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

WABASH, Ind., Jan. 24, 2018 (GLOBE NEWSWIRE) -- FFW Corporation (the “Corporation”) (OTC PINK:FFWC) (1/23/18 Close: $42.20), parent corporation of Crossroads Bank (the “Bank”), announced earnings for the quarter and year to date ending December 31, 2017.

For the three months ended December 31, 2017, the Corporation reported net income of $1,121,000 or $0.96 per common share compared to $1,048,000 or $0.88 per common share for the three months ended December 31, 2016. Net interest income for the three months ended December 31, 2017 was $3,243,000 compared to $2,861,000 for the three months ended December 31, 2016. The provision for loan losses was $88,000 for the three months ended December 31, 2017 and $50,000 for the three months ended December 31, 2016. Total noninterest income was $823,000 for the three months ended December 31, 2017 compared to $1,200,000 for the three months ended December 31, 2016. Noninterest expense was $2,616,000 for the three months ended December 31, 2017 and $2,672,000 for the three months ended December 31, 2016.

For the six months ended December 31, 2017, the Corporation reported net income of $2,542,000 or $2.18 per common share compared to $2,085,000 or $1.75 per common share for the six months ended December 31, 2016. Net interest income for the six months ended December 31, 2017 was $6,603,000 compared to $5,768,000 for the six months ended December 31, 2016. The Company recognized a negative provision for loan losses of ($231,000) for the six months ended December 31, 2017 due to a significant recovery of a previously charged-off commercial loan. This is compared to a provision for loan losses of $243,000 for the three months ended December 31, 2016. Total noninterest income was $1,610,000 for the six months ended December 31, 2017 compared to $2,611,000 for the six months ended December 31, 2016. Noninterest expense was $5,189,000 for the six months ended December 31, 2017 and $5,466,000 for the six months ended December 31, 2016.

The three and six months ended December 31, 2017 represented a return on average common equity of 11.25% and 12.87%, respectively, compared to 11.25% and 11.20% for the three and six month periods ended December 31, 2016. The three and six months ended December 31, 2017 represented a return on average assets of 1.17% and 1.34%, respectively, compared to 1.18% and 1.19%, for the three and six month periods ended December 31, 2016.

The allowance for loan losses as a percentage of gross loans receivable was 1.37% at December 31, 2017 compared to 1.43% at June 30, 2017. Nonperforming assets were $3,981,000 at December 31, 2017 compared to $4,594,000 at June 30, 2017.

As of December 31, 2017, FFWC’s equity-to-assets ratio was 10.62% compared to 10.29% at June 30, 2017. Total assets at December 31, 2017 were $372,699,000 compared to $366,902,000 at June 30, 2017. Shareholders’ equity was $39,566,000 at December 31, 2017 compared to $37,750,000 at June 30, 2017. Crossroads Bank exceeds all applicable regulatory requirements to be considered “well capitalized.”

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 Fishers, 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
December 31June 30
20172017
Unaudited
Assets
Cash and due from financial institutions$4,254,526 $5,101,230
Interest-bearing deposits in other financial institutions 15,156,052 15,448,903
Cash and cash equivalents 19,410,578 20,550,133
Securities available for sale 78,601,617 79,432,914
Loans receivable, net of allowance for loan losses of $3,497,006 at
December 31, 2017 and $3,311,767 at June 30, 2017 252,016,213 244,921,657
Loans held for sale 631,397 847,000
Federal Home Loan Bank stock, at cost 1,462,500 1,462,500
Accrued interest receivable 1,943,089 1,785,609
Premises and equipment, net 6,097,189 5,635,850
Mortgage servicing rights 821,113 814,426
Cash surrender value of life insurance 8,447,823 8,306,618
Goodwill 1,213,898 1,213,898
Repossessed Assets 511,400 852,810
Other assets 1,542,022 1,078,552
Total assets$ 372,698,839 $ 366,901,967
Liabilities and shareholders' equity
Deposits
Noninterest-bearing$30,681,298 $29,173,951
Interest-bearing 295,685,124 293,300,914
Total deposits 326,366,422 322,474,865
Borrowings 4,000,000 4,338,400
Accrued expenses and other liabilities 2,766,795 2,338,360
Total liabilities 333,133,217 329,151,625
Shareholders' equity
Common stock, $.01 par; 2,000,000 shares authorized;
Issued: 1,836,328; outstanding: 1,165,980 - December 31, 2017 and 1,160,084 - June 30, 2017 18,363 18,363
Additional paid-in capital 9,543,264 9,552,881
Retained earnings 39,272,639 37,174,079
Accumulated other comprehensive income 1,021,276 1,385,443
Treasury stock, at cost: 670,348 shares at December 31, 2017 and 676,244 shares at June 30, 2017 (10,289,920) (10,380,424)
Total shareholders' equity 39,565,622 37,750,342
Total liabilities and shareholders' equity $ 372,698,839 $ 366,901,967


FFW Corporation
Selected Financial Information
Consolidated Statement of Income
Three Months Ended December 31Six Months Ended December 31
2017201620172016
UnauditedUnauditedUnauditedUnaudited
Interest and dividend income:
Loans, including fees$3,050,105$2,696,618$6,210,121 $5,428,645
Taxable securities 287,146 306,037 576,697 615,427
Tax exempt securities 333,801 269,413 654,001 525,746
Other 62,781 9,007 121,373 16,447
Total interest and dividend income 3,733,833 3,281,075 7,562,192 6,586,265
Interest expense:
Deposits 475,094 395,163 925,703 756,095
Borrowings 16,077 24,434 33,335 62,263
Total interest expense 491,171 419,597 959,038 818,358
Net interest income 3,242,662 2,861,478 6,603,154 5,767,907
Provision for loan losses 88,000 50,000 (231,000) 243,000
Net interest income after provision for
loan losses 3,154,662 2,811,478 6,834,154 5,524,907
Noninterest income:
Net gains on sales of securities - - - 120,409
Net gains on sales of loans 85,760 83,245 198,433 280,552
Net gains (losses) on fixed assets - - - (1,712)
Commission income 230,167 235,363 458,520 477,338
Service charges and fees 203,357 302,935 413,400 517,670
Earnings on life insurance 69,341 71,174 141,205 141,878
Income from REO - 219,800 - 647,115
Other 234,454 287,218 398,789 427,870
Total noninterest income 823,079 1,199,735 1,610,347 2,611,120
Noninterest expense:
Salaries and benefits 1,448,249 1,329,381 2,885,875 2,639,499
Occupancy and equipment 319,923 298,284 608,677 575,889
Professional 101,857 104,711 204,080 252,357
Marketing 102,542 111,107 199,403 188,371
Deposit insurance premium 32,091 5,993 65,669 66,743
Regulatory assessment 5,656 7,167 11,313 14,479
Correspondent bank charges 18,453 9,624 33,799 25,270
Data processing 177,015 126,556 351,821 252,200
Printing, postage and supplies 61,796 58,303 122,579 126,513
Expense on life insurance - 23,489 (3,612) 47,111
Contribution expense 4,050 6,605 44,950 22,320
Expense on REO 32,168 296,969 48,060 677,929
Other 311,888 293,816 616,294 577,767
Total noninterest expense 2,615,688 2,672,005 5,188,908 5,466,448
Income before income taxes 1,362,053 1,339,208 3,255,593 2,669,579
Income tax expense 240,569 291,453 713,957 584,128
Net income $ 1,121,484 $ 1,047,755 $ 2,541,636 $ 2,085,451
Preferred stock dividends - 28,125 - 56,250
Net income attributable to common shareholders$ 1,121,484 $ 1,019,630 $ 2,541,636 $ 2,029,201


FFW Corporation
Selected Financial Information
Key Balances and Ratios
Three Months Ended December 31Six Months Ended December 31
2017201620172016
UnauditedUnauditedUnauditedUnaudited
Per common share data:
Earnings$0.96 $0.88 $2.18 $1.75
Diluted earnings$0.96 $0.88 $2.18 $1.75
Dividends paid$0.19 $0.17 $0.38 $0.34
Average shares issued and outstanding1,165,980 1,160,301 1,165,980 1,159,388
Shares outstanding end of period1,165,980 1,160,084 1,165,980 1,160,084
Supplemental data:
Net interest margin **3.63%3.49%3.74%3.56%
Return on average assets ***1.17%1.18%1.34%1.19%
Return on average common equity ***11.25%11.25%12.87%11.20%
December 31June 30
20172017
Nonperforming assets *$3,981,407 $4,594,296
Repossessed assets$511,400 $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