $2.282 $2.176 $2.121
Net Income ($USD Millions)$0.504 $0.452 $0.459 $0.402
Diluted EPS ($USD)$0.07 $0.07 $0.07 $0.07
Net Interest Margin (%)3.54% 3.23% 2.94% 2.97%
EPS Consensus (S&P Global)N/A*N/A*N/A*N/A*
Revenue Consensus (S&P Global)N/A*N/A*N/A*N/A*

*Consensus estimates were unavailable via S&P Global at time of request.

KPIs

KPIQ2 2021Q3 2021Q4 2021
Net Loans ($USD Millions)$197.997 $206.314 $222.604
Deposits & Escrow ($USD Millions)$245.921 $251.600 $255.352
Allowance for Loan Losses (% of Total Loans)1.21% 1.16% 1.08%
Nonaccrual Loans ($USD Millions; % of Total Loans)$0.3; 0.10% $0.2; 0.09% $0.3; 0.13%
Non-Performing Assets ($USD Millions; % of Total Assets)$0.3; 0.17% $0.2; 0.05% $0.3; 0.08%
Tangible Book Value per Share ($)N/A$13.81 $13.91

Balance Sheet Reference Points

MetricDec 31, 2020Sep 30, 2021Dec 31, 2021
Total Assets ($USD Millions)$338.972 $355.279 $357.077
Borrowings ($USD Millions)$7.500 $6.500 $6.500
Total Equity ($USD Millions)$103.265 $95.826 $93.972

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Revenue, margins, OpEx, tax rate, segments, dividendsFY/Q4 2021None providedNone providedMaintained (no formal guidance)

No explicit quantitative guidance was provided in the Q4 press release or contemporaneous materials .

Earnings Call Themes & Trends

There was no public earnings call transcript for Q4 2021 available; themes are drawn from the Q2/Q3/Q4 earnings releases and Feb 2022 investor slides .

TopicPrevious Mentions (Q2 2021)Previous Mentions (Q3 2021)Current Period (Q4 2021)Trend
Net Interest Margin3.23% amid higher cash balances 2.94%; cash/deposit inflows compress yields 2.97%; continued pressure from elevated cash Compressing then stabilizing
Loan Growth (ex-PPP)Integration focus; ALLOW 1.21% Strong commercial loan growth Net loans +$19.8M ex-PPP forgiveness; +9.8% q/q ex-PPP Improving
Credit QualityNPLs $0.3M; NPAs 0.17% of assets NPLs $0.2M; NPAs 0.05% NPLs $0.3M; NPAs 0.08%; ALLL 1.08% Strong/Stable
Expense Run-RateElevated due to acquisition integration Beginning to normalize Salaries/benefits higher from expansion Normalizing with growth investments
Capital/Buybacks1st 10% buyback executed 2nd 10% buyback initiated 2nd buyback completed; 690k shares; 6.254M o/s Shareholder-friendly
Strategic FocusSmall business lending platform growth Commercial platform solidifying Profitably grow small business platform; repurchases Consistent execution

Management Commentary

  • CEO outlook: “We are excited about the team we have put together to profitably grow our small business platform in 2022 and beyond.”
  • Strategic emphasis: Focused on leveraging strong capital to expand footprint in SE and south-central Wisconsin, via organic growth and prudent acquisitions/mergers .
  • M&A integration: Mitchell Bank acquisition closed Dec 31, 2020; 2021 focus was integration, expanding relationships, and creating efficiencies .

Q&A Highlights

No Q4 2021 earnings call transcript was available; therefore, no public Q&A highlights or guidance clarifications can be provided based on a call transcript. Commentary herein references press releases and investor slide materials .

Estimates Context

  • S&P Global consensus EPS and revenue estimates for Q2–Q4 2021 were unavailable at time of request, preventing a beat/miss determination (consensus unavailable via S&P Global).
  • Given limited sell-side coverage for a small-cap community bank, investors should focus on trajectory: loan growth recovery, NIM stabilization, and capital deployment via repurchases .

Key Takeaways for Investors

  • Loan growth re-accelerated in Q4 (+7.7% q/q; +9.8% ex-PPP), signaling traction in the commercial platform despite PPP runoff—supports near-term interest income growth .
  • Net interest margin appears to be stabilizing near ~3% after compression from elevated cash; redeployment of liquidity into loans should be a tailwind as growth continues .
  • Credit metrics remain robust (NPAs 0.08% of assets; ALLL 1.08%), limiting provisioning needs and supporting earnings durability .
  • Shareholder returns via completed 10% buyback (690k shares) and TBV/share expansion to $13.91 provide valuation support and potential for accretive capital actions in 2022 .
  • Noninterest income headwinds from lower mortgage gain-on-sale persist; watch for diversification of fee income to offset cyclicality .
  • Expense run-rate tied to growth investments and prior acquisition appears manageable; monitor operating leverage as volumes scale .
  • With consensus estimates unavailable, trading may be driven by tangible book value progress, credit quality stability, and evidence of sustained loan growth/NIM improvement rather than beat/miss headlines .

References:

  • Q4 2021 earnings press release and 8-K:
  • Q3 2021 earnings press release and 8-K:
  • Q2 2021 earnings press release and 8-K:
  • Janney Bank CEO Forum investor slides: