FFW Corporation Announces Earnings for the Quarter Ended September 30, 2009


WABASH, IN--(Marketwire - October 28, 2009) - FFW Corporation (the "Corporation") (OTCBB: FFWC) (10/27/2009 Close: $12.00), parent corporation of Crossroads Bank, announced earnings for the three months ended September 30, 2009.

For the three months ended September 30, 2009, the Corporation reported net income of $553,000 or $0.39 per common share. This is compared to net loss of ($3,155,000) for the quarter ended September 30, 2008. The period ended September 30, 2009 includes a non-cash impairment charge, net of the tax benefit, of $3,945,000 related to certain Federal National Mortgage Association ("Fannie Mae") preferred stocks. These securities were sold prior to December 31, 2008. The earnings in the quarter ended September 30, 2009 reflect a net interest margin of $2,547,000, which is down only 5.3% from the prior year same quarter. The provision for loan losses was $410,000 for the three months ended September 30, 2009 and $429,000 for the three months ended September 30, 2008. Noninterest income was $628,000 for the quarter ended September 30, 2009 as compared to noninterest loss of ($6,151,000) for the quarter ended September 30, 2008. The noninterest loss includes the Fannie Mae impairment charge. Noninterest expense increased from $1,768,000 for the three months ended September 30, 2008 to $2,051,000 for the three months ended September 30, 2009. Noninterest expenses will be impacted in the current year by deposit insurance premiums and costs associated with the core data processor conversion scheduled for the spring of 2010. This conversion is expected to increase efficiency and functionality.

Emily Boardman, Vice President and Chief Financial Officer, stated, "This first fiscal quarter has sparked enthusiasm within the Company for the coming year. We are squarely focused on capital preservation and capital growth and ensuring the loan loss allowance is adequate to absorb anticipated losses."

"While there are still unavoidable challenges expected in the coming year, there are also opportunities," said Roger Cromer, President and Chief Executive Officer. "We feel we are well equipped to meet those challenges and capitalize on select opportunities to build for the future."

The three month period ended September 30, 2009 represents a return on average common equity of 8.31% compared to (56.49%) for the three month period ended September 30, 2008. Return on average total assets for the three months ended September 30, 2009 and 2008 was 0.66% and (3.94%), respectively.

The allowance for loan losses as a percentage of gross loans receivable was 1.57% at September 30, 2009 and 1.53% at June 30, 2009. Nonperforming assets increased to $5.1 million at September 30, 2009 from $4.8 million at June 30, 2009.

As of September 30, 2009, FFWC's equity-to-assets ratio was 8.40% compared to 8.26% at June 30, 2009. Total assets at September 30, 2009 were $335.6 million compared to $332.6 million at June 30, 2009. Shareholders' equity was $28.2 million at September 30, 2009 compared to $27.5 million at June 30, 2009. Crossroads Bank exceeds all applicable regulatory requirements to be considered "well capitalized."

Crossroads 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 Indiana banking centers located in Columbia City, North Manchester, South Whitley, and Syracuse. 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 on the OTC Bulletin Board under the symbol "FFWC.OB." Our website address is www.crossroadsbanking.com.

                                   FFW Corporation
                           Selected Financial Information


Consolidated Balance Sheet

                                              September 30      June 30
                                              -------------  -------------
                                                  2009           2009
                                              -------------  -------------
                                                Unaudited
Assets
Cash and due from financial institutions      $   9,980,835  $   3,830,526
Interest-earning deposits in other financial
 institutions - short term                        1,416,330      7,284,371
                                              -------------  -------------
   Cash and cash equivalents                     11,397,165     11,114,897
                                              -------------  -------------

Securities available for sale                    68,819,028     66,273,786
Loans receivable, net of allowance for loan
 losses of $3,723,422 at September 30, 2009
 and $3,605,204 at June 30, 2009                233,429,064    232,378,508
Loans held for sale                                 278,376      1,049,519
Federal Home Loan Bank stock, at cost             3,627,100      3,627,100
Accrued interest receivable                       1,632,256      1,425,374
Premises and equipment, net                       4,059,590      4,096,623
Mortgage servicing rights                           378,020        392,839
Cash surrender value of life insurance            6,163,519      6,094,321
Goodwill                                          1,213,898      1,213,898
Deferred tax asset                                2,357,544      2,357,544
Other assets                                      2,222,884      2,607,243
                                              -------------  -------------
   Total assets                               $ 335,578,444  $ 332,631,652
                                              =============  =============

Liabilities
Noninterest-bearing deposits                  $  14,219,016  $  12,924,010
Interest-bearing deposits                       251,810,814    248,643,498
                                              -------------  -------------
   Total deposits                               266,029,830    261,567,508
                                              -------------  -------------

Federal Home Loan Bank advances                  38,098,030     38,098,030
                                                  2,066,806      2,066,806
Accrued expenses and other liabilities            1,180,555      3,411,068
                                              -------------  -------------
   Total liabilities                            307,375,221    305,143,412
                                              -------------  -------------

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, 2009,
    $7,289,000 liquidation preference             6,943,117      6,922,771
   Series B, 9% Fixed Rate Cumulative
    Perpetual Preferred Stock - 364 shares
    outstanding September 30, 2009, $364,000
    liquidation preference                          400,483        402,629
Common stock, $.01 par; 2,000,000 shares
 authorized;                                         18,363         18,363
   issued: 1,836,328
   outstanding: 1,112,260
Additional paid-in capital                        9,464,810      9,448,627
Retained earnings                                22,542,765     22,351,652
Accumulated other comprehensive (loss)              (51,893)      (541,380)
Treasury stock, at cost; 724,068 shares         (11,114,422)   (11,114,422)
                                              -------------  -------------
   Total shareholders' equity                    28,203,223     27,488,240
                                              -------------  -------------

                                              -------------  -------------
Total liabilities and shareholders' equity    $ 335,578,444  $ 332,631,652
                                              =============  =============




Consolidated Statement of Income
                                                    Three Months Ended
                                                       September 30
                                                ---------------------------
                                                    2009          2008
                                                ------------- ------------
                                                  Unaudited     Unaudited
Interest and dividend income:
  Loans, including fees                         $   3,637,935 $  4,125,833
  Taxable securities                                  657,687      708,103
  Nontaxable securities                               178,924      176,715
  Other                                                 4,826       22,546
                                                ------------- ------------
    Total interest and dividend income              4,479,372    5,033,197
                                                ------------- ------------

Interest expense:
  Deposits                                          1,467,922    1,836,626
  Borrowings                                          464,452      506,713
                                                ------------- ------------
    Total interest expense                          1,932,374    2,343,339
                                                ------------- ------------

Net interest income                                 2,546,998    2,689,858

Provision for loan losses                             410,000      429,000

Net interest income after provision for
  loan losses                                       2,136,998    2,260,858

Noninterest income:
  Net gains (losses) on sales of securities             2,371            -
  Net gains on sales of loans                          91,419       19,808
  Net gains (losses) on fixed assets                        -            -
  Other than temporary impairment on securities
    Total impairment losses                                 -   (6,692,000)
    Losses recognized in other comprehensive
     income                                                 -            -
                                                ------------- ------------
    Net impairment loss recognized in earnings              -   (6,692,000)
  Commission income                                   152,972      146,322
  Service charges and fees                            278,115      306,128
  Earnings on life insurance                           69,198       69,773
  Other                                                34,327       (1,106)
                                                ------------- ------------
    Total noninterest income (loss)                   628,402   (6,151,075)
                                                ------------- ------------

Noninterest expense:
  Salaries and benefits                             1,008,151      916,443
  Occupancy and equipment                             235,798      203,978
  Professional                                         71,270       53,997
  Marketing                                            39,993       50,430
  Deposit insurance premium                           118,177       39,079
  Regulatory assessment                                24,299       23,081
  Correspondent bank charges                           19,420       21,512
  Data processing                                     132,873      130,320
  Printing, postage and supplies                       68,245       57,644
  Expense on life insurance                            16,694       24,874
  Contribution expense                                 13,417       12,541
  Other                                               302,583      233,711
                                                ------------- ------------
    Total noninterest expense                       2,050,920    1,767,610
                                                ------------- ------------

Income (loss) before income taxes                     714,480   (5,657,827)

Income tax expense (benefit)                          161,170   (2,502,564)

                                                ------------- ------------
Net income (loss)                               $     553,310 $ (3,155,263)
                                                ============= ============
Preferred stock dividends and discount
 accretion, net                                       117,503            -
                                                ------------- ------------
Net income (loss) attributable to common
 shareholders                                   $     435,807 $ (3,155,263)
                                                ============= ============




                                                     Three Months Ended
                                                        September 30
                                                  ------------------------
                                                      2009         2008
                                                  -----------  -----------
                                                   Unaudited    Unaudited
Per common share data:
Earnings                                          $      0.39  $     (2.88)
Diluted earnings                                  $      0.39  $     (2.88)
Dividends paid                                    $      0.22  $      0.22
Average shares issued and outstanding               1,112,260    1,108,977
Shares outstanding end of period                    1,112,260    1,112,260

Supplemental data:
Net interest margin **                                   3.19%        3.53%
Return on average assets ***                             0.66%       -3.94%
Return on average common equity ***                      8.31%      -56.49%

                                                  September 30   June 30
                                                  -----------  -----------
                                                     2009          2009
                                                  -----------  -----------
Nonperforming assets *                            $ 5,113,193  $ 4,829,152
Repossessed assets                                $ 1,384,985  $ 1,334,259

*   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

Contact Information: FOR MORE INFORMATION Contact: Emily Boardman Treasurer 260-563-3185