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FFW Corporation Announces Earnings for the Nine Months Ended March 31, 2019

Company Release - 4/24/2019 2:47 PM ET

WABASH, Ind., April 24, 2019 (GLOBE NEWSWIRE) -- FFW Corporation (the “Corporation”) (OTC PINK: FFWC) (4/23/19 Close: $42.00), parent corporation of Crossroads Bank (the “Bank”), announced earnings for the three and nine months ended March 31, 2019.

For the three months ended March 31, 2019, the Corporation reported net income of $1,054,000 or $0.92 per common share compared to $1,127,000 or $0.97 per common share for the three months ended March 31, 2018.  Net interest income for the three months ended March 31, 2019 was $3,284,000 compared to $3,207,000 for the three months ended March 31, 2018.  The provision for loan losses was $50,000 for the three months ended March 31, 2019 and $88,000 for the three months ended March 31, 2018.  Total noninterest income was $727,000 for the three months ended March 31, 2019 compared to $867,000 for the three months ended March 31, 2018.  Noninterest expense was $2,750,000 for the three months ended March 31, 2019 and $2,632,000 for the three months ended March 31, 2018.    

For the nine months ended March 31, 2019, the Corporation reported net income of $3,306,000 or $2.87 per common share compared to $3,668,000 or $3.15 per common share for the nine months ended March 31, 2018.  Net interest income for the nine months ended March 31, 2019 was $9,895,000 compared to $9,810,000 for the nine months ended March 31, 2018.  The Company recognized a provision for loan losses of $181,000 for the nine months ended March 31, 2019.  This is compared to a negative provision for loan losses of ($143,000) for the nine months ended March 31, 2018.  The negative provision was due to a significant recovery of a previously charged-off commercial loan.  Total noninterest income was $2,407,000 for the nine months ended March 31, 2019 compared to $2,478,000 for the nine months ended March 31, 2018.  Noninterest expense was $8,307,000 for the nine months ended March 31, 2019 and $7,821,000 for the nine months ended March 31, 2018.

The three and nine months ended March 31, 2019 represented a return on average common equity of 10.11% and 10.72%, respectively, compared to 11.44% and 12.39% for the three and nine month periods ended March 31, 2018.  The three and nine months ended March 31, 2019 represented a return on average assets of 1.08% and 1.12%, respectively, compared to 1.23% and 1.31%, for the three and nine month periods ended March 31, 2018.

The allowance for loan losses as a percentage of gross loans receivable was 1.42% at March 31, 2019 compared to 1.40% at June 30, 2018.  Nonperforming assets were $3,735,000 at March 31, 2019 compared to $3,412,000 at June 30, 2018.

As of March 31, 2019, FFWC’s equity-to-assets ratio was 10.82% compared to 10.54% at June 30, 2018.  Total assets at March 31, 2019 were $395,551,000 compared to $379,790,000 at June 30, 2018.  Shareholders’ equity was $42,807,000 at March 31, 2019 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.  Crossroads Bank, Member FDIC.

FFW Corporation
Selected Financial Information
Consolidated Balance Sheet

  March 31June 30
   2019 2018
  Unaudited 
Assets  
Cash and due from financial institutions$  5,335,407 $  6,288,268 
Interest-bearing deposits in other financial institutions 19,674,257  11,741,584 
 Cash and cash equivalents 25,009,664  18,029,852 
   
Securities available for sale 79,866,840  78,489,583 
Loans receivable, net of allowance for loan losses of $3,873,554 at  
 March 31, 2019 and $3,716,543 at June 30, 2018 269,369,468  260,714,092 
Loans held for sale    373,520    938,686 
Federal Home Loan Bank stock, at cost  1,462,500  1,462,500 
Accrued interest receivable  1,928,695  1,962,831 
Premises and equipment, net  5,539,240  5,825,455 
Mortgage servicing rights  831,034  823,965 
Cash surrender value of life insurance  8,796,900  8,585,667 
Goodwill  1,213,898  1,213,898 
Repossessed Assets 229,980  167,000 
Other assets  929,339  1,576,057 
 Total assets$   395,551,078  $   379,789,586  
    
Liabilities and shareholders' equity  
Deposits  
 Noninterest-bearing $  32,927,004 $  30,689,658 
 Interest-bearing 314,334,981  304,215,798 
   Total deposits  347,261,985  334,905,456 
    
Borrowings 2,000,000  2,000,000 
Accrued expenses and other liabilities 3,482,417  2,872,683 
 Total liabilities 352,744,402  339,778,139 
    
Shareholders' equity  
Common stock, $.01 par; 2,000,000 shares authorized;  
 Issued: 1,836,328; outstanding: 1,149,783 - March 31, 2019 and 1,165,980 - June 30, 2018 18,363  18,363 
Additional paid-in capital 9,745,824  9,624,150 
Retained earnings  42,895,846  40,313,968 
Accumulated other comprehensive income 1,135,387  344,886 
Treasury stock, at cost: 686,545 shares at March 31, 2019 and 670,348 shares at June 30, 2018 (10,988,744) (10,289,920)
 Total shareholders' equity  42,806,676  40,011,447 
    
 Total liabilities and shareholders' equity $   395,551,078  $   379,789,586  
    

FFW Corporation
Selected Financial Information
Consolidated Statement of Income

   Three Months Ended March 31Nine Months Ended March 31
    2019 2018 2019 2018
   UnauditedUnauditedUnauditedUnaudited
Interest and dividend income:    
 Loans, including fees$  3,350,040 $  3,018,370$  9,971,669$  9,228,491 
 Taxable securities   382,257    308,325   1,045,902   885,022 
 Tax exempt securities   302,820    320,526   913,141   974,527 
 Other   162,797    37,173   361,025   158,546 
  Total interest and dividend income   4,197,914    3,684,394   12,291,737   11,246,586 
       
Interest expense:    
 Deposits   905,675    460,234   2,370,805   1,385,937 
 Borrowings   8,551    17,315   26,253   50,650 
  Total interest expense   914,226    477,549   2,397,058   1,436,587 
       
Net interest income   3,283,688     3,206,845    9,894,679    9,809,999  
       
Provision for loan losses   50,000    88,000   181,118   (143,000)
       
Net interest income after provision for     
 loan losses   3,233,688     3,118,845    9,713,561    9,952,999  
       
Noninterest income:    
 Net gains on sales of securities   25,665    -    43,776   -  
 Net gains on sales of loans   39,408    73,485   232,145   271,918 
 Commission income   226,017    250,563   714,487   709,083 
 Service charges and fees   185,149    242,920   655,173   656,320 
 Earnings on life insurance   69,873    68,516   211,233   209,721 
 Other   180,637    231,887   550,655   630,676 
  Total noninterest income    726,749    867,371   2,407,469   2,477,718 
       
Noninterest expense:    
 Salaries and benefits   1,480,878    1,450,851   4,611,739   4,336,726 
 Occupancy and equipment   293,916    345,355   918,791   954,032 
 Professional   131,075    102,795   321,456   306,875 
 Marketing   99,156    94,176   293,968   293,579 
 Deposit insurance premium   (9,953)   33,881   51,589   99,550 
 Regulatory assessment   8,850    6,164   25,048   17,477 
 Correspondent bank charges   20,154    17,571   59,344   51,370 
 Data processing   258,829    174,979   716,500   526,800 
 Printing, postage and supplies   56,132    75,114   170,044   197,693 
 Expense on life insurance   18,731    -    56,191   (3,612)
 Contribution expense   21,748    5,190   33,300   50,140 
 Expense on REO   7,082    30,301   15,904   78,361 
 Other   363,730    295,940   1,033,423   912,234 
  Total noninterest expense   2,750,328    2,632,317   8,307,297   7,821,225 
       
Income before income taxes   1,210,109     1,353,899    3,813,733    4,609,492  
       
Income tax expense    156,331    227,213   507,429   941,170 
       
Net income $   1,053,778  $   1,126,686 $   3,306,304 $   3,668,322  


FFW Corporation
Selected Financial Information
Key Balances and Ratios

  Three Months Ended March 31Nine Months Ended March 31
   2019 2018 2019 2018
  UnauditedUnauditedUnauditedUnaudited
Per common share data:    
Earnings$0.92 $0.97 $2.87 $3.15 
Diluted earnings$0.92 $0.97 $2.87 $3.15 
Dividends paid$0.21 $0.19 $0.63 $0.57 
Average shares issued and outstanding 1,149,685  1,165,980  1,152,694  1,165,980 
Shares outstanding end of period 1,149,783  1,165,980  1,149,783  1,165,980 
      
Supplemental data:    
Net interest margin ** 3.59% 3.74% 3.55% 3.74%
Return on average assets *** 1.08% 1.23% 1.12% 1.31%
Return on average common equity *** 10.11% 11.44% 10.72% 12.39%
      
  March 31June 30  
   2019 2018  
Nonperforming assets *$3,735,087 $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