FFW Corporation Announces Earnings for the Quarter Ended September 30, 2012

Marketwired

WABASH, IN--(Marketwire - Oct 23, 2012) - FFW Corporation (the "Corporation") (OTCBB: FFWC) (10/22/2012 Close: $15.00), parent corporation of Crossroads Bank, announced earnings for the quarter ended September 30, 2012. 

For the three months ended September 30, 2012, the Corporation reported net income of $530,000 or $0.37 per common share compared to $684,000 or $0.50 per common share for the three months ended September 30, 2011. The net interest margin for the three months ended September 30, 2012 was $2,365,000 compared to $2,384,000 for the three months ended September 30, 2011. The provision for loan losses decreased from $300,000 for the period ended September 30, 2011 to $210,000 for the period ended September 30, 2012. Total noninterest income was $648,000 for the three months ended September 30, 2012 compared to $872,000 for the three months ended September 30, 2011. Noninterest expense was $2,122,000 for the three months ended September 30, 2012 and $2,061,000 for the three months ended September 30, 2011. 

The three months ended September 30, 2012 represented a return on average common equity of 6.85% compared to 9.77% for the three month period ended September 30, 2011. The three months ended September 30, 2012 represented a return on average assets of 0.64% compared to 0.83% for the three month period ended September 30, 2011.

The allowance for loan losses as a percentage of gross loans receivable was 1.64% at September 30, 2012 compared to 1.68% at June 30, 2012. Nonperforming assets were $9,907,000 at September 30, 2012 compared to $10,234,000 at June 30, 2012.

As of September 30, 2012, FFWC's equity-to-assets ratio was 9.47% compared to 9.34% at June 30, 2012. Total assets at September 30, 2012 were $330,286,000 compared to $329,042,000 at June 30, 2012. Shareholders' equity was $31,284,000 at September 30, 2012 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
 
    September 30     June 30  
    2012     2012  
    Unaudited        
Assets                
Cash and due from financial institutions   $ 4,760,910     $ 3,478,709  
Interest-earning deposits in other financial institutions     3,521,941       13,360,765  
  Cash and cash equivalents     8,282,851       16,839,474  
                 
Securities available for sale     83,966,869       83,665,458  
Loans receivable, net of allowance for loan losses of $3,615,683 at                
  September 30, 2012 and $3,520,110 at June 30, 2012     215,351,293       205,934,060  
Loans held for sale     920,750       337,000  
Federal Home Loan Bank stock, at cost     2,717,300       2,717,300  
Accrued interest receivable     1,899,671       1,647,845  
Premises and equipment, net     3,486,916       3,550,515  
Mortgage servicing rights     412,452       486,617  
Cash surrender value of life insurance     7,005,340       6,938,977  
Goodwill     1,213,898       1,213,898  
Deferred tax asset     2,356,765       2,558,162  
Other assets     2,671,660       3,152,807  
  Total assets   $ 330,285,765     $ 329,042,113  
                 
Liabilities and shareholders' equity                
Deposits                
  Noninterest-bearing deposits   $ 23,796,008     $ 20,029,966  
  Interest-bearing deposits     258,905,281       262,519,228  
    Total deposits     282,701,289       282,549,194  
                 
Borrowings     14,758,400       14,258,400  
Accrued expenses and other liabilities     1,542,064       1,488,058  
  Total liabilities     299,001,753       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 September 30, 2012, $7,336,000 liquidation preference     7,187,270       7,166,924  
  Series B, 9% Fixed Rate Cumulative Perpetual Preferred Stock - 364 shares outstanding September 30, 2012, $368,000 liquidation preference     374,730       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     9,506,474       9,495,807  
Retained earnings     24,261,004       23,848,467  
Accumulated other comprehensive income     899,795       803,648  
Treasury stock, at cost: 714,244 shares     (10,963,624 )     (10,963,624 )
  Total shareholders' equity     31,284,012       30,746,461  
                 
  Total liabilities and shareholders' equity   $ 330,285,765     $ 329,042,113  
                   
                   
                   
FFW Corporation
Selected Financial Information
 
Consolidated Statement of Income
 
    Three Months Ended September 30
    2012     2011
    Unaudited     Unaudited
Interest and dividend income:              
  Loans, including fees   $ 2,712,413     $ 2,912,686
  Taxable securities     558,432       528,581
  Tax exempt securities     132,327       132,809
  Other     4,127       2,446
    Total interest and dividend income     3,407,299       3,576,522
               
Interest expense:              
  Deposits     914,777       1,056,666
  Borrowings     127,033       135,926
    Total interest expense     1,041,810       1,192,592
               
Net interest income     2,365,489       2,383,930
               
Provision for loan losses     210,000       300,000
               
Net interest income after provision for loan losses     2,155,489       2,083,930
               
Noninterest income:              
  Net gains on sales of securities     (7,277 )     163,588
  Net gains on sales of loans     177,002       94,423
  Other than temporary impairment on securities     (658 )     -
  Commission income     197,675       155,449
  Service charges and fees     189,663       254,671
  Earnings on life insurance     66,362       72,048
  Other     25,604       132,082
    Total noninterest income     648,371       872,261
               
Noninterest expense:              
  Salaries and benefits     1,068,203       1,050,869
  Occupancy and equipment     256,300       248,135
  Professional     86,333       86,118
  Marketing     32,003       43,361
  Deposit insurance premium     115,805       111,255
  Regulatory assessment     36,486       35,211
  Correspondent bank charges     24,129       15,241
  Data processing     138,096       123,312
  Printing, postage and supplies     58,641       57,248
  Expense on life insurance     17,418       16,108
  Contribution expense     13,017       16,465
  Other     275,791       257,492
    Total noninterest expense     2,122,222       2,060,815
               
Income before income taxes     681,638       895,376
               
Income tax expense     151,600       211,795
               
Net income   $ 530,038     $ 683,581
Preferred stock dividends and discount accretion, net     117,504       117,504
Net income attributable to common shareholders   $ 412,534     $ 566,077
               
               
               
FFW Corporation
Selected Financial Information
 
Key Balances and Ratios
 
    Three Months Ended September 30  
    2012     2011  
    Unaudited     Unaudited  
Per common share data:                
Earnings   $ 0.37     $ 0.50  
Diluted earnings   $ 0.37     $ 0.50  
Dividends paid   $ 0.00     $ 0.00  
Average shares issued and outstanding     1,122,084       1,121,884  
Shares outstanding end of period     1,122,084       1,121,884  
                 
Supplemental data:                
Net interest margin **     3.04 %     3.09 %
Return on average assets ***     0.64 %     0.83 %
Return on average common equity ***     6.85 %     9.77 %
                 
    September 30     June 30  
    2012     2012  
Nonperforming assets *   $ 9,907,494     $ 10,233,539  
Repossessed assets   $ 1,171,756     $ 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
View Comments (0)