WABASH, IN--(Marketwire - Apr 25, 2012) - FFW Corporation (the "Corporation") (
For the three months ended March 31, 2012, the Corporation reported net income of $737,000 or $0.55 per common share compared to $644,000 or $0.47 per common share for the three months ended March 31, 2011. The net interest margin for the three months ended March 31, 2012 was $2,350,000 compared to $2,507,000 for the three months ended March 31, 2011. The provision for loan losses was $300,000 in each of the quarters ended March 31. Total noninterest income was $805,000 for the three months ended March 31, 2012 and $645,000 for the three months ended March 31, 2011. Noninterest expense was $2,118,000 for the three months ended March 31, 2012 and $1,972,000 for the three months ended March 31, 2011. The decline in income tax expense from the quarter ended March 31, 2011 to the quarter ended March 31, 2012 is primarily attributable to the Corporation's investment in a low income housing partnership.
For the nine months ended March 31, 2012, the Corporation reported net income of $2,129,000 or $1.58 per common share compared to $1,937,000 or $1.41 per common share for the nine months ended March 31, 2011. The net interest margin for the nine months ended March 31, 2012 was $7,188,000 compared to $7,275,000 for the nine months ended March 31, 2011. The provision for loan losses decreased from $1,145,000 for the period ended March 31, 2011 to $900,000 for the period ended March 31, 2012. Total noninterest income was $2,502,000 for the nine months ended March 31, 2012 and $2,509,000 for the nine months ended March 31, 2011. Noninterest expense was $6,204,000 for the nine months ended March 31, 2012 and $5,998,000 for the nine months ended March 31, 2011.
The three and nine months ended March 31, 2012 represented a return on average common equity of 10.09% and 9.87%, respectively, compared to 9.93% and 9.63% for the three and nine month periods ended March 31, 2011. The three and nine months ended March 31, 2012 represented a return on average assets of 0.90% and 0.86%, respectively, compared to 0.80% and 0.77% for the three and nine month periods ended March 31, 2011.
The allowance for loan losses as a percentage of gross loans receivable was 1.53% at March 31, 2012 and 1.39% at June 30, 2011. Nonperforming assets were $12,927,000 at March 31, 2012 and $13,141,000 at June 30, 2011.
As of March 31, 2012, FFWC's equity-to-assets ratio was 9.64% compared to 9.23% at June 30, 2011. Total assets at March 31, 2012 were $331,524,000 compared to $323,018,000 at June 30, 2011. Shareholders' equity was $31,963,000 at March 31, 2012 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 | ||||||||||
| March 31 | June 30 | |||||||||
| 2012 | 2011 | |||||||||
| Unaudited | ||||||||||
| Assets | ||||||||||
| Cash and due from financial institutions | $ | 5,172,282 | $ | 3,711,671 | ||||||
| Interest-earning deposits in other financial institutions | 18,422,545 | 2,840,994 | ||||||||
| Cash and cash equivalents | 23,594,827 | 6,552,665 | ||||||||
| Securities available for sale | 76,936,173 | 71,219,096 | ||||||||
| Loans receivable, net of allowance for loan losses of $3,270,478 at March 31, 2012 and $3,147,896 at June 30, 2011 | 208,952,717 | 222,348,968 | ||||||||
| Loans held for sale | 1,148,210 | 241,400 | ||||||||
| Federal Home Loan Bank stock, at cost | 2,717,300 | 2,717,300 | ||||||||
| Accrued interest receivable | 1,509,917 | 1,635,370 | ||||||||
| Premises and equipment, net | 3,631,589 | 3,695,172 | ||||||||
| Mortgage servicing rights | 498,232 | 444,950 | ||||||||
| Cash surrender value of life insurance | 6,868,561 | 6,655,864 | ||||||||
| Goodwill | 1,213,898 | 1,213,898 | ||||||||
| Deferred tax asset | 1,344,522 | 1,653,133 | ||||||||
| Other assets | 3,108,503 | 4,640,682 | ||||||||
| Total assets | $ | 331,524,449 | $ | 323,018,498 | ||||||
| Liabilities and shareholders' equity | ||||||||||
| Deposits | ||||||||||
| Noninterest-bearing deposits | $ | 25,051,302 | $ | 17,954,304 | ||||||
| Interest-bearing deposits | 258,636,046 | 257,585,276 | ||||||||
| Total deposits | 283,687,348 | 275,539,580 | ||||||||
| Borrowings | 14,258,400 | 15,986,695 | ||||||||
| Accrued expenses and other liabilities | 1,616,105 | 1,662,503 | ||||||||
| Total liabilities | 299,561,853 | 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 March 31, 2012, $7,335,000 liquidation preference | 7,146,578 | 7,085,539 | ||||||||
| Series B, 9% Fixed Rate Cumulative Perpetual Preferred Stock - 364 shares outstanding March 31, 2012, $368,000 liquidation preference | 379,022 | 385,461 | ||||||||
| Common stock, $.01 par; 2,000,000 shares authorized; issued shares: 1,836,328 outstanding shares: 1,122,084 and 1,121,884, respectively | 18,363 | 18,363 | ||||||||
| Additional paid-in capital | 9,480,588 | 9,435,162 | ||||||||
| Retained earnings | 25,625,004 | 24,095,722 | ||||||||
| Accumulated other comprehensive income | 276,665 | (223,833 | ) | |||||||
| Treasury stock, at cost: 714,244 shares and 714,444 shares, respectively | (10,963,624 | ) | (10,966,694 | ) | ||||||
| Total shareholders' equity | 31,962,596 | 29,829,720 | ||||||||
| Total liabilities and shareholders' equity | $ | 331,524,449 | $ | 323,018,498 | ||||||
| FFW Corporation | ||||||||||||||||
| Selected Financial Information | ||||||||||||||||
| Consolidated Statement of Income | ||||||||||||||||
| Three Months Ended March 31 | Nine Months Ended March 31 | |||||||||||||||
| 2012 | 2011 | 2012 | 2011 | |||||||||||||
| Unaudited | Unaudited | Unaudited | Unaudited | |||||||||||||
| Interest and dividend income: | ||||||||||||||||
| Loans, including fees | $ | 2,775,302 | $ | 2,980,148 | $ | 8,623,827 | $ | 9,160,471 | ||||||||
| Taxable securities | 512,215 | 599,583 | 1,553,621 | 1,848,872 | ||||||||||||
| Tax exempt securities | 133,334 | 147,116 | 395,692 | 457,602 | ||||||||||||
| Other | 9,481 | 4,906 | 19,230 | 27,003 | ||||||||||||
| Total interest and dividend income | 3,430,332 | 3,731,753 | 10,592,370 | 11,493,948 | ||||||||||||
| Interest expense: | ||||||||||||||||
| Deposits | 950,241 | 1,092,088 | 3,005,159 | 3,569,009 | ||||||||||||
| Borrowings | 130,338 | 132,830 | 399,474 | 649,527 | ||||||||||||
| Total interest expense | 1,080,579 | 1,224,918 | 3,404,633 | 4,218,536 | ||||||||||||
| Net interest income | 2,349,753 | 2,506,835 | 7,187,737 | 7,275,412 | ||||||||||||
| Provision for loan losses | 300,000 | 300,000 | 900,000 | 1,145,000 | ||||||||||||
| Net interest income after provision for loan losses | 2,049,753 | 2,206,835 | 6,287,737 | 6,130,412 | ||||||||||||
| Noninterest income: | ||||||||||||||||
| Net gains on sales of securities | 148 | - | 308,148 | 257,739 | ||||||||||||
| Net gains on sales of loans | 283,019 | 134,942 | 576,930 | 454,177 | ||||||||||||
| Net gains (losses) on fixed assets | - | 5,001 | - | 5,001 | ||||||||||||
| Other than temporary impairment on securities | (2,573 | ) | - | (90,573 | ) | - | ||||||||||
| Commission income | 219,716 | 151,743 | 543,975 | 481,426 | ||||||||||||
| Service charges and fees | 273,109 | 261,941 | 805,106 | 1,042,362 | ||||||||||||
| Earnings on life insurance | 69,797 | 69,531 | 212,697 | 210,626 | ||||||||||||
| Other | (38,424 | ) | 21,830 | 145,254 | 57,435 | |||||||||||
| Total noninterest income | 804,792 | 644,988 | 2,501,537 | 2,508,766 | ||||||||||||
| Noninterest expense: | ||||||||||||||||
| Salaries and benefits | 1,079,490 | 965,227 | 3,168,549 | 2,980,819 | ||||||||||||
| Occupancy and equipment | 249,580 | 249,805 | 745,998 | 742,646 | ||||||||||||
| Professional | 85,649 | 94,091 | 272,910 | 291,662 | ||||||||||||
| Marketing | 44,654 | 33,037 | 137,977 | 115,957 | ||||||||||||
| Deposit insurance premium | 113,905 | 140,036 | 316,822 | 378,823 | ||||||||||||
| Regulatory assessment | 34,747 | 25,899 | 103,237 | 76,782 | ||||||||||||
| Correspondent bank charges | 19,623 | 20,370 | 55,237 | 60,805 | ||||||||||||
| Data processing | 127,863 | 103,529 | 371,287 | 323,927 | ||||||||||||
| Printing, postage and supplies | 63,956 | 61,531 | 174,794 | 168,736 | ||||||||||||
| Expense on life insurance | 16,108 | 14,902 | 48,325 | 26,116 | ||||||||||||
| Contribution expense | 14,325 | 17,636 | 50,295 | 55,017 | ||||||||||||
| Other | 267,700 | 246,208 | 758,567 | 776,724 | ||||||||||||
| Total noninterest expense | 2,117,600 | 1,972,271 | 6,203,998 | 5,998,014 | ||||||||||||
| Income before income taxes | 736,945 | 879,552 | 2,585,276 | 2,641,164 | ||||||||||||
| Income tax expense | 10 | 235,814 | 456,676 | 704,115 | ||||||||||||
| Net income | $ | 736,935 | $ | 643,738 | $ | 2,128,600 | $ | 1,937,049 | ||||||||
| Preferred stock dividends and discount accretion, net | 117,504 | 117,504 | 352,512 | 352,512 | ||||||||||||
| Net income attributable to common shareholders | $ | 619,431 | $ | 526,234 | $ | 1,776,088 | $ | 1,584,537 | ||||||||
| FFW Corporation | ||||||||||||||||
| Selected Financial Information | ||||||||||||||||
| Key Balances and Ratios | ||||||||||||||||
| Three Months Ended March 31 | Nine Months Ended March 31 | |||||||||||||||
| 2012 | 2011 | 2012 | 2011 | |||||||||||||
| Unaudited | Unaudited | Unaudited | Unaudited | |||||||||||||
| Per common share data: | ||||||||||||||||
| Earnings | $ | 0.55 | $ | 0.47 | $ | 1.58 | $ | 1.41 | ||||||||
| Diluted earnings | $ | 0.55 | $ | 0.47 | $ | 1.58 | $ | 1.41 | ||||||||
| Dividends paid | $ | 0.11 | $ | 0.22 | $ | 0.22 | $ | 0.66 | ||||||||
| Average shares issued and outstanding | 1,121,928 | 1,121,884 | 1,121,899 | 1,122,963 | ||||||||||||
| Shares outstanding end of period | 1,122,084 | 1,121,884 | 1,122,084 | 1,121,884 | ||||||||||||
| Supplemental data: | ||||||||||||||||
| Net interest margin ** | 3.06 | % | 3.33 | % | 3.10 | % | 3.08 | % | ||||||||
| Return on average assets *** | 0.90 | % | 0.80 | % | 0.86 | % | 0.77 | % | ||||||||
| Return on average common equity *** | 10.09 | % | 9.93 | % | 9.87 | % | 9.63 | % | ||||||||
| March 31 | June 30 | |||||||||||||||
| 2012 | 2011 | |||||||||||||||
| Nonperforming assets * | $ | 12,927,496 | $ | 13,140,830 | ||||||||||||
| Repossessed assets | $ | 1,471,133 | $ | 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:
FOR MORE INFORMATION
Contact:
Emily Boardman
Treasurer
260-563-3185