FFW Corporation Announces Earnings for the Quarter and Nine Months Ended March 31, 2010

 | Source: FFW Corporation FFW Corporation

WABASH, IN--(Marketwire - April 28, 2010) - FFW Corporation (the "Corporation") (OTCBB: FFWC) (4/27/2010 Close: $11.50), parent corporation of Crossroads Bank, announced earnings for the three and nine months ended March 31, 2010.

For the three months ended March 31, 2010, the Corporation reported net income of $461,000 or $0.31 per common share. This is compared to net loss of $89,000 or -$0.18 per common share for the quarter ended March 31, 2009. The earnings in the quarter ended March 31, 2010 reflect a net interest margin of $2,475,000. The provision for loan losses was $370,000 for the three months ended March 31, 2010 and $515,000 for the three months ended March 31, 2009. Noninterest income was $548,000 for the quarter ended March 31, 2010 as compared to $109,000 for the quarter ended March 31, 2009. Noninterest expense was $2,093,000 for the quarter ended March 31, 2010 compared to $1,779,000 for the quarter ended March 31, 2009.

For the nine months ended March 31, 2010, the Corporation reported net income of $1,569,000 or $1.10 per common share. This is compared to a net loss of $2,495,000 or -$2.37 per common share for the nine months ended March 31, 2009. The net interest margin for the nine months ended March 31, 2010 was $7,474,000 compared to $7,516,000 for the nine months ended March 31, 2009. The provision for loan losses increased from $1,229,000 for the period ended March 31, 2009 to $1,620,000 for the period ended March 31, 2010. Total noninterest income was $2,271,000 for the nine months ended March 31, 2010 and -$5,447,000 for the nine months ended March 31, 2009. The period ended March 31, 2009 includes a non-cash impairment charge of $6,692,000 related to certain Federal National Mortgage Association ("Fannie Mae") preferred stocks. Noninterest expense increased from $5,317,000 for the nine months ended March 31, 2009 to $6,157,000 for the nine months ended March 31, 2010.

The three and nine month periods ended March 31, 2010 represent a return on average common equity of 6.67% and 7.67%, respectively. Return on average common equity for the three and nine month periods ended March 31, 2009 was -4.00% and -16.50%, respectively. Return on average total assets for the three and nine month periods ended March 31, 2010 was 0.56% and 0.62%, respectively. This is compared to -0.10% and -1.04% for the three and nine month periods ended March 31, 2009.

The allowance for loan losses as a percentage of gross loans receivable was 1.48% at March 31, 2010 and 1.53% at June 30, 2009. Nonperforming assets were $6.5 million at March 31, 2010 and $4.8 million at June 30, 2009.

As of March 31, 2010, FFWC's equity-to-assets ratio was 8.45% compared to 8.26% at June 30, 2009. Total assets at March 31, 2010 were $333.5 million compared to $332.6 million at June 30, 2009. Shareholders' equity was $28.2 million at March 31, 2010 compared to $27.5 million at June 30, 2009. 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
                                              -------------  -------------
                                                  2010           2009
                                              -------------  -------------
                                                Unaudited

Assets
Cash and due from financial institutions      $   4,550,076  $   3,830,526
Interest-earning deposits in other financial
 institutions - short term                        3,083,139      7,284,371
                                              -------------  -------------
   Cash and cash equivalents                      7,633,215     11,114,897
                                              -------------  -------------

Securities available for sale                    72,512,485     66,273,786
Loans receivable, net of allowance for loan
 losses of $3,460,757 at
   March 31, 2010 and $3,605,204 at June 30,
    2009                                        230,264,897    232,090,418
Loans held for sale                                 262,400      1,337,609
Federal Home Loan Bank stock, at cost             3,627,100      3,627,100
Accrued interest receivable                       1,615,483      1,425,374
Premises and equipment, net                       3,937,185      4,096,623
Mortgage servicing rights                           435,867        392,839
Cash surrender value of life insurance            6,303,912      6,094,321
Goodwill                                          1,213,898      1,213,898
Other assets                                      5,725,003      4,964,787
                                              -------------  -------------
   Total assets                               $ 333,531,445  $ 332,631,652
                                              =============  =============

Liabilities
Noninterest-bearing deposits                  $  15,882,039  $  12,924,010
Interest-bearing deposits                       259,303,909    248,643,498
                                              -------------  -------------
   Total deposits                               275,185,948    261,567,508
                                              -------------  -------------

Federal Home Loan Bank advances                  26,199,557     38,098,030
Accrued expenses and other liabilities            3,950,127      5,477,874
                                              -------------  -------------
   Total liabilities                            305,335,632    305,143,412
                                              -------------  -------------

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 September 30, 2009,
    $7,289,000 liquidation preference             6,983,809      6,922,771
   Series B, 9% Fixed Rate Cumulative
    Perpetual Preferred Stock - 364 shares
    outstanding September 30, 2009, $364,000
    liquidation preference                          396,191        402,629
Common stock, $.01 par; 2,000,000 shares
 authorized;                                         18,363         18,363
   issued: 1,836,328 shares
   outstanding: 1,117,260 shares - March 31,
    2010 and 1,112,260 shares - June 30, 2009
Additional paid-in capital                        9,420,424      9,448,627
Retained earnings                                22,832,508     22,351,652
Accumulated other comprehensive (loss)             (417,810)      (541,380)
Treasury stock, at cost: 719,068 shares -
 March 31, 2010 and 724,068 shares - June 30,
 2009                                           (11,037,672)   (11,114,422)
                                              -------------  -------------
   Total shareholders' equity                    28,195,813     27,488,240
                                              -------------  -------------

                                              -------------  -------------
Total liabilities and shareholders' equity    $ 333,531,445  $ 332,631,652
                                              =============  =============





Consolidated Statement of Income

                  Three Months Ended March 31   Nine Months Ended March 31
                  ----------------------------  --------------------------
                      2010           2009           2010          2009
                  -------------  -------------  ------------  ------------
                    Unaudited      Unaudited      Unaudited     Unaudited
Interest and
 dividend income:
  Loans,
   including fees $   3,355,577  $   3,557,179  $ 10,474,932  $ 11,516,071
  Taxable
   securities           637,842        588,187     1,929,098     1,861,829
  Nontaxable
   securities           165,477        187,194       517,280       551,385
  Other                   5,404          4,578        19,292        33,451
                  -------------  -------------  ------------  ------------
    Total
     interest and
     dividend
     income           4,164,300      4,337,138    12,940,602    13,962,736
                  -------------  -------------  ------------  ------------

Interest expense:
  Deposits            1,338,513      1,505,622     4,203,575     5,002,888
  Borrowings            350,304        455,467     1,263,034     1,443,615
                  -------------  -------------  ------------  ------------
    Total
     interest
     expense          1,688,817      1,961,089     5,466,609     6,446,503
                  -------------  -------------  ------------  ------------

Net interest
 income               2,475,483      2,376,049     7,473,993     7,516,233

Provision for
 loan losses            370,000        515,000     1,620,000     1,229,000

Net interest
 income after
 provision for
  loan losses         2,105,483      1,861,049     5,853,993     6,287,233

Noninterest
 income:
  Net gains
   (losses) on
   sales of
   securities            (5,805)      (682,004)      468,903      (494,668)
  Net gains on
   sales of loans        41,177        280,108       205,358       338,134
  Other than
   temporary
   impairment on
   securities                 -              -      (150,000)   (6,692,000)
  Commission
   income               122,196        129,910       420,735       418,555
  Service charges
   and fees             261,063        241,655       905,228       644,886
  Earnings on
   life insurance        70,120         78,497       209,591       223,551
  Other                  59,319         60,550       210,915       114,369
                  -------------  -------------  ------------  ------------
    Total
     noninterest
     income
     (loss)             548,070        108,716     2,270,730    (5,447,173)
                  -------------  -------------  ------------  ------------

Noninterest
 expense:
  Salaries and
   benefits           1,025,598        921,757     3,042,902     2,753,777
  Occupancy and
   equipment            224,614        228,814       703,048       642,596
  Professional          130,629         68,122       291,250       189,156
  Marketing              25,476         31,578        99,133       113,882
  Deposit
   insurance
   premium              115,455         70,522       350,992       153,875
  Regulatory
   assessment            25,545         23,946        74,142        70,107
  Correspondent
   bank charges          20,288         18,208        57,984        58,146
  Data processing       170,795        131,066       443,217       388,809
  Printing,
   postage and
   supplies              61,603         62,623       189,107       182,193
  Expense on life
   insurance             16,694         13,809        50,081        60,190
  Contribution
   expense               13,898         10,283        39,099        39,364
  Other                 262,484        198,342       816,002       664,579
                  -------------  -------------  ------------  ------------
    Total
     noninterest
     expense          2,093,079      1,779,070     6,156,957     5,316,674
                  -------------  -------------  ------------  ------------

Income (loss)
 before income
 taxes                  560,474        190,695     1,967,766    (4,476,614)

Income tax
 expense
 (benefit)               99,065        279,629       399,213    (1,981,420)

                  -------------  -------------  ------------  ------------
Net income (loss) $     461,409  $     (88,934) $  1,568,553  $ (2,495,194)
                  =============  =============  ============  ============
Preferred stock
 dividends and
 discount
 accretion, net         117,503        117,503       352,508       130,743
                  -------------  -------------  ------------  ------------
Net income (loss)
 attributable to
 common
 shareholders     $     343,907  $    (206,437) $  1,216,046  $ (2,625,937)
                  =============  =============  ============  ============





                           Three Months Ended         Nine Months Ended
                                March 31                  March 31
                        ------------------------  ------------------------
                            2010         2009         2010         2009
                        -----------  -----------  -----------  -----------
                         Unaudited    Unaudited    Unaudited    Unaudited
Per common share data:
Earnings                $      0.31  $     (0.18) $      1.10  $     (2.37)
Diluted earnings        $      0.31  $     (0.18) $      1.10  $     (2.37)
Dividends paid          $      0.22  $      0.22  $      0.66  $      0.66
Average shares issued
 and outstanding          1,115,871    1,112,260    1,113,446    1,111,158
Shares outstanding end
 of period                1,117,260    1,112,260    1,117,260    1,112,260

Supplemental data:
Net interest margin **         3.16%        3.20%        3.12%        3.32%
Return on average
 assets ***                    0.56%       -0.10%        0.62%       -1.04%
Return on average
 common equity ***             6.67%       -4.00%        7.67%      -16.50%

                          March 31     June 30
                        -----------  -----------
                            2010         2009
                        -----------  -----------
Nonperforming assets *  $ 6,520,934  $ 4,829,152
Repossessed assets      $ 1,095,135  $ 1,334,259

*   Includes non-accruing loans, accruing loans delinquent more than 90
    days and foreclosed assets
**  Yields reflected have not been computed on a tax equivalent basis
*** Annualized

Contact Information: Contact: Emily Boardman Treasurer 260-563-3185