SOURCE: FFW Corporation

April 25, 2012 10:11 ET

FFW Corporation Announces Earnings for the Quarter and Year to Date Ended March 31, 2012

WABASH, IN--(Marketwire - Apr 25, 2012) - FFW Corporation (the "Corporation") (OTCBB: FFWC) (4/24/2012 Close: $15.25), parent corporation of Crossroads Bank, announced earnings for the quarter and year to date ended March 31, 2012.

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

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    260-563-3185