×

FFW Corporation Announces Earnings for the Quarter Ended September 30, 2016

WABASH, Ind., Oct. 26, 2016 (GLOBE NEWSWIRE) -- FFW Corporation (the “Corporation”) (OTC PINK:FFWC) (10/25/16 Close: $29.50), parent corporation of Crossroads Bank (the “Bank”), announced earnings for the three months ended September 30, 2016.

For the three months ended September 30, 2016, the Corporation reported net income of $1,038,000 or $0.87 per common share compared to $950,000 or $0.80 per common share for the three months ended September 30, 2015. Net interest income for the three months ended September 30, 2016 was $2,906,000 compared to $2,892,000 for the three months ended September 30, 2015. The provision for loan losses was $193,000 for the three month period ended September 30, 2016 compared to $80,000 for the three month period ended September 30, 2015. Total noninterest income was $1,411,000 for the three months ended September 30, 2016 compared to $1,166,000 for the three months ended September 30, 2015. Noninterest expense was $2,794,000 for the three months ended September 30, 2016 and $2,761,000 for the three months ended September 30, 2015.

The three months ended September 30, 2016 represented a return on average common equity of 11.15% compared to 11.53% for the three month period ended September 30, 2015. The three months ended September 30, 2016 represented a return on average assets of 1.20% compared to 1.14% for the three month period ended September 30, 2015.

The allowance for loan losses as a percentage of gross loans receivable was 1.46% at September 30, 2016 compared to 1.52% at June 30, 2016. Nonperforming assets were $6,563,000 at September 30, 2016 compared to $6,700,000 at June 30, 2016.

As of September 30, 2016, FFWC’s equity-to-assets ratio was 11.10% compared to 10.98% at June 30, 2016. Total assets at September 30, 2016 were $342,530,000 compared to $340,987,000 at June 30, 2016. Shareholders’ equity was $38,018,000 at September 30, 2016 compared to $37,449,000 at June 30, 2016. Crossroads Bank exceeds all applicable regulatory requirements to be considered “well capitalized.”

Crossroads Bank is a wholly owned subsidiary of FFW Corporation providing an extensive array of banking services and a wide range of investments and securities products through its main office in Wabash and five Indiana banking centers located in Columbia City, North Manchester, Peru, South Whitley and Syracuse. The Bank provides leasing services at its banking centers and its Carmel, IN leasing and commercial loan office. Insurance products are offered through an affiliated company, Insurance 1 Services, Inc. The Corporation’s stock is traded on the OTC Markets under the symbol “FFWC.” Our website address is www.crossroadsbanking.com.

This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include expressions such as “expects,” “intends,” “believes,” and “should,” which are statements of belief as to the expected outcomes of future events. Actual results could materially differ from those presented. The Corporation's ability to predict future results involves a number of risks and uncertainties. The Corporation undertakes no obligation to release revisions to these forward-looking statements or reflect events or circumstances after the date of this release.

FFW Corporation
Selected Financial Information
Consolidated Balance Sheet
September 30June 30
2016 2016
Unaudited
Assets
Cash and due from financial institutions$4,291,075 $4,031,546
Interest-bearing deposits in other financial institutions 7,078,162 6,188,392
Cash and cash equivalents 11,369,237 10,219,938
Securities available for sale 76,995,409 79,011,265
Loans receivable, net of allowance for loan losses of $3,439,261 at
September 30, 2016 and $3,557,769 at June 30, 2016 231,314,408 229,454,626
Loans held for sale 717,634 854,375
Federal Home Loan Bank stock, at cost 1,462,500 1,462,500
Accrued interest receivable 1,790,930 1,760,537
Premises and equipment, net 5,609,483 5,193,270
Mortgage servicing rights 683,940 660,784
Cash surrender value of life insurance 8,093,694 8,022,990
Goodwill 1,213,898 1,213,898
Repossessed Assets 2,418,913 2,062,708
Other assets 859,622 1,070,211
Total assets$ 342,529,668 $ 340,987,102
Liabilities and shareholders' equity
Deposits
Noninterest-bearing$27,894,264 $25,032,689
Interest-bearing 261,083,483 254,123,833
Total deposits 288,977,747 279,156,522
Borrowings 13,518,400 21,698,400
Accrued expenses and other liabilities 2,015,941 2,682,835
Total liabilities 304,512,088 303,537,757
Shareholders' equity
Preferred stock, $.01 par; $1,000 liquidation value per share, 500,000 shares authorized;
Series C, 5% Fixed Rate Cumulative Perpetual Preferred Stock - 2,250 shares outstanding September 30, 2016 and June 30, 2016, $2,264,000 liquidation preference at September 30, 2016 and June 30, 2016 2,250,000 2,250,000
Common stock, $.01 par; 2,000,000 shares authorized;
Issued: 1,836,328; outstanding: 1,161,084 - September 30, 2016 and 1,156,084 - June 30, 2016 18,363 18,363
Additional paid-in capital 9,435,192 9,358,395
Retained earnings 34,865,281 34,053,094
Accumulated other comprehensive income 1,813,818 2,211,217
Treasury stock, at cost: 675,244 shares at September 30, 2016 and 680,244 shares at June 30, 2016 (10,365,074) (10,441,724)
Total shareholders' equity 38,017,580 37,449,345
Total liabilities and shareholders' equity $ 342,529,668 $ 340,987,102

FFW Corporation
Selected Financial Information
Consolidated Statement of Income
Three Months Ended September 30
2016 2015
UnauditedUnaudited
Interest and dividend income:
Loans, including fees$2,732,027 $2,658,734
Taxable securities 309,390 320,227
Tax exempt securities 256,333 247,824
Other 7,440 4,111
Total interest and dividend income 3,305,190 3,230,896
Interest expense:
Deposits 360,932 297,113
Borrowings 37,829 42,089
Total interest expense 398,761 339,202
Net interest income 2,906,429 2,891,694
Provision for loan losses 193,000 80,000
Net interest income after provision for
loan losses 2,713,429 2,811,694
Noninterest income:
Net gains on sales of securities 120,409 -
Net gains on sales of loans 197,307 142,595
Net gains (losses) on fixed assets (1,712) -
Commission income 241,975 247,368
Service charges and fees 214,735 177,008
Earnings on life insurance 70,704 68,980
Income from REO 427,315 405,109
Other 140,652 125,209
Total noninterest income 1,411,385 1,166,269
Noninterest expense:
Salaries and benefits 1,310,118 1,253,297
Occupancy and equipment 277,605 282,513
Professional 147,646 213,292
Marketing 77,264 61,412
Deposit insurance premium 60,750 58,583
Regulatory assessment 7,312 39,000
Correspondent bank charges 15,646 14,317
Data processing 125,644 100,398
Printing, postage and supplies 68,210 72,817
Expense on life insurance 23,622 21,913
Contribution expense 15,715 9,388
Expense on REO 380,960 338,712
Other 283,951 295,439
Total noninterest expense 2,794,443 2,761,081
Income before income taxes 1,330,371 1,216,882
Income tax expense 292,675 266,633
Net income $ 1,037,696 $ 950,249
Preferred stock dividends 28,125 40,625
Net income attributable to common shareholders$ 1,009,571 $ 909,624

FFW Corporation
Selected Financial Information
Key Balances and Ratios
Three Months Ended September 30
2016 2015
UnauditedUnaudited
Per common share data:
Earnings$0.87 $0.80
Diluted earnings$0.87 $0.80
Dividends paid$0.17 $0.15
Average shares issued and outstanding 1,158,475 1,142,084
Shares outstanding end of period 1,161,084 1,142,084
Supplemental data:
Net interest margin ** 3.63% 3.73%
Return on average assets *** 1.20% 1.14%
Return on average common equity *** 11.15% 11.53%
September 30June 30
2016 2016
Nonperforming assets *$6,562,918 $6,699,913
Repossessed assets$2,418,913 $2,062,708
*Includes non-accruing loans, accruing loans delinquent more than 90 days and repossessed assets
**Yields reflected have not been computed on a tax equivalent basis
***Annualized

FOR MORE INFORMATION Contact: Emily Boardman, Treasurer, at 260-563-3185

Source:Crossroads Bank