SOURCE: FFW Corporation

October 28, 2015 10:40 ET

FFW Corporation Announces 10% Increase in Net Income for the Quarter Ended September 30, 2015

WABASH, IN--(Marketwired - October 28, 2015) - FFW Corporation (the "Corporation") (OTC PINK: FFWC) (10/27/15 Close: $24.30), parent corporation of Crossroads Bank, announced earnings for the three months ended September 30, 2015.

For the three months ended September 30, 2015, the Corporation reported net income of $950,000 or $0.80 per common share compared to $867,000 or $0.67 per common share for the three months ended September 30, 2014. Net interest income for the three months ended September 30, 2015 was $2,892,000 compared to $2,810,000 for the three months ended September 30, 2014. The provision for loan losses was $80,000 for the three month period ended September 30, 2015 and $180,000 for the three month period ended September 30, 2014. Total noninterest income was $1,166,000 for the three months ended September 30, 2015 compared to $956,000 for the three months ended September 30, 2014. Noninterest expense was $2,761,000 for the three months ended September 30, 2015 and $2,485,000 for the three months ended September 30, 2014.

The three months ended September 30, 2015 represented a return on average common equity of 11.53% compared to 10.61% for the three month period ended September 30, 2014. The three months ended September 30, 2015 represented a return on average assets of 1.14% compared to 1.01% for the three month period ended September 30, 2014.

The allowance for loan losses as a percentage of gross loans receivable was 1.55% at September 30, 2015 compared to 1.45% at June 30, 2015. Nonperforming assets were $5,796,000 at September 30, 2015 compared to $5,897,000 at June 30, 2015.

As of September 30, 2015, FFWC's equity-to-assets ratio was 10.57% compared to 10.08% at June 30, 2015. Total assets at September 30, 2015 were $329,732,000 compared to $334,056,000 at June 30, 2015. Shareholders' equity was $34,851,000 at September 30, 2015 compared to $33,682,000 at June 30, 2015. 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 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 
  
  September 30  June 30 
  2015  2015 
  Unaudited    
Assets        
Cash and due from financial institutions $4,137,044  $4,154,036 
Interest-bearing deposits in other financial institutions  5,963,208   4,988,002 
 Cash and cash equivalents  10,100,252   9,142,038 
         
Securities available for sale  76,782,187   77,922,871 
Loans receivable, net of allowance for loan losses of $3,487,112 at        
September 30, 2015 and $3,314,307 at June 30, 2015  221,090,996   225,521,274 
Loans held for sale  564,877   104,932 
Federal Home Loan Bank stock, at cost  1,462,500   1,462,500 
Accrued interest receivable  1,807,836   1,707,661 
Premises and equipment, net  4,954,137   5,044,265 
Mortgage servicing rights  732,317   754,076 
Cash surrender value of life insurance  7,813,554   7,744,574 
Goodwill  1,213,898   1,213,898 
Repossessed Assets  1,989,358   1,968,808 
Other assets  1,220,310   1,469,251 
 Total assets $329,732,222  $334,056,148 
         
Liabilities and shareholders' equity        
Deposits        
 Noninterest-bearing $29,960,886  $30,780,793 
 Interest-bearing  244,097,007   234,698,904 
  Total deposits  274,057,893   265,479,697 
         
Borrowings  18,558,400   32,558,400 
Accrued expenses and other liabilities  2,264,683   2,335,878 
 Total liabilities  294,880,976   300,373,975 
         
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 - 3,250 shares outstanding September 30, 2015 and June 30, 2015, $3,271,000 liquidation preference at September 30, 2015 and June 30, 2015  3,250,000   3,250,000 
Common stock, $.01 par; 2,000,000 shares authorized;        
 Issued: 1,836,328; outstanding: 1,142,084 - September 30, 2015 and June 30, 2015  18,363   18,363 
Additional paid-in capital  9,468,817   9,452,255 
Retained earnings  31,854,743   31,116,433 
Accumulated other comprehensive income  915,947   501,746 
Treasury stock, at cost: 694,244 shares at September 30, 2015 and June 30, 2015  (10,656,624)  (10,656,624)
 Total shareholders' equity  34,851,246   33,682,173 
         
 Total liabilities and shareholders' equity $329,732,222  $334,056,148 
          
 
FFW Corporation
Selected Financial Information
 
Consolidated Statement of Income
 
  Three Months Ended September 30
  2015 2014
  Unaudited Unaudited
Interest and dividend income:      
 Loans, including fees $2,658,734 $2,607,405
 Taxable securities  320,227  326,427
 Tax exempt securities  247,824  315,429
 Other  4,111  6,440
  Total interest and dividend income  3,230,896  3,255,701
       
Interest expense:      
 Deposits  297,113  407,705
 Borrowings  42,089  37,513
  Total interest expense  339,202  445,218
       
Net interest income  2,891,694  2,810,483
       
Provision for loan losses  80,000  180,000
       
Net interest income after provision for loan losses  2,811,694  2,630,483
       
Noninterest income:      
 Net gains on sales of securities  -  26,426
 Net gains on sales of loans  142,595  106,934
 Commission income  247,368  244,385
 Service charges and fees  177,008  256,413
 Earnings on life insurance  68,980  67,259
 Income from REO  405,109  174,553
 Other  125,209  79,991
  Total noninterest income  1,166,269  955,961
       
Noninterest expense:      
 Salaries and benefits  1,253,297  1,219,902
 Occupancy and equipment  282,513  244,147
 Professional  213,292  136,397
 Marketing  61,412  35,630
 Deposit insurance premium  58,583  53,200
 Regulatory assessment  39,000  25,985
 Correspondent bank charges  14,317  16,108
 Data processing  100,398  153,731
 Printing, postage and supplies  72,817  52,641
 Expense on life insurance  21,913  20,315
 Contribution expense  9,388  15,136
 Expense on REO  338,712  236,921
 Other  295,439  274,919
  Total noninterest expense  2,761,081  2,485,032
       
Income before income taxes  1,216,882  1,101,412
       
Income tax expense  266,633  234,145
       
Net income $950,249 $867,267
Preferred stock dividends  40,625  105,943
Net income attributable to common shareholders $ 909,624  $761,324
       
 
FFW Corporation
Selected Financial Information
 
Key Balances and Ratios
  Three Months Ended September 30
  2015 2014
  Unaudited Unaudited
Per common share data:    
Earnings $0.80 $0.67
Diluted earnings $0.80 $0.67
Dividends paid $0.15 $0.11
Average shares issued and outstanding 1,142,084 1,132,084
Shares outstanding end of period 1,142,084 1,132,084
     
Supplemental data:    
Net interest margin ** 3.73% 3.51%
Return on average assets *** 1.14% 1.01%
Return on average common equity *** 11.53% 10.61%
     
  September 30 June 30
  2015 2015
Nonperforming assets * $5,795,604 $5,896,625
Repossessed assets $1,989,358 $1,968,808
     
*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 Information

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    Treasurer
    260-563-3185