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FFW Corporation Announces Earnings for the Quarter and Year to Date Ended December 31, 2016

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WABASH, Ind., Jan. 25, 2017 (GLOBE NEWSWIRE) -- FFW Corporation (the "Corporation") (OTC PINK: FFWC) (1/24/17 Close: $32.00), parent corporation of Crossroads Bank (the "Bank"), announced earnings for the three and six months ended December 31, 2016.

For the three months ended December 31, 2016, the Corporation reported net income of $1,048,000 or $0.88 per common share compared to $916,000 or $0.76 per common share for the three months ended December 31, 2015.  Net interest income for the three months ended December 31, 2016 was $2,861,000 compared to $2,856,000 for the three months ended December 31, 2015.  The provision for loan losses was $50,000 for the three months ended December 31, 2016 and $40,000 for the three months ended December 31, 2015.  Total noninterest income was $1,200,000 for the three months ended December 31, 2016 compared to $1,027,000 for the three months ended December 31, 2015.  Noninterest expense was $2,672,000 for the three months ended December 31, 2016 and $2,678,000 for the three months ended December 31, 2015.   

For the six months ended December 31, 2016, the Corporation reported net income of $2,085,000 or $1.75 per common share compared to $1,866,000 or $1.56 per common share for the six months ended December 31, 2015.  Net interest income for the six months ended December 31, 2016 was $5,768,000 compared to $5,747,000 for the six months ended December 31, 2015.  The provision for loan losses was $243,000 for the six months ended December 31, 2016 and $120,000 for the six months ended December 31, 2015.  Total noninterest income was $2,611,000 for the six months ended December 31, 2016 compared to $2,194,000 for the six months ended December 31, 2015.  Noninterest expense was $5,466,000 for the six months ended December 31, 2016 and $5,439,000 for the six months ended December 31, 2015.

The three and six months ended December 31, 2016 represented a return on average common equity of 11.25% and 11.20%, respectively, compared to 10.73% and 11.13% for the three and six month periods ended December 31, 2015.  The three and six months ended December 31, 2016 represented a return on average assets of 1.18% and 1.19%, respectively, compared to 1.08% and 1.11%, for the three and six month periods ended December 31, 2015.

The allowance for loan losses as a percentage of gross loans receivable was 1.47% at December 31, 2016 compared to 1.52% at June 30, 2016.  Nonperforming assets were $5,200,000 at December 31, 2016 compared to $6,700,000 at June 30, 2016.

As of December 31, 2016, FFWC's equity-to-assets ratio was 10.66% compared to 10.98% at June 30, 2016.  Total assets at December 31, 2016 were $351,831,000 compared to $340,987,000 at June 30, 2016.  Shareholders' equity was $37,519,000 at December 31, 2016 compared to $37,449,000 at June 30, 2016.  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 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.

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 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.

 
FFW Corporation
Selected Financial Information
 
Consolidated Balance Sheet
       
    December 31 June 30
      2016     2016  
    Unaudited  
Assets    
Cash and due from financial institutions $ 4,995,102   $ 4,031,546  
Interest-bearing deposits in other financial institutions   15,464,553     6,188,392  
  Cash and cash equivalents   20,459,655     10,219,938  
     
Securities available for sale   78,333,042     79,011,265  
Loans receivable, net of allowance for loan losses of $3,448,882 at    
  December 31, 2016 and $3,557,769 at June 30, 2016   229,858,809     229,454,626  
Loans held for sale   1,694,382     854,375  
Federal Home Loan Bank stock, at cost   1,462,500     1,462,500  
Accrued interest receivable   1,769,497     1,760,537  
Premises and equipment, net   5,696,299     5,193,270  
Mortgage servicing rights   801,493     660,784  
Cash surrender value of life insurance   8,164,868     8,022,990  
Goodwill   1,213,898     1,213,898  
Repossessed Assets   572,455     2,062,708  
Other assets   1,804,157     1,070,211  
  Total assets $ 351,831,055   $ 340,987,102  
       
Liabilities and shareholders' equity    
Deposits    
  Noninterest-bearing $ 30,712,691   $ 25,032,689  
  Interest-bearing   275,050,508     254,123,833  
  Total deposits   305,763,199     279,156,522  
       
Borrowings   6,518,400     21,698,400  
Accrued expenses and other liabilities   2,030,430     2,682,835  
  Total liabilities   314,312,029     303,537,757  
       
Shareholders' equity    
Preferred stock, $.01 par; $1,000 liquidation value per share, 500,000 shares authorized;    
  Series C, 5% Fixed Rate Cumulative Perpetual Preferred Stock - 2,250 shares outstanding December 31, 2016 and June 30, 2016, $2,264,000 liquidation preference at December 31, 2016 and June 30, 2016   2,250,000     2,250,000  
Common stock, $.01 par; 2,000,000 shares authorized;    
  Issued: 1,836,328; outstanding: 1,160,084 - December 31, 2016 and 1,156,084 - June 30, 2016   18,363     18,363  
Additional paid-in capital   9,481,571     9,358,395  
Retained earnings   35,687,697     34,053,094  
Accumulated other comprehensive income   461,819     2,211,217  
Treasury stock, at cost: 676,244 shares at December 31, 2016 and 680,244 shares at June 30, 2016   (10,380,424 )   (10,441,724 )
  Total shareholders' equity   37,519,026     37,449,345  
   
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