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FFW Corporation Announces Earnings for the Quarter and Year to Date Ended March 31, 2017

WABASH, Ind., April 26, 2017 (GLOBE NEWSWIRE) -- FFW Corporation (the “Corporation”) (OTC PINK:FFWC) (4/25/17 Close: $37.00), parent corporation of Crossroads Bank (the “Bank”), announced earnings for the three and nine months ended March 31, 2017.

For the three months ended March 31, 2017, the Corporation reported net income of $916,000 or $0.76 per common share compared to $922,000 or $0.76 per common share for the three months ended March 31, 2016. Net interest income for the three months ended March 31, 2017 was $2,920,000 compared to $2,885,000 for the three months ended March 31, 2016. The provision for loan losses was $50,000 for the three months ended March 31, 2017 and $80,000 for the three months ended March 31, 2016. Total noninterest income was $852,000 for the three months ended March 31, 2017 compared to $874,000 for the three months ended March 31, 2016. Noninterest expense was $2,573,000 for the three months ended March 31, 2017 and $2,505,000 for the three months ended March 31, 2016.

For the nine months ended March 31, 2017, the Corporation reported net income of $3,001,000 or $2.51 per common share compared to $2,788,000 or $2.32 per common share for the nine months ended March 31, 2016. Net interest income for the nine months ended March 31, 2017 was $8,688,000 compared to $8,632,000 for the nine months ended March 31, 2016. The provision for loan losses was $293,000 for the nine months ended March 31, 2017 and $200,000 for the nine months ended March 31, 2016. Total noninterest income was $3,463,000 for the nine months ended March 31, 2017 compared to $3,067,000 for the nine months ended March 31, 2016. Noninterest expense was $8,040,000 for the nine months ended March 31, 2017 and $7,944,000 for the nine months ended March 31, 2016.

The three and nine months ended March 31, 2017 represented a return on average common equity of 9.95% and 10.79%, respectively, compared to 10.56% and 10.93% for the three and nine month periods ended March 31, 2016. The three and nine months ended March 31, 2017 represented a return on average assets of 1.04% and 1.14%, respectively, compared to 1.09% and 1.11%, for the three and nine month periods ended March 31, 2016.

The allowance for loan losses as a percentage of gross loans receivable was 1.46% at March 31, 2017 compared to 1.52% at June 30, 2016. Nonperforming assets were $4,923,000 at March 31, 2017 compared to $6,700,000 at June 30, 2016.

As of March 31, 2017, FFWC’s equity-to-assets ratio was 10.21% compared to 10.98% at June 30, 2016. Total assets at March 31, 2017 were $355,186,000 compared to $340,987,000 at June 30, 2016. Shareholders’ equity was $36,272,000 at March 31, 2017 compared to $37,449,000 at June 30, 2016. Crossroads Bank exceeds all applicable regulatory requirements to be considered “well capitalized.”

During the quarter ended March 31, 2017, the Corporation fully redeemed the remaining 2,250 shares of Fixed Rate Cumulative Preferred Stock, Series C for $2,250,000, plus accrued dividends.

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
March 31June 30
2017 2016
Unaudited
Assets
Cash and due from financial institutions$5,151,658 $4,031,546
Interest-bearing deposits in other financial institutions 17,320,033 6,188,392
Cash and cash equivalents 22,471,691 10,219,938
Securities available for sale 77,187,434 79,011,265
Loans receivable, net of allowance for loan losses of $3,470,186 at
March 31, 2017 and $3,557,769 at June 30, 2016 234,545,948 229,454,626
Loans held for sale 228,220 854,375
Federal Home Loan Bank stock, at cost 1,462,500 1,462,500
Accrued interest receivable 1,520,673 1,760,537
Premises and equipment, net 5,727,188 5,193,270
Mortgage servicing rights 813,206 660,784
Cash surrender value of life insurance 8,235,327 8,022,990
Goodwill 1,213,898 1,213,898
Repossessed Assets 477,431 2,062,708
Other assets 1,302,501 1,070,211
Total assets$355,186,017 $340,987,102
Liabilities and shareholders' equity
Deposits
Noninterest-bearing$28,648,144 $25,032,689
Interest-bearing 281,186,299 254,123,833
Total deposits 309,834,443 279,156,522
Borrowings 6,338,400 21,698,400
Accrued expenses and other liabilities 2,741,277 2,682,835
Total liabilities 318,914,120 303,537,757
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 - zero shares outstanding March 31, 2017 and 2,250 shares outstanding June 30, 2016, $0 liquidation preference at March 31, 2017 and $2,264,000 liquidation preference June 30, 2016 - 2,250,000
Common stock, $.01 par; 2,000,000 shares authorized;
Issued: 1,836,328; outstanding: 1,160,084 - March 31, 2017 and 1,156,084 - June 30, 2016 18,363 18,363
Additional paid-in capital 9,517,226 9,358,395
Retained earnings 36,376,682 34,053,094
Accumulated other comprehensive income 740,050 2,211,217
Treasury stock, at cost: 676,244 shares at March 31, 2017 and 680,244 shares at June 30, 2016 (10,380,424) (10,441,724)
Total shareholders' equity 36,271,897 37,449,345
Total liabilities and shareholders' equity $355,186,017 $340,987,102


FFW Corporation
Selected Financial Information
Consolidated Statement of Income
Three Months Ended March 31 Nine Months Ended March 31
2017 2016 2017 2016
UnauditedUnauditedUnauditedUnaudited
Interest and dividend income:
Loans, including fees$2,695,731$ 2,650,231 $8,124,376 $7,934,250
Taxable securities 310,051 328,266 925,478 963,111
Tax exempt securities 292,676 257,792 818,422 759,973
Other 45,705 7,714 62,152 18,103
Total interest and dividend income 3,344,163 3,244,003 9,930,428 9,675,437
Interest expense:
Deposits 401,748 318,559 1,157,843 931,942
Borrowings 22,438 40,738 84,701 111,381
Total interest expense 424,186 359,297 1,242,544 1,043,323
Net interest income 2,919,977 2,884,706 8,687,884 8,632,114
Provision for loan losses 50,000 80,000 293,000 200,000
Net interest income after provision for
loan losses 2,869,977 2,804,706 8,394,884 8,432,114
Noninterest income:
Net gains on sales of securities - - 120,409 -
Net gains on sales of loans 112,645 88,686 393,197 352,503
Net gains (losses) on fixed assets - - (1,712) (1,352)
Commission income 266,903 233,176 744,241 720,130
Service charges and fees 205,127 142,924 722,797 555,774
Earnings on life insurance 70,459 69,328 212,337 208,414
Income from REO - 240,152 647,115 912,603
Other 197,096 99,453 624,966 319,207
Total noninterest income 852,230 873,719 3,463,350 3,067,279
Noninterest expense:
Salaries and benefits 1,390,612 1,171,117 4,030,111 3,691,519
Occupancy and equipment 316,206 273,415 892,095 830,225
Professional 148,464 126,021 400,821 508,268
Marketing 88,503 44,443 276,874 160,635
Deposit insurance premium 31,521 61,092 98,264 177,712
Regulatory assessment 7,735 8,100 22,214 88,600
Correspondent bank charges 22,301 14,499 47,571 44,960
Data processing 129,748 112,205 381,948 320,795
Printing, postage and supplies 81,231 60,708 207,744 199,790
Expense on life insurance 23,424 21,913 70,535 65,739
Contribution expense 4,620 11,584 26,940 31,032
Expense on REO 25,686 298,587 703,615 945,025
Other 303,256 301,353 881,023 879,546
Total noninterest expense 2,573,307 2,505,037 8,039,755 7,943,846
Income before income taxes 1,148,900 1,173,388 3,818,479 3,555,547
Income tax expense 233,139 251,176 817,267 767,098
Net income $915,761 $ 922,212 $3,001,212 $2,788,449
Preferred stock dividends 29,563 40,625 85,813 121,875
Net income attributable to common shareholders$886,198 $ 881,587 $2,915,399 $2,666,574


FFW Corporation
Selected Financial Information
Key Balances and Ratios
Three Months Ended March 31 Nine Months Ended March 31
2017 2016 2017 2016
UnauditedUnauditedUnauditedUnaudited
Per common share data:
Earnings$0.76 $0.76 $2.51 $2.32
Diluted earnings$0.76 $0.76 $2.51 $2.32
Dividends paid$0.17 $0.15 $0.51 $0.45
Average shares issued and outstanding 1,160,084 1,155,535 1,159,617 1,148,193
Shares outstanding end of period 1,160,084 1,156,084 1,160,084 1,156,084
Supplemental data:
Net interest margin ** 3.56% 3.70% 3.56% 3.70%
Return on average assets *** 1.04% 1.09% 1.14% 1.11%
Return on average common equity *** 9.95% 10.56% 10.79% 10.93%
March 31June 30
2017 2016
Nonperforming assets *$4,923,361 $6,699,913
Repossessed assets$477,431 $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


Contact: Emily Boardman, Treasurer, at (260) 563-3185

Source:Crossroads Bank