FFW Corporation Announces Earnings for the Fiscal Year Ended June 30, 2018

WABASH, Ind., Aug. 08, 2018 (GLOBE NEWSWIRE) -- FFW Corporation (the "Corporation") (OTC:FFWC) (8/7/18 Close: $42.75), parent corporation of Crossroads Bank (the "Bank"), announced earnings for the three and twelve months ended June 30, 2018.

For the three months ended June 30, 2018, the Corporation reported net income of $1,136,000 or $0.97 per common share compared to $1,018,000 or $0.88 per common share for the three months ended June 30, 2017.  Net interest income for the three months ended June 30, 2018 was $3,383,000 compared to $3,011,000 for the three months ended June 30, 2017.  The Company recognized a negative provision for loan losses of ($62,000) for the three months ended June 30, 2018 due to a significant recovery of a previously charged-off commercial loan.  This is compared to a provision for loan losses of $50,000 for the three months ended June 30, 2017. Total noninterest income was $784,000 for the three months ended June 30, 2018 compared to $707,000 for the three months ended June 30, 2017.  Noninterest expense was $2,850,000 for the three months ended June 30, 2018 and $2,412,000 for the three months ended June 30, 2017.   

For the twelve months ended June 30, 2018, the Corporation reported net income of $4,805,000 or $4.12 per common share compared to $4,019,000 or $3.39 per common share for the twelve months ended June 30, 2017.  Net interest income for the twelve months ended June 30, 2018 was $13,193,000 compared to $11,699,000 for the twelve months ended June 30, 2017.  The Company recognized a negative provision for loan losses of ($205,000) for the twelve months ended June 30, 2018 due to significant recoveries recorded in the first and fourth quarters of the fiscal year relating to a previously charged-off commercial loan.  This is compared to a provision for loan losses of $343,000 for the twelve months ended June 30, 2017.  Total noninterest income was $3,262,000 for the twelve months ended June 30, 2018 compared to $4,170,000 for the twelve months ended June 30, 2017.  Noninterest expense was $10,671,000 for the twelve months ended June 30, 2018 and $10,452,000 for the twelve months ended June 30, 2017.

The three and twelve months ended June 30, 2018 represented a return on average common equity of 11.33% and 12.13%, respectively, compared to 10.92% and 10.82% for the three and twelve month periods ended June 30, 2017.  The three and twelve months ended June 30, 2018 represented a return on average assets of 1.20% and 1.28%, respectively, compared to 1.11% and 1.13%, for the three and twelve month periods ended June 30, 2017.

The allowance for loan losses as a percentage of gross loans receivable was 1.40% at June 30, 2018 compared to 1.43% at June 30, 2017.  Nonperforming assets were $3,412,000 at June 30, 2018 compared to $4,594,000 at June 30, 2017.

As of June 30, 2018, FFWC's equity-to-assets ratio was 10.54% compared to 10.29% at June 30, 2017.  Total assets at June 30, 2018 were $379,790,000 compared to $366,902,000 at June 30, 2017.  Shareholders' equity was $40,011,000 at June 30, 2018 compared to $37,750,000 at June 30, 2017.  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.

FFW Corporation
Selected Financial Information

Consolidated Balance Sheet

    June 30 June 30
      2018     2017  
    Unaudited  
Assets    
Cash and due from financial institutions $   6,288,268   $   5,101,230  
Interest-bearing deposits in other financial institutions   11,741,584     15,448,903  
  Cash and cash equivalents   18,029,852     20,550,133  
     
Securities available for sale   78,489,583     79,432,914  
Loans receivable, net of allowance for loan losses of $3,716,543 at    
  June 30, 2018 and $3,311,767 at June 30, 2017   260,714,092     244,921,657  
Loans held for sale      938,686       847,000  
Federal Home Loan Bank stock, at cost   1,462,500     1,462,500  
Accrued interest receivable   1,962,831     1,785,609  
Premises and equipment, net   5,825,455     5,635,850  
Mortgage servicing rights   823,965     814,426  
Cash surrender value of life insurance   8,585,667     8,306,618  
Goodwill   1,213,898     1,213,898  
Repossessed Assets   167,000     852,810  
Other assets   1,576,057     1,078,552  
  Total assets $   379,789,586   $   366,901,967  
       
Liabilities and shareholders' equity    
Deposits    
  Noninterest-bearing $   30,689,658   $   29,173,951  
  Interest-bearing   304,215,798     293,300,914  
    Total deposits   334,905,456     322,474,865  
       
Borrowings   2,000,000     4,338,400  
Accrued expenses and other liabilities   2,872,683     2,338,360  
  Total liabilities   339,778,139     329,151,625  
       
Shareholders' equity    
Common stock, $.01 par; 2,000,000 shares authorized;    
  Issued: 1,836,328; outstanding: 1,165,980 - June 30, 2018 and 1,160,084 - June 30, 2017   18,363     18,363  
Additional paid-in capital   9,624,150     9,552,881  
Retained earnings   40,313,968     37,174,079  
Accumulated other comprehensive income   344,886     1,385,443  
Treasury stock, at cost: 670,348 shares at June 30, 2018 and 676,244 shares at June 30, 2017   (10,289,920 )   (10,380,424 )
  Total shareholders' equity   40,011,447     37,750,342  
       
  Total liabilities and shareholders' equity $   379,789,586   $   366,901,967  
               

FFW Corporation
Selected Financial Information

Consolidated Statement of Income

      Three Months Ended June 30 Twelve Months Ended June 30
        2018     2017   2018     2017  
      Unaudited   Unaudited  
Interest and dividend income:        
  Loans, including fees $   3,296,696   $   2,794,553 $   12,525,187   $   10,918,929  
  Taxable securities     321,186       303,198     1,206,208       1,228,676  
  Tax exempt securities     313,952       309,588     1,288,479       1,128,010  
  Other     43,049       51,942     201,595       114,094  
    Total interest and dividend income     3,974,883       3,459,281      15,221,469       13,389,709  
             
Interest expense:        
  Deposits     581,303       430,970     1,967,240       1,588,813  
  Borrowings     10,332       17,685     60,982       102,386  
    Total interest expense     591,635       448,655     2,028,222       1,691,199  
             
Net interest income     3,383,248       3,010,626     13,193,247       11,698,510  
             
Provision for loan losses     (62,000 )     50,000     (205,000 )     343,000  
             
Net interest income after provision for        
  loan losses     3,445,248       2,960,626     13,398,247       11,355,510  
             
Noninterest income:        
  Net gains on sales of securities     -         -      -        120,409  
  Net gains on sales of loans     94,090       117,492     366,008       510,689  
  Net gains (losses) on fixed assets     -        -      -        (1,712 )
  Commission income     257,754       235,918     966,837        980,159  
  Service charges and fees     184,139       208,044     840,459       930,841  
  Earnings on life insurance     69,328       71,290      279,049       283,627  
  Income from REO     -        -      -        647,115  
  Other     178,581       74,220     809,257       699,186  
    Total noninterest income     783,892       706,964     3,261,610       4,170,314  
             
Noninterest expense:        
  Salaries and benefits     1,601,975       1,342,811     5,938,701       5,372,922  
  Occupancy and equipment     330,443       307,065     1,284,475       1,199,160  
  Professional      142,004       104,175     448,879       504,996  
  Marketing     84,907       90,770     378,486       367,644  
  Deposit insurance premium     29,787       31,531     129,337       129,795  
  Regulatory assessment     5,657       7,167     23,134       29,381  
  Correspondent bank charges     19,414       17,038     70,784       64,609  
  Data processing     194,827       136,358     721,627        518,306  
  Printing, postage and supplies     62,921       62,636     260,614       270,380  
  Expense on life insurance     -        23,423     (3,612 )     93,958  
  Contribution expense     5,900       2,900     56,040       29,840  
  Expense on REO     7,803       5,280     86,164       708,895  
  Other     364,059       280,977     1,276,293       1,162,000  
    Total noninterest expense     2,849,697       2,412,131     10,670,922       10,451,886  
             
Income before income taxes     1,379,443       1,255,459     5,988,935       5,073,938  
             
Income tax expense      242,990       237,645     1,184,160       1,054,912  
             
Net income $   1,136,453   $   1,017,814 $   4,804,775   $   4,019,026  
Preferred stock dividends      -        -      -        85,813  
Net income attributable to common shareholders $   1,136,453   $   1,017,814 $   4,804,775   $    3,933,213  
                       

FFW Corporation
Selected Financial Information

Key Balances and Ratios

  Three Months Ended June 30 Twelve Months Ended June 30
    2018     2017     2018     2017  
  Unaudited   Unaudited  
Per common share data:        
Earnings $ 0.97   $ 0.88   $ 4.12   $ 3.39  
Diluted earnings $ 0.97   $ 0.88   $ 4.12   $ 3.39  
Dividends paid $ 0.69   $ 0.19   $ 1.26   $ 0.70  
Average shares issued and outstanding   1,165,980     1,160,084     1,165,980     1,159,733  
Shares outstanding end of period   1,165,980     1,160,084     1,165,980     1,160,084  
         
Supplemental data:        
Net interest margin **   3.82 %   3.52 %   3.76 %   3.55 %
Return on average assets ***   1.20 %   1.11 %   1.28 %   1.13 %
Return on average common equity ***   11.33 %   10.92 %   12.13 %   10.82 %
         
  June 30 June 30    
  2018 2017    
Nonperforming assets * $ 3,412,108   $ 4,594,296      
Repossessed assets $ 167,000   $ 852,810      
                 
* 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  

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