FFW Corporation Announces Earnings for the Three and Nine Months Ended March 31, 2013

Marketwired

WABASH, IN--(Marketwired - Apr 24, 2013) - FFW Corporation (the "Corporation") (OTCBB: FFWC) (4/23/2013 Close: $15.50), parent corporation of Crossroads Bank, announced earnings for the three and nine months ended March 31, 2013. 

For the three months ended March 31, 2013, the Corporation reported net income of $643,000 or $0.47 per common share compared to $737,000 or $0.55 per common share for the three months ended March 31, 2012. The net interest margin for the three months ended March 31, 2013 was $2,294,000 compared to $2,350,000 for the three months ended March 31, 2012. The provision for loan losses decreased from $300,000 for the period ended March 31, 2012 to $210,000 for the period ended March 31, 2013. Total noninterest income was $782,000 for the three months ended March 31, 2013 compared to $805,000 for the three months ended March 31, 2012. Noninterest expense was $2,164,000 for the three months ended March 31, 2013 and $2,118,000 for the three months ended March 31, 2012. 

For the nine months ended March 31, 2013, the Corporation reported net income of $2,031,000 or $1.50 per common share compared to $2,129,000 or $1.58 per common share for the nine months ended March 31, 2012. The net interest margin for the nine months ended March 31, 2013 was $6,981,000 compared to $7,188,000 for the nine months ended March 31, 2012. The provision for loan losses decreased from $900,000 for the period ended March 31, 2012 to $630,000 for the period ended March 31, 2013. Total noninterest income was $2,465,000 for the nine months ended March 31, 2013 compared to $2,502,000 for the nine months ended March 31, 2012. Noninterest expense was $6,431,000 for the nine months ended March 31, 2013 and $6,204,000 for the nine months ended March 31, 2012.

The three and nine months ended March 31, 2013 represented a return on average common equity of 8.49% and 9.12%, respectively, compared to 10.09% and 9.87% for the three and nine month periods ended March 31, 2012. The three and nine months ended March 31, 2013 represented a return on average assets of 0.77% and 0.81%, respectively, compared to 0.90% and 0.86% for the three and nine month periods ended March 31, 2012.

The allowance for loan losses as a percentage of gross loans receivable was 1.74% at March 31, 2013 compared to 1.68% at June 30, 2012. Nonperforming assets were $8,498,000 at March 31, 2013 compared to $10,234,000 at June 30, 2012.

As of March 31, 2013, FFWC's equity-to-assets ratio was 9.57% compared to 9.34% at June 30, 2012. Total assets at March 31, 2013 were $338,350,000 compared to $329,042,000 at June 30, 2012. Shareholders' equity was $32,367,000 at March 31, 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
             
             
    March 31     June 30  
    2013     2012  
    Unaudited        
Assets                
Cash and due from financial institutions   $ 3,482,896     $ 3,478,709  
Interest-earning deposits in other financial institutions     21,256,324       13,360,765  
  Cash and cash equivalents     24,739,220       16,839,474  
                 
Securities available for sale     82,648,848       83,665,458  
Loans receivable, net of allowance for loan losses of $3,739,000 at March 31, 2013 and $3,520,000 at June 30, 2012     209,977,420        205,934,060   
Loans held for sale     607,310       337,000  
Federal Home Loan Bank stock, at cost     2,717,300       2,717,300  
Accrued interest receivable     1,528,397       1,647,845  
Premises and equipment, net     3,356,553       3,550,515  
Mortgage servicing rights     572,148       486,617  
Cash surrender value of life insurance     7,139,664       6,938,977  
Goodwill     1,213,898       1,213,898  
Deferred tax asset     1,859,147       2,558,162  
Other assets     1,990,133       3,152,807  
  Total assets   $ 338,350,038     $ 329,042,113  
                 
Liabilities and shareholders' equity                
Deposits                
  Noninterest-bearing deposits   $ 26,100,216     $ 20,029,966  
  Interest-bearing deposits     273,496,986       262,519,228  
    Total deposits     299,597,202       282,549,194  
                 
Borrowings     4,758,400       14,258,400  
Accrued expenses and other liabilities     1,627,645       1,488,058  
  Total liabilities     305,983,247       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 March 31, 2013, $7,334,000 liquidation preference     7,227,962       7,166,924  
  Series B, 9% Fixed Rate Cumulative Perpetual Preferred Stock - 364 shares outstanding March 31, 2013, $368,000 liquidation preference     370,438       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     9,523,255       9,495,807  
Retained earnings     25,280,175       23,848,467  
Accumulated other comprehensive income     910,222       803,648  
Treasury stock, at cost: 714,244 shares     (10,963,624 )     (10,963,624 )
  Total shareholders' equity     32,366,791       30,746,461  
                 
  Total liabilities and shareholders' equity   $ 338,350,038     $ 329,042,113  
                 
                 
 
 
FFW Corporation Selected Financial Information
Consolidated Statement of Income
           
           
    Three Months Ended
March 31
  Nine Months Ended
March 31
 
    2013   2012   2013   2012  
    Unaudited   Unaudited   Unaudited   Unaudited  
Interest and dividend income:                          
  Loans, including fees   $ 2,522,505   $ 2,775,302   $ 7,908,368   $ 8,623,827  
  Taxable securities     379,743     512,215     1,279,902     1,553,621  
  Tax exempt securities     254,733     133,334     699,478     395,692  
  Other     9,437     9,481     18,105     19,230  
    Total interest and dividend income     3,166,418     3,430,332     9,905,853     10,592,370  
                           
Interest expense:                          
  Deposits     816,099     950,241     2,634,621     3,005,159  
  Borrowings     56,363     130,338     290,618     399,474  
    Total interest expense     872,462     1,080,579     2,925,239     3,404,633  
                           
Net interest income     2,293,956     2,349,753     6,980,614     7,187,737  
                           
Provision for loan losses     210,000     300,000     630,000     900,000  
                           
Net interest income after provision for loan losses     2,083,956     2,049,753     6,350,614     6,287,737  
                           
Noninterest income:                          
  Net gains on sales of securities     66,751     148     246,241     308,148  
  Net gains on sales of loans     203,473     283,019     711,709     576,930  
  Net gains (losses) on fixed assets     -     -     -     -  
  Other than temporary impairment on securities     (2,200 )   (2,573 )   (82,841 )   (90,573 )
  Commission income     177,903     219,716     572,366     543,975  
  Service charges and fees     227,979     273,109     752,148     805,106  
  Earnings on life insurance     66,628     69,797     200,686     212,697  
  Other     41,492     (38,424 )   64,925     145,254  
  Total noninterest income     782,026     804,792     2,465,234     2,501,537  
                           
Noninterest expense:                          
  Salaries and benefits     1,059,390     1,079,490     3,197,846     3,168,549  
  Occupancy and equipment     255,603     249,580     755,508     745,998  
  Professional     122,934     85,649     345,543     272,910  
  Marketing     36,202     44,654     127,019     137,977  
  Deposit insurance premium     115,815     113,905     343,995     316,822  
  Regulatory assessment     37,619     34,747     112,060     103,237  
  Correspondent bank charges     23,840     19,623     71,649     55,237  
  Data processing     140,159     127,863     415,106     371,287  
  Printing, postage and supplies     59,473     63,956     184,553     174,794  
  Expense on life insurance     17,418     16,108     52,255     48,325  
  Contribution expense     9,107     14,325     32,805     50,295  
  Other     286,169     267,700     792,302     758,567  
    Total noninterest expense     2,163,729     2,117,600     6,430,641     6,203,998  
                           
Income before income taxes     702,253     736,945     2,385,207     2,585,276  
                           
Income tax expense     58,795     10     354,137     456,676  
                           
Net income   $ 643,458   $ 736,935   $ 2,031,070   $ 2,128,600  
Preferred stock dividends and discount accretion, net     117,504     117,504     352,512     352,512  
Net income attributable to common shareholders   $ 525,954   $ 619,431   $ 1,678,558   $ 1,776,088  
                           
                           
 
 
FFW Corporation Selected Financial Information
Key Balances and Ratios
           
           
    Three Months Ended
March 31
  Nine Months Ended
March 31
 
    2013   2012   2013   2012  
    Unaudited   Unaudited   Unaudited   Unaudited  
Per common share data:                        
Earnings $ 0.47   $ 0.55   $ 1.50   $ 1.58  
Diluted earnings $ 0.47   $ 0.55   $ 1.50   $ 1.58  
Dividends paid $ 0.11   $ 0.11   $ 0.22   $ 0.22  
Average shares issued and outstanding   1,122,084     1,121,928     1,122,084     1,121,899  
Shares outstanding end of period   1,122,084     1,122,084     1,122,084     1,122,084  
                           
Supplemental data:                        
Net interest margin **   2.98 %   3.06 %   2.98 %   3.10 %
Return on average assets ***   0.77 %   0.90 %   0.81 %   0.86 %
Return on average common equity ***   8.49 %   10.09 %   9.12 %   9.87 %
                           
    March 31   June 30              
    2013   2012              
Nonperforming assets * $ 8,498,053   $ 10,233,539              
Repossessed assets $ 715,629   $ 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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