Exhibit 99.1
FFW CORP PRESS RELEASE
FOR MORE INFORMATION FOR IMMEDIATE RELEASE
Contact: Tim Sheppard, Treasurer Date: July 23, 2003
at 260-563-3185 x228
FFW CORPORATION ANNOUNCES RECORD EARNINGS
FOR THE FISCAL YEAR ENDED JUNE 30, 2003
WABASH, INDIANA - - FFW Corporation (NASDAQ: FFWC), parent corporation of
First Federal Savings Bank of Wabash, Indiana, announced operating results for
the fourth fiscal quarter of 2003 and year ended June 30, 2003. Net income for
the quarter ended June 30, 2003, was $581,000, a 3.0% increase from the $564,000
reported for the quarter ended June 30, 2002. Diluted net income per share for
the fourth fiscal quarter of 2003 amounted to $0.43, up 4.9% from the $0.41
reported in the fourth fiscal quarter of 2002. Net income and diluted net income
per share for the twelve months ended June 30, 2003 were $2,358,000 and $1.73,
up 15.1% and 17.7%, compared to $2,048,000 and $1.47 at June 30, 2002.
The fiscal 2003's fourth quarter and year to date earnings represent a
return on average shareholders' equity of 9.73% and 10.08% compared to 10.31%
and 9.24% for the periods ended June 30, 2002. Return on average total assets
for the three and twelve-month periods ended June 30, 2003 were 0.98% and 1.00%
compared to 0.96% and 0.88% for the periods ended June 30, 2002.
The allowance for loan losses as a percentage of net loans receivable was
2.01% at June 30, 2003 compared to 2.09% at March 31, 2003 and 1.66% at June 30,
2002. Nonperforming assets at June 30, 2003 were $2.7 million compared to $3.0
million at March 31, 2003 and $2.1 million at June 30, 2002.
As of June 30, 2003, FFWC's equity-to-assets ratio was 9.87% compared to
9.45% at June 30, 2002. Shareholders' equity was $24.0 million compared to $22.4
million at June 30, 2002. Total assets at June 30, 2003 were $243.0 million
compared to $237.8 million at 2002 fiscal year end. Total deposits at June 30,
2003 were up $4.8 million over June 30, 2002 while total FHLB borrowings
decreased by $2.3 million.
First Federal Savings Bank is a wholly owned subsidiary of FFW Corporation
providing retail and small business financial services through its main office
in Wabash and three banking centers located in North Manchester, South Whitley,
and Syracuse, Indiana. Investment services including the purchase of stock,
mutual funds and insurance products are offered through an affiliated company,
FirstFed Financial Inc. The corporation's stock is traded on NASDAQ under the
symbol "FFWC" and our website address is www.ffsbwabash.com.
FFW Corporation July 23, 2003
Unaudited
Selected balance sheet data: 6/30/2003 6/30/2002
--------- ---------
(In Thousands)
Total assets $243,001 $237,828
Loans receivable 131,319 144,219
Allowance for loan loss 2,592 2,361
Securities available for sale 89,637 76,345
Deposits 163,446 158,661
Borrowings 52,038 54,363
Stockholders' equity 23,996 22,409
Nonperforming assets* 2,742 2,131
Repossessed assets 126 188
Unaudited Unaudited
Three Months Ended Twelve Months Ended
Selected Operating Data: 6/30/2003 6/30/2002 6/30/2003 6/30/2002
--------- --------- --------- ---------
(In Thousands) (In Thousands)
Total interest income $3,234 $3,839 $13,964 $16,022
Total interest expense 1,685 2,222 7,356 9,452
------ ------ ------- -------
Net interest income 1,549 1,617 6,608 6,570
Provision for loan losses 350 375 1,440 1,355
------ ------ ------- -------
Net interest income after provision for loan losses 1,199 1,242 5,168 5,215
Net gain (loss) on sales of loans 184 370 698 715
Net gain (loss) on sales of securities 0 132 26 229
Other non-interest income 485 340 1,763 1,361
Other non-interest expenses 1,216 1,379 4,784 4,804
------ ------ ------- -------
Income before income taxes 652 705 2,871 2,716
Income tax expense 71 141 513 668
------ ------ ------- -------
Net income $ 581 $ 564 $ 2,358 $ 2,048
====== ====== ======= =======
Earnings per common & common equivalent shares
Primary $0.44 $0.41 $1.76 $1.48
Fully diluted $0.43 $0.41 $1.73 $1.47
Dividend paid per share $0.15 $0.14 $0.60 $0.56
Average shares outstanding 1,321,360 1,372,592 1,343,441 1,384,704
Shares outstanding end of period 1,311,800 1,367,375 1,311,800 1,367,375
Supplemental data:
Net interest margin ** 2.82% 3.00% 2.98% 2.96%
Return on average assets *** 0.98% 0.96% 1.00% 0.88%
Return on average equity *** 9.73% 10.31% 10.08% 9.24%
* 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