Exhibit 99.1
FFW CORP PRESS RELEASE
FOR MORE INFORMATION FOR IMMEDIATE RELEASE
Contact: Tim Sheppard, Treasurer Date: January 28, 2004
at 260-563-3185 x228
FFW CORPORATION ANNOUNCES NET INCOME
FOR THE QUARTER ENDED DECEMBER 31, 2003
WABASH, INDIANA - - FFW Corporation (NASDAQ: FFWC), parent corporation of
First Federal Savings Bank of Wabash, Indiana, announced operating results for
the second fiscal quarter of 2004 and six months ended December 31, 2003. Net
income for the quarter ended December 31, 2003, was $634,000, a 2.9% increase
from the $616,000 reported for the quarter ended December 31, 2002. Diluted net
income per share for the second fiscal quarter of 2004 amounted to $0.48, up
6.7% from the $0.45 reported in the second fiscal quarter of 2003. Net income
and diluted net income per share for the six months ended December 31, 2003 were
$1,236,000 and $0.93 compared to $1,192,000 and $0.87 at the end of 2002.
The fiscal 2004's second quarter and year to date earnings represent a
return on average shareholders' equity of 10.96% and 10.61% compared to 10.52%
and 10.28% for the periods ended December 31, 2002. Return on average total
assets for the three and six-month periods ended December 31, 2003 were 1.04%
and 1.02% compared to 1.04% and 1.00% for the periods ended December 31, 2002.
"Despite the historically low interest rate environment, we continue to
achieve income growth through the addition of new products and services", stated
Roger Cromer, President and CEO of FFW Corp. "We are pleased with our quarterly
earnings and excited about the December groundbreaking on our new location in
Columbia City, IN, and the completion of our Syracuse office expansion. These
additions will allow First Federal to expand the community banking format that
our customers have grown to appreciate."
The allowance for loan losses as a percentage of net loans receivable was
2.00% at December 31, 2003 compared to 1.90% at September 30, 2003 and 1.99% at
December 31, 2002. Nonperforming assets at December 31, 2003 were $3.2 million
compared to $2.5 million at September 30, 2003 and $3.2 million at December 31,
2002.
As of December 31, 2003, FFWC's equity-to-assets ratio was 9.57% compared
to 9.74% at June 30, 2003. Shareholders' equity was $23.2 million compared to
$23.6 million at June 30, 2003. Total assets at December 31, 2003 were $243.0
million compared to $242.8 million at 2003 fiscal year end. Total deposits at
December 31, 2003 decreased by $5.2 million from June 30, 2003 while total FHLB
borrowings increased by $7.9 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 such as 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 the NASDAQ system under the
symbol "FFWC" and our website address is www.ffsbwabash.com.
FFW Corporation January 28, 2004
Unaudited
Selected balance sheet data: 12/31/2003 6/30/2003
---------- ---------
(In Thousands)
Total assets $242,967 $242,771
Loans receivable 135,119 131,319
Allowance for loan loss 2,647 2,592
Securities available for sale 85,473 89,637
Deposits 158,251 163,446
Borrowings 59,908 52,038
Stockholders' equity 23,246 23,640
Nonperforming assets * 3,235 2,742
Repossessed assets 763 126
Unaudited Unaudited
Three Months Ended Six Months Ended
Selected Operating Data: 12/31/2003 12/31/2002 12/31/2003 12/31/2002
---------- ---------- ---------- ----------
(In Thousands) (In Thousands)
Total interest income $3,104 $3,587 $6,263 $7,323
Total interest expense 1,546 1,895 3,117 3,917
------ ------ ------ ------
Net interest income 1,558 1,692 3,146 3,406
Provision for loan losses 210 405 420 630
---- ---- ---- ----
Net interest income after provision for loan losses 1,348 1,287 2,726 2,776
Net gain (loss) on sales of loans 85 358 356 538
Net gain (loss) on sales of securities 0 0 4 1
Other non-interest income 528 289 811 592
Other non-interest expenses 1,279 1,167 2,519 2,364
------ ------ ------ -----
Income before income taxes 682 767 1,378 1,543
Income tax expense 48 151 142 351
--- ---- ---- -----
Net income $634 $616 $1,236 $1,192
===== ===== ======= ======
Earnings per common & common equivalent shares
Primary $0.49 $0.46 $0.95 $0.88
Fully diluted $0.48 $0.45 $0.93 $0.87
Dividend paid per share $0.16 $0.15 $0.32 $0.30
Average shares outstanding 1,295,609 1,351,665 1,300,088 1,358,086
Shares outstanding end of period 1,300,229 1,346,775 1,300,229 1,346,775
Supplemental data:
Net interest margin ** 2.73% 3.04% 2.78% 3.03%
Return on average assets *** 1.04% 1.04% 1.02% 1.00%
Return on average equity *** 10.96% 10.52% 10.61% 10.28%
* 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