FFW Corporation Announces Earnings for the Fiscal Year Ended June 30, 2013

Marketwired

WABASH, IN--(Marketwired - Aug 16, 2013) -  FFW Corporation (the "Corporation") (OTCBB: FFWC) (8/15/2013 Close: $16.95), parent corporation of Crossroads Bank, announced earnings for the three and twelve months ended June 30, 2013. 

For the three months ended June 30, 2013, the Corporation reported net income of $698,000 or $0.52 per common share compared to net loss of ($1,536,000) or ($1.47) per common share for the three months ended June 30, 2012. The net interest margin for the three months ended June 30, 2013 was $2,432,000 compared to $2,177,000 for the three months ended June 30, 2012. The provision for loan losses decreased from $3,900,000 for the period ended June 30, 2012 to $210,000 for the period ended June 30, 2013. Total noninterest income was $818,000 for the three months ended June 30, 2013 compared to $838,000 for the three months ended June 30, 2012. Noninterest expense was $2,187,000 for the three months ended June 30, 2013 and $2,048,000 for the three months ended June 30, 2012. 

For the twelve months ended June 30, 2013, the Corporation reported net income of $2,729,000 or $2.01 per common share compared to $593,000 or $0.11 per common share for the twelve months ended June 30, 2012. The net interest margin for the twelve months ended June 30, 2013 was $9,413,000 compared to $9,365,000 for the twelve months ended June 30, 2012. The provision for loan losses decreased from $4,800,000 for the period ended June 30, 2012 to $840,000 for the period ended June 30, 2013. Total noninterest income was $3,284,000 for the twelve months ended June 30, 2013 compared to $3,339,000 for the twelve months ended June 30, 2012. Noninterest expense was $8,617,000 for the twelve months ended June 30, 2013 and $8,252,000 for the twelve months ended June 30, 2012.

The three and twelve months ended June 30, 2013 represented a return on average common equity of 9.17% and 9.14%, respectively, compared to -26.25% and 0.51% for the three and twelve month periods ended June 30, 2012. The three and twelve months ended June 30, 2013 represented a return on average assets of 0.82% and 0.81%, respectively, compared to -1.82% and 0.18% for the three and twelve month periods ended June 30, 2012.

The allowance for loan losses as a percentage of gross loans receivable was 1.43% at June 30, 2013 compared to 1.68% at June 30, 2012. Nonperforming assets were $9,794,000 at June 30, 2013 compared to $10,234,000 at June 30, 2012.

As of June 30, 2013, FFWC's equity-to-assets ratio was 9.27% compared to 9.34% at June 30, 2012. Total assets at June 30, 2013 were $337,818,000 compared to $329,042,000 at June 30, 2012. Shareholders' equity was $31,322,000 at June 30, 2013 compared to $30,746,000 at June 30, 2012. Crossroads Bank exceeds all applicable regulatory requirements to be considered "well capitalized." 

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 four Indiana banking centers located in Columbia City, North Manchester, South Whitley, and Syracuse. The Bank provides leasing services at its banking centers and its Carmel, 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  
    2013     2012  
    Unaudited        
Assets                
Cash and due from financial institutions   $ 4,353,619     $ 3,478,709  
Interest-earning deposits in other financial institutions     11,647,346       13,360,765  
  Cash and cash equivalents     16,000,965       16,839,474  
                 
Securities available for sale     85,122,447       83,665,458  
Loans receivable, net of allowance for loan losses of $3,132,000 at June 30, 2013 and $3,520,000 at June 30, 2012     215,347,079       205,934,060  
Loans held for sale     113,600       337,000  
Federal Home Loan Bank stock, at cost     2,717,300       2,717,300  
Accrued interest receivable     1,719,787       1,647,845  
Premises and equipment, net     3,348,926       3,550,515  
Mortgage servicing rights     629,050       486,617  
Cash surrender value of life insurance     7,206,897       6,938,977  
Goodwill     1,213,898       1,213,898  
Deferred tax asset     2,392,638       2,558,162  
Other assets     2,005,096       3,152,807  
  Total assets   $ 337,817,683     $ 329,042,113  
                 
Liabilities and shareholders' equity                
Deposits                
  Noninterest-bearing deposits   $ 27,397,357     $ 20,029,966  
  Interest-bearing deposits     272,581,131       262,519,228  
    Total deposits     299,978,488       282,549,194  
                 
Borrowings     4,758,400       14,258,400  
Accrued expenses and other liabilities     1,758,769       1,488,058  
  Total liabilities     306,495,657       298,295,652  
                 
Shareholders' equity                
Preferred stock, $.01 par; $1,000 liquidation value per share; 500,000 shares authorized;                
  Series A, 5% Fixed Rate Cumulative Perpetual Preferred Stock - 7,289 shares outstanding June 30, 2013, $7,336,000 liquidation preference     7,248,308       7,166,924  
  Series B, 9% Fixed Rate Cumulative Perpetual Preferred Stock - 364 shares outstanding June 30, 2013, $368,000 liquidation preference     368,292       376,876  
Common stock, $.01 par; 2,000,000 shares authorized;                
  issued shares: 1,836,328                
  outstanding shares: 1,122,084     18,363       18,363  
Additional paid-in capital     9,531,646       9,495,807  
Retained earnings     25,737,557       23,848,467  
Accumulated other comprehensive income     (618,516 )     803,648  
Treasury stock, at cost: 714,244 shares     (10,963,624 )     (10,963,624 )
  Total shareholders' equity     31,322,026       30,746,461  
                 
  Total liabilities and shareholders' equity   $ 337,817,683     $ 329,042,113  
   
   
   
FFW Corporation  
Selected Financial Information  
   
Consolidated Statement of Income  
             
    Three Months Ended June 30     Twelve Months Ended June 30  
    2013     2012     2013     2012  
    Unaudited     Unaudited     Unaudited        
Interest and dividend income:                                
  Loans, including fees   $ 2,604,953     $ 2,567,679     $ 10,513,322     $ 11,191,505  
  Taxable securities     359,961       513,721       1,639,864       2,067,341  
  Tax exempt securities     279,881       159,656       979,359       555,348  
  Other     16,826       13,556       34,931       32,786  
    Total interest and dividend income     3,261,621       3,254,612       13,167,476       13,846,980  
                                 
Interest expense:                                
  Deposits     779,344       946,701       3,413,966       3,951,857  
  Borrowings     50,090       130,421       340,708       529,894  
    Total interest expense     829,434       1,077,122       3,754,674       4,481,751  
                                 
Net interest income     2,432,187       2,177,490       9,412,802       9,365,229  
                                 
Provision for loan losses     210,000       3,900,000       840,000       4,800,000  
                                 
Net interest income after provision for loan losses     2,222,187       (1,722,510 )     8,572,802       4,565,229  
                                 
Noninterest income:                                
  Net gains on sales of securities     70,102       155,078       316,343       463,225  
  Net gains on sales of loans     169,403       159,576       881,112       736,506  
  Net gains (losses) on fixed assets     -       -       -       -  
  Other than temporary impairment on securities     (21,685 )     (3,253 )     (104,526 )     (93,826 )
  Commission income     212,637       199,141       785,003       743,116  
  Service charges and fees     271,314       237,798       1,023,462       1,042,903  
  Earnings on life insurance     67,233       70,416       267,920       283,113  
  Other     49,356       18,785       114,281       164,041  
    Total noninterest income     818,360       837,541       3,283,595       3,339,078  
                                 
Noninterest expense:                                
  Salaries and benefits     1,062,417       993,848       4,260,263       4,162,397  
  Occupancy and equipment     251,497       322,254       1,007,006       1,068,252  
  Professional     156,999       91,930       502,541       364,840  
  Marketing     41,694       45,790       168,713       183,767  
  Deposit insurance premium     71,138       112,446       415,133       429,268  
  Regulatory assessment     38,415       35,752       150,475       138,989  
  Correspondent bank charges     24,325       25,318       95,974       80,555  
  Data processing     152,632       131,706       567,738       502,993  
  Printing, postage and supplies     49,487       43,890       234,039       218,684  
  Expense on life insurance     17,418       16,108       69,673       64,433  
  Contribution expense     7,745       14,879       40,550       65,173  
  Other     312,902       214,212       1,105,205       972,780  
    Total noninterest expense     2,186,669       2,048,133       8,617,310       8,252,131  
                                 
Income before income taxes     853,878       (2,933,102 )     3,239,087       (347,824 )
                                 
Income tax expense     155,565       (1,397,499 )     509,702       (940,823 )
                                 
Net income   $ 698,313     $ (1,535,603 )   $ 2,729,385     $ 592,999  
Preferred stock dividends and discount accretion, net     117,504       117,504       470,016       470,016  
Net income attributable to common shareholders   $ 580,809     $ (1,653,107 )   $ 2,259,369     $ 122,983  
   
   
   
FFW Corporation  
Selected Financial Information  
   
Key Balances and Ratios  
               
      Three Months Ended June 30     Twelve Months Ended June 30  
      2013     2012     2013     2012  
      Unaudited     Unaudited     Unaudited        
Per common share data:                                
Earnings   $ 0.52     $ (1.47 )   $ 2.01     $ 0.11  
Diluted earnings   $ 0.52     $ (1.47 )   $ 2.01     $ 0.11  
Dividends paid   $ 0.11     $ 0.11     $ 0.33     $ 0.33  
Average shares issued and outstanding     1,122,084       1,122,084       1,122,084       1,121,945  
Shares outstanding end of period     1,122,084       1,122,084       1,122,084       1,122,084  
                                   
Supplemental data:                                
Net interest margin **     3.00 %     2.92 %     2.99 %     3.01 %
Return on average assets ***     0.82 %     -1.82 %     0.81 %     0.18 %
Return on average common equity ***     9.17 %     -26.25 %     9.14 %     0.51 %
                                   
      June 30     June 30                  
      2013     2012                  
Nonperforming assets *   $ 9,794,035     $ 10,233,539                  
Repossessed assets   $ 813,386     $ 1,402,764                  
                                   
* 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                
   
Contact:
For More Information
Emily Boardman
Treasurer
260-563-3185
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