FFW Corporation Announces Earnings for the Three and Six Months
Ended December 31, 2013
WABASH, IN--(Marketwired - Jan 24, 2014) - FFW Corporation
(the "Corporation") (OTCBB: FFWC) (01/23/14 Close: $18.00), parent
corporation of Crossroads Bank, announced earnings for the three
and six months ended December 31, 2013.
For the three months ended December 31, 2013, the Corporation
reported net income of $770,000 or $0.58 per common share compared
to $858,000 or $0.66 per common share for the three months ended
December 31, 2012. The net interest margin for the three
months ended December 31, 2013 was $2,584,000 compared to
$2,321,000 for the three months ended December 31, 2012. The
provision for loan losses decreased from $210,000 for the period
ended December 31, 2012 to $180,000 for the period ended December
31, 2013. Total noninterest income was $817,000 for the three
months ended December 31, 2013 compared to $1,035,000 for the three
months ended December 31, 2012. Noninterest expense was
$2,217,000 for the three months ended December 31, 2013 and
$2,145,000 for the three months ended December 31, 2012.
For the six months ended December 31, 2013, the Corporation
reported net income of $1,408,000 or $1.04 per common share
compared to $1,388,000 or $1.03 per common share for the six months
ended December 31, 2012. The net interest margin for the six
months ended December 31, 2013 was $5,144,000 compared to
$4,687,000 for the six months ended December 31, 2012. The
provision for loan losses decreased from $420,000 for the period
ended December 31, 2012 to $360,000 for the period ended December
31, 2013. Total noninterest income was $1,423,000 for the six
months ended December 31, 2013 compared to $1,683,000 for the six
months ended December 31, 2012. Noninterest expense was
$4,414,000 for the six months ended December 31, 2013 and
$4,267,000 for the six months ended December 31, 2012.
The three and six months ended December 31, 2013 represented a
return on average common equity of 10.73% and 9.74%, respectively,
compared to 11.95% and 9.43% for the three and six month periods
ended December 31, 2012. The three and six months ended
December 31, 2013 represented a return on average assets of 0.85%
and 0.80%, respectively, compared to 1.01% and 0.83%, for
the three and six month periods ended December 31, 2012.
The allowance for loan losses as a percentage of gross loans
receivable was 1.52% at December 31, 2013 compared to 1.43% at June
30, 2013. Nonperforming assets were $8,832,000 at December 31,
2013 compared to $9,794,000 at June 30, 2013.
As of December 31, 2013, FFWC's equity-to-assets ratio was 9.98%
compared to 9.27% at June 30, 2013. Total assets at December
31, 2013 were $347,834,000 compared to $337,818,000 at June 30,
2013. Shareholders' equity was $34,715,000 at December 31,
2013 compared to $31,322,000 at June 30, 2013. Crossroads Bank
exceeds all applicable regulatory requirements to be considered
"well capitalized."
The Corporation announced December 31, 2013 that it has closed
the sale of 3,250 shares of a new series of Fixed Rate Cumulative
Perpetual Preferred Stock, Series C ("Series C Preferred Stock"),
for an aggregate subscription price of $3,250,000. The shares were
offered to a select group of investors in a private placement
exempt from registration under Section 4(2) and Rule 506 of the
Securities Act of 1933 (the "Act"). The Corporation intends to use
the net proceeds of the offering along with a dividend of
approximately $1,500,000 paid by the Bank to FFW to redeem 4,750 of
the Corporation's shares of Fixed Rate Cumulative Preferred Stock,
Series A ("Series A Preferred Stock"), for $4,750,000, plus accrued
dividends, as soon as it receives regulatory non-objection to that
redemption. The Series A stock was paying dividends at 5% per year,
and those dividends are scheduled to increase to 9% on February 15,
2014. Following the redemption, FFW will continue to have
outstanding 364 shares of its Fixed Rate Cumulative Preferred
Stock, Series B, which pays dividends at 9% per year, and 2,539
shares of its Series A Preferred Stock. The Series A and B
Preferred Stock had been issued under the Treasury Department's
TARP Capital Purchase Program.
The Series C Preferred Stock is perpetual and non-voting, has a
liquidation preference of $1,000, and pays annual dividends of 5%
for the first three years, subject to possible increases to a
maximum of 7% thereafter depending on changes in the prime rate of
interest, payable quarterly. It is redeemable immediately for 100%
of its liquidation preference plus declared and unpaid
dividends.
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 four Indiana banking centers located in Columbia City,
North Manchester, South Whitley, and Syracuse. The Bank provides
leasing services at its banking centers and its Carmel, IN leasing
and commercial loan office. Insurance products are offered through
an affiliated company, Insurance 1 Services, Inc. The corporation's
stock is traded on the OTC Markets under the symbol "FFWC." Our
website address is www.crossroadsbanking.com.
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FFW Corporation |
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Selected Financial Information |
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Consolidated Balance Sheet |
|
|
|
|
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December 31 |
|
|
June 30 |
|
|
|
2013 |
|
|
2013 |
|
|
|
Unaudited |
|
|
|
|
Assets |
|
|
|
|
|
|
Cash and due from financial institutions |
|
7,171,693 |
|
|
4,353,619 |
|
Interest-earning deposits in other financial
institutions |
|
15,366,494 |
|
|
11,647,346 |
|
|
Cash and cash equivalents |
|
22,538,187 |
|
|
16,000,965 |
|
|
|
|
|
|
|
|
Securities available for sale |
|
82,605,897 |
|
|
85,122,447 |
|
Loans receivable, net of allowance for loan losses of
$3,424,000 at December 31, 2013 and $3,132,000 at June 30,
2013 |
|
221,149,576 |
|
|
215,347,079 |
|
Loans held for sale |
|
453,600 |
|
|
113,600 |
|
Federal Home Loan Bank stock, at cost |
|
2,717,300 |
|
|
2,717,300 |
|
Accrued interest receivable |
|
1,737,436 |
|
|
1,719,787 |
|
Premises and equipment, net |
|
3,257,160 |
|
|
3,348,926 |
|
Mortgage servicing rights |
|
661,780 |
|
|
629,050 |
|
Cash surrender value of life insurance |
|
7,340,810 |
|
|
7,206,897 |
|
Goodwill |
|
1,213,898 |
|
|
1,213,898 |
|
Deferred tax asset |
|
2,588,763 |
|
|
2,392,638 |
|
Other assets |
|
1,570,037 |
|
|
2,005,096 |
|
|
Total assets |
|
347,834,444 |
|
|
337,817,683 |
|
|
|
|
|
|
|
|
Liabilities and shareholders' equity |
|
|
|
|
|
|
Deposits |
|
|
|
|
|
|
|
Noninterest-bearing deposits |
|
28,173,951 |
|
|
27,397,357 |
|
|
Interest-bearing deposits |
|
279,882,876 |
|
|
272,581,131 |
|
|
|
Total
deposits |
|
308,056,827 |
|
|
299,978,488 |
|
|
|
|
|
|
|
|
Borrowings |
|
3,258,400 |
|
|
4,758,400 |
|
Accrued expenses and other liabilities |
|
1,804,086 |
|
|
1,758,769 |
|
|
|
Total
liabilities |
|
313,119,313 |
|
|
306,495,657 |
|
|
|
|
|
|
|
|
Shareholders' equity |
|
|
|
|
|
|
Preferred stock, $.01 par; $1,000 liquidation value per
share; 500,000 shares authorized; |
|
|
|
|
|
|
|
Series A, 5% Fixed Rate Cumulative Perpetual Preferred
Stock - 7,289 shares outstanding December 31, 2013, $7,335,000
liquidation preference |
|
7,289,000 |
|
|
7,248,308 |
|
|
Series B, 9% Fixed Rate Cumulative Perpetual Preferred
Stock - 364 shares outstanding December 31, 2013, $368,000
liquidation preference |
|
364,000 |
|
|
368,292 |
|
|
Series C, 5% Fixed Rate Cumulative Perpetual Preferred
Stock - 3,250 shares outstanding December 31, 2013, $3,250,000
liquidation preference |
|
|
|
|
|
|
Common stock, $.01 par; 2,000,000 shares
authorized; |
|
3,250,000 |
|
|
- |
|
|
issued shares: 1,836,328 |
|
|
|
|
|
|
|
outstanding shares: 1,132,084 at December 31, 2013 and
1,122,084 at June 30, 2013 |
|
18,363 |
|
|
18,363 |
|
Additional paid-in capital |
|
9,414,302 |
|
|
9,531,646 |
|
Retained earnings |
|
26,661,325 |
|
|
25,737,557 |
|
Accumulated other comprehensive income |
|
(1,471,735 |
) |
|
(618,516 |
) |
Treasury stock, at cost: 704,244 shares at December 31,
2013 and 714,244 at June 30, 2013 |
|
(10,810,124 |
) |
|
(10,963,624 |
) |
|
Total shareholders' equity |
|
34,715,131 |
|
|
31,322,026 |
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders' equity |
|
347,834,444 |
|
|
337,817,683 |
|
|
|
|
|
|
|
Consolidated Statement of Income |
|
|
|
|
|
Three Months Ended December 31 |
|
|
Six Months Ended December 31 |
|
|
|
2013 |
|
2012 |
|
|
2013 |
|
2012 |
|
|
|
Unaudited |
|
Unaudited |
|
|
Unaudited |
|
Unaudited |
|
Interest and dividend income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, including fees |
|
$ |
2,598,970 |
|
$ |
2,673,449 |
|
|
$ |
5,254,840 |
|
$ |
5,385,865 |
|
|
Taxable securities |
|
|
49,161 |
|
|
341,728 |
|
|
|
1,294,349 |
|
|
900,158 |
|
|
Tax exempt securities |
|
|
599,398 |
|
|
312,418 |
|
|
|
- |
|
|
444,745 |
|
|
Other |
|
|
17,978 |
|
|
4,541 |
|
|
|
27,044 |
|
|
8,668 |
|
|
|
Total
interest and dividend income |
|
|
3,265,507 |
|
|
3,332,136 |
|
|
|
6,576,233 |
|
|
6,739,436 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
648,337 |
|
|
903,745 |
|
|
|
1,353,450 |
|
|
1,818,524 |
|
|
Borrowings |
|
|
33,122 |
|
|
107,222 |
|
|
|
78,430 |
|
|
234,255 |
|
|
|
Total
interest expense |
|
|
681,459 |
|
|
1,010,967 |
|
|
|
1,431,880 |
|
|
2,052,779 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
|
2,584,048 |
|
|
2,321,169 |
|
|
|
5,144,353 |
|
|
4,686,657 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for loan losses |
|
|
180,000 |
|
|
210,000 |
|
|
|
360,000 |
|
|
420,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income after provision for loan
losses |
|
|
2,404,048 |
|
|
2,111,169 |
|
|
|
4,784,353 |
|
|
4,266,657 |
|
Noninterest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net gains on sales of securities |
|
|
52,679 |
|
|
186,767 |
|
|
|
52,679 |
|
|
179,490 |
|
|
Net gains on sales of loans |
|
|
104,923 |
|
|
331,233 |
|
|
|
148,556 |
|
|
508,235 |
|
|
Other than temporary impairment on securities |
|
|
- |
|
|
(79,983 |
) |
|
|
- |
|
|
(80,641 |
) |
|
Commission income |
|
|
227,034 |
|
|
196,788 |
|
|
|
438,492 |
|
|
394,463 |
|
|
Service charges and fees |
|
|
261,014 |
|
|
334,506 |
|
|
|
524,907 |
|
|
524,170 |
|
|
Earnings on life insurance |
|
|
66,692 |
|
|
67,696 |
|
|
|
133,913 |
|
|
134,059 |
|
|
Other |
|
|
98,480 |
|
|
(2,172 |
) |
|
|
117,817 |
|
|
23,433 |
|
|
|
Total
noninterest income |
|
|
817,303 |
|
|
1,034,835 |
|
|
|
1,422,845 |
|
|
1,683,209 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and benefits |
|
|
1,124,954 |
|
|
1,070,252 |
|
|
|
2,223,756 |
|
|
2,138,455 |
|
|
Occupancy and equipment |
|
|
242,680 |
|
|
243,604 |
|
|
|
491,153 |
|
|
499,905 |
|
|
Professional |
|
|
161,204 |
|
|
136,276 |
|
|
|
328,865 |
|
|
222,610 |
|
|
Marketing |
|
|
43,855 |
|
|
58,815 |
|
|
|
85,729 |
|
|
90,817 |
|
|
Deposit insurance premium |
|
|
77,868 |
|
|
112,375 |
|
|
|
157,076 |
|
|
228,180 |
|
|
Regulatory assessment |
|
|
22,530 |
|
|
37,955 |
|
|
|
51,415 |
|
|
74,441 |
|
|
Correspondent bank charges |
|
|
20,303 |
|
|
23,680 |
|
|
|
41,857 |
|
|
47,809 |
|
|
Data processing |
|
|
147,366 |
|
|
136,851 |
|
|
|
317,053 |
|
|
274,947 |
|
|
Printing, postage and supplies |
|
|
60,500 |
|
|
66,437 |
|
|
|
115,865 |
|
|
125,079 |
|
|
Expense on life insurance |
|
|
18,818 |
|
|
17,418 |
|
|
|
37,635 |
|
|
34,837 |
|
|
Contribution expense |
|
|
6,957 |
|
|
10,681 |
|
|
|
19,778 |
|
|
23,698 |
|
|
Other |
|
|
289,549 |
|
|
230,340 |
|
|
|
543,706 |
|
|
506,132 |
|
|
|
Total
noninterest expense |
|
|
2,216,584 |
|
|
2,144,684 |
|
|
|
4,413,888 |
|
|
4,266,910 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes |
|
|
1,004,767 |
|
|
1,001,320 |
|
|
|
1,793,310 |
|
|
1,682,956 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense |
|
|
234,809 |
|
|
143,742 |
|
|
|
385,479 |
|
|
295,342 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
769,958 |
|
$ |
857,578 |
|
|
$ |
1,407,831 |
|
$ |
1,387,614 |
|
Preferred stock dividends and discount accretion,
net |
|
|
117,504 |
|
|
117,504 |
|
|
|
235,008 |
|
|
235,008 |
|
Net income attributable to common shareholders |
|
$ |
652,454 |
|
$ |
740,074 |
|
|
$ |
1,172,823 |
|
$ |
1,152,606 |
|
|
|
|
|
|
|
Key Balances and Ratios |
|
|
|
|
|
|
Three Months Ended December 31 |
|
|
Six Months Ended December 31 |
|
|
|
|
2013 |
|
|
2012 |
|
|
2013 |
|
|
2012 |
|
|
|
|
Unaudited |
|
|
Unaudited |
|
|
Unaudited |
|
|
Unaudited |
|
Per common share data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings |
|
$ |
0.58 |
|
|
$ |
0.66 |
|
|
$ |
1.04 |
|
|
$ |
1.03 |
|
Diluted earnings |
|
$ |
0.58 |
|
|
$ |
0.66 |
|
|
$ |
1.04 |
|
|
$ |
1.03 |
|
Dividends paid |
|
$ |
0.11 |
|
|
$ |
0.11 |
|
|
$ |
0.22 |
|
|
$ |
0.11 |
|
Average shares issued and outstanding |
|
|
1,132,084 |
|
|
|
1,122,084 |
|
|
|
1,132,084 |
|
|
|
1,122,084 |
|
Shares outstanding end of period |
|
|
1,132,084 |
|
|
|
1,122,084 |
|
|
|
1,132,084 |
|
|
|
1,122,084 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin ** |
|
|
3.01 |
% |
|
|
2.92 |
% |
|
|
3.09 |
% |
|
|
2.98 |
% |
Return on average assets *** |
|
|
0.85 |
% |
|
|
1.01 |
% |
|
|
0.80 |
% |
|
|
0.83 |
% |
Return on average common equity *** |
|
|
10.73 |
% |
|
|
11.95 |
% |
|
|
9.74 |
% |
|
|
9.43 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31 |
|
|
June 30 |
|
|
|
|
|
|
|
|
|
|
|
|
2013 |
|
|
2013 |
|
|
|
|
|
|
|
|
|
Nonperforming assets * |
|
$ |
8,831,678 |
|
|
$ |
9,794,035 |
|
|
|
|
|
|
|
|
|
Repossessed assets |
|
$ |
408,245 |
|
|
$ |
813,386 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* |
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
260-563-3185
FFW (PK) (USOTC:FFWC)
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