Exhibit 99.1
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FFW CORP PRESS RELEASE
FOR MORE INFORMATION FOR IMMEDIATE RELEASE
Contact: Tim Sheppard, CFO Date: July 29, 2004
at 260-563-3185 x228
FFW CORPORATION ANNOUNCES RECORD EARNINGS
FOR THE FISCAL YEAR ENDED JUNE 30, 2004
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 2004 and year ended June 30, 2004. FFW Corporation
recorded record net income of $2,437,000, up 3.4%, from the previous record of
$2,358,000 at June 30, 2003. Diluted net income per share for the twelve months
ended June 30, 2004 was $1.85, up 6.3%, compared to $1.74 at June 30, 2003.
Roger K. Cromer, President and Chief Executive Officer, stated, "We are
pleased with our record earnings performance during a challenging economic
environment for financial institutions. During the second half of our fiscal
year, we embarked on our first expansion since 1997. We added office space to
our Syracuse, IN branch and opened a new full service branch in Columbia City,
IN. We also invested in many new technologies which will augment our current
product mix. We believe our independent community bank model of delivering
personal and dependable service will be enhanced for future growth with these
new investments."
Net income for the quarter ended June 30, 2004, was $556,000, a 4.3%
decrease from the $581,000 reported for the quarter ended June 30, 2003. Diluted
net income per share for the fourth fiscal quarter of 2004 amounted to $0.43,
down 2.3% from the $0.44 reported in the fourth fiscal quarter of 2003.
The fiscal 2004 fourth quarter and year to date earnings represent a return
on average shareholders' equity of 9.33% and 10.38% compared to 9.72% and 10.08%
for the periods ended June 30, 2003. Return on average total assets for the
three and twelve-month periods ended June 30, 2004 were 0.92% and 1.01% compared
to 1.00% and 1.00% for the periods ended June 30, 2003.
Interest income in the fourth fiscal quarter of 2004 was increased by
$174,000 to adjust deferred loan fee income on small business loans, which had
accumulated an overstatement over a period of several years. The processing
error causing the overstatement was discovered and corrected in the fourth
quarter. Reduced provision for loan losses and a lower effective tax rate for
the quarter ended June 30, 2004 compared to the quarter ended June 30, 2003 were
more than offset by increased personnel, equipment and facilities expense along
with decreased net gain on sales of loans income. FFW Corporation Chief
Financial Officer, Tim Sheppard, commented, "Income from loan sales should be
less than the prior year's for at least the first fiscal quarter of 2005. In
addition, due to our recent expansions, personnel, equipment and facilities
expense will be higher in fiscal 2005."
The allowance for loan losses as a percentage of net loans receivable was
1.89% at June 30, 2004 compared to 1.90% at March 31, 2004 and 2.06% at June 30,
2003. Nonperforming assets at June 30, 2004 were $2.2 million compared to $2.0
million at March 31, 2004 and $2.7 million at June 30, 2003.
As of June 30, 2004, FFWC's equity-to-assets ratio was 9.43% compared to
9.87% at June 30, 2003. Shareholders' equity was $22.6 million compared to $23.6
million at June 30, 2003. Total assets at June 30, 2004 were $239.9 million
compared to $242.8 million at 2003 fiscal year end. Total deposits at June 30,
2004 were down $4.2 million over June 30, 2003 while total FHLB borrowings
increased by $3.7 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 four banking centers located in North Manchester, South Whitley,
Syracuse and Columbia City, 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.
This press release may contain forward-looking statements, which are based
on management's current expectations regarding economic, legislative and
regulatory issues. Factors which may cause future results to vary materially
include, but are not limited to, general economic conditions, changes in
interest rates, loan demand and competition. Additional factors include changes
in accounting principles, policies or guidelines; changes in legislation or
regulation; and other economic, competitive, regulatory and technological
factors affecting each company's operations, pricing, products and services.
FFW Corporation July 29, 2004
Unaudited
Selected balance sheet data: 6/30/2004 6/30/2003
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(In Thousands)
Total assets $239,910 $242,771
Loans receivable 138,753 131,319
Allowance for loan loss 2,570 2,592
Securities available for sale 79,071 89,637
Deposits 159,252 163,446
Borrowings 55,733 52,038
Stockholders' equity 22,624 23,640
Nonperforming assets * 2,247 2,742
Repossessed assets 1,222 126
Unaudited Unaudited
Three Months Ended Twelve Months Ended
Selected Operating Data: 6/30/2004 6/30/2003 6/30/2004 6/30/2003
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(In Thousands) (In Thousands)
Total interest income $3,209 $3,233 $12,587 $13,963
Total interest expense 1,429 1,685 6,029 7,356
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Net interest income 1,780 1,548 6,558 6,607
Provision for loan losses 180 350 780 1,440
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Net interest income after provision for loan losses 1,600 1,198 5,778 5,167
Net gain (loss) on sales of loans 57 236 467 1,020
Net gain (loss) on sales of securities 0 0 59 26
Other non-interest income 362 434 1,621 1,442
Other non-interest expenses 1,447 1,216 5,268 4,784
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Income before income taxes 572 652 2,657 2,871
Income tax expense 16 71 220 513
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Net income $556 $581 $2,437 $2,358
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Earnings per common & common equivalent shares
Basic $0.43 $0.44 $1.88 $1.76
Diluted $0.43 $0.44 $1.85 $1.74
Dividend paid per share $0.16 $0.15 $0.64 $0.60
Average shares outstanding 1,298,669 1,321,360 1,299,814 1,343,441
Shares outstanding end of period 1,285,248 1,311,800 1,285,248 1,311,800
Supplemental data:
Net interest margin ** 3.23% 2.80% 2.93% 2.98%
Return on average assets *** 0.92% 1.00% 1.01% 1.00%
Return on average equity *** 9.33% 9.72% 10.38% 10.08%
* 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