GlobeNewswire Inc | Apr 28, 2021 10:52AM EDT

April 28, 2021

WABASH, Ind., April 28, 2021 (GLOBE NEWSWIRE) -- FFW Corporation (the Corporation) (OTC PINK: FFWC) (4/27/2021 Close: $43.00), parent corporation of Crossroads Bank (the Bank), announced earnings for the quarter and year to date ended March 31, 2021.

For the three months ended March 31, 2021, the Corporation reported net income of $1,575,000 or $1.38 per common share compared to $1,109,000 or $0.98 per common share for the three months ended March 31, 2020. Net interest income for the three months ended March 31, 2021 was $3,655,000 compared to $3,639,000 for the three months ended March 31, 2020. The provision for loan losses was $165,000 for the three months ended March 31, 2021 and $75,000 for the three months ended March 31, 2020. Total noninterest income was $1,917,000 for the three months ended March 31, 2021 compared to $774,000 for the three months ended March 31, 2020. Noninterest expense was $3,570,000 for the three months ended March 31, 2021 and $3,067,000 for the three months ended March 31, 2020.

For the nine months ended March 31, 2021, the Corporation reported net income of $5,096,000 or $4.46 per common share compared to $3,612,000 or $3.17 per common share for the nine months ended March 31, 2020. Net interest income for the nine months ended March 31, 2021 was $11,089,000 compared to $10,540,000 for the nine months ended March 31, 2020. The Company recognized a provision for loan losses of $495,000 for the nine months ended March 31, 2021 and $200,000 for the nine months ended March 31, 2020. Total noninterest income was $5,713,000 for the nine months ended March 31, 2021 compared to $2,830,000 for the nine months ended March 31, 2020. Noninterest expense was $10,255,000 for the nine months ended March 31, 2021 and $8,996,000 for the nine months ended March 31, 2020.

The three and nine months ended March 31, 2021 represented a return on average common equity of 12.00% and 13.12%, respectively, compared to 9.85% and 10.36% for the three and nine month periods ended March 31, 2020. The three and nine months ended March 31, 2021 represented a return on average assets of 1.36% and 1.44%, respectively, compared to 1.05% and 1.14%, for the three and nine month periods ended March 31, 2020.

The allowance for loan losses as a percentage of gross loans receivable was 1.45% at March 31, 2021 compared to 1.29% at June 30, 2020. Nonperforming assets were $3,187,000 at March 31, 2021 compared to $3,551,000 at June 30, 2020.

As of March 31, 2021, FFWCs equity-to-assets ratio was 10.85% compared to 10.66% at June 30, 2020. Total assets at March 31, 2021 were $480,837,000 compared to $461,724,000 at June 30, 2020. Shareholders equity was $52,179,000 at March 31, 2021 compared to $49,198,000 at June 30, 2020. Crossroads Bank exceeds all applicable regulatory requirements to be considered well capitalized.

The Board of Directors has declared a special cash dividend of $1.00 per share of the Companys common stock. The dividend is payable June 1, 2021 to shareholders of record on May 18, 2021.

The Corporation also announced today that its Board of Directors has approved plans to continue the stock repurchase program for its outstanding stock. The Corporation may suspend or discontinue repurchases at any time. Repurchases may begin as early as May 1, 2021.

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 nine 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 March 31 June 30 2021 2020 Unaudited Assets Cash and due from financial institutions $ 5,825,761 $ 6,084,611 Interest-bearing deposits in other 41,908,419 30,077,626 financial institutionsCash and cash equivalents 47,734,180 36,162,237 Securities available for sale 116,138,400 86,147,475 Loans receivable, net of allowance for loan losses of $4,296,448 atMarch 31, 2021 and $4,098,026 at June 30, 289,424,448 303,102,891 2020Loans held for sale 2,203,417 10,876,733 Federal Home Loan Bank stock, at cost 1,462,500 1,462,500 Accrued interest receivable 1,971,414 2,281,588 Premises and equipment, net 9,113,259 9,338,832 Mortgage servicing rights 991,968 731,190 Cash surrender value of life insurance 9,383,989 9,159,293 Goodwill 1,213,898 1,213,898 Repossessed Assets 183,103 145,782 Other assets 1,016,833 1,101,841 Total assets $ 480,837,409 $ 461,724,260 Liabilities and shareholders' equity Deposits Noninterest-bearing $ 53,965,966 $ 42,014,196 Interest-bearing 370,437,144 366,527,945 Total deposits 424,403,110 408,542,141 Accrued expenses and other liabilities 4,255,104 3,984,019 Total liabilities 428,658,214 412,526,160 Shareholders' equity Common stock, $.01 par; 2,000,000 shares authorized;Issued: 1,836,328; outstanding: 1,142,690 -March 31, 2021 and 1,129,394 - June 30, 18,363 18,363 2020Additional paid-in capital 9,757,704 9,826,124 Retained earnings 51,899,495 47,660,175 Accumulated other comprehensive income 2,220,423 3,634,798 Treasury stock, at cost: 693,638 shares atMarch 31, 2021 and 706,934 shares at June (11,716,790 ) (11,941,360 )30, 2020Total shareholders' equity 52,179,195 49,198,100 Total liabilities and shareholders' equity $ 480,837,409 $ 461,724,260

FFW CorporationSelected Financial Information

Consolidated Statement of Income Three Months Ended March 31 Nine Months Ended March 31 2021 2020 2021 2020 Unaudited Unaudited Unaudited UnauditedInterest anddividend income:Loans,including $ 3,347,999 $ 3,783,885 $ 10,512,304 $ 11,173,081 feesTaxable 340,065 357,866 994,577 1,042,224 securitiesTax exempt 419,231 313,098 1,209,159 938,957 securitiesOther 6,281 66,667 23,790 233,454 Totalinterest and 4,113,576 4,521,516 12,739,830 13,387,716 dividendincome Interest expense:Deposits 458,636 873,790 1,651,282 2,818,437 Borrowings - 9,156 - 29,434 Totalinterest 458,636 882,946 1,651,282 2,847,871 expense Net interest 3,654,940 3,638,570 11,088,548 10,539,845 income Provision for 165,000 75,000 495,000 200,000 loan losses Net interestincome after provision forloan losses 3,489,940 3,563,570 10,593,548 10,339,845 Noninterest income:Net gains onsales of - (4,286 ) 98,467 (4,545 )securitiesNet gains onsales of 1,006,539 248,353 3,215,381 605,711 loansNet gains(losses) on - - 9,204 - fixed assetsNet gains(losses) on (16,963 ) (25,433 ) (23,498 ) (20,868 )sales of REOCommission 344,053 275,209 915,456 865,022 incomeServicecharges and 238,602 30,911 533,440 548,581 feesEarnings onlife 74,875 73,164 224,695 217,829 insuranceOther 270,216 176,116 739,662 618,655 Totalnoninterest 1,917,322 774,034 5,712,807 2,830,385 income Noninterest expense:Salaries and 1,534,134 1,679,223 5,009,601 4,839,853 benefitsOccupancy and 350,158 288,123 1,014,617 872,698 equipmentProfessional 553,813 130,038 707,007 418,676 Marketing 105,096 95,689 327,689 295,594 Depositinsurance 33,000 - 99,000 38,939 premiumRegulatory 9,515 10,141 28,117 28,048 assessmentCorrespondent 17,967 19,455 52,630 59,078 bank chargesData 400,609 369,857 1,221,879 1,031,253 processingPrinting,postage and 62,358 76,661 229,854 214,175 suppliesExpense onlife 20,611 14,895 52,309 44,684 insuranceContribution 32,340 15,977 59,615 34,980 expenseExpense on 5,018 9,010 13,057 29,682 REOOther 445,260 358,109 1,440,008 1,087,865 Totalnoninterest 3,569,879 3,067,178 10,255,383 8,995,525 expense Income before 1,837,383 1,270,426 6,050,972 4,174,705 income taxes Income tax 262,145 161,312 954,632 562,524 expense Net income $ 1,575,238 $ 1,109,114 $ 5,096,340 $ 3,612,181

FFW CorporationSelected Financial Information

Key Balances and Ratios Three Months Ended March 31 Nine Months Ended March 31 2021 2020 2021 2020 Unaudited Unaudited Unaudited UnauditedPer common share data:Earnings $ 1.38 $ 0.98 $ 4.46 $ 3.17 Diluted $ 1.38 $ 0.98 $ 4.46 $ 3.17 earningsDividends paid $ 0.25 $ 0.23 $ 0.75 $ 0.69 Average sharesissued and 1,142,690 1,137,906 1,142,690 1,140,049 outstandingSharesoutstanding end 1,142,690 1,129,394 1,142,690 1,129,394 of period Supplemental data:Net interest 3.37 % 3.69 % 3.35 % 3.57 %margin **Return onaverage assets 1.36 % 1.05 % 1.44 % 1.14 %***Return onaverage common 12.00 % 9.85 % 13.12 % 10.36 %equity *** March 31 June 30 2021 2020 Nonperforming $ 3,187,345 $ 3,550,611 assets *Repossessed $ 183,103 $ 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