SOURCE: FFW Corporation

April 27, 2016 09:57 ET

FFW Corporation Announces Earnings for the Quarter and Year to Date Ended March 31, 2016

WABASH, IN--(Marketwired - April 27, 2016) - FFW Corporation (the "Corporation") (OTC PINK: FFWC) (4/26/16 Close: $25.00), parent corporation of Crossroads Bank (the "Bank"), announced earnings for the three and nine months ended March 31, 2016.

For the three months ended March 31, 2016, the Corporation reported net income of $922,000 or $0.76 per common share compared to $705,000 or $0.55 per common share for the three months ended March 31, 2015. Net interest income for the three months ended March 31, 2016 was $2,885,000 compared to $2,901,000 for the three months ended March 31, 2015. The provision for loan losses was $80,000 for the three months ended March 31, 2016 and $120,000 for the three months ended March 31, 2015. Total noninterest income was $874,000 for the three months ended March 31, 2016 compared to $856,000 for the three months ended March 31, 2015. Noninterest expense was $2,505,000 for the three months ended March 31, 2016 and $2,633,000 for the three months ended March 31, 2015. 

For the nine months ended March 31, 2016, the Corporation reported net income of $2,788,000 or $2.32 per common share compared to $2,353,000 or $1.84 per common share for the nine months ended March 31, 2015. Net interest income for the nine months ended March 31, 2016 was $8,632,000 compared to $8,550,000 for the nine months ended March 31, 2015. The provision for loan losses was $200,000 for the nine months ended March 31, 2016 and $480,000 for the nine months ended March 31, 2015. Total noninterest income was $3,067,000 for the nine months ended March 31, 2016 compared to $2,794,000 for the nine months ended March 31, 2015. Noninterest expense was $7,944,000 for the nine months ended March 31, 2016 and $7,740,000 for the nine months ended March 31, 2015.

The three and nine months ended March 31, 2016 represented a return on average common equity of 10.56% and 10.93%, respectively, compared to 8.37% and 9.45% for the three and nine month periods ended March 31, 2015. The three and nine months ended March 31, 2016 represented a return on average assets of 1.09 % and 1.11%, respectively, compared to 0.85% and 0.93%, for the three and nine month periods ended March 31, 2015.

The allowance for loan losses as a percentage of gross loans receivable was 1.51% at March 31, 2016 compared to 1.45% at June 30, 2015. Nonperforming assets were $7,084,000 at March 31, 2016 compared to $5,897,000 at June 30, 2015.

As of March 31, 2016, FFWC's equity-to-assets ratio was 10.89% compared to 10.08% at June 30, 2015. Total assets at March 31, 2016 were $338,185,000 compared to $334,056,000 at June 30, 2015. Shareholders' equity was $36,843,000 at March 31, 2016 compared to $33,682,000 at June 30, 2015. 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 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
  March 31   June 30  
  2016   2015  
  Unaudited      
Assets        
Cash and due from financial institutions $ 3,533,484   $ 4,154,036  
Interest-bearing deposits in other financial institutions   6,168,270     4,988,002  
  Cash and cash equivalents   9,701,754     9,142,038  
             
Securities available for sale   79,517,847     77,922,871  
Loans receivable, net of allowance for loan losses of $3,483,013 at            
  March 31, 2016 and $3,314,307 at June 30, 2015   227,594,019     225,521,274  
Loans held for sale   288,125     104,932  
Federal Home Loan Bank stock, at cost   1,462,500     1,462,500  
Accrued interest receivable   1,578,516     1,707,661  
Premises and equipment, net   4,848,078     5,044,265  
Mortgage servicing rights   700,399     754,076  
Cash surrender value of life insurance   7,952,989     7,744,574  
Goodwill   1,213,898     1,213,898  
Repossessed Assets   2,010,958     1,968,808  
Other assets   1,315,951     1,469,251  
  Total assets $ 338,185,034   $ 334,056,148  
             
Liabilities and shareholders' equity            
Deposits            
  Noninterest-bearing $ 28,865,264   $ 30,780,793  
  Interest-bearing   251,583,398     234,698,904  
    Total deposits   280,448,662     265,479,697  
             
Borrowings   18,448,400     32,558,400  
Accrued expenses and other liabilities   2,444,522     2,335,878  
  Total liabilities   301,341,584     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 March 31, 2016 and June 30, 2015, $3,271,000 liquidation preference at March 31, 2016 and June 30, 2015   3,250,000     3,250,000  
Common stock, $.01 par; 2,000,000 shares authorized;            
  Issued: 1,836,328; outstanding: 1,156,084 - March 31, 2016 and 1,142,084 - June 30, 2015   18,363     18,363  
Additional paid-in capital   9,315,142     9,452,255  
Retained earnings   33,265,167     31,116,433  
Accumulated other comprehensive income   1,436,502     501,746  
Treasury stock, at cost: 680,244 shares at March 31, 2016 and 694,244 shares at June 30, 2015   (10,441,724 )   (10,656,624 )
  Total shareholders' equity   36,843,450     33,682,173  
             
  Total liabilities and shareholders' equity $ 338,185,034   $ 334,056,148  
             
 
 
FFW Corporation
Selected Financial Information
 
Consolidated Statement of Income
  Three Months Ended March 31   Nine Months Ended March 31  
  2016   2015   2016   2015  
  Unaudited   Unaudited   Unaudited   Unaudited  
Interest and dividend income:                
  Loans, including fees $ 2,650,231   $ 2,639,405   $ 7,934,250   $ 7,880,613  
  Taxable securities   328,266     270,990     963,111     890,662  
  Tax exempt securities   257,792     316,388     759,973     947,625  
  Other   7,714     4,413     18,103     16,779  
    Total interest and dividend income   3,244,003     3,231,196     9,675,437     9,735,679  
                         
Interest expense:                        
  Deposits   318,559     295,332     931,942     1,066,428  
  Borrowings   40,738     34,934     111,381     119,422  
    Total interest expense   359,297     330,266     1,043,323     1,185,850  
                         
Net interest income   2,884,706     2,900,930     8,632,114     8,549,829  
                         
Provision for loan losses   80,000     120,000     200,000     480,000  
                         
Net interest income after provision for                        
loan losses   2,804,706     2,780,930     8,432,114     8,069,829  
                         
Noninterest income:                        
  Net gains on sales of securities   -     -     -     51,449  
  Net gains on sales of loans   88,686     103,884     352,503     327,903  
  Net gains (losses) on fixed assets   -     (565 )   (1,352 )   (565 )
  Commission income   233,176     229,233     720,130     728,534  
  Service charges and fees   142,924     213,135     555,774     722,945  
  Earnings on life insurance   69,328     67,498     208,414     203,155  
  Income from REO   240,152     159,202     912,603     540,814  
  Other   99,453     83,139     319,207     220,131  
    Total noninterest income   873,719     855,526     3,067,279     2,794,366  
                         
Noninterest expense:                        
  Salaries and benefits   1,171,117     1,207,211     3,691,519     3,662,274  
  Occupancy and equipment   273,415     246,599     830,225     747,496  
  Professional   126,021     133,544     508,268     397,682  
  Marketing   44,443     42,072     160,635     120,484  
  Deposit insurance premium   61,092     53,275     177,712     149,892  
  Regulatory assessment   8,100     39,000     88,600     90,971  
  Correspondent bank charges   14,499     13,998     44,960     45,133  
  Data processing   112,205     153,674     320,795     466,523  
  Printing, postage and supplies   60,708     52,173     199,790     172,104  
  Expense on life insurance   21,913     20,315     65,739     60,944  
  Contribution expense   11,584     11,951     31,032     38,295  
  Expense on REO   298,587     355,534     945,025     943,125  
  Other   301,353     303,904     879,546     845,149  
    Total noninterest expense   2,505,037     2,633,250     7,943,846     7,740,072  
                         
Income before income taxes   1,173,388     1,003,206     3,555,547     3,124,123  
                         
Income tax expense   251,176     298,306     767,098     770,630  
                         
Net income $ 922,212   $ 704,900   $ 2,788,449   $ 2,353,493  
Preferred stock dividends   40,625     72,193     121,875     260,079  
Net income attributable to common shareholders $ 881,587   $ 632,707   $ 2,666,574   $ 2,093,414  
                         
 
 
FFW Corporation
Selected Financial Information
 
Key Balances and Ratios
    Three Months Ended March 31   Nine Months Ended March 31  
    2016   2015   2016   2015  
    Unaudited   Unaudited   Unaudited   Unaudited  
Per common share data:                
Earnings $ 0.76   $ 0.55   $ 2.32   $ 1.84  
Diluted earnings $ 0.76   $ 0.55   $ 2.32   $ 1.84  
Dividends paid $ 0.15   $ 0.135   $ 0.450   $ 0.380  
Average shares issued and outstanding   1,155,535     1,141,306     1,148,193     1,135,478  
Shares outstanding end of period   1,156,084     1,142,084     1,156,084     1,142,084  
                           
Supplemental data:                        
Net interest margin **   3.70 %   3.74 %   3.70 %   3.60 %
Return on average assets ***   1.09 %   0.85 %   1.11 %   0.93 %
Return on average common equity ***   10.56 %   8.37 %   10.93 %   9.45 %
                           
      March 31     June 30              
      2016     2015              
Nonperforming assets * $ 7,083,961   $ 5,896,625              
Repossessed assets $ 2,010,958   $ 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

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    Emily Boardman
    Treasurer
    260-563-3185