FFBW, Inc. (NASDAQ:FFBW) is a community bank headquartered in Brookfield, Wisconsin, serving the greater Milwaukee area. With a focus on providing personalized banking solutions, FFBW has established itself as a reliable and trusted financial institution in the region.
Business Overview
FFBW operates through its wholly-owned subsidiary, First Federal Bank of Wisconsin, offering a comprehensive suite of banking products and services to individual and corporate customers. The bank's core business lines include commercial lending, residential mortgage lending, and consumer banking. FFBW's strong community ties and commitment to customer service have been instrumental in driving its growth and success.Financials
FFBW has consistently delivered solid financial results, showcasing its ability to navigate the evolving banking landscape. In the latest fiscal year, the company reported annual net income of $1,509,000 and annual revenue of $12,023,000, reflecting its steady performance. The bank's annual operating cash flow stood at $3,300,000, while its annual free cash flow reached $3,150,000, demonstrating its strong liquidity position and ability to generate cash.Quarterly Highlights
In the most recent quarter, FFBW reported net income of $510,000, a 11.1% increase compared to the same period last year. The bank's revenue for the quarter was $3,167,000, up 18.4% year-over-year, driven by growth in both interest and non-interest income. FFBW's net interest margin expanded to 3.91% in the quarter, reflecting its ability to effectively manage its interest-earning assets and liabilities.Loan Portfolio and Asset Quality
FFBW's loan portfolio has shown steady growth, with total loans reaching $231,194,000 as of the latest quarter, up 2.8% from the prior year-end. The bank's loan portfolio is diversified across commercial, residential, and consumer lending, with a focus on maintaining a high-quality asset base. FFBW's nonperforming loans to total loans ratio stood at 0.06% as of the end of the quarter, indicating strong asset quality and disciplined underwriting practices.Deposit and Funding Mix
FFBW has a well-diversified deposit base, with a mix of non-interest-bearing and interest-bearing accounts. Total deposits amounted to $233,954,000 as of the latest quarter, down 8.3% from the prior year-end, as the bank strategically managed its deposit composition to optimize funding costs. The bank's strong liquidity position is further supported by its access to additional funding sources, such as FHLB advances and a federal funds line of credit.Capital Strength and Shareholder Returns
FFBW maintains a robust capital position, with a Tier 1 leverage ratio of 21.8% and a total risk-based capital ratio of 27.5% as of the latest quarter, well above regulatory requirements. The bank's strong capitalization provides a solid foundation for future growth and allows it to navigate potential economic uncertainties. FFBW has also demonstrated its commitment to shareholder value through its share repurchase program, which has returned capital to investors.Geographic Footprint and Expansion
FFBW's operations are primarily concentrated in the greater Milwaukee area, where it maintains a network of three full-service branches. The bank's strategic focus on its local market has allowed it to develop deep community ties and capitalize on the economic dynamics of the region. FFBW continues to explore opportunities for measured expansion within its existing footprint to further strengthen its market presence and customer base.