SOURCE: FFW Corporation

January 27, 2016 10:47 ET

FFW Corporation Announces Earnings for the Quarter and Year to Date Ended December 31, 2015

WABASH, IN--(Marketwired - January 27, 2016) - FFW Corporation (the "Corporation") (OTC PINK: FFWC) (1/26/16 Close: $24.70), parent corporation of Crossroads Bank (the "Bank"), announced earnings for the three and six months ended December 31, 2015.

For the three months ended December 31, 2015, the Corporation reported net income of $916,000 or $0.76 per common share compared to $781,000 or $0.62 per common share for the three months ended December 31, 2014. Net interest income for the three months ended December 31, 2015 was $2,856,000 compared to $2,838,000 for the three months ended December 31, 2014. The provision for loan losses was $40,000 for the three months ended December 31, 2015 and $180,000 for the three months ended December 31, 2014. Total noninterest income was $1,027,000 for the three months ended December 31, 2015 compared to $983,000 for the three months ended December 31, 2014. Noninterest expense was $2,678,000 for the three months ended December 31, 2015 and $2,622,000 for the three months ended December 31, 2014. 

For the six months ended December 31, 2015, the Corporation reported net income of $1,866,000 or $1.56 per common share compared to $1,649,000 or $1.29 per common share for the six months ended December 31, 2014. Net interest income for the six months ended December 31, 2015 was $5,747,000 compared to $5,649,000 for the six months ended December 31, 2014. The provision for loan losses was $120,000 for the six months ended December 31, 2015 and $360,000 for the six months ended December 31, 2014. Total noninterest income was $2,194,000 for the six months ended December 31, 2015 compared to $1,939,000 for the six months ended December 31, 2014. Noninterest expense was $5,439,000 for the six months ended December 31, 2015 and $5,107,000 for the six months ended December 31, 2014.

The three and six months ended December 31, 2015 represented a return on average common equity of 10.73% and 11.13%, respectively, compared to 9.43% and 10.01% for the three and six month periods ended December 31, 2014. The three and six months ended December 31, 2015 represented a return on average assets of 1.08 % and 1.11%, respectively, compared to 0.91% and 0.96%, for the three and six month periods ended December 31, 2014.

The allowance for loan losses as a percentage of gross loans receivable was 1.56% at December 31, 2015 compared to 1.45% at June 30, 2015. Nonperforming assets were $5,626,000 at December 31, 2015 compared to $5,897,000 at June 30, 2015.

As of December 31, 2015, FFWC's equity-to-assets ratio was 10.83% compared to 10.08% at June 30, 2015. Total assets at December 31, 2015 were $330,117,000 compared to $334,056,000 at June 30, 2015. Shareholders' equity was $35,742,000 at December 31, 2015 compared to $33,682,000 at June 30, 2015. Crossroads Bank exceeds all applicable regulatory requirements to be considered "well capitalized."

The Corporation and the Bank completed conversions effective December 31, 2015. The Corporation converted from a savings and loan holding company to a bank holding company subject to supervision by the Federal Reserve Bank of Chicago. The Bank converted from a federal thrift charter to an Indiana commercial bank charter subject to joint supervision by the Indiana Department of Financial Institutions and the Federal Deposit Insurance Corporation. 

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 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

  December 31   June 30  
  2015   2015  
  Unaudited      
Assets        
Cash and due from financial institutions $ 5,745,557   $ 4,154,036  
Interest-bearing deposits in other financial institutions   2,927,984     4,988,002  
  Cash and cash equivalents   8,673,541     9,142,038  
             
Securities available for sale   79,415,226     77,922,871  
Loans receivable, net of allowance for loan losses of $3,496,949 at December 31, 2015 and $3,314,307 at June 30, 2015            
  220,685,103     225,521,274  
Loans held for sale   149,850     104,932  
Federal Home Loan Bank stock, at cost   1,462,500     1,462,500  
Accrued interest receivable   1,722,289     1,707,661  
Premises and equipment, net   4,913,184     5,044,265  
Mortgage servicing rights   757,018     754,076  
Cash surrender value of life insurance   7,883,660     7,744,574  
Goodwill   1,213,898     1,213,898  
Repossessed Assets   1,934,958     1,968,808  
Other assets   1,305,691     1,469,251  
  Total assets $ 330,116,918   $ 334,056,148  
             
Liabilities and shareholders' equity            
Deposits            
  Noninterest-bearing $ 32,214,297   $ 30,780,793  
  Interest-bearing   252,018,388     234,698,904  
    Total deposits   284,232,685     265,479,697  
             
Borrowings   8,128,400     32,558,400  
Accrued expenses and other liabilities   2,014,269     2,335,878  
  Total liabilities   294,375,354     300,373,975  
             
Shareholders' equity            
Preferred stock, $.01 par; $1,000 liquidation value per share, 500,000 shares authorized;            
Series C, 5% Fixed Rate Cumulative Perpetual Preferred Stock - 3,250 shares outstanding December 31, 2015 and June 30, 2015, $3,271,000 liquidation preference at December 31, 2015 and June 30, 2015   3,250,000     3,250,000  
Common stock, $.01 par; 2,000,000 shares authorized;            
Issued: 1,836,328; outstanding: 1,154,084 - December 31, 2015 and June 30, 2015   18,363     18,363  
Additional paid-in capital   9,307,433     9,452,255  
Retained earnings   32,556,995     31,116,433  
Accumulated other comprehensive income   1,081,197     501,746  
Treasury stock, at cost: 682,244 shares at December 31, 2015 and 694,244 shares at June 30, 2015   (10,472,424 )   (10,656,624 )
  Total shareholders' equity   35,741,564     33,682,173  
             
  Total liabilities and shareholders' equity $ 330,116,918   $ 334,056,148  
             
             

FFW Corporation
Selected Financial Information

Consolidated Statement of Income

  Three Months Ended December 31 Six Months Ended December 31
  2015   2014 2015   2014
  Unaudited   Unaudited Unaudited   Unaudited
Interest and dividend income:            
  Loans, including fees $ 2,625,285   $ 2,633,803 $ 5,284,019   $ 5,241,208
  Taxable securities   314,618     293,245   634,845     619,672
  Tax exempt securities   254,357     315,808   502,181     631,237
  Other   6,278     5,926   10,389     12,366
    Total interest and dividend income   3,200,538     3,248,782   6,431,434     6,504,483
                     
Interest expense:                    
  Deposits   316,270     363,391   613,383     771,096
  Borrowings   28,554     46,975   70,643     84,488
    Total interest expense   344,824     410,366   684,026     855,584
                     
Net interest income   2,855,714     2,838,416   5,747,408     5,648,899
                     
Provision for loan losses   40,000     180,000   120,000     360,000
                     
Net interest income after provision for                    
loan losses   2,815,714     2,658,416   5,627,408     5,288,899
                     
Noninterest income:                    
  Net gains on sales of securities   -     25,023   -     51,449
  Net gains on sales of loans   121,222     117,085   263,817     224,019
  Net gains (losses) on fixed assets   (1,352 )   -   (1,352 )   -
  Other-than-temporary impairment on securities   -     -   -     -
  Commission income   239,586     254,916   486,954     499,301
  Service charges and fees   235,842     253,397   412,850     509,810
  Earnings on life insurance   70,106     68,398   139,086     135,657
  Income from REO   267,342     207,059   672,451     381,612
  Other   94,545     57,001   219,754     136,992
    Total noninterest income   1,027,291     982,879   2,193,560     1,938,840
                     
Noninterest expense:                    
  Salaries and benefits   1,267,105     1,235,161   2,520,402     2,455,063
  Occupancy and equipment   274,297     256,750   556,810     500,897
  Professional   168,955     127,741   382,247     264,138
  Marketing   54,780     42,782   116,192     78,412
  Deposit insurance premium   58,037     43,417   116,620     96,617
  Regulatory assessment   41,500     25,986   80,500     51,971
  Correspondent bank charges   16,144     15,027   30,461     31,135
  Data processing   108,192     159,118   208,590     312,849
  Printing, postage and supplies   66,265     67,290   139,082     119,931
  Expense on life insurance   21,913     20,314   43,826     40,629
  Contribution expense   10,060     11,208   19,448     26,344
  Expense on REO   307,726     350,670   646,438     587,591
  Other   282,754     266,326   578,193     541,245
    Total noninterest expense   2,677,728     2,621,790   5,438,809     5,106,822
                     
Income before income taxes   1,165,277     1,019,505   2,382,159     2,120,917
                     
Income tax expense   249,289     238,179   515,922     472,324
                     
Net income $ 915,988   $ 781,326 $ 1,866,237   $ 1,648,593
Preferred stock dividends   40,625     81,943   81,250     187,886
Net income attributable to common shareholders $ 875,363   $ 699,383 $ 1,784,987   $ 1,460,707
                     
                     

FFW Corporation
Selected Financial Information

Key Balances and Ratios

    Three Months Ended December 31   Six Months Ended December 31  
    2015   2014   2015   2014  
    Unaudited   Unaudited   Unaudited   Unaudited  
Per common share data:                
Earnings $ 0.76   $ 0.62   $ 1.56   $ 1.29  
Diluted earnings $ 0.76   $ 0.62   $ 1.56   $ 1.29  
Dividends paid $ 0.15   $ 0.135   $ 0.30   $ 0.245  
Average shares issued and outstanding   1,147,041     1,133,171     1,144,562     1,132,627  
Shares outstanding end of period   1,154,084     1,137,084     1,154,084     1,137,084  
                           
Supplemental data:                        
Net interest margin **   3.67 %   3.55 %   3.70 %   3.53 %
Return on average assets ***   1.08 %   0.91 %   1.11 %   0.96 %
Return on average common equity ***   10.73 %   9.43 %   11.13 %   10.01 %
                           
      December 31     June 30              
      2015     2015              
Nonperforming assets * $ 5,625,737   $ 5,896,625              
Repossessed assets $ 1,934,958   $ 1,968,808              
                           
* 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