FFW Corporation Announces Earnings for the Quarter and Year to Date Ended March 31, 2012

Marketwired

WABASH, IN--(Marketwire -04/25/12)- FFW Corporation (the "Corporation") (FFWC.OB - News) (4/24/2012 Close: $15.25), parent corporation of Crossroads Bank, announced earnings for the quarter and year to date ended March 31, 2012.

For the three months ended March 31, 2012, the Corporation reported net income of $737,000 or $0.55 per common share compared to $644,000 or $0.47 per common share for the three months ended March 31, 2011. The net interest margin for the three months ended March 31, 2012 was $2,350,000 compared to $2,507,000 for the three months ended March 31, 2011. The provision for loan losses was $300,000 in each of the quarters ended March 31. Total noninterest income was $805,000 for the three months ended March 31, 2012 and $645,000 for the three months ended March 31, 2011. Noninterest expense was $2,118,000 for the three months ended March 31, 2012 and $1,972,000 for the three months ended March 31, 2011. The decline in income tax expense from the quarter ended March 31, 2011 to the quarter ended March 31, 2012 is primarily attributable to the Corporation's investment in a low income housing partnership.

For the nine months ended March 31, 2012, the Corporation reported net income of $2,129,000 or $1.58 per common share compared to $1,937,000 or $1.41 per common share for the nine months ended March 31, 2011. The net interest margin for the nine months ended March 31, 2012 was $7,188,000 compared to $7,275,000 for the nine months ended March 31, 2011. The provision for loan losses decreased from $1,145,000 for the period ended March 31, 2011 to $900,000 for the period ended March 31, 2012. Total noninterest income was $2,502,000 for the nine months ended March 31, 2012 and $2,509,000 for the nine months ended March 31, 2011. Noninterest expense was $6,204,000 for the nine months ended March 31, 2012 and $5,998,000 for the nine months ended March 31, 2011.

The three and nine months ended March 31, 2012 represented a return on average common equity of 10.09% and 9.87%, respectively, compared to 9.93% and 9.63% for the three and nine month periods ended March 31, 2011. The three and nine months ended March 31, 2012 represented a return on average assets of 0.90% and 0.86%, respectively, compared to 0.80% and 0.77% for the three and nine month periods ended March 31, 2011.

The allowance for loan losses as a percentage of gross loans receivable was 1.53% at March 31, 2012 and 1.39% at June 30, 2011. Nonperforming assets were $12,927,000 at March 31, 2012 and $13,141,000 at June 30, 2011.

As of March 31, 2012, FFWC's equity-to-assets ratio was 9.64% compared to 9.23% at June 30, 2011. Total assets at March 31, 2012 were $331,524,000 compared to $323,018,000 at June 30, 2011. Shareholders' equity was $31,963,000 at March 31, 2012 compared to $29,830,000 at June 30, 2011. 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 Bulletin Board under the symbol "FFWC.OB." Our website address is www.crossroadsbanking.com.

 


                              FFW Corporation
                       Selected Financial Information

Consolidated Balance Sheet

                                                   March 31       June 30
                                                 ------------  ------------
                                                     2012          2011
                                                 ------------  ------------
                                                   Unaudited
Assets
Cash and due from financial institutions         $  5,172,282  $  3,711,671
Interest-earning deposits in other financial
 institutions                                      18,422,545     2,840,994
                                                 ------------  ------------
    Cash and cash equivalents                      23,594,827     6,552,665
                                                 ------------  ------------

Securities available for sale                      76,936,173    71,219,096
Loans receivable, net of allowance for loan
 losses of $3,270,478 at March 31, 2012 and
 $3,147,896 at June 30, 2011                      208,952,717   222,348,968
Loans held for sale                                 1,148,210       241,400
Federal Home Loan Bank stock, at cost               2,717,300     2,717,300
Accrued interest receivable                         1,509,917     1,635,370
Premises and equipment, net                         3,631,589     3,695,172
Mortgage servicing rights                             498,232       444,950
Cash surrender value of life insurance              6,868,561     6,655,864
Goodwill                                            1,213,898     1,213,898
Deferred tax asset                                  1,344,522     1,653,133
Other assets                                        3,108,503     4,640,682
                                                 ------------  ------------
    Total assets                                 $331,524,449  $323,018,498
                                                 ------------  ------------

Liabilities and shareholders' equity
Deposits
    Noninterest-bearing deposits                 $ 25,051,302  $ 17,954,304
    Interest-bearing deposits                     258,636,046   257,585,276
                                                 ------------  ------------
      Total deposits                              283,687,348   275,539,580
                                                 ------------  ------------

Borrowings                                         14,258,400    15,986,695
Accrued expenses and other liabilities              1,616,105     1,662,503
                                                 ------------  ------------
    Total liabilities                             299,561,853   293,188,778
                                                 ------------  ------------

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
     March 31, 2012, $7,335,000 liquidation
     preference                                     7,146,578     7,085,539
    Series B, 9% Fixed Rate Cumulative Perpetual
     Preferred Stock - 364 shares outstanding
     March 31, 2012, $368,000 liquidation
     preference                                       379,022       385,461
Common stock, $.01 par; 2,000,000 shares
 authorized; issued shares: 1,836,328
 outstanding shares: 1,122,084 and 1,121,884,
 respectively                                          18,363        18,363
Additional paid-in capital                          9,480,588     9,435,162
Retained earnings                                  25,625,004    24,095,722
Accumulated other comprehensive income                276,665      (223,833)
Treasury stock, at cost: 714,244 shares and
 714,444 shares, respectively                     (10,963,624)  (10,966,694)
                                                 ------------  ------------
    Total shareholders' equity                     31,962,596    29,829,720
                                                 ------------  ------------

                                                 ------------  ------------
    Total liabilities and shareholders' equity   $331,524,449  $323,018,498
                                                 ------------  ------------



                               FFW Corporation
                       Selected Financial Information

Consolidated Statement of Income

                          Three Months Ended March  Nine Months Ended March
                                     31                        31
                         ------------------------- -------------------------
                             2012         2011         2012         2011
                         -----------  ------------ -----------  ------------
                          Unaudited     Unaudited   Unaudited     Unaudited
Interest and dividend
 income:
  Loans, including fees  $ 2,775,302  $  2,980,148 $ 8,623,827  $  9,160,471
  Taxable securities         512,215       599,583   1,553,621     1,848,872
  Tax exempt securities      133,334       147,116     395,692       457,602
  Other                        9,481         4,906      19,230        27,003
                         -----------  ------------ -----------  ------------
    Total interest and
     dividend income       3,430,332     3,731,753  10,592,370    11,493,948
                         -----------  ------------ -----------  ------------

Interest expense:
  Deposits                   950,241     1,092,088   3,005,159     3,569,009
  Borrowings                 130,338       132,830     399,474       649,527
                         -----------  ------------ -----------  ------------
    Total interest
     expense               1,080,579     1,224,918   3,404,633     4,218,536
                         -----------  ------------ -----------  ------------

Net interest income        2,349,753     2,506,835   7,187,737     7,275,412

Provision for loan
 losses                      300,000       300,000     900,000     1,145,000

Net interest income
 after provision for
 loan losses               2,049,753     2,206,835   6,287,737     6,130,412

Noninterest income:
  Net gains on sales of
   securities                    148             -     308,148       257,739
  Net gains on sales of
   loans                     283,019       134,942     576,930       454,177
  Net gains (losses) on
   fixed assets                    -         5,001           -         5,001
  Other than temporary
   impairment on
   securities                 (2,573)            -     (90,573)            -
  Commission income          219,716       151,743     543,975       481,426
  Service charges and
   fees                      273,109       261,941     805,106     1,042,362
  Earnings on life
   insurance                  69,797        69,531     212,697       210,626
  Other                      (38,424)       21,830     145,254        57,435
                         -----------  ------------ -----------  ------------
    Total noninterest
     income                  804,792       644,988   2,501,537     2,508,766
                         -----------  ------------ -----------  ------------

Noninterest expense:
  Salaries and benefits    1,079,490       965,227   3,168,549     2,980,819
  Occupancy and
   equipment                 249,580       249,805     745,998       742,646
  Professional                85,649        94,091     272,910       291,662
  Marketing                   44,654        33,037     137,977       115,957
  Deposit insurance
   premium                   113,905       140,036     316,822       378,823
  Regulatory assessment       34,747        25,899     103,237        76,782
  Correspondent bank
   charges                    19,623        20,370      55,237        60,805
  Data processing            127,863       103,529     371,287       323,927
  Printing, postage and
   supplies                   63,956        61,531     174,794       168,736
  Expense on life
   insurance                  16,108        14,902      48,325        26,116
  Contribution expense        14,325        17,636      50,295        55,017
  Other                      267,700       246,208     758,567       776,724
                         -----------  ------------ -----------  ------------
    Total noninterest
     expense               2,117,600     1,972,271   6,203,998     5,998,014
                         -----------  ------------ -----------  ------------

Income before income
 taxes                       736,945       879,552   2,585,276     2,641,164

Income tax expense                10       235,814     456,676       704,115

                         -----------  ------------ -----------  ------------
Net income               $   736,935  $    643,738 $ 2,128,600  $  1,937,049
                         ===========  ============ ===========  ============
Preferred stock
 dividends and discount
 accretion, net              117,504       117,504     352,512       352,512
                         -----------  ------------ -----------  ------------
Net income attributable
 to common shareholders  $   619,431  $    526,234 $ 1,776,088  $  1,584,537
                         ===========  ============ ===========  ============



                               FFW Corporation
                       Selected Financial Information

Key Balances and Ratios

                           Three Months Ended March     Nine Months Ended
                                      31                    March 31
                           ------------------------  ----------------------
                               2012         2011        2012        2011
                           -----------  -----------  ----------  ----------
                            Unaudited    Unaudited    Unaudited   Unaudited
Per common share data:
Earnings                   $      0.55  $      0.47  $     1.58  $     1.41
Diluted earnings           $      0.55  $      0.47  $     1.58  $     1.41
Dividends paid             $      0.11  $      0.22  $     0.22  $     0.66
Average shares issued and
 outstanding                 1,121,928    1,121,884   1,121,899   1,122,963
Shares outstanding end of
 period                      1,122,084    1,121,884   1,122,084   1,121,884

Supplemental data:
Net interest margin **            3.06%        3.33%       3.10%       3.08%
Return on average assets
 ***                              0.90%        0.80%       0.86%       0.77%
Return on average common
 equity ***                      10.09%        9.93%       9.87%       9.63%

                             March 31     June 30
                           -----------  -----------
                               2012         2011
                           -----------  -----------
Nonperforming assets *     $12,927,496  $13,140,830
Repossessed assets         $ 1,471,133  $ 2,502,944

*   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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