FFW Corporation Announces Earnings for the Three and Six Months Ended December 31, 2012

Marketwired

WABASH, IN--(Marketwire - Jan 23, 2013) -  FFW Corporation (the "Corporation") (OTCBB: FFWC) (1/22/2013 Close: $14.00), parent corporation of Crossroads Bank, announced earnings for the three and six months ended December 31, 2012. 

For the three months ended December 31, 2012, the Corporation reported net income of $858,000 or $0.66 per common share compared to $708,000 or $0.53 per common share for the three months ended December 31, 2011. The net interest margin for the three months ended December 31, 2012 was $2,321,000 compared to $2,454,000 for the three months ended December 31, 2011. The provision for loan losses decreased from $300,000 for the period ended December 31, 2011 to $210,000 for the period ended December 31, 2012. Total noninterest income was $1,035,000 for the three months ended December 31, 2012 compared to $824,000 for the three months ended December 31, 2011. Noninterest expense was $2,145,000 for the three months ended December 31, 2012 and $2,026,000 for the three months ended December 31, 2011. 

For the six months ended December 31, 2012, the Corporation reported net income of $1,388,000 or $1.03 per common share compared to $1,392,000 or $1.03 per common share for the six months ended December 31, 2011. The net interest margin for the six months ended December 31, 2012 was $4,687,000 compared to $4,838,000 for the six months ended December 31, 2011. The provision for loan losses decreased from $600,000 for the period ended December 31, 2011 to $420,000 for the period ended December 31, 2012. Total noninterest income was $1,683,000 for the six months ended December 31, 2012 compared to $1,697,000 for the six months ended December 31, 2011. Noninterest expense was $4,267,000 for the six months ended December 31, 2012 and $4,086,000 for the six months ended December 31, 2011.

The three and six months ended December 31, 2012 represented a return on average common equity of 11.95% and 9.43%, respectively, compared to 9.75% and 9.76% for the three and six month periods ended December 31, 2011. The three and six months ended December 31, 2012 represented a return on average assets of 1.01% and 0.83%, respectively, compared to 0.85% and 0.84% for the three and six month periods ended December 31, 2011.

The allowance for loan losses as a percentage of gross loans receivable was 1.73% at December 31, 2012 compared to 1.68% at June 30, 2012. Nonperforming assets were $8,828,000 at December 31, 2012 compared to $10,234,000 at June 30, 2012.

As of December 31, 2012, FFWC's equity-to-assets ratio was 9.73% compared to 9.34% at June 30, 2012. Total assets at December 31, 2012 were $330,711,000 compared to $329,042,000 at June 30, 2012. Shareholders' equity was $32,163,000 at December 31, 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
      December 31     June 30  
      2012     2012  
      Unaudited        
Assets                
Cash and due from financial institutions   $ 5,356,619     $ 3,478,709  
Interest-earning deposits in other financial institutions     16,046,990       13,360,765  
  Cash and cash equivalents     21,403,609       16,839,474  
                 
Securities available for sale     75,082,060       83,665,458  
Loans receivable, net of allowance for loan losses of $3,763,643 at                
  December 31, 2012 and $3,520,110 at June 30, 2012     212,052,397       205,934,060  
Loans held for sale     1,617,584       337,000  
Federal Home Loan Bank stock, at cost     2,717,300       2,717,300  
Accrued interest receivable     1,671,173       1,647,845  
Premises and equipment, net     3,419,219       3,550,515  
Mortgage servicing rights     535,881       486,617  
Cash surrender value of life insurance     7,073,036       6,938,977  
Goodwill     1,213,898       1,213,898  
Deferred tax asset     1,597,654       2,558,162  
Other assets     2,326,844       3,152,807  
  Total assets   $ 330,710,655     $ 329,042,113  
                   
Liabilities and shareholders' equity                
Deposits                
  Noninterest-bearing deposits   $ 26,680,542     $ 20,029,966  
  Interest-bearing deposits     260,622,151       262,519,228  
    Total deposits     287,302,693       282,549,194  
                   
Borrowings     9,758,400       14,258,400  
Accrued expenses and other liabilities     1,486,819       1,488,058  
  Total liabilities     298,547,912       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 December 31, 2012, $7,336,000 liquidation preference     7,207,616       7,166,924  
  Series B, 9% Fixed Rate Cumulative Perpetual Preferred Stock - 364 shares outstanding December 31, 2012, $368,000 liquidation preference     372,584       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     9,514,864       9,495,807  
Retained earnings     24,877,649       23,848,467  
Accumulated other comprehensive income     1,135,291       803,648  
Treasury stock, at cost: 714,244 shares     (10,963,624 )     (10,963,624 )
  Total shareholders' equity     32,162,743       30,746,461  
                   
  Total liabilities and shareholders' equity   $ 330,710,655     $ 329,042,113  
 
 
 
FFW Corporation
Selected Financial Information
 
Consolidated Statement of Income
        Three Months Ended December 31     Six Months Ended December 31  
        2012     2011     2012     2011  
        Unaudited     Unaudited     Unaudited     Unaudited  
Interest and dividend income:                                
  Loans, including fees   $ 2,673,449     $ 2,935,840     $ 5,385,865     $ 5,848,527  
  Taxable securities     341,728       509,567       900,158       702,679  
  Tax exempt securities     312,418       132,809       444,745       601,087  
  Other     4,541       7,304       8,668       9,749  
    Total interest and dividend income     3,332,136       3,585,520       6,739,436       7,162,042  
                                     
Interest expense:                                
  Deposits     903,745       998,253       1,818,524       2,054,917  
  Borrowings     107,222       133,210       234,255       269,136  
    Total interest expense     1,010,967       1,131,463       2,052,779       2,324,053  
                                     
Net interest income     2,321,169       2,454,057       4,686,657       4,837,989  
                                     
Provision for loan losses     210,000       300,000       420,000       600,000  
                                     
Net interest income after provision for loan losses     2,111,169       2,154,057       4,266,657       4,237,989  
                                     
Noninterest income:                                
  Net gains on sales of securities     186,767       144,412       179,490       308,000  
  Net gains on sales of loans     331,233       199,488       508,235       293,911  
  Net gains (losses) on fixed assets     -       -       -       -  
  Other than temporary impairment on securities     (79,983 )     (88,000 )     (80,641 )     (88,000 )
  Commission income     196,788       168,810       394,463       324,259  
  Service charges and fees     334,506       277,325       524,170       531,996  
  Earnings on life insurance     67,696       70,853       134,059       142,900  
  Other     (2,172 )     51,597       23,433       183,679  
    Total noninterest income     1,034,835       824,485       1,683,209       1,696,745  
                                     
Noninterest expense:                                
  Salaries and benefits     1,070,252       1,038,190       2,138,455       2,089,059  
  Occupancy and equipment     243,604       248,284       499,905       496,418  
  Professional     136,276       101,143       222,610       187,261  
  Marketing     58,815       49,962       90,817       93,323  
  Deposit insurance premium     112,375       91,662       228,180       202,916  
  Regulatory assessment     37,955       33,279       74,441       68,490  
  Correspondent bank charges     23,680       20,373       47,809       35,614  
  Data processing     136,851       120,112       274,947       243,424  
  Printing, postage and supplies     66,437       53,590       125,079       110,837  
  Expense on life insurance     17,418       16,108       34,837       32,216  
  Contribution expense     10,681       19,505       23,698       35,969  
  Other     230,340       233,373       506,132       490,870  
    Total noninterest expense     2,144,684       2,025,581       4,266,910       4,086,397  
                                     
Income before income taxes     1,001,320       952,961       1,682,956       1,848,337  
                                     
Income tax expense     143,742       244,871       295,342       456,666  
                                     
Net income   $ 857,578     $ 708,090     $ 1,387,614     $ 1,391,671  
Preferred stock dividends and discount accretion, net     117,504       117,504       235,008       235,008  
Net income attributable to common shareholders   $ 740,074     $ 590,586     $ 1,152,606     $ 1,156,663  
 
 
 
FFW Corporation
Selected Financial Information
 
Key Balances and Ratios
      Three Months Ended
December 31
    Six Months Ended
December 31
 
      2012     2011     2012     2011  
      Unaudited     Unaudited     Unaudited     Unaudited  
Per common share data:                                
Earnings   $ 0.66     $ 0.53     $ 1.03     $ 1.03  
Diluted earnings   $ 0.66     $ 0.53     $ 1.03     $ 1.03  
Dividends paid   $ 0.11     $ 0.11     $ 0.11     $ 0.11  
Average shares issued and outstanding     1,122,084       1,121,884       1,122,084       1,121,884  
Shares outstanding end of period     1,122,084       1,121,884       1,122,084       1,121,884  
                                   
Supplemental data:                                
Net interest margin **     2.92 %     3.15 %     2.98 %     3.12 %
Return on average assets ***     1.01 %     0.85 %     0.83 %     0.84 %
Return on average common equity ***     11.95 %     9.75 %     9.43 %     9.76 %
                                   
      December 31     June 30                  
      2012     2012                  
Nonperforming assets *   $ 8,828,222     $ 10,233,539                  
Repossessed assets   $ 847,868     $ 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 Contact:
Emily Boardman
Treasurer
260-563-3185

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