FFW Corporation Announces Earnings for the Three and Six Months Ended December 31, 2012

WABASH, IN--(Marketwire - Jan 23, 2013) -  FFW Corporation (the "Corporation") (OTCBB: FFWC) (1/22/2013 Close: $14.00), parent corporation of Crossroads Bank, announced earnings for the three and six months ended December 31, 2012. 

For the three months ended December 31, 2012, the Corporation reported net income of $858,000 or $0.66 per common share compared to $708,000 or $0.53 per common share for the three months ended December 31, 2011. The net interest margin for the three months ended December 31, 2012 was $2,321,000 compared to $2,454,000 for the three months ended December 31, 2011. The provision for loan losses decreased from $300,000 for the period ended December 31, 2011 to $210,000 for the period ended December 31, 2012. Total noninterest income was $1,035,000 for the three months ended December 31, 2012 compared to $824,000 for the three months ended December 31, 2011. Noninterest expense was $2,145,000 for the three months ended December 31, 2012 and $2,026,000 for the three months ended December 31, 2011. 

For the six months ended December 31, 2012, the Corporation reported net income of $1,388,000 or $1.03 per common share compared to $1,392,000 or $1.03 per common share for the six months ended December 31, 2011. The net interest margin for the six months ended December 31, 2012 was $4,687,000 compared to $4,838,000 for the six months ended December 31, 2011. The provision for loan losses decreased from $600,000 for the period ended December 31, 2011 to $420,000 for the period ended December 31, 2012. Total noninterest income was $1,683,000 for the six months ended December 31, 2012 compared to $1,697,000 for the six months ended December 31, 2011. Noninterest expense was $4,267,000 for the six months ended December 31, 2012 and $4,086,000 for the six months ended December 31, 2011.

The three and six months ended December 31, 2012 represented a return on average common equity of 11.95% and 9.43%, respectively, compared to 9.75% and 9.76% for the three and six month periods ended December 31, 2011. The three and six months ended December 31, 2012 represented a return on average assets of 1.01% and 0.83%, respectively, compared to 0.85% and 0.84% for the three and six month periods ended December 31, 2011.

The allowance for loan losses as a percentage of gross loans receivable was 1.73% at December 31, 2012 compared to 1.68% at June 30, 2012. Nonperforming assets were $8,828,000 at December 31, 2012 compared to $10,234,000 at June 30, 2012.

As of December 31, 2012, FFWC's equity-to-assets ratio was 9.73% compared to 9.34% at June 30, 2012. Total assets at December 31, 2012 were $330,711,000 compared to $329,042,000 at June 30, 2012. Shareholders' equity was $32,163,000 at December 31, 2012 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
				December 31				June 30
				2012				2012
				Unaudited
Assets
Cash and due from financial institutions				$	5,356,619			$	3,478,709
Interest-earning deposits in other financial institutions					16,046,990				13,360,765
	Cash and cash equivalents				21,403,609				16,839,474
Securities available for sale					75,082,060				83,665,458
Loans receivable, net of allowance for loan losses of $3,763,643 at
	December 31, 2012 and $3,520,110 at June 30, 2012				212,052,397				205,934,060
Loans held for sale					1,617,584				337,000
Federal Home Loan Bank stock, at cost					2,717,300				2,717,300
Accrued interest receivable					1,671,173				1,647,845
Premises and equipment, net					3,419,219				3,550,515
Mortgage servicing rights					535,881				486,617
Cash surrender value of life insurance					7,073,036				6,938,977
Goodwill					1,213,898				1,213,898
Deferred tax asset					1,597,654				2,558,162
Other assets					2,326,844				3,152,807
	Total assets			$	330,710,655			$	329,042,113
Liabilities and shareholders' equity
Deposits
	Noninterest-bearing deposits			$	26,680,542			$	20,029,966
	Interest-bearing deposits				260,622,151				262,519,228
		Total deposits			287,302,693				282,549,194
Borrowings					9,758,400				14,258,400
Accrued expenses and other liabilities					1,486,819				1,488,058
	Total liabilities				298,547,912				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 December 31, 2012, $7,336,000 liquidation preference				7,207,616				7,166,924
	Series B, 9% Fixed Rate Cumulative Perpetual Preferred Stock - 364 shares outstanding December 31, 2012, $368,000 liquidation preference				372,584				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					9,514,864				9,495,807
Retained earnings					24,877,649				23,848,467
Accumulated other comprehensive income					1,135,291				803,648
Treasury stock, at cost: 714,244 shares					(10,963,624	)			(10,963,624	)
	Total shareholders' equity				32,162,743				30,746,461
	Total liabilities and shareholders' equity			$	330,710,655			$	329,042,113

FFW Corporation
Selected Financial Information
Consolidated Statement of Income
				Three Months Ended December 31								Six Months Ended December 31
				2012				2011				2012				2011
				Unaudited				Unaudited				Unaudited				Unaudited
Interest and dividend income:
	Loans, including fees			$	2,673,449			$	2,935,840			$	5,385,865			$	5,848,527
	Taxable securities				341,728				509,567				900,158				702,679
	Tax exempt securities				312,418				132,809				444,745				601,087
	Other				4,541				7,304				8,668				9,749
		Total interest and dividend income			3,332,136				3,585,520				6,739,436				7,162,042
Interest expense:
	Deposits				903,745				998,253				1,818,524				2,054,917
	Borrowings				107,222				133,210				234,255				269,136
		Total interest expense			1,010,967				1,131,463				2,052,779				2,324,053
Net interest income					2,321,169				2,454,057				4,686,657				4,837,989
Provision for loan losses					210,000				300,000				420,000				600,000
Net interest income after provision for loan losses					2,111,169				2,154,057				4,266,657				4,237,989
Noninterest income:
	Net gains on sales of securities				186,767				144,412				179,490				308,000
	Net gains on sales of loans				331,233				199,488				508,235				293,911
	Net gains (losses) on fixed assets				-				-				-				-
	Other than temporary impairment on securities				(79,983	)			(88,000	)			(80,641	)			(88,000	)
	Commission income				196,788				168,810				394,463				324,259
	Service charges and fees				334,506				277,325				524,170				531,996
	Earnings on life insurance				67,696				70,853				134,059				142,900
	Other				(2,172	)			51,597				23,433				183,679
		Total noninterest income			1,034,835				824,485				1,683,209				1,696,745
Noninterest expense:
	Salaries and benefits				1,070,252				1,038,190				2,138,455				2,089,059
	Occupancy and equipment				243,604				248,284				499,905				496,418
	Professional				136,276				101,143				222,610				187,261
	Marketing				58,815				49,962				90,817				93,323
	Deposit insurance premium				112,375				91,662				228,180				202,916
	Regulatory assessment				37,955				33,279				74,441				68,490
	Correspondent bank charges				23,680				20,373				47,809				35,614
	Data processing				136,851				120,112				274,947				243,424
	Printing, postage and supplies				66,437				53,590				125,079				110,837
	Expense on life insurance				17,418				16,108				34,837				32,216
	Contribution expense				10,681				19,505				23,698				35,969
	Other				230,340				233,373				506,132				490,870
		Total noninterest expense			2,144,684				2,025,581				4,266,910				4,086,397
Income before income taxes					1,001,320				952,961				1,682,956				1,848,337
Income tax expense					143,742				244,871				295,342				456,666
Net income				$	857,578			$	708,090			$	1,387,614			$	1,391,671
Preferred stock dividends and discount accretion, net					117,504				117,504				235,008				235,008
Net income attributable to common shareholders				$	740,074			$	590,586			$	1,152,606			$	1,156,663

FFW Corporation
Selected Financial Information
Key Balances and Ratios
			Three Months Ended December 31								Six Months Ended December 31
			2012				2011				2012				2011
			Unaudited				Unaudited				Unaudited				Unaudited
Per common share data:
Earnings			$	0.66			$	0.53			$	1.03			$	1.03
Diluted earnings			$	0.66			$	0.53			$	1.03			$	1.03
Dividends paid			$	0.11			$	0.11			$	0.11			$	0.11
Average shares issued and outstanding				1,122,084				1,121,884				1,122,084				1,121,884
Shares outstanding end of period				1,122,084				1,121,884				1,122,084				1,121,884
Supplemental data:
Net interest margin **				2.92	%			3.15	%			2.98	%			3.12	%
Return on average assets ***				1.01	%			0.85	%			0.83	%			0.84	%
Return on average common equity ***				11.95	%			9.75	%			9.43	%			9.76	%
			December 31				June 30
			2012				2012
Nonperforming assets *			$	8,828,222			$	10,233,539
Repossessed assets			$	847,868			$	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