FFW Corporation Announces Earnings for the Quarter Ended September 30, 2012

WABASH, IN--(Marketwire - Oct 23, 2012) - FFW Corporation (the "Corporation") (OTCBB: FFWC) (10/22/2012 Close: $15.00), parent corporation of Crossroads Bank, announced earnings for the quarter ended September 30, 2012. 

For the three months ended September 30, 2012, the Corporation reported net income of $530,000 or $0.37 per common share compared to $684,000 or $0.50 per common share for the three months ended September 30, 2011. The net interest margin for the three months ended September 30, 2012 was $2,365,000 compared to $2,384,000 for the three months ended September 30, 2011. The provision for loan losses decreased from $300,000 for the period ended September 30, 2011 to $210,000 for the period ended September 30, 2012. Total noninterest income was $648,000 for the three months ended September 30, 2012 compared to $872,000 for the three months ended September 30, 2011. Noninterest expense was $2,122,000 for the three months ended September 30, 2012 and $2,061,000 for the three months ended September 30, 2011. 

The three months ended September 30, 2012 represented a return on average common equity of 6.85% compared to 9.77% for the three month period ended September 30, 2011. The three months ended September 30, 2012 represented a return on average assets of 0.64% compared to 0.83% for the three month period ended September 30, 2011.

The allowance for loan losses as a percentage of gross loans receivable was 1.64% at September 30, 2012 compared to 1.68% at June 30, 2012. Nonperforming assets were $9,907,000 at September 30, 2012 compared to $10,234,000 at June 30, 2012.

As of September 30, 2012, FFWC's equity-to-assets ratio was 9.47% compared to 9.34% at June 30, 2012. Total assets at September 30, 2012 were $330,286,000 compared to $329,042,000 at June 30, 2012. Shareholders' equity was $31,284,000 at September 30, 2012 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
				September 30				June 30
				2012				2012
				Unaudited
Assets
Cash and due from financial institutions				$	4,760,910			$	3,478,709
Interest-earning deposits in other financial institutions					3,521,941				13,360,765
	Cash and cash equivalents				8,282,851				16,839,474
Securities available for sale					83,966,869				83,665,458
Loans receivable, net of allowance for loan losses of $3,615,683 at
	September 30, 2012 and $3,520,110 at June 30, 2012				215,351,293				205,934,060
Loans held for sale					920,750				337,000
Federal Home Loan Bank stock, at cost					2,717,300				2,717,300
Accrued interest receivable					1,899,671				1,647,845
Premises and equipment, net					3,486,916				3,550,515
Mortgage servicing rights					412,452				486,617
Cash surrender value of life insurance					7,005,340				6,938,977
Goodwill					1,213,898				1,213,898
Deferred tax asset					2,356,765				2,558,162
Other assets					2,671,660				3,152,807
	Total assets			$	330,285,765			$	329,042,113
Liabilities and shareholders' equity
Deposits
	Noninterest-bearing deposits			$	23,796,008			$	20,029,966
	Interest-bearing deposits				258,905,281				262,519,228
		Total deposits			282,701,289				282,549,194
Borrowings					14,758,400				14,258,400
Accrued expenses and other liabilities					1,542,064				1,488,058
	Total liabilities				299,001,753				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 September 30, 2012, $7,336,000 liquidation preference				7,187,270				7,166,924
	Series B, 9% Fixed Rate Cumulative Perpetual Preferred Stock - 364 shares outstanding September 30, 2012, $368,000 liquidation preference				374,730				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					9,506,474				9,495,807
Retained earnings					24,261,004				23,848,467
Accumulated other comprehensive income					899,795				803,648
Treasury stock, at cost: 714,244 shares					(10,963,624	)			(10,963,624	)
	Total shareholders' equity				31,284,012				30,746,461
	Total liabilities and shareholders' equity			$	330,285,765			$	329,042,113

FFW Corporation
Selected Financial Information
Consolidated Statement of Income
				Three Months Ended September 30
				2012				2011
				Unaudited				Unaudited
Interest and dividend income:
	Loans, including fees			$	2,712,413			$	2,912,686
	Taxable securities				558,432				528,581
	Tax exempt securities				132,327				132,809
	Other				4,127				2,446
		Total interest and dividend income			3,407,299				3,576,522
Interest expense:
	Deposits				914,777				1,056,666
	Borrowings				127,033				135,926
		Total interest expense			1,041,810				1,192,592
Net interest income					2,365,489				2,383,930
Provision for loan losses					210,000				300,000
Net interest income after provision for loan losses					2,155,489				2,083,930
Noninterest income:
	Net gains on sales of securities				(7,277	)			163,588
	Net gains on sales of loans				177,002				94,423
	Other than temporary impairment on securities				(658	)			-
	Commission income				197,675				155,449
	Service charges and fees				189,663				254,671
	Earnings on life insurance				66,362				72,048
	Other				25,604				132,082
		Total noninterest income			648,371				872,261
Noninterest expense:
	Salaries and benefits				1,068,203				1,050,869
	Occupancy and equipment				256,300				248,135
	Professional				86,333				86,118
	Marketing				32,003				43,361
	Deposit insurance premium				115,805				111,255
	Regulatory assessment				36,486				35,211
	Correspondent bank charges				24,129				15,241
	Data processing				138,096				123,312
	Printing, postage and supplies				58,641				57,248
	Expense on life insurance				17,418				16,108
	Contribution expense				13,017				16,465
	Other				275,791				257,492
		Total noninterest expense			2,122,222				2,060,815
Income before income taxes					681,638				895,376
Income tax expense					151,600				211,795
Net income				$	530,038			$	683,581
Preferred stock dividends and discount accretion, net					117,504				117,504
Net income attributable to common shareholders				$	412,534			$	566,077

FFW Corporation
Selected Financial Information
Key Balances and Ratios
		Three Months Ended September 30
		2012				2011
		Unaudited				Unaudited
Per common share data:
Earnings		$	0.37			$	0.50
Diluted earnings		$	0.37			$	0.50
Dividends paid		$	0.00			$	0.00
Average shares issued and outstanding			1,122,084				1,121,884
Shares outstanding end of period			1,122,084				1,121,884
Supplemental data:
Net interest margin **			3.04	%			3.09	%
Return on average assets ***			0.64	%			0.83	%
Return on average common equity ***			6.85	%			9.77	%
		September 30				June 30
		2012				2012
Nonperforming assets *		$	9,907,494			$	10,233,539
Repossessed assets		$	1,171,756			$	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