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FFW Corporation Announces First Quarter Earnings and Stock Repurchase Program

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WABASH, Ind., Oct. 25, 2017 (GLOBE NEWSWIRE) -- FFW Corporation (the "Corporation") (OTC: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 
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