WABASH, Ind., Jan. 23, 2019 (GLOBE NEWSWIRE) -- FFW Corporation (the “Corporation”) (OTC PINK: FFWC) (1/22/19 Close: $39.35), parent corporation of Crossroads Bank (the “Bank”), announced earnings for the three and six months ended December 31, 2018.

For the three months ended December 31, 2018, the Corporation reported net income of $1,148,000 or $1.00 per common share compared to $1,121,000 or $0.96 per common share for the three months ended December 31, 2017.  Net interest income for the three months ended December 31, 2018 was $3,297,000 compared to $3,243,000 for the three months ended December 31, 2017.  The provision for loan losses was $56,000 for the three months ended December 31, 2018 and $88,000 for the three months ended December 31, 2017.  Total noninterest income was $814,000 for the three months ended December 31, 2018 compared to $823,000 for the three months ended December 31, 2017.  Noninterest expense was $2,797,000 for the three months ended December 31, 2018 and $2,616,000 for the three months ended December 31, 2017.    

For the six months ended December 31, 2018, the Corporation reported net income of $2,253,000 or $1.95 per common share compared to $2,542,000 or $2.18 per common share for the six months ended December 31, 2017.  Net interest income for the six months ended December 31, 2018 was $6,611,000 compared to $6,603,000 for the six months ended December 31, 2017.  The Company recognized a provision for loan losses of $131,000 for the six months ended December 31, 2018.  This is compared to a negative provision for loan losses of ($231,000) for the six months ended December 31, 2017.  The negative provision was due to a significant recovery of a previously charged-off commercial loan.  Total noninterest income was $1,681,000 for the six months ended December 31, 2018 compared to $1,610,000 for the six months ended December 31, 2017.  Noninterest expense was $5,557,000 for the six months ended December 31, 2018 and $5,189,000 for the six months ended December 31, 2017.

The three and six months ended December 31, 2018 represented a return on average common equity of 11.24% and 11.03%, respectively, compared to 11.25% and 12.87% for the three and six month periods ended December 31, 2017.  The three and six months ended December 31, 2018 represented a return on average assets of 1.13% and 1.13%, respectively, compared to 1.17% and 1.34%, for the three and six month periods ended December 31, 2017.

The allowance for loan losses as a percentage of gross loans receivable was 1.43% at December 31, 2018 compared to 1.40% at June 30, 2018.  Nonperforming assets were $3,544,000 at December 31, 2018 compared to $3,412,000 at June 30, 2018.

As of December 31, 2018, FFWC’s equity-to-assets ratio was 10.41% compared to 10.54% at June 30, 2018.  Total assets at December 31, 2018 were $398,200,000 compared to $379,790,000 at June 30, 2018.  Shareholders’ equity was $41,447,000 at December 31, 2018 compared to $40,011,000 at June 30, 2018.  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 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 Fishers, 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
		2018			2018
		Unaudited
Assets
Cash and due from financial institutions		$	9,871,066		$	6,288,268
Interest-bearing deposits in other financial institutions			23,483,090			11,741,584
	Cash and cash equivalents		33,354,156			18,029,852
Securities available for sale			76,562,528			78,489,583
Loans receivable, net of allowance for loan losses of $3,865,441 at
	December 31, 2018 and $3,716,543 at June 30, 2018		266,464,643			260,714,092
Loans held for sale			-			938,686
Federal Home Loan Bank stock, at cost			1,462,500			1,462,500
Accrued interest receivable			2,148,686			1,962,831
Premises and equipment, net			5,682,547			5,825,455
Mortgage servicing rights			853,075			823,965
Cash surrender value of life insurance			8,727,027			8,585,667
Goodwill			1,213,898			1,213,898
Repossessed Assets			229,980			167,000
Other assets			1,500,690			1,576,057
	Total assets	$	398,199,730		$	379,789,586
Liabilities and shareholders' equity
Deposits
	Noninterest-bearing	$	34,878,246		$	30,689,658
	Interest-bearing		316,814,461			304,215,798
	Total deposits		351,692,707			334,905,456
Borrowings			2,000,000			2,000,000
Accrued expenses and other liabilities			3,059,623			2,872,683
	Total liabilities		356,752,330			339,778,139
Shareholders' equity
Common stock, $.01 par; 2,000,000 shares authorized;
	Issued: 1,836,328; outstanding: 1,149,480 - December 31, 2018 and 1,165,980 - June 30, 2018		18,363			18,363
Additional paid-in capital			9,706,530			9,624,150
Retained earnings			42,083,524			40,313,968
Accumulated other comprehensive income			632,578			344,886
Treasury stock, at cost: 686,848 shares at December 31, 2018 and 670,348 shares at June 30, 2018			(10,993,595	)		(10,289,920	)
	Total shareholders' equity		41,447,400			40,011,447
	Total liabilities and shareholders' equity	$	398,199,730		$	379,789,586

FFW Corporation
Selected Financial Information
Consolidated Statement of Income

			Three Months Ended December 31				Six Months Ended December 31
			2018		2017		2018		2017
			Unaudited		Unaudited		Unaudited		Unaudited
Interest and dividend income:
	Loans, including fees		$	3,306,392	$	3,050,105	$	6,621,629	$	6,210,121
	Taxable securities			346,492		287,146		663,645		576,697
	Tax exempt securities			300,967		333,801		610,321		654,001
	Other			130,703		62,781		198,228		121,373
		Total interest and dividend income		4,084,554		3,733,833		8,093,823		7,562,192
Interest expense:
	Deposits			778,315		475,094		1,465,130		925,703
	Borrowings			8,740		16,077		17,702		33,335
		Total interest expense		787,055		491,171		1,482,832		959,038
Net interest income				3,297,499		3,242,662		6,610,991		6,603,154
Provision for loan losses				56,118		88,000		131,118		(231,000	)
Net interest income after provision for
	loan losses			3,241,381		3,154,662		6,479,873		6,834,154
Noninterest income:
	Net gains on sales of securities			-		-		18,111		-
	Net gains on sales of loans			63,102		85,760		192,737		198,433
	Commission income			247,220		230,167		488,470		458,520
	Service charges and fees			248,561		203,357		470,024		413,400
	Earnings on life insurance			70,397		69,341		141,360		141,205
	Other			185,131		234,454		370,018		398,789
		Total noninterest income		814,411		823,079		1,680,720		1,610,347
Noninterest expense:
	Salaries and benefits			1,565,753		1,448,249		3,130,861		2,885,875
	Occupancy and equipment			303,964		319,923		624,875		608,677
	Professional			96,657		101,857		190,381		204,080
	Marketing			95,565		102,542		194,812		199,403
	Deposit insurance premium			33,000		32,091		61,542		65,669
	Regulatory assessment			8,099		5,656		16,198		11,313
	Correspondent bank charges			20,250		18,453		39,190		33,799
	Data processing			231,563		177,015		457,671		351,821
	Printing, postage and supplies			67,474		61,796		113,912		122,579
	Expense on life insurance			18,730		-		37,460		(3,612	)
	Contribution expense			4,735		4,050		11,552		44,950
	Expense on REO			3,157		32,168		8,822		48,060
	Other			348,161		311,888		669,693		616,294
		Total noninterest expense		2,797,108		2,615,688		5,556,969		5,188,908
Income before income taxes				1,258,684		1,362,053		2,603,624		3,255,593
Income tax expense				110,941		240,569		351,098		713,957
Net income			$	1,147,743	$	1,121,484	$	2,252,526	$	2,541,636

FFW Corporation
Selected Financial Information
Key Balances and Ratios

					Three Months Ended December 31						Six Months Ended December 31
					2018			2017			2018			2017
					Unaudited			Unaudited			Unaudited			Unaudited
Per common share data:
Earnings					$	1.00		$	0.96		$	1.95		$	2.18
Diluted earnings					$	1.00		$	0.96		$	1.95		$	2.18
Dividends paid					$	0.21		$	0.19		$	0.42		$	0.38
Average shares issued and outstanding						1,149,541			1,165,980			1,154,165			1,165,980
Shares outstanding end of period						1,149,480			1,165,980			1,149,480			1,165,980
Supplemental data:
Net interest margin **						3.45	%		3.63	%		3.53	%		3.74	%
Return on average assets ***						1.13	%		1.17	%		1.13	%		1.34	%
Return on average common equity ***						11.24	%		11.25	%		11.03	%		12.87	%
					December 31			June 30
					2018			2018
Nonperforming assets *					$	3,544,326		$	3,412,108
Repossessed assets					$	229,980		$	167,000
*	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     

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