WABASH, Ind., Jan. 27, 2021 (GLOBE NEWSWIRE) -- FFW Corporation (the “Corporation”) (OTC PINK: FFWC) (1/26/2021 Close: $41.00), parent corporation of Crossroads Bank (the “Bank”), announced earnings for the quarter and year to date ended December 31, 2020.

For the three months ended December 31, 2020, the Corporation reported net income of $1,774,000 or $1.55 per common share compared to $1,267,000 or $1.11 per common share for the three months ended December 31, 2019. Net interest income for the three months ended December 31, 2020 was $3,727,000 compared to $3,410,000 for the three months ended December 31, 2019. The provision for loan losses was $165,000 for the three months ended December 31, 2020 and $50,000 for the three months ended December 31, 2019. Total noninterest income was $1,814,000 for the three months ended December 31, 2020 compared to $1,045,000 for the three months ended December 31, 2019. Noninterest expense was $3,260,000 for the three months ended December 31, 2020 and $2,938,000 for the three months ended December 31, 2019.

For the six months ended December 31, 2020, the Corporation reported net income of $3,521,000 or $3.08 per common share compared to $2,503,000 or $2.19 per common share for the six months ended December 31, 2019. Net interest income for the six months ended December 31, 2020 was $7,434,000 compared to $6,901,000 for the six months ended December 31, 2019. The Company recognized a provision for loan losses of $330,000 for the six months ended December 31, 2020 and $125,000 for the six months ended December 31, 2019. Total noninterest income was $3,795,000 for the six months ended December 31, 2020 compared to $2,056,000 for the six months ended December 31, 2019. Noninterest expense was $6,686,000 for the six months ended December 31, 2020 and $5,928,000 for the six months ended December 31, 2019.

The three and six months ended December 31, 2020 represented a return on average common equity of 13.66% and 13.69%, respectively, compared to 10.89% and 10.83% for the three and six month periods ended December 31, 2019. The three and six months ended December 31, 2020 represented a return on average assets of 1.46% and 1.47%, respectively, compared to 1.20% and 1.19%, for the three and six month periods ended December 31, 2019.

The allowance for loan losses as a percentage of gross loans receivable was 1.36% at December 31, 2020 compared to 1.29% at June 30, 2020. Nonperforming assets were $3,629,000 at December 31, 2020 compared to $3,551,000 at June 30, 2020.

As of December 31, 2020, FFWC’s equity-to-assets ratio was 11.18% compared to 10.66% at June 30, 2020. Total assets at December 31, 2020 were $467,714,000 compared to $461,724,000 at June 30, 2020. Shareholders’ equity was $52,310,000 at December 31, 2020 compared to $49,198,000 at June 30, 2020. 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 six Indiana banking centers located in Columbia City, North Manchester, Peru, South Whitley, Syracuse and Warsaw. The Bank also provides leasing services at each of its banking centers. 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. Crossroads Bank, Member FDIC.

 
 
FFW Corporation
Selected Financial Information
 
Consolidated Balance Sheet
  December 31   June 30  
   2020   2020 
  Unaudited      
Assets       
Cash and due from financial institutions$8,171,008  $6,084,611 
Interest-bearing deposits in other financial institutions 22,153,590   30,077,626 
 Cash and cash equivalents 30,324,598   36,162,237 
        
Securities available for sale 113,231,548   86,147,475 
Loans receivable, net of allowance for loan losses of $4,125,566 at       
December 31, 2020 and $4,098,026 at June 30, 2020 293,684,308   303,102,891 
Loans held for sale 4,882,686   10,876,733 
Federal Home Loan Bank stock, at cost 1,462,500   1,462,500 
Accrued interest receivable 2,338,426   2,281,588 
Premises and equipment, net 9,273,792   9,338,832 
Mortgage servicing rights 847,773   731,190 
Cash surrender value of life insurance 9,309,114   9,159,293 
Goodwill 1,213,898   1,213,898 
Repossessed Assets 200,997   145,782 
Other assets 944,499   1,101,841 
 Total assets$ 467,714,139  $ 461,724,260 
         
Liabilities and shareholders' equity       
Deposits       
 Noninterest-bearing$47,774,827  $42,014,196 
 Interest-bearing 363,890,314   366,527,945 
    Total deposits 411,665,141   408,542,141 
         
Accrued expenses and other liabilities 3,738,643   3,984,019 
 Total liabilities 415,403,784   412,526,160 
         
Shareholders' equity       
Common stock, $.01 par; 2,000,000 shares authorized;       
 Issued: 1,836,328; outstanding: 1,142,690 - December 31, 2020 and 1,129,394 - June 30, 2020 18,363   18,363 
Additional paid-in capital 9,705,654   9,826,124 
Retained earnings 50,609,931   47,660,175 
Accumulated other comprehensive income 3,693,197   3,634,798 
Treasury stock, at cost: 693,638 shares at December 31, 2020 and 706,934 shares at June 30, 2020 (11,716,790)  (11,941,360)
 Total shareholders' equity 52,310,355   49,198,100 
         
 Total liabilities and shareholders' equity $ 467,714,139  $ 461,724,260 


FFW Corporation
Selected Financial Information
 
Consolidated Statement of Income
 
   Three Months Ended December 31Six Months Ended December 31
   2020 2019 2020  2019
   Unaudited Unaudited Unaudited Unaudited
Interest and dividend income:              
 Loans, including fees$3,559,989 $3,685,967  $7,164,305  $7,389,196 
 Taxable securities 321,319  291,542   654,512   684,358 
 Tax exempt securities 417,657  312,265   789,928   625,859 
 Other 9,728  59,806   17,509   166,787 
  Total interest and dividend income 4,308,693  4,349,580   8,626,254   8,866,200 
                 
Interest expense:              
 Deposits 581,261  928,987   1,192,646   1,944,647 
 Borrowings -  10,438   -   20,278 
  Total interest expense 581,261  939,425   1,192,646   1,964,925 
                 
Net interest income 3,727,432  3,410,155   7,433,608   6,901,275 
                 
Provision for loan losses 165,000  50,000   330,000   125,000 
                 
Net interest income after provision for               
 loan losses 3,562,432  3,360,155   7,103,608   6,776,275 
                 
Noninterest income:              
 Net gains on sales of securities -  (259)  98,467   (259)
 Net gains on sales of loans 1,013,356  190,773   2,208,842   357,358 
 Net gains (losses) on fixed assets 9,204  -   9,204   - 
 Net gains (losses) on sales of REO -  4,565   (6,535)  4,565 
 Commission income 281,325  277,207   571,403   589,813 
 Service charges and fees 199,419  290,980   294,838   517,670 
 Earnings on life insurance 75,379  73,346   149,820   144,665 
 Other 235,103  208,352   469,446   442,539 
  Total noninterest income 1,813,786  1,044,964   3,795,485   2,056,351 
                 
Noninterest expense:              
 Salaries and benefits 1,714,403  1,581,507   3,475,467   3,160,630 
 Occupancy and equipment 321,365  288,883   664,459   584,575 
 Professional 92,608  148,299   153,194   288,638 
 Marketing 108,652  91,721   222,593   199,905 
 Deposit insurance premium 33,000  5,939   66,000   38,939 
 Regulatory assessment 9,301  8,954   18,602   17,907 
 Correspondent bank charges 17,146  19,293   34,663   39,623 
 Data processing 400,688  344,458   821,270   661,396 
 Printing, postage and supplies 72,084  68,995   167,496   137,514 
 Expense on life insurance 15,849  14,894   31,698   29,789 
 Contribution expense 11,887  9,457   27,275   19,003 
 Expense on REO 3,258  17,148   8,039   20,672 
 Other 459,435  338,330   994,748   729,756 
  Total noninterest expense 3,259,676  2,937,878   6,685,504   5,928,347 
                 
Income before income taxes 2,116,542  1,467,241   4,213,589   2,904,279 
                 
Income tax expense 342,970  199,966   692,487   401,212 
                 
Net income $ 1,773,572 $ 1,267,275  $ 3,521,102  $ 2,503,067 


FFW Corporation
Selected Financial Information
 
Key Balances and Ratios
 
  Three Months Ended December 31Six Months Ended December 31
  2020 2019 2020 2019
  Unaudited Unaudited Unaudited Unaudited
Per common share data:               
Earnings$1.55  $1.11  $3.08  $2.19 
Diluted earnings$1.55  $1.11  $3.08  $2.19 
Dividends paid$0.25  $0.23  $0.50  $0.46 
Average shares issued and outstanding 1,142,690   1,137,783   1,142,690   1,141,109 
Shares outstanding end of period 1,142,690   1,137,783   1,142,690   1,137,783 
                 
Supplemental data:               
Net interest margin ** 3.30%  3.46%  3.34%  3.51%
Return on average assets *** 1.46%  1.20%  1.47%  1.19%
Return on average common equity *** 13.66%  10.89%  13.69%  10.83%
                 
  December 31
 June 30
        
   2020   2020         
Nonperforming assets *$3,628,670  $3,550,611         
Repossessed assets$200,997  $145,782         
      
*    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