FFW Corporation Announces First Quarter Earnings and Stock Repurchase Program
WABASH, Ind., Oct. 25, 2017 (GLOBE NEWSWIRE) -- FFW Corporation (the “Corporation”) (OTC PINK:FFWC) (10/24/17 Close: $38.50), parent corporation of Crossroads Bank (the “Bank”), announced first quarter earnings and stock repurchase program.
For the three months ended September 30, 2017, the Corporation reported net income of $1,420,000 or $1.22 per common share compared to $1,038,000 or $0.87 per common share for the three months ended September 30, 2016. Net interest income for the three months ended September 30, 2017 was $3,360,000 compared to $2,906,000 for the three months ended September 30, 2016. The Company recognized a negative provision for loan losses of ($319,000) for the three months ended September 30, 2017 due to a significant recovery of a previously charged-off commercial loan. This is compared to a provision for loan losses of $193,000 for the three months ended September 30, 2016. Total noninterest income was $787,000 for the three months ended September 30, 2017 compared to $1,411,000 for the three months ended September 30, 2016. Noninterest expense was $2,573,000 for the three months ended September 30, 2017 and $2,794,000 for the three months ended September 30, 2016.
The three months ended September 30, 2017 represented a return on average common equity of 14.53% compared to 11.15% for the three month period ended September 30, 2016. The three months ended September 30, 2017 represented a return on average assets of 1.52% compared to 1.20% for the three month period ended September 30, 2016.
The allowance for loan losses as a percentage of gross loans receivable was 1.37% at September 30, 2017 compared to 1.43% at June 30, 2017. Nonperforming assets were $4,520,000 at September 30, 2017 compared to $4,594,000 at June 30, 2017.
As of September 30, 2017, FFWC’s equity-to-assets ratio was 10.45% compared to 10.29% at June 30, 2017. Total assets at September 30, 2017 were $372,343,000 compared to $366,902,000 at June 30, 2017. Shareholders’ equity was $38,905,000 at September 30, 2017 compared to $37,750,000 at June 30, 2017. Crossroads Bank exceeds all applicable regulatory requirements to be considered “well capitalized.”
The Corporation also announced today that its Board of Directors has approved the repurchase, of up to 10% of the Corporation's outstanding shares of common stock, without par value ("Common Stock"), or 116,598 of such shares. These purchases may be made from time to time on the open market, and the actual number and value of shares which are repurchased will be at the discretion of management. The Corporation may suspend or discontinue repurchases at any time. Repurchases may begin as early as November 1, 2017.
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 five Indiana banking centers located in Columbia City, North Manchester, Peru, 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 | ||||||||
| September 30 | June 30 | |||||||
| 2017 | 2017 | |||||||
| Unaudited | ||||||||
| Assets | ||||||||
| Cash and due from financial institutions | $ | 4,376,213 | $ | 5,101,230 | ||||
| Interest-bearing deposits in other financial institutions | 18,282,486 | 15,448,903 | ||||||
| Cash and cash equivalents | 22,658,699 | 20,550,133 | ||||||
| Securities available for sale | 80,108,055 | 79,432,914 | ||||||
| Loans receivable, net of allowance for loan losses of $3,439,945 at | ||||||||
| September 30, 2017 and $3,311,767 at June 30, 2017 | 247,851,551 | 244,921,657 | ||||||
| Loans held for sale | 55,000 | 847,000 | ||||||
| Federal Home Loan Bank stock, at cost | 1,462,500 | 1,462,500 | ||||||
| Accrued interest receivable | 1,907,959 | 1,785,609 | ||||||
| Premises and equipment, net | 6,091,451 | 5,635,850 | ||||||
| Mortgage servicing rights | 816,873 | 814,426 | ||||||
| Cash surrender value of life insurance | 8,378,482 | 8,306,618 | ||||||
| Goodwill | 1,213,898 | 1,213,898 | ||||||
| Repossessed Assets | 805,710 | 852,810 | ||||||
| Other assets | 992,763 | 1,078,552 | ||||||
| Total assets | $ | 372,342,941 | $ | 366,901,967 | ||||
| Liabilities and shareholders' equity | ||||||||
| Deposits | ||||||||
| Noninterest-bearing | $ | 29,497,884 | $ | 29,173,951 | ||||
| Interest-bearing | 296,725,379 | 293,300,914 | ||||||
| Total deposits | 326,223,263 | 322,474,865 | ||||||
| Borrowings | 4,169,200 | 4,338,400 | ||||||
| Accrued expenses and other liabilities | 3,045,597 | 2,338,360 | ||||||
| Total liabilities | 333,438,060 | 329,151,625 | ||||||
| Shareholders' equity | ||||||||
| Common stock, $.01 par; 2,000,000 shares authorized; | ||||||||
| Issued: 1,836,328; outstanding: 1,165,980 - September 30, 2017 and 1,160,084 - June 30, 2017 | 18,363 | 18,363 | ||||||
| Additional paid-in capital | 9,502,821 | 9,552,881 | ||||||
| Retained earnings | 38,372,693 | 37,174,079 | ||||||
| Accumulated other comprehensive income | 1,300,924 | 1,385,443 | ||||||
| Treasury stock, at cost: 670,348 shares at September 30, 2017 and 676,244 shares at June 30, 2017 | (10,289,920 | ) | (10,380,424 | ) | ||||
| Total shareholders' equity | 38,904,881 | 37,750,342 | ||||||
| Total liabilities and shareholders' equity | $ | 372,342,941 | $ | 366,901,967 | ||||
| FFW Corporation | ||||||||
| Selected Financial Information | ||||||||
| Consolidated Statement of Income | ||||||||
| Three Months Ended September 30 | ||||||||
| 2017 | 2016 | |||||||
| Unaudited | Unaudited | |||||||
| Interest and dividend income: | ||||||||
| Loans, including fees | $ | 3,160,016 | $ | 2,732,027 | ||||
| Taxable securities | 289,551 | 309,390 | ||||||
| Tax exempt securities | 320,200 | 256,333 | ||||||
| Other | 58,592 | 7,440 | ||||||
| Total interest and dividend income | 3,828,359 | 3,305,190 | ||||||
| Interest expense: | ||||||||
| Deposits | 450,609 | 360,932 | ||||||
| Borrowings | 17,258 | 37,829 | ||||||
| Total interest expense | 467,867 | 398,761 | ||||||
| Net interest income | 3,360,492 | 2,906,429 | ||||||
| Provision for loan losses | (319,000 | ) | 193,000 | |||||
| Net interest income after provision for | ||||||||
| loan losses | 3,679,492 | 2,713,429 | ||||||
| Noninterest income: | ||||||||
| Net gains on sales of securities | - | 120,409 | ||||||
| Net gains on sales of loans | 112,673 | 197,307 | ||||||
| Net gains (losses) on fixed assets | - | (1,712 | ) | |||||
| Commission income | 228,353 | 241,975 | ||||||
| Service charges and fees | 210,043 | 214,735 | ||||||
| Earnings on life insurance | 71,864 | 70,704 | ||||||
| Income from REO | - | 427,315 | ||||||
| Other | 164,335 | 140,652 | ||||||
| Total noninterest income | 787,268 | 1,411,385 | ||||||
| Noninterest expense: | ||||||||
| Salaries and benefits | 1,437,626 | 1,310,118 | ||||||
| Occupancy and equipment | 288,754 | 277,605 | ||||||
| Professional | 102,223 | 147,646 | ||||||
| Marketing | 96,861 | 77,264 | ||||||
| Deposit insurance premium | 33,578 | 60,750 | ||||||
| Regulatory assessment | 5,657 | 7,312 | ||||||
| Correspondent bank charges | 15,346 | 15,646 | ||||||
| Data processing | 174,806 | 125,644 | ||||||
| Printing, postage and supplies | 60,783 | 68,210 | ||||||
| Expense on life insurance | (3,612 | ) | 23,622 | |||||
| Contribution expense | 40,900 | 15,715 | ||||||
| Expense on REO | 15,892 | 380,960 | ||||||
| Other | 304,406 | 283,951 | ||||||
| Total noninterest expense | 2,573,220 | 2,794,443 | ||||||
| Income before income taxes | 1,893,540 | 1,330,371 | ||||||
| Income tax expense | 473,388 | 292,675 | ||||||
| Net income | $ | 1,420,152 | $ | 1,037,696 | ||||
| Preferred stock dividends | - | 28,125 | ||||||
| Net income attributable to common shareholders | $ | 1,420,152 | $ | 1,009,571 | ||||
| FFW Corporation | |||||||
| Selected Financial Information | |||||||
| Key Balances and Ratios | |||||||
| Three Months Ended September 30 | |||||||
| 2017 | 2016 | ||||||
| Unaudited | Unaudited | ||||||
| Per common share data: | |||||||
| Earnings | $1.22 | $0.87 | |||||
| Diluted earnings | $1.22 | $0.87 | |||||
| Dividends paid | $0.19 | $0.17 | |||||
| Average shares issued and outstanding | 1,165,980 | 1,158,475 | |||||
| Shares outstanding end of period | 1,165,980 | 1,161,084 | |||||
| Supplemental data: | |||||||
| Net interest margin ** | 3.85 | % | 3.63 | % | |||
| Return on average assets *** | 1.52 | % | 1.20 | % | |||
| Return on average common equity *** | 14.53 | % | 11.15 | % | |||
| September 30 | June 30 | ||||||
| 2017 | 2017 | ||||||
| Nonperforming assets * | $4,519,500 | $4,594,296 | |||||
| Repossessed assets | $805,710 | $852,810 | |||||
| * | 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: Emily Boardman, Treasurer, at (260) 563-3185
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