FFBW Q4 2023 results

Here are the details. https://www.firstfederalwisconsin.com/wp-content/uploads/2024/03/FFBW-Inc.-Announces-Financial-Results-for-the-Three-Months-Ended-December-31-2023.pdf

I suspected that the company had been repurchasing, since we’ve seen some unusual activity here in the recent past. On March 5, 109,000+ shares traded, and then just today 27,500 traded – both way above daily averages. However, the company has done relatively little, as of 3/7.

They report TBV at $14.85 a share, and the CEO has a quote about continuing to see buybacks as an attractive use of capital.

Jim

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Hello
I appreciate you providing the information and the financial results link. The unique trading activity is intriguing to observe, especially the notable increase in shares exchanged between March 5 and today. Notable are the reported $14.85 per share tangible book value (TBV) and the CEO’s comment about how appealing buybacks are as a capital usage. Repurchasing appears to be part of the plan, and it will be interesting to watch how things work out in the next few days.
Regards
David Warner
Purva Aerocity

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Thanks Jim,
These statements appear to be contradictory:

For the three months ending December 31, 2023, the dilutive weighted average shares outstanding, which excludes unallocated employee stock ownership plan shares, were 4,509,000 compared to 4,983,000 for the three months ended December 31, 2022.

As of March 7, 2024, 22,000 shares have been purchased since the new program was announced, reducing the number of shares outstanding to 4,992,000.

Possibly the difference is the ESOP shares?

Price to book at 0.86 today. This is below 2019 levels but it has been trending upward since a low point in 2020 of 0.69. A crude calculation, removing the shares repurchased this year, would put it at around 0.83. Any thoughts on valuation, Jim?

Vince

https://www.otcmarkets.com/otcapi/company/dns/news/document/76409/content

FFBW, Inc. Announces Financial Results for the Three Months Ended June 30, 2024

Brookfield, WI, August 9, 2024 – FFBW, Inc. (OTCQX: 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 and consumer banking, today announced unaudited financial results for the three months ended June 30, 2024. For the three months ended June 30, 2024, net income was $647,000, or $0.15 per diluted share, compared to $470,000, or $0.10 per diluted share, for the three months ended June 30, 2023, a 37.7% increase quarter to quarter.

For the three months ending June 30, 2024, the dilutive weighted average shares outstanding, which excludes unallocated employee stock ownership plan shares, were 4,454,000 compared to 4,681,000 for the three months ended June 30, 2023.

Share Repurchase Program

On December 18, 2023, the Company announced the adoption of a new repurchase program of up to an additional 400,000 shares of its common stock. As of August 8, 2024, 121,000 shares have been purchased since the new program was announced, reducing the number of shares outstanding to 4,911,000.

Financial Highlights at June 30, 2024

• At June 30, 2024, the Company had 4,911,000 shares outstanding, resulting in a tangible book value per share of $15.11.
• At June 30, 2024, the Bank’s leverage ratio was 21.0%.

Edward H. Schaefer, President and CEO, commented, “Our discipline on deposit and loan pricing has resulted in an improvement in net interest margin that, in turn, has had a positive impact on earnings and tangible book value per share. As our stock continues to trade below book value, using our excess capital to repurchase our shares remains attractive.”

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P/BV of 0.83. Still looks like a buy.

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Thanks, Rob. I’ve been checking their site to see when this would come out. I would love to see them repurchase at a faster rate. They still have gobs of money sitting on their balance sheet.

Jim

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Yeah, it looks like this latest repurchase auth has been acted upon slowly.

Are there reasons?:

  • Worried about CRE and reserves?
  • Board reticence/intransigence after death of longtime members, the Chairman and Vice-Chairman?
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Rob, I’m not aware of anything in particularly. For sure, volume has dried up, but there were definitely some days where volume went into the tens of thousands.

They have absolutely tons of idle capital here.

Jim