SOURCE: FFW Corporation

April 27, 2011 10:32 ET

FFW Corporation Announces Earnings for the Quarter and Nine Months Ended March 31, 2011

WABASH, IN--(Marketwire - Apr 27, 2011) - FFW Corporation (the "Corporation") (OTCBB: FFWC) (4/26/2011 Close: $17.90), parent corporation of Crossroads Bank, announced earnings for the quarter and nine months ended March 31, 2011.

For the three months ended March 31, 2011, the Corporation reported net income of $644,000 or $0.47 per common share. This is compared to net income of $461,000 or $0.31 per common share for the three months ended March 31, 2010. The net interest margin for the three months ended March 31, 2011 was $2,507,000 compared to $2,475,000 for the three months ended March 31, 2010. The provision for loan losses decreased from $370,000 for the period ended March 31, 2010 to $300,000 for the period ended March 31, 2011. Total noninterest income was $645,000 for the three months ended March 31, 2011 and $548,000 for the three months ended March 31, 2010. Noninterest expense was $1,972,000 for the three months ended March 31, 2011 and $2,093,000 for the three months ended March 31, 2010.

For the nine months ended March 31, 2011, the Corporation reported net income of $1,937,000 or $1.41 per common share. This is compared to net income of $1,569,000 or $1.09 per common share for the nine months ended March 31, 2010. The net interest margin for the nine months ended March 31, 2011 was $7,275,000 compared to $7,474,000 for the nine months ended March 31, 2010. The provision for loan losses was $1,145,000 for the nine months ended March 31, 2011 and $1,620,000 for the nine months ended March 31, 2010. Total noninterest income was $2,509,000 for the nine months ended March 31, 2011 and $2,271,000 for the nine months ended March 31, 2010. Noninterest expense was $5,998,000 for the nine months ended March 31, 2011 and $6,157,000 for the nine months ended March 31, 2010.

The three and nine months ended March 31, 2011 represented a return on average common equity of 9.93% and 9.63%, respectively, compared to 6.67% and 7.67% for the three and nine month periods ended March 31, 2010. The three and nine months ended March 31, 2011 represented a return on average assets of 0.80% and 0.77%, respectively, compared to 0.56% and 0.62% for the three and nine month periods ended March 31, 2010.

The allowance for loan losses as a percentage of gross loans receivable was 1.66% at March 31, 2011 and 1.57% at June 30, 2010. Nonperforming assets were $10,281,000 at March 31, 2011 and $8,695,000 at June 30, 2010.

As of March 31, 2011, FFWC's equity-to-assets ratio was 8.92% compared to 8.64% at June 30, 2010. Total assets at March 31, 2011 were $322,244,000 compared to $333,564,000 at June 30, 2010. Shareholders' equity was $28,760,000 at March 31, 2011 compared to $28,804,000 at June 30, 2010. 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 Bulletin Board under the symbol "FFWC.OB." Our website address is www.crossroadsbanking.com.




                              FFW Corporation
                      Selected Financial Information
Consolidated Balance Sheet


                                                March 31        June 30
                                              -------------  -------------
                                                  2011           2010
                                              -------------  -------------
                                                Unaudited
Assets
Cash and due from financial institutions      $   3,957,333  $   3,229,138
Interest-earning deposits in other financial
 institutions                                     5,419,634      7,386,372
                                              -------------  -------------
   Cash and cash equivalents                      9,376,967     10,615,510
                                              -------------  -------------

Securities available for sale                    72,850,486     76,716,794
Loans receivable, net of allowance for loan
 losses of $3,673,095 at
   March 31, 2011 and $3,582,476 at June 30,
    2010                                        217,699,544    224,135,086
Loans held for sale                                       -         40,000
Federal Home Loan Bank stock, at cost             3,195,900      3,627,100
Accrued interest receivable                       1,747,856      1,645,286
Premises and equipment, net                       3,768,944      3,889,487
Mortgage servicing rights                           461,832        375,052
Cash surrender value of life insurance            6,585,621      6,374,995
Goodwill                                          1,213,898      1,213,898
Deferred tax asset                                2,106,506      1,893,647
Other assets                                      3,236,266      3,036,680
                                              -------------  -------------
   Total assets                               $ 322,243,820  $ 333,563,535
                                              =============  =============

Liabilities and shareholders' equity
Deposits
   Noninterest-bearing deposits               $  18,502,859  $  16,278,993
   Interest-bearing deposits                    258,996,540    262,550,500
                                              -------------  -------------
      Total deposits                            277,499,399    278,829,493
                                              -------------  -------------

Borrowings                                       14,563,945     24,699,557
Accrued expenses and other liabilities            1,420,756      1,230,602
                                              -------------  -------------
   Total liabilities                            293,484,100    304,759,652
                                              -------------  -------------

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, 2011, $7,334,000
    liquidation preference                        7,065,193      7,004,155
   Series B, 9% Fixed Rate Cumulative
    Perpetual Preferred Stock - 364 shares
    outstanding March 31, 2011, $368,000
    liquidation preference                          387,607        394,045
Common stock, $.01 par; 2,000,000 shares
 authorized;
   issued: 1,836,328
   outstanding: 1,121,885 shares - March 31,
    2011 and 1,117,260 shares - June 30, 2010        18,363         18,363
Additional paid-in capital                        9,419,928      9,440,356
Retained earnings                                23,723,253     22,880,556
Accumulated other comprehensive income             (887,946)       104,080
Treasury stock, at cost: 714,443 shares -
 March 31, 2011 and 719,068 shares - June 30,
 2010                                           (10,966,678)   (11,037,672)
                                              -------------  -------------
   Total shareholders' equity                    28,759,720     28,803,883
                                              -------------  -------------

                                              -------------  -------------
   Total liabilities and shareholders' equity $ 322,243,820  $ 333,563,535
                                              =============  =============



Consolidated Statement of Income

                            Three Months Ended        Nine Months Ended
                                 March 31                 March 31
                         ------------------------ -------------------------
                            2011         2010        2011         2010
                         ----------- -----------  ----------- ------------
                         Unaudited    Unaudited   Unaudited     Unaudited
Interest and dividend
 income:
  Loans, including fees  $ 2,980,148 $ 3,355,577  $ 9,160,471 $ 10,474,932
  Taxable securities         599,583     637,842    1,848,872    1,929,098
  Tax exempt securities      147,116     165,477      457,602      517,280
  Other                        4,906       5,404       27,003       19,292
                         ----------- -----------  ----------- ------------
    Total interest and
     dividend income       3,731,753   4,164,300   11,493,948   12,940,602
                         ----------- -----------  ----------- ------------

Interest expense:
  Deposits                 1,092,088   1,338,513    3,569,009    4,203,575
  Borrowings                 132,830     350,304      649,527    1,263,034
                         ----------- -----------  ----------- ------------
    Total interest
     expense               1,224,918   1,688,817    4,218,536    5,466,609
                         ----------- -----------  ----------- ------------

Net interest income        2,506,835   2,475,483    7,275,412    7,473,993

Provision for loan
 losses                      300,000     370,000    1,145,000    1,620,000

Net interest income
 after provision for
  loan losses              2,206,835   2,105,483    6,130,412    5,853,993

Noninterest income:
  Net gains (losses) on
   sales of securities             -      (5,805)     257,739      468,903
  Net gains on sales of
   loans                     134,942      41,177      454,177      205,358
  Net gains on sales of
   fixed assets                5,001           -        5,001            -
  Other than temporary
   impairment on
   securities                      -           -            -     (150,000)
  Commission income          151,743     122,196      481,426      420,735
  Service charges and
   fees                      261,941     261,063    1,042,362      905,228
  Earnings on life
   insurance                  69,531      70,120      210,626      209,591
  Other                       21,830      59,319       57,435      210,915
                         ----------- -----------  ----------- ------------
    Total noninterest
     income                  644,988     548,070    2,508,766    2,270,730
                         ----------- -----------  ----------- ------------

Noninterest expense:
  Salaries and benefits      965,227   1,025,598    2,980,819    3,042,902
  Occupancy and
   equipment                 249,805     224,614      742,646      703,048
  Professional                94,091     130,629      291,662      291,250
  Marketing                   33,037      25,476      115,957       99,133
  Deposit insurance
   premium                   140,036     115,455      378,823      350,992
  Regulatory assessment       25,899      25,545       76,782       74,142
  Correspondent bank
   charges                    20,370      20,288       60,805       57,984
  Data processing            103,529     170,795      323,927      443,217
  Printing, postage and
   supplies                   61,531      61,603      168,736      189,107
  Expense on life
   insurance                  14,902      16,694       26,116       50,081
  Contribution expense        17,636      13,898       55,017       39,099
  Other                      246,208     262,484      776,724      816,002
                         ----------- -----------  ----------- ------------
    Total noninterest
     expense               1,972,271   2,093,079    5,998,014    6,156,957
                         ----------- -----------  ----------- ------------

Income before income
 taxes                       879,552     560,474    2,641,164    1,967,766

Income tax expense           235,814      99,065      704,115      399,213

                         ----------- -----------  ----------- ------------
Net income               $   643,738 $   461,409  $ 1,937,049 $  1,568,553
                         =========== ===========  =========== ============
Preferred stock
 dividends and discount
 accretion, net              117,504     117,503      352,512      352,508
                         ----------- -----------  ----------- ------------
Net income attributable
 to common shareholders  $   526,234 $   343,906  $ 1,584,537 $  1,216,045
                         =========== ===========  =========== ============



                           Three Months Ended        Nine Months Ended
                                March 31                  March 31
                       -------------------------  ------------------------
                           2011          2010         2011         2010
                       ------------  -----------  -----------  -----------
                         Unaudited    Unaudited    Unaudited    Unaudited
Per common share data:
Earnings               $       0.47  $      0.31  $      1.41  $      1.09
Diluted earnings       $       0.47  $      0.31  $      1.41  $      1.09
Dividends paid         $       0.22  $      0.22  $      0.66  $      0.66
Average shares issued
 and outstanding          1,121,885    1,115,871    1,122,963    1,113,446
Shares outstanding end
 of period                1,121,885    1,117,260    1,121,885    1,117,260

Supplemental data:
Net interest margin **         3.33%        3.16%        3.08%        3.12%
Return on average
 assets ***                    0.80%        0.56%        0.77%        0.62%
Return on average
 common equity ***             9.93%        6.67%        9.63%        7.67%

                         March 31      June 30
                       ------------  -----------
                           2011         2010
                       ------------  -----------
Nonperforming assets * $ 10,280,656  $ 8,694,798
Repossessed assets     $  1,686,905  $ 1,230,635

*   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

  • FOR MORE INFORMATION
    Contact:
    Emily Boardman
    Treasurer
    260-563-3185