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FFW Corporation Announces Earnings for the Year Ended June 30, 2019

Company Release - 8/5/2019 11:36 AM ET

WABASH, Ind., Aug. 05, 2019 (GLOBE NEWSWIRE) -- FFW Corporation (the “Corporation”) (OTC PINK: FFWC) (8/2/19 Close: $41.51), parent corporation of Crossroads Bank (the “Bank”), announced earnings for the three and twelve months ended June 30, 2019.

For the three months ended June 30, 2019, the Corporation reported net income of $1,037,000 or $0.90 per common share compared to $1,136,000 or $0.97 per common share for the three months ended June 30, 2018.  Net interest income for the three months ended June 30, 2019 was $3,295,000 compared to $3,383,000 for the three months ended June 30, 2018.  The provision for loan losses was $50,000 for the three months ended June 30, 2019 compared to a negative provision for loan losses of ($62,000) for the three months ended June 30, 2018.  Total noninterest income was $770,000 for the three months ended June 30, 2019 compared to $784,000 for the three months ended June 30, 2018.  Noninterest expense was $2,844,000 for the three months ended June 30, 2019 and $2,850,000 for the three months ended June 30, 2018.   

For the twelve months ended June 30, 2019, the Corporation reported net income of $4,344,000 or $3.77 per common share compared to $4,805,000 or $4.12 per common share for the twelve months ended June 30, 2018.  Net interest income for the twelve months ended June 30, 2019 was $13,190,000 compared to $13,193,000 for the twelve months ended June 30, 2018.  The Company recognized a provision for loan losses of $231,000 for the twelve months ended June 30, 2019.  This is compared to a negative provision for loan losses of ($205,000) for the twelve months ended June 30, 2018.  The negative provision was due to a significant recovery of a previously charged-off commercial loan.  Total noninterest income was $3,177,000 for the twelve months ended June 30, 2019 compared to $3,262,000 for the twelve months ended June 30, 2018.  Noninterest expense was $11,151,000 for the twelve months ended June 30, 2019 and $10,671,000 for the twelve months ended June 30, 2018.

The three and twelve months ended June 30, 2019 represented a return on average common equity of 9.49% and 10.39%, respectively, compared to 11.33% and 12.13% for the three and twelve month periods ended June 30, 2018.  The three and twelve months ended June 30, 2019 represented a return on average assets of 1.02% and 1.09%, respectively, compared to 1.20% and 1.28%, for the three and twelve month periods ended June 30, 2018.

The allowance for loan losses as a percentage of gross loans receivable was 1.35% at June 30, 2019 compared to 1.40% at June 30, 2018.  Nonperforming assets were $3,693,000 at June 30, 2019 compared to $3,412,000 at June 30, 2018.

As of June 30, 2019, FFWC’s equity-to-assets ratio was 10.79% compared to 10.54% at June 30, 2018.  Total assets at June 30, 2019 were $414,517,000 compared to $379,790,000 at June 30, 2018.  Shareholders’ equity was $44,738,000 at June 30, 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

  June 30June 30
   2019  2018 
  Unaudited 
Assets  
Cash and due from financial institutions$4,897,871 $6,288,268 
Interest-bearing deposits in other financial institutions 21,857,520  11,741,584 
 Cash and cash equivalents 26,755,391  18,029,852 
   
Securities available for sale 85,328,768  78,489,583 
Loans receivable, net of allowance for loan losses of $3,857,473 at  
 June 30, 2019 and $3,716,543 at June 30, 2018 279,796,467  260,714,092 
Loans held for sale 1,340,765  938,686 
Federal Home Loan Bank stock, at cost 1,462,500  1,462,500 
Accrued interest receivable 2,240,851  1,962,831 
Premises and equipment, net 5,442,196  5,825,455 
Mortgage servicing rights 762,392  823,965 
Cash surrender value of life insurance 8,867,601  8,585,667 
Goodwill 1,213,898  1,213,898 
Repossessed Assets 194,730  167,000 
Other assets 1,111,936  1,576,057 
 Total assets$414,517,495 $379,789,586 
    
Liabilities and shareholders' equity  
Deposits  
 Noninterest-bearing$33,005,454 $30,689,658 
 Interest-bearing 331,115,288  304,215,798 
 Total deposits 364,120,742  334,905,456 
    
Borrowings 2,000,000  2,000,000 
Accrued expenses and other liabilities 3,659,180  2,872,683 
 Total liabilities 369,779,922  339,778,139 
    
Shareholders' equity  
Common stock, $.01 par; 2,000,000 shares authorized;  
 Issued: 1,836,328; outstanding: 1,149,783 - June 30, 2019 and 1,165,980 - June 30, 2018 18,363  18,363 
Additional paid-in capital 9,777,849  9,624,150 
Retained earnings 43,691,848  40,313,968 
Accumulated other comprehensive income 2,238,257  344,886 
Treasury stock, at cost: 686,545 shares at June 30, 2019 and 670,348 shares at June 30, 2018 (10,988,744) (10,289,920)
 Total shareholders' equity 44,737,573  40,011,447 
    
 Total liabilities and shareholders' equity $414,517,495 $379,789,586 
    

FFW Corporation 
Selected Financial Information

Consolidated Statement of Income

   Three Months Ended June 30Twelve Months Ended June 30
    2019  2018  2019  2018 
   Unaudited Unaudited 
Interest and dividend income:    
 Loans, including fees$3,475,982 $3,296,696 $13,447,651 $12,525,187 
 Taxable securities 406,219  321,186  1,452,121  1,206,208 
 Tax exempt securities 331,714  313,952  1,244,855  1,288,479 
 Other 114,914  43,049  475,939  201,595 
  Total interest and dividend income 4,328,829  3,974,883  16,620,566  15,221,469 
       
Interest expense:    
 Deposits 1,024,793  581,303  3,395,598  1,967,240 
 Borrowings 8,647  10,332  34,900  60,982 
  Total interest expense 1,033,440  591,635  3,430,498  2,028,222 
       
Net interest income 3,295,389  3,383,248  13,190,068  13,193,247 
       
Provision for loan losses 50,000  (62,000) 231,118  (205,000)
       
Net interest income after provision for     
 loan losses 3,245,389  3,445,248  12,958,950  13,398,247  
       
Noninterest income:    
 Net gains on sales of securities -  -  43,776  - 
 Net gains on sales of loans 65,984  94,090  298,129  366,008 
 Net gains (losses) on fixed assets (15,716) -  (15,716) - 
 Commission income 247,601  257,754  962,088  966,837 
 Service charges and fees 161,570  184,139  816,743  840,459 
 Earnings on life insurance 70,701  69,328  281,934  279,049 
 Other 239,421  178,581  790,076  809,257 
  Total noninterest income 769,561  783,892  3,177,030  3,261,610 
       
Noninterest expense:    
 Salaries and benefits 1,522,509  1,601,975  6,134,248  5,938,701 
 Occupancy and equipment 320,367  330,443  1,239,158  1,284,475 
 Professional 87,294  142,004  408,750  448,879 
 Marketing 94,446  84,907  388,414  378,486 
 Deposit insurance premium 21,000  29,787  72,589  129,337 
 Regulatory assessment 8,099  5,657  33,147  23,134 
 Correspondent bank charges 22,255  19,414  81,599  70,784 
 Data processing 263,074  194,827  979,574  721,627 
 Printing, postage and supplies 78,318  62,921  248,362  260,614 
 Expense on life insurance 18,730  -  74,921  (3,612)
 Contribution expense 8,352  5,900  41,652  56,040 
 Expense on REO 3,037  7,803  18,941  86,164 
 Other 396,628  364,059  1,430,051  1,276,293 
  Total noninterest expense 2,844,109  2,849,697  11,151,406  10,670,922 
       
Income before income taxes 1,170,841  1,379,443  4,984,574  5,988,935 
       
Income tax expense 133,385  242,990  640,814  1,184,160 
       
Net income $1,037,456 $1,136,453 $4,343,760 $4,804,775 
     

FFW Corporation 
Selected Financial Information

Key Balances and Ratios

  Three Months Ended June 30Twelve Months Ended June 30
   2019  2018  2019  2018 
  Unaudited Unaudited 
Per common share data:    
Earnings$0.90 $0.97 $3.77 $4.12 
Diluted earnings$0.90 $0.97 $3.77 $4.12 
Dividends paid$0.21 $0.69 $0.84 $1.26 
Average shares issued and outstanding 1,149,783  1,165,980  1,151,968  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 ** 3.43%  3.82%  3.52%  3.76% 
Return on average assets *** 1.02%  1.20%  1.09%  1.28% 
Return on average common equity *** 9.49%  11.33%  10.39%  12.13% 
      
  June 30June 30  
   2019  2018   
Nonperforming assets *$3,692,825 $3,412,108   
Repossessed assets$194,730 $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