Questions? +1 (202) 335-3939 Login
Trusted News Since 1995
A service for business professionals · Friday, March 29, 2024 · 699,699,716 Articles · 3+ Million Readers

FFW Corporation Announces Earnings and Special Dividend

WABASH, Ind., April 25, 2018 (GLOBE NEWSWIRE) -- FFW Corporation (the “Corporation”) (OTC PINK: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 )   (10,380,424 )  
  Total shareholders' equity    39,632,502     37,750,342    
         
  Total liabilities and shareholders' equity  $    372,103,903   $    366,901,967    
         


FFW Corporation

Selected Financial Information

Consolidated Statement of Income

      Three Months Ended March 31 Nine Months Ended March 31
        2018   2017   2018     2017  
      Unaudited Unaudited Unaudited Unaudited
Interest and dividend income:        
  Loans, including fees $   3,018,370 $   2,695,731 $   9,228,491   $   8,124,376  
  Taxable securities     308,325     310,051     885,022       925,478  
  Tax exempt securities     320,526     292,676     974,527       818,422  
  Other     37,173     45,705     158,546       62,152  
    Total interest and dividend income     3,684,394     3,344,163     11,246,586       9,930,428  
             
Interest expense:        
  Deposits     460,234     401,748     1,385,937       1,157,843  
  Borrowings     17,315     22,438     50,650       84,701  
    Total interest expense     477,549     424,186     1,436,587       1,242,544  
             
Net interest income     3,206,845     2,919,977     9,809,999       8,687,884  
             
Provision for loan losses     88,000     50,000     (143,000 )     293,000  
             
Net interest income after provision for         
  loan losses     3,118,845     2,869,977     9,952,999       8,394,884  
             
Noninterest income:        
  Net gains on sales of securities     -      -      -        120,409  
  Net gains on sales of loans     73,485     112,645     271,918       393,197  
  Net gains (losses) on fixed assets     -      -      -        (1,712 )
  Commission income     250,563     266,903     709,083       744,241  
  Service charges and fees     242,920     205,127     656,320       722,797  
  Earnings on life insurance     68,516     70,459     209,721       212,337  
  Income from REO     -      -      -        647,115  
  Other     231,887     197,096     630,676       624,966  
    Total noninterest income      867,371     852,230     2,477,718       3,463,350  
             
Noninterest expense:        
  Salaries and benefits     1,450,851     1,390,612     4,336,726       4,030,111  
  Occupancy and equipment     345,355     316,206     954,032       892,095  
  Professional     102,795     148,464     306,875       400,821  
  Marketing     94,176     88,503     293,579       276,874  
  Deposit insurance premium     33,881     31,521     99,550       98,264  
  Regulatory assessment     6,164     7,735     17,477       22,214  
  Correspondent bank charges     17,571     22,301     51,370       47,571  
  Data processing     174,979     129,748     526,800       381,948  
  Printing, postage and supplies     75,114     81,231     197,693       207,744  
  Expense on life insurance     -      23,424     (3,612 )     70,535  
  Contribution expense     5,190     4,620     50,140       26,940  
  Expense on REO     30,301     25,686     78,361       703,615  
  Other     295,940     303,256     912,234       881,023  
    Total noninterest expense     2,632,317     2,573,307     7,821,225       8,039,755  
             
Income before income taxes     1,353,899     1,148,900     4,609,492       3,818,479  
             
Income tax expense      227,213     233,139     941,170       817,267  
             
Net income  $    1,126,686 $    915,761 $    3,668,322   $    3,001,212  
Preferred stock dividends      -      29,563     -        85,813  
Net income attributable to common shareholders $    1,126,686 $    886,198 $    3,668,322   $    2,915,399  


FFW Corporation

Selected Financial Information

Key Balances and Ratios

    Three Months Ended March 31 Nine Months Ended March 31
      2018     2017     2018     2017  
    Unaudited Unaudited Unaudited Unaudited
Per common share data:        
Earnings $ 0.97   $ 0.76   $ 3.15   $ 2.51  
Diluted earnings $ 0.97   $ 0.76   $ 3.15   $ 2.51  
Dividends paid $ 0.19   $ 0.17   $ 0.57   $ 0.51  
Average shares issued and outstanding   1,165,980     1,160,084     1,165,980     1,159,617  
Shares outstanding end of period   1,165,980     1,160,084     1,165,980     1,160,084  
           
Supplemental data:        
Net interest margin **   3.74 %   3.56 %   3.74 %   3.56 %
Return on average assets ***   1.23 %   1.04 %   1.31 %   1.14 %
Return on average common equity ***   11.44 %   9.95 %   12.39 %   10.79 %
           
    March 31 June 30    
      2018     2017      
Nonperforming assets * $ 3,836,310   $ 4,594,296      
Repossessed assets $ 168,400   $ 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        


Powered by EIN News


EIN Presswire does not exercise editorial control over third-party content provided, uploaded, published, or distributed by users of EIN Presswire. We are a distributor, not a publisher, of 3rd party content. Such content may contain the views, opinions, statements, offers, and other material of the respective users, suppliers, participants, or authors.

Submit your press release