WABASH, Ind., Jan. 26 /PRNewswire-FirstCall/ -- FFW Corporation (OTC:FFWC.OB) (BULLETIN BOARD: FFWC.OB) , parent corporation of First Federal Savings Bank of Wabash, Indiana, announced operating results for the second fiscal quarter of 2006 and six months ended December 31, 2005. Net income for the quarter ended December 31, 2005, was $666,000 compared to a $1,216,000 loss for the quarter ended December 31, 2004. Diluted net income per share for the second fiscal quarter of 2006 amounted to $0.53 compared to a loss of $0.94 reported in the second fiscal quarter of 2005. Net income and diluted net income per share for the six months ended December 31, 2005 were $1,248,000 and $0.98 compared to losses of $607,000 and $0.47 at December 31, 2004. The three and six month results for fiscal 2005 were impacted by an other- than-temporary non-cash impairment charge (OTTI) of approximately $1.8 million, or $1.40 per diluted share, recorded in the second fiscal quarter of 2005 and six months ended December 31, 2004 related to certain Fannie Mae ("FNMA") and Freddie Mac ("FHLMC") preferred stocks. Since capital was unaffected, the non-cash impairment charge had no effect on the Company's book value per share which was $18.86 at December 31, 2005. Without the OTTI charge, fiscal 2005 net income and diluted net income per share would have been $589,000 and $0.45 for the second fiscal quarter and $1,198,000 and $0.92 for the six-months ended December 31, 2004. The fiscal 2006 second quarter and year to date earnings represent a return on average shareholders' equity of 11.16% and 10.47% compared to -20.77% and -5.15% for the periods ended December 31, 2004 or 9.87% and 10.17% without the OTTI charge. Return on average total assets for the three and six-month periods ended December 31, 2005 were 1.01% and 0.95% compared to -1.97% and -0.49% for the periods ended December 31, 2004 or 0.93% and 0.96% without the OTTI charge. The allowance for loan losses as a percentage of net loans receivable was 1.60% at December 31, September 30 and June 30, 2005. Nonperforming assets at December 31, 2005 were $1.7 million compared to $1.9 million at June 30, 2005. As of December 31, 2005, FFWC's equity-to-assets ratio was 8.88% compared to 9.08% at June 30, 2005. Shareholders' equity was $23.8 million compared to $23.6 million at June 30, 2005. Total assets at December 31, 2005 were $267.6 million compared to $257.2 million at June 30, 2005. Loans receivable increased $6.5 million during the first six months of fiscal 2006. Total deposits at December 31, 2005 increased by $6.3 million from June 30, 2005 while total FHLB borrowings increased by $4.4 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 http://www.ffsbwabash.com/ . Unaudited Selected balance sheet data: 12/31/2005 6/30/2005 (In Thousands) Total assets $267,598 $257,178 Loans receivable 172,929 166,380 Allowance for loan loss 2,766 2,670 Securities available for sale 66,728 67,154 Deposits 184,248 177,913 Borrowings 57,975 53,625 Stockholders' equity 23,751 23,566 Nonperforming assets * 1,722 1,917 Repossessed assets 857 893 Unaudited Unaudited Three Months Ended Six Months Ended Selected Operating Data: 12/31/2005 12/31/2004 12/31/2005 12/31/2004 (In Thousands) (In Thousands) Total interest income $3,651 $3,228 $7,159 $6,345 Total interest expense 1,843 1,515 3,588 2,958 Net interest income 1,808 1,713 3,571 3,387 Provision for loan losses 120 120 240 240 Net interest income after provision for loan losses 1,688 1,593 3,331 3,147 Net gain (loss) on sales of loans 31 42 72 75 Net gain (loss) on sales of securities 62 0 61 0 Other than temp impairment AFS securities 0 (1,805) 0 (1,805) Other non-interest income 553 459 1,087 964 Other non-interest expenses 1,545 1,394 3,051 2,785 Income (loss) before income taxes 789 (1,105) 1,500 (404) Income tax expense 123 111 252 203 Net income (loss) $666 ($1,216) $1,248 ($607) Earnings (Losses) per common & common equivalent shares Primary $0.53 $(0.95) $0.99 $(0.47) Fully diluted $0.53 $(0.94) $0.98 $(0.47) Dividend paid per share $0.18 $0.17 $0.36 $0.34 Average shares outstanding 1,257,137 1,280,602 1,258,583 1,279,970 Shares outstanding end of period 1,259,081 1,291,792 1,259,081 1,291,792 Supplemental data: Net interest margin ** 2.93% 2.90% 2.92% 2.91% Return on average assets *** 1.01% -1.97% 0.95% -0.49% Return on average equity *** 11.16% -20.77% 10.47% -5.15% * 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 First Call Analyst: FCMN Contact: DATASOURCE: FFW Corporation CONTACT: Tim Sheppard, Treasurer of FFW Corporation, +1-260-563-3185 x228 Web site: http://www.ffsbwabash.com/

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