FFW Corporation Announces 46% Increase in Earnings per Share

WABASH, IN--(Marketwired - Oct 29, 2014) -  FFW Corporation (the "Corporation") (OTCBB: FFWC) (10/28/14 Close: $22.00), parent corporation of Crossroads Bank, announced earnings for the quarter ended September 30, 2014.

For the three months ended September 30, 2014, the Corporation reported net income of $867,000 or $0.67 per common share compared to $638,000 or $0.46 per common share for the three months ended September 30, 2013. Net interest income for the three months ended September 30, 2014 was $2,810,000 compared to $2,560,000 for the three months ended September 30, 2013. The provision for loan losses was $180,000 for the periods ended September 30, 2014 and 2013. Total noninterest income was $956,000 for the three months ended September 30, 2014 compared to $606,000 for the three months ended September 30, 2013. Noninterest expense was $2,485,000 for the three months ended September 30, 2014 and $2,197,000 for the three months ended September 30, 2013. 

The three months ended September 30, 2014 represented a return on average common equity of 10.61% compared to 8.75% for the three months ended September 30, 2013. The three months ended September 30, 2014 represented a return on average assets of 1.01% compared to 0.75% for the three months ended September 30, 2013.

The allowance for loan losses as a percentage of gross loans receivable was 1.37% at September 30, 2014 compared to 1.29% at June 30, 2014. Nonperforming assets were $7,257,000 at September 30, 2014 compared to $7,084,000 at June 30, 2014.

As of September 30, 2014, FFWC's equity-to-assets ratio was 10.26% compared to 10.08% at June 30, 2014. Total assets at September 30, 2014 were $338,829,000 compared to $335,496,000 at June 30, 2014. Shareholders' equity was $34,752,000 at September 30, 2014 compared to $33,830,000 at June 30, 2014. Crossroads Bank exceeds all applicable regulatory requirements to be considered "well capitalized." 

On October 27, 2014 the Corporation redeemed 1,500 shares of Fixed Rate Cumulative Preferred Stock, Series A ("Series A Preferred Stock"), for $1,500,000, plus accrued dividends. The Series A Preferred Stock was paying dividends at 9% per year. Following the redemption, the Corporation has outstanding 1,039 shares of its Series A Preferred Stock, 364 shares of its Fixed Rate Cumulative Preferred Stock, Series B, which pays dividends at 9% per year, and 3,250 shares of its Fixed Rate Cumulative Preferred Stock, Series C, which currently pays annual dividends of 5%. 

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.

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.

FFW Corporation
Selected Financial Information
Consolidated Balance Sheet
				September 30				June 30
				2014				2014
				Unaudited
Assets
Cash and due from financial institutions				$	5,557,469			$	6,729,693
Interest-earning deposits in other financial institutions					8,133,012				5,706,136
	Cash and cash equivalents				13,690,481				12,435,829
Securities available for sale					82,275,138				83,751,842
Loans receivable, net of allowance for loan losses of $3,067,000 at September 30, 2014 and $2,851,000 at June 30, 2014					221,462,040				217,629,375
Loans held for sale					-				286,800
Federal Home Loan Bank stock, at cost					2,717,300				2,717,300
Accrued interest receivable					1,838,279				1,769,840
Premises and equipment, net					3,569,383				3,278,681
Mortgage servicing rights					703,855				680,362
Cash surrender value of life insurance					7,540,376				7,473,117
Goodwill					1,213,898				1,213,898
Deferred tax asset					673,343				1,058,029
Other assets					3,144,760				3,200,907
	Total assets			$	338,828,853			$	335,495,980
Liabilities and shareholders' equity
Deposits
	Noninterest-bearing deposits			$	30,562,078			$	29,462,977
	Interest-bearing deposits				254,622,856				266,730,899
		Total deposits			285,184,934				296,193,876
Borrowings					16,758,400				3,258,400
Accrued expenses and other liabilities					2,133,696				2,213,560
	Total liabilities				304,077,030				301,665,836
Shareholders' equity
Preferred stock, $.01 par; $1,000 liquidation value per share; 500,000 shares authorized;
	Series A, 9% Fixed Rate Cumulative Perpetual Preferred Stock - 2,539 shares outstanding September 30, 2014 and June 30, 2014, $2,568,000 liquidation preference September 30, 2014 and June 30, 2014				2,539,000				2,539,000
	Series B, 9% Fixed Rate Cumulative Perpetual Preferred Stock - 364 shares outstanding September 30, 2014 and June 30, 2014, $368,000 liquidation preference September 30, 2014 and June 30, 2014				364,000				364,000
	Series C, 5% Fixed Rate Cumulative Perpetual Preferred Stock - 3,250 shares outstanding September 30, 2014 and June 30, 2014, $3,271,000 liquidation preference September 30, 2014 and June 30, 2014				3,250,000				3,250,000
Common stock, $.01 par; 2,000,000 shares authorized; issued shares: 1,836,328 outstanding shares: 1,132,084 at September 30, 2014 and June 30, 2014					18,363				18,363
Additional paid-in capital					9,457,942				9,446,708
Retained earnings					29,506,876				28,870,083
Accumulated other comprehensive income					425,766				152,114
Treasury stock, at cost: 704,244 shares at September 30, 2014 and June 30, 2014					(10,810,124	)			(10,810,124	)
	Total shareholders' equity				34,751,823				33,830,144
	Total liabilities and shareholders' equity			$	338,828,853			$	335,495,980

FFW Corporation
Selected Financial Information
Consolidated Statement of Income
				Three Months Ended September 30
				2014			2013
				Unaudited			Unaudited
Interest and dividend income:
	Loans, including fees			$	2,607,405		$	2,655,870
	Taxable securities				326,427			347,313
	Tax exempt securities				315,429			298,478
	Other				6,440			9,066
		Total interest and dividend income			3,255,701			3,310,727
Interest expense:
	Deposits				407,705			705,113
	Borrowings				37,513			45,309
		Total interest expense			445,218			750,422
Net interest income					2,810,483			2,560,305
Provision for loan losses					180,000			180,000
Net interest income after provision for
loan losses					2,630,483			2,380,305
Noninterest income:
	Net gains on sales of securities				26,426			-
	Net gains on sales of loans				106,934			43,633
	Net gains (losses) on fixed assets				-			-
	Other than temporary impairment on securities				-			-
	Commission income				244,385			211,458
	Service charges and fees				256,413			263,892
	Earnings on life insurance				67,259			67,221
	Other				254,544			19,338
		Total noninterest income			955,961			605,542
Noninterest expense:
	Salaries and benefits				1,219,902			1,098,801
	Occupancy and equipment				244,147			248,474
	Professional				136,397			167,661
	Marketing				35,630			41,874
	Deposit insurance premium				53,200			79,208
	Regulatory assessment				25,985			28,885
	Correspondent bank charges				16,108			21,553
	Data processing				153,731			169,686
	Printing, postage and supplies				52,641			55,365
	Expense on life insurance				20,315			18,818
	Contribution expense				15,136			12,821
	Other				511,840			254,153
		Total noninterest expense			2,485,032			2,197,299
Income before income taxes					1,101,412			788,548
Income tax expense					234,145			150,670
Net income				$	867,267		$	637,878
Preferred stock dividends and discount accretion, net					105,943			117,504
Net income attributable to common shareholders				$	761,324		$	520,374

FFW Corporation
Selected Financial Information
Key Balances and Ratios
		Three Months Ended September 30
		2014				2013
		Unaudited				Unaudited
Per common share data:
Earnings		$	0.67			$	0.46
Diluted earnings		$	0.67			$	0.46
Dividends paid		$	0.11			$	0.11
Average shares issued and outstanding			1,132,084				1,132,084
Shares outstanding end of period			1,132,084				1,132,084
Supplemental data:
Net interest margin **			3.51	%			3.17	%
Return on average assets ***			1.01	%			0.75	%
Return on average common equity ***			10.61	%			8.75	%
		September 30				June 30
		2014				2014
Nonperforming assets *		$	7,257,302			$	7,084,099
Repossessed assets		$	2,158,228			$	2,003,040

*	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