FFW Corporation Announces Earnings for the Quarter and Year to Date Ended December 31, 2016

WABASH, Ind., Jan. 25, 2017 -- FFW Corporation (the “Corporation”) (OTC PINK:FFWC) (1/24/17 Close: $32.00), parent corporation of Crossroads Bank (the “Bank”), announced earnings for the three and six months ended December 31, 2016.

For the three months ended December 31, 2016, the Corporation reported net income of $1,048,000 or $0.88 per common share compared to $916,000 or $0.76 per common share for the three months ended December 31, 2015. Net interest income for the three months ended December 31, 2016 was $2,861,000 compared to $2,856,000 for the three months ended December 31, 2015. The provision for loan losses was $50,000 for the three months ended December 31, 2016 and $40,000 for the three months ended December 31, 2015. Total noninterest income was $1,200,000 for the three months ended December 31, 2016 compared to $1,027,000 for the three months ended December 31, 2015. Noninterest expense was $2,672,000 for the three months ended December 31, 2016 and $2,678,000 for the three months ended December 31, 2015.

For the six months ended December 31, 2016, the Corporation reported net income of $2,085,000 or $1.75 per common share compared to $1,866,000 or $1.56 per common share for the six months ended December 31, 2015. Net interest income for the six months ended December 31, 2016 was $5,768,000 compared to $5,747,000 for the six months ended December 31, 2015. The provision for loan losses was $243,000 for the six months ended December 31, 2016 and $120,000 for the six months ended December 31, 2015. Total noninterest income was $2,611,000 for the six months ended December 31, 2016 compared to $2,194,000 for the six months ended December 31, 2015. Noninterest expense was $5,466,000 for the six months ended December 31, 2016 and $5,439,000 for the six months ended December 31, 2015.

The three and six months ended December 31, 2016 represented a return on average common equity of 11.25% and 11.20%, respectively, compared to 10.73% and 11.13% for the three and six month periods ended December 31, 2015. The three and six months ended December 31, 2016 represented a return on average assets of 1.18% and 1.19%, respectively, compared to 1.08% and 1.11%, for the three and six month periods ended December 31, 2015.

The allowance for loan losses as a percentage of gross loans receivable was 1.47% at December 31, 2016 compared to 1.52% at June 30, 2016. Nonperforming assets were $5,200,000 at December 31, 2016 compared to $6,700,000 at June 30, 2016.

As of December 31, 2016, FFWC’s equity-to-assets ratio was 10.66% compared to 10.98% at June 30, 2016. Total assets at December 31, 2016 were $351,831,000 compared to $340,987,000 at June 30, 2016. Shareholders’ equity was $37,519,000 at December 31, 2016 compared to $37,449,000 at June 30, 2016. 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 five Indiana banking centers located in Columbia City, North Manchester, Peru, 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.

This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include expressions such as “expects,” “intends,” “believes,” and “should,” which are statements of belief as to the expected outcomes of future events. Actual results could materially differ from those presented. The Corporation's ability to predict future results involves a number of risks and uncertainties. The Corporation undertakes no obligation to release revisions to these forward-looking statements or reflect events or circumstances after the date of this release.


FFW Corporation
Selected Financial Information

Consolidated Balance Sheet

		December 31			June 30
			2016			2016
		Unaudited
Assets
Cash and due from financial institutions		$	4,995,102		$	4,031,546
Interest-bearing deposits in other financial institutions			15,464,553			6,188,392
	Cash and cash equivalents		20,459,655			10,219,938

Securities available for sale			78,333,042			79,011,265
Loans receivable, net of allowance for loan losses of $3,448,882 at
	December 31, 2016 and $3,557,769 at June 30, 2016		229,858,809			229,454,626
Loans held for sale			1,694,382			854,375
Federal Home Loan Bank stock, at cost			1,462,500			1,462,500
Accrued interest receivable			1,769,497			1,760,537
Premises and equipment, net			5,696,299			5,193,270
Mortgage servicing rights			801,493			660,784
Cash surrender value of life insurance			8,164,868			8,022,990
Goodwill			1,213,898			1,213,898
Repossessed Assets			572,455			2,062,708
Other assets			1,804,157			1,070,211
	Total assets	$	351,831,055		$	340,987,102

Liabilities and shareholders' equity
Deposits
	Noninterest-bearing	$	30,712,691		$	25,032,689
	Interest-bearing		275,050,508			254,123,833
	Total deposits		305,763,199			279,156,522

Borrowings			6,518,400			21,698,400
Accrued expenses and other liabilities			2,030,430			2,682,835
	Total liabilities		314,312,029			303,537,757

Shareholders' equity
Preferred stock, $.01 par; $1,000 liquidation value per share, 500,000 shares authorized;
	Series C, 5% Fixed Rate Cumulative Perpetual Preferred Stock - 2,250 shares outstanding December 31, 2016 and June 30, 2016, $2,264,000 liquidation preference at December 31, 2016 and June 30, 2016		2,250,000			2,250,000
Common stock, $.01 par; 2,000,000 shares authorized;
	Issued: 1,836,328; outstanding: 1,160,084 - December 31, 2016 and 1,156,084 - June 30, 2016		18,363			18,363
Additional paid-in capital			9,481,571			9,358,395
Retained earnings			35,687,697			34,053,094
Accumulated other comprehensive income			461,819			2,211,217
Treasury stock, at cost: 676,244 shares at December 31, 2016 and 680,244 shares at June 30, 2016			(10,380,424	)		(10,441,724	)
	Total shareholders' equity		37,519,026			37,449,345

	Total liabilities and shareholders' equity	$	351,831,055		$	340,987,102

FFW Corporation
Selected Financial Information

Consolidated Statement of Income

			Three Months Ended December 31					Six Months Ended December 31
				2016		2015			2016			2015
			Unaudited		Unaudited			Unaudited			Unaudited
Interest and dividend income:
	Loans, including fees		$	2,696,618	$	2,625,285		$	5,428,645		$	5,284,019
	Taxable securities			306,037		314,618			615,427			634,845
	Tax exempt securities			269,413		254,357			525,746			502,181
	Other			9,007		6,278			16,447			10,389
		Total interest and dividend income		3,281,075		3,200,538			6,586,265			6,431,434

Interest expense:
	Deposits			395,163		316,270			756,095			613,383
	Borrowings			24,434		28,554			62,263			70,643
		Total interest expense		419,597		344,824			818,358			684,026

Net interest income				2,861,478		2,855,714			5,767,907			5,747,408

Provision for loan losses				50,000		40,000			243,000			120,000

Net interest income after provision for
	loan losses			2,811,478		2,815,714			5,524,907			5,627,408

Noninterest income:
	Net gains on sales of securities			-		-			120,409			-
	Net gains on sales of loans			83,245		121,222			280,552			263,817
	Net gains (losses) on fixed assets			-		(1,352	)		(1,712	)		(1,352	)
	Commission income			235,363		239,586			477,338			486,954
	Service charges and fees			302,935		235,842			517,670			412,850
	Earnings on life insurance			71,174		70,106			141,878			139,086
	Income from REO			219,800		267,342			647,115			672,451
	Other			287,218		94,545			427,870			219,754
		Total noninterest income		1,199,735		1,027,291			2,611,120			2,193,560

Noninterest expense:
	Salaries and benefits			1,329,381		1,267,105			2,639,499			2,520,402
	Occupancy and equipment			298,284		274,297			575,889			556,810
	Professional			104,711		168,955			252,357			382,247
	Marketing			111,107		54,780			188,371			116,192
	Deposit insurance premium			5,993		58,037			66,743			116,620
	Regulatory assessment			7,167		41,500			14,479			80,500
	Correspondent bank charges			9,624		16,144			25,270			30,461
	Data processing			126,556		108,192			252,200			208,590
	Printing, postage and supplies			58,303		66,265			126,513			139,082
	Expense on life insurance			23,489		21,913			47,111			43,826
	Contribution expense			6,605		10,060			22,320			19,448
	Expense on REO			296,969		307,726			677,929			646,438
	Other			293,816		282,754			577,767			578,193
		Total noninterest expense		2,672,005		2,677,728			5,466,448			5,438,809

Income before income taxes				1,339,208		1,165,277			2,669,579			2,382,159

Income tax expense				291,453		249,289			584,128			515,922

Net income			$	1,047,755	$	915,988		$	2,085,451		$	1,866,237
Preferred stock dividends				28,125		40,625			56,250			81,250
Net income attributable to common shareholders			$	1,019,630	$	875,363		$	2,029,201		$	1,784,987

FFW Corporation
Selected Financial Information

Key Balances and Ratios

		Three Months Ended December 31						Six Months Ended December 31
			2016			2015			2016			2015
		Unaudited			Unaudited			Unaudited			Unaudited
Per common share data:
Earnings		$	0.88		$	0.76		$	1.75		$	1.56
Diluted earnings		$	0.88		$	0.76		$	1.75		$	1.56
Dividends paid		$	0.17		$	0.15		$	0.34		$	0.30
Average shares issued and outstanding			1,160,301			1,147,041			1,159,388			1,144,562
Shares outstanding end of period			1,160,084			1,154,084			1,160,084			1,154,084

Supplemental data:
Net interest margin **			3.49	%		3.67	%		3.56	%		3.70	%
Return on average assets ***			1.18	%		1.08	%		1.19	%		1.11	%
Return on average common equity ***			11.25	%		10.73	%		11.20	%		11.13	%

		December 31			June 30
			2016			2016
Nonperforming assets *		$	5,200,163		$	6,699,913
Repossessed assets		$	572,455		$	2,062,708

*	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, at 260-563-3185

FFW Corporation Announces Earnings for the Quarter and Year to Date Ended December 31, 2016

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