SOURCE: FFW Corporation

August 10, 2015 10:30 ET

FFW Corporation Announces Earnings for the Fiscal Year Ended June 30, 2015

WABASH, IN--(Marketwired - August 10, 2015) - FFW Corporation (the "Corporation") (OTC PINK: FFWC) (8/7/15 Close: $24.50), parent corporation of Crossroads Bank, announced earnings for the three and twelve months ended June 30, 2015.

For the three months ended June 30, 2015, the Corporation reported net income of $811,000 or $0.65 per common share compared to $766,000 or $0.58 per common share for the three months ended June 30, 2014. Net interest income for the three months ended June 30, 2015 was $2,886,000 compared to $2,752,000 for the three months ended June 30, 2014. The provision for loan losses was $80,000 for the three month period ended June 30, 2015 and $180,000 for the three month period ended June 30, 2014. Total noninterest income was $920,000 for the three months ended June 30, 2015 compared to $764,000 for the three months ended June 30, 2014. Noninterest expense was $2,619,000 for the three months ended June 30, 2015 and $2,277,000 for the three months ended June 30, 2014.

For the twelve months ended June 30, 2015, the Corporation reported net income of $3,165,000 or $2.49 per common share compared to $4,086,000 or $3.21 per common share for the twelve months ended June 30, 2014. Net interest income for the twelve months ended June 30, 2015 was $11,436,000 compared to $10,656,000 for the twelve months ended June 30, 2014. The provision for loan losses was $560,000 expense for the twelve month period ended June 30, 2015 and $1,280,000 income for the twelve month period ended June 30, 2014. The income recognized through provision in fiscal year 2014 was attributable to a large loan loss recovery received during the third fiscal quarter of 2014 offset by the current period provision expense. Total noninterest income was $3,714,000 for the twelve months ended June 30, 2015 compared to $2,911,000 for the twelve months ended June 30, 2014. Noninterest expense was $10,359,000 for the twelve months ended June 30, 2015 and $9,127,000 for the twelve months ended June 30, 2014.

The three and twelve months ended June 30, 2015 represented a return on average common equity of 9.58% and 9.49%, respectively, compared to 9.64% and 14.50% for the three and twelve month periods ended June 30, 2014. The three and twelve months ended June 30, 2015 represented a return on average assets of 0.97% and 0.94%, respectively, compared to 0.89% and 1.19%, for the three and twelve month periods ended June 30, 2014.

The allowance for loan losses as a percentage of gross loans receivable was 1.45% at June 30, 2015 compared to 1.29% at June 30, 2014. Nonperforming assets were $5,897,000 at June 30, 2015 compared to $7,084,000 at June 30, 2014.

As of June 30, 2015, FFWC's equity-to-assets ratio was 10.08% compared to 10.08% at June 30, 2014. Total assets at June 30, 2015 were $334,056,000 compared to $335,496,000 at June 30, 2014. Shareholders' equity was $33,682,000 at June 30, 2015 compared to $33,830,000 at June 30, 2014. Crossroads Bank exceeds all applicable regulatory requirements to be considered "well capitalized."

During the fiscal year ended June 30, 2015 the Corporation fully redeemed the remaining 2,539 shares of Fixed Rate Cumulative Preferred Stock, Series A ("Series A Preferred Stock"), for $2,539,000, plus accrued dividends, and 364 shares of Fixed Rate Cumulative Preferred Stock, Series B ("Series B Preferred Stock"), for $364,000, plus accrued dividends. Following the redemption, the Corporation has outstanding 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
 
  June 30 June 30
  2015 2014
  Unaudited  
Assets    
Cash and due from financial institutions $4,154,036  $6,729,693 
Interest-earning deposits in other financial institutions  4,988,002   5,706,136 
 Cash and cash equivalents  9,142,038   12,435,829 
         
Securities available for sale  77,922,871   83,751,842 
Loans receivable, net of allowance for loan losses of $3,314,307 at        
 June 30, 2015 and $2,851,007 at June 30, 2014  225,521,274   217,629,375 
Loans held for sale  104,932   286,800 
Federal Home Loan Bank stock, at cost  1,462,500   2,717,300 
Accrued interest receivable  1,707,661   1,769,840 
Premises and equipment, net  5,044,265   3,278,681 
Mortgage servicing rights  754,076   680,362 
Cash surrender value of life insurance  7,744,574   7,473,117 
Goodwill  1,213,898   1,213,898 
Deferred tax asset  314,550   1,058,029 
Other assets  3,123,509   3,200,907 
 Total assets $334,056,148  $335,495,980 
         
Liabilities and shareholders' equity        
Deposits        
 Noninterest-bearing deposits $30,780,793  $29,462,977 
 Interest-bearing deposits  234,698,904   266,730,899 
  Total deposits  265,479,697   296,193,876 
         
Borrowings  32,558,400   3,258,400 
Accrued expenses and other liabilities  2,335,878   2,213,560 
  Total liabilities  300,373,975   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 - zero shares outstanding June 30, 2015 and 2,539 shares June 30, 2014, $0 liquidation preference June 30, 2015 and $2,568,000 June 30, 2014  -   2,539,000 
 Series B, 9% Fixed Rate Cumulative Perpetual Preferred Stock - zero shares outstanding June 30, 2015 and 364 shares outstanding June 30, 2014, $0 liquidation preference June 30, 2015 and $368,000 liquidation preference June 30, 2014  -   364,000 
 Series C, 5% Fixed Rate Cumulative Perpetual Preferred Stock - 3,250 shares outstanding June 30, 2015 2014, $3,271,000 liquidation preference June 30, 2015 and 2014  3,250,000   3,250,000 
Common stock, $.01 par; 2,000,000 shares authorized;        
 issued shares: 1,836,328        
 outstanding shares: 1,142,084 - June 30, 2015 and 1,132,084 - June 30, 2014  18,363   18,363 
Additional paid-in capital  9,452,255   9,446,708 
Retained earnings  31,116,433   28,870,083 
Accumulated other comprehensive income  501,746   152,114 
Treasury stock, at cost: 694,244 shares at June 30, 2015 and 704,244 at June 30, 2014  (10,656,624)  (10,810,124)
 Total shareholders' equity  33,682,173   33,830,144 
         
 Total liabilities and shareholders' equity $334,056,148  $335,495,980 
          
FFW Corporation
Selected Financial Information
Consolidated Statement of Income
 
  Three Months
Ended June 30
 Twelve Months
Ended June 30
  2015 2014 2015 2014
  Unaudited   Unaudited  
Interest and dividend income:        
 Loans, including fees $2,645,498  $2,620,741 $10,526,111  $10,531,363 
 Taxable securities  252,980   312,946  1,143,642   1,362,600 
 Tax exempt securities  320,467   311,154  1,268,092   1,216,517 
 Other  4,260   11,419  21,039   47,257 
  Total interest and dividend income  3,223,205   3,256,260  12,958,884   13,157,737 
                
Interest expense:               
 Deposits  295,347   471,381  1,361,775   2,357,116 
 Borrowings  41,789   32,802  161,211   144,174 
  Total interest expense  337,136   504,183  1,522,986   2,501,290 
                
Net interest income  2,886,069   2,752,077  11,435,898   10,656,447 
                
Provision for loan losses  80,000   180,000  560,000   (1,280,000)
                
Net interest income after provision for               
 loan losses  2,806,069   2,572,077  10,875,898   11,936,447 
                
Noninterest income:               
 Net gains on sales of securities  -   50,625  51,449   85,892 
 Net gains on sales of loans  110,327   107,578  438,230   317,572 
 Net gains (losses) on fixed assets  (18,301)  2,186  (18,866)  8,668 
 Commission income  254,345   243,963  982,879   943,590 
 Service charges and fees  231,126   233,269  954,071   976,143 
 Earnings on life insurance  68,303   66,550  271,458   266,220 
 Income from REO  167,366   -  708,180   - 
 Other  106,576   59,682  326,707   313,203 
Total noninterest income  919,742   763,853  3,714,108   2,911,288 
                
Noninterest expense:               
 Salaries and benefits  1,203,446   1,186,474  4,865,720   4,626,176 
 Occupancy and equipment  244,175   249,913  991,671   1,003,951 
 Professional  145,425   177,949  543,107   757,015 
 Marketing  33,313   30,604  153,797   158,185 
 Deposit insurance premium  54,567   63,233  204,459   301,071 
 Regulatory assessment  39,000   26,588  129,971   104,591 
 Correspondent bank charges  13,719   22,271  58,852   84,733 
 Data processing  162,180   153,078  628,703   620,921 
 Printing, postage and supplies  49,886   54,540  221,990   239,562 
 Expense on life insurance  20,315   18,817  81,259   75,270 
 Contribution expense  10,891   12,933  49,186   42,010 
 Expense on REO  358,479   184  1,301,604   48,382 
 Other  283,489   280,195  1,128,638   1,065,019 
  Total noninterest expense  2,618,885   2,276,779  10,358,957   9,126,886 
                
Income before income taxes  1,106,926   1,059,151  4,231,049   5,720,849 
                
Income tax expense  295,750   293,083  1,066,380   1,634,618 
                
Net income $811,176  $766,068 $3,164,669  $4,086,231 
Preferred stock dividends and discount accretion, net  71,840   105,941  331,919   455,588 
Net income attributable to common shareholders $739,336  $660,127 $2,832,750  $3,630,643 
 
FFW Corporation
Selected Financial Information
Key Balances and Ratios
 
  Three Months Ended June 30 Twelve Months Ended June 30
  2015 2014 2015 2014
  Unaudited   Unaudited  
Per common share data:        
Earnings $0.65  $0.58  $2.49  $3.21 
Diluted earnings $0.65  $0.58  $2.49  $3.21 
Dividends paid $0.135  $0.110  $0.515  $0.440 
Average shares issued and outstanding  1,142,084   1,132,084   1,137,125   1,132,084 
Shares outstanding end of period  1,142,084   1,132,084   1,142,084   1,132,084 
                 
Supplemental data:                
Net interest margin **  3.72%  3.42%  3.63%  3.27%
Return on average assets ***  0.97%  0.89%  0.94%  1.19%
Return on average common equity ***  9.58%  9.64%  9.49%  14.50%
           
   June 30  June 30    
   2015  2014    
Nonperforming assets * $5,896,625 $7,084,099    
Repossessed assets $1,968,808 $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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    Treasurer
    260-563-3185