FFW Corporation Announces Earnings for the Quarter Ended September 30, 2013

WABASH, IN--(Marketwired - Oct 23, 2013) - FFW Corporation (the "Corporation") (OTCBB: FFWC) (10/22/2013 Close: $17.00), parent corporation of Crossroads Bank, announced earnings for the three months ended September 30, 2013.

For the three months ended September 30, 2013, the Corporation reported net income of $638,000 or $0.46 per common share compared to $530,000 or $0.37 per common share for the three months ended September 30, 2012. The net interest margin for the three months ended September 30, 2013 was $2,560,000 compared to $2,365,000 for the three months ended September 30, 2012. The provision for loan losses decreased from $210,000 for the period ended September 30, 2012 to $180,000 for the period ended September 30, 2013. Total noninterest income was $606,000 for the three months ended September 30, 2013 compared to $648,000 for the three months ended September 30, 2012. Noninterest expense was $2,197,000 for the three months ended September 30, 2013 and $2,122,000 for the three months ended September 30, 2012.

The three months ended September 30, 2013 represented a return on average common equity of 8.75%, compared to 6.85% for the three month period ended September 30, 2012. The three months ended September 30, 2013 represented a return on average assets of 0.75%, compared to 0.64% for the three month period ended September 30, 2012.

The allowance for loan losses as a percentage of gross loans receivable was 1.36% at September 30, 2013 compared to 1.43% at June 30, 2013. Nonperforming assets were $9,057,000 at September 30, 2013 compared to $9,794,000 at June 30, 2013.

As of September 30, 2013, FFWC's equity-to-assets ratio was 9.15% compared to 9.27% at June 30, 2013. Total assets at September 30, 2013 were $339,852,000 compared to $337,818,000 at June 30, 2013. Shareholders' equity was $31,107,000 at September 30, 2013 compared to $31,322,000 at June 30, 2013. 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
				2013				2013
				Unaudited
Assets
Cash and due from financial institutions				$	6,031,436			$	4,353,619
Interest-earning deposits in other financial institutions					6,095,134				11,647,346
	Cash and cash equivalents				12,126,570				16,000,965
Securities available for sale					81,946,426				85,122,447
Loans receivable, net of allowance for loan losses of $3,091,000 at September 30, 2013 and $3,132,000 at June 30, 2013					224,092,935				215,347,079
Loans held for sale					695,600				113,600
Federal Home Loan Bank stock, at cost					2,717,300				2,717,300
Accrued interest receivable					1,850,563				1,719,787
Premises and equipment, net					3,274,516				3,348,926
Mortgage servicing rights					625,129				629,050
Cash surrender value of life insurance					7,274,118				7,206,897
Goodwill					1,213,898				1,213,898
Deferred tax asset					2,607,754				2,392,638
Other assets					1,426,805				2,005,096
	Total assets			$	339,851,614			$	337,817,683
Liabilities and shareholders' equity
Deposits
	Noninterest-bearing deposits			$	30,866,048			$	27,397,357
	Interest-bearing deposits				272,844,125				272,581,131
		Total deposits			303,710,173				299,978,488
Borrowings					3,258,400				4,758,400
Accrued expenses and other liabilities					1,776,283				1,758,769
	Total liabilities				308,744,856				306,495,657
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, 2013, $7,335,000 liquidation preference				7,268,654				7,248,308
	Series B, 9% Fixed Rate Cumulative Perpetual Preferred Stock - 364 shares outstanding September 30, 2013, $368,000 liquidation preference				366,146				368,292
Common stock, $.01 par; 2,000,000 shares authorized;
	issued shares: 1,836,328
	outstanding shares: 1,132,084 at September 30, 2013 and 1,122,084 at June 30, 2013				18,363				18,363
Additional paid-in capital					9,396,224				9,531,646
Retained earnings					26,133,400				25,737,557
Accumulated other comprehensive income					(1,265,905	)			(618,516	)
Treasury stock, at cost: 704,244 shares at September 30, 2013 and 714,244 at June 30, 2013					(10,810,124	)			(10,963,624	)
	Total shareholders' equity				31,106,758				31,322,026
	Total liabilities and shareholders' equity			$	339,851,614			$	337,817,683

FFW Corporation
Selected Financial Information
Consolidated Statement of Income
				Three Months Ended September 30
				2013			2012
				Unaudited			Unaudited
Interest and dividend income:
	Loans, including fees			$	2,655,870		$	2,712,413
	Taxable securities				347,313			558,432
	Tax exempt securities				298,478			132,327
	Other				9,066			4,127
		Total interest and dividend income			3,310,727			3,407,299
Interest expense:
	Deposits				705,113			914,777
	Borrowings				45,309			127,033
		Total interest expense			750,422			1,041,810
Net interest income					2,560,305			2,365,489
Provision for loan losses					180,000			210,000
Net interest income after provision for loan losses					2,380,305			2,155,489
Noninterest income:
	Net gains on sales of securities				-			(7,277	)
	Net gains on sales of loans				43,633			177,002
	Other than temporary impairment on securities				-			(658	)
	Commission income				211,458			197,675
	Service charges and fees				263,892			189,663
	Earnings on life insurance				67,221			66,362
	Other				19,338			25,604
		Total noninterest income			605,542			648,371
Noninterest expense:
	Salaries and benefits				1,098,801			1,068,203
	Occupancy and equipment				248,474			256,300
	Professional				167,661			86,333
	Marketing				41,874			32,003
	Deposit insurance premium				79,208			115,805
	Regulatory assessment				28,885			36,486
	Correspondent bank charges				21,553			24,129
	Data processing				169,686			138,096
	Printing, postage and supplies				55,365			58,641
	Expense on life insurance				18,818			17,418
	Contribution expense				12,821			13,017
	Other				254,153			275,791
		Total noninterest expense			2,197,299			2,122,222
Income before income taxes					788,548			681,638
Income tax expense					150,670			151,600
Net income				$	637,878		$	530,038
Preferred stock dividends and discount accretion, net					117,504			117,504
Net income attributable to common shareholders				$	520,374		$	412,534

FFW Corporation
Selected Financial Information
Key Balances and Ratios
				Three Months Ended September 30
				2013				2012
				Unaudited				Unaudited
Per common share data:
Earnings				$	0.46			$	0.37
Diluted earnings				$	0.46			$	0.37
Dividends paid				$	0.11			$	0.00
Average shares issued and outstanding					1,132,084				1,122,084
Shares outstanding end of period					1,132,084				1,122,084
Supplemental data:
Net interest margin **					3.17	%			3.04	%
Return on average assets ***					0.75	%			0.64	%
Return on average common equity ***					8.75	%			6.85	%
					September 30				June 30
					2013				2013
Nonperforming assets *				$	9,057,146			$	9,794,035
Repossessed assets				$	406,195			$	813,386

*		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