GlobeNewswire Inc | Oct 27, 2021 10:41AM EDT

October 27, 2021

WABASH, Ind., Oct. 27, 2021 (GLOBE NEWSWIRE) -- FFW Corporation (the Corporation) (OTC PINK: FFWC) (10/26/2021 Close: $47.50), parent corporation of Crossroads Bank (the Bank), announced earnings for the quarter ended September 30, 2021.

For the three months ended September 30, 2021, the Corporation reported net income of $1,471,000 or $1.28 per common share compared to $1,748,000 or $1.53 per common share for the three months ended September 30, 2020. Net interest income for the three months ended September 30, 2021 was $3,813,000 compared to $3,706,000 for the three months ended September 30, 2020. The provision for loan losses was $50,000 for the three months ended September 30, 2021 and $165,000 for the three months ended September 30, 2020. Total noninterest income was $1,213,000 for the three months ended September 30, 2021 compared to $1,982,000 for the three months ended September 30, 2020. Noninterest expense was $3,209,000 for the three months ended September 30, 2021 and $3,426,000 for the three months ended September 30, 2020.

The three months ended September 30, 2021 represented a return on average common equity of 10.72% compared to 13.71% for the three months ended September 30, 2020. The three months ended September 30, 2021 represented a return on average assets of 1.17% compared to 1.48% for the three months ended September 30, 2020.

The allowance for loan losses as a percentage of gross loans receivable was 1.37% at September 30, 2021 compared to 1.43% at June 30, 2021. Nonperforming assets were $3,229,000 at September 30, 2021 compared to $3,242,000 at June 30, 2021.

As of September 30, 2021, FFWCs equity-to-assets ratio was 10.75% compared to 10.89% at June 30, 2021. Total assets at September 30, 2021 were $500,042,000 compared to $486,442,000 at June 30, 2021. Shareholders equity was $53,760,000 at September 30, 2021 compared to $52,954,000 at June 30, 2021. 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 twelve 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

September 30 June 30 2021 2021 Unaudited Assets Cash and due from financial institutions $ 6,567,703 $ 4,779,188 Interest-bearing deposits in other 48,015,361 51,646,720 financial institutions Cash and cash equivalents 54,583,064 56,425,908 Securities available for sale 116,500,686 116,335,455 Loans receivable, net of allowance for loan losses of $4,204,048 atSeptember 30, 2021 and $4,168,689 at June 302,895,512 285,643,064 30, 2021Loans held for sale 562,044 2,613,987 Federal Home Loan Bank stock, at cost 1,462,500 1,462,500 Accrued interest receivable 2,082,763 2,131,744 Premises and equipment, net 8,793,695 8,949,842 Mortgage servicing rights 1,035,531 1,011,046 Cash surrender value of life insurance 9,536,111 9,459,746 Goodwill 1,213,898 1,213,898 Repossessed Assets 178,839 148,621 Other assets 1,197,152 1,045,876 Total assets $ 500,041,795 $ 486,441,687 Liabilities and shareholders' equity Deposits Noninterest-bearing $ 58,004,539 $ 49,510,375 Interest-bearing 384,368,074 380,084,790 Total deposits 442,372,613 429,595,165 Accrued expenses and other liabilities 3,908,786 3,892,719 Total liabilities 446,281,399 433,487,884 Shareholders' equity Common stock, $.01 par; 2,000,000 shares authorized; Issued: 1,836,328; outstanding: 1,143,377 - September 30, 2021 and 18,363 18,363 1,141,190 - June 30, 2021Additional paid-in capital 9,780,934 9,809,754 Retained earnings 53,025,460 51,852,194 Accumulated other comprehensive income 2,762,749 3,058,832 Treasury stock, at cost: 692,951 shares atSeptember 30, 2021 and 695,138 shares at (11,827,110 ) (11,785,340 )June 30, 2021 Total shareholders' equity 53,760,396 52,953,803 Total liabilities and shareholders' $ 500,041,795 $ 486,441,687 equity

FFW CorporationSelected Financial Information

Consolidated Statement of Income

Three Months Ended September 30 2021 2020 Unaudited UnauditedInterest and dividend income: Loans, including fees $ 3,392,516 $ 3,604,316 Taxable securities 354,571 333,193 Tax exempt securities 414,258 372,271 Other 18,753 7,781 Total interest and dividend income 4,180,098 4,317,561 Interest expense: Deposits 366,671 611,385 Total interest expense 366,671 611,385 Net interest income 3,813,427 3,706,176 Provision for loan losses 50,000 165,000 Net interest income after provision for loan losses 3,763,427 3,541,176 Noninterest income: Net gains on sales of securities - 98,467 Net gains on sales of loans 282,663 1,195,486 Net gains (losses) on sales of REO (7,016 ) (6,535 ) Commission income 322,604 290,078 Service charges and fees 263,230 95,419 Earnings on life insurance 76,365 74,441 Other 275,308 234,343 Total noninterest income 1,213,154 1,981,699 Noninterest expense: Salaries and benefits 1,712,210 1,761,064 Occupancy and equipment 326,016 343,094 Professional 118,919 60,586 Marketing 112,368 113,941 Deposit insurance premium 33,000 33,000 Regulatory assessment 9,360 9,301 Correspondent bank charges 19,524 17,517 Data processing 419,272 420,582 Printing, postage and supplies 72,284 95,412 Expense on life insurance 21,432 15,849 Contribution expense 21,014 15,388 Expense on REO (3,936 ) 4,781 Other 347,038 535,313 Total noninterest expense 3,208,501 3,425,828 Income before income taxes 1,768,080 2,097,047 Income tax expense 297,536 349,517 Net income $ 1,470,544 $ 1,747,530

FFW CorporationSelected Financial Information

Key Balances and Ratios

Three Months Ended September 30 2021 2020 Unaudited UnauditedPer common share data: Earnings $ 1.28 $ 1.53 Diluted earnings $ 1.28 $ 1.53 Dividends paid $ 0.26 $ 0.25 Average shares issued and 1,145,204 1,142,690 outstandingShares outstanding end of 1,143,377 1,142,690 period Supplemental data: Net interest margin ** 3.23 % 3.38 %Return on average assets 1.17 % 1.48 %***Return on average common 10.72 % 13.71 %equity *** September 30 June 30 2021 2021 Nonperforming assets * $ 3,229,370 $ 3,241,581 Repossessed assets $ 178,839 $ 148,621 * 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: Kirsten Pendarvis, Treasurer, at (260) 563-3185