WABASH, Ind., April 24 /PRNewswire-FirstCall/ -- FFW Corporation
(OTC Bulletin Board: FFWC.OB; 4/21/2006 Close: $22.00), parent
corporation of First Federal Savings Bank of Wabash, Indiana,
announced operating results for the third fiscal quarter of 2006
and nine months ended March 31, 2006. Net income for the quarter
ended March 31, 2006, was $705,000 compared to $646,000 for the
quarter ended March 31, 2005. Diluted net income per share for the
third fiscal quarter of 2006 amounted to $0.55 compared to $0.50
reported in the third fiscal quarter of 2005. Net income and
diluted net income per share for the nine months ended March 31,
2006 were $1,953,000 and $1.53 compared to $40,000 and $0.03 at
March 31, 2005. The nine 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 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 $19.26 at
March 31, 2006. Without the OTTI charge, fiscal 2005 net income and
diluted net income per share would have been $1,844,000 and $1.42
for the nine-months ended March 31, 2005. The fiscal 2006 third
quarter and year to date earnings represent a return on average
shareholders' equity of 11.79% and 10.91% compared to 10.99% and
0.23% for the periods ended March 31, 2005 or 10.48% without the
OTTI charge for the nine-month period. Return on average total
assets for the three and nine-month periods ended March 31, 2006
were 1.07% and 0.99% compared to 1.04% and 0.02% for the periods
ended March 31, 2005 or 0.98% without the OTTI charge. The
allowance for loan losses as a percentage of net loans receivable
was 1.63% at March 31, 2006 and 1.60% at December 31, September 30
and June 30, 2005. Nonperforming assets at March 31, 2006 were $1.1
million compared to $3.1 million at December 31, 2005 and $1.9
million at June 30, 2005. The reduction in nonperforming assets
contributed seven and three basis points to the net interest
margins of 3.22% and 3.02% for the three and nine- month periods
ended March 31, 2006 compared to 2.94% and 2.92% for the periods
ended March 31, 2005. Roger K. Cromer, President and Chief
Executive Officer, stated, "We are pleased with the strong core
earnings experienced, not only this quarter, but during all of
fiscal 2006. Despite our success this year, we recognize that the
current interest rate environment with continued Fed rate increases
and a flat or, at times, inverted yield curve and increasing costs
on deposit rates could adversely affect operating results in future
quarters. To offset this risk, we will continue to diversify our
loan and deposit mix in our efforts to provide attractive
shareholder returns." As of March 31, 2006, FFWC's equity-to-assets
ratio was 8.97% compared to 9.08% at June 30, 2005. Shareholders'
equity was $24.2 million compared to $23.3 million at June 30,
2005. Total assets at March 31, 2006 were $269.4 million compared
to $256.9 million at June 30, 2005. Loans receivable increased $9.4
million during the first nine months of fiscal 2006. Total deposits
at March 31, 2006 increased by $6.0 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/
. FFW Corporation Selected Financial Information Consolidated
Balance Sheets ASSETS: 3/31/2006 6/30/2005 Unaudited Cash and due
from financial institutions 5,089,475 5,823,003 Interest-earning
deposits in other financial institutions - short term 5,067,229
2,215,642 Cash and cash equivalents 10,156,704 8,038,645 Securities
available for sale 67,203,652 66,916,209 Loans receivable, net of
allowance for loan losses of $2,818,096 at March 31, 2006 and
$2,670,277 at June 30, 2005 172,982,071 163,162,230 Loans held for
sale --- 547,500 Federal Home Loan Bank stock, at cost 3,774,100
3,774,100 Accrued interest receivable 1,346,989 1,515,803 Premises
and equipment, net 4,467,475 4,097,606 Mortgage servicing rights
618,168 521,852 Cash surrender value of life insurance 5,301,279
5,142,513 Goodwill 1,249,123 975,468 Other assets 2,312,603
2,248,250 Total Assets 269,412,164 256,940,176 LIABILITIES AND
SHAREHOLDERS' EQUITY: Liabilities: Noninterest-bearing deposits
17,723,368 15,433,002 Interest-bearing deposits 166,200,641
162,479,591 Total Deposits 183,924,009 177,912,593 Federal Home
Loan Bank advances 57,975,285 53,625,292 Accrued expenses and other
liabilities 3,353,211 2,074,277 Total Liabilities 245,252,505
233,612,162 Shareholders' Equity: Common stock, $.01 par; 2,000,000
shares authorized; issued: 1,836,328, outstanding: 1,254,381 -
March 31, 2006; issued: 1,836,328, outstanding: 1,268,135 - June
30, 2005 18,363 18,363 Additional paid-in capital 9,565,923
9,526,611 Retained earnings 21,889,140 20,657,787 Accumulated other
comprehensive income 32,865 201,639 Unearned management retention
plan shares (96,649) (135,783) Treasury stock at cost, shares:
581,947 - March 31, 2006 and 568,193 - June 30, 2005 (7,249,983)
(6,940,603) Total Shareholders' Equity 24,159,659 23,328,014 Total
Liabilities and Shareholders' Equity 269,412,164 256,940,176
Consolidated Statements of Income Unaudited Unaudited 3 months
ended March 9 months ended March 2006 2005 2006 2005 Interest and
dividend income: Loans, including fees $3,055,940 $2,469,388
$8,593,750 $7,070,446 Taxable securities 593,552 612,350 1,710,325
1,908,167 Nontaxable securities 206,637 220,603 636,084 642,155
Other interest-earning assets 52,539 20,255 127,502 46,575 Total
interest income 3,908,668 3,322,596 11,067,661 9,667,343 Interest
expense: Deposits 1,198,312 900,418 3,448,616 2,584,544 Other
716,845 674,781 2,054,815 1,949,041 Total interest expenses
1,915,157 1,575,199 5,503,431 4,533,585 Net interest income
1,993,511 1,747,397 5,564,230 5,133,758 Provision for loan losses
131,000 120,000 371,000 360,000 Net interest income after provision
for loan losses 1,862,511 1,627,397 5,193,230 4,773,758
Non-interest income (loss): Net gain on sale of securities 0 27,532
60,599 27,532 Net gain on sale of loans 24,598 43,231 96,964
118,603 Commission income 178,546 119,679 379,007 220,123 Service
charges and fees 358,958 291,738 1,098,119 837,238 Earnings on life
insurance 60,641 58,760 181,222 175,575 Other than temporary
impairment on securities --- --- --- (1,804,750) Other 77,070
36,051 103,478 236,931 Total non-interest income (loss) 699,813
576,991 1,919,389 (188,748) Non-interest expense: Compensation and
benefits 878,445 657,375 2,354,003 1,974,226 Occupancy and
equipment 208,340 181,899 592,538 514,802 Deposit insurance premium
6,083 5,833 17,773 17,539 Regulatory assessment 19,724 17,477
57,737 50,158 Correspondent bank charges 30,499 64,262 115,499
195,004 Data processing expense 150,205 131,200 417,938 359,427
Printing, postage and supplies 57,142 41,667 161,460 122,748 Other
364,783 290,531 1,048,698 941,149 Total non-interest expense
1,715,221 1,390,244 4,765,646 4,175,053 Income before income taxes
847,103 814,144 2,346,973 409,957 Income tax expense 142,060
167,651 393,686 370,237 Net income $705,043 $646,493 $1,953,287
$39,720 Unaudited Unaudited Three Months Ended Nine Months Ended
3/31/2006 3/31/2005 3/31/2006 3/31/2005 Earnings per common &
common equivalent shares Primary $0.57 $0.50 $1.56 $0.03 Fully
diluted $0.55 $0.50 $1.53 $0.03 Dividend paid per share $0.18 $0.17
$0.54 $0.51 Average shares outstanding 1,249,445 1,279,373
1,255,537 1,279,771 Shares outstanding end of period 1,254,381
1,284,243 1,254,381 1,284,243 Supplemental data: Net interest
margin ** 3.22% 2.94% 3.02% 2.92% Return on average assets ***
1.07% 1.04% 0.99% 0.02% Return on average equity *** 11.79% 10.99%
10.91% 0.23% 3/31/2006 6/30/2005 Nonperforming assets * 1,148 1,917
Repossessed assets 963 893 * 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 DATASOURCE: FFW Corporation CONTACT: Tim Sheppard,
Treasurer of FFW Corporation, +1-260-563-3185, ext. 228 Web site:
http://www.ffsbwabash.com/
Copyright