SOURCE: FFW Corporation

August 20, 2010 08:14 ET

FFW Corporation Announces Earnings for the Year Ended June 30, 2010

WABASH, IN--(Marketwire - August 20, 2010) -  FFW Corporation (the "Corporation") (OTCBB: FFWC) (8/16/2010 Close: $12.50), parent corporation of Crossroads Bank, announced earnings for the year ended June 30, 2010. 

For the year ended June 30, 2010, the Corporation reported net income of $1,980,000 or $1.35 per common share. This is compared to a net loss of $2,387,000 or -$2.37 per common share for the year ended June 30, 2009. The net interest margin for the year ended June 30, 2010 was $9,909,000 compared to $9,968,000 for the year ended June 30, 2009. The provision for loan losses increased from $1,680,000 for the period ended June 30, 2009 to $1,830,000 for the period ended June 30, 2010. Total noninterest income (loss) was $2,744,000 for the year ended June 30, 2010 and ($5,202,000) for the year ended June 30, 2009. The period ended June 30, 2009 includes a non-cash impairment charge of $6,692,000 related to certain Federal National Mortgage Association ("Fannie Mae") preferred stocks. Noninterest expense increased from $7,418,000 for the year ended June 30, 2009 to $8,371,000 for the year ended June 30, 2010. 

The year ended June 30, 2010 represented a return on average common equity of 7.14%. Return on average common equity for the year ended June 30, 2009 was -12.57%. Return on average total assets for the year ended June 30, 2010 was 0.59% compared to -0.74% for the year ended June 30, 2009. 

The allowance for loan losses as a percentage of gross loans receivable was 1.57% at June 30, 2010 and 1.53% at June 30, 2009. Nonperforming assets were $8.7 million at June 30, 2010 and $4.8 million at June 30, 2009.

As of June 30, 2010, FFWC's equity-to-assets ratio was 8.62% compared to 8.26% at June 30, 2009. Total assets at June 30, 2010 were $334.0 million compared to $332.6 million at June 30, 2009. Shareholders' equity was $28.8 million at June 30, 2010 compared to $27.5 million at June 30, 2009. 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 four Indiana banking centers located in Columbia City, North Manchester, 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 Bulletin Board under the symbol "FFWC.OB." Our website address is www.crossroadsbanking.com.

FFW Corporation  
Selected Financial Information  
Consolidated Balance Sheet  
    June 30       June 30  
    2010       2009  
    Unaudited          
Assets                  
Cash and due from financial institutions   $ 3,229,138       $ 3,830,526  
Interest-earning deposits in other financial institutions     7,386,372         7,284,371  
  Cash and cash equivalents     10,615,510         11,114,897  
                   
Securities available for sale     76,716,796         66,273,786  
Loans receivable, net of allowance for loan losses of $3,582,476 at June 30, 2010 and $3,605,204 at June 30, 2009     224,135,086         232,378,508  
Loans held for sale     40,000         1,049,519  
Federal Home Loan Bank stock, at cost     3,627,100         3,627,100  
Accrued interest receivable     1,645,286         1,425,374  
Premises and equipment, net     3,889,487         4,096,623  
Mortgage servicing rights     375,052         392,839  
Cash surrender value of life insurance     6,374,995         6,094,321  
Goodwill     1,213,898         1,213,898  
Deferred tax asset     2,306,914         2,357,544  
Other assets     3,092,930         2,607,243  
  Total assets   $ 334,033,054       $ 332,631,652  
                   
Liabilities and shareholders' equity                  
Deposits                  
  Noninterest-bearing deposits   $ 16,278,993       $ 12,924,010  
  Interest-bearing deposits     262,550,500         248,643,498  
    Total deposits     278,829,493         261,567,508  
                   
Borrowings     24,699,557         38,098,030  
Securites purchased not settled     -         2,066,806  
Accrued expenses and other liabilities     1,700,121         3,411,068  
    Total liabilities     305,229,171         305,143,412  
                   
Shareholders' equity                  
Preferred stock, $.01 par; $1,000 liquidation value per share; 500,000 shares authorized;                  
                   
  Series A, 5% Fixed Rate Cumulative Perpetual Preferred Stock - 7,289 shares outstanding June 30, 2010, $7,289,000 liquidation preference     7,004,155         6,922,771  
  Series B, 9% Fixed Rate Cumulative Perpetual Preferred Stock - 364 shares outstanding June 30, 2010, $364,000 liquidation preference       394,045         402,629  
Common stock, $.01 par; 2,000,000 shares authorized; issued: 1,836,328 outstanding: 1,117,260 shares - June 30, 2010 and 1,112,260 shares - June 30, 2009     18,363         18,363  
Additional paid-in capital     9,440,356         9,448,627  
Retained earnings     22,880,556         22,351,652  
Accumulated other comprehensive income (loss)     104,080         (541,380 )
Treasury stock, at cost: 719,068 shares - June 30, 2010 and 724,068 shares - June 30, 2009     (11,037,672 )       (11,114,422 )
    Total shareholders' equity     28,803,883         27,488,240  
                   
    Total liabilities and shareholders' equity   $ 334,033,054       $ 332,631,652  
Consolidated Statement of Income  
             
    Three Months Ended June 30     Twelve Months Ended June 30  
    2010     2009     2010     2009  
    Unaudited     Unaudited     Unaudited        
Interest and dividend income:                                
  Loans, including fees   $ 3,250,464     $ 3,610,537     $ 13,725,393     $ 15,126,609  
  Taxable securities     638,978       591,655       2,568,076       2,453,482  
  Tax exempt securities     164,819       179,786       682,099       731,171  
  Other     5,684       5,300       24,976       38,750  
      Total interest and dividend income     4,059,945       4,387,278       17,000,544       18,350,012  
                                 
Interest expense:                                
  Deposits     1,344,447       1,475,880       5,548,022       6,478,769  
  Borrowings     280,145       459,203       1,543,180       1,902,819  
      Total interest expense     1,624,592       1,935,083       7,091,202       8,381,588  
                                 
Net interest income     2,435,353       2,452,195       9,909,342       9,968,424  
                                 
Provision for loan losses     210,000       451,000       1,830,000       1,680,000  
                                 
Net interest income after provision for loan losses     2,225,353       2,001,195       8,079,342       8,288,424  
                                 
Noninterest income:                                
  Net gains (losses) on sales of securities     (39,543 )     -       429,360       (494,668 )
  Net gains on sales of loans     79,208       201,401       284,566       539,435  
  Net gains (losses) on fixed assets     6,500       (3,332 )     6,500       (3,232 )
  Other than temporary impairment on securities     (100,000 )     (556,140 )     (250,000 )     (7,248,140 )
  Commission income     163,539       132,651       584,273       551,205  
  Service charges and fees     229,973       376,596       1,135,202       1,021,482  
  Earnings on life insurance     71,082       68,762       280,674       292,313  
  Other     62,926       25,034       273,839       139,402  
    Total noninterest income (loss)     473,685       244,972       2,744,414       (5,202,203 )
                                 
Noninterest expense:                                
  Salaries and benefits     949,830       869,491       3,992,732       3,623,268  
  Occupancy and equipment     263,675       225,013       966,723       867,610  
  Professional     102,720       97,822       393,970       286,979  
  Marketing     36,578       44,153       135,711       158,035  
  Deposit insurance premium     118,244       387,880       469,235       541,755  
  Regulatory assessment     25,545       23,946       99,687       94,053  
  Correspondent bank charges     19,661       18,793       77,645       76,938  
  Data processing     385,215       168,846       828,431       557,655  
  Printing, postage and supplies     56,138       53,421       245,245       235,614  
  Expense on life insurance     16,694       14,445       66,775       74,635  
  Contribution expense     12,882       13,760       51,981       53,123  
  Other     226,604       183,699       1,042,603       848,278  
    Total noninterest expense     2,213,786       2,101,269       8,370,738       7,417,943  
                                 
Income (loss) before income taxes     485,252       144,898       2,453,018       (4,331,722 )
                                 
Income tax expense (benefit)     73,902       36,355       473,115       (1,945,065 )
                                 
Net income (loss)   $ 411,350     $ 108,543     $ 1,979,903     $ (2,386,657 )
Preferred stock dividends and discount accretion, net     117,503       117,503       470,010       248,245  
Net income (loss) attributable to common shareholders   $ 293,848     $ (8,960 )   $ 1,509,893     $ (2,634,902 )
                 
                 
        Three Months Ended June 30     Twelve Months Ended June 30  
        2010     2009     2010     2009  
        Unaudited     Unaudited     Unaudited        
Per common share data:                                
Earnings   $ 0.25     $ 0.00     $ 1.35     $ (2.37 )
Diluted earnings   $ 0.25     $ 0.00     $ 1.35     $ (2.37 )
Dividends paid   $ 0.22     $ 0.22     $ 0.88     $ 0.88  
Average shares issued and outstanding     1,117,260       1,112,260       1,114,397       1,111,433  
Shares outstanding end of period     1,117,260       1,112,260       1,117,260       11,112,260  
                                     
Supplemental data:                                
Net interest margin **     3.04 %     3.16 %     3.10 %     3.28 %
Return on average assets ***     0.48 %     0.16 %     0.59 %     -0.74 %
Return on average common equity ***     5.51 %     -0.18 %     7.14 %     -12.57 %
                                     
          June 30       June 30                  
          2010       2009                  
Nonperforming assets *   $ 8,694,798     $ 4,829,152                  
Repossessed assets   $ 1,230,635     $ 1,334,259                  
                                     
*   Includes non-accruing loans, accruing loans delinquent more than 90 days and foreclosed assets              
**   Yields reflected have not been computed on a tax equivalent basis                         
***   Annualized                                

Contact Information

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    Emily Boardman
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    260-563-3185