SOURCE: FFW Corporation

August 10, 2016 12:35 ET

FFW Corporation Announces Earnings for the Fiscal Year Ended June 30, 2016

WABASH, IN--(Marketwired - August 10, 2016) - FFW Corporation (the "Corporation") (OTC PINK: FFWC) (8/9/16 Close: $25.40), parent corporation of Crossroads Bank (the "Bank"), announced earnings for the three and twelve months ended June 30, 2016.

For the three months ended June 30, 2016, the Corporation reported net income of $1,002,000 or $0.83 per common share compared to $811,000 or $0.65 per common share for the three months ended June 30, 2015. Net interest income for the three months ended June 30, 2016 was $2,890,000 compared to $2,886,000 for the three months ended June 30, 2015. The provision for loan losses was $80,000 for the three month periods ended June 30, 2016 and June 30, 2015. Total noninterest income was $1,098,000 for the three months ended June 30, 2016 compared to $920,000 for the three months ended June 30, 2015. Noninterest expense was $2,604,000 for the three months ended June 30, 2016 and $2,619,000 for the three months ended June 30, 2015.

For the twelve months ended June 30, 2016, the Corporation reported net income of $3,790,000 or $3.15 per common share compared to $3,165,000 or $2.49 per common share for the twelve months ended June 30, 2015. Net interest income for the twelve months ended June 30, 2016 was $11,523,000 compared to $11,436,000 for the twelve months ended June 30, 2015. The provision for loan losses was $280,000 for the twelve months ended June 30, 2016 and $560,000 for the twelve months ended June 30, 2015. Total noninterest income was $4,165,000 for the twelve months ended June 30, 2016 compared to $3,714,000 for the twelve months ended June 30, 2015. Noninterest expense was $10,548,000 for the twelve months ended June 30, 2016 and $10,359,000 for the twelve months ended June 30, 2015.

The three and twelve months ended June 30, 2016 represented a return on average common equity of 11.19% and 11.00%, respectively, compared to 9.58% and 9.49% for the three and twelve month periods ended June 30, 2015. The three and twelve months ended June 30, 2016 represented a return on average assets of 1.18% and 1.13%, respectively, compared to 0.97% and 0.94%, for the three and twelve month periods ended June 30, 2015.

The allowance for loan losses as a percentage of gross loans receivable was 1.52% at June 30, 2016 compared to 1.45% at June 30, 2015. Nonperforming assets were $6,700,000 at June 30, 2016 compared to $5,897,000 at June 30, 2015.

As of June 30, 2016, FFWC's equity-to-assets ratio was 10.98% compared to 10.08% at June 30, 2015. Total assets at June 30, 2016 were $340,987,000 compared to $334,056,000 at June 30, 2015. Shareholders' equity was $37,449,000 at June 30, 2016 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
   June 30   June 30  
   2016   2015  
   Unaudited      
Assets         
Cash and due from financial institutions  $4,031,546   $4,154,036  
Interest-bearing deposits in other financial institutions   6,188,392    4,988,002  
 Cash and cash equivalents   10,219,938    9,142,038  
            
Securities available for sale   79,011,265    77,922,871  
Loans receivable, net of allowance for loan losses of $3,557,769 at           
 June 30, 2016 and $3,314,307 at June 30, 2015   229,454,626    225,521,274  
Loans held for sale   854,375    104,932  
Federal Home Loan Bank stock, at cost   1,462,500    1,462,500  
Accrued interest receivable   1,760,537    1,707,661  
Premises and equipment, net   5,193,270    5,044,265  
Mortgage servicing rights   660,784    754,076  
Cash surrender value of life insurance   8,022,990    7,744,574  
Goodwill   1,213,898    1,213,898  
Repossessed Assets   2,062,708    1,968,808  
Other assets   1,070,211    1,469,251  
 Total assets  $340,987,102   $334,056,148  
            
Liabilities and shareholders' equity           
Deposits           
 Noninterest-bearing  $25,032,689   $30,780,793  
 Interest-bearing   254,123,833    234,698,904  
  Total deposits   279,156,522    265,479,697  
            
Borrowings   21,698,400    32,558,400  
Accrued expenses and other liabilities   2,682,835    2,335,878  
 Total liabilities   303,537,757    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 - 2,250 shares outstanding June 30, 2016 and 3,250 shares at June 30, 2015, $2,264,000 liquidation preference at June 30, 2016 and $3,271,000 at June 30, 2015   2,250,000    3,250,000  
Common stock, $.01 par; 2,000,000 shares authorized;           
 Issued: 1,836,328; outstanding: 1,156,084 - June 30, 2016 and 1,142,084 - June 30, 2015   18,363    18,363  
Additional paid-in capital   9,358,395    9,452,255  
Retained earnings   34,053,094    31,116,433  
Accumulated other comprehensive income   2,211,217    501,746  
Treasury stock, at cost: 680,244 shares at June 30, 2016 and 694,244 shares at June 30, 2015   (10,441,724 )  (10,656,624 )
 Total shareholders' equity   37,449,345    33,682,173  
            
 Total liabilities and shareholders' equity  $340,987,102   $334,056,148  

 
 
 
FFW Corporation
Selected Financial Information
 
Consolidated Statement of Income
   Three Months Ended June 30   Twelve Months Ended June 30  
   2016   2015   2016    2015  
   Unaudited       Unaudited       
Interest and dividend income:                  
 Loans, including fees  $2,680,532   $2,645,498   $10,614,782    $10,526,111  
 Taxable securities   327,335    252,980    1,290,446     1,143,642  
 Tax exempt securities   256,027    320,467    1,016,000     1,268,092  
 Other   6,842    4,260    24,945     21,039  
  Total interest and dividend income   3,270,736    3,223,205    12,946,173     12,958,884  
                       
Interest expense:                      
 Deposits   341,444    295,347    1,273,386     1,361,775  
 Borrowings   38,853    41,789    150,234     161,211  
  Total interest expense   380,297    337,136    1,423,620     1,522,986  
                       
Net interest income   2,890,439    2,886,069    11,522,553     11,435,898  
                       
Provision for loan losses   80,000    80,000    280,000     560,000  
                       
Net interest income after provision for                      
loan losses   2,810,439    2,806,069    11,242,553     10,875,898  
                       
Noninterest income:                      
 Net gains on sales of securities   50,000    -    50,000     51,449  
 Net gains on sales of loans   165,251    110,327    517,754     438,230  
 Net gains (losses) on fixed assets   (844 )  (18,301 )  (2,196 )   (18,866 )
 Commission income   251,586    254,345    971,716     982,879  
 Service charges and fees   143,201    231,126    698,975     954,071  
 Earnings on life insurance   70,002    68,303    278,416     271,458  
 Income from REO   318,261    167,366    1,230,864     708,180  
 Other   100,631    106,576    419,838     326,707  
  Total noninterest income   1,098,088    919,742    4,165,367     3,714,108  
                       
Noninterest expense:                      
 Salaries and benefits   1,305,066    1,203,446    4,996,585     4,865,720  
 Occupancy and equipment   264,248    244,175    1,094,473     991,671  
 Professional   144,635    145,425    652,903     543,107  
 Marketing   46,293    33,313    206,928     153,797  
 Deposit insurance premium   57,000    54,567    234,712     204,459  
 Regulatory assessment   (40,089 )  39,000    48,511     129,971  
 Correspondent bank charges   14,078    13,719    59,038     58,852  
 Data processing   115,332    162,180    436,127     628,703  
 Printing, postage and supplies   59,362    49,886    259,152     221,990  
 Expense on life insurance   21,913    20,315    87,652     81,259  
 Contribution expense   10,155    10,891    41,187     49,186  
 Expense on REO   321,627    358,479    1,266,652     1,301,604  
 Other   284,558    283,489    1,164,104     1,128,638  
  Total noninterest expense   2,604,178    2,618,885    10,548,024     10,358,957  
                       
Income before income taxes   1,304,349    1,106,926    4,859,896     4,231,049  
                       
Income tax expense   302,527    295,750    1,069,625     1,066,380  
                       
Net income  $1,001,822   $811,176   $3,790,271    $3,164,669  
Preferred stock dividends   40,486    71,840    162,361     331,919  
Net income attributable to common shareholders  $961,336   $739,336   $3,627,910    $2,832,750  

 
 
 
FFW Corporation
Selected Financial Information
 
Key Balances and Ratios
    Three Months Ended June 30   Twelve Months Ended June 30  
    2016   2015   2016   2015  
    Unaudited       Unaudited      
Per common share data:                 
Earnings  $0.83   $0.65   $3.15   $2.49  
Diluted earnings  $0.83   $0.65   $3.15   $2.49  
Dividends paid  $0.15   $0.135   $0.60   $0.515  
Average shares issued and outstanding   1,156,084    1,142,084    1,150,155    1,137,125  
Shares outstanding end of period   1,156,084    1,142,084    1,156,084    1,142,084  
                         
Supplemental data:                     
Net interest margin **   3.66 %  3.72 %  3.69 %  3.63 %
Return on average assets ***   1.18 %  0.97 %  1.13 %  0.94 %
Return on average common equity ***   11.19 %  9.58 %  11.00 %  9.49 %
                         
       June 30    June 30            
       2016    2015            
Nonperforming assets *  $6,699,913   $5,896,625            
Repossessed assets  $2,062,708   $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

  • Contact:
    Emily Boardman
    Treasurer
    260-563-3185