SOURCE: FFW Corporation

January 24, 2007 19:19 ET

FFW Corporation Announces Operating Results for the Quarter and Six Months Ended December 31, 2006

WABASH, IN -- (MARKET WIRE) -- January 24, 2007 -- FFW Corporation (OTCBB: FFWC) (01/24/2007 Close: $24.75), parent corporation of First Federal Savings Bank of Wabash, Indiana, announced operating results for the second fiscal quarter of 2007 and six months ended December 31, 2006. Net income for the quarter ended December 31, 2006, was $695,000 compared to a $666,000 for the quarter ended December 31, 2005. Diluted net income per share for the second fiscal quarter of 2007 amounted to $0.56 compared to $0.53 reported in the second fiscal quarter of 2006. Net income and diluted net income per share for the six months ended December 31, 2006 were $1,626,000 and $1.31 compared to $1,248,000 and $0.98 at December 31, 2005.

The fiscal 2007 second quarter and year-to-date earnings represent a return on average shareholders' equity of 10.91% and 13.00% compared to 11.16% and 10.47% for the periods ended December 31, 2005. Return on average total assets for the three- and six-month periods ended December 31, 2006 were 0.97% and 1.14% compared to 1.01% and 0.95% for the periods ended December 31, 2005.

The allowance for loan losses as a percentage of net loans receivable was 1.52% at December 31, 2006, 1.59% at June 30, 2006, and 1.60% at December 31, 2005. Nonperforming assets at December 31, 2006 were $3.5 million compared to $2.5 million at June 30, 2006.

As of December 31, 2006, FFWC's equity-to-assets ratio was 8.77% compared to 8.50% at June 30, 2006. Shareholders' equity was $25.1 million compared to $23.9 million at June 30, 2006. Total assets at December 31, 2006 were $286.8 million compared to $280.9 million at June 30, 2006. Loans receivable increased $10.8 million during the first six months of fiscal 2007. Total deposits at December 31, 2006 increased by $14.6 million from June 30, 2006 while total FHLB borrowings decreased by $9.7 million.

First Federal Savings 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.ffsbwabash.com.


                              FFW Corporation
                      Selected Financial Information

Consolidated Balance Sheets

                                                   12/31/2006    6/30/2006
                                                    Unaudited
ASSETS :
Cash and due from financial institutions            5,861,022    5,328,257
Interest-earning deposits in other financial
 institutions – short term                          1,733,683    1,192,238
                                                  -----------  -----------
Cash and cash equivalents                           7,594,705    6,520,495
Securities available for sale                      63,107,120   68,920,497
Loans receivable, net of allowance for loan
 losses of $3,048,132 at December 31, 2006 and
 $2,959,513 at June 30, 2006                      196,718,153  186,044,335
Loans held for sale                                   231,900       80,000
Federal Home Loan Bank stock, at cost               3,627,100    3,774,100
Accrued interest receivable                         2,138,497    1,745,460
Premises and equipment, net                         4,288,950    4,364,694
Mortgage servicing rights                             560,012      601,690
Cash surrender value of life insurance              5,466,348    5,355,756
Goodwill                                            1,213,898    1,213,898
Other assets                                        1,865,071    2,277,195
                                                  -----------  -----------
Total Assets                                      286,811,754  280,898,120
                                                  ===========  ===========

LIABILITIES AND SHAREHOLDERS' EQUITY :
Liabilities:
Noninterest-bearing deposits                       12,735,120   15,151,594
Interest-bearing deposits                         197,441,247  180,398,726
                                                  -----------  -----------
Total Deposits                                    210,176,367  195,550,320
Federal Home Loan Bank advances                    49,249,623   58,910,506
Accrued expenses and other liabilities              2,246,176    2,561,655
                                                  -----------  -----------
Total Liabilities                                 261,672,166  257,022,481

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: 1,224,573 -
 December 31, 2006;
 issued: 1,836,328, outstanding: 1,232,081 -
 June 30, 2006;                                        18,363       18,363
Additional paid-in capital                          9,552,890    9,575,923
Retained earnings                                  23,550,405   22,339,708
Accumulated other comprehensive income (loss)         137,240     (222,006)
Unearned management retention plan shares            (108,208)     (85,971)
Treasury stock at cost, shares: 611,755 -
 December 31, 2006 and 604,247 - June 30, 2006     (8,011,102)  (7,750,378)
                                                  -----------  -----------
                Total Shareholders' Equity         25,139,588   23,875,639
                                                  -----------  -----------

Total Liabilities and Shareholders' Equity        286,811,754  280,898,120
                                                  ===========  ===========


Consolidated Statements of Income

                        3 months ended December    6 months ended December
                            2006         2005         2006         2005
                        ------------ -----------  ------------ ------------
Interest and dividend
 income :
Loans, including fees   $  3,593,767 $ 2,823,305  $  7,051,745 $  5,537,810
Taxable securities           644,379     600,654     1,337,419    1,160,029
Nontaxable securities        190,551     191,172       379,926      386,191
Other interest-earning
 assets                       40,353      35,722        67,925       74,963
                        ------------ -----------  ------------ ------------
Total interest income      4,469,050   3,650,853     8,837,015    7,158,993

Interest expense :
Deposits                   1,802,234   1,161,722     3,494,598    2,250,304
Other                        703,651     681,739     1,432,733    1,337,970
                        ------------ -----------  ------------ ------------
Total interest expenses    2,505,885   1,843,461     4,927,331    3,588,274
                        ------------ -----------  ------------ ------------

Net interest income        1,963,165   1,807,392     3,909,684    3,570,719

Provision for loan
 losses                      120,000     120,000       240,000      240,000
                        ------------ -----------  ------------ ------------

Net interest income
 after provision for
 loan losses               1,843,165   1,687,392     3,669,684    3,330,719

Non-interest income
 (loss) :
Net gain on sale of
 securities                   22,209      61,900       382,260       60,599
Net gain on sale of
 loans                        42,342      31,817        62,934       72,366
Commission income            127,663     113,860       248,424      200,461
Service charges and
 fees                        322,675     410,655       594,305      739,161
Earnings on life
 insurance                    63,211      60,409       126,171      120,581
Other than temporary
 impairment on
 securities                        0           0             0            0
Other                         36,872     (32,983)       36,546       26,408
                        ------------ -----------  ------------ ------------
Total non-interest
 income                      614,972     645,658     1,450,640    1,219,576

Non-interest expense :
Compensation and
 benefits                    804,208     743,900     1,605,134    1,475,558
Occupancy and equipment      212,995     193,554       419,313      384,198
Deposit insurance
 premium                       5,991       5,879        11,730       11,690
Regulatory assessment         19,958      19,006        39,916       38,013
Correspondent bank
 charges                      28,525      42,698        57,683       85,000
Data processing expense      159,484     131,776       311,404      267,733
Printing, postage and
 supplies                     56,200      62,643       107,943      104,318
Other                        349,425     345,189       701,770      683,915
                        ------------ -----------  ------------ ------------
Total non-interest
 expense                   1,636,786   1,544,645     3,254,893    3,050,425
                        ------------ -----------  ------------ ------------

Income before income
 taxes                       821,351     788,405     1,865,431    1,499,870

Income tax expense           126,787     122,600       239,436      251,626
                        ------------ -----------  ------------ ------------

Net income              $    694,564 $   665,805  $  1,625,995 $  1,248,244
                        ============ ===========  ============ ============


                                  Unaudited               Unaudited
                              Three Months Ended      Twelve Months Ended
                            12/31/2006  12/31/2005  12/31/2006  12/31/2005
                            ----------  ----------  ----------  ----------
Earnings per common share
Primary                     $     0.57  $     0.53  $     1.33  $     0.99
Fully diluted               $     0.56  $     0.53  $     1.31  $     0.98
Dividend paid per share     $     0.19  $     0.18  $     0.38  $     0.36
Average shares outstanding   1,218,386   1,251,045   1,221,754   1,255,537
Shares outstanding end of
 period                      1,224,573   1,259,081           -           -

Supplemental data:
Net interest margin **            2.92%       2.94%       2.92%       2.92%
Return on average assets ***      0.97%       1.01%       1.14%       0.95%
Return on average equity ***     10.91%      11.16%      13.00%      10.47%

                                                    12/31/2006   6/30/2006
                                                    ----------  ----------
Nonperforming assets *                               3,540,468   2,500,154
Repossessed assets                                     462,947     584,947

* 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

Contact Information

  • Contact:
    Tim Sheppard
    Treasurer
    260-563-3185 x228