FFW Corporation Announces Operating Results for the Quarter and Fiscal Year Ended June 30, 2005 WABASH, Ind., July 27 /PRNewswire-FirstCall/ -- FFW Corporation, parent corporation of First Federal Savings Bank of Wabash, Indiana, announced operating results for the fourth fiscal quarter of 2005 and year ended June 30, 2005. Net income for the quarter ended June 30, 2005, was $614,000, a 10.4% increase from the $556,000 reported for the quarter ended June 30, 2004. Diluted net income per share for the fourth fiscal quarter of 2005 amounted to $0.47, up 11.9% from the $0.42 reported in the fourth fiscal quarter of 2004. Net income and diluted net income per share for the twelve months ended June 30, 2005 were $654,000 and $0.50 compared to $2,437,000 and $1.85 at June 30, 2004. The twelve month results for fiscal 2005 were impacted by an other-than- temporary non-cash impairment charge of approximately $1.8 million, or $1.40 per diluted share, recorded in the second fiscal quarter of 2005 and six months ended December 31, 2004 related to certain Fannie Mae ("FNMA") and Freddie Mac ("FHLMC") preferred stocks. Since capital is unaffected, the non- cash impairment charge had no effect on the Company's book value per share of $18.58 as of June 30, 2005. President and CEO, Roger Cromer, commented, "Fiscal 2005 was another strong year for FFW Corporation. Excluding the non-cash impairment charge in the second quarter, FFW Corp would have had record earnings of $2,459,000. In addition, our net interest margin held steady despite the difficult interest rate environment of the past year. We are excited about fiscal 2006 with the addition of our new leasing division, First Federal Equipment Finance, and our new insurance subsidiary, Insurance 1 Services. The addition of these services will continue our strategy of providing diversified financial products for our customers." The fiscal 2005 fourth quarter and year to date earnings represent a return on average shareholders' equity of 10.51% and 2.80% compared to 9.33% and 10.38% for the periods ended June 30, 2004. Return on average total assets for the three and twelve-month periods ended June 30, 2005 were 0.98% and 0.26% compared to 0.92% and 1.01% for the periods ended June 30, 2004. The allowance for loan losses as a percentage of net loans receivable was 1.63% at June 30, 2005 compared to 1.61% at March 31, 2005, 1.62% at December 31, 2004 and 1.89% at September 30, 2004 and June 30, 2004. Nonperforming assets at June 30, 2005 were $1.9 million compared to $1.7 million at March 31, 2005, $2.0 at December 31, 2004, $2.1 million at September 30, 2004 and $2.2 million at June 30, 2004. As of June 30, 2005, FFWC's equity-to-assets ratio was 9.16% compared to 9.43% at June 30, 2004. Shareholders' equity was $23.6 million compared to $22.6 million at June 30, 2004. Total assets at June 30, 2005 were $257.2 million compared to $239.9 million at 2004 fiscal year end. Loans receivable increased $27.6 million, or 19.9%, during fiscal 2005. Total deposits at June 30, 2005 increased by $18.7 million from June 30, 2004 while total FHLB borrowings decreased by $2.1 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 under the symbol "FFWC.PK". Our website address is http://www.ffsbwabash.com/ . FFW Corporation July 27, 2005 Unaudited Selected balance sheet data: 6/30/2005 6/30/2004 (In Thousands) Total assets $257,178 $239,910 Loans receivable 166,380 138,753 Allowance for loan loss 2,670 2,570 Securities available for sale 67,154 79,071 Deposits 177,913 159,252 Borrowings 53,625 55,733 Stockholders' equity 23,566 22,624 Nonperforming assets * 1,917 2,247 Repossessed assets 893 1,222 Unaudited Unaudited Three Months Ended Twelve Months Ended Selected Operating Data: 6/30/2005 6/30/2004 6/30/2005 6/30/2004 (In Thousands) (In Thousands) Total interest income $3,380 $3,209 $13,048 $12,587 Total interest expense 1,642 1,429 6,176 6,029 Net interest income 1,738 1,780 6,872 6,558 Provision for loan losses 120 180 480 780 Net interest income after provision for loan losses 1,618 1,600 6,392 5,778 Net gain on sales of loans 36 57 154 467 Net gain on sales of securities 0 0 28 59 Other than temp impairment AFS securities 0 0 (1,805) 0 Other non-interest income 355 362 1,825 1,621 Other non-interest expenses 1,366 1,447 5,541 5,268 Income before income taxes 643 572 1,053 2,657 Income tax expense 29 16 399 220 Net income $614 $556 $654 $2,437 Earnings per common & common equivalent shares Primary $0.48 $0.42 $0.51 $1.88 Fully diluted $0.47 $0.42 $0.50 $1.85 Dividend paid per share $0.17 $0.16 $0.68 $0.64 Average shares outstanding 1,267,522 1,293,007 1,275,688 1,294,167 Shares outstanding end of period 1,268,135 1,285,248 1,268,135 1,285,248 Supplemental data: Net interest margin ** 2.93% 3.23% 2.93% 2.93% Return on average assets *** 0.98% 0.92% 0.26% 1.01% Return on average equity *** 10.51% 9.33% 2.80% 10.38% * 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

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