GlobeNewswire Inc | Oct 28, 2020 09:32AM EDT

October 28, 2020

WABASH, Ind., Oct. 28, 2020 (GLOBE NEWSWIRE) -- FFW Corporation (the Corporation) (OTC PINK: FFWC) (10/27/20 Close: $39.00), parent corporation of Crossroads Bank (the Bank), announced earnings for the quarter ended September 30, 2020.

For the three months ended September 30, 2020, the Corporation reported net income of $1,748,000 or $1.53 per common share compared to $1,236,000 or $1.08 per common share for the three months ended September 30, 2019. Net interest income for the three months ended September 30, 2020 was $3,706,000 compared to $3,491,000 for the three months ended September 30, 2019. The provision for loan losses was $165,000 for the three months ended September 30, 2020 and $75,000 for the three months ended September 30, 2019. Total noninterest income was $1,982,000 for the three months ended September 30, 2020 compared to $1,011,000 for the three months ended September 30, 2019. Noninterest expense was $3,426,000 for the three months ended September 30, 2020 and $2,990,000 for the three months ended September 30, 2019.

The three months ended September 30, 2020 represented a return on average common equity of 13.71% compared to 10.77% for the three months ended September 30, 2019. The three months ended September 30, 2020 represented a return on average assets of 1.48% compared to 1.18% for the three months ended September 30, 2019.

The allowance for loan losses as a percentage of gross loans receivable was 1.29% at September 30, 2020 compared to 1.29% at June 30, 2020. Nonperforming assets were $3,175,000 at September 30, 2020 compared to $3,551,000 at June 30, 2020.

As of September 30, 2020, FFWCs equity-to-assets ratio was 10.83% compared to 10.66% at June 30, 2020. Total assets at September 30, 2020 were $466,214,000 compared to $461,724,000 at June 30, 2020. Shareholders equity was $50,474,000 at September 30, 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

September 30 June 30 2020 2020 Unaudited Assets Cash and due from financial institutions $ 4,865,661 $ 6,084,611 Interest-bearing deposits in other 26,909,857 30,077,626 financial institutions Cash and cash equivalents 31,775,518 36,162,237 Securities available for sale 100,178,257 86,147,475 Loans receivable, net of allowance for loan losses of $4,036,116 atSeptember 30, 2020 and $4,098,026 at 304,558,569 303,102,891 June 30, 2020Loans held for sale 4,107,705 10,876,733 Federal Home Loan Bank stock, at cost 1,462,500 1,462,500 Accrued interest receivable 2,339,030 2,281,588 Premises and equipment, net 9,376,500 9,338,832 Mortgage servicing rights 784,574 731,190 Cash surrender value of life insurance 9,233,735 9,159,293 Goodwill 1,213,898 1,213,898 Repossessed Assets 179,184 145,782 Other assets 1,004,677 1,101,841 Total assets $ 466,214,147 $ 461,724,260 Liabilities and shareholders' equity Deposits Noninterest-bearing $ 46,598,906 $ 42,014,196 Interest-bearing 365,015,219 366,527,945 Total deposits 411,614,125 408,542,141 Accrued expenses and other liabilities 4,126,072 3,984,019 Total liabilities 415,740,197 412,526,160 Shareholders' equity Common stock, $.01 par; 2,000,000 shares authorized; Issued: 1,836,328; outstanding: 1,142,690 - September 30, 2020 and 18,363 18,363 1,129,394 - June 30, 2020Additional paid-in capital 9,653,604 9,826,124 Retained earnings 49,122,033 47,660,175 Accumulated other comprehensive income 3,396,740 3,634,798 Treasury stock, at cost: 693,638 sharesat September 30, 2020 and 706,934 shares (11,716,790 ) (11,941,360 )at June 30, 2020 Total shareholders' equity 50,473,950 49,198,100 Total liabilities and shareholders' $ 466,214,147 $ 461,724,260 equity



FFW CorporationSelected Financial Information

Consolidated Statement of Income

Three Months Ended September 30 2020 2019 Unaudited UnauditedInterest and dividend income: Loans, including fees $ 3,604,316 $ 3,703,229 Taxable securities 333,193 392,816 Tax exempt securities 372,271 313,594 Other 7,781 106,981 Total interest and dividend income 4,317,561 4,516,620 Interest expense: Deposits 611,385 1,015,660 Borrowings - 9,840 Total interest expense 611,385 1,025,500 Net interest income 3,706,176 3,491,120 Provision for loan losses 165,000 75,000 Net interest income after provision for loan losses 3,541,176 3,416,120 Noninterest income: Net gains on sales of securities 98,467 - Net gains on sales of loans 1,195,486 166,585 Net gains (losses) on sales of REO (6,535 ) - Commission income 290,078 312,606 Service charges and fees 95,419 226,690 Earnings on life insurance 74,441 71,319 Other 234,343 234,187 Total noninterest income 1,981,699 1,011,387 Noninterest expense: Salaries and benefits 1,761,064 1,579,123 Occupancy and equipment 343,094 295,692 Professional 60,586 140,339 Marketing 113,941 108,184 Deposit insurance premium 33,000 33,000 Regulatory assessment 9,301 8,953 Correspondent bank charges 17,517 20,330 Data processing 420,582 316,938 Printing, postage and supplies 95,412 68,519 Expense on life insurance 15,849 14,895 Contribution expense 15,388 9,546 Expense on REO 4,781 3,524 Other 535,313 391,426 Total noninterest expense 3,425,828 2,990,469 Income before income taxes 2,097,047 1,437,038 Income tax expense 349,517 201,246 Net income $ 1,747,530 $ 1,235,792



FFW CorporationSelected Financial Information

Key Balances and Ratios

Three Months Ended September 30 2020 2019 Unaudited UnauditedPer common share data: Earnings $ 1.53 $ 1.08 Diluted earnings $ 1.53 $ 1.08 Dividends paid $ 0.25 $ 0.23 Average shares issued and 1,142,690 1,144,435 outstandingShares outstanding end of 1,142,690 1,137,783 period Supplemental data: Net interest margin ** 3.38 % 3.56 %Return on average assets 1.48 % 1.18 %***Return on average common 13.71 % 10.77 %equity *** September 30 June 30 2020 2020 Nonperforming assets * $ 3,174,865 $ 3,550,611 Repossessed assets $ 179,184 $ 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