GlobeNewswire Inc | Aug 18, 2020 12:52PM EDT

August 18, 2020

WABASH, Ind., Aug. 18, 2020 (GLOBE NEWSWIRE) -- FFW Corporation (the Corporation) (OTC PINK: FFWC) (8/17/20 Close: $37.75), parent corporation of Crossroads Bank (the Bank), announced earnings for the fiscal year ended June 30, 2020.

For the three months ended June 30, 2020, the Corporation reported net income of $1,399,000 or $1.23 per common share compared to $1,037,000 or $0.90 per common share for the three months ended June 30, 2019. Net interest income for the three months ended June 30, 2020 was $3,637,000 compared to $3,295,000 for the three months ended June 30, 2019. The provision for loan losses was $105,000 for the three months ended June 30, 2020 and $50,000 for the three months ended June 30, 2019. Total noninterest income was $1,367,000 for the three months ended June 30, 2020 compared to $770,000 for the three months ended June 30, 2019. Noninterest expense was $3,236,000 for the three months ended June 30, 2020 and $2,844,000 for the three months ended June 30, 2019.

For the twelve months ended June 30, 2020, the Corporation reported net income of $5,011,000 or $4.40 per common share compared to $4,344,000 or $3.77 per common share for the twelve months ended June 30, 2019. Net interest income for the twelve months ended June 30, 2020 was $14,176,000 compared to $13,190,000 for the twelve months ended June 30, 2019. The Company recognized a provision for loan losses of $305,000 for the twelve months ended June 30, 2020 and $231,000 for the twelve months ended June 30, 2019. Total noninterest income was $4,197,000 for the twelve months ended June 30, 2020 compared to $3,177,000 for the twelve months ended June 30, 2019. Noninterest expense was $12,232,000 for the twelve months ended June 30, 2020 and $11,151,000 for the twelve months ended June 30, 2019.

The three and twelve months ended June 30, 2020 represented a return on average common equity of 11.78% and 10.72%, respectively, compared to 9.49% and 10.39% for the three and twelve month periods ended June 30, 2019. The three and twelve months ended June 30, 2020 represented a return on average assets of 1.24% and 1.17%, respectively, compared to 1.02% and 1.09%, for the three and twelve month periods ended June 30, 2019.

The allowance for loan losses as a percentage of gross loans receivable was 1.29% at June 30, 2020 compared to 1.35% at June 30, 2019. Nonperforming assets were $3,551,000 at June 30, 2020 compared to $3,693,000 at June 30, 2019.

President & CEO, Roger Cromer commented, At June 30, 2020, we had closed approximately $14.4 million in Paycheck Protection Program (PPP) loans supporting 200 local businesses and approximately 2,000 employees. We believe each loan will be forgiven in accordance with the Small Business Administrations guidelines. Our allowance as a percentage of gross loans was 1.29% at June 30, 2020. Excluding $14.4 million in PPP loans, this percentage would have been 1.35%. Management is focused on customer needs and a strong assessment of the allowance.

As of June 30, 2020, FFWCs equity-to-assets ratio was 10.66% compared to 10.79% at June 30, 2019. Total assets at June 30, 2020 were $461,724,000 compared to $414,517,000 at June 30, 2019. Shareholders equity was $49,198,000 at June 30, 2020 compared to $44,738,000 at June 30, 2019. 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 five Indiana banking centers located in Columbia City, North Manchester, Peru, South Whitley and Syracuse. The Bank provides leasing services at its banking centers and its Fishers, IN leasing and commercial loan office. 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.

FOR MORE INFORMATION Contact: Emily Boardman, Treasurer, at (260) 563-3185

FFW CorporationSelected Financial Information

Consolidated Balance Sheet

June 30 June 30 2020 2019 Unaudited Assets Cash and due from financial institutions $ 6,084,611 $ 4,897,871 Interest-bearing deposits in other 30,077,626 21,857,520 financial institutions Cash and cash equivalents 36,162,237 26,755,391 Securities available for sale 86,147,475 85,275,452 Loans receivable, net of allowance for loan losses of $4,098,026 atJune 30, 2020 and $3,857,473 at June 30, 303,183,291 279,796,467 2019Loans held for sale 10,796,333 1,340,765 Federal Home Loan Bank stock, at cost 1,462,500 1,462,500 Accrued interest receivable 2,281,588 2,240,851 Premises and equipment, net 9,338,832 5,442,196 Mortgage servicing rights 731,190 762,392 Cash surrender value of life insurance 9,159,293 8,867,601 Goodwill 1,213,898 1,213,898 Repossessed Assets 145,782 194,730 Other assets 1,101,841 1,165,252 Total assets $ 461,724,260 $ 414,517,495 Liabilities and shareholders' equity Deposits Noninterest-bearing $ 42,014,196 $ 33,005,454 Interest-bearing 366,527,945 331,115,288 Total deposits 408,542,141 364,120,742 Borrowings 0 2,000,000 Accrued expenses and other liabilities 3,984,019 3,659,180 Total liabilities 412,526,160 369,779,922 Shareholders' equity Common stock, $.01 par; 2,000,000 shares authorized; Issued: 1,836,328; outstanding: 1,129,394 - June 30, 2020 and 1,149,783 18,363 18,363 - June 30, 2019Additional paid-in capital 9,826,124 9,777,849 Retained earnings 47,660,175 43,691,848 Accumulated other comprehensive income 3,634,798 2,238,257 Treasury stock, at cost: 706,934 shares atJune 30, 2020 and 686,545 shares at June (11,941,360 ) (10,988,744 )30, 2019 Total shareholders' equity 49,198,100 44,737,573 Total liabilities and shareholders' $ 461,724,260 $ 414,517,495 equity

FFW CorporationSelected Financial Information

Consolidated Statement of Income

Three Months Ended June 30 Twelve Months Ended June 30 2020 2019 2020 2019 Unaudited Unaudited Interest and dividend income: Loans, $ 3,631,205 $ 3,475,982 $ 14,804,286 $ 13,447,651 including fees Taxable 349,342 406,219 1,391,566 1,452,121 securities Tax exempt 329,816 331,714 1,268,773 1,244,855 securities Other 5,613 114,914 239,067 475,939 Total interest and 4,315,976 4,328,829 17,703,692 16,620,566 dividend income Interest expense: Deposits 679,327 1,024,793 3,497,764 3,395,598 Borrowings - 8,647 29,434 34,900 Total interest 679,327 1,033,440 3,527,198 3,430,498 expense Net interest 3,636,649 3,295,389 14,176,494 13,190,068 income Provision for 105,000 50,000 305,000 231,118 loan losses Net interestincome after provision for loan losses 3,531,649 3,245,389 13,871,494 12,958,950 Noninterest income: Net gains on sales of 25,503 - 20,958 43,776 securities Net gains on 693,285 65,984 1,298,996 298,129 sales of loans Net gains (losses) on - (15,716 ) - (15,716 ) fixed assets Net gains (losses) on (12,986 ) 3,825 (33,854 ) 9,318 sales of REO Commission 280,750 247,601 1,145,772 962,088 income Service charges and 84,895 161,570 633,476 816,743 fees Earnings on 73,864 70,701 291,693 281,934 life insurance Other 221,248 235,596 839,903 780,758 Total noninterest 1,366,559 769,561 4,196,944 3,177,030 income Noninterest expense: Salaries and 1,792,027 1,522,509 6,631,880 6,134,248 benefits Occupancy and 288,374 320,367 1,161,072 1,239,158 equipment Professional 52,291 87,294 470,967 408,750 Marketing 111,551 94,446 407,145 388,414 Deposit insurance 14,912 21,000 53,851 72,589 premium Regulatory 8,954 8,099 37,002 33,147 assessment Correspondent 16,853 22,255 75,931 81,599 bank charges Data 385,597 263,074 1,416,850 979,574 processing Printing, postage and 79,924 78,318 294,099 248,362 supplies Expense on 14,895 18,730 59,579 74,921 life insurance Contribution 59,558 8,352 94,538 41,652 expense Expense on REO 15,833 3,037 45,515 18,941 Other 395,547 396,628 1,483,412 1,430,051 Total noninterest 3,236,316 2,844,109 12,231,841 11,151,406 expense Income before 1,661,892 1,170,841 5,836,597 4,984,574 income taxes Income tax 262,844 133,385 825,368 640,814 expense Net income $ 1,399,048 $ 1,037,456 $ 5,011,229 $ 4,343,760

FFW CorporationSelected Financial Information

Key Balances and Ratios

Three Months Ended June 30 Twelve Months Ended June 30 2020 2019 2020 2019 Unaudited Unaudited Per common share data:Earnings $1.23 $0.90 $4.40 $3.77 Diluted $1.23 $0.90 $4.40 $3.77 earningsDividends paid $0.23 $0.21 $0.92 $0.84 Average sharesissued and 1,129,394 1,149,783 1,138,115 1,151,968 outstandingSharesoutstanding end 1,129,394 1,149,783 1,129,394 1,149,783 of period Supplemental data:Net interest 3.45 % 3.43 % 3.54 % 3.52 %margin **Return onaverage assets 1.24 % 1.02 % 1.17 % 1.09 %***Return onaverage common 11.78 % 9.49 % 10.72 % 10.39 %equity *** June 30 June 30 2020 2019 Nonperforming $3,550,611 $3,692,825 assets *Repossessed $145,782 $194,730 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