SOURCE: FFW Corporation

January 25, 2012 11:07 ET

FFW Corporation Announces Earnings for the Quarter and Year to Date Ended December 31, 2011

WABASH, IN--(Marketwire - Jan 25, 2012) - FFW Corporation (the "Corporation") (OTCBB: FFWC) (1/24/2012 Close: $11.75), parent corporation of Crossroads Bank, announced earnings for the quarter and year to date ended December 31, 2011.

For the three months ended December 31, 2011, the Corporation reported net income of $708,000 or $0.53 per common share compared to $800,000 or $0.61 per common share for the three months ended December 31, 2010. The net interest margin for the three months ended December 31, 2011 was $2,454,000 compared to $2,419,000 for the three months ended December 31, 2010. The provision for loan losses decreased from $370,000 for the period ended December 31, 2010 to $300,000 for the period ended December 31, 2011. Total noninterest income was $824,000 for the three months ended December 31, 2011 and $996,000 for the three months ended December 31, 2010. Noninterest expense was $2,026,000 for the three months ended December 31, 2011 and $1,950,000 for the three months ended December 31, 2010.

For the six months ended December 31, 2011, the Corporation reported net income of $1,392,000 or $1.03 per common share compared to $1,293,000 or $0.94 per common share for the six months ended December 31, 2010. The net interest margin for the six months ended December 31, 2011 was $4,838,000 compared to $4,769,000 for the six months ended December 31, 2010. The provision for loan losses decreased from $845,000 for the period ended December 31, 2010 to $600,000 for the period ended December 31, 2011. Total noninterest income was $1,697,000 for the six months ended December 31, 2011 and $1,864,000 for the six months ended December 31, 2010. Noninterest expense was $4,086,000 for the six months ended December 31, 2011 and $4,026,000 for the six months ended December 31, 2010.

The three and six months ended December 31, 2011 represented a return on average common equity of 9.75% and 9.76%, respectively, compared to 12.23% and 9.48% for the three and six month periods ended December 31, 2010. The three and six months ended December 31, 2011 represented a return on average assets of 0.85% and 0.84%, respectively, compared to 0.94% and 0.76% for the three and six month periods ended December 31, 2010.

The allowance for loan losses as a percentage of gross loans receivable was 1.49% at December 31, 2011 and 1.39% at June 30, 2011. Nonperforming assets were $13,735,000 at December 31, 2011 and $13,141,000 at June 30, 2011.

As of December 31, 2011, FFWC's equity-to-assets ratio was 9.71% compared to 9.23% at June 30, 2011. Total assets at December 31, 2011 were $326,150,000 compared to $323,018,000 at June 30, 2011. Shareholders' equity was $31,667,000 at December 31, 2011 compared to $29,830,000 at June 30, 2011. 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
December 31 June 30
2011 2011
Unaudited
Assets
Cash and due from financial institutions $ 6,421,624 $ 3,711,671
Interest-earning deposits in other financial institutions 11,326,991 2,840,994
Cash and cash equivalents 17,748,615 6,552,665
Securities available for sale 72,550,459 71,219,096
Loans receivable, net of allowance for loan losses of $3,237,115 at
December 31, 2011 and $3,147,896 at June 30, 2011 213,904,058 222,348,968
Loans held for sale 570,565 241,400
Federal Home Loan Bank stock, at cost 2,717,300 2,717,300
Accrued interest receivable 1,584,525 1,635,370
Premises and equipment, net 3,708,167 3,695,172
Mortgage servicing rights 411,789 444,950
Cash surrender value of life insurance 6,798,765 6,655,864
Goodwill 1,213,898 1,213,898
Deferred tax asset 1,206,787 1,653,133
Other assets 3,734,906 4,640,682
Total assets $ 326,149,834 $ 323,018,498
Liabilities and shareholders' equity
Deposits
Noninterest-bearing deposits $ 21,284,276 $ 17,954,304
Interest-bearing deposits 257,495,060 257,585,276
Total deposits 278,779,336 275,539,580
Borrowings 14,334,650 15,986,695
Accrued expenses and other liabilities 1,368,961 1,662,503
Total liabilities 294,482,947 293,188,778
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, 2011, $7,336,000 liquidation preference 7,126,231 7,085,539
Series B, 9% Fixed Rate Cumulative Perpetual Preferred Stock - 364 shares outstanding September 30, 2011, $368,000 liquidation preference 381,169 385,461
Common stock, $.01 par; 2,000,000 shares authorized; issued: 1,836,328 outstanding: 1,121,884 shares - December 31, 2011 and June 30, 2011 18,363 18,363
Additional paid-in capital 9,465,600 9,435,162
Retained earnings 25,128,982 24,095,722
Accumulated other comprehensive income 513,236 (223,833 )
Treasury stock, at cost: 714,444 shares - December 31, 2011 and June 30, 2011 (10,966,694 ) (10,966,694 )
Total shareholders' equity 31,666,887 29,829,720
Total liabilities and shareholders' equity $ 326,149,834 $ 323,018,498
FFW Corporation
Selected Financial Information
Consolidated Statement of Income
Three Months Ended December 31 Six Months Ended December 31
2011 2010 2011 2010
Unaudited Unaudited Unaudited Unaudited
Interest and dividend income:
Loans, including fees $ 2,935,840 $ 3,064,258 $ 5,848,527 $ 6,180,322
Taxable securities 509,567 620,845 702,679 877,677
Tax exempt securities 132,809 156,186 601,087 682,099
Other 7,304 13,778 9,749 22,096
Total interest and dividend income 3,585,520 3,855,067 7,162,042 7,762,194
Interest expense:
Deposits 998,253 1,202,595 2,054,917 2,476,922
Borrowings 133,210 233,610 269,136 516,697
Total interest expense 1,131,463 1,436,205 2,324,053 2,993,619
Net interest income 2,454,057 2,418,862 4,837,989 4,768,575
Provision for loan losses 300,000 370,000 600,000 845,000
Net interest income after provision for loan losses 2,154,057 2,048,862 4,237,989 3,923,575
Noninterest income:
Net gains on sales of securities 144,412 157,970 308,000 257,739
Net gains on sales of loans 199,488 158,078 293,911 319,235
Net gains (losses) on fixed assets - - - -
Other than temporary impairment on securities (88,000 ) - (88,000 ) -
Commission income 168,810 168,717 324,259 329,683
Service charges and fees 277,325 462,322 531,996 780,420
Earnings on life insurance 70,853 70,199 142,900 141,096
Other 51,597 (20,969 ) 183,679 35,604
Total noninterest income 824,485 996,317 1,696,745 1,863,777
Noninterest expense:
Salaries and benefits 1,038,190 982,765 2,089,059 2,015,592
Occupancy and equipment 248,284 242,077 496,418 492,841
Professional 101,143 96,524 187,261 197,571
Marketing 49,962 42,048 93,323 82,920
Deposit insurance premium 91,662 119,896 202,916 238,787
Regulatory assessment 33,279 25,441 68,490 50,883
Correspondent bank charges 20,373 19,088 35,614 40,435
Data processing 120,112 94,048 243,424 220,398
Printing, postage and supplies 53,590 55,762 110,837 107,204
Expense on life insurance 16,108 (4,857 ) 32,216 11,213
Contribution expense 19,505 18,757 35,969 37,380
Other 233,373 258,106 490,870 530,519
Total noninterest expense 2,025,581 1,949,655 4,086,397 4,025,743
Income before income taxes 952,961 1,095,524 1,848,337 1,761,609
Income tax expense 244,871 295,245 456,666 468,301
Net income $ 708,090 $ 800,279 $ 1,391,671 $ 1,293,308
Preferred stock dividends and discount accretion, net 117,504 117,504 235,008 235,008
Net income attributable to common shareholders $ 590,586 $ 682,775 $ 1,156,663 $ 1,058,300
FFW Corporation
Selected Financial Information
Key Balances and Ratios
Three Months Ended December 31 Six Months Ended December 31
2011 2010 2011 2010
Unaudited Unaudited Unaudited Unaudited
Per common share data:
Earnings $ 0.53 $ 0.61 $ 1.03 $ 0.94
Diluted earnings $ 0.53 $ 0.61 $ 1.03 $ 0.94
Dividends paid $ 0.11 $ 0.22 $ 0.11 $ 0.44
Average shares issued and outstanding 1,121,884 1,122,516 1,121,884 1,123,491
Shares outstanding end of period 1,121,884 1,121,884 1,121,884 1,121,884
Supplemental data:
Net interest margin ** 3.15 % 3.00 % 3.12 % 2.96 %
Return on average assets *** 0.85 % 0.94 % 0.84 % 0.76 %
Return on average common equity *** 9.75 % 12.23 % 9.76 % 9.48 %
December 31 June 30
2011 2011
Nonperforming assets * $ 13,734,952 $ 13,140,830
Repossessed assets $ 1,789,674 $ 2,502,944

* 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