FFW Corporation Selected Financial Information Consolidated Balance Sheet December 31 June 30 ------------- ------------- 2010 2010 ------------- ------------- Unaudited Assets Cash and due from financial institutions $ 3,693,297 $ 3,229,138 Interest-earning deposits in other financial institutions 10,230,259 7,386,372 ------------- ------------- Cash and cash equivalents 13,923,556 10,615,510 ------------- ------------- Securities available for sale 77,215,486 76,716,794 Loans receivable, net of allowance for loan losses of $3,543,248 at December 31, 2010 and $3,582,476 at June 30, 2010 211,910,404 224,135,086 Loans held for sale 220,000 40,000 Federal Home Loan Bank stock, at cost 3,195,900 3,627,100 Accrued interest receivable 1,602,755 1,645,286 Premises and equipment, net 3,782,196 3,889,487 Mortgage servicing rights 474,616 375,052 Cash surrender value of life insurance 6,516,090 6,374,995 Goodwill 1,213,898 1,213,898 Deferred tax asset 2,546,416 1,893,647 Other assets 3,101,215 3,036,680 ------------- ------------- Total assets $ 325,702,532 $ 333,563,535 ------------- ------------- Liabilities and shareholders' equity Deposits Noninterest-bearing deposits $ 19,078,194 $ 16,278,993 Interest-bearing deposits 260,405,345 262,550,500 ------------- ------------- Total deposits 279,483,539 278,829,493 ------------- ------------- Borrowings 14,562,945 24,699,557 Accrued expenses and other liabilities 3,039,339 1,230,602 ------------- ------------- Total liabilities 297,085,823 304,759,652 ------------- ------------- Shareholders' equity Preferred stock, $.01 par; $1,000 liquidation value per share; 500,000 shares authorized; Series A, 5% Fixed Rate Cumulative Perpetual Preferred Stock - 7,289 shares outstanding September 30, 2010, $7,336,000 liquidation preference 7,044,847 7,004,155 Series B, 9% Fixed Rate Cumulative Perpetual Preferred Stock - 364 shares outstanding September 30, 2010, $368,000 liquidation preference 389,753 394,045 Common stock, $.01 par; 2,000,000 shares authorized; issued: 1,836,328 outstanding: 1,121,884 shares - December 31, 2010 and 1,117,260 shares - June 30, 2010 18,363 18,363 Additional paid-in capital 9,404,725 9,440,356 Retained earnings 23,443,827 22,880,556 Accumulated other comprehensive income (718,112) 104,080 Treasury stock, at cost: 708,068 shares - June 30, 2010 and 719,068 shares - June 30, 2010 (10,966,694) (11,037,672) ------------- ------------- Total shareholders' equity 28,616,709 28,803,883 ------------- ------------- ------------- ------------- Total liabilities and shareholders' equity $ 325,702,532 $ 333,563,535 ------------- ------------- Consolidated Statement of Income Three Months Ended Six Months Ended December 31 December 31 ------------------------ ------------------------- 2010 2009 2010 2009 ----------- ----------- ------------ ----------- Unaudited Unaudited Unaudited Unaudited Interest and dividend income: Loans, including fees $ 3,064,258 $ 3,481,420 $ 6,180,322 $ 7,119,354 Taxable securities 620,845 633,570 877,677 1,291,257 Tax exempt securities 156,186 172,879 682,099 351,803 Other 13,778 9,062 22,096 13,888 ----------- ----------- ------------ ----------- Total interest and dividend income 3,855,067 4,296,931 7,762,194 8,776,302 ----------- ----------- ------------ ----------- Interest expense: Deposits 1,202,595 1,397,140 2,476,922 2,865,063 Borrowings 233,610 448,278 516,697 912,730 ----------- ----------- ------------ ----------- Total interest expense 1,436,205 1,845,418 2,993,619 3,777,793 ----------- ----------- ------------ ----------- Net interest income 2,418,862 2,451,513 4,768,575 4,998,509 Provision for loan losses 370,000 840,000 845,000 1,250,000 Net interest income after provision for loan losses 2,048,862 1,611,513 3,923,575 3,748,509 Noninterest income: Net gains on sales of securities 157,970 472,337 257,739 474,708 Net gains on sales of loans 158,078 72,762 319,235 164,180 Net gains (losses) on fixed assets - - - - Other than temporary impairment on securities - (150,000) - (150,000) Commission income 168,717 145,566 329,683 298,538 Service charges and fees 462,322 366,051 780,420 644,166 Earnings on life insurance 70,199 70,273 141,096 139,471 Other (20,969) 117,269 35,604 151,596 ----------- ----------- ------------ ----------- Total noninterest income 996,317 1,094,258 1,863,777 1,722,659 ----------- ----------- ------------ ----------- Noninterest expense: Salaries and benefits 982,765 1,009,152 2,015,592 2,017,304 Occupancy and equipment 242,077 242,636 492,841 478,434 Professional 96,524 89,352 197,571 160,621 Marketing 42,048 33,664 82,920 73,657 Deposit insurance premium 119,896 117,360 238,787 235,537 Regulatory assessment 25,441 24,299 50,883 48,597 Correspondent bank charges 19,088 18,277 40,435 37,696 Data processing 94,048 139,548 220,398 272,422 Printing, postage and supplies 55,762 59,258 107,204 127,504 Expense on life insurance (4,857) 16,694 11,213 33,388 Contribution expense 18,757 11,784 37,380 25,201 Other 258,106 250,936 530,519 553,518 ----------- ----------- ------------ ----------- Total noninterest expense 1,949,655 2,012,960 4,025,743 4,063,879 ----------- ----------- ------------ ----------- Income before income taxes 1,095,524 692,811 1,761,609 1,407,289 Income tax expense 295,245 138,978 468,301 300,148 ----------- ----------- ------------ ----------- Net income $ 800,279 $ 553,833 $ 1,293,308 $ 1,107,141 ----------- ----------- ------------ ----------- Preferred stock dividends and discount accretion, net 117,504 117,503 235,008 235,005 ----------- ----------- ------------ ----------- Net income attributable to common shareholders $ 682,775 $ 436,330 $ 1,058,300 $ 872,136 ----------- ----------- ------------ ----------- Three Months Ended Six Months Ended December 31 December 31 -------------------------- -------------------------- 2010 2009 2010 2009 ------------ ------------ ------------ ------------ Unaudited Unaudited Unaudited Unaudited Per common share data: Earnings $ 0.61 $ 0.40 $ 0.94 $ 0.79 Diluted earnings $ 0.61 $ 0.40 $ 0.94 $ 0.79 Dividends paid $ 0.22 $ 0.22 $ 0.44 $ 0.44 Average shares issued and outstanding 1,122,516 1,112,260 1,123,491 1,112,260 Shares outstanding end of period 1,121,884 1,112,260 1,121,884 1,112,260 Supplemental data: Net interest margin ** 3.00% 3.01% 2.96% 3.10% Return on average assets *** 0.94% 0.64% 0.76% 0.65% Return on average common equity *** 12.23% 8.00% 9.48% 8.15% December 31 June 30 ------------ ------------ 2010 2010 ------------ ------------ Nonperforming assets * $ 11,026,078 $ 8,694,798 Repossessed assets $ 1,384,915 $ 1,230,635 * Includes non-accruing loans, accruing loans delinquent more than 90 days and repossessed assets ** Yields reflected have not been computed on a tax equivalent basis *** Annualized
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