WABASH, IN--(Marketwired - Mar 21, 2014) - FFW Corporation (the "Corporation") (OTCBB: FFWC) (3/20/2014 Close: $17.38), parent corporation of Crossroads Bank, announces $2.6 million loan charge-off recovery.
On August 17, 2012, the Corporation issued a press release announcing that during the fiscal year ended June 30, 2012, the Corporation reported an elevated provision for loan losses and stated that a significant portion of the provision was due to a loss on a commercial credit in which Crossroads Bank (the "Bank"), the wholly owned subsidiary of FFW Corporation, was a participating lender and not the lead loan servicer. The loan was secured by a life insurance policy, whose value was dissipated through fraudulent actions of the borrower. The loan was completely written off by the Bank during fiscal 2012, but the Bank pursued recovery efforts with respect to the loan.
On March 21, 2014, the Bank received a $2.6 million recovery on this commercial credit and recorded a loan charge-off recovery of $2.6 million. This payment satisfies the borrower's obligation on this loan. The increase in net income, after taxes, for the third quarter of the Corporation's fiscal year (over the other operating results for the quarter which are not yet available) resulting from this recovery is expected to be $1.9 million, or $1.71 per share.
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.