Business & Finance
Business and Finance
Business and Finance
Mon, August 17, 2009
Sun, August 16, 2009
Fri, August 14, 2009 FFW Corporation: FFW Corporation Announces Fourth Quarter and June 30, 2009 Year End Results
WABASH, IN--(Marketwire - August 14, 2009) - FFW Corporation (the "Corporation") (
For the three months ended June 30, 2009, the Corporation reported net income of $109,000. This is compared to net income of $565,000 for the quarter ended June 30, 2008. The earnings decrease for the fourth quarter of fiscal year 2009 reflected a decrease of approximately 80.7% over the same period in fiscal year 2008. The decrease is primarily due to an increase to the provision for loan losses, recognition of other-than-temporary impairments on certain securities and expense for the Federal Deposit Insurance Corporation (FDIC) special assessment insurance premium. During the quarter, the FDIC issued a final rule imposing a 5 basis point special assessment on depository institution's total assets (less Tier 1 capital) as reported at June 30, 2009. The special assessment is payable September 30, 2009.
For the twelve months ended June 30, 2009, the Corporation reported net loss of ($2,387,000). This is compared to net income of $2,602,000 for the twelve months ended June 30, 2008. The twelve month period ended June 30, 2009 includes security losses of approximately $7,743,000, an increase in the loan loss provision of $1,078,000 and an increase in FDIC insurance assessments of approximately $517,000. The security losses include the non-cash impairment charge of $6,692,000 related to certain Federal National Mortgage Association ("Fannie Mae") preferred stocks. These securities were sold prior to December 31, 2008.
Roger K. Cromer, President and Chief Executive Officer, stated, "The past fiscal year has proven to be very challenging financially to our company. Based on the current economic environment, we wrote down securities and continued to build our allowance for loan loss reserve. Our capital levels are strong and we had growth in loans and deposits during the year. While we are disappointed in our results, we believe the actions taken will preserve and protect our franchise value over the long term."
The three and twelve month periods ended June 30, 2009 represent a return on average common equity of (0.18%) and (12.57%), respectively. Return on average total assets for the three and twelve month periods ended June 30, 2009 was 0.16% and (0.74%).
The allowance for loan losses as a percentage of gross loans receivable was 1.53% at June 30, 2009 and 1.20% at June 30, 2008. Nonperforming assets increased to $4.8 million at June 30, 2009 from $3.3 million at June 30, 2008.
As of June 30, 2009, FFWC's equity-to-assets ratio was 8.26% compared to 7.46% at June 30, 2008. Total assets at June 30, 2009 were $332.6 million compared to $315.9 million at June 30, 2008. The combined $10.4 million increase in available for sale securities and net loans receivable was funded through a $17.4 million increase in total deposits. The deposit growth was also used to pay down outstanding Federal Home Loan Bank advances by $7.2 million. The $2.6 million increase in other assets was largely attributable to the deferred tax asset that resulted from the sale of Fannie Mae preferred stock. The $2.6 million increase in accrued expenses and other liabilities is attributable to a trade date payable for a security that was purchased prior to year-end, but did not settle until after year-end. Shareholders' equity was $27.5 million at June 30, 2009 compared to $23.6 million at June 30, 2008. 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 ].
FFW Corporation Selected Financial Information Consolidated Balance Sheet June 30 ---------------------------- 2009 2008 ------------- ------------- Unaudited Assets Cash and due from financial institutions $ 3,830,526 $ 6,095,999 Interest-earning deposits in other financial institutions - short term 7,284,371 2,347,131 ------------- ------------- Cash and cash equivalents 11,114,897 8,443,130 ------------- ------------- Securities available for sale 66,273,786 60,367,678 Loans receivable, net of allowance for loan losses of $3,605,204 at June 30, 2009 and $2,768,622 at June 30, 2008 232,378,508 227,839,891 Loans held for sale 1,049,519 77,000 Federal Home Loan Bank stock, at cost 3,627,100 3,627,100 Accrued interest receivable 1,425,374 1,560,163 Premises and equipment, net 4,096,623 4,040,369 Mortgage servicing rights 392,839 488,452 Cash surrender value of life insurance 6,094,321 5,815,227 Goodwill 1,213,898 1,213,898 Other assets 4,964,787 2,412,579 ------------- ------------- Total assets $ 332,631,652 $ 315,885,487 ============= ============= Liabilities Noninterest-bearing deposits $ 12,924,010 $ 13,737,624 Interest-bearing deposits 248,643,498 230,446,720 ------------- ------------- Total deposits 261,567,508 244,184,344 ------------- ------------- Federal Home Loan Bank advances 38,098,030 45,283,087 Accrued expenses and other liabilities 5,477,874 2,856,193 ------------- ------------- Total liabilities 305,143,412 292,323,624 ------------- ------------- Shareholders' equity Preferred stock, $.01 par; 500,000 shares authorized; Series A, 5% Fixed Rate Cumulative Perpetual Preferred Stock - 7,289 shares outstanding March 31, 2009 6,922,771 --- Series B, 9% Fixed Rate Cumulative Perpetual Preferred Stock - 364 shares outstanding March 31, 2009 402,629 --- Common stock, $.01 par; 2,000,000 shares authorized; 18,363 18,363 issued: 1,836,328, outstanding: 1,112,260 - June 30, 2009 issued: 1,836,328, outstanding: 1,100,260 - June 30, 2008 Additional paid-in capital 9,448,627 9,530,608 Retained earnings 22,351,652 25,965,339 Accumulated other comprehensive income (loss) (541,380) (653,825) Treasury stock at cost, shares: 724,068 - June 30, 2009 and 736,068 - June 30, 2008 (11,114,422) (11,298,622) ------------- ------------- Total shareholders' equity 27,488,240 23,561,863 ------------- ------------- ------------- ------------- Total liabilities and shareholders' equity $ 332,631,652 $ 315,885,487 ============= ============= Consolidated Statement of Income Three Months Ended June 30 Twelve Months Ended June 30 -------------------------- -------------------------- 2009 2008 2009 2008 ------------ ------------ ------------ ------------ Unaudited Unaudited Unaudited Interest and dividend income: Loans, including fees $ 3,610,537 $ 3,762,848 $ 15,126,609 $ 15,549,609 Taxable securities 591,655 733,397 2,453,482 2,752,774 Nontaxable securities 179,786 156,473 731,171 608,708 Other 5,300 24,988 38,750 109,255 ------------ ------------ ------------ ------------ Total interest and dividend income 4,387,278 4,677,706 18,350,012 19,020,346 ------------ ------------ ------------ ------------ Interest expense: Deposits 1,475,880 1,783,400 6,478,769 7,619,880 Borrowings 459,203 526,918 1,902,819 2,576,098 ------------ ------------ ------------ ------------ Total interest expense 1,935,083 2,310,318 8,381,588 10,195,978 ------------ ------------ ------------ ------------ Net interest income 2,452,195 2,367,388 9,968,424 8,824,368 Provision for loan losses 451,000 242,000 1,680,000 602,000 Net interest income after provision for loan losses 2,001,195 2,125,388 8,288,424 8,222,368 Noninterest income: Net gains on sales of securities - 11,719 (494,668) 70,944 Net gains on sales of loans 201,401 43,056 539,435 197,464 Net gains (losses) on fixed assets (3,332) - (3,232) - Other than temporary impairment on securities Total impairment losses (556,140) (308,000) (7,662,623) (308,000) Loss recognized in other comprehensive income - - 414,483 - ------------ ------------ ------------ ------------ Net impairment loss recognized in earnings (556,140) (308,000) (7,248,140) (308,000) Commission income 132,651 135,164 551,205 534,276 Service charges and fees 376,596 396,153 1,021,482 1,164,627 Earnings on life insurance 68,762 68,435 292,313 268,707 Other 25,034 29,091 139,402 204,938 ------------ ------------ ------------ ------------ Total noninterest income (loss) 244,972 375,618 (5,202,203) 2,132,956 ------------ ------------ ------------ ------------ Noninterest expense: Salaries and benefits 869,491 908,478 3,623,268 3,496,775 Occupancy and equipment 225,013 220,832 867,610 838,517 Professional 97,822 42,045 286,979 213,365 Marketing 44,153 46,158 158,035 268,311 Deposit insurance premium 387,880 5,970 541,755 24,338 Regulatory assessment 23,946 22,187 94,053 87,590 Correspondent bank charges 18,793 22,339 76,938 88,136 Data processing 168,846 135,026 557,655 561,664 Printing, postage and supplies 53,421 60,449 235,614 217,729 Expense on life insurance 14,445 24,759 74,635 76,076 Contribution expense 13,760 21,106 53,123 40,886 Other 183,699 238,057 848,278 987,099 ------------ ------------ ------------ ------------ Total noninterest expense 2,101,269 1,747,406 7,417,943 6,900,486 ------------ ------------ ------------ ------------ Income (loss) before income taxes 144,898 753,600 (4,331,722) 3,454,838 Income tax expense (benefit) 36,355 188,781 (1,945,065) 852,849 ------------ ------------ ------------ ------------ Net income (loss) $ 108,543 $ 564,819 $ (2,386,657) $ 2,601,989 ============ ============ ============ ============ Preferred stock dividends 117,503 - 248,245 - ------------ ------------ ------------ ------------ Net income (loss) applicable to common stock $ (8,960) $ 564,819 $ (2,634,902) $ 2,601,989 ============ ============ ============ ============ Three Months Ended Twelve Months Ended June 30 June 30 ------------------------ ------------------------ 2009 2008 2009 2008 ----------- ----------- ----------- ----------- Unaudited Unaudited Unaudited Per common share data: Earnings $ (0.00) $ 0.51 $ (2.38) $ 2.24 Diluted earnings $ (0.00) $ 0.51 $ (2.38) $ 2.23 Dividends paid $ 0.22 $ 0.21 $ 0.88 $ 0.84 Average shares issued and outstanding 1,112,260 1,100,459 1,111,433 1,159,847 Shares outstanding end of period 1,112,260 1,100,260 1,112,260 1,100,260 Supplemental data: Net interest margin ** 3.16% 3.22% 3.28% 3.10% Return on average assets *** 0.16% 0.71% -0.74% 0.86% Return on average common equity *** -0.18% 9.32% -12.57% 10.26% June 30 ------------------------ 2009 2008 ----------- ----------- Nonperforming assets * $ 4,829,152 $ 3,262,262 Repossessed assets $ 1,334,259 $ 846,785 * Includes non-accruing loans, accruing loans delinquent more than 90 days and foreclosed assets ** Yields reflected have not been computed on a tax equivalent basis *** Annualized
