FFW Corporation Announces Earnings for the Fiscal Year Ended June 30, 2013

WABASH, IN--(Marketwired - Aug 16, 2013) -  FFW Corporation (the "Corporation") (OTCBB: FFWC) (8/15/2013 Close: $16.95), parent corporation of Crossroads Bank, announced earnings for the three and twelve months ended June 30, 2013. 

For the three months ended June 30, 2013, the Corporation reported net income of $698,000 or $0.52 per common share compared to net loss of ($1,536,000) or ($1.47) per common share for the three months ended June 30, 2012. The net interest margin for the three months ended June 30, 2013 was $2,432,000 compared to $2,177,000 for the three months ended June 30, 2012. The provision for loan losses decreased from $3,900,000 for the period ended June 30, 2012 to $210,000 for the period ended June 30, 2013. Total noninterest income was $818,000 for the three months ended June 30, 2013 compared to $838,000 for the three months ended June 30, 2012. Noninterest expense was $2,187,000 for the three months ended June 30, 2013 and $2,048,000 for the three months ended June 30, 2012. 

For the twelve months ended June 30, 2013, the Corporation reported net income of $2,729,000 or $2.01 per common share compared to $593,000 or $0.11 per common share for the twelve months ended June 30, 2012. The net interest margin for the twelve months ended June 30, 2013 was $9,413,000 compared to $9,365,000 for the twelve months ended June 30, 2012. The provision for loan losses decreased from $4,800,000 for the period ended June 30, 2012 to $840,000 for the period ended June 30, 2013. Total noninterest income was $3,284,000 for the twelve months ended June 30, 2013 compared to $3,339,000 for the twelve months ended June 30, 2012. Noninterest expense was $8,617,000 for the twelve months ended June 30, 2013 and $8,252,000 for the twelve months ended June 30, 2012.

The three and twelve months ended June 30, 2013 represented a return on average common equity of 9.17% and 9.14%, respectively, compared to -26.25% and 0.51% for the three and twelve month periods ended June 30, 2012. The three and twelve months ended June 30, 2013 represented a return on average assets of 0.82% and 0.81%, respectively, compared to -1.82% and 0.18% for the three and twelve month periods ended June 30, 2012.

The allowance for loan losses as a percentage of gross loans receivable was 1.43% at June 30, 2013 compared to 1.68% at June 30, 2012. Nonperforming assets were $9,794,000 at June 30, 2013 compared to $10,234,000 at June 30, 2012.

As of June 30, 2013, FFWC's equity-to-assets ratio was 9.27% compared to 9.34% at June 30, 2012. Total assets at June 30, 2013 were $337,818,000 compared to $329,042,000 at June 30, 2012. Shareholders' equity was $31,322,000 at June 30, 2013 compared to $30,746,000 at June 30, 2012. 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.

FFW Corporation
Selected Financial Information
Consolidated Balance Sheet
				June 30				June 30
				2013				2012
				Unaudited
Assets
Cash and due from financial institutions				$	4,353,619			$	3,478,709
Interest-earning deposits in other financial institutions					11,647,346				13,360,765
	Cash and cash equivalents				16,000,965				16,839,474
Securities available for sale					85,122,447				83,665,458
Loans receivable, net of allowance for loan losses of $3,132,000 at June 30, 2013 and $3,520,000 at June 30, 2012					215,347,079				205,934,060
Loans held for sale					113,600				337,000
Federal Home Loan Bank stock, at cost					2,717,300				2,717,300
Accrued interest receivable					1,719,787				1,647,845
Premises and equipment, net					3,348,926				3,550,515
Mortgage servicing rights					629,050				486,617
Cash surrender value of life insurance					7,206,897				6,938,977
Goodwill					1,213,898				1,213,898
Deferred tax asset					2,392,638				2,558,162
Other assets					2,005,096				3,152,807
	Total assets			$	337,817,683			$	329,042,113
Liabilities and shareholders' equity
Deposits
	Noninterest-bearing deposits			$	27,397,357			$	20,029,966
	Interest-bearing deposits				272,581,131				262,519,228
		Total deposits			299,978,488				282,549,194
Borrowings					4,758,400				14,258,400
Accrued expenses and other liabilities					1,758,769				1,488,058
	Total liabilities				306,495,657				298,295,652
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, 2013, $7,336,000 liquidation preference				7,248,308				7,166,924
	Series B, 9% Fixed Rate Cumulative Perpetual Preferred Stock - 364 shares outstanding June 30, 2013, $368,000 liquidation preference				368,292				376,876
Common stock, $.01 par; 2,000,000 shares authorized;
	issued shares: 1,836,328
	outstanding shares: 1,122,084				18,363				18,363
Additional paid-in capital					9,531,646				9,495,807
Retained earnings					25,737,557				23,848,467
Accumulated other comprehensive income					(618,516	)			803,648
Treasury stock, at cost: 714,244 shares					(10,963,624	)			(10,963,624	)
	Total shareholders' equity				31,322,026				30,746,461
	Total liabilities and shareholders' equity			$	337,817,683			$	329,042,113

FFW Corporation
Selected Financial Information
Consolidated Statement of Income
				Three Months Ended June 30								Twelve Months Ended June 30
				2013				2012				2013				2012
				Unaudited				Unaudited				Unaudited
Interest and dividend income:
	Loans, including fees			$	2,604,953			$	2,567,679			$	10,513,322			$	11,191,505
	Taxable securities				359,961				513,721				1,639,864				2,067,341
	Tax exempt securities				279,881				159,656				979,359				555,348
	Other				16,826				13,556				34,931				32,786
		Total interest and dividend income			3,261,621				3,254,612				13,167,476				13,846,980
Interest expense:
	Deposits				779,344				946,701				3,413,966				3,951,857
	Borrowings				50,090				130,421				340,708				529,894
		Total interest expense			829,434				1,077,122				3,754,674				4,481,751
Net interest income					2,432,187				2,177,490				9,412,802				9,365,229
Provision for loan losses					210,000				3,900,000				840,000				4,800,000
Net interest income after provision for loan losses					2,222,187				(1,722,510	)			8,572,802				4,565,229
Noninterest income:
	Net gains on sales of securities				70,102				155,078				316,343				463,225
	Net gains on sales of loans				169,403				159,576				881,112				736,506
	Net gains (losses) on fixed assets				-				-				-				-
	Other than temporary impairment on securities				(21,685	)			(3,253	)			(104,526	)			(93,826	)
	Commission income				212,637				199,141				785,003				743,116
	Service charges and fees				271,314				237,798				1,023,462				1,042,903
	Earnings on life insurance				67,233				70,416				267,920				283,113
	Other				49,356				18,785				114,281				164,041
		Total noninterest income			818,360				837,541				3,283,595				3,339,078
Noninterest expense:
	Salaries and benefits				1,062,417				993,848				4,260,263				4,162,397
	Occupancy and equipment				251,497				322,254				1,007,006				1,068,252
	Professional				156,999				91,930				502,541				364,840
	Marketing				41,694				45,790				168,713				183,767
	Deposit insurance premium				71,138				112,446				415,133				429,268
	Regulatory assessment				38,415				35,752				150,475				138,989
	Correspondent bank charges				24,325				25,318				95,974				80,555
	Data processing				152,632				131,706				567,738				502,993
	Printing, postage and supplies				49,487				43,890				234,039				218,684
	Expense on life insurance				17,418				16,108				69,673				64,433
	Contribution expense				7,745				14,879				40,550				65,173
	Other				312,902				214,212				1,105,205				972,780
		Total noninterest expense			2,186,669				2,048,133				8,617,310				8,252,131
Income before income taxes					853,878				(2,933,102	)			3,239,087				(347,824	)
Income tax expense					155,565				(1,397,499	)			509,702				(940,823	)
Net income				$	698,313			$	(1,535,603	)		$	2,729,385			$	592,999
Preferred stock dividends and discount accretion, net					117,504				117,504				470,016				470,016
Net income attributable to common shareholders				$	580,809			$	(1,653,107	)		$	2,259,369			$	122,983

FFW Corporation
Selected Financial Information
Key Balances and Ratios
			Three Months Ended June 30								Twelve Months Ended June 30
			2013				2012				2013				2012
			Unaudited				Unaudited				Unaudited
Per common share data:
Earnings			$	0.52			$	(1.47	)		$	2.01			$	0.11
Diluted earnings			$	0.52			$	(1.47	)		$	2.01			$	0.11
Dividends paid			$	0.11			$	0.11			$	0.33			$	0.33
Average shares issued and outstanding				1,122,084				1,122,084				1,122,084				1,121,945
Shares outstanding end of period				1,122,084				1,122,084				1,122,084				1,122,084
Supplemental data:
Net interest margin **				3.00	%			2.92	%			2.99	%			3.01	%
Return on average assets ***				0.82	%			-1.82	%			0.81	%			0.18	%
Return on average common equity ***				9.17	%			-26.25	%			9.14	%			0.51	%
			June 30				June 30
			2013				2012
Nonperforming assets *			$	9,794,035			$	10,233,539
Repossessed assets			$	813,386			$	1,402,764
*	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