WABASH, Ind., Oct. 28, 2020 (GLOBE NEWSWIRE) -- FFW Corporation (the “Corporation”) (OTC PINK: FFWC) (10/27/20 Close: $39.00), parent corporation of Crossroads Bank (the “Bank”), announced earnings for the quarter ended September 30, 2020.

For the three months ended September 30, 2020, the Corporation reported net income of $1,748,000 or $1.53 per common share compared to $1,236,000 or $1.08 per common share for the three months ended September 30, 2019. Net interest income for the three months ended September 30, 2020 was $3,706,000 compared to $3,491,000 for the three months ended September 30, 2019. The provision for loan losses was $165,000 for the three months ended September 30, 2020 and $75,000 for the three months ended September 30, 2019. Total noninterest income was $1,982,000 for the three months ended September 30, 2020 compared to $1,011,000 for the three months ended September 30, 2019. Noninterest expense was $3,426,000 for the three months ended September 30, 2020 and $2,990,000 for the three months ended September 30, 2019.

The three months ended September 30, 2020 represented a return on average common equity of 13.71% compared to 10.77% for the three months ended September 30, 2019. The three months ended September 30, 2020 represented a return on average assets of 1.48% compared to 1.18% for the three months ended September 30, 2019.

The allowance for loan losses as a percentage of gross loans receivable was 1.29% at September 30, 2020 compared to 1.29% at June 30, 2020. Nonperforming assets were $3,175,000 at September 30, 2020 compared to $3,551,000 at June 30, 2020.

As of September 30, 2020, FFWC’s equity-to-assets ratio was 10.83% compared to 10.66% at June 30, 2020. Total assets at September 30, 2020 were $466,214,000 compared to $461,724,000 at June 30, 2020. Shareholders’ equity was $50,474,000 at September 30, 2020 compared to $49,198,000 at June 30, 2020. 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 six Indiana banking centers located in Columbia City, North Manchester, Peru, South Whitley, Syracuse and Warsaw. The Bank also provides leasing services at each of its banking centers. 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

  September 30
 June 30
   2020   2020 
   Unaudited   
Assets  
Cash and due from financial institutions$4,865,661  $6,084,611 
Interest-bearing deposits in other financial institutions 26,909,857   30,077,626 
 Cash and cash equivalents 31,775,518   36,162,237 
   
Securities available for sale 100,178,257   86,147,475 
Loans receivable, net of allowance for loan losses of $4,036,116 at  
September 30, 2020 and $4,098,026 at June 30, 2020 304,558,569   303,102,891 
Loans held for sale 4,107,705   10,876,733 
Federal Home Loan Bank stock, at cost 1,462,500   1,462,500 
Accrued interest receivable 2,339,030   2,281,588 
Premises and equipment, net 9,376,500   9,338,832 
Mortgage servicing rights 784,574   731,190 
Cash surrender value of life insurance 9,233,735   9,159,293 
Goodwill 1,213,898   1,213,898 
Repossessed Assets 179,184   145,782 
Other assets 1,004,677   1,101,841 
 Total assets$ 466,214,147  $ 461,724,260 
    
Liabilities and shareholders' equity  
Deposits  
 Noninterest-bearing$46,598,906  $42,014,196 
 Interest-bearing 365,015,219   366,527,945 
 Total deposits 411,614,125   408,542,141 
    
Accrued expenses and other liabilities 4,126,072   3,984,019 
 Total liabilities 415,740,197   412,526,160 
    
Shareholders' equity  
Common stock, $.01 par; 2,000,000 shares authorized;  
 Issued: 1,836,328; outstanding: 1,142,690 - September 30, 2020 and 1,129,394 - June 30, 2020 18,363   18,363 
Additional paid-in capital 9,653,604   9,826,124 
Retained earnings 49,122,033   47,660,175 
Accumulated other comprehensive income 3,396,740   3,634,798 
Treasury stock, at cost: 693,638 shares at September 30, 2020 and 706,934 shares at June 30, 2020 (11,716,790)  (11,941,360)
 Total shareholders' equity 50,473,950   49,198,100 
    
 Total liabilities and shareholders' equity $ 466,214,147  $ 461,724,260 
         

 


FFW Corporation
Selected Financial Information

Consolidated Statement of Income

   Three Months Ended September 30
    2020   2019 
    Unaudited  Unaudited
Interest and dividend income:  
 Loans, including fees$3,604,316  $3,703,229 
 Taxable securities 333,193   392,816 
 Tax exempt securities 372,271   313,594 
 Other 7,781   106,981 
  Total interest and dividend income 4,317,561   4,516,620 
     
Interest expense:  
 Deposits 611,385   1,015,660 
 Borrowings -   9,840 
  Total interest expense 611,385   1,025,500 
     
Net interest income 3,706,176   3,491,120 
     
Provision for loan losses 165,000   75,000 
     
Net interest income after provision for   
 loan losses 3,541,176   3,416,120 
     
Noninterest income:  
 Net gains on sales of securities 98,467   - 
 Net gains on sales of loans 1,195,486   166,585 
 Net gains (losses) on sales of REO (6,535)  - 
 Commission income 290,078   312,606 
 Service charges and fees 95,419   226,690 
 Earnings on life insurance 74,441   71,319 
 Other 234,343   234,187 
  Total noninterest income 1,981,699   1,011,387 
     
Noninterest expense:  
 Salaries and benefits 1,761,064   1,579,123 
 Occupancy and equipment 343,094   295,692 
 Professional 60,586   140,339 
 Marketing 113,941   108,184 
 Deposit insurance premium 33,000   33,000 
 Regulatory assessment 9,301   8,953 
 Correspondent bank charges 17,517   20,330 
 Data processing 420,582   316,938 
 Printing, postage and supplies 95,412   68,519 
 Expense on life insurance 15,849   14,895 
 Contribution expense 15,388   9,546 
 Expense on REO 4,781   3,524 
 Other 535,313   391,426 
  Total noninterest expense 3,425,828   2,990,469 
     
Income before income taxes 2,097,047   1,437,038 
     
Income tax expense 349,517   201,246 
     
Net income $ 1,747,530  $ 1,235,792 
        

 

FFW Corporation
Selected Financial Information

Key Balances and Ratios

  Three Months Ended September 30
   2020   2019 
   Unaudited Unaudited
Per common share data:  
Earnings$1.53  $1.08 
Diluted earnings$1.53  $1.08 
Dividends paid$0.25  $0.23 
Average shares issued and outstanding 1,142,690   1,144,435 
Shares outstanding end of period 1,142,690   1,137,783 
    
Supplemental data:  
Net interest margin ** 3.38%  3.56%
Return on average assets *** 1.48%  1.18%
Return on average common equity *** 13.71%  10.77%
    
  September 30
 June 30
   2020   2020 
Nonperforming assets *$3,174,865  $3,550,611 
Repossessed assets$179,184  $145,782 
    
*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

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