Results

FFW Corporation

01/24/2020 | Press release | Distributed by Public on 01/24/2020 07:46

FFW Corporation Announces Earnings for the Quarter and Year to Date Ended December 31, 2019

WABASH, Ind., Jan. 24, 2020 (GLOBE NEWSWIRE) -- FFW Corporation (the 'Corporation') (OTC PINK: FFWC) (1/23/20 Close: $43.00), parent corporation of Crossroads Bank (the 'Bank'), announced earnings for the three and six months ended December 31, 2019.

For the three months ended December 31, 2019, the Corporation reported net income of $1,267,000 or $1.11 per common share compared to $1,148,000 or $1.00 per common share for the three months ended December 31, 2018. Net interest income for the three months ended December 31, 2019 was $3,410,000 compared to $3,297,000 for the three months ended December 31, 2018. The provision for loan losses was $50,000 for the three months ended December 31, 2019 and $56,000 for the three months ended December 31, 2018. Total noninterest income was $1,045,000 for the three months ended December 31, 2019 compared to $814,000 for the three months ended December 31, 2018. Noninterest expense was $2,938,000 for the three months ended December 31, 2019 and $2,797,000 for the three months ended December 31, 2018.

For the six months ended December 31, 2019, the Corporation reported net income of $2,503,000 or $2.19 per common share compared to $2,253,000 or $1.95 per common share for the six months ended December 31, 2018. Net interest income for the six months ended December 31, 2019 was $6,901,000 compared to $6,611,000 for the six months ended December 31, 2018. The Company recognized a provision for loan losses of $125,000 for the six months ended December 31, 2019 and $131,000 for the six months ended December 31, 2018. Total noninterest income was $2,056,000 for the six months ended December 31, 2019 compared to $1,681,000 for the six months ended December 31, 2018. Noninterest expense was $5,928,000 for the six months ended December 31, 2019 and $5,557,000 for the six months ended December 31, 2018.

The three and six months ended December 31, 2019 represented a return on average common equity of 10.89% and 10.83%, respectively, compared to 11.24% and 11.03% for the three and six month periods ended December 31, 2018. The three and six months ended December 31, 2019 represented a return on average assets of 1.20% and 1.19%, respectively, compared to 1.13% and 1.13%, for the three and six month periods ended December 31, 2018.

The allowance for loan losses as a percentage of gross loans receivable was 1.37% at December 31, 2019 compared to 1.35% at June 30, 2019. Nonperforming assets were $3,278,000 at December 31, 2019 compared to $3,693,000 at June 30, 2019.

As of December 31, 2019, FFWC's equity-to-assets ratio was 11.10% compared to 10.79% at June 30, 2019. Total assets at December 31, 2019 were $417,095,000 compared to $414,517,000 at June 30, 2019. Shareholders' equity was $46,318,000 at December 31, 2019 compared to $44,738,000 at June 30, 2019. Crossroads Bank exceeds all applicable regulatory requirements to be considered 'well capitalized.'

Forward Looking Statements

This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include expressions such as 'expects,' 'intends,' 'believes,' and 'should,' which are necessarily statements of belief as to the expected outcomes of future events. Actual results could materially differ from those presented. The Corporation's ability to predict future results involves a number of risks and uncertainties. The Corporation undertakes no obligation to release revisions to these forward-looking statements or reflect events or circumstances after the date of this release.

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 five Indiana banking centers located in Columbia City, North Manchester, Peru, South Whitley and Syracuse. The Bank provides leasing services at its banking centers and its Fishers, 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. Crossroads Bank, Member FDIC.

FFW Corporation
Selected Financial Information
Consolidated Balance Sheet

December 31 June 30
2019 2019
Unaudited
Assets
Cash and due from financial institutions $ 5,860,857 $ 4,897,871
Interest-bearing deposits in other financial institutions 15,070,735 21,857,520
Cash and cash equivalents 20,931,592 26,755,391
Securities available for sale 79,779,766 85,275,452
Loans receivable, net of allowance for loan losses of $4,070,625 at
December 31, 2019 and $3,857,473 at June 30, 2019 289,164,000 279,796,467
Loans held for sale 2,899,343 1,340,765
Federal Home Loan Bank stock, at cost 1,462,500 1,462,500
Accrued interest receivable 2,162,610 2,240,851
Premises and equipment, net 7,799,158 5,442,196
Mortgage servicing rights 827,314 762,392
Cash surrender value of life insurance 9,012,266 8,867,601
Goodwill 1,213,898 1,213,898
Repossessed Assets 271,977 194,730
Other assets 1,570,468 1,165,252
Total assets $ 417,094,892 $ 414,517,495
Liabilities and shareholders' equity
Deposits
Noninterest-bearing $ 30,513,318 $ 33,005,454
Interest-bearing 329,681,287 331,115,288
Total deposits 360,194,605 364,120,742
Borrowings 7,500,000 2,000,000
Accrued expenses and other liabilities 3,082,617 3,659,180
Total liabilities 370,777,222 369,779,922
Shareholders' equity
Common stock, $.01 par; 2,000,000 shares authorized;
Issued: 1,836,328; outstanding: 1,137,783 - December 31, 2019 and 1,149,783 - June 30, 2019 18,363 18,363
Additional paid-in capital 9,835,646 9,777,849
Retained earnings 45,671,538 43,691,848
Accumulated other comprehensive income 2,278,867 2,238,257
Treasury stock, at cost: 698,545 shares at December 31, 2019 and 686,545 shares at June 30, 2019 (11,486,744 ) (10,988,744 )
Total shareholders' equity 46,317,670 44,737,573
Total liabilities and shareholders' equity $ 417,094,892 $ 414,517,495

FFW Corporation
Selected Financial Information
Consolidated Statement of Income

Three Months Ended December 31 Six Months Ended December 31
2019 2018 2019 2018
Unaudited Unaudited Unaudited Unaudited
Interest and dividend income:
Loans, including fees $ 3,685,967 $ 3,306,392 $ 7,389,196 $ 6,621,629
Taxable securities 291,542 346,492 684,358 663,645
Tax exempt securities 312,265 300,967 625,859 610,321
Other 59,806 130,703 166,787 198,228
Total interest and dividend income 4,349,580 4,084,554 8,866,200 8,093,823
Interest expense:
Deposits 928,987 778,315 1,944,647 1,465,130
Borrowings 10,438 8,740 20,278 17,702
Total interest expense 939,425 787,055 1,964,925 1,482,832
Net interest income 3,410,155 3,297,499 6,901,275 6,610,991
Provision for loan losses 50,000 56,118 125,000 131,118
Net interest income after provision for
loan losses 3,360,155 3,241,381 6,776,275 6,479,873
Noninterest income:
Net gains on sales of securities (259 ) - (259 ) 18,111
Net gains on sales of loans 190,773 63,102 357,358 192,737
Net gains (losses) on sales of REO 4,565 - 4,565 -
Commission income 277,207 247,220 589,813 488,470
Service charges and fees 290,980 248,561 517,670 470,024
Earnings on life insurance 73,346 70,397 144,665 141,360
Other 208,352 185,131 442,539 370,018
Total noninterest income 1,044,964 814,411 2,056,351 1,680,720
Noninterest expense:
Salaries and benefits 1,581,507 1,565,753 3,160,630 3,130,861
Occupancy and equipment 288,883 303,964 584,575 624,875
Professional 148,299 96,657 288,638 190,381
Marketing 91,721 95,565 199,905 194,812
Deposit insurance premium 5,939 33,000 38,939 61,542
Regulatory assessment 8,954 8,099 17,907 16,198
Correspondent bank charges 19,293 20,250 39,623 39,190
Data processing 344,458 231,563 661,396 457,671
Printing, postage and supplies 68,995 67,474 137,514 113,912
Expense on life insurance 14,894 18,730 29,789 37,460
Contribution expense 9,457 4,735 19,003 11,552
Expense on REO 17,148 3,157 20,672 8,822
Other 338,330 348,161 729,756 669,693
Total noninterest expense 2,937,878 2,797,108 5,928,347 5,556,969
Income before income taxes 1,467,241 1,258,684 2,904,279 2,603,624
Income tax expense 199,966 110,941 401,212 351,098
Net income $ 1,267,275 $ 1,147,743 $ 2,503,067 $ 2,252,526

FFW Corporation
Selected Financial Information
Key Balances and Ratios

Three Months Ended December 31 Six Months Ended December 31
2019 2018 2019 2018
Unaudited Unaudited Unaudited Unaudited
Per common share data:
Earnings $1.11 $1.00 $2.19 $1.95
Diluted earnings $1.11 $1.00 $2.19 $1.95
Dividends paid $0.23 $0.21 $0.46 $0.42
Average shares issued and outstanding 1,137,783 1,149,541 1,141,109 1,154,165
Shares outstanding end of period 1,137,783 1,149,480 1,137,783 1,149,480
Supplemental data:
Net interest margin ** 3.46 % 3.45 % 3.51 % 3.53 %
Return on average assets *** 1.20 % 1.13 % 1.19 % 1.13 %
Return on average common equity *** 10.89 % 11.24 % 10.83 % 11.03 %
December 31 June 30
2019 2019
Nonperforming assets * $3,278,358 $3,692,825
Repossessed assets $271,977 $194,730
* 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

FOR MORE INFORMATION Contact: Emily Boardman, Treasurer, at (260) 563-3185

Source: FFW Corporation