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FFW Corporation Announces Earnings for the Six Months Ended December 31, 2018

Company Release - 1/23/2019 11:48 AM ET

WABASH, Ind., Jan. 23, 2019 (GLOBE NEWSWIRE) -- FFW Corporation (the “Corporation”) (OTC PINK: FFWC) (1/22/19 Close: $39.35), parent corporation of Crossroads Bank (the “Bank”), announced earnings for the three and six months ended December 31, 2018.

For the three months ended December 31, 2018, the Corporation reported net income of $1,148,000 or $1.00 per common share compared to $1,121,000 or $0.96 per common share for the three months ended December 31, 2017.  Net interest income for the three months ended December 31, 2018 was $3,297,000 compared to $3,243,000 for the three months ended December 31, 2017.  The provision for loan losses was $56,000 for the three months ended December 31, 2018 and $88,000 for the three months ended December 31, 2017.  Total noninterest income was $814,000 for the three months ended December 31, 2018 compared to $823,000 for the three months ended December 31, 2017.  Noninterest expense was $2,797,000 for the three months ended December 31, 2018 and $2,616,000 for the three months ended December 31, 2017.    

For the six months ended December 31, 2018, the Corporation reported net income of $2,253,000 or $1.95 per common share compared to $2,542,000 or $2.18 per common share for the six months ended December 31, 2017.  Net interest income for the six months ended December 31, 2018 was $6,611,000 compared to $6,603,000 for the six months ended December 31, 2017.  The Company recognized a provision for loan losses of $131,000 for the six months ended December 31, 2018.  This is compared to a negative provision for loan losses of ($231,000) for the six months ended December 31, 2017.  The negative provision was due to a significant recovery of a previously charged-off commercial loan.  Total noninterest income was $1,681,000 for the six months ended December 31, 2018 compared to $1,610,000 for the six months ended December 31, 2017.  Noninterest expense was $5,557,000 for the six months ended December 31, 2018 and $5,189,000 for the six months ended December 31, 2017.

The three and six months ended December 31, 2018 represented a return on average common equity of 11.24% and 11.03%, respectively, compared to 11.25% and 12.87% for the three and six month periods ended December 31, 2017.  The three and six months ended December 31, 2018 represented a return on average assets of 1.13% and 1.13%, respectively, compared to 1.17% and 1.34%, for the three and six month periods ended December 31, 2017.

The allowance for loan losses as a percentage of gross loans receivable was 1.43% at December 31, 2018 compared to 1.40% at June 30, 2018.  Nonperforming assets were $3,544,000 at December 31, 2018 compared to $3,412,000 at June 30, 2018.

As of December 31, 2018, FFWC’s equity-to-assets ratio was 10.41% compared to 10.54% at June 30, 2018.  Total assets at December 31, 2018 were $398,200,000 compared to $379,790,000 at June 30, 2018.  Shareholders’ equity was $41,447,000 at December 31, 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

  December 31June 30 
  20182018 
  Unaudited  
Assets   
Cash and due from financial institutions$  9,871,066 $  6,288,268  
Interest-bearing deposits in other financial institutions 23,483,090  11,741,584  
 Cash and cash equivalents 33,354,156  18,029,852  
    
Securities available for sale 76,562,528  78,489,583  
Loans receivable, net of allowance for loan losses of $3,865,441 at   
 December 31, 2018 and $3,716,543 at June 30, 2018 266,464,643  260,714,092  
Loans held for sale    -    938,686  
Federal Home Loan Bank stock, at cost  1,462,500  1,462,500  
Accrued interest receivable  2,148,686  1,962,831  
Premises and equipment, net  5,682,547  5,825,455  
Mortgage servicing rights  853,075  823,965  
Cash surrender value of life insurance  8,727,027  8,585,667  
Goodwill  1,213,898  1,213,898  
Repossessed Assets 229,980  167,000  
Other assets  1,500,690  1,576,057  
 Total assets$   398,199,730  $   379,789,586   
     
Liabilities and shareholders' equity   
Deposits   
 Noninterest-bearing $  34,878,246 $  30,689,658  
 Interest-bearing 316,814,461  304,215,798  
 Total deposits  351,692,707  334,905,456  
     
Borrowings 2,000,000  2,000,000  
Accrued expenses and other liabilities 3,059,623  2,872,683  
 Total liabilities 356,752,330  339,778,139  
     
Shareholders' equity   
Common stock, $.01 par; 2,000,000 shares authorized;   
 Issued: 1,836,328; outstanding: 1,149,480 - December 31, 2018 and 1,165,980 - June 30, 2018 18,363  18,363  
Additional paid-in capital 9,706,530  9,624,150  
Retained earnings  42,083,524  40,313,968  
Accumulated other comprehensive income 632,578  344,886  
Treasury stock, at cost: 686,848 shares at December 31, 2018 and 670,348 shares at June 30, 2018 (10,993,595) (10,289,920) 
 Total shareholders' equity  41,447,400  40,011,447  
     
 Total liabilities and shareholders' equity $   398,199,730  $   379,789,586   
     

FFW Corporation
Selected Financial Information
Consolidated Statement of Income

   Three Months Ended December 31Six Months Ended December 31
   2018201720182017
   UnauditedUnauditedUnauditedUnaudited
Interest and dividend income:    
 Loans, including fees$  3,306,392$  3,050,105$  6,621,629$  6,210,121 
 Taxable securities   346,492   287,146   663,645   576,697 
 Tax exempt securities   300,967   333,801   610,321   654,001 
 Other   130,703   62,781   198,228   121,373 
  Total interest and dividend income   4,084,554   3,733,833   8,093,823   7,562,192 
       
Interest expense:    
 Deposits   778,315   475,094   1,465,130   925,703 
 Borrowings   8,740   16,077   17,702   33,335 
  Total interest expense   787,055   491,171   1,482,832   959,038 
       
Net interest income   3,297,499    3,242,662    6,610,991    6,603,154  
       
Provision for loan losses   56,118   88,000   131,118   (231,000)
       
Net interest income after provision for     
 loan losses   3,241,381    3,154,662    6,479,873    6,834,154  
       
Noninterest income:    
 Net gains on sales of securities   -    -    18,111   -  
 Net gains on sales of loans   63,102   85,760   192,737   198,433 
 Commission income   247,220   230,167   488,470   458,520 
 Service charges and fees   248,561   203,357   470,024   413,400 
 Earnings on life insurance   70,397   69,341   141,360   141,205 
 Other   185,131   234,454   370,018   398,789 
  Total noninterest income    814,411   823,079   1,680,720   1,610,347 
       
Noninterest expense:    
 Salaries and benefits   1,565,753   1,448,249   3,130,861   2,885,875 
 Occupancy and equipment   303,964   319,923   624,875   608,677 
 Professional   96,657   101,857   190,381   204,080 
 Marketing   95,565   102,542   194,812   199,403 
 Deposit insurance premium   33,000   32,091   61,542   65,669 
 Regulatory assessment   8,099   5,656   16,198   11,313 
 Correspondent bank charges   20,250   18,453   39,190   33,799 
 Data processing   231,563   177,015   457,671   351,821 
 Printing, postage and supplies   67,474   61,796   113,912   122,579 
 Expense on life insurance   18,730   -    37,460   (3,612)
 Contribution expense   4,735   4,050   11,552   44,950 
 Expense on REO   3,157   32,168   8,822   48,060 
 Other   348,161   311,888   669,693   616,294 
  Total noninterest expense   2,797,108   2,615,688   5,556,969   5,188,908 
       
Income before income taxes   1,258,684    1,362,053    2,603,624    3,255,593  
       
Income tax expense    110,941   240,569   351,098   713,957 
       
Net income $   1,147,743 $   1,121,484 $   2,252,526 $   2,541,636  
          

FFW Corporation
Selected Financial Information
Key Balances and Ratios

 Three Months Ended December 31Six Months Ended December 31
 2018201720182017
 UnauditedUnauditedUnauditedUnaudited
Per common share data:    
Earnings$1.00 $0.96 $1.95 $2.18 
Diluted earnings$1.00 $0.96 $1.95 $2.18 
Dividends paid$0.21 $0.19 $0.42 $0.38 
Average shares issued and outstanding 1,149,541  1,165,980  1,154,165  1,165,980 
Shares outstanding end of period 1,149,480  1,165,980  1,149,480  1,165,980 
     
Supplemental data:    
Net interest margin ** 3.45% 3.63% 3.53% 3.74%
Return on average assets *** 1.13% 1.17% 1.13% 1.34%
Return on average common equity *** 11.24% 11.25% 11.03% 12.87%
     
 December 31June 30  
 20182018  
Nonperforming assets *$3,544,326 $3,412,108   
Repossessed assets$229,980 $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