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FFW Corporation Announces Earnings for the Quarter and Year to Date Ended December 31, 2017

Company Release - 1/24/2018 9:48 AM ET

WABASH, Ind., Jan. 24, 2018 (GLOBE NEWSWIRE) -- FFW Corporation (the “Corporation”) (OTC PINK:FFWC) (1/23/18 Close: $42.20), parent corporation of Crossroads Bank (the “Bank”), announced earnings for the quarter and year to date ending December 31, 2017.

For the three months ended December 31, 2017, the Corporation reported net income of $1,121,000 or $0.96 per common share compared to $1,048,000 or $0.88 per common share for the three months ended December 31, 2016.  Net interest income for the three months ended December 31, 2017 was $3,243,000 compared to $2,861,000 for the three months ended December 31, 2016.  The provision for loan losses was $88,000 for the three months ended December 31, 2017 and $50,000 for the three months ended December 31, 2016.  Total noninterest income was $823,000 for the three months ended December 31, 2017 compared to $1,200,000 for the three months ended December 31, 2016.  Noninterest expense was $2,616,000 for the three months ended December 31, 2017 and $2,672,000 for the three months ended December 31, 2016.

For the six months ended December 31, 2017, the Corporation reported net income of $2,542,000 or $2.18 per common share compared to $2,085,000 or $1.75 per common share for the six months ended December 31, 2016.  Net interest income for the six months ended December 31, 2017 was $6,603,000 compared to $5,768,000 for the six months ended December 31, 2016.  The Company recognized a negative provision for loan losses of ($231,000) for the six months ended December 31, 2017 due to a significant recovery of a previously charged-off commercial loan.  This is compared to a provision for loan losses of $243,000 for the three months ended December 31, 2016.  Total noninterest income was $1,610,000 for the six months ended December 31, 2017 compared to $2,611,000 for the six months ended December 31, 2016.  Noninterest expense was $5,189,000 for the six months ended December 31, 2017 and $5,466,000 for the six months ended December 31, 2016.

The three and six months ended December 31, 2017 represented a return on average common equity of 11.25% and 12.87%, respectively, compared to 11.25% and 11.20% for the three and six month periods ended December 31, 2016.  The three and six months ended December 31, 2017 represented a return on average assets of 1.17% and 1.34%, respectively, compared to 1.18% and 1.19%, for the three and six month periods ended December 31, 2016.

The allowance for loan losses as a percentage of gross loans receivable was 1.37% at December 31, 2017 compared to 1.43% at June 30, 2017.  Nonperforming assets were $3,981,000 at December 31, 2017 compared to $4,594,000 at June 30, 2017.

As of December 31, 2017, FFWC’s equity-to-assets ratio was 10.62% compared to 10.29% at June 30, 2017.  Total assets at December 31, 2017 were $372,699,000 compared to $366,902,000 at June 30, 2017.  Shareholders’ equity was $39,566,000 at December 31, 2017 compared to $37,750,000 at June 30, 2017.  Crossroads Bank exceeds all applicable regulatory requirements to be considered “well capitalized.”

Forward Looking Statements

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.

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 five Indiana banking centers located in Columbia City, North Manchester, Peru, South Whitley and Syracuse.  The Bank provides leasing services at its banking centers and its Fishers, 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.

 

 
FFW Corporation
Selected Financial Information
 
Consolidated Balance Sheet
    
  December 31June 30
  20172017
  Unaudited 
Assets  
Cash and due from financial institutions$4,254,526 $5,101,230 
Interest-bearing deposits in other financial institutions 15,156,052  15,448,903 
 Cash and cash equivalents 19,410,578  20,550,133 
   
Securities available for sale 78,601,617  79,432,914 
Loans receivable, net of allowance for loan losses of $3,497,006 at  
 December 31, 2017 and $3,311,767 at June 30, 2017 252,016,213  244,921,657 
Loans held for sale 631,397  847,000 
Federal Home Loan Bank stock, at cost 1,462,500  1,462,500 
Accrued interest receivable 1,943,089  1,785,609 
Premises and equipment, net 6,097,189  5,635,850 
Mortgage servicing rights 821,113  814,426 
Cash surrender value of life insurance 8,447,823  8,306,618 
Goodwill 1,213,898  1,213,898 
Repossessed Assets 511,400  852,810 
Other assets 1,542,022  1,078,552 
 Total assets$   372,698,839  $   366,901,967  
    
Liabilities and shareholders' equity  
Deposits  
 Noninterest-bearing$30,681,298 $29,173,951 
 Interest-bearing 295,685,124  293,300,914 
 Total deposits 326,366,422  322,474,865 
    
Borrowings 4,000,000  4,338,400 
Accrued expenses and other liabilities 2,766,795  2,338,360 
 Total liabilities 333,133,217  329,151,625 
    
Shareholders' equity  
Common stock, $.01 par; 2,000,000 shares authorized;  
 Issued: 1,836,328; outstanding: 1,165,980 - December 31, 2017 and 1,160,084 - June 30, 2017 18,363  18,363 
Additional paid-in capital 9,543,264  9,552,881 
Retained earnings 39,272,639  37,174,079 
Accumulated other comprehensive income 1,021,276  1,385,443 
Treasury stock, at cost: 670,348 shares at December 31, 2017 and 676,244 shares at June 30, 2017 (10,289,920) (10,380,424)
 Total shareholders' equity 39,565,622  37,750,342 
    
 Total liabilities and shareholders' equity $   372,698,839  $   366,901,967  
    


 
FFW Corporation
Selected Financial Information
 
Consolidated Statement of Income
     
   Three Months Ended December 31Six Months Ended December 31
   2017201620172016
   UnauditedUnauditedUnauditedUnaudited
Interest and dividend income:    
 Loans, including fees$3,050,105$2,696,618$6,210,121 $5,428,645 
 Taxable securities 287,146 306,037 576,697  615,427 
 Tax exempt securities 333,801 269,413 654,001  525,746 
 Other 62,781 9,007 121,373  16,447 
  Total interest and dividend income 3,733,833 3,281,075 7,562,192  6,586,265 
       
Interest expense:    
 Deposits 475,094 395,163 925,703  756,095 
 Borrowings 16,077 24,434 33,335  62,263 
  Total interest expense 491,171 419,597 959,038  818,358 
       
Net interest income   3,242,662    2,861,478    6,603,154     5,767,907  
       
Provision for loan losses 88,000 50,000 (231,000) 243,000 
       
Net interest income after provision for     
 loan losses   3,154,662    2,811,478    6,834,154     5,524,907  
       
Noninterest income:    
 Net gains on sales of securities - - -  120,409 
 Net gains on sales of loans 85,760 83,245 198,433  280,552 
 Net gains (losses) on fixed assets - - -  (1,712)
 Commission income 230,167 235,363 458,520  477,338 
 Service charges and fees 203,357 302,935 413,400  517,670 
 Earnings on life insurance 69,341 71,174 141,205  141,878 
 Income from REO - 219,800 -  647,115 
 Other 234,454 287,218 398,789  427,870 
  Total noninterest income 823,079 1,199,735 1,610,347  2,611,120 
       
Noninterest expense:    
 Salaries and benefits 1,448,249 1,329,381 2,885,875  2,639,499 
 Occupancy and equipment 319,923 298,284 608,677  575,889 
 Professional 101,857 104,711 204,080  252,357 
 Marketing 102,542 111,107 199,403  188,371 
 Deposit insurance premium 32,091 5,993 65,669  66,743 
 Regulatory assessment 5,656 7,167 11,313  14,479 
 Correspondent bank charges 18,453 9,624 33,799  25,270 
 Data processing 177,015 126,556 351,821  252,200 
 Printing, postage and supplies 61,796 58,303 122,579  126,513 
 Expense on life insurance - 23,489 (3,612) 47,111 
 Contribution expense 4,050 6,605 44,950  22,320 
 Expense on REO 32,168 296,969 48,060  677,929 
 Other 311,888 293,816 616,294  577,767 
  Total noninterest expense 2,615,688 2,672,005 5,188,908  5,466,448 
       
Income before income taxes   1,362,053    1,339,208    3,255,593     2,669,579  
       
Income tax expense 240,569 291,453 713,957  584,128 
       
Net income $   1,121,484 $   1,047,755 $   2,541,636  $   2,085,451  
Preferred stock dividends    -     28,125    -      56,250  
Net income attributable to common shareholders$   1,121,484 $   1,019,630 $   2,541,636  $   2,029,201  
           


 
FFW Corporation
Selected Financial Information
 
Key Balances and Ratios
    
  Three Months Ended December 31Six Months Ended December 31
  2017201620172016
  UnauditedUnauditedUnauditedUnaudited
Per common share data:    
Earnings$0.96 $0.88 $2.18 $1.75 
Diluted earnings$0.96 $0.88 $2.18 $1.75 
Dividends paid$0.19 $0.17 $0.38 $0.34 
Average shares issued and outstanding1,165,980 1,160,301 1,165,980 1,159,388 
Shares outstanding end of period1,165,980 1,160,084 1,165,980 1,160,084 
      
Supplemental data:    
Net interest margin **3.63%3.49%3.74%3.56%
Return on average assets ***1.17%1.18%1.34%1.19%
Return on average common equity ***11.25%11.25%12.87%11.20%
      
  December 31June 30  
  20172017  
Nonperforming assets *$3,981,407 $4,594,296   
Repossessed assets$511,400 $852,810   
      
*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:  Emily Boardman, Treasurer, at (260) 563-3185

Source: Crossroads Bank