SOURCE: FFW Corporation

January 23, 2015 11:14 ET

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
   

Contact Information

  • FOR MORE INFORMATION
    Contact:
    Emily Boardman
    Treasurer
    260-563-3185