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FFW Corporation Announces First Quarter Earnings and Stock Repurchase Program

WABASH, Ind., Oct. 25, 2017 (GLOBE NEWSWIRE) -- FFW Corporation (the “Corporation”) (OTC PINK:FFWC) (10/24/17 Close: $38.50), parent corporation of Crossroads Bank (the “Bank”), announced first quarter earnings and stock repurchase program.

For the three months ended September 30, 2017, the Corporation reported net income of $1,420,000 or $1.22 per common share compared to $1,038,000 or $0.87 per common share for the three months ended September 30, 2016. Net interest income for the three months ended September 30, 2017 was $3,360,000 compared to $2,906,000 for the three months ended September 30, 2016. The Company recognized a negative provision for loan losses of ($319,000) for the three months ended September 30, 2017 due to a significant recovery of a previously charged-off commercial loan. This is compared to a provision for loan losses of $193,000 for the three months ended September 30, 2016. Total noninterest income was $787,000 for the three months ended September 30, 2017 compared to $1,411,000 for the three months ended September 30, 2016. Noninterest expense was $2,573,000 for the three months ended September 30, 2017 and $2,794,000 for the three months ended September 30, 2016.

The three months ended September 30, 2017 represented a return on average common equity of 14.53% compared to 11.15% for the three month period ended September 30, 2016. The three months ended September 30, 2017 represented a return on average assets of 1.52% compared to 1.20% for the three month period ended September 30, 2016.

The allowance for loan losses as a percentage of gross loans receivable was 1.37% at September 30, 2017 compared to 1.43% at June 30, 2017. Nonperforming assets were $4,520,000 at September 30, 2017 compared to $4,594,000 at June 30, 2017.

As of September 30, 2017, FFWC’s equity-to-assets ratio was 10.45% compared to 10.29% at June 30, 2017. Total assets at September 30, 2017 were $372,343,000 compared to $366,902,000 at June 30, 2017. Shareholders’ equity was $38,905,000 at September 30, 2017 compared to $37,750,000 at June 30, 2017. Crossroads Bank exceeds all applicable regulatory requirements to be considered “well capitalized.”

The Corporation also announced today that its Board of Directors has approved the repurchase, of up to 10% of the Corporation's outstanding shares of common stock, without par value ("Common Stock"), or 116,598 of such shares. These purchases may be made from time to time on the open market, and the actual number and value of shares which are repurchased will be at the discretion of management. The Corporation may suspend or discontinue repurchases at any time. Repurchases may begin as early as November 1, 2017.

Forward Looking Statements

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 necessarily 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.

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.



FFW Corporation
Selected Financial Information
Consolidated Balance Sheet
September 30June 30
2017 2017
Unaudited
Assets
Cash and due from financial institutions$ 4,376,213 $ 5,101,230
Interest-bearing deposits in other financial institutions 18,282,486 15,448,903
Cash and cash equivalents 22,658,699 20,550,133
Securities available for sale 80,108,055 79,432,914
Loans receivable, net of allowance for loan losses of $3,439,945 at
September 30, 2017 and $3,311,767 at June 30, 2017 247,851,551 244,921,657
Loans held for sale 55,000 847,000
Federal Home Loan Bank stock, at cost 1,462,500 1,462,500
Accrued interest receivable 1,907,959 1,785,609
Premises and equipment, net 6,091,451 5,635,850
Mortgage servicing rights 816,873 814,426
Cash surrender value of life insurance 8,378,482 8,306,618
Goodwill 1,213,898 1,213,898
Repossessed Assets 805,710 852,810
Other assets 992,763 1,078,552
Total assets$ 372,342,941 $ 366,901,967
Liabilities and shareholders' equity
Deposits
Noninterest-bearing $ 29,497,884 $ 29,173,951
Interest-bearing 296,725,379 293,300,914
Total deposits 326,223,263 322,474,865
Borrowings 4,169,200 4,338,400
Accrued expenses and other liabilities 3,045,597 2,338,360
Total liabilities 333,438,060 329,151,625
Shareholders' equity
Common stock, $.01 par; 2,000,000 shares authorized;
Issued: 1,836,328; outstanding: 1,165,980 - September 30, 2017 and 1,160,084 - June 30, 2017 18,363 18,363
Additional paid-in capital 9,502,821 9,552,881
Retained earnings 38,372,693 37,174,079
Accumulated other comprehensive income 1,300,924 1,385,443
Treasury stock, at cost: 670,348 shares at September 30, 2017 and 676,244 shares at June 30, 2017 (10,289,920) (10,380,424)
Total shareholders' equity 38,904,881 37,750,342
Total liabilities and shareholders' equity $ 372,342,941 $ 366,901,967

FFW Corporation
Selected Financial Information
Consolidated Statement of Income
Three Months Ended September 30
2017 2016
UnauditedUnaudited
Interest and dividend income:
Loans, including fees$ 3,160,016 $ 2,732,027
Taxable securities 289,551 309,390
Tax exempt securities 320,200 256,333
Other 58,592 7,440
Total interest and dividend income 3,828,359 3,305,190
Interest expense:
Deposits 450,609 360,932
Borrowings 17,258 37,829
Total interest expense 467,867 398,761
Net interest income 3,360,492 2,906,429
Provision for loan losses (319,000) 193,000
Net interest income after provision for
loan losses 3,679,492 2,713,429
Noninterest income:
Net gains on sales of securities - 120,409
Net gains on sales of loans 112,673 197,307
Net gains (losses) on fixed assets - (1,712)
Commission income 228,353 241,975
Service charges and fees 210,043 214,735
Earnings on life insurance 71,864 70,704
Income from REO - 427,315
Other 164,335 140,652
Total noninterest income 787,268 1,411,385
Noninterest expense:
Salaries and benefits 1,437,626 1,310,118
Occupancy and equipment 288,754 277,605
Professional 102,223 147,646
Marketing 96,861 77,264
Deposit insurance premium 33,578 60,750
Regulatory assessment 5,657 7,312
Correspondent bank charges 15,346 15,646
Data processing 174,806 125,644
Printing, postage and supplies 60,783 68,210
Expense on life insurance (3,612) 23,622
Contribution expense 40,900 15,715
Expense on REO 15,892 380,960
Other 304,406 283,951
Total noninterest expense 2,573,220 2,794,443
Income before income taxes 1,893,540 1,330,371
Income tax expense 473,388 292,675
Net income $ 1,420,152 $ 1,037,696
Preferred stock dividends - 28,125
Net income attributable to common shareholders $ 1,420,152 $ 1,009,571

FFW Corporation
Selected Financial Information
Key Balances and Ratios
Three Months Ended September 30
2017 2016
UnauditedUnaudited
Per common share data:
Earnings$1.22 $0.87
Diluted earnings$1.22 $0.87
Dividends paid$0.19 $0.17
Average shares issued and outstanding 1,165,980 1,158,475
Shares outstanding end of period 1,165,980 1,161,084
Supplemental data:
Net interest margin ** 3.85% 3.63%
Return on average assets *** 1.52% 1.20%
Return on average common equity *** 14.53% 11.15%
September 30June 30
2017 2017
Nonperforming assets *$4,519,500 $4,594,296
Repossessed assets$805,710 $852,810
*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