Press Release

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

FFW Corporation Announces Earnings for the Quarter and Year to Date Ended December 31, 2019

Company Release - 1/24/2020 8:41 AM ET

WABASH, Ind., Jan. 24, 2020 (GLOBE NEWSWIRE) -- FFW Corporation (the “Corporation”) (OTC PINK: FFWC) (1/23/20 Close: $43.00), parent corporation of Crossroads Bank (the “Bank”), announced earnings for the three and six months ended December 31, 2019.

For the three months ended December 31, 2019, the Corporation reported net income of $1,267,000 or $1.11 per common share compared to $1,148,000 or $1.00 per common share for the three months ended December 31, 2018.  Net interest income for the three months ended December 31, 2019 was $3,410,000 compared to $3,297,000 for the three months ended December 31, 2018.  The provision for loan losses was $50,000 for the three months ended December 31, 2019 and $56,000 for the three months ended December 31, 2018.  Total noninterest income was $1,045,000 for the three months ended December 31, 2019 compared to $814,000 for the three months ended December 31, 2018.  Noninterest expense was $2,938,000 for the three months ended December 31, 2019 and $2,797,000 for the three months ended December 31, 2018.

For the six months ended December 31, 2019, the Corporation reported net income of $2,503,000 or $2.19 per common share compared to $2,253,000 or $1.95 per common share for the six months ended December 31, 2018.  Net interest income for the six months ended December 31, 2019 was $6,901,000 compared to $6,611,000 for the six months ended December 31, 2018.  The Company recognized a provision for loan losses of $125,000 for the six months ended December 31, 2019 and $131,000 for the six months ended December 31, 2018.  Total noninterest income was $2,056,000 for the six months ended December 31, 2019 compared to $1,681,000 for the six months ended December 31, 2018.  Noninterest expense was $5,928,000 for the six months ended December 31, 2019 and $5,557,000 for the six months ended December 31, 2018.

The three and six months ended December 31, 2019 represented a return on average common equity of 10.89% and 10.83%, respectively, compared to 11.24% and 11.03% for the three and six month periods ended December 31, 2018.  The three and six months ended December 31, 2019 represented a return on average assets of 1.20% and 1.19%, respectively, compared to 1.13% and 1.13%, for the three and six month periods ended December 31, 2018.

The allowance for loan losses as a percentage of gross loans receivable was 1.37% at December 31, 2019 compared to 1.35% at June 30, 2019.  Nonperforming assets were $3,278,000 at December 31, 2019 compared to $3,693,000 at June 30, 2019.

As of December 31, 2019, FFWC’s equity-to-assets ratio was 11.10% compared to 10.79% at June 30, 2019.  Total assets at December 31, 2019 were $417,095,000 compared to $414,517,000 at June 30, 2019.  Shareholders’ equity was $46,318,000 at December 31, 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

 December 31June 30
  2019 2019
 Unaudited 
Assets  
Cash and due from financial institutions$5,860,857 $4,897,871 
Interest-bearing deposits in other financial institutions 15,070,735  21,857,520 
Cash and cash equivalents 20,931,592  26,755,391 
   
Securities available for sale 79,779,766  85,275,452 
Loans receivable, net of allowance for loan losses of $4,070,625 at  
December 31, 2019 and $3,857,473 at June 30, 2019 289,164,000  279,796,467 
Loans held for sale 2,899,343  1,340,765 
Federal Home Loan Bank stock, at cost 1,462,500  1,462,500 
Accrued interest receivable 2,162,610  2,240,851 
Premises and equipment, net 7,799,158  5,442,196 
Mortgage servicing rights 827,314  762,392 
Cash surrender value of life insurance 9,012,266  8,867,601 
Goodwill 1,213,898  1,213,898 
Repossessed Assets 271,977  194,730 
Other assets 1,570,468  1,165,252 
Total assets$ 417,094,892 $ 414,517,495 
   
Liabilities and shareholders' equity  
Deposits  
Noninterest-bearing$30,513,318 $33,005,454 
Interest-bearing 329,681,287  331,115,288 
Total deposits 360,194,605  364,120,742 
   
Borrowings 7,500,000  2,000,000 
Accrued expenses and other liabilities 3,082,617  3,659,180 
Total liabilities 370,777,222  369,779,922 
   
Shareholders' equity  
Common stock, $.01 par; 2,000,000 shares authorized;  
Issued: 1,836,328; outstanding: 1,137,783 - December 31, 2019 and 1,149,783 - June 30, 2019 18,363  18,363 
Additional paid-in capital 9,835,646  9,777,849 
Retained earnings 45,671,538  43,691,848 
Accumulated other comprehensive income 2,278,867  2,238,257 
Treasury stock, at cost: 698,545 shares at December 31, 2019 and 686,545 shares at June 30, 2019 (11,486,744) (10,988,744)
Total shareholders' equity 46,317,670  44,737,573 
   
Total liabilities and shareholders' equity $ 417,094,892 $ 414,517,495 
   

FFW Corporation
Selected Financial Information
Consolidated Statement of Income

 Three Months Ended December 31Six Months Ended December 31
  2019 2018 2019 2018
 UnauditedUnauditedUnauditedUnaudited
Interest and dividend income:    
Loans, including fees$3,685,967 $3,306,392$7,389,196 $6,621,629
Taxable securities 291,542  346,492 684,358  663,645
Tax exempt securities 312,265  300,967 625,859  610,321
Other 59,806  130,703 166,787  198,228
Total interest and dividend income 4,349,580  4,084,554 8,866,200  8,093,823
     
Interest expense:    
Deposits 928,987  778,315 1,944,647  1,465,130
Borrowings 10,438  8,740 20,278  17,702
Total interest expense 939,425  787,055 1,964,925  1,482,832
     
Net interest income 3,410,155  3,297,499 6,901,275  6,610,991
     
Provision for loan losses 50,000  56,118 125,000  131,118
     
Net interest income after provision for     
loan losses 3,360,155  3,241,381 6,776,275  6,479,873
     
Noninterest income:    
Net gains on sales of securities (259) - (259) 18,111
Net gains on sales of loans 190,773  63,102 357,358  192,737
Net gains (losses) on sales of REO 4,565  - 4,565  -
Commission income 277,207  247,220 589,813  488,470
Service charges and fees 290,980  248,561 517,670  470,024
Earnings on life insurance 73,346  70,397 144,665  141,360
Other 208,352  185,131 442,539  370,018
Total noninterest income 1,044,964  814,411 2,056,351  1,680,720
     
Noninterest expense:    
Salaries and benefits 1,581,507  1,565,753 3,160,630  3,130,861
Occupancy and equipment 288,883  303,964 584,575  624,875
Professional 148,299  96,657 288,638  190,381
Marketing 91,721  95,565 199,905  194,812
Deposit insurance premium 5,939  33,000 38,939  61,542
Regulatory assessment 8,954  8,099 17,907  16,198
Correspondent bank charges 19,293  20,250 39,623  39,190
Data processing 344,458  231,563 661,396  457,671
Printing, postage and supplies 68,995  67,474 137,514  113,912
Expense on life insurance 14,894  18,730 29,789  37,460
Contribution expense 9,457  4,735 19,003  11,552
Expense on REO 17,148  3,157 20,672  8,822
Other 338,330  348,161 729,756  669,693
Total noninterest expense 2,937,878  2,797,108 5,928,347  5,556,969
     
Income before income taxes 1,467,241  1,258,684 2,904,279  2,603,624
     
Income tax expense 199,966  110,941 401,212  351,098
     
Net income $ 1,267,275 $ 1,147,743$ 2,503,067 $ 2,252,526
 

FFW Corporation
Selected Financial Information
Key Balances and Ratios

  Three Months Ended December 31Six Months Ended December 31
   2019 2018 2019 2018
  UnauditedUnauditedUnauditedUnaudited
Per common share data:    
Earnings $1.11  $1.00  $2.19  $1.95 
Diluted earnings $1.11  $1.00  $2.19  $1.95 
Dividends paid $0.23  $0.21  $0.46  $0.42 
Average shares issued and outstanding 1,137,783  1,149,541  1,141,109  1,154,165 
Shares outstanding end of period 1,137,783  1,149,480  1,137,783  1,149,480 
      
Supplemental data:    
Net interest margin ** 3.46% 3.45% 3.51% 3.53%
Return on average assets *** 1.20% 1.13% 1.19% 1.13%
Return on average common equity *** 10.89% 11.24% 10.83% 11.03%
      
  December 31June 30  
   2019 2019  
Nonperforming assets * $3,278,358  $3,692,825   
Repossessed assets $271,977  $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