Press Release

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

FFW Corporation Announces Earnings for the Nine Months Ended March 31, 2020

Company Release - 4/29/2020 11:51 AM ET

WABASH, Ind., April 29, 2020 (GLOBE NEWSWIRE) -- FFW Corporation (the “Corporation”) (OTC PINK: FFWC) (4/28/20 Close: $38.75), parent corporation of Crossroads Bank (the “Bank”), announced earnings for the three and nine months ended March 31, 2020.

For the three months ended March 31, 2020, the Corporation reported net income of $1,109,000 or $0.98 per common share compared to $1,054,000 or $0.92 per common share for the three months ended March 31, 2019.  Net interest income for the three months ended March 31, 2020 was $3,639,000 compared to $3,284,000 for the three months ended March 31, 2019.  The provision for loan losses was $75,000 for the three months ended March 31, 2020 and $50,000 for the three months ended March 31, 2019.  Total noninterest income was $774,000 for the three months ended March 31, 2020 compared to $727,000 for the three months ended March 31, 2019.  Noninterest expense was $3,067,000 for the three months ended March 31, 2020 and $2,750,000 for the three months ended March 31, 2019.    

President & CEO, Roger Cromer commented, “Results of operations for the quarter ended March 31, 2020 include our assessment of industries impacted by COVID-19.  We continue to analyze this globally stressed situation as we head into our fourth fiscal quarter of 2020.  We have been proud to support our communities impacted by COVID-19 by assisting approximately 150 local businesses access PPP funds totaling $13.0 million.  This translates to approximately 1,900 employees with guaranteed payroll for the next 8 weeks.  As we head into the fourth quarter, we continue to assist customers with loan deferments, we have ceased foreclosures and diligently work with each customer to meet their individual needs.  In addition, we contributed $50,000 to local Community Foundations to directly provide COVID-19 relief.”

For the nine months ended March 31, 2020, the Corporation reported net income of $3,612,000 or $3.17 per common share compared to $3,306,000 or $2.87 per common share for the nine months ended March 31, 2019.  Net interest income for the nine months ended March 31, 2020 was $10,540,000 compared to $9,895,000 for the nine months ended March 31, 2019.  The Company recognized a provision for loan losses of $200,000 for the nine months ended March 31, 2020 and $181,000 for the nine months ended March 31, 2019.  Total noninterest income was $2,830,000 for the nine months ended March 31, 2020 compared to $2,407,000 for the nine months ended March 31, 2019.  Noninterest expense was $8,996,000 for the nine months ended March 31, 2020 and $8,307,000 for the nine months ended March 31, 2019.

The three and nine months ended March 31, 2020 represented a return on average common equity of 9.85% and 10.36%, respectively, compared to 10.11% and 10.72% for the three and nine month periods ended March 31, 2019.  The three and nine months ended March 31, 2020 represented a return on average assets of 1.05% and 1.14%, respectively, compared to 1.08% and 1.12%, for the three and nine month periods ended March 31, 2019.

The allowance for loan losses as a percentage of gross loans receivable was 1.33% at March 31, 2020 compared to 1.35% at June 30, 2019.  Nonperforming assets were $2,736,000 at March 31, 2020 compared to $3,693,000 at June 30, 2019.

As of March 31, 2020, FFWC’s equity-to-assets ratio was 10.69% compared to 10.79% at June 30, 2019.  Total assets at March 31, 2020 were $423,617,000 compared to $414,517,000 at June 30, 2019.  Shareholders’ equity was $45,280,000 at March 31, 2020 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

  March 31June 30
   2020  2019 
  Unaudited 
Assets  
Cash and due from financial institutions$  5,558,214 $  4,897,871 
Interest-bearing deposits in other financial institutions 12,567,540  21,857,520 
 Cash and cash equivalents 18,125,754  26,755,391 
   
Securities available for sale 82,604,982  85,275,452 
Loans receivable, net of allowance for loan losses of $4,005,826 at  
 March 31, 2020 and $3,857,473 at June 30, 2019 296,723,240  279,796,467 
Loans held for sale   1,546,625    1,340,765 
Federal Home Loan Bank stock, at cost 1,462,500  1,462,500 
Accrued interest receivable 2,019,320  2,240,851 
Premises and equipment, net 8,500,800  5,442,196 
Mortgage servicing rights 677,408  762,392 
Cash surrender value of life insurance 9,085,429  8,867,601 
Goodwill 1,213,898  1,213,898 
Repossessed Assets 151,977  194,730 
Other assets 1,505,131  1,165,252 
 Total assets$  423,617,064  $  414,517,495  
    
Liabilities and shareholders' equity  
Deposits  
 Noninterest-bearing$  30,166,344 $  33,005,454 
 Interest-bearing 342,684,073  331,115,288 
   Total deposits 372,850,417  364,120,742 
    
Borrowings 2,000,000  2,000,000 
Accrued expenses and other liabilities 3,487,096  3,659,180 
 Total liabilities 378,337,513  369,779,922 
    
Shareholders' equity  
Common stock, $.01 par; 2,000,000 shares authorized;  
 Issued: 1,836,328; outstanding: 1,129,394 - March 31, 2020 and 1,149,783 - June 30, 2019 18,363  18,363 
Additional paid-in capital 9,803,957  9,777,849 
Retained earnings 46,520,886  43,691,848 
Accumulated other comprehensive income 877,705  2,238,257 
Treasury stock, at cost: 706,934 shares at March 31, 2020 and 686,545 shares at June 30, 2019 (11,941,360) (10,988,744)
 Total shareholders' equity 45,279,551  44,737,573 
    
 Total liabilities and shareholders' equity $  423,617,064  $  414,517,495  
    


FFW Corporation
Selected Financial Information
Consolidated Statement of Income

   Three Months Ended March 31Nine Months Ended March 31
    2020  2019  2020  2019
   UnauditedUnauditedUnauditedUnaudited
Interest and dividend income:    
 Loans, including fees$  3,783,885 $  3,350,040 $  11,173,081 $  9,971,669
 Taxable securities   357,866    382,257    1,042,224    1,045,902
 Tax exempt securities   313,098    302,820    938,957    913,141
 Other   66,667    162,797    233,454    361,025
  Total interest and dividend income   4,521,516    4,197,914    13,387,716    12,291,737
       
Interest expense:    
 Deposits   873,790    905,675    2,818,437    2,370,805
 Borrowings   9,156    8,551    29,434    26,253
  Total interest expense   882,946    914,226    2,847,871    2,397,058
       
Net interest income   3,638,570     3,283,688     10,539,845     9,894,679
       
Provision for loan losses   75,000    50,000    200,000    181,118
       
Net interest income after provision for     
 loan losses   3,563,570     3,233,688     10,339,845     9,713,561
       
Noninterest income:    
 Net gains on sales of securities   (4,286)   25,665    (4,545)   43,776
 Net gains on sales of loans   248,353    39,408    605,711    232,145
 Net gains (losses) on sales of REO   (25,433)   -     (20,868)   5,494
 Commission income   275,209    226,017    865,022    714,487
 Service charges and fees   30,911    185,149    548,581    655,173
 Earnings on life insurance   73,164    69,873    217,829    211,233
 Other   176,116    180,637    618,655    545,161
  Total noninterest income   774,034    726,749    2,830,385    2,407,469
       
Noninterest expense:    
 Salaries and benefits   1,679,223    1,480,878    4,839,853    4,611,739
 Occupancy and equipment   288,123    293,916    872,698    918,791
 Professional   130,038    131,075    418,676    321,456
 Marketing   95,689    99,156    295,594    293,968
 Deposit insurance premium   -     (9,953)   38,939    51,589
 Regulatory assessment   10,141    8,850    28,048    25,048
 Correspondent bank charges   19,455    20,154    59,078    59,344
 Data processing   369,857    258,829    1,031,253    716,500
 Printing, postage and supplies   76,661    56,132    214,175     170,044
 Expense on life insurance   14,895    18,731    44,684    56,191
 Contribution expense   15,977    21,748    34,980    33,300
 Expense on REO   9,010    7,082    29,682    15,904
 Other   358,109    363,730    1,087,865    1,033,423
  Total noninterest expense   3,067,178    2,750,328    8,995,525    8,307,297
       
Income before income taxes   1,270,426     1,210,109     4,174,705     3,813,733
       
Income tax expense   161,312    156,331    562,524    507,429
       
Net income $  1,109,114  $  1,053,778  $  3,612,181  $  3,306,304
       


FFW Corporation
Selected Financial Information
Key Balances and Ratios

  Three Months Ended March 31Nine Months Ended March 31
   2020  2019  2020  2019 
  UnauditedUnauditedUnauditedUnaudited
Per common share data:    
Earnings$0.98 $0.92 $3.17 $2.87 
Diluted earnings$0.98 $0.92 $3.17 $2.87 
Dividends paid$0.23 $0.21 $0.69 $0.63 
Average shares issued and outstanding 1,137,906  1,149,685  1,140,049  1,152,694 
Shares outstanding end of period 1,129,394  1,149,783  1,129,394  1,149,783 
      
Supplemental data:    
Net interest margin ** 3.69%  3.59%  3.57%  3.55% 
Return on average assets *** 1.05%  1.08%  1.14%  1.12% 
Return on average common equity *** 9.85%  10.11%  10.36%  10.72% 
      
  March 31June 30  
   2020  2019   
Nonperforming assets *$2,736,180 $3,692,825   
Repossessed assets$151,977 $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