SOURCE: FFW Corporation

October 29, 2014 10:29 ET

FFW Corporation Announces 46% Increase in Earnings per Share

WABASH, IN--(Marketwired - Oct 29, 2014) -  FFW Corporation (the "Corporation") (OTCBB: FFWC) (10/28/14 Close: $22.00), parent corporation of Crossroads Bank, announced earnings for the quarter ended September 30, 2014.

For the three months ended September 30, 2014, the Corporation reported net income of $867,000 or $0.67 per common share compared to $638,000 or $0.46 per common share for the three months ended September 30, 2013. Net interest income for the three months ended September 30, 2014 was $2,810,000 compared to $2,560,000 for the three months ended September 30, 2013. The provision for loan losses was $180,000 for the periods ended September 30, 2014 and 2013. Total noninterest income was $956,000 for the three months ended September 30, 2014 compared to $606,000 for the three months ended September 30, 2013. Noninterest expense was $2,485,000 for the three months ended September 30, 2014 and $2,197,000 for the three months ended September 30, 2013. 

The three months ended September 30, 2014 represented a return on average common equity of 10.61% compared to 8.75% for the three months ended September 30, 2013. The three months ended September 30, 2014 represented a return on average assets of 1.01% compared to 0.75% for the three months ended September 30, 2013.

The allowance for loan losses as a percentage of gross loans receivable was 1.37% at September 30, 2014 compared to 1.29% at June 30, 2014. Nonperforming assets were $7,257,000 at September 30, 2014 compared to $7,084,000 at June 30, 2014.

As of September 30, 2014, FFWC's equity-to-assets ratio was 10.26% compared to 10.08% at June 30, 2014. Total assets at September 30, 2014 were $338,829,000 compared to $335,496,000 at June 30, 2014. Shareholders' equity was $34,752,000 at September 30, 2014 compared to $33,830,000 at June 30, 2014. Crossroads Bank exceeds all applicable regulatory requirements to be considered "well capitalized." 

On October 27, 2014 the Corporation redeemed 1,500 shares of Fixed Rate Cumulative Preferred Stock, Series A ("Series A Preferred Stock"), for $1,500,000, plus accrued dividends. The Series A Preferred Stock was paying dividends at 9% per year. Following the redemption, the Corporation has outstanding 1,039 shares of its Series A Preferred Stock, 364 shares of its Fixed Rate Cumulative Preferred Stock, Series B, which pays dividends at 9% per year, and 3,250 shares of its Fixed Rate Cumulative Preferred Stock, Series C, which currently pays annual dividends of 5%. 

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 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.

 
 
FFW Corporation
Selected Financial Information
 
Consolidated Balance Sheet
 
    September 30     June 30  
    2014     2014  
    Unaudited        
Assets                
Cash and due from financial institutions   $ 5,557,469     $ 6,729,693  
Interest-earning deposits in other financial institutions     8,133,012       5,706,136  
  Cash and cash equivalents     13,690,481       12,435,829  
                 
Securities available for sale     82,275,138       83,751,842  
Loans receivable, net of allowance for loan losses of $3,067,000 at September 30, 2014 and $2,851,000 at June 30, 2014     221,462,040       217,629,375  
Loans held for sale     -       286,800  
Federal Home Loan Bank stock, at cost     2,717,300       2,717,300  
Accrued interest receivable     1,838,279       1,769,840  
Premises and equipment, net     3,569,383       3,278,681  
Mortgage servicing rights     703,855       680,362  
Cash surrender value of life insurance     7,540,376       7,473,117  
Goodwill     1,213,898       1,213,898  
Deferred tax asset     673,343       1,058,029  
Other assets     3,144,760       3,200,907  
  Total assets   $ 338,828,853     $ 335,495,980  
                 
Liabilities and shareholders' equity                
Deposits                
  Noninterest-bearing deposits   $ 30,562,078     $ 29,462,977  
  Interest-bearing deposits     254,622,856       266,730,899  
    Total deposits     285,184,934       296,193,876  
                 
Borrowings     16,758,400       3,258,400  
Accrued expenses and other liabilities     2,133,696       2,213,560  
  Total liabilities     304,077,030       301,665,836  
                 
Shareholders' equity                
Preferred stock, $.01 par; $1,000 liquidation value per share; 500,000 shares authorized;                
  Series A, 9% Fixed Rate Cumulative Perpetual Preferred Stock - 2,539 shares outstanding September 30, 2014 and June 30, 2014, $2,568,000 liquidation preference September 30, 2014 and June 30, 2014     2,539,000       2,539,000  
  Series B, 9% Fixed Rate Cumulative Perpetual Preferred Stock - 364 shares outstanding September 30, 2014 and June 30, 2014, $368,000 liquidation preference September 30, 2014 and June 30, 2014     364,000       364,000  
  Series C, 5% Fixed Rate Cumulative Perpetual Preferred Stock - 3,250 shares outstanding September 30, 2014 and June 30, 2014, $3,271,000 liquidation preference September 30, 2014 and June 30, 2014     3,250,000       3,250,000  
Common stock, $.01 par; 2,000,000 shares authorized; issued shares: 1,836,328 outstanding shares: 1,132,084 at September 30, 2014 and June 30, 2014     18,363       18,363  
Additional paid-in capital     9,457,942       9,446,708  
Retained earnings     29,506,876       28,870,083  
Accumulated other comprehensive income     425,766       152,114  
Treasury stock, at cost: 704,244 shares at September 30, 2014 and June 30, 2014     (10,810,124 )     (10,810,124 )
  Total shareholders' equity     34,751,823       33,830,144  
                 
  Total liabilities and shareholders' equity   $ 338,828,853     $ 335,495,980  
                   
                   
                   
FFW Corporation
Selected Financial Information
 
Consolidated Statement of Income
 
    Three Months Ended
September 30
    2014   2013
    Unaudited   Unaudited
Interest and dividend income:            
  Loans, including fees   $ 2,607,405   $ 2,655,870
  Taxable securities     326,427     347,313
  Tax exempt securities     315,429     298,478
  Other     6,440     9,066
    Total interest and dividend income     3,255,701     3,310,727
             
Interest expense:            
  Deposits     407,705     705,113
  Borrowings     37,513     45,309
    Total interest expense     445,218     750,422
             
Net interest income     2,810,483     2,560,305
             
Provision for loan losses     180,000     180,000
             
Net interest income after provision for            
loan losses     2,630,483     2,380,305
             
Noninterest income:            
  Net gains on sales of securities     26,426     -
  Net gains on sales of loans     106,934     43,633
  Net gains (losses) on fixed assets     -     -
  Other than temporary impairment on securities     -     -
  Commission income     244,385     211,458
  Service charges and fees     256,413     263,892
  Earnings on life insurance     67,259     67,221
  Other     254,544     19,338
    Total noninterest income     955,961     605,542
             
Noninterest expense:            
  Salaries and benefits     1,219,902     1,098,801
  Occupancy and equipment     244,147     248,474
  Professional     136,397     167,661
  Marketing     35,630     41,874
  Deposit insurance premium     53,200     79,208
  Regulatory assessment     25,985     28,885
  Correspondent bank charges     16,108     21,553
  Data processing     153,731     169,686
  Printing, postage and supplies     52,641     55,365
  Expense on life insurance     20,315     18,818
  Contribution expense     15,136     12,821
  Other     511,840     254,153
    Total noninterest expense     2,485,032     2,197,299
             
Income before income taxes     1,101,412     788,548
             
Income tax expense     234,145     150,670
             
Net income   $ 867,267   $ 637,878
Preferred stock dividends and discount accretion, net     105,943     117,504
Net income attributable to common shareholders   $ 761,324   $ 520,374
             
             
             
FFW Corporation
Selected Financial Information
 
Key Balances and Ratios
 
    Three Months Ended
September 30
 
    2014     2013  
    Unaudited     Unaudited  
Per common share data:                
Earnings   $ 0.67     $ 0.46  
Diluted earnings   $ 0.67     $ 0.46  
Dividends paid   $ 0.11     $ 0.11  
Average shares issued and outstanding     1,132,084       1,132,084  
Shares outstanding end of period     1,132,084       1,132,084  
                 
Supplemental data:                
Net interest margin **     3.51 %     3.17 %
Return on average assets ***     1.01 %     0.75 %
Return on average common equity ***     10.61 %     8.75 %
             
    September 30     June 30  
    2014     2014  
Nonperforming assets *   $ 7,257,302     $ 7,084,099  
Repossessed assets   $ 2,158,228     $ 2,003,040  
   
* 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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