Press Release

Email page PDF view Print view Email Alert RSS Feeds Social media sharing

FFW Corporation Announces Earnings for the Quarter Ended September 30, 2019

Company Release - 10/23/2019 7:38 AM ET

WABASH, Indiana, Oct. 23, 2019 (GLOBE NEWSWIRE) -- FFW Corporation (the “Corporation”) (OTC PINK: FFWC) (10/22/19 Close: $41.20), parent corporation of Crossroads Bank (the “Bank”), announced earnings for the three months ended September 30, 2019.

For the three months ended September 30, 2019, the Corporation reported net income of $1,236,000 or $1.08 per common share compared to $1,105,000 or $0.95 per common share for the three months ended September 30, 2018.  Net interest income for the three months ended September 30, 2019 was $3,491,000 compared to $3,313,000 for the three months ended September 30, 2018.  The provision for loan losses was $75,000 for the three months ended September 30, 2019 and September 30, 2018.  Total noninterest income was $1,011,000 for the three months ended September 30, 2019 compared to $866,000 for the three months ended September 30, 2018.  Noninterest expense was $2,990,000 for the three months ended September 30, 2019 and $2,760,000 for the three months ended September 30, 2018.    

The three months ended September 30, 2019 represented a return on average common equity of 10.77% compared to 10.82% for the three month period ended September 30, 2018.  The three months ended September 30, 2019 represented a return on average assets of 1.18% compared to 1.13% for the three month period ended September 30, 2018.

The allowance for loan losses as a percentage of gross loans receivable was 1.34% at September 30, 2019 compared to 1.35% at June 30, 2019.  Nonperforming assets were $4,003 ,000 at September 30, 2019 compared to $3,693,000 at June 30, 2019.

As of September 30, 2019, FFWC’s equity-to-assets ratio was 10.89% compared to 10.79% at June 30, 2019.  Total assets at September 30, 2019 were $419,048,000 compared to $414,517,000 at June 30, 2019.  Shareholders’ equity was $45,615,000 at September 30, 2019 compared to $44,738,000 at June 30, 2019.  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
 
  September 30June 30 
   2019  2019  
  Unaudited  
Assets   
Cash and due from financial institutions$8,358,700 $4,897,871  
Interest-bearing deposits in other financial institutions 11,619,758  21,857,520  
 Cash and cash equivalents 19,978,458  26,755,391  
    
Securities available for sale 85,316,862  85,275,452  
Loans receivable, net of allowance for loan losses of $3,793,444 at   
 June 30, 2019 and $3,857,473 at June 30, 2019 289,282,785  279,796,467  
Loans held for sale 955,494  1,340,765  
Federal Home Loan Bank stock, at cost 1,462,500  1,462,500  
Accrued interest receivable 2,278,464  2,240,851  
Premises and equipment, net 7,206,415  5,442,196  
Mortgage servicing rights 764,410  762,392  
Cash surrender value of life insurance 8,938,919  8,867,601  
Goodwill 1,213,898  1,213,898  
Repossessed Assets 306,977  194,730  
Other assets 1,343,224  1,165,252  
 Total assets$ 419,048,406 $ 414,517,495  
     
Liabilities and shareholders' equity   
Deposits   
 Noninterest-bearing$29,543,613 $33,005,454  
 Interest-bearing 332,707,300  331,115,288  
   Total deposits 362,250,913  364,120,742  
     
Borrowings 7,000,000  2,000,000  
Accrued expenses and other liabilities 4,182,482  3,659,180  
 Total liabilities 373,433,395  369,779,922  
     
Shareholders' equity   
Common stock, $.01 par; 2,000,000 shares authorized;   
 Issued: 1,836,328; outstanding: 1,137,783 - September 30, 2019 and 1,149,783 - June 30, 2019 18,363  18,363  
Additional paid-in capital 9,809,874  9,777,849  
Retained earnings 44,665,951  43,691,848  
Accumulated other comprehensive income 2,607,567  2,238,257  
Treasury stock, at cost: 698,545 shares at September 30, 2019 and 686,545 shares at June 30, 2019 (11,486,744) (10,988,744) 
 Total shareholders' equity 45,615,011  44,737,573  
     
 Total liabilities and shareholders' equity $ 419,048,406 $ 414,517,495  
     



FFW Corporation
Selected Financial Information
Consolidated Balance Sheet
 
   Three Months Ended September 30
    2019 2018
   UnauditedUnaudited
Interest and dividend income:  
 Loans, including fees$3,703,229$3,315,237
 Taxable securities 392,816 317,153
 Tax exempt securities 313,594 309,354
 Other 106,981 67,525
  Total interest and dividend income 4,516,620 4,009,269
     
Interest expense:  
 Deposits 1,015,660 686,815
 Borrowings 9,840 8,962
  Total interest expense 1,025,500 695,777
     
Net interest income 3,491,120 3,313,492
     
Provision for loan losses 75,000 75,000
     
Net interest income after provision for   
 loan losses 3,416,120 3,238,492
     
Noninterest income:  
 Net gains on sales of securities - 18,111
 Net gains on sales of loans 166,585 129,635
 Commission income 312,606 241,250
 Service charges and fees 226,690 221,463
 Earnings on life insurance 71,319 70,963
 Other 234,187 184,887
  Total noninterest income 1,011,387 866,309
     
Noninterest expense:  
 Salaries and benefits 1,579,123 1,565,108
 Occupancy and equipment 295,692 320,911
 Professional 140,339 93,724
 Marketing 108,184 99,247
 Deposit insurance premium 33,000 28,542
 Regulatory assessment 8,953 8,099
 Correspondent bank charges 20,330 18,940
 Data processing 316,938 226,108
 Printing, postage and supplies 68,519 46,438
 Expense on life insurance 14,895 18,730
 Contribution expense 9,546 6,817
 Expense on REO 3,524 5,665
 Other 391,426 321,532
  Total noninterest expense 2,990,469 2,759,861
     
Income before income taxes 1,437,038 1,344,940
     
Income tax expense 201,246 240,157
     
Net income $ 1,235,792$ 1,104,783


 
FFW Corporation
Selected Financial Information
Key Balances and Ratios
  Three Months Ended September 30
   2019  2018 
  UnauditedUnaudited
Per common share data:  
Earnings$1.08 $0.95 
Diluted earnings$1.08 $0.95 
Dividends paid$0.23 $0.21 
Average shares issued and outstanding 1,144,435  1,158,790 
Shares outstanding end of period 1,137,783  1,149,480 
    
Supplemental data:  
Net interest margin ** 3.56% 3.61%
Return on average assets *** 1.18% 1.13%
Return on average common equity *** 10.77% 10.82%
    
  September 30June 30
   2019  2019 
Nonperforming assets *$4,003,428 $3,692,825 
Repossessed assets$306,977 $194,730 
    
*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