FFW Corporation Announces Earnings for the Quarter Ended September 30, 2013

WABASH, IN--(Marketwired - Oct 23, 2013) - FFW Corporation (the "Corporation") (OTCBB: FFWC) (10/22/2013 Close: $17.00), parent corporation of Crossroads Bank, announced earnings for the three months ended September 30, 2013.

For the three months ended September 30, 2013, the Corporation reported net income of $638,000 or $0.46 per common share compared to $530,000 or $0.37 per common share for the three months ended September 30, 2012. The net interest margin for the three months ended September 30, 2013 was $2,560,000 compared to $2,365,000 for the three months ended September 30, 2012. The provision for loan losses decreased from $210,000 for the period ended September 30, 2012 to $180,000 for the period ended September 30, 2013. Total noninterest income was $606,000 for the three months ended September 30, 2013 compared to $648,000 for the three months ended September 30, 2012. Noninterest expense was $2,197,000 for the three months ended September 30, 2013 and $2,122,000 for the three months ended September 30, 2012.

The three months ended September 30, 2013 represented a return on average common equity of 8.75%, compared to 6.85% for the three month period ended September 30, 2012. The three months ended September 30, 2013 represented a return on average assets of 0.75%, compared to 0.64% for the three month period ended September 30, 2012.

The allowance for loan losses as a percentage of gross loans receivable was 1.36% at September 30, 2013 compared to 1.43% at June 30, 2013. Nonperforming assets were $9,057,000 at September 30, 2013 compared to $9,794,000 at June 30, 2013.

As of September 30, 2013, FFWC's equity-to-assets ratio was 9.15% compared to 9.27% at June 30, 2013. Total assets at September 30, 2013 were $339,852,000 compared to $337,818,000 at June 30, 2013. Shareholders' equity was $31,107,000 at September 30, 2013 compared to $31,322,000 at June 30, 2013. Crossroads Bank exceeds all applicable regulatory requirements to be considered "well capitalized."

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.

   
   
FFW Corporation  
Selected Financial Information  
   
Consolidated Balance Sheet  
   
    September 30     June 30  
    2013     2013  
    Unaudited        
Assets                
Cash and due from financial institutions   $ 6,031,436     $ 4,353,619  
Interest-earning deposits in other financial institutions     6,095,134       11,647,346  
  Cash and cash equivalents     12,126,570       16,000,965  
                 
Securities available for sale     81,946,426       85,122,447  
Loans receivable, net of allowance for loan losses of $3,091,000 at September 30, 2013 and $3,132,000 at June 30, 2013     224,092,935       215,347,079  
Loans held for sale     695,600       113,600  
Federal Home Loan Bank stock, at cost     2,717,300       2,717,300  
Accrued interest receivable     1,850,563       1,719,787  
Premises and equipment, net     3,274,516       3,348,926  
Mortgage servicing rights     625,129       629,050  
Cash surrender value of life insurance     7,274,118       7,206,897  
Goodwill     1,213,898       1,213,898  
Deferred tax asset     2,607,754       2,392,638  
Other assets     1,426,805       2,005,096  
  Total assets   $ 339,851,614     $ 337,817,683  
                 
Liabilities and shareholders' equity                
Deposits                
  Noninterest-bearing deposits   $ 30,866,048     $ 27,397,357  
  Interest-bearing deposits     272,844,125       272,581,131  
    Total deposits     303,710,173       299,978,488  
                 
Borrowings     3,258,400       4,758,400  
Accrued expenses and other liabilities     1,776,283       1,758,769  
  Total liabilities     308,744,856       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 September 30, 2013, $7,335,000 liquidation preference     7,268,654       7,248,308  
  Series B, 9% Fixed Rate Cumulative Perpetual Preferred Stock - 364 shares outstanding September 30, 2013, $368,000 liquidation preference     366,146       368,292  
Common stock, $.01 par; 2,000,000 shares authorized;                
  issued shares: 1,836,328                
  outstanding shares: 1,132,084 at September 30, 2013 and 1,122,084 at June 30, 2013     18,363       18,363  
Additional paid-in capital     9,396,224       9,531,646  
Retained earnings     26,133,400       25,737,557  
Accumulated other comprehensive income     (1,265,905 )     (618,516 )
Treasury stock, at cost: 704,244 shares at September 30, 2013 and 714,244 at June 30, 2013     (10,810,124 )     (10,963,624 )
  Total shareholders' equity     31,106,758       31,322,026  
                 
  Total liabilities and shareholders' equity   $ 339,851,614     $ 337,817,683  
                   
                   
                   
FFW Corporation  
Selected Financial Information  
   
Consolidated Statement of Income  
   
    Three Months Ended September 30  
    2013   2012  
    Unaudited   Unaudited  
Interest and dividend income:              
  Loans, including fees   $ 2,655,870   $ 2,712,413  
  Taxable securities     347,313     558,432  
  Tax exempt securities     298,478     132,327  
  Other     9,066     4,127  
    Total interest and dividend income     3,310,727     3,407,299  
               
Interest expense:              
  Deposits     705,113     914,777  
  Borrowings     45,309     127,033  
    Total interest expense     750,422     1,041,810  
               
Net interest income     2,560,305     2,365,489  
               
Provision for loan losses     180,000     210,000  
               
Net interest income after provision for loan losses     2,380,305     2,155,489  
               
Noninterest income:              
  Net gains on sales of securities     -     (7,277 )
  Net gains on sales of loans     43,633     177,002  
  Other than temporary impairment on securities     -     (658 )
  Commission income     211,458     197,675  
  Service charges and fees     263,892     189,663  
  Earnings on life insurance     67,221     66,362  
  Other     19,338     25,604  
    Total noninterest income     605,542     648,371  
               
Noninterest expense:              
  Salaries and benefits     1,098,801     1,068,203  
  Occupancy and equipment     248,474     256,300  
  Professional     167,661     86,333  
  Marketing     41,874     32,003  
  Deposit insurance premium     79,208     115,805  
  Regulatory assessment     28,885     36,486  
  Correspondent bank charges     21,553     24,129  
  Data processing     169,686     138,096  
  Printing, postage and supplies     55,365     58,641  
  Expense on life insurance     18,818     17,418  
  Contribution expense     12,821     13,017  
  Other     254,153     275,791  
    Total noninterest expense     2,197,299     2,122,222  
               
Income before income taxes     788,548     681,638  
               
Income tax expense     150,670     151,600  
               
Net income   $ 637,878   $ 530,038  
Preferred stock dividends and discount accretion, net     117,504     117,504  
Net income attributable to common shareholders   $ 520,374   $ 412,534  
               
               
               
FFW Corporation  
Selected Financial Information  
   
Key Balances and Ratios  
        Three Months Ended September 30  
        2013     2012  
        Unaudited     Unaudited  
Per common share data:                
Earnings   $ 0.46     $ 0.37  
Diluted earnings   $ 0.46     $ 0.37  
Dividends paid   $ 0.11     $ 0.00  
Average shares issued and outstanding     1,132,084       1,122,084  
Shares outstanding end of period     1,132,084       1,122,084  
                     
Supplemental data:                
Net interest margin **     3.17 %     3.04 %
Return on average assets ***     0.75 %     0.64 %
Return on average common equity ***     8.75 %     6.85 %
                     
          September 30       June 30  
          2013       2013  
Nonperforming assets *   $ 9,057,146     $ 9,794,035  
Repossessed assets   $ 406,195     $ 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

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