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FFW Corporation Announces Earnings and Special Dividend

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WABASH, Ind., April 25, 2018 (GLOBE NEWSWIRE) -- FFW Corporation (the "Corporation") (OTC:FFWC) (4/24/18 Close: $41.99), parent corporation of Crossroads Bank (the "Bank"), announced a special dividend and earnings for the quarter and year to date ending March 31, 2018.

For the three months ended March 31, 2018, the Corporation reported net income of $1,127,000 or $0.97 per common share compared to $916,000 or $0.76 per common share for the three months ended March 31, 2017.  Net interest income for the three months ended March 31, 2018 was $3,207,000 compared to $2,920,000 for the three months ended March 31, 2017.  The provision for loan losses was $88,000 for the three months ended March 31, 2018 and $50,000 for the three months ended March 31, 2017.  Total noninterest income was $867,000 for the three months ended March 31, 2018 compared to $852,000 for the three months ended March 31, 2017.  Noninterest expense was $2,632,000 for the three months ended March 31, 2018 and $2,573,000 for the three months ended March 31, 2017.   

For the nine months ended March 31, 2018, the Corporation reported net income of $3,668,000 or $3.15 per common share compared to $3,001,000 or $2.51 per common share for the nine months ended March 31, 2017.  Net interest income for the nine months ended March 31, 2018 was $9,810,000 compared to $8,688,000 for the nine months ended March 31, 2017.  The Company recognized a negative provision for loan losses of ($143,000) for the nine months ended March 31, 2018 due to a significant recovery of a previously charged-off commercial loan.  This is compared to a provision for loan losses of $293,000 for the nine months ended March 31, 2017.  Total noninterest income was $2,478,000 for the nine months ended March 31, 2018 compared to $3,463,000 for the nine months ended March 31, 2017.  Noninterest expense was $7,821,000 for the nine months ended March 31, 2018 and $8,040,000 for the nine months ended March 31, 2017.

The three and nine months ended March 31, 2018 represented a return on average common equity of 11.44% and 12.39%, respectively, compared to 9.95% and 10.79% for the three and nine month periods ended March 31, 2017.  The three and nine months ended March 31, 2018 represented a return on average assets of 1.23% and 1.31%, respectively, compared to 1.04% and 1.14%, for the three and nine month periods ended March 31, 2017.

The allowance for loan losses as a percentage of gross loans receivable was 1.34% at March 31, 2018 compared to 1.43% at June 30, 2017.  Nonperforming assets were $3,836,000 at March 31, 2018 compared to $4,594,000 at June 30, 2017.

As of March 31, 2018, FFWC's equity-to-assets ratio was 10.65% compared to 10.29% at June 30, 2017.  Total assets at March 31, 2018 were $372,104,000 compared to $366,902,000 at June 30, 2017.  Shareholders' equity was $39,633,000 at March 31, 2018 compared to $37,750,000 at June 30, 2017.  Crossroads Bank exceeds all applicable regulatory requirements to be considered "well capitalized."

The Board of Directors has declared a special cash dividend of $0.50 per share of the Company's common stock.  The dividend is payable May 31, 2018 to shareholders of record on May 17, 2018.    

"With our continued strong financial performance, it is appropriate to reward our shareholders for their support and confidence in the Company," said President and CEO Roger K. Cromer.  "Our excess capital still affords us the flexibility to strategically grow our business."

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.

FOR MORE INFORMATION  Contact:  Emily Boardman, Treasurer, at (260) 563-3185

FFW Corporation
Selected Financial Information

Consolidated Balance Sheet

 

    March 31 June 30  
      2018     2017    
    Unaudited    
Assets      
Cash and due from financial institutions $   3,952,507   $   5,101,230    
Interest-bearing deposits in other financial institutions   7,499,160     15,448,903    
  Cash and cash equivalents   11,451,667     20,550,133    
       
Securities available for sale   79,658,540     79,432,914    
Loans receivable, net of allowance for loan losses of $3,528,204 at      
  March 31, 2018 and $3,311,767 at June 30, 2017   258,535,348     244,921,657    
Loans held for sale      1,028,952       847,000    
Federal Home Loan Bank stock, at cost    1,462,500     1,462,500    
Accrued interest receivable    1,788,164     1,785,609    
Premises and equipment, net    5,978,145     5,635,850    
Mortgage servicing rights    835,265     814,426    
Cash surrender value of life insurance    8,516,339     8,306,618    
Goodwill    1,213,898     1,213,898    
Repossessed Assets   168,400     852,810    
Other assets    1,466,685     1,078,552    
  Total assets $    372,103,903   $    366,901,967    
         
Liabilities and shareholders' equity      
Deposits      
  Noninterest-bearing  $   30,488,100   $   29,173,951    
  Interest-bearing   294,657,946     293,300,914    
    Total deposits    325,146,046     322,474,865    
         
Borrowings   4,000,000     4,338,400    
Accrued expenses and other liabilities   3,325,355     2,338,360    
  Total liabilities   332,471,401     329,151,625    
         
Shareholders' equity      
Common stock, $.01 par; 2,000,000 shares authorized;      
  Issued: 1,836,328; outstanding: 1,165,980 - March 31, 2018 and 1,160,084 - June 30, 2017   18,363     18,363    
Additional paid-in capital   9,583,707     9,552,881    
Retained earnings    39,982,041     37,174,079    
Accumulated other comprehensive income   338,311     1,385,443    
Treasury stock, at cost: 670,348 shares at March 31, 2018 and 676,244 shares at June 30, 2017   (10,289,920 )  
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