FFW Corporation Announces Earnings for the Three and Six Months Ended December 31, 2014

WABASH, IN--(Marketwired - Jan 23, 2015) - FFW Corporation (the "Corporation") (OTCBB: FFWC) (1/22/15 Close: $22.00), parent corporation of Crossroads Bank, announced earnings for the three and six months ended December 31, 2014.

For the three months ended December 31, 2014, the Corporation reported net income of $781,000 or $0.62 per common share compared to $770,000 or $0.58 per common share for the three months ended December 31, 2013. Net interest income for the three months ended December 31, 2014 was $2,838,000 compared to $2,584,000 for the three months ended December 31, 2013. The provision for loan losses was $180,000 for the periods ended December 31, 2014 and 2013. Total noninterest income was $983,000 for the three months ended December 31, 2014 compared to $817,000 for the three months ended December 31, 2013. Noninterest expense was $2,622,000 for the three months ended December 31, 2014 and $2,217,000 for the three months ended December 31, 2013. 

For the six months ended December 31, 2014, the Corporation reported net income of $1,649,000 or $1.29 per common share compared to $1,408,000 or $1.04 per common share for the six months ended December 31, 2013. Net interest income for the six months ended December 31, 2014 was $5,649,000 compared to $5,144,000 for the six months ended December 31, 2013. The provision for loan losses was $360,000 for the periods ended December 31, 2014 and 2013. Total noninterest income was $1,939,000 for the six months ended December 31, 2014 compared to $1,423,000 for the six months ended December 31, 2013. Noninterest expense was $5,107,000 for the six months ended December 31, 2014 and $4,414,000 for the six months ended December 31, 2013.

The three and six months ended December 31, 2014 represented a return on average common equity of 9.43% and 10.01%, respectively, compared to 10.73% and 9.74% for the three and six month periods ended December 31, 2013. The three and six months ended December 31, 2014 represented a return on average assets of 0.91% and 0.96%, respectively, compared to 0.85% and 0.80%, for the three and six month periods ended December 31, 2013.

The allowance for loan losses as a percentage of gross loans receivable was 1.46% at December 31, 2014 compared to 1.29% at June 30, 2014. Nonperforming assets were $6,214,000 at December 31, 2014 compared to $7,084,000 at June 30, 2014.

As of December 31, 2014, FFWC's equity-to-assets ratio was 10.11% compared to 10.08% at June 30, 2014. Total assets at December 31, 2014 were $341,177,000 compared to $335,496,000 at June 30, 2014. Shareholders' equity was $34,504,000 at December 31, 2014 compared to $33,830,000 at June 30, 2014. Crossroads Bank exceeds all applicable regulatory requirements to be considered "well capitalized." 

On October 27, 2014 the Corporation redeemed 1,500 shares of Fixed Rate Cumulative Preferred Stock, Series A ("Series A Preferred Stock"), for $1,500,000, plus accrued dividends. The Series A Preferred Stock was paying dividends at 9% per year. Following the redemption, the Corporation has outstanding 1,039 shares of its Series A Preferred Stock, 364 shares of its Fixed Rate Cumulative Preferred Stock, Series B, which pays dividends at 9% per year, and 3,250 shares of its Fixed Rate Cumulative Preferred Stock, Series C, which currently pays annual dividends of 5%. 

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 necessarily 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
				2014				2014
				Unaudited
Assets
Cash and due from financial institutions				$	8,186,496			$	6,729,693
Interest-earning deposits in other financial institutions					9,100,075				5,706,136
	Cash and cash equivalents				17,286,571				12,435,829
Securities available for sale					80,293,758				83,751,842
Loans receivable, net of allowance for loan losses of $3,299,000 at December 31, 2014 and $2,851,000 at June 30, 2014					221,885,681				217,629,375
Loans held for sale					831,600				286,800
Federal Home Loan Bank stock, at cost					2,136,700				2,717,300
Accrued interest receivable					1,754,477				1,769,840
Premises and equipment, net					3,662,618				3,278,681
Mortgage servicing rights					716,720				680,362
Cash surrender value of life insurance					7,608,774				7,473,117
Goodwill					1,213,898				1,213,898
Deferred tax asset					455,419				1,058,029
Other assets					3,330,800				3,200,907
	Total assets			$	341,177,016			$	335,495,980
Liabilities and shareholders' equity
Deposits
	Noninterest-bearing deposits			$	33,368,087			$	29,462,977
	Interest-bearing deposits				255,477,263				266,730,899
		Total deposits			288,845,350				296,193,876
Borrowings					15,908,400				3,258,400
Accrued expenses and other liabilities					1,919,671				2,213,560
	Total liabilities				306,673,421				301,665,836
Shareholders' equity
Preferred stock, $.01 par; $1,000 liquidation value per share; 500,000 shares authorized;
	Series A, 9% Fixed Rate Cumulative Perpetual Preferred Stock - 1,039 shares outstanding December 31, 2014 and 2,539 shares at June 30, 2014, $1,051,000 liquidation preference December 31, 2014 and $2,568,000 at June 30, 2014				1,039,000				2,539,000
	Series B, 9% Fixed Rate Cumulative Perpetual Preferred Stock - 364 shares outstanding December 31, 2014 and June 30, 2014, $368,000 liquidation preference December 31, 2014 and June 30, 2014				364,000				364,000
	Series C, 5% Fixed Rate Cumulative Perpetual Preferred Stock - 3,250 shares outstanding December 31, 2014 and June 30, 2014, $3,271,000 liquidation preference December 31, 2014 and June 30, 2014				3,250,000				3,250,000
Common stock, $.01 par; 2,000,000 shares authorized;
	issued shares: 1,836,328
	outstanding shares: 1,137,084 at December 31, 2014 and 1,132,084 at June 30, 2014				18,363				18,363
Additional paid-in capital					9,495,880				9,446,708
Retained earnings					30,052,755				28,870,083
Accumulated other comprehensive income					1,016,971				152,114
Treasury stock, at cost: 699,244 shares at December 31, 2014 and 704,244 at June 30, 2014					(10,733,374	)			(10,810,124	)
	Total shareholders' equity				34,503,595				33,830,144
	Total liabilities and shareholders' equity			$	341,177,016			$	335,495,980

FFW Corporation
Selected Financial Information
Consolidated Statement of Income
				Three Months Ended December 31						Six Months Ended December 31
				2014			2013			2014			2013
				Unaudited			Unaudited			Unaudited			Unaudited
Interest and dividend income:
	Loans, including fees			$	2,633,803		$	2,598,970		$	5,241,208		$	5,254,840
	Taxable securities				293,245			347,639			619,672			694,951
	Tax exempt securities				315,808			300,920			631,237			599,398
	Other				5,926			17,978			12,366			27,044
		Total interest and dividend income			3,248,782			3,265,507			6,504,483			6,576,233
Interest expense:
	Deposits				363,391			648,337			771,096			1,353,450
	Borrowings				46,975			33,122			84,488			78,430
		Total interest expense			410,366			681,459			855,584			1,431,880
Net interest income					2,838,416			2,584,048			5,648,899			5,144,353
Provision for loan losses					180,000			180,000			360,000			360,000
Net interest income after provision for loan losses					2,658,416			2,404,048			5,288,899			4,784,353
Noninterest income:
	Net gains on sales of securities				25,023			52,679			51,449			52,679
	Net gains on sales of loans				117,085			104,923			224,019			148,556
	Net gains (losses) on fixed assets				-			6,481			-			6,481
	Commission income				254,916			227,034			499,301			438,492
	Service charges and fees				253,397			261,014			509,810			524,907
	Earnings on life insurance				68,398			66,692			135,657			133,913
	Other				264,060			98,480			518,604			117,817
		Total noninterest income			982,879			817,303			1,938,840			1,422,845
Noninterest expense:
	Salaries and benefits				1,235,161			1,124,954			2,455,063			2,223,756
	Occupancy and equipment				256,750			242,680			500,897			491,153
	Professional				127,741			161,204			264,138			328,865
	Marketing				42,782			43,855			78,412			85,729
	Deposit insurance premium				43,417			77,868			96,617			157,076
	Regulatory assessment				25,986			22,530			51,971			51,415
	Correspondent bank charges				15,027			20,303			31,135			41,857
	Data processing				159,118			147,366			312,849			317,053
	Printing, postage and supplies				67,290			60,500			119,931			115,865
	Expense on life insurance				20,314			18,818			40,629			37,635
	Contribution expense				11,208			6,957			26,344			19,778
	Other				616,996			289,549			1,128,836			543,706
		Total noninterest expense			2,621,790			2,216,584			5,106,822			4,413,888
Income before income taxes					1,019,505			1,004,767			2,120,917			1,793,310
Income tax expense					238,179			234,809			472,324			385,479
Net income				$	781,326		$	769,958		$	1,648,593		$	1,407,831
Preferred stock dividends and discount accretion, net					81,943			117,504			187,886			235,008
Net income attributable to common shareholders				$	699,383		$	652,454		$	1,460,707		$	1,172,823

FFW Corporation
Selected Financial Information
Key Balances and Ratios
		Three Months Ended December 31								Six Months Ended December 31
		2014				2013				2014				2013
		Unaudited				Unaudited				Unaudited				Unaudited
Per common share data:
Earnings		$	0.62			$	0.58			$	1.29			$	1.04
Diluted earnings		$	0.62			$	0.58			$	1.29			$	1.04
Dividends paid		$	0.135			$	0.110			$	0.245			$	0.220
Average shares issued and outstanding			1,133,171				1,132,084				1,132,627				1,132,084
Shares outstanding end of period			1,137,084				1,132,084				1,137,084				1,132,084
Supplemental data:
Net interest margin **			3.55	%			3.01	%			3.53	%			3.09	%
Return on average assets ***			0.91	%			0.85	%			0.96	%			0.80	%
Return on average common equity ***			9.43	%			10.73	%			10.01	%			9.74	%
		December 31				June 30
		2014				2014
Nonperforming assets *		$	6,214,168			$	7,084,099
Repossessed assets		$	2,090,958			$	2,003,040

*	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