FFW Corporation Announces Earnings for the Fiscal Year Ended June 30, 2016
/EINPresswire.com/ -- WABASH, IN--(Marketwired - August 10, 2016) - FFW Corporation (the "Corporation") (OTC PINK: FFWC) (8/9/16 Close: $25.40), parent corporation of Crossroads Bank (the "Bank"), announced earnings for the three and twelve months ended June 30, 2016.
For the three months ended June 30, 2016, the Corporation reported net income of $1,002,000 or $0.83 per common share compared to $811,000 or $0.65 per common share for the three months ended June 30, 2015. Net interest income for the three months ended June 30, 2016 was $2,890,000 compared to $2,886,000 for the three months ended June 30, 2015. The provision for loan losses was $80,000 for the three month periods ended June 30, 2016 and June 30, 2015. Total noninterest income was $1,098,000 for the three months ended June 30, 2016 compared to $920,000 for the three months ended June 30, 2015. Noninterest expense was $2,604,000 for the three months ended June 30, 2016 and $2,619,000 for the three months ended June 30, 2015.
For the twelve months ended June 30, 2016, the Corporation reported net income of $3,790,000 or $3.15 per common share compared to $3,165,000 or $2.49 per common share for the twelve months ended June 30, 2015. Net interest income for the twelve months ended June 30, 2016 was $11,523,000 compared to $11,436,000 for the twelve months ended June 30, 2015. The provision for loan losses was $280,000 for the twelve months ended June 30, 2016 and $560,000 for the twelve months ended June 30, 2015. Total noninterest income was $4,165,000 for the twelve months ended June 30, 2016 compared to $3,714,000 for the twelve months ended June 30, 2015. Noninterest expense was $10,548,000 for the twelve months ended June 30, 2016 and $10,359,000 for the twelve months ended June 30, 2015.
The three and twelve months ended June 30, 2016 represented a return on average common equity of 11.19% and 11.00%, respectively, compared to 9.58% and 9.49% for the three and twelve month periods ended June 30, 2015. The three and twelve months ended June 30, 2016 represented a return on average assets of 1.18% and 1.13%, respectively, compared to 0.97% and 0.94%, for the three and twelve month periods ended June 30, 2015.
The allowance for loan losses as a percentage of gross loans receivable was 1.52% at June 30, 2016 compared to 1.45% at June 30, 2015. Nonperforming assets were $6,700,000 at June 30, 2016 compared to $5,897,000 at June 30, 2015.
As of June 30, 2016, FFWC's equity-to-assets ratio was 10.98% compared to 10.08% at June 30, 2015. Total assets at June 30, 2016 were $340,987,000 compared to $334,056,000 at June 30, 2015. Shareholders' equity was $37,449,000 at June 30, 2016 compared to $33,682,000 at June 30, 2015. 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 four Indiana banking centers located in Columbia City, North Manchester, 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
June 30 June 30
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2016 2015
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Unaudited
Assets
Cash and due from financial institutions $ 4,031,546 $ 4,154,036
Interest-bearing deposits in other financial
institutions 6,188,392 4,988,002
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Cash and cash equivalents 10,219,938 9,142,038
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Securities available for sale 79,011,265 77,922,871
Loans receivable, net of allowance for loan
losses of $3,557,769 at
June 30, 2016 and $3,314,307 at June 30, 2015 229,454,626 225,521,274
Loans held for sale 854,375 104,932
Federal Home Loan Bank stock, at cost 1,462,500 1,462,500
Accrued interest receivable 1,760,537 1,707,661
Premises and equipment, net 5,193,270 5,044,265
Mortgage servicing rights 660,784 754,076
Cash surrender value of life insurance 8,022,990 7,744,574
Goodwill 1,213,898 1,213,898
Repossessed Assets 2,062,708 1,968,808
Other assets 1,070,211 1,469,251
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Total assets $340,987,102 $334,056,148
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Liabilities and shareholders' equity
Deposits
Noninterest-bearing $ 25,032,689 $ 30,780,793
Interest-bearing 254,123,833 234,698,904
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Total deposits 279,156,522 265,479,697
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Borrowings 21,698,400 32,558,400
Accrued expenses and other liabilities 2,682,835 2,335,878
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Total liabilities 303,537,757 300,373,975
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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
June 30, 2016 and 3,250 shares at June 30,
2015, $2,264,000 liquidation preference at
June 30, 2016 and $3,271,000 at June 30, 2015 2,250,000 3,250,000
Common stock, $.01 par; 2,000,000 shares
authorized;
Issued: 1,836,328; outstanding: 1,156,084 -
June 30, 2016 and 1,142,084 - June 30, 2015 18,363 18,363
Additional paid-in capital 9,358,395 9,452,255
Retained earnings 34,053,094 31,116,433
Accumulated other comprehensive income 2,211,217 501,746
Treasury stock, at cost: 680,244 shares at June
30, 2016 and 694,244 shares at June 30, 2015 (10,441,724) (10,656,624)
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Total shareholders' equity 37,449,345 33,682,173
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Total liabilities and shareholders' equity $340,987,102 $334,056,148
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FFW Corporation
Selected Financial Information
Consolidated Statement of Income
Three Months Ended June Twelve Months Ended June
30 30
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2016 2015 2016 2015
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Unaudited Unaudited
Interest and dividend
income:
Loans, including fees $ 2,680,532 $ 2,645,498 $10,614,782 $10,526,111
Taxable securities 327,335 252,980 1,290,446 1,143,642
Tax exempt securities 256,027 320,467 1,016,000 1,268,092
Other 6,842 4,260 24,945 21,039
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Total interest and
dividend income 3,270,736 3,223,205 12,946,173 12,958,884
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Interest expense:
Deposits 341,444 295,347 1,273,386 1,361,775
Borrowings 38,853 41,789 150,234 161,211
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Total interest
expense 380,297 337,136 1,423,620 1,522,986
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Net interest income 2,890,439 2,886,069 11,522,553 11,435,898
Provision for loan
losses 80,000 80,000 280,000 560,000
Net interest income
after provision for
loan losses 2,810,439 2,806,069 11,242,553 10,875,898
Noninterest income:
Net gains on sales of
securities 50,000 - 50,000 51,449
Net gains on sales of
loans 165,251 110,327 517,754 438,230
Net gains (losses) on
fixed assets (844) (18,301) (2,196) (18,866)
Commission income 251,586 254,345 971,716 982,879
Service charges and
fees 143,201 231,126 698,975 954,071
Earnings on life
insurance 70,002 68,303 278,416 271,458
Income from REO 318,261 167,366 1,230,864 708,180
Other 100,631 106,576 419,838 326,707
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Total noninterest
income 1,098,088 919,742 4,165,367 3,714,108
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Noninterest expense:
Salaries and benefits 1,305,066 1,203,446 4,996,585 4,865,720
Occupancy and
equipment 264,248 244,175 1,094,473 991,671
Professional 144,635 145,425 652,903 543,107
Marketing 46,293 33,313 206,928 153,797
Deposit insurance
premium 57,000 54,567 234,712 204,459
Regulatory assessment (40,089) 39,000 48,511 129,971
Correspondent bank
charges 14,078 13,719 59,038 58,852
Data processing 115,332 162,180 436,127 628,703
Printing, postage and
supplies 59,362 49,886 259,152 221,990
Expense on life
insurance 21,913 20,315 87,652 81,259
Contribution expense 10,155 10,891 41,187 49,186
Expense on REO 321,627 358,479 1,266,652 1,301,604
Other 284,558 283,489 1,164,104 1,128,638
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Total noninterest
expense 2,604,178 2,618,885 10,548,024 10,358,957
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Income before income
taxes 1,304,349 1,106,926 4,859,896 4,231,049
Income tax expense 302,527 295,750 1,069,625 1,066,380
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Net income $ 1,001,822 $ 811,176 $ 3,790,271 $ 3,164,669
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Preferred stock
dividends 40,486 71,840 162,361 331,919
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Net income attributable
to common shareholders $ 961,336 $ 739,336 $ 3,627,910 $ 2,832,750
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FFW Corporation
Selected Financial Information
Key Balances and Ratios
Three Months Ended Twelve Months Ended
June 30 June 30
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2016 2015 2016 2015
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Unaudited Unaudited
Per common share data:
Earnings $ 0.83 $ 0.65 $ 3.15 $ 2.49
Diluted earnings $ 0.83 $ 0.65 $ 3.15 $ 2.49
Dividends paid $ 0.15 $ 0.135 $ 0.60 $ 0.515
Average shares issued and
outstanding 1,156,084 1,142,084 1,150,155 1,137,125
Shares outstanding end of
period 1,156,084 1,142,084 1,156,084 1,142,084
Supplemental data:
Net interest margin ** 3.66% 3.72% 3.69% 3.63%
Return on average assets *** 1.18% 0.97% 1.13% 0.94%
Return on average common
equity *** 11.19% 9.58% 11.00% 9.49%
June 30 June 30
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2016 2015
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Nonperforming assets * $6,699,913 $5,896,625
Repossessed assets $2,062,708 $1,968,808
* 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
Contact:
Emily Boardman
Treasurer
260-563-3185
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