GlobeNewswire Inc | Jan 27, 2021 10:55AM EST

January 27, 2021

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, FFWCs 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 Corporations stock is traded on the OTC Markets under the symbol FFWC. Our website address is www.crossroadsbanking.com. Crossroads Bank, Member FDIC.



FFW CorporationSelected 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 22,153,590 30,077,626 financial institutions 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 atDecember 31, 2020 and $4,098,026 at June 293,684,308 303,102,891 30, 2020Loans 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 18,363 18,363 1,129,394 - June 30, 2020Additional 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 sharesat December 31, 2020 and 706,934 shares (11,716,790 ) (11,941,360 )at June 30, 2020 Total shareholders' equity 52,310,355 49,198,100 Total liabilities and shareholders' $ 467,714,139 $ 461,724,260 equity

FFW CorporationSelected Financial Information

Consolidated Statement of Income

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

FFW CorporationSelected Financial Information

Key Balances and Ratios

Three Months Ended December 31 Six Months Ended December 31 2020 2019 2020 2019 Unaudited Unaudited Unaudited UnauditedPer common share data:Earnings $ 1.55 $ 1.11 $ 3.08 $ 2.19 Diluted $ 1.55 $ 1.11 $ 3.08 $ 2.19 earningsDividends $ 0.25 $ 0.23 $ 0.50 $ 0.46 paidAverageshares issued 1,142,690 1,137,783 1,142,690 1,141,109 andoutstandingSharesoutstanding 1,142,690 1,137,783 1,142,690 1,137,783 end of period Supplemental data:Net interest 3.30 % 3.46 % 3.34 % 3.51 %margin **Return onaverage 1.46 % 1.20 % 1.47 % 1.19 %assets ***Return onaverage 13.66 % 10.89 % 13.69 % 10.83 %common equity*** December 31 June 30 2020 2020 Nonperforming $ 3,628,670 $ 3,550,611 assets *Repossessed $ 200,997 $ 145,782 assets * 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