WABASH, IN--(Marketwire - Apr 27, 2011) - FFW Corporation (the "Corporation") (OTCBB: FFWC) (4/26/2011 Close: $17.90), parent corporation of Crossroads Bank, announced earnings for the quarter and nine months ended March 31, 2011.
For the three months ended March 31, 2011, the Corporation reported net income of $644,000 or $0.47 per common share. This is compared to net income of $461,000 or $0.31 per common share for the three months ended March 31, 2010. The net interest margin for the three months ended March 31, 2011 was $2,507,000 compared to $2,475,000 for the three months ended March 31, 2010. The provision for loan losses decreased from $370,000 for the period ended March 31, 2010 to $300,000 for the period ended March 31, 2011. Total noninterest income was $645,000 for the three months ended March 31, 2011 and $548,000 for the three months ended March 31, 2010. Noninterest expense was $1,972,000 for the three months ended March 31, 2011 and $2,093,000 for the three months ended March 31, 2010.
For the nine months ended March 31, 2011, the Corporation reported net income of $1,937,000 or $1.41 per common share. This is compared to net income of $1,569,000 or $1.09 per common share for the nine months ended March 31, 2010. The net interest margin for the nine months ended March 31, 2011 was $7,275,000 compared to $7,474,000 for the nine months ended March 31, 2010. The provision for loan losses was $1,145,000 for the nine months ended March 31, 2011 and $1,620,000 for the nine months ended March 31, 2010. Total noninterest income was $2,509,000 for the nine months ended March 31, 2011 and $2,271,000 for the nine months ended March 31, 2010. Noninterest expense was $5,998,000 for the nine months ended March 31, 2011 and $6,157,000 for the nine months ended March 31, 2010.
The three and nine months ended March 31, 2011 represented a return on average common equity of 9.93% and 9.63%, respectively, compared to 6.67% and 7.67% for the three and nine month periods ended March 31, 2010. The three and nine months ended March 31, 2011 represented a return on average assets of 0.80% and 0.77%, respectively, compared to 0.56% and 0.62% for the three and nine month periods ended March 31, 2010.
The allowance for loan losses as a percentage of gross loans receivable was 1.66% at March 31, 2011 and 1.57% at June 30, 2010. Nonperforming assets were $10,281,000 at March 31, 2011 and $8,695,000 at June 30, 2010.
As of March 31, 2011, FFWC's equity-to-assets ratio was 8.92% compared to 8.64% at June 30, 2010. Total assets at March 31, 2011 were $322,244,000 compared to $333,564,000 at June 30, 2010. Shareholders' equity was $28,760,000 at March 31, 2011 compared to $28,804,000 at June 30, 2010. 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 Bulletin Board under the symbol "FFWC.OB." Our website address is www.crossroadsbanking.com.
FFW Corporation
Selected Financial Information
Consolidated Balance Sheet
March 31 June 30
------------- -------------
2011 2010
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Unaudited
Assets
Cash and due from financial institutions $ 3,957,333 $ 3,229,138
Interest-earning deposits in other financial
institutions 5,419,634 7,386,372
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Cash and cash equivalents 9,376,967 10,615,510
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Securities available for sale 72,850,486 76,716,794
Loans receivable, net of allowance for loan
losses of $3,673,095 at
March 31, 2011 and $3,582,476 at June 30,
2010 217,699,544 224,135,086
Loans held for sale - 40,000
Federal Home Loan Bank stock, at cost 3,195,900 3,627,100
Accrued interest receivable 1,747,856 1,645,286
Premises and equipment, net 3,768,944 3,889,487
Mortgage servicing rights 461,832 375,052
Cash surrender value of life insurance 6,585,621 6,374,995
Goodwill 1,213,898 1,213,898
Deferred tax asset 2,106,506 1,893,647
Other assets 3,236,266 3,036,680
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Total assets $ 322,243,820 $ 333,563,535
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Liabilities and shareholders' equity
Deposits
Noninterest-bearing deposits $ 18,502,859 $ 16,278,993
Interest-bearing deposits 258,996,540 262,550,500
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Total deposits 277,499,399 278,829,493
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Borrowings 14,563,945 24,699,557
Accrued expenses and other liabilities 1,420,756 1,230,602
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Total liabilities 293,484,100 304,759,652
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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, 2011, $7,334,000
liquidation preference 7,065,193 7,004,155
Series B, 9% Fixed Rate Cumulative
Perpetual Preferred Stock - 364 shares
outstanding March 31, 2011, $368,000
liquidation preference 387,607 394,045
Common stock, $.01 par; 2,000,000 shares
authorized;
issued: 1,836,328
outstanding: 1,121,885 shares - March 31,
2011 and 1,117,260 shares - June 30, 2010 18,363 18,363
Additional paid-in capital 9,419,928 9,440,356
Retained earnings 23,723,253 22,880,556
Accumulated other comprehensive income (887,946) 104,080
Treasury stock, at cost: 714,443 shares -
March 31, 2011 and 719,068 shares - June 30,
2010 (10,966,678) (11,037,672)
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Total shareholders' equity 28,759,720 28,803,883
------------- -------------
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Total liabilities and shareholders' equity $ 322,243,820 $ 333,563,535
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Consolidated Statement of Income
Three Months Ended Nine Months Ended
March 31 March 31
------------------------ -------------------------
2011 2010 2011 2010
----------- ----------- ----------- ------------
Unaudited Unaudited Unaudited Unaudited
Interest and dividend
income:
Loans, including fees $ 2,980,148 $ 3,355,577 $ 9,160,471 $ 10,474,932
Taxable securities 599,583 637,842 1,848,872 1,929,098
Tax exempt securities 147,116 165,477 457,602 517,280
Other 4,906 5,404 27,003 19,292
----------- ----------- ----------- ------------
Total interest and
dividend income 3,731,753 4,164,300 11,493,948 12,940,602
----------- ----------- ----------- ------------
Interest expense:
Deposits 1,092,088 1,338,513 3,569,009 4,203,575
Borrowings 132,830 350,304 649,527 1,263,034
----------- ----------- ----------- ------------
Total interest
expense 1,224,918 1,688,817 4,218,536 5,466,609
----------- ----------- ----------- ------------
Net interest income 2,506,835 2,475,483 7,275,412 7,473,993
Provision for loan
losses 300,000 370,000 1,145,000 1,620,000
Net interest income
after provision for
loan losses 2,206,835 2,105,483 6,130,412 5,853,993
Noninterest income:
Net gains (losses) on
sales of securities - (5,805) 257,739 468,903
Net gains on sales of
loans 134,942 41,177 454,177 205,358
Net gains on sales of
fixed assets 5,001 - 5,001 -
Other than temporary
impairment on
securities - - - (150,000)
Commission income 151,743 122,196 481,426 420,735
Service charges and
fees 261,941 261,063 1,042,362 905,228
Earnings on life
insurance 69,531 70,120 210,626 209,591
Other 21,830 59,319 57,435 210,915
----------- ----------- ----------- ------------
Total noninterest
income 644,988 548,070 2,508,766 2,270,730
----------- ----------- ----------- ------------
Noninterest expense:
Salaries and benefits 965,227 1,025,598 2,980,819 3,042,902
Occupancy and
equipment 249,805 224,614 742,646 703,048
Professional 94,091 130,629 291,662 291,250
Marketing 33,037 25,476 115,957 99,133
Deposit insurance
premium 140,036 115,455 378,823 350,992
Regulatory assessment 25,899 25,545 76,782 74,142
Correspondent bank
charges 20,370 20,288 60,805 57,984
Data processing 103,529 170,795 323,927 443,217
Printing, postage and
supplies 61,531 61,603 168,736 189,107
Expense on life
insurance 14,902 16,694 26,116 50,081
Contribution expense 17,636 13,898 55,017 39,099
Other 246,208 262,484 776,724 816,002
----------- ----------- ----------- ------------
Total noninterest
expense 1,972,271 2,093,079 5,998,014 6,156,957
----------- ----------- ----------- ------------
Income before income
taxes 879,552 560,474 2,641,164 1,967,766
Income tax expense 235,814 99,065 704,115 399,213
----------- ----------- ----------- ------------
Net income $ 643,738 $ 461,409 $ 1,937,049 $ 1,568,553
=========== =========== =========== ============
Preferred stock
dividends and discount
accretion, net 117,504 117,503 352,512 352,508
----------- ----------- ----------- ------------
Net income attributable
to common shareholders $ 526,234 $ 343,906 $ 1,584,537 $ 1,216,045
=========== =========== =========== ============
Three Months Ended Nine Months Ended
March 31 March 31
------------------------- ------------------------
2011 2010 2011 2010
------------ ----------- ----------- -----------
Unaudited Unaudited Unaudited Unaudited
Per common share data:
Earnings $ 0.47 $ 0.31 $ 1.41 $ 1.09
Diluted earnings $ 0.47 $ 0.31 $ 1.41 $ 1.09
Dividends paid $ 0.22 $ 0.22 $ 0.66 $ 0.66
Average shares issued
and outstanding 1,121,885 1,115,871 1,122,963 1,113,446
Shares outstanding end
of period 1,121,885 1,117,260 1,121,885 1,117,260
Supplemental data:
Net interest margin ** 3.33% 3.16% 3.08% 3.12%
Return on average
assets *** 0.80% 0.56% 0.77% 0.62%
Return on average
common equity *** 9.93% 6.67% 9.63% 7.67%
March 31 June 30
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2011 2010
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Nonperforming assets * $ 10,280,656 $ 8,694,798
Repossessed assets $ 1,686,905 $ 1,230,635
* 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 Information: FOR MORE INFORMATION Contact: Emily Boardman Treasurer 260-563-3185