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FFW Corporation Announces Earnings for the Fiscal Year Ended June 30, 2017

WABASH, Ind., Aug. 15, 2017 (GLOBE NEWSWIRE) -- FFW Corporation (the “Corporation”) (OTC PINK:FFWC) (8/14/17 Close: $37.50), parent corporation of Crossroads Bank (the “Bank”), announced earnings for the three and twelve months ended June 30, 2017.

For the three months ended June 30, 2017, the Corporation reported net income of $1,018,000 or $0.88 per common share compared to $1,002,000 or $0.83 per common share for the three months ended June 30, 2016. Net interest income for the three months ended June 30, 2017 was $3,011,000 compared to $2,890,000 for the three months ended June 30, 2016. The provision for loan losses was $50,000 for the three months ended June 30, 2017 and $80,000 for the three months ended June 30, 2016. Total noninterest income was $707,000 for the three months ended June 30, 2017 compared to $1,098,000 for the three months ended June 30, 2016. Noninterest expense was $2,412,000 for the three months ended June 30, 2017 and $2,604,000 for the three months ended June 30, 2016.

For the twelve months ended June 30, 2017, the Corporation reported net income of $4,019,000 or $3.39 per common share compared to $3,790,000 or $3.15 per common share for the twelve months ended June 30, 2016. Net interest income for the twelve months ended June 30, 2017 was $11,699,000 compared to $11,523,000 for the twelve months ended June 30, 2016. The provision for loan losses was $343,000 for the twelve months ended June 30, 2017 and $280,000 for the twelve months ended June 30, 2016. Total noninterest income was $4,170,000 for the twelve months ended June 30, 2017 compared to $4,165,000 for the twelve months ended June 30, 2016. Noninterest expense was $10,452,000 for the twelve months ended June 30, 2017 and $10,548,000 for the twelve months ended June 30, 2016.

The three and twelve months ended June 30, 2017 represented a return on average common equity of 10.92% and 10.82%, respectively, compared to 11.19% and 11.00% for the three and twelve month periods ended June 30, 2016. The three and twelve months ended June 30, 2017 represented a return on average assets of 1.11% and 1.13%, respectively, compared to 1.18% and 1.13%, for the three and twelve month periods ended June 30, 2016.

The allowance for loan losses as a percentage of gross loans receivable was 1.33% at June 30, 2017 compared to 1.52% at June 30, 2016. Nonperforming assets were $4,594,000 at June 30, 2017 compared to $6,700,000 at June 30, 2016.

As of June 30, 2017, FFWC’s equity-to-assets ratio was 10.29% compared to 10.98% at June 30, 2016. Total assets at June 30, 2017 were $366,902,000 compared to $340,987,000 at June 30, 2016. Shareholders’ equity was $37,750,000 at June 30, 2017 compared to $37,449,000 at June 30, 2016. Crossroads Bank exceeds all applicable regulatory requirements to be considered “well capitalized.”

During the year ended June 30, 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
June 30June 30
2017 2016
Unaudited
Assets
Cash and due from financial institutions$5,101,230 $4,031,546
Interest-bearing deposits in other financial institutions 15,448,903 6,188,392
Cash and cash equivalents 20,550,133 10,219,938
Securities available for sale 79,432,914 79,011,265
Loans receivable, net of allowance for loan losses of $3,311,767 at
June 30, 2017 and $3,557,769 at June 30, 2016 244,921,657 229,454,626
Loans held for sale 847,000 854,375
Federal Home Loan Bank stock, at cost 1,462,500 1,462,500
Accrued interest receivable 1,785,609 1,760,537
Premises and equipment, net 5,635,850 5,193,270
Mortgage servicing rights 814,426 660,784
Cash surrender value of life insurance 8,306,618 8,022,990
Goodwill 1,213,898 1,213,898
Repossessed Assets 852,810 2,062,708
Other assets 1,078,552 1,070,211
Total assets$366,901,967 $340,987,102
Liabilities and shareholders' equity
Deposits
Noninterest-bearing$29,173,951 $25,032,689
Interest-bearing 293,300,914 254,123,833
Total deposits 322,474,865 279,156,522
Borrowings 4,338,400 21,698,400
Accrued expenses and other liabilities 2,338,360 2,682,835
Total liabilities 329,151,625 303,537,757
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 - no shares outstanding June 30, 2017 and 2,250 shares outstanding June 30, 2016, $0 liquidation preference at June 30, 2017 and $2,264,000 liquidation preference June 30, 2016 0 2,250,000
Common stock, $.01 par; 2,000,000 shares authorized;
Issued: 1,836,328; outstanding: 1,160,084 - June 30, 2017 and 1,156,084 - June 30, 2016 18,363 18,363
Additional paid-in capital 9,552,881 9,358,395
Retained earnings 37,174,079 34,053,094
Accumulated other comprehensive income 1,385,443 2,211,217
Treasury stock, at cost: 676,244 shares at June 30, 2017 and 680,244 shares at June 30, 2016 (10,380,424) (10,441,724)
Total shareholders' equity 37,750,342 37,449,345
Total liabilities and shareholders' equity $366,901,967 $340,987,102


FFW Corporation
Selected Financial Information
Consolidated Statement of Income
Three Months Ended June 30Twelve Months Ended June 30
2017 2016 2017 2016
Unaudited Unaudited
Interest and dividend income:
Loans, including fees$2,794,553$2,680,532 $10,918,929 $10,614,782
Taxable securities 303,198 327,335 1,228,676 1,290,446
Tax exempt securities 309,588 256,027 1,128,010 1,016,000
Other 51,942 6,842 114,094 24,945
Total interest and dividend income 3,459,281 3,270,736 13,389,709 12,946,173
Interest expense:
Deposits 430,970 341,444 1,588,813 1,273,386
Borrowings 17,685 38,853 102,386 150,234
Total interest expense 448,655 380,297 1,691,199 1,423,620
Net interest income 3,010,626 2,890,439 11,698,510 11,522,553
Provision for loan losses 50,000 80,000 343,000 280,000
Net interest income after provision for
loan losses 2,960,626 2,810,439 11,355,510 11,242,553
Noninterest income:
Net gains on sales of securities - 50,000 120,409 50,000
Net gains on sales of loans 117,492 165,251 510,689 517,754
Net gains (losses) on fixed assets - (844) (1,712) (2,196)
Commission income 235,918 251,586 980,159 971,716
Service charges and fees 208,044 143,201 930,841 698,975
Earnings on life insurance 71,290 70,002 283,627 278,416
Income from REO - 318,261 647,115 1,230,864
Other 74,220 100,631 699,186 419,838
Total noninterest income 706,964 1,098,088 4,170,314 4,165,367
Noninterest expense:
Salaries and benefits 1,342,811 1,305,066 5,372,922 4,996,585
Occupancy and equipment 307,065 264,248 1,199,160 1,094,473
Professional 104,175 144,635 504,996 652,903
Marketing 90,770 46,293 367,644 206,928
Deposit insurance premium 31,531 57,000 129,795 234,712
Regulatory assessment 7,167 (40,089) 29,381 48,511
Correspondent bank charges 17,038 14,078 64,609 59,038
Data processing 136,358 115,332 518,306 436,127
Printing, postage and supplies 62,636 59,362 270,380 259,152
Expense on life insurance 23,423 21,913 93,958 87,652
Contribution expense 2,900 10,155 29,840 41,187
Expense on REO 5,280 321,627 708,895 1,266,652
Other 280,977 284,558 1,162,000 1,164,104
Total noninterest expense 2,412,131 2,604,178 10,451,886 10,548,024
Income before income taxes 1,255,459 1,304,349 5,073,938 4,859,896
Income tax expense 237,645 302,527 1,054,912 1,069,625
Net income $1,017,814$1,001,822 $4,019,026 $3,790,271
Preferred stock dividends - 40,486 85,813 162,361
Net income attributable to common shareholders$1,017,814$961,336 $3,933,213 $3,627,910


FFW Corporation
Selected Financial Information
Key Balances and Ratios
Three Months Ended June 30Twelve Months Ended June 30
2017 2016 2017 2016
Unaudited Unaudited
Per common share data:
Earnings$0.88 $0.83 $3.39 $3.15
Diluted earnings$0.88 $0.83 $3.39 $3.15
Dividends paid$0.19 $0.15 $0.70 $0.60
Average shares issued and outstanding 1,160,084 1,156,084 1,159,733 1,150,155
Shares outstanding end of period 1,160,084 1,156,084 1,160,084 1,156,084
Supplemental data:
Net interest margin ** 3.52% 3.66% 3.55% 3.69%
Return on average assets *** 1.11% 1.18% 1.13% 1.13%
Return on average common equity *** 10.92% 11.19% 10.82% 11.00%
June 30June 30
2017 2016
Nonperforming assets *$4,594,296 $6,699,913
Repossessed assets$852,810 $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