Dallas, Texas (August 15, 2011) – StockGuru Shines its Spotlight on FFW Corporation (the “Corporation”) (OTCBB: FFWC) parent corporation of Crossroads Bank,which announced earnings on Friday, August 12, 2011, for the quarter and fiscal year ended June 30, 2011. The Company closed at $18.00 on August 12, 2011, trading in a fifty-two week range of $19.00 – 11.05.
For the twelve months ended June 30, 2011, the Corporation reported net income of $2,674,000, which is an increase of 35% over prior year net income of $1,980,000. Earnings per common share was $1.96 for the year ended June 30, 2011, which is 45% higher than the prior twelve month period earnings per common share of $1.35. The net interest margin for the twelve months ended June 30, 2011 was $9,868,000 compared to $9,909,000 for the twelve months ended June 30, 2010. The provision for loan losses was $1,445,000 for the twelve months ended June 30, 2011 and $1,830,000 for the twelve months ended June 30, 2010. Total noninterest income was $3,201,000 for the twelve months ended June 30, 2011 and $2,744,000 for the twelve months ended June 30, 2010. Noninterest expense was $7,990,000 for the twelve months ended June 30, 2011 and $8,371,000 for the twelve months ended June 30, 2010.
Roger K. Cromer, President and Chief Executive Officer, commented, “We are pleased with our performance for the year. We had solid loan demand during the last six months of the year. We will continue to focus our efforts on improving asset quality, controlling expenses and seeking new sources of revenue. We continue to have a solid deposit base, a very liquid balance sheet and adequate capital, so when the economy strengthens, we will be well positioned to participate in the growth.”
For the three months ended June 30, 2011, the Corporation reported net income of $737,000 or $0.55 per common share. This is compared to net income of $411,000 or $0.25 per common share for the three months ended June 30, 2010. The net interest margin for the three months ended June 30, 2011 was $2,592,000 compared to $2,435,000 for the three months ended June 30, 2010. The provision for loan losses increased from $210,000 for the period ended June 30, 2010 to $300,000 for the period ended June 30, 2011. Total noninterest income was $693,000 for the three months ended June 30, 2011 and $474,000 for the three months ended June 30, 2010. Noninterest expense was $1,992,000 for the three months ended June 30, 2011 and $2,214,000 for the three months ended June 30, 2010.
The three and twelve months ended June 30, 2011 represented a return on average common equity of 11.22% and 10.03%, respectively, compared to 5.51% and 7.14% for the three and twelve month periods ended June 30, 2010. The three and twelve months ended June 30, 2011 represented a return on average assets of 0.90% and 0.80%, respectively, compared to 0.48% and 0.59% for the three and twelve month periods ended June 30, 2010.
The allowance for loan losses as a percentage of gross loans receivable was 1.39% at June 30, 2011 and 1.57% at June 30, 2010. Nonperforming assets were $13,141,000 at June 30, 2011 and $8,695,000 at June 30, 2010.
As of June 30, 2011, FFWC’s equity-to-assets ratio was 9.23% compared to 8.64% at June 30, 2010. Total assets at June 30, 2011 were $323,018,000 compared to $333,564,000 at June 30, 2010. Shareholders’ equity was $29,830,000 at June 30, 2011 compared to $28,804,000 at June 30, 2010. Crossroads Bank exceeds all applicable regulatory requirements to be considered “well capitalized.”
Crossroads Bank is a wholly owned subsidiary of FFW Corporation providing an extensive array of banking services and a wide range of investments and securities products through its main office in Wabash and four Indiana banking centers located in Columbia City, North Manchester, South Whitley, and Syracuse. The Bank provides leasing services at its banking centers and its Carmel, IN leasing and commercial loan office. Insurance products are offered through an affiliated company, Insurance 1 Services, Inc. The corporation’s stock is traded on the OTC Bulletin Board under the symbol “FFWC.OB.” Our website address is www.crossroadsbanking.com.
|Selected Financial Information|
|Consolidated Balance Sheet|
|June 30||June 30|
|Cash and due from financial institutions||$||3,711,671||$||3,229,138|
|Interest-earning deposits in other financial institutions||2,840,994||7,386,372|
|Cash and cash equivalents||6,552,665||10,615,510|
|Securities available for sale||71,219,096||76,716,794|
|Loans receivable, net of allowance for loan losses of $3,147,896 at June 30, 2011 and $3,582,476 at June 30, 2010||222,348,968||224,135,086|
|Loans held for sale||241,400||40,000|
|Federal Home Loan Bank stock, at cost||2,717,300||3,627,100|
|Accrued interest receivable||1,635,370||1,645,286|
|Premises and equipment, net||3,695,172||3,889,487|
|Mortgage servicing rights||444,950||375,052|
|Cash surrender value of life insurance||6,655,864||6,374,995|
|Deferred tax asset||1,653,133||1,893,647|
|Liabilities and shareholders’ equity|
|Accrued expenses and other liabilities||1,662,503||1,230,602|
|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 June 30, 2011 and 2010, $7,334,000 liquidation preference||7,085,539||7,004,155|
|Series B, 9% Fixed Rate Cumulative Perpetual Preferred Stock – 364 shares outstanding June 30, 2011 and 2010, $368,000 liquidation preference||385,461||394,045|
|Common stock, $.01 par; 2,000,000 shares authorized;|
|outstanding: 1,121,884 shares – June 30, 2011 and 1,117,260 shares – June 30, 2010||18,363||18,363|
|Additional paid-in capital||9,435,162||9,440,356|
|Accumulated other comprehensive income||(223,833||)||104,080|
|Treasury stock, at cost: 714,444 shares – June 30, 2011 and 719,068 shares – June 30, 2010||(10,966,694||)||(11,037,672||)|
|Total shareholders’ equity||29,829,720||28,803,883|
|Total liabilities and shareholders’ equity||$||323,018,498||$||333,563,535|
|Selected Financial Information|
|Consolidated Statement of Income|
|Three Months Ended
|Twelve Months Ended
|Interest and dividend income:|
|Loans, including fees||$||3,056,603||$||3,250,464||$||12,217,074||$||13,725,393|
|Tax exempt securities||143,485||164,819||601,087||682,099|
|Total interest and dividend income||3,814,576||4,059,945||15,308,525||17,000,544|
|Total interest expense||1,222,340||1,624,592||5,440,876||7,091,202|
|Net interest income||2,592,236||2,435,353||9,867,649||9,909,342|
|Provision for loan losses||300,000||210,000||1,445,000||1,830,000|
|Net interest income after provision for loan losses||2,292,236||2,225,353||8,422,649||8,079,342|
|Net gains on sales of securities||142,850||(39,543||)||400,589||429,360|
|Net gains on sales of loans||26,464||79,208||480,642||284,566|
|Net gains (losses) on fixed assets||–||6,500||5,001||6,500|
|Other than temporary impairment on securities||–||(100,000||)||–||(250,000||)|
|Service charges and fees||276,003||229,973||1,318,363||1,135,202|
|Earnings on life insurance||70,243||71,082||280,870||280,674|
|Total noninterest income||692,707||473,685||3,201,473||2,744,414|
|Salaries and benefits||980,910||949,830||3,961,729||3,992,732|
|Occupancy and equipment||238,359||263,675||981,005||966,723|
|Deposit insurance premium||134,201||118,244||513,024||469,235|
|Correspondent bank charges||26,136||19,661||86,942||77,645|
|Printing, postage and supplies||63,032||56,138||231,767||245,245|
|Expense on life insurance||14,902||16,694||41,018||66,775|
|Total noninterest expense||1,992,429||2,213,786||7,990,441||8,370,738|
|Income before income taxes||992,514||485,252||3,633,681||2,453,018|
|Income tax expense||255,730||73,902||959,845||473,115|
|Preferred stock dividends and discount accretion, net||117,504||117,503||470,016||470,010|
|Net income attributable to common shareholders||$||619,280||$||293,847||$||2,203,820||$||1,509,893|
|Selected Financial Information|
|Three Months Ended
|Twelve Months Ended
|Per common share data:|
|Average shares issued and outstanding||1,121,884||1,117,260||1,122,694||1,114,397|
|Shares outstanding end of period||1,121,884||1,117,260||1,121,884||1,117,260|
|Net interest margin **||3.22||%||3.04||%||3.15||%||3.10||%|
|Return on average assets ***||0.90||%||0.48||%||0.80||%||0.59||%|
|Return on average common equity ***||11.22||%||5.51||%||10.03||%||7.14||%|
|June 30||June 30|
|Nonperforming assets *||$||13,140,830||$||8,694,798|
|*||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|
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