Business & Finance
Business and FinanceBusiness and Finance 
Thu, October 29, 2009
Wed, October 28, 2009
FFW Corporation Announces Earnings for the Quarter Ended September 30, 2009
WABASH, IN--(Marketwire - October 28, 2009) - FFW Corporation (the "Corporation") (
For the three months ended September 30, 2009, the Corporation reported net income of $553,000 or $0.39 per common share. This is compared to net loss of ($3,155,000) for the quarter ended September 30, 2008. The period ended September 30, 2009 includes a non-cash impairment charge, net of the tax benefit, of $3,945,000 related to certain Federal National Mortgage Association ("Fannie Mae") preferred stocks. These securities were sold prior to December 31, 2008. The earnings in the quarter ended September 30, 2009 reflect a net interest margin of $2,547,000, which is down only 5.3% from the prior year same quarter. The provision for loan losses was $410,000 for the three months ended September 30, 2009 and $429,000 for the three months ended September 30, 2008. Noninterest income was $628,000 for the quarter ended September 30, 2009 as compared to noninterest loss of ($6,151,000) for the quarter ended September 30, 2008. The noninterest loss includes the Fannie Mae impairment charge. Noninterest expense increased from $1,768,000 for the three months ended September 30, 2008 to $2,051,000 for the three months ended September 30, 2009. Noninterest expenses will be impacted in the current year by deposit insurance premiums and costs associated with the core data processor conversion scheduled for the spring of 2010. This conversion is expected to increase efficiency and functionality.
Emily Boardman, Vice President and Chief Financial Officer, stated, "This first fiscal quarter has sparked enthusiasm within the Company for the coming year. We are squarely focused on capital preservation and capital growth and ensuring the loan loss allowance is adequate to absorb anticipated losses."
"While there are still unavoidable challenges expected in the coming year, there are also opportunities," said Roger Cromer, President and Chief Executive Officer. "We feel we are well equipped to meet those challenges and capitalize on select opportunities to build for the future."
The three month period ended September 30, 2009 represents a return on average common equity of 8.31% compared to (56.49%) for the three month period ended September 30, 2008. Return on average total assets for the three months ended September 30, 2009 and 2008 was 0.66% and (3.94%), respectively.
The allowance for loan losses as a percentage of gross loans receivable was 1.57% at September 30, 2009 and 1.53% at June 30, 2009. Nonperforming assets increased to $5.1 million at September 30, 2009 from $4.8 million at June 30, 2009.
As of September 30, 2009, FFWC's equity-to-assets ratio was 8.40% compared to 8.26% at June 30, 2009. Total assets at September 30, 2009 were $335.6 million compared to $332.6 million at June 30, 2009. Shareholders' equity was $28.2 million at September 30, 2009 compared to $27.5 million at June 30, 2009. 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 September 30 June 30 ------------- ------------- 2009 2009 ------------- ------------- Unaudited Assets Cash and due from financial institutions $ 9,980,835 $ 3,830,526 Interest-earning deposits in other financial institutions - short term 1,416,330 7,284,371 ------------- ------------- Cash and cash equivalents 11,397,165 11,114,897 ------------- ------------- Securities available for sale 68,819,028 66,273,786 Loans receivable, net of allowance for loan losses of $3,723,422 at September 30, 2009 and $3,605,204 at June 30, 2009 233,429,064 232,378,508 Loans held for sale 278,376 1,049,519 Federal Home Loan Bank stock, at cost 3,627,100 3,627,100 Accrued interest receivable 1,632,256 1,425,374 Premises and equipment, net 4,059,590 4,096,623 Mortgage servicing rights 378,020 392,839 Cash surrender value of life insurance 6,163,519 6,094,321 Goodwill 1,213,898 1,213,898 Deferred tax asset 2,357,544 2,357,544 Other assets 2,222,884 2,607,243 ------------- ------------- Total assets $ 335,578,444 $ 332,631,652 ============= ============= Liabilities Noninterest-bearing deposits $ 14,219,016 $ 12,924,010 Interest-bearing deposits 251,810,814 248,643,498 ------------- ------------- Total deposits 266,029,830 261,567,508 ------------- ------------- Federal Home Loan Bank advances 38,098,030 38,098,030 2,066,806 2,066,806 Accrued expenses and other liabilities 1,180,555 3,411,068 ------------- ------------- Total liabilities 307,375,221 305,143,412 ------------- ------------- 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, 2009, $7,289,000 liquidation preference 6,943,117 6,922,771 Series B, 9% Fixed Rate Cumulative Perpetual Preferred Stock - 364 shares outstanding September 30, 2009, $364,000 liquidation preference 400,483 402,629 Common stock, $.01 par; 2,000,000 shares authorized; 18,363 18,363 issued: 1,836,328 outstanding: 1,112,260 Additional paid-in capital 9,464,810 9,448,627 Retained earnings 22,542,765 22,351,652 Accumulated other comprehensive (loss) (51,893) (541,380) Treasury stock, at cost; 724,068 shares (11,114,422) (11,114,422) ------------- ------------- Total shareholders' equity 28,203,223 27,488,240 ------------- ------------- ------------- ------------- Total liabilities and shareholders' equity $ 335,578,444 $ 332,631,652 ============= ============= Consolidated Statement of Income Three Months Ended September 30 --------------------------- 2009 2008 ------------- ------------ Unaudited Unaudited Interest and dividend income: Loans, including fees $ 3,637,935 $ 4,125,833 Taxable securities 657,687 708,103 Nontaxable securities 178,924 176,715 Other 4,826 22,546 ------------- ------------ Total interest and dividend income 4,479,372 5,033,197 ------------- ------------ Interest expense: Deposits 1,467,922 1,836,626 Borrowings 464,452 506,713 ------------- ------------ Total interest expense 1,932,374 2,343,339 ------------- ------------ Net interest income 2,546,998 2,689,858 Provision for loan losses 410,000 429,000 Net interest income after provision for loan losses 2,136,998 2,260,858 Noninterest income: Net gains (losses) on sales of securities 2,371 - Net gains on sales of loans 91,419 19,808 Net gains (losses) on fixed assets - - Other than temporary impairment on securities Total impairment losses - (6,692,000) Losses recognized in other comprehensive income - - ------------- ------------ Net impairment loss recognized in earnings - (6,692,000) Commission income 152,972 146,322 Service charges and fees 278,115 306,128 Earnings on life insurance 69,198 69,773 Other 34,327 (1,106) ------------- ------------ Total noninterest income (loss) 628,402 (6,151,075) ------------- ------------ Noninterest expense: Salaries and benefits 1,008,151 916,443 Occupancy and equipment 235,798 203,978 Professional 71,270 53,997 Marketing 39,993 50,430 Deposit insurance premium 118,177 39,079 Regulatory assessment 24,299 23,081 Correspondent bank charges 19,420 21,512 Data processing 132,873 130,320 Printing, postage and supplies 68,245 57,644 Expense on life insurance 16,694 24,874 Contribution expense 13,417 12,541 Other 302,583 233,711 ------------- ------------ Total noninterest expense 2,050,920 1,767,610 ------------- ------------ Income (loss) before income taxes 714,480 (5,657,827) Income tax expense (benefit) 161,170 (2,502,564) ------------- ------------ Net income (loss) $ 553,310 $ (3,155,263) ============= ============ Preferred stock dividends and discount accretion, net 117,503 - ------------- ------------ Net income (loss) attributable to common shareholders $ 435,807 $ (3,155,263) ============= ============ Three Months Ended September 30 ------------------------ 2009 2008 ----------- ----------- Unaudited Unaudited Per common share data: Earnings $ 0.39 $ (2.88) Diluted earnings $ 0.39 $ (2.88) Dividends paid $ 0.22 $ 0.22 Average shares issued and outstanding 1,112,260 1,108,977 Shares outstanding end of period 1,112,260 1,112,260 Supplemental data: Net interest margin ** 3.19% 3.53% Return on average assets *** 0.66% -3.94% Return on average common equity *** 8.31% -56.49% September 30 June 30 ----------- ----------- 2009 2009 ----------- ----------- Nonperforming assets * $ 5,113,193 $ 4,829,152 Repossessed assets $ 1,384,985 $ 1,334,259 * 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