Press Release

Email page PDF view Print view Email Alert RSS Feeds Social media sharing

FFW Corporation Announces Earnings and Special Dividend

Company Release - 4/25/2018 8:35 AM ET

WABASH, Ind., April 25, 2018 (GLOBE NEWSWIRE) -- FFW Corporation (the “Corporation”) (OTC PINK:FFWC) (4/24/18 Close: $41.99), parent corporation of Crossroads Bank (the “Bank”), announced a special dividend and earnings for the quarter and year to date ending March 31, 2018.

For the three months ended March 31, 2018, the Corporation reported net income of $1,127,000 or $0.97 per common share compared to $916,000 or $0.76 per common share for the three months ended March 31, 2017.  Net interest income for the three months ended March 31, 2018 was $3,207,000 compared to $2,920,000 for the three months ended March 31, 2017.  The provision for loan losses was $88,000 for the three months ended March 31, 2018 and $50,000 for the three months ended March 31, 2017.  Total noninterest income was $867,000 for the three months ended March 31, 2018 compared to $852,000 for the three months ended March 31, 2017.  Noninterest expense was $2,632,000 for the three months ended March 31, 2018 and $2,573,000 for the three months ended March 31, 2017.   

For the nine months ended March 31, 2018, the Corporation reported net income of $3,668,000 or $3.15 per common share compared to $3,001,000 or $2.51 per common share for the nine months ended March 31, 2017.  Net interest income for the nine months ended March 31, 2018 was $9,810,000 compared to $8,688,000 for the nine months ended March 31, 2017.  The Company recognized a negative provision for loan losses of ($143,000) for the nine months ended March 31, 2018 due to a significant recovery of a previously charged-off commercial loan.  This is compared to a provision for loan losses of $293,000 for the nine months ended March 31, 2017.  Total noninterest income was $2,478,000 for the nine months ended March 31, 2018 compared to $3,463,000 for the nine months ended March 31, 2017.  Noninterest expense was $7,821,000 for the nine months ended March 31, 2018 and $8,040,000 for the nine months ended March 31, 2017.

The three and nine months ended March 31, 2018 represented a return on average common equity of 11.44% and 12.39%, respectively, compared to 9.95% and 10.79% for the three and nine month periods ended March 31, 2017.  The three and nine months ended March 31, 2018 represented a return on average assets of 1.23% and 1.31%, respectively, compared to 1.04% and 1.14%, for the three and nine month periods ended March 31, 2017.

The allowance for loan losses as a percentage of gross loans receivable was 1.34% at March 31, 2018 compared to 1.43% at June 30, 2017.  Nonperforming assets were $3,836,000 at March 31, 2018 compared to $4,594,000 at June 30, 2017.

As of March 31, 2018, FFWC’s equity-to-assets ratio was 10.65% compared to 10.29% at June 30, 2017.  Total assets at March 31, 2018 were $372,104,000 compared to $366,902,000 at June 30, 2017.  Shareholders’ equity was $39,633,000 at March 31, 2018 compared to $37,750,000 at June 30, 2017.  Crossroads Bank exceeds all applicable regulatory requirements to be considered “well capitalized.”

The Board of Directors has declared a special cash dividend of $0.50 per share of the Company’s common stock.  The dividend is payable May 31, 2018 to shareholders of record on May 17, 2018.    

“With our continued strong financial performance, it is appropriate to reward our shareholders for their support and confidence in the Company,” said President and CEO Roger K. Cromer.  “Our excess capital still affords us the flexibility to strategically grow our business.”

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.

FOR MORE INFORMATION  Contact:  Emily Boardman, Treasurer, at (260) 563-3185

FFW Corporation
Selected Financial Information

Consolidated Balance Sheet

 

  March 31June 30 
   2018  2017  
  Unaudited  
Assets   
Cash and due from financial institutions$  3,952,507 $  5,101,230  
Interest-bearing deposits in other financial institutions 7,499,160  15,448,903  
 Cash and cash equivalents 11,451,667  20,550,133  
    
Securities available for sale 79,658,540  79,432,914  
Loans receivable, net of allowance for loan losses of $3,528,204 at   
 March 31, 2018 and $3,311,767 at June 30, 2017 258,535,348  244,921,657  
Loans held for sale    1,028,952    847,000  
Federal Home Loan Bank stock, at cost  1,462,500  1,462,500  
Accrued interest receivable  1,788,164  1,785,609  
Premises and equipment, net  5,978,145  5,635,850  
Mortgage servicing rights  835,265  814,426  
Cash surrender value of life insurance  8,516,339  8,306,618  
Goodwill  1,213,898  1,213,898  
Repossessed Assets 168,400  852,810  
Other assets  1,466,685  1,078,552  
 Total assets$   372,103,903  $   366,901,967   
     
Liabilities and shareholders' equity   
Deposits   
 Noninterest-bearing $  30,488,100 $  29,173,951  
 Interest-bearing 294,657,946  293,300,914  
   Total deposits  325,146,046  322,474,865  
     
Borrowings 4,000,000  4,338,400  
Accrued expenses and other liabilities 3,325,355  2,338,360  
 Total liabilities 332,471,401  329,151,625  
     
Shareholders' equity   
Common stock, $.01 par; 2,000,000 shares authorized;   
 Issued: 1,836,328; outstanding: 1,165,980 - March 31, 2018 and 1,160,084 - June 30, 2017 18,363  18,363  
Additional paid-in capital 9,583,707  9,552,881  
Retained earnings  39,982,041  37,174,079  
Accumulated other comprehensive income 338,311  1,385,443  
Treasury stock, at cost: 670,348 shares at March 31, 2018 and 676,244 shares at June 30, 2017 (10,289,920) (10,380,424) 
 Total shareholders' equity  39,632,502  37,750,342  
     
 Total liabilities and shareholders' equity $   372,103,903  $   366,901,967   
     


FFW Corporation

Selected Financial Information

Consolidated Statement of Income

   Three Months Ended March 31Nine Months Ended March 31
    2018 2017 2018  2017 
   UnauditedUnauditedUnauditedUnaudited
Interest and dividend income:    
 Loans, including fees$  3,018,370$  2,695,731$  9,228,491 $  8,124,376 
 Taxable securities   308,325   310,051   885,022    925,478 
 Tax exempt securities   320,526   292,676   974,527    818,422 
 Other   37,173   45,705   158,546    62,152 
  Total interest and dividend income   3,684,394   3,344,163   11,246,586    9,930,428 
       
Interest expense:    
 Deposits   460,234   401,748   1,385,937    1,157,843 
 Borrowings   17,315   22,438   50,650    84,701 
  Total interest expense   477,549   424,186   1,436,587    1,242,544 
       
Net interest income   3,206,845    2,919,977    9,809,999     8,687,884  
       
Provision for loan losses   88,000   50,000   (143,000)   293,000 
       
Net interest income after provision for     
 loan losses   3,118,845    2,869,977    9,952,999     8,394,884  
       
Noninterest income:    
 Net gains on sales of securities   -    -    -     120,409 
 Net gains on sales of loans   73,485   112,645   271,918    393,197 
 Net gains (losses) on fixed assets   -    -    -     (1,712)
 Commission income   250,563   266,903   709,083    744,241 
 Service charges and fees   242,920   205,127   656,320    722,797 
 Earnings on life insurance   68,516   70,459   209,721    212,337 
 Income from REO   -    -    -     647,115 
 Other   231,887   197,096   630,676    624,966 
  Total noninterest income    867,371   852,230   2,477,718    3,463,350 
       
Noninterest expense:    
 Salaries and benefits   1,450,851   1,390,612   4,336,726    4,030,111 
 Occupancy and equipment   345,355   316,206   954,032    892,095 
 Professional   102,795   148,464   306,875    400,821 
 Marketing   94,176   88,503   293,579    276,874 
 Deposit insurance premium   33,881   31,521   99,550    98,264 
 Regulatory assessment   6,164   7,735   17,477    22,214 
 Correspondent bank charges   17,571   22,301   51,370    47,571 
 Data processing   174,979   129,748   526,800    381,948 
 Printing, postage and supplies   75,114   81,231   197,693    207,744 
 Expense on life insurance   -    23,424   (3,612)   70,535 
 Contribution expense   5,190   4,620   50,140    26,940 
 Expense on REO   30,301   25,686   78,361    703,615 
 Other   295,940   303,256   912,234    881,023 
  Total noninterest expense   2,632,317   2,573,307   7,821,225    8,039,755 
       
Income before income taxes   1,353,899    1,148,900    4,609,492     3,818,479  
       
Income tax expense    227,213   233,139   941,170    817,267 
       
Net income $   1,126,686 $   915,761 $   3,668,322  $   3,001,212  
Preferred stock dividends    -     29,563    -      85,813  
Net income attributable to common shareholders$   1,126,686 $   886,198 $   3,668,322  $   2,915,399  


FFW Corporation

Selected Financial Information

Key Balances and Ratios

  Three Months Ended March 31Nine Months Ended March 31
   2018  2017  2018  2017 
  UnauditedUnauditedUnauditedUnaudited
Per common share data:    
Earnings$0.97 $0.76 $3.15 $2.51 
Diluted earnings$0.97 $0.76 $3.15 $2.51 
Dividends paid$0.19 $0.17 $0.57 $0.51 
Average shares issued and outstanding 1,165,980  1,160,084  1,165,980  1,159,617 
Shares outstanding end of period 1,165,980  1,160,084  1,165,980  1,160,084 
      
Supplemental data:    
Net interest margin ** 3.74% 3.56% 3.74% 3.56%
Return on average assets *** 1.23% 1.04% 1.31% 1.14%
Return on average common equity *** 11.44% 9.95% 12.39% 10.79%
      
  March 31June 30  
   2018  2017   
Nonperforming assets *$3,836,310 $4,594,296   
Repossessed assets$168,400 $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    


Source: Crossroads Bank