SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8 - K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported)
February 4, 1998
FFW CORPORATION
(Exact name of Registrant as specified in its Charter)
Delaware 0 - 21170 35 - 1875502
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(State or other jurisdiction (Commission File No.) (IRS Employer
of incorporation) Identification Number)
1205 N. Cass Street, Wabash, Indiana 46992 - 1027
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (219) 563 - 3185
N/A
(Former name or former address, if changed since last report)
Item 5. Other Events
On February 4, 1998, the Registrant issued the attached press release.
Item 7. Financial Statements and Exhibits
(a) Exhibits
1. Press release, dated February 4, 1998.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this Report to be signed on its behalf by the
undersigned thereunto duly authorized.
FFW CORPORATION
Date: February 4, 1998 By: \s\ Nicholas M. George
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Nicholas M. George
President and Chief
Executive Officer
Date: February 4, 1998
Contact: Nicholas M. George,
President
(219) 563-3185
PRESS RELEASE FOR IMMEDIATE RELEASE
FFW CORPORATION ANNOUNCES A 12% INCREASE IN NET INCOME
FOR THE QUARTER ENDED DECEMBER 31, 1997
Wabash, IN--FFW Corporation (NASDAQ: FFWC) holding company for First
Federal Savings Bank of Wabash, Indiana, announced today operating results for
the quarter ended December 31, 1997. Net income for the quarter ended December
31, 1997, was $479,000 or $ .34 per diluted share compared to $427,000 or $ .31
per diluted share for the quarter ended December 31, 1996. This equates to an
increase of 12.2% and 9.7%, respectively, in net income and diluted earnings per
share. The earnings per share reflect an adjustment for a 2 for 1 stock split on
December 31, 1997, and changes related to SFAS No. 128 "Earnings Per Share".
Nicholas M. George, President of FFW Corporation, credited the
quarter's earnings to a continued growth in the bank's mortgage, consumer and
commercial loan portfolio's. Net interest income, the difference between
interest income and interest expense paid, increased $246,000. The increase in
non-interest expense of $189,000 over the prior year, was due to increased
staffing, and amortization of goodwill related to the purchase of with the
branch office in South Whitely, Indiana, formerly owned by NBD Bank, N.A.
Net income for the six months ended December 31, 1997 was $948,000 or $
.66 per diluted share, compared to $506,000 or $ .36 per diluted share for the
six months ended December 31, 1996. Mr. George, attributed the majority of the
increased earnings to the reduced SAIF premium. In 1996 the one time SAIF
assessment was $337,800($ .24 per diluted share) net of tax .
FFW Corporation's total assets for the six months ended December 31,
1997 increased by $11.2 million to a total of $191.3 million a 6.2% increase.
Net loans receivable for the six months ended December 31, 1997 increased by
$14.1 million to total of $128.2 million a 12.3% increase.
First Federal Savings Bank operates full-service offices in Wabash,
North Manchester, South Whitley and Syracuse that offer a variety of loan and
deposit products. Investment services such as purchases of stocks, mutual funds
and insurance products are offered through an affiliated company, FirstFed
Financial Incorporated.
FFW Corporation February 4, 1998
SELECTED CONSOLIDATED FINANCIAL INFORMATION
(Unaudited)
Selected Balance Sheet Data: 12/31/97 6/30/97
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(In Thousands)
Total Assets ............................... $191,298 $180,055
Loans Receivable Net ....................... 128,222 114,159
Loans Held for Sale ........................ 0 0
Securities Available for Sale .............. 50,055 40,450
Deposits ................................... 115,976 116,118
Borrowings ................................. 52,676 44,800
Stockholders' Equity ....................... 18,315 17,141
(Unaudited) (Unaudited)
Three Months Ended Six Months Ended
Selected Operating Data: 12/31/97 12/31/96 12/31/97 12/31/96
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(In Thousands)
Total Interest Income ............................... $ 3,579 $ 3,025 $ 7,084 $ 5,952
Total Interest Expense .............................. 2,109 1,802 4,171 3,561
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Net Interest Income ............................... $ 1,470 $ 1,223 $ 2,913 $ 2,391
Provision for Loan Losses ........................... 65 15 265 35
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Net Interest Income After Provision for Loan Losses $ 1,405 $ 1,208 $ 2,648 $ 2,356
Gain on Sales of Interest Earning Assets ............ 26 19 43 30
Net Unrealized Losses on Loans Held for Sale ........ 0 0 0 0
Other Non-Interest Income ........................... 226 141 443 288
Other Non-Interest Expenses ......................... (930) (741) (1,839) (1,999)
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Income Before Income Taxes ........................ $ 727 $ 627 $ 1,295 $ 675
Income Tax Expense .................................. 248 200 346 169
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Net Income ........................................ $ 479 $ 427* $ 949 $ 506*
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Earnings Per Common & Common Equivalent Shares***
Basic ............................................... $ .34 $ .32 $ .68 $ .38**
Diluted ............................................. $ .34 $ .31 $ .66 $ .36**
Dividend Paid Per Share ............................. $ .15 $ .12 $ .45 $ .12
Average Dilutive Shares Outstanding ................. 1,421,232 1,407,499 1,438,206 1,407,499
Supplemental Data:
Interest Rate Spread ................................ 2.66% 2.67% 2.69% 2.63%
Return on Average Assets*** ......................... 1.02% 1.09% 1.03% .65%
Return on Average Equity*** ......................... 10.60% 10.76% 10.70% 6.41%
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* Reduced by SAIF assessment net of tax of $337,800
** Earnings per Share reduced by SAIF assessment net of tax of $.24
*** Earnings per shares are adjusted for a 2 for 1 stock split on December 31,
1997
**** Annualized