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

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 31			June 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 31					Six Months Ended December 31
	2019			2018		2019			2018
	Unaudited			Unaudited		Unaudited			Unaudited
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 31						Six Months Ended December 31
		2019			2018			2019			2018
		Unaudited			Unaudited			Unaudited			Unaudited
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 31			June 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

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