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FFW Corporation Announces Earnings for the Fiscal Year Ended June 30, 2018

Company Release - 8/8/2018 3:30 PM ET

WABASH, Ind., Aug. 08, 2018 (GLOBE NEWSWIRE) -- FFW Corporation (the “Corporation”) (OTC PINK: FFWC) (8/7/18 Close: $42.75), parent corporation of Crossroads Bank (the “Bank”), announced earnings for the three and twelve months ended June 30, 2018.

For the three months ended June 30, 2018, the Corporation reported net income of $1,136,000 or $0.97 per common share compared to $1,018,000 or $0.88 per common share for the three months ended June 30, 2017.  Net interest income for the three months ended June 30, 2018 was $3,383,000 compared to $3,011,000 for the three months ended June 30, 2017.  The Company recognized a negative provision for loan losses of ($62,000) for the three months ended June 30, 2018 due to a significant recovery of a previously charged-off commercial loan.  This is compared to a provision for loan losses of $50,000 for the three months ended June 30, 2017. Total noninterest income was $784,000 for the three months ended June 30, 2018 compared to $707,000 for the three months ended June 30, 2017.  Noninterest expense was $2,850,000 for the three months ended June 30, 2018 and $2,412,000 for the three months ended June 30, 2017.   

For the twelve months ended June 30, 2018, the Corporation reported net income of $4,805,000 or $4.12 per common share compared to $4,019,000 or $3.39 per common share for the twelve months ended June 30, 2017.  Net interest income for the twelve months ended June 30, 2018 was $13,193,000 compared to $11,699,000 for the twelve months ended June 30, 2017.  The Company recognized a negative provision for loan losses of ($205,000) for the twelve months ended June 30, 2018 due to significant recoveries recorded in the first and fourth quarters of the fiscal year relating to a previously charged-off commercial loan.  This is compared to a provision for loan losses of $343,000 for the twelve months ended June 30, 2017.  Total noninterest income was $3,262,000 for the twelve months ended June 30, 2018 compared to $4,170,000 for the twelve months ended June 30, 2017.  Noninterest expense was $10,671,000 for the twelve months ended June 30, 2018 and $10,452,000 for the twelve months ended June 30, 2017.

The three and twelve months ended June 30, 2018 represented a return on average common equity of 11.33% and 12.13%, respectively, compared to 10.92% and 10.82% for the three and twelve month periods ended June 30, 2017.  The three and twelve months ended June 30, 2018 represented a return on average assets of 1.20% and 1.28%, respectively, compared to 1.11% and 1.13%, for the three and twelve month periods ended June 30, 2017.

The allowance for loan losses as a percentage of gross loans receivable was 1.40% at June 30, 2018 compared to 1.43% at June 30, 2017.  Nonperforming assets were $3,412,000 at June 30, 2018 compared to $4,594,000 at June 30, 2017.

As of June 30, 2018, FFWC’s equity-to-assets ratio was 10.54% compared to 10.29% at June 30, 2017.  Total assets at June 30, 2018 were $379,790,000 compared to $366,902,000 at June 30, 2017.  Shareholders’ equity was $40,011,000 at June 30, 2018 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

  June 30June 30
   2018  2017 
  Unaudited 
Assets  
Cash and due from financial institutions$  6,288,268 $  5,101,230 
Interest-bearing deposits in other financial institutions 11,741,584  15,448,903 
 Cash and cash equivalents 18,029,852  20,550,133 
   
Securities available for sale 78,489,583  79,432,914 
Loans receivable, net of allowance for loan losses of $3,716,543 at  
 June 30, 2018 and $3,311,767 at June 30, 2017 260,714,092  244,921,657 
Loans held for sale    938,686    847,000 
Federal Home Loan Bank stock, at cost 1,462,500  1,462,500 
Accrued interest receivable 1,962,831  1,785,609 
Premises and equipment, net 5,825,455  5,635,850 
Mortgage servicing rights 823,965  814,426 
Cash surrender value of life insurance 8,585,667  8,306,618 
Goodwill 1,213,898  1,213,898 
Repossessed Assets 167,000  852,810 
Other assets 1,576,057  1,078,552 
 Total assets$  379,789,586  $  366,901,967  
    
Liabilities and shareholders' equity  
Deposits  
 Noninterest-bearing$  30,689,658 $  29,173,951 
 Interest-bearing 304,215,798  293,300,914 
   Total deposits 334,905,456  322,474,865 
    
Borrowings 2,000,000  4,338,400 
Accrued expenses and other liabilities 2,872,683  2,338,360 
 Total liabilities 339,778,139  329,151,625 
    
Shareholders' equity  
Common stock, $.01 par; 2,000,000 shares authorized;  
 Issued: 1,836,328; outstanding: 1,165,980 - June 30, 2018 and 1,160,084 - June 30, 2017 18,363  18,363 
Additional paid-in capital 9,624,150  9,552,881 
Retained earnings 40,313,968  37,174,079 
Accumulated other comprehensive income 344,886  1,385,443 
Treasury stock, at cost: 670,348 shares at June 30, 2018 and 676,244 shares at June 30, 2017 (10,289,920) (10,380,424)
 Total shareholders' equity 40,011,447  37,750,342 
    
 Total liabilities and shareholders' equity $  379,789,586  $  366,901,967  
        

FFW Corporation
Selected Financial Information

Consolidated Statement of Income

   Three Months Ended June 30Twelve Months Ended June 30
    2018  2017 2018  2017 
   Unaudited Unaudited 
Interest and dividend income:    
 Loans, including fees$  3,296,696 $  2,794,553$  12,525,187 $  10,918,929 
 Taxable securities   321,186    303,198   1,206,208    1,228,676 
 Tax exempt securities   313,952    309,588   1,288,479    1,128,010 
 Other   43,049    51,942   201,595    114,094 
  Total interest and dividend income   3,974,883    3,459,281    15,221,469    13,389,709 
       
Interest expense:    
 Deposits   581,303    430,970   1,967,240    1,588,813 
 Borrowings   10,332    17,685   60,982    102,386 
  Total interest expense   591,635    448,655   2,028,222    1,691,199 
       
Net interest income   3,383,248     3,010,626    13,193,247     11,698,510  
       
Provision for loan losses   (62,000)   50,000   (205,000)   343,000 
       
Net interest income after provision for     
 loan losses   3,445,248     2,960,626    13,398,247     11,355,510  
       
Noninterest income:    
 Net gains on sales of securities   -      -    -     120,409 
 Net gains on sales of loans   94,090    117,492   366,008    510,689 
 Net gains (losses) on fixed assets   -     -    -     (1,712)
 Commission income   257,754    235,918   966,837     980,159 
 Service charges and fees   184,139    208,044   840,459    930,841 
 Earnings on life insurance   69,328    71,290    279,049    283,627 
 Income from REO   -     -    -     647,115 
 Other   178,581    74,220   809,257    699,186 
  Total noninterest income   783,892    706,964   3,261,610    4,170,314 
       
Noninterest expense:    
 Salaries and benefits   1,601,975    1,342,811   5,938,701    5,372,922 
 Occupancy and equipment   330,443    307,065   1,284,475    1,199,160 
 Professional    142,004    104,175   448,879    504,996 
 Marketing   84,907    90,770   378,486    367,644 
 Deposit insurance premium   29,787    31,531   129,337    129,795 
 Regulatory assessment   5,657    7,167   23,134    29,381 
 Correspondent bank charges   19,414    17,038   70,784    64,609 
 Data processing   194,827    136,358   721,627     518,306 
 Printing, postage and supplies   62,921    62,636   260,614    270,380 
 Expense on life insurance   -     23,423   (3,612)   93,958 
 Contribution expense   5,900    2,900   56,040    29,840 
 Expense on REO   7,803    5,280   86,164    708,895 
 Other   364,059    280,977   1,276,293    1,162,000 
  Total noninterest expense   2,849,697    2,412,131   10,670,922    10,451,886 
       
Income before income taxes   1,379,443     1,255,459    5,988,935     5,073,938  
       
Income tax expense    242,990    237,645   1,184,160    1,054,912 
       
Net income $  1,136,453  $  1,017,814 $  4,804,775  $  4,019,026  
Preferred stock dividends     -      -     -      85,813  
Net income attributable to common shareholders$  1,136,453  $  1,017,814 $  4,804,775  $   3,933,213  
            

FFW Corporation
Selected Financial Information

Key Balances and Ratios

 Three Months Ended June 30Twelve Months Ended June 30
  2018  2017  2018  2017 
 Unaudited Unaudited 
Per common share data:    
Earnings$0.97 $0.88 $4.12 $3.39 
Diluted earnings$0.97 $0.88 $4.12 $3.39 
Dividends paid$0.69 $0.19 $1.26 $0.70 
Average shares issued and outstanding 1,165,980  1,160,084  1,165,980  1,159,733 
Shares outstanding end of period 1,165,980  1,160,084  1,165,980  1,160,084 
     
Supplemental data:    
Net interest margin ** 3.82% 3.52% 3.76% 3.55%
Return on average assets *** 1.20% 1.11% 1.28% 1.13%
Return on average common equity *** 11.33% 10.92% 12.13% 10.82%
     
 June 30June 30  
 20182017  
Nonperforming assets *$3,412,108 $4,594,296   
Repossessed assets$167,000 $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

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

Source: FFW Corporation