FFW Records Impairment for GSE Stock

FFW Corp., the parent company of First Federal Savings Bank, Wabash, Ind., has recorded a noncash impairment charge of approximately $1.8 million ($1.38 per share) for the second fiscal quarter of 2005 related to Fannie Mae and Freddie Mac preferred stock, resulting in a net loss of $1.2 million for the quarter.The company said the charge had no effect on its capital because the unrealized losses were already recorded as a mark-to-market adjustment in other comprehensive income. FFW said the decision to take the charge was based on several factors, including "recent public disclosures" at Fannie Mae and Freddie Mac, the "duration and level of market values below book cost" on the stocks, and Fannie's December multibillion-dollar issuance of preferred stock "with a substantially different structure and higher yields than previous offerings." First Federal Savings can be found online at http://www.ffsbwabash.com.