FFW Corporation Announces Earnings for the Three and Nine Months Ended March 31, 2013

WABASH, IN--(Marketwired - Apr 24, 2013) - FFW Corporation (the "Corporation") (OTCBB: FFWC) (4/23/2013 Close: $15.50), parent corporation of Crossroads Bank, announced earnings for the three and nine months ended March 31, 2013. 

For the three months ended March 31, 2013, the Corporation reported net income of $643,000 or $0.47 per common share compared to $737,000 or $0.55 per common share for the three months ended March 31, 2012. The net interest margin for the three months ended March 31, 2013 was $2,294,000 compared to $2,350,000 for the three months ended March 31, 2012. The provision for loan losses decreased from $300,000 for the period ended March 31, 2012 to $210,000 for the period ended March 31, 2013. Total noninterest income was $782,000 for the three months ended March 31, 2013 compared to $805,000 for the three months ended March 31, 2012. Noninterest expense was $2,164,000 for the three months ended March 31, 2013 and $2,118,000 for the three months ended March 31, 2012. 

For the nine months ended March 31, 2013, the Corporation reported net income of $2,031,000 or $1.50 per common share compared to $2,129,000 or $1.58 per common share for the nine months ended March 31, 2012. The net interest margin for the nine months ended March 31, 2013 was $6,981,000 compared to $7,188,000 for the nine months ended March 31, 2012. The provision for loan losses decreased from $900,000 for the period ended March 31, 2012 to $630,000 for the period ended March 31, 2013. Total noninterest income was $2,465,000 for the nine months ended March 31, 2013 compared to $2,502,000 for the nine months ended March 31, 2012. Noninterest expense was $6,431,000 for the nine months ended March 31, 2013 and $6,204,000 for the nine months ended March 31, 2012.

The three and nine months ended March 31, 2013 represented a return on average common equity of 8.49% and 9.12%, respectively, compared to 10.09% and 9.87% for the three and nine month periods ended March 31, 2012. The three and nine months ended March 31, 2013 represented a return on average assets of 0.77% and 0.81%, respectively, compared to 0.90% and 0.86% for the three and nine month periods ended March 31, 2012.

The allowance for loan losses as a percentage of gross loans receivable was 1.74% at March 31, 2013 compared to 1.68% at June 30, 2012. Nonperforming assets were $8,498,000 at March 31, 2013 compared to $10,234,000 at June 30, 2012.

As of March 31, 2013, FFWC's equity-to-assets ratio was 9.57% compared to 9.34% at June 30, 2012. Total assets at March 31, 2013 were $338,350,000 compared to $329,042,000 at June 30, 2012. Shareholders' equity was $32,367,000 at March 31, 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
				March 31				June 30
				2013				2012
				Unaudited
Assets
Cash and due from financial institutions				$	3,482,896			$	3,478,709
Interest-earning deposits in other financial institutions					21,256,324				13,360,765
	Cash and cash equivalents				24,739,220				16,839,474
Securities available for sale					82,648,848				83,665,458
Loans receivable, net of allowance for loan losses of $3,739,000 at March 31, 2013 and $3,520,000 at June 30, 2012					209,977,420				205,934,060
Loans held for sale					607,310				337,000
Federal Home Loan Bank stock, at cost					2,717,300				2,717,300
Accrued interest receivable					1,528,397				1,647,845
Premises and equipment, net					3,356,553				3,550,515
Mortgage servicing rights					572,148				486,617
Cash surrender value of life insurance					7,139,664				6,938,977
Goodwill					1,213,898				1,213,898
Deferred tax asset					1,859,147				2,558,162
Other assets					1,990,133				3,152,807
	Total assets			$	338,350,038			$	329,042,113
Liabilities and shareholders' equity
Deposits
	Noninterest-bearing deposits			$	26,100,216			$	20,029,966
	Interest-bearing deposits				273,496,986				262,519,228
		Total deposits			299,597,202				282,549,194
Borrowings					4,758,400				14,258,400
Accrued expenses and other liabilities					1,627,645				1,488,058
	Total liabilities				305,983,247				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 March 31, 2013, $7,334,000 liquidation preference				7,227,962				7,166,924
	Series B, 9% Fixed Rate Cumulative Perpetual Preferred Stock - 364 shares outstanding March 31, 2013, $368,000 liquidation preference				370,438				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					9,523,255				9,495,807
Retained earnings					25,280,175				23,848,467
Accumulated other comprehensive income					910,222				803,648
Treasury stock, at cost: 714,244 shares					(10,963,624	)			(10,963,624	)
	Total shareholders' equity				32,366,791				30,746,461
	Total liabilities and shareholders' equity			$	338,350,038			$	329,042,113

FFW Corporation Selected Financial Information
Consolidated Statement of Income
				Three Months Ended March 31						Nine Months Ended March 31
				2013			2012			2013			2012
				Unaudited			Unaudited			Unaudited			Unaudited
Interest and dividend income:
	Loans, including fees			$	2,522,505		$	2,775,302		$	7,908,368		$	8,623,827
	Taxable securities				379,743			512,215			1,279,902			1,553,621
	Tax exempt securities				254,733			133,334			699,478			395,692
	Other				9,437			9,481			18,105			19,230
		Total interest and dividend income			3,166,418			3,430,332			9,905,853			10,592,370
Interest expense:
	Deposits				816,099			950,241			2,634,621			3,005,159
	Borrowings				56,363			130,338			290,618			399,474
		Total interest expense			872,462			1,080,579			2,925,239			3,404,633
Net interest income					2,293,956			2,349,753			6,980,614			7,187,737
Provision for loan losses					210,000			300,000			630,000			900,000
Net interest income after provision for loan losses					2,083,956			2,049,753			6,350,614			6,287,737
Noninterest income:
	Net gains on sales of securities				66,751			148			246,241			308,148
	Net gains on sales of loans				203,473			283,019			711,709			576,930
	Net gains (losses) on fixed assets				-			-			-			-
	Other than temporary impairment on securities				(2,200	)		(2,573	)		(82,841	)		(90,573	)
	Commission income				177,903			219,716			572,366			543,975
	Service charges and fees				227,979			273,109			752,148			805,106
	Earnings on life insurance				66,628			69,797			200,686			212,697
	Other				41,492			(38,424	)		64,925			145,254
	Total noninterest income				782,026			804,792			2,465,234			2,501,537
Noninterest expense:
	Salaries and benefits				1,059,390			1,079,490			3,197,846			3,168,549
	Occupancy and equipment				255,603			249,580			755,508			745,998
	Professional				122,934			85,649			345,543			272,910
	Marketing				36,202			44,654			127,019			137,977
	Deposit insurance premium				115,815			113,905			343,995			316,822
	Regulatory assessment				37,619			34,747			112,060			103,237
	Correspondent bank charges				23,840			19,623			71,649			55,237
	Data processing				140,159			127,863			415,106			371,287
	Printing, postage and supplies				59,473			63,956			184,553			174,794
	Expense on life insurance				17,418			16,108			52,255			48,325
	Contribution expense				9,107			14,325			32,805			50,295
	Other				286,169			267,700			792,302			758,567
		Total noninterest expense			2,163,729			2,117,600			6,430,641			6,203,998
Income before income taxes					702,253			736,945			2,385,207			2,585,276
Income tax expense					58,795			10			354,137			456,676
Net income				$	643,458		$	736,935		$	2,031,070		$	2,128,600
Preferred stock dividends and discount accretion, net					117,504			117,504			352,512			352,512
Net income attributable to common shareholders				$	525,954		$	619,431		$	1,678,558		$	1,776,088

FFW Corporation Selected Financial Information
Key Balances and Ratios
		Three Months Ended March 31						Nine Months Ended March 31
		2013			2012			2013			2012
		Unaudited			Unaudited			Unaudited			Unaudited
Per common share data:
Earnings		$	0.47		$	0.55		$	1.50		$	1.58
Diluted earnings		$	0.47		$	0.55		$	1.50		$	1.58
Dividends paid		$	0.11		$	0.11		$	0.22		$	0.22
Average shares issued and outstanding			1,122,084			1,121,928			1,122,084			1,121,899
Shares outstanding end of period			1,122,084			1,122,084			1,122,084			1,122,084
Supplemental data:
Net interest margin **			2.98	%		3.06	%		2.98	%		3.10	%
Return on average assets ***			0.77	%		0.90	%		0.81	%		0.86	%
Return on average common equity ***			8.49	%		10.09	%		9.12	%		9.87	%
		March 31			June 30
		2013			2012
Nonperforming assets *		$	8,498,053		$	10,233,539
Repossessed assets		$	715,629		$	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