FFW Corp. in Wabash, Ind., has a $2.6 million loan chargeoff recovery.
FFW, the parent of the $348 million-asset Crossroads Bank, said the recovery, tied to a commercial loan participation, should increase net income for its fiscal third quarter by $1.9 million, or $1.71 a share.
The company in August 2012 reported an elevated loan-loss provision that was largely tied to a the participation, though Crossroads was not the lead loan servicer. FFW said the loan was backed by a life insurance policy, though its value was negatively impacted by the borrower's "fraudulent actions."
