FFW Corporation Announces Earnings for the Three and Nine Months Ended March 31, 2015

WABASH, IN--(Marketwired - Apr 29, 2015) - FFW Corporation (the "Corporation") (OTC PINK: FFWC) (4/28/15 Close: $23.90), parent corporation of Crossroads Bank, announced earnings for the three and nine months ended March 31, 2015.

For the three months ended March 31, 2015, the Corporation reported net income of $705,000 or $0.55 per common share compared to $1,912,000 or $1.59 per common share for the three months ended March 31, 2014. Net interest income for the three months ended March 31, 2015 was $2,901,000 compared to $2,760,000 for the three months ended March 31, 2014. The provision for loan losses was $120,000 for the three months ended March 31, 2015 compared to a negative provision of $1,820,000 for the three months ended March 31, 2014. The income recognized through provision was attributable to a large loan loss recovery received during the quarter offset by the current period provision expense. Total noninterest income was $856,000 for the three months ended March 31, 2015 compared to $725,000 for the three months ended March 31, 2014. Noninterest expense was $2,633,000 for the three months ended March 31, 2015 and $2,436,000 for the three months ended March 31, 2014. 

For the nine months ended March 31, 2015, the Corporation reported net income of $2,353,000 or $1.84 per common share compared to $3,320,000 or $2.62 per common share for the nine months ended March 31, 2014. Net interest income for the nine months ended March 31, 2015 was $8,550,000 compared to $7,904,000 for the nine months ended March 31, 2014. The provision for loan losses was $480,000 for the nine months ended March 31, 2015 compared to a negative provision of $1,460,000 for the nine months ended March 31, 2014. Total noninterest income was $2,794,000 for the nine months ended March 31, 2015 compared to $2,147,000 for the nine months ended March 31, 2014. Noninterest expense was $7,740,000 for the nine months ended March 31, 2015 and $6,850,000 for the nine months ended March 31, 2014.

The three and nine months ended March 31, 2015 represented a return on average common equity of 8.37% and 9.45%, respectively, compared to 29.80% and 16.33% for the three and nine month periods ended March 31, 2014. The three and nine months ended March 31, 2015 represented a return on average assets of 0.85% and 0.93%, respectively, compared to 2.29% and 1.29%, for the three and nine month periods ended March 31, 2014.

The allowance for loan losses as a percentage of gross loans receivable was 1.49% at March 31, 2015 compared to 1.29% at June 30, 2014. Nonperforming assets were $6,508,000 at March 31, 2015 compared to $7,084,000 at June 30, 2014.

As of March 31, 2015, FFWC's equity-to-assets ratio was 10.63% compared to 10.08% at June 30, 2014. Total assets at March 31, 2015 were $332,284,000 compared to $335,496,000 at June 30, 2014. Shareholders' equity was $35,313,000 at March 31, 2015 compared to $33,830,000 at June 30, 2014. 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 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
				March 31				June 30
				2015				2014
				Unaudited
Assets
Cash and due from financial institutions				$	5,319,760			$	6,729,693
Interest-earning deposits in other financial institutions					4,456,368				5,706,136
	Cash and cash equivalents				9,776,128				12,435,829
Securities available for sale					78,997,365				83,751,842
Loans receivable, net of allowance for loan losses of $3,370,000 at March 31, 2015 and $2,851,000 at June 30, 2014					222,377,601				217,629,375
Loans held for sale					336,500				286,800
Federal Home Loan Bank stock, at cost					2,136,700				2,717,300
Accrued interest receivable					1,528,444				1,769,840
Premises and equipment, net					4,502,176				3,278,681
Mortgage servicing rights					724,075				680,362
Cash surrender value of life insurance					7,676,272				7,473,117
Goodwill					1,213,898				1,213,898
Deferred tax asset					52,536				1,058,029
Other assets					2,962,243				3,200,907
	Total assets			$	332,283,938			$	335,495,980
Liabilities and shareholders' equity
Deposits
	Noninterest-bearing deposits			$	32,160,385			$	29,462,977
	Interest-bearing deposits				248,571,982				266,730,899
		Total deposits			280,732,367				296,193,876
Borrowings					14,058,400				3,258,400
Accrued expenses and other liabilities					2,180,627				2,213,560
	Total liabilities				296,971,394				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 - 1,039 shares outstanding March 31, 2015 and 2,539 shares June 30, 2014, $1,051,000 liquidation preference March 31, 2015 and $2,568,000 June 30, 2014				1,039,000				2,539,000
	Series B, 9% Fixed Rate Cumulative Perpetual Preferred Stock - 364 shares outstanding March 31, 2015 and June 30, 2014, $368,000 liquidation preference March 31, 2015 and June 30, 2014				364,000				364,000
	Series C, 5% Fixed Rate Cumulative Perpetual Preferred Stock - 3,250 shares outstanding March 31, 2015 and June 30, 2014, $3,271,000 liquidation preference March 31, 2015 and June 30, 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 March 31, 2015 and 1,132,084 June 30, 2014				18,363				18,363
Additional paid-in capital					9,435,692				9,446,708
Retained earnings					30,531,282				28,870,083
Accumulated other comprehensive income					1,330,831				152,114
Treasury stock, at cost: 694,244 shares at March 31, 2015 and 704,244 at June 30, 2014					(10,656,624	)			(10,810,124	)
	Total shareholders' equity				35,312,544				33,830,144
	Total liabilities and shareholders' equity			$	332,283,938			$	335,495,980

FFW Corporation
Selected Financial Information
Consolidated Statement of Income
				Three Months Ended March 31								Nine Months Ended March 31
				2015				2014				2015				2014
				Unaudited				Unaudited				Unaudited				Unaudited
Interest and dividend income:
	Loans, including fees			$	2,639,405			$	2,655,788			$	7,880,613			$	7,910,628
	Taxable securities				270,990				354,702				890,662				1,049,652
	Tax exempt securities				316,388				305,965				947,625				905,363
	Other				4,413				8,793				16,779				35,838
		Total interest and dividend income			3,231,196				3,325,248				9,735,679				9,901,481
Interest expense:
	Deposits				295,332				532,286				1,066,428				1,885,736
	Borrowings				34,934				32,942				119,422				111,372
		Total interest expense			330,266				565,228				1,185,850				1,997,108
Net interest income					2,900,930				2,760,020				8,549,829				7,904,373
Provision for loan losses					120,000				(1,820,000	)			480,000				(1,460,000	)
Net interest income after provision for loan losses					2,780,930				4,580,020				8,069,829				9,364,373
Noninterest income:
	Net gains on sales of securities				-				(17,413	)			51,449				35,267
	Net gains on sales of loans				103,884				61,438				327,903				209,994
	Net gains (losses) on fixed assets				(565	)			-				(565	)			6,481
	Commission income				229,233				261,135				728,534				699,627
	Service charges and fees				213,135				217,968				722,945				742,875
	Earnings on life insurance				67,498				65,757				203,155				199,670
	Other				242,341				135,702				760,945				253,519
		Total noninterest income			855,526				724,587				2,794,366				2,147,433
Noninterest expense:
	Salaries and benefits				1,207,211				1,215,946				3,662,274				3,439,701
	Occupancy and equipment				246,599				262,884				747,496				754,037
	Professional				133,544				250,200				397,682				579,064
	Marketing				42,072				41,852				120,484				127,582
	Deposit insurance premium				53,275				80,762				149,892				237,837
	Regulatory assessment				39,000				26,588				90,971				78,003
	Correspondent bank charges				13,998				20,605				45,133				62,462
	Data processing				153,674				150,790				466,523				467,843
	Printing, postage and supplies				52,173				69,157				172,104				185,022
	Expense on life insurance				20,315				18,818				60,944				56,453
	Contribution expense				11,951				9,300				38,295				29,078
	Other				659,438				289,322				1,788,274				833,028
		Total noninterest expense			2,633,250				2,436,224				7,740,072				6,850,110
Income before income taxes					1,003,206				2,868,383				3,124,123				4,661,696
Income tax expense					298,306				956,056				770,630				1,341,535
Net income				$	704,900			$	1,912,327			$	2,353,493			$	3,320,161
Preferred stock dividends and discount accretion, net					72,193				114,641				260,079				349,649
Net income attributable to common shareholders				$	632,707			$	1,797,686			$	2,093,414			$	2,970,512

FFW Corporation
Selected Financial Information
Key Balances and Ratios
		Three Months Ended March 31								Nine Months Ended March 31
		2015				2014				2015				2014
		Unaudited				Unaudited				Unaudited				Unaudited
Per common share data:
Earnings		$	0.55			$	1.59			$	1.84			$	2.62
Diluted earnings		$	0.55			$	1.59			$	1.84			$	2.62
Dividends paid		$	0.135			$	0.11			$	0.380			$	0.33
Average shares issued and outstanding			1,141,306				1,132,084				1,135,478				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 **			3.74	%			3.49	%			3.60	%			3.22	%
Return on average assets ***			0.85	%			2.29	%			0.93	%			1.29	%
Return on average common equity ***			8.37	%			29.80	%			9.45	%			16.33	%
			March 31				June 30
			2015				2014
Nonperforming assets *		$	6,508,011			$	7,084,099
Repossessed assets		$	2,040,408			$	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