The loan loss provision was $0 for the three months ended March 31, 2021 compared to $40,000 for the three months ended March 31, 2020. At March 31, 2021, our allowance for loan loss was $2.8 million, or 1.36%, of total loans. At March 31, 2021, the Bank’s allowance for loan losses excluding government guaranteed PPP loans is 1.46% of total loans.
Noninterest income increased $192,000, or 117.8% to $355,000 for the three months ended March 31, 2021 compared to $163,000 for the three months ended March 31, 2020. The increase was due primarily to an increase in the gain on sale of loans of $126,000 due to an increase in refinance volume.
Noninterest expense increased $559,000 to $2.4 million for the three months ended March 31, 2021 compared to $1.8 million for the three months ended March 31, 2020. The increase was primarily due to an increase in salaries and employee benefits expenses of $230,000 and an increase in data processing expenses of $131,000. Both increases were influenced by the acquisition of Mitchell Bank.
Total assets decreased $1.2 million, or 0.4%, to $337.8 million at March 31, 2021 from $339.0 million at December 31, 2020 in part due to the share repurchase activity.
Nonaccrual loans were $1.1 million, or 0.56% of total loans, at March 31, 2021 and $1.1 million, or 0.49% of total loans, at December 31, 2020. Non-performing assets were $1.1 million, or 0.34% of total assets, at March 31, 2021 compared to $1.2 million, or 0.35% of total assets, at December 31, 2020.
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 four 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, including as a result of Basel III; 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
