SOURCE: FFW Corporation

August 11, 2014 09:54 ET

FFW Corporation Announces Earnings for the Year Ended June 30, 2014

WABASH, IN--(Marketwired - Aug 11, 2014) -  FFW Corporation (the "Corporation") (OTCBB: FFWC) (08/08/14 Close: $21.00), parent corporation of Crossroads Bank, announced earnings for the year ended June 30, 2014.

For the three months ended June 30, 2014, the Corporation reported net income of $766,000 or $0.58 per common share compared to $698,000 or $0.52 per common share for the three months ended June 30, 2013. The net interest margin for the three months ended June 30, 2014 was $2,752,000 compared to $2,432,000 for the three months ended June 30, 2013. The provision for loan losses was $180,000 for the period ended June 30, 2014 and $210,000 for the period ended June 30, 2013. Total noninterest income was $764,000 for the three months ended June 30, 2014 compared to $818,000 for the three months ended June 30, 2013. Noninterest expense was $2,277,000 for the three months ended June 30, 2014 and $2,187,000 for the three months ended June 30, 2013. 

For the twelve months ended June 30, 2014, the Corporation reported net income of $4,086,000 or $3.21 per common share compared to $2,729,000 or $2.01 per common share for the twelve months ended June 30, 2013. The net interest margin for the twelve months ended June 30, 2014 was $10,656,000 compared to $9,413,000 for the twelve months ended June 30, 2013. The provision for loan losses was $840,000 expense for the period ended June 30, 2013 and $1,280,000 income for the period ended June 30, 2014. The income recognized through provision was attributable to a large loan loss recovery received during the third fiscal quarter of 2014. Total noninterest income was $2,911,000 for the twelve months ended June 30, 2014 compared to $3,284,000 for the twelve months ended June 30, 2013. Noninterest expense was $9,127,000 for the twelve months ended June 30, 2014 and $8,617,000 for the twelve months ended June 30, 2013.

The three and twelve months ended June 30, 2014 represented a return on average common equity of 9.64% and 14.50%, respectively, compared to 9.17% and 9.14% for the three and twelve month periods ended June 30, 2013. The three and twelve months ended June 30, 2014 represented a return on average assets of 0.89% and 1.19%, respectively, compared to 0.82% and 0.81%, for the three and twelve month periods ended June 30, 2013.

The allowance for loan losses as a percentage of gross loans receivable was 1.29% at June 30, 2014 compared to 1.43% at June 30, 2013. Nonperforming assets were $7,084,000 at June 30, 2014 compared to $9,794,000 at June 30, 2013.

As of June 30, 2014, FFWC's equity-to-assets ratio was 10.06% compared to 9.27% at June 30, 2013. Total assets at June 30, 2014 were $336,296,000 compared to $337,818,000 at June 30, 2013. Shareholders' equity was $33,830,000 at June 30, 2014 compared to $31,322,000 at June 30, 2013. Crossroads Bank exceeds all applicable regulatory requirements to be considered "well capitalized." 

On February 3, 2014, the Corporation redeemed 4,750 of the Corporation's shares of Fixed Rate Cumulative Preferred Stock, Series A, for $4,750,000, plus accrued dividends. Following the redemption, the Corporation continues to have outstanding 2,539 shares of its Fixed Rate Cumulative Preferred Stock, Series A and 364 shares of its Fixed Rate Cumulative Preferred Stock, Series B, which now pay dividends at 9% per year. The Corporation also has 3,250 shares of its Series C Preferred Stock issued on December 31, 2013. The Series C Preferred Stock is perpetual and non-voting, has a liquidation preference of $1,000, and pays annual dividends of 5% for the first three years, subject to possible increases to a maximum of 9% thereafter depending on changes in the prime rate of interest, payable quarterly. It is redeemable immediately for 100% of its liquidation preference plus declared and unpaid dividends.

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  
   
    June 30     June 30  
    2014     2013  
    Unaudited        
Assets                
Cash and due from financial institutions   $ 6,729,693     $ 4,353,619  
Interest-earning deposits in other financial institutions     5,706,136       11,647,346  
  Cash and cash equivalents     12,435,829       16,000,965  
                 
Securities available for sale     83,751,842       85,122,447  
Loans receivable, net of allowance for loan losses of $2,851,000 at June 30, 2014 and $3,132,000 at June 30, 2013     217,629,375       215,347,079  
Loans held for sale     286,800       113,600  
Federal Home Loan Bank stock, at cost     2,717,300       2,717,300  
Accrued interest receivable     1,769,840       1,719,787  
Premises and equipment, net     3,278,681       3,348,926  
Mortgage servicing rights     680,362       629,050  
Cash surrender value of life insurance     7,473,117       7,206,897  
Goodwill     1,213,898       1,213,898  
Deferred tax asset     1,858,201       2,392,638  
Other assets     3,200,907       2,005,096  
  Total assets   $ 336,296,152     $ 337,817,683  
                 
Liabilities and shareholders' equity                
Deposits                
  Noninterest-bearing deposits   $ 29,462,977     $ 27,397,357  
  Interest-bearing deposits     266,730,899       272,581,131  
    Total deposits     296,193,876       299,978,488  
                 
Borrowings     3,258,400       4,758,400  
Accrued expenses and other liabilities     3,013,732       1,758,769  
  Total liabilities     302,466,008       306,495,657  
                 
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 - 2,539 shares outstanding June 30, 2014 and 7,289 shares outstanding June 30, 2013, $2,568,000 liquidation preference June 30, 2014 and $7,336,000 liquidation preference June 30, 2013     2,539,000       7,248,308  
  Series B, 9% Fixed Rate Cumulative Perpetual Preferred Stock - 364 shares outstanding June 30, 2014 and 2013, $368,000 liquidation preference June 30, 2014 and 2013     364,000       368,292  
  Series C, 5% Fixed Rate Cumulative Perpetual Preferred Stock - 3,250 shares outstanding June 30, 2014, $3,271,000 liquidation preference     3,250,000       -  
Common stock, $.01 par; 2,000,000 shares authorized; issued shares: 1,836,328 outstanding shares: 1,132,084 at June 30, 2014 and 1,122,084 at June 30, 2013     18,363       18,363  
Additional paid-in capital     9,446,708       9,531,646  
Retained earnings     28,870,083       25,737,557  
Accumulated other comprehensive income     152,114       (618,516 )
Treasury stock, at cost: 704,244 shares at June 30, 2014 and 714,244 at June 30, 2013     (10,810,124 )     (10,963,624 )
  Total shareholders' equity     33,830,144       31,322,026  
                 
  Total liabilities and shareholders' equity   $ 336,296,152     $ 337,817,683  
                 
                 
                 
FFW Corporation  
Selected Financial Information  
   
Consolidated Statement of Income  
   
    Three Months Ended
June 30
    Twelve Months Ended
June 30
 
    2014   2013     2014     2013  
    Unaudited   Unaudited     Unaudited        
Interest and dividend income:                              
  Loans, including fees   $ 2,620,741   $ 2,604,953     $ 10,531,363     $ 10,513,322  
  Taxable securities     312,946     359,961       1,362,600       1,639,864  
  Tax exempt securities     311,154     279,881       1,216,517       979,359  
  Other     11,419     16,826       47,257       34,931  
    Total interest and dividend income     3,256,260     3,261,621       13,157,737       13,167,476  
                               
Interest expense:                              
  Deposits     471,381     779,344       2,357,116       3,413,966  
  Borrowings     32,802     50,090       144,174       340,708  
    Total interest expense     504,183     829,434       2,501,290       3,754,674  
                               
Net interest income     2,752,077     2,432,187       10,656,447       9,412,802  
                               
Provision for loan losses     180,000     210,000       (1,280,000 )     840,000  
                               
Net interest income after provision for loan losses     2,572,077     2,222,187       11,936,447       8,572,802  
                               
Noninterest income:                              
  Net gains on sales of securities     50,625     70,102       85,892       316,343  
  Net gains on sales of loans     107,578     169,403       317,572       881,112  
  Net gains (losses) on fixed assets     2,186     -       8,668       -  
  Other than temporary impairment on securities     -     (21,685 )     -       (104,526 )
  Commission income     243,963     212,637       943,590       785,003  
  Service charges and fees     233,269     271,314       976,143       1,023,462  
  Earnings on life insurance     66,550     67,233       266,220       267,920  
  Other     59,682     49,356       313,203       114,281  
    Total noninterest income     763,853     818,360       2,911,288       3,283,595  
                               
Noninterest expense:                              
  Salaries and benefits     1,186,474     1,062,417       4,626,176       4,260,263  
  Occupancy and equipment     249,913     251,497       1,003,951       1,007,006  
  Professional     177,949     156,999       757,015       502,541  
  Marketing     30,604     41,694       158,185       168,713  
  Deposit insurance premium     63,233     71,138       301,071       415,133  
  Regulatory assessment     26,588     38,415       104,591       150,475  
  Correspondent bank charges     22,271     24,325       84,733       95,974  
  Data processing     153,078     152,632       620,921       567,738  
  Printing, postage and supplies     54,540     49,487       239,562       234,039  
  Expense on life insurance     18,817     17,418       75,270       69,673  
  Contribution expense     12,933     7,745       42,010       40,550  
  Other     280,379     312,902       1,113,401       1,105,205  
    Total noninterest expense     2,276,779     2,186,669       9,126,886       8,617,310  
                               
Income before income taxes     1,059,151     853,878       5,720,849       3,239,087  
                               
Income tax expense     293,083     155,565       1,634,618       509,702  
                               
Net income   $ 766,068   $ 698,313     $ 4,086,231     $ 2,729,385  
Preferred stock dividends and discount accretion, net     105,941     117,504       455,590       470,010  
Net income attributable to common shareholders   $ 660,127   $ 580,809     $ 3,630,641     $ 2,259,375  
                               
                               
                               
FFW Corporation  
Selected Financial Information  
   
Key Balances and Ratios  
   
    Three Months Ended June 30     Twelve Months Ended June 30  
    2014     2013     2014     2013  
    Unaudited     Unaudited     Unaudited        
Per common share data:                                
Earnings   $ 0.58     $ 0.52     $ 3.21     $ 2.01  
Diluted earnings   $ 0.58     $ 0.52     $ 3.21     $ 2.01  
Dividends paid   $ 0.11     $ 0.11     $ 0.44     $ 0.33  
Average shares issued and outstanding     1,132,084       1,122,084       1,132,084       1,122,084  
Shares outstanding end of period     1,132,084       1,122,084       1,132,084       1,122,084  
                                 
Supplemental data:                                
Net interest margin **     3.42 %     3.00 %     3.27 %     2.99 %
Return on average assets ***     0.89 %     0.82 %     1.19 %     0.81 %
Return on average common equity ***     9.64 %     9.17 %     14.50 %     9.14 %
                                 
    June 30     June 30              
    2014     2013              
Nonperforming assets *   $ 7,084,099     $ 9,794,035                  
Repossessed assets   $ 2,003,040     $ 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

Contact Information

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    260-563-3185