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FFW Corporation Announces Earnings for the Quarter and Year to Date Ended December 31, 2016

WABASH, Ind., Jan. 25, 2017 (GLOBE NEWSWIRE) -- FFW Corporation (the “Corporation”) (OTC PINK:FFWC) (1/24/17 Close: $32.00), parent corporation of Crossroads Bank (the “Bank”), announced earnings for the three and six months ended December 31, 2016.

For the three months ended December 31, 2016, the Corporation reported net income of $1,048,000 or $0.88 per common share compared to $916,000 or $0.76 per common share for the three months ended December 31, 2015. Net interest income for the three months ended December 31, 2016 was $2,861,000 compared to $2,856,000 for the three months ended December 31, 2015. The provision for loan losses was $50,000 for the three months ended December 31, 2016 and $40,000 for the three months ended December 31, 2015. Total noninterest income was $1,200,000 for the three months ended December 31, 2016 compared to $1,027,000 for the three months ended December 31, 2015. Noninterest expense was $2,672,000 for the three months ended December 31, 2016 and $2,678,000 for the three months ended December 31, 2015.

For the six months ended December 31, 2016, the Corporation reported net income of $2,085,000 or $1.75 per common share compared to $1,866,000 or $1.56 per common share for the six months ended December 31, 2015. Net interest income for the six months ended December 31, 2016 was $5,768,000 compared to $5,747,000 for the six months ended December 31, 2015. The provision for loan losses was $243,000 for the six months ended December 31, 2016 and $120,000 for the six months ended December 31, 2015. Total noninterest income was $2,611,000 for the six months ended December 31, 2016 compared to $2,194,000 for the six months ended December 31, 2015. Noninterest expense was $5,466,000 for the six months ended December 31, 2016 and $5,439,000 for the six months ended December 31, 2015.

The three and six months ended December 31, 2016 represented a return on average common equity of 11.25% and 11.20%, respectively, compared to 10.73% and 11.13% for the three and six month periods ended December 31, 2015. The three and six months ended December 31, 2016 represented a return on average assets of 1.18% and 1.19%, respectively, compared to 1.08% and 1.11%, for the three and six month periods ended December 31, 2015.

The allowance for loan losses as a percentage of gross loans receivable was 1.47% at December 31, 2016 compared to 1.52% at June 30, 2016. Nonperforming assets were $5,200,000 at December 31, 2016 compared to $6,700,000 at June 30, 2016.

As of December 31, 2016, FFWC’s equity-to-assets ratio was 10.66% compared to 10.98% at June 30, 2016. Total assets at December 31, 2016 were $351,831,000 compared to $340,987,000 at June 30, 2016. Shareholders’ equity was $37,519,000 at December 31, 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
December 31June 30
2016 2016
Unaudited
Assets
Cash and due from financial institutions$4,995,102 $4,031,546
Interest-bearing deposits in other financial institutions 15,464,553 6,188,392
Cash and cash equivalents 20,459,655 10,219,938
Securities available for sale 78,333,042 79,011,265
Loans receivable, net of allowance for loan losses of $3,448,882 at
December 31, 2016 and $3,557,769 at June 30, 2016 229,858,809 229,454,626
Loans held for sale 1,694,382 854,375
Federal Home Loan Bank stock, at cost 1,462,500 1,462,500
Accrued interest receivable 1,769,497 1,760,537
Premises and equipment, net 5,696,299 5,193,270
Mortgage servicing rights 801,493 660,784
Cash surrender value of life insurance 8,164,868 8,022,990
Goodwill 1,213,898 1,213,898
Repossessed Assets 572,455 2,062,708
Other assets 1,804,157 1,070,211
Total assets$351,831,055 $340,987,102
Liabilities and shareholders' equity
Deposits
Noninterest-bearing$30,712,691 $25,032,689
Interest-bearing 275,050,508 254,123,833
Total deposits 305,763,199 279,156,522
Borrowings 6,518,400 21,698,400
Accrued expenses and other liabilities 2,030,430 2,682,835
Total liabilities 314,312,029 303,537,757
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 December 31, 2016 and June 30, 2016, $2,264,000 liquidation preference at December 31, 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: 1,160,084 - December 31, 2016 and 1,156,084 - June 30, 2016 18,363 18,363
Additional paid-in capital 9,481,571 9,358,395
Retained earnings 35,687,697 34,053,094
Accumulated other comprehensive income 461,819 2,211,217
Treasury stock, at cost: 676,244 shares at December 31, 2016 and 680,244 shares at June 30, 2016 (10,380,424) (10,441,724)
Total shareholders' equity 37,519,026 37,449,345
Total liabilities and shareholders' equity $351,831,055 $340,987,102

FFW Corporation
Selected Financial Information
Consolidated Statement of Income
Three Months Ended December 31
Six Months Ended December 31
2016 2015 2016 2015
UnauditedUnauditedUnauditedUnaudited
Interest and dividend income:
Loans, including fees$2,696,618$2,625,285 $5,428,645 $5,284,019
Taxable securities 306,037 314,618 615,427 634,845
Tax exempt securities 269,413 254,357 525,746 502,181
Other 9,007 6,278 16,447 10,389
Total interest and dividend income 3,281,075 3,200,538 6,586,265 6,431,434
Interest expense:
Deposits 395,163 316,270 756,095 613,383
Borrowings 24,434 28,554 62,263 70,643
Total interest expense 419,597 344,824 818,358 684,026
Net interest income 2,861,478 2,855,714 5,767,907 5,747,408
Provision for loan losses 50,000 40,000 243,000 120,000
Net interest income after provision for
loan losses 2,811,478 2,815,714 5,524,907 5,627,408
Noninterest income:
Net gains on sales of securities - - 120,409 -
Net gains on sales of loans 83,245 121,222 280,552 263,817
Net gains (losses) on fixed assets - (1,352) (1,712) (1,352)
Commission income 235,363 239,586 477,338 486,954
Service charges and fees 302,935 235,842 517,670 412,850
Earnings on life insurance 71,174 70,106 141,878 139,086
Income from REO 219,800 267,342 647,115 672,451
Other 287,218 94,545 427,870 219,754
Total noninterest income 1,199,735 1,027,291 2,611,120 2,193,560
Noninterest expense:
Salaries and benefits 1,329,381 1,267,105 2,639,499 2,520,402
Occupancy and equipment 298,284 274,297 575,889 556,810
Professional 104,711 168,955 252,357 382,247
Marketing 111,107 54,780 188,371 116,192
Deposit insurance premium 5,993 58,037 66,743 116,620
Regulatory assessment 7,167 41,500 14,479 80,500
Correspondent bank charges 9,624 16,144 25,270 30,461
Data processing 126,556 108,192 252,200 208,590
Printing, postage and supplies 58,303 66,265 126,513 139,082
Expense on life insurance 23,489 21,913 47,111 43,826
Contribution expense 6,605 10,060 22,320 19,448
Expense on REO 296,969 307,726 677,929 646,438
Other 293,816 282,754 577,767 578,193
Total noninterest expense 2,672,005 2,677,728 5,466,448 5,438,809
Income before income taxes 1,339,208 1,165,277 2,669,579 2,382,159
Income tax expense 291,453 249,289 584,128 515,922
Net income $ 1,047,755 $ 915,988 $ 2,085,451 $ 1,866,237
Preferred stock dividends 28,125 40,625 56,250 81,250
Net income attributable to common shareholders$ 1,019,630 $ 875,363 $ 2,029,201 $ 1,784,987

FFW Corporation
Selected Financial Information
Key Balances and Ratios
Three Months Ended December 31
Six Months Ended December 31
2016 2015 2016 2015
UnauditedUnauditedUnauditedUnaudited
Per common share data:
Earnings$0.88 $0.76 $1.75 $1.56
Diluted earnings$0.88 $0.76 $1.75 $1.56
Dividends paid$0.17 $0.15 $0.34 $0.30
Average shares issued and outstanding 1,160,301 1,147,041 1,159,388 1,144,562
Shares outstanding end of period 1,160,084 1,154,084 1,160,084 1,154,084
Supplemental data:
Net interest margin ** 3.49% 3.67% 3.56% 3.70%
Return on average assets *** 1.18% 1.08% 1.19% 1.11%
Return on average common equity *** 11.25% 10.73% 11.20% 11.13%
December 31June 30
2016 2016
Nonperforming assets *$5,200,163 $6,699,913
Repossessed assets$572,455 $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