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Home : Leasing Services : FFW Corporation Announces Earnings for the Quarter and Six Months Ended December 31 2007
FFW Corporation Announces Earnings for the Quarter and Six Months Ended December 31 2007 FFW Corporation (OTCBB: FFWC) (1/22/2008 Close: $23.00), parent corporation of Crossroads Bank, formerly First Federal Savings Bank of Wabash, announced operating results for the second fiscal quarter of 2008 and six months ended December 31, 2007. Net income and diluted net income per share for the three months ended December 31, 2007 were $651,000 and $0.55 compared to $695,000 and $0.56 at December 31, 2006. Net income and diluted net income per share for the six months ended December 31, 2007 were $1,285,000 and $1.08 compared to $1,626,000 and $1.31 at December 31, 2006.
Net interest income increased $302,000 or 7.7% from the prior fiscal year to date. The increase is due to both interest earning assets and interest bearing liabilities responding to the current rate environment. Noninterest income decreased $315,000 or 21.7% from the prior fiscal year to date. The decrease is due to a fiscal year 2007 gain on sales of certain securities that did not recur in fiscal year 2008. The decrease in noninterest income was offset by a swing in sales of repossessed assets of $39,000. Noninterest expense increased $111,000 or 3.4% from the prior fiscal year to date. The increase was significantly due to planned increases in salaries and benefits and expenses associated with the bank name change. Net income was also impacted by an increase in income tax expense of $216,000 from the prior fiscal year to date. Roger K. Cromer, President and Chief Executive Officer, stated, "We are pleased with our solid performance for the quarter. During the quarter, we surpassed $300 million in assets and continue to improve our net interest margin from the prior year. We also completed our name change to Crossroads Bank. This was a strategic decision as a number of competitors in our current and future markets also use the 'First Federal' name." The fiscal 2008 second quarter and year to date earnings represent a return on average shareholders' equity of 10.14% and 10.07% compared to 10.91% and 13.00% for the periods ended December 31, 2006. Return on average total assets for the three and six-month periods ended December 31, 2007 were 0.87% and 0.87% compared to 0.97% and 1.14% for the periods ended December 31, 2006. The allowance for loan losses as a percentage of net loans receivable was 1.31% at December 31, 2007 and 1.26% at June 30, 2007. Nonperforming assets were $2.7 million at December 31, 2007 compared to $2.5 million at June 30, 2007. As of December 31, 2007, FFWC's equity-to-assets ratio was 8.34% compared to 8.60% at June 30, 2007. Shareholders' equity was $25.7 million compared to $25.0 million at June 30, 2007. Total assets at December 31, 2007 were $307.6 million compared to $290.5 million at June 30, 2007. Cash and cash equivalents increased $2.3 million from June 30, 2007 to December 31, 2007 while securities available for sale increased by $7.2 million. Total deposits at December 31, 2007 increased by $10.4 million from June 30, 2007 while total FHLB borrowings increased by $6.5 million. 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 banking centers located in Columbia City, North Manchester, South Whitley, and Syracuse, IN. 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 Sheets 12/31/2007 6/30/2007 ------------- ------------- Unaudited ------------- Assets Cash and due from financial institutions $ 6,691,047 $ 5,250,292 Interest-earning deposits in other financial institutions - short term 3,207,451 2,372,525 ------------- ------------- Cash and cash equivalents 9,898,498 7,622,817 Securities available for sale 62,849,492 55,673,248 Loans receivable, net of allowance for loan losses of $2,856,109 at December 31, 2007 and $2,654,064 at June 30, 2007 215,263,661 207,776,065 Loans held for sale 271,875 178,250 Federal Home Loan Bank stock, at cost 3,627,100 3,627,100 Accrued interest receivable 2,178,490 1,730,689 Premises and equipment, net 4,131,542 4,184,657 Mortgage servicing rights 457,037 572,548 Cash surrender value of life insurance 5,696,406 5,579,962 Goodwill 1,213,898 1,213,898 Other assets 2,038,640 2,386,208 ------------- ------------- Total Assets $ 307,626,639 $ 290,545,442 ============= ============= Liabilities and Shareholders' Equity Liabilities: Noninterest-bearing deposits $ 12,549,807 $ 13,706,178 Interest-bearing deposits 208,295,481 196,758,171 ------------- ------------- Total Deposits 220,845,288 210,464,349 Federal Home Loan Bank advances 58,721,514 52,194,061 Accrued expenses and other liabilities 2,406,578 2,898,526 ------------- ------------- Total Liabilities 281,973,380 265,556,936 Shareholders' Equity: Preferred stock, $.01 par; 500,000 shares authorized, none issued --- --- Common stock, $.01 par; 2,000,000 shares authorized; issued: 1,836,328, outstanding: 1,170,768 - Dec. 31, 2007 issued: 1,836,328, outstanding: 1,201,478 - June 30, 2007 18,363 18,363 Additional paid-in capital 9,509,386 9,481,340 Retained earnings 25,122,722 24,334,484 Accumulated other comprehensive income (loss) 535,030 (164,556) Treasury stock at cost, shares: 665,560 - December 31, 2007 and 634,850 - June 30, 2007 (9,532,242) (8,681,125) ------------- ------------- Total Shareholders' Equity 25,653,259 24,988,506 ------------- ------------- Total Liabilities and Shareholders' Equity $ 307,626,639 $ 290,545,442 ============= ============= Consolidated Statements of Income Three Months Ended Six Months Ended 12/31/2007 12/31/2006 12/31/2007 12/31/2006 ----------- ----------- ----------- ----------- Interest and dividend income: Loans, including fees $ 3,970,507 $ 3,593,767 $ 7,891,925 $ 7,051,745 Taxable securities 664,188 644,379 1,278,251 1,337,419 Nontaxable securities 163,581 190,551 305,389 379,926 Other 23,006 40,353 53,398 67,925 ----------- ----------- ----------- ----------- Total interest and dividend income 4,821,282 4,469,050 9,528,963 8,837,015 Interest expense: Deposits 1,954,652 1,802,234 3,894,956 3,494,598 Borrowings 714,313 703,651 1,422,009 1,432,733 ----------- ----------- ----------- ----------- Total interest expense 2,668,965 2,505,885 5,316,965 4,927,331 Net interest income 2,152,317 1,963,165 4,211,998 3,909,684 Provision for loan losses 120,000 120,000 240,000 240,000 Net interest income after provision for loan losses 2,032,317 1,843,165 3,971,998 3,669,684 Noninterest income: Net gains on sales of securities 48,830 22,209 48,830 382,260 Net gains on sales of loans 24,821 42,342 47,441 62,934 Net gains (losses) on fixed assets - - - - Other than temporary impairment on securities - - - - Commission income 135,058 127,663 261,652 248,424 Service charges and fees 250,905 322,675 556,584 594,305 Earnings on life insurance 66,617 63,211 132,965 126,171 ----------- ----------- ----------- ----------- Other 44,027 36,872 87,674 36,546 Total noninterest income 570,258 614,972 1,135,146 1,450,640 Noninterest expense: Salaries and benefits 866,737 804,208 1,732,730 1,605,134 Occupancy and equipment 202,856 212,995 405,768 419,313 Professional 70,186 59,327 122,430 111,571 Marketing 90,538 70,013 125,895 105,371 Deposit insurance premium 6,066 5,991 12,190 11,730 Regulatory assessment 21,608 19,958 43,216 39,916 Correspondent bank charges 20,881 28,525 45,097 57,683 Data processing 135,452 159,484 295,317 311,404 Printing, postage and supplies 50,518 56,200 94,522 107,943 Expense on life insurance 900 23,270 26,629 48,999 Contribution expense 6,828 33,815 12,001 38,989 ----------- ----------- ----------- ----------- Other 248,445 163,000 450,355 396,840 Total noninterest expense 1,721,015 1,636,786 3,366,150 3,254,893 Income before income taxes 881,560 821,351 1,740,994 1,865,431 Income tax expense 230,457 126,787 455,499 239,436 Net income $ 651,103 $ 694,564 $ 1,285,495 $ 1,625,995 =========== =========== =========== =========== Unaudited Unaudited Three Months Ended Six Months Ended 12/31/2007 12/31/2006 12/31/2007 12/31/2006 ---------- ---------- ---------- ---------- Earnings per common share: Primary $ 0.56 $ 0.57 $ 1.09 $ 1.33 Fully diluted $ 0.55 $ 0.56 $ 1.08 $ 1.31 Dividend paid per share $ 0.21 $ 0.19 $ 0.21 $ 0.38 Average shares outstanding 1,180,496 1,224,885 1,187,686 1,221,754 Shares outstanding end of period 1,170,768 1,224,573 1,170,768 1,224,573 Supplemental data: Net interest margin ** 3.05% 2.92% 3.02% 2.92% Return on average assets *** 0.87% 0.97% 0.87% 1.14% Return on average equity *** 10.14% 10.91% 10.07% 13.00% 12/31/2007 6/30/2007 Nonperforming assets * 2,723,359 2,492,634 Repossessed assets 825,000 750,766 * 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 http://money.cnn.com/news/newsfeeds/articles/marketwire/0351951.htm 45 times read
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