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FFW Corporation Announces Earnings for the Quarter Ended September 30, 2018

Company Release - 10/24/2018 8:34 AM ET

WABASH, Ind., Oct. 24, 2018 (GLOBE NEWSWIRE) -- FFW Corporation (the “Corporation”) (OTC PINK: FFWC) (10/23/18 Close: $45.00), parent corporation of Crossroads Bank (the “Bank”), announced earnings for the three months ended September 30, 2018.

For the three months ended September 30, 2018, the Corporation reported net income of $1,105,000 or $0.95 per common share compared to $1,420,000 or $1.22 per common share for the three months ended September 30, 2017.  Net interest income for the three months ended September 30, 2018 was $3,313,000 compared to $3,360,000 for the three months ended September 30, 2017.  The Company recognized provision for loan losses of $75,000 for the three months ended September 30, 2018 and a negative provision for loan losses of ($319,000) for the three months ended September 30, 2017.  The negative provision was due to a significant recovery of a previously charged-off commercial loan.  Total noninterest income was $866,000 for the three months ended September 30, 2018 compared to $787,000 for the three months ended September 30, 2017.  Noninterest expense was $2,760,000 for the three months ended September 30, 2018 and $2,573,000 for the three months ended September 30, 2017.   

The three months ended September 30, 2018 represented a return on average common equity of 10.82% compared to 14.53% for the three months ended September 30, 2017.  The three months ended September 30, 2018 represented a return on average assets of 1.13% compared to 1.52% for the three months ended September 30, 2017.

The allowance for loan losses as a percentage of gross loans receivable was 1.41% at September 30, 2018 compared to 1.40% at June 30, 2018.  Nonperforming assets were $3,494,000 at September 30, 2018 compared to $3,412,000 at June 30, 2018.

As of September 30, 2018, FFWC’s equity-to-assets ratio was 10.25% compared to 10.54% at June 30, 2018.  Total assets at September 30, 2018 were $387,800,000 compared to $379,790,000 at June 30, 2018.  Shareholders’ equity was $39,750,000 at September 30, 2018 compared to $40,011,000 at June 30, 2018.  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

  September 30June 30
   2018  2018 
  Unaudited 
Assets  
Cash and due from financial institutions$  5,683,249 $  6,288,268 
Interest-bearing deposits in other financial institutions 16,482,635  11,741,584 
 Cash and cash equivalents 22,165,884  18,029,852 
   
Securities available for sale 78,109,843  78,489,583 
Loans receivable, net of allowance for loan losses of $3,793,444 at  
 September 30, 2018 and $3,716,543 at June 30, 2018 265,849,695  260,714,092 
Loans held for sale    339,150    938,686 
Federal Home Loan Bank stock, at cost  1,462,500  1,462,500 
Accrued interest receivable  2,133,389  1,962,831 
Premises and equipment, net  5,713,117  5,825,455 
Mortgage servicing rights  852,974  823,965 
Cash surrender value of life insurance  8,656,629  8,585,667 
Goodwill  1,213,898  1,213,898 
Repossessed Assets 64,850  167,000 
Other assets  1,238,495  1,576,057 
 Total assets$  387,800,424  $  379,789,586  
    
Liabilities and shareholders' equity  
Deposits  
 Noninterest-bearing $  32,507,213 $  30,689,658 
 Interest-bearing 310,685,537  304,215,798 
   Total deposits  343,192,750  334,905,456 
    
Borrowings 2,000,000  2,000,000 
Accrued expenses and other liabilities 2,857,605  2,872,683 
 Total liabilities 348,050,355  339,778,139 
    
Shareholders' equity  
Common stock, $.01 par; 2,000,000 shares authorized;  
 Issued: 1,836,328; outstanding: 1,149,480 - September 30, 2018 and 1,165,980 - June 30, 2018 18,363  18,363 
Additional paid-in capital 9,667,629  9,624,150 
Retained earnings  41,177,254  40,313,968 
Accumulated other comprehensive income (119,582) 344,886 
Treasury stock, at cost: 686,848 shares at September 30, 2018 and 670,348 shares at June 30, 2018 (10,993,595) (10,289,920)
 Total shareholders' equity  39,750,069  40,011,447 
    
 Total liabilities and shareholders' equity $  387,800,424  $  379,789,586  
    

FFW Corporation
Selected Financial Information

Consolidated Statement of Income

   Three Months Ended September 30
    2018 2017 
   UnauditedUnaudited
Interest and dividend income:  
 Loans, including fees$  3,315,237$  3,160,016 
 Taxable securities   317,153   289,551 
 Tax exempt securities   309,354   320,200 
 Other   67,525   58,592 
  Total interest and dividend income   4,009,269   3,828,359 
     
Interest expense:  
 Deposits   686,815   450,609 
 Borrowings   8,962   17,258 
  Total interest expense   695,777   467,867 
     
Net interest income   3,313,492    3,360,492  
     
Provision for loan losses   75,000   (319,000)
     
Net interest income after provision for   
 loan losses   3,238,492    3,679,492  
     
Noninterest income:  
 Net gains on sales of securities   18,111   -  
 Net gains on sales of loans   129,635   112,673 
 Commission income   241,250   228,353 
 Service charges and fees   221,463   210,043 
 Earnings on life insurance   70,963   71,864 
 Other   184,887   164,335 
  Total noninterest income    866,309   787,268 
     
Noninterest expense:  
 Salaries and benefits   1,565,108   1,437,626 
 Occupancy and equipment   320,911   288,754 
 Professional   93,724   102,223 
 Marketing   99,247   96,861 
 Deposit insurance premium   28,542   33,578 
 Regulatory assessment   8,099   5,657 
 Correspondent bank charges   18,940   15,346 
 Data processing   226,108   174,806 
 Printing, postage and supplies   46,438   60,783 
 Expense on life insurance   18,730   (3,612)
 Contribution expense   6,817   40,900 
 Expense on REO   5,665   15,892 
 Other   321,532   304,406 
  Total noninterest expense   2,759,861   2,573,220 
     
Income before income taxes   1,344,940    1,893,540  
     
Income tax expense    240,157   473,388 
     
Net income $   1,104,783 $   1,420,152  

FFW Corporation
Selected Financial Information

Key Balances and Ratios

  Three Months Ended September 30
   2018  2017 
  UnauditedUnaudited
Per common share data:  
Earnings$0.95 $1.22 
Diluted earnings$0.95 $1.22 
Dividends paid$0.21 $0.19 
Average shares issued and outstanding 1,158,790  1,165,980 
Shares outstanding end of period 1,149,480  1,165,980 
    
Supplemental data:  
Net interest margin ** 3.61% 3.85%
Return on average assets *** 1.13% 1.52%
Return on average common equity *** 10.82% 14.53%
    
  September 30June 30
   2018  2018 
Nonperforming assets *$3,494,381 $3,412,108 
Repossessed assets$64,850 $167,000 
    
*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