FFW Corporation Announces Earnings for the Quarter and Six Months Ended December 31, 2009


WABASH, IN--(Marketwire - January 27, 2010) - FFW Corporation (the "Corporation") (OTCBB: FFWC) (1/26/2010 Close: $12.00), parent corporation of Crossroads Bank, announced earnings for the three and six months ended December 31, 2009.

For the three months ended December 31, 2009, the Corporation reported net income of $554,000 or $0.40 per common share. This is compared to net income of $749,000 or $0.69 per common share for the quarter ended December 31, 2008. The earnings in the quarter ended December 31, 2009 reflect a net interest margin of $2,452,000. The provision for loan losses was $840,000 for the three months ended December 31, 2009 and $285,000 for the three months ended December 31, 2008. Noninterest income was $1,094,000 for the quarter ended December 31, 2009 as compared to $595,000 for the quarter ended December 31, 2008. Noninterest income was positively impacted by gains on the sales of certain securities and gains in the value of our mortgage servicing rights portfolio. Noninterest expense was $2,013,000 for the quarter ended December 31, 2009 compared to $1,770,000 for the quarter ended December 31, 2008.

For the six months ended December 31, 2009, the Corporation reported net income of $1,107,000 or $0.79 per common share. This is compared to a net loss of ($2,406,000) or ($2.19) per common share for the six months ended December 31, 2008. The net interest margin for the six months ended December 31, 2009 was $4,999,000 compared to $5,140,000 for the six months ended December 31, 2008. The provision for loan losses increased from $714,000 for the period ended December 31, 2008 to $1,250,000 for the period ended December 31, 2009. Total noninterest income (loss) was $1,723,000 for the six months ended December 31, 2009 and ($5,556,666) for the six months ended December 31, 2008. The period ended December 31, 2008 includes a non-cash impairment charge of $6,692,000 related to certain Federal National Mortgage Association ("Fannie Mae") preferred stocks. Noninterest expense increased from $3,538,000 for the six months ended December 31, 2008 to $4,064,000 for the six months ended December 31, 2009.

The three and six month periods ended December 31, 2009 represent a return on average common equity of 8.00% and 8.15%, respectively. Return on average common equity for the three and six month periods ended December 31, 2008 was 14.09% and (22.49%), respectively. Return on average total assets for the three and six month periods ended December 31, 2009 was 0.64% and 0.65%, respectively. This is compared to 0.94% and (1.50%) for the three and six month periods ended December 31, 2008.

The allowance for loan losses as a percentage of gross loans receivable was 1.43% at December 31, 2009 and 1.53% at June 30, 2009. Nonperforming assets increased to $7.6 million at December 31, 2009 from $4.8 million at June 30, 2009.

As of December 31, 2009, FFWC's equity-to-assets ratio was 8.19% compared to 8.26% at June 30, 2009. Total assets at December 31, 2009 were $341.0 million compared to $332.6 million at June 30, 2009. Shareholders' equity was $27.9 million at December 31, 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


                                               December 31      June 30
                                              -------------  -------------
                                                  2009           2009
                                              -------------  -------------
                                                Unaudited

Assets
Cash and due from financial institutions      $   3,887,519  $   3,830,526
Interest-earning deposits in other financial
 institutions - short term                        3,547,757      7,284,371
                                              -------------  -------------
  Cash and cash equivalents                       7,435,276     11,114,897
                                              -------------  -------------

Securities available for sale                    75,979,532     66,273,786
Loans receivable, net of allowance for loan
 losses of $3,394,049 at December 31, 2009 and
 $3,605,204 at June 30, 2009                    234,202,942    232,090,418
Loans held for sale                                 293,400      1,337,609
Federal Home Loan Bank stock, at cost             3,627,100      3,627,100
Accrued interest receivable                       1,676,599      1,425,374
Premises and equipment, net                       4,021,745      4,096,623
Mortgage servicing rights                           444,521        392,839
Cash surrender value of life insurance            6,233,793      6,094,321
Goodwill                                          1,213,898      1,213,898
Other assets                                      5,903,204      4,964,787
                                              -------------  -------------
  Total assets                                $ 341,032,010  $ 332,631,652
                                              =============  =============

Liabilities
Noninterest-bearing deposits                  $  16,008,192  $  12,924,010
Interest-bearing deposits                       253,681,161    248,643,498
                                              -------------  -------------
  Total deposits                                269,689,353    261,567,508
                                              -------------  -------------

Federal Home Loan Bank advances                  40,899,557     38,098,030
Accrued expenses and other liabilities            2,526,452      5,477,874
                                              -------------  -------------
  Total liabilities                             313,115,362    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                         6,963,463      6,922,771
  Series B, 9% Fixed Rate Cumulative
   Perpetual Preferred Stock - 364 shares
   outstanding September 30, 2009, $364,000
   liquidation preference                           398,337        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                        9,480,992      9,448,627
Retained earnings                                22,734,397     22,351,652
Accumulated other comprehensive (loss)             (564,482)      (541,380)
Treasury stock, at cost; 724,068 shares         (11,114,422)   (11,114,422)
                                              -------------  -------------
  Total shareholders' equity                     27,916,648     27,488,240
                                              -------------  -------------

                                              -------------  -------------
Total liabilities and shareholders' equity    $ 341,032,010  $ 332,631,652
                                              =============  =============





Consolidated Statement of Income


                        Three Months Ended          Six Months Ended
                            December 31                December 31
                    --------------------------  --------------------------
                        2009          2008          2009          2008
                    ------------  ------------- ------------  ------------
                      Unaudited     Unaudited     Unaudited     Unaudited
Interest and
 dividend income:
  Loans, including
   fees             $  3,481,420  $   3,833,061 $  7,119,354  $  7,958,892
  Taxable
   securities            633,570        565,538    1,291,257     1,273,642
  Nontaxable
   securities            172,879        187,476      351,803       364,191
  Other                    9,062          6,327       13,888        28,873
                    ------------  ------------- ------------  ------------
    Total interest
     and dividend
     income            4,296,931      4,592,402    8,776,302     9,625,598
                    ------------  ------------- ------------  ------------

Interest expense:
  Deposits             1,397,140      1,660,641    2,865,063     3,497,268
  Borrowings             448,278        481,435      912,730       988,148
                    ------------  ------------- ------------  ------------
    Total interest
     expense           1,845,418      2,142,076    3,777,793     4,485,416
                    ------------  ------------- ------------  ------------

Net interest income    2,451,513      2,450,326    4,998,509     5,140,182

Provision for loan
 losses                  840,000        285,000    1,250,000       714,000

Net interest income
 after provision for
 loan losses           1,611,513      2,165,326    3,748,509     4,426,182

Noninterest income:
  Net gains
   (losses) on
   sales of
   securities            472,337        187,336      474,708       187,336
  Net gains on
   sales of loans         72,762         38,217      164,180        58,026
  Other than
   temporary
   impairment on
   securities           (150,000)             -     (150,000)   (6,692,000)
  Commission income      145,566        142,322      298,538       288,645
  Service charges
   and fees              366,051         97,103      644,166       403,231
  Earnings on life
   insurance              70,273         75,282      139,471       145,055
  Other                  117,269         54,926      151,596        53,819
                    ------------  ------------- ------------  ------------
    Total
     noninterest
     income (loss)     1,094,258        595,186    1,722,659    (5,555,888)
                    ------------  ------------- ------------  ------------

Noninterest
 expense:
  Salaries and
   benefits            1,009,152        915,578    2,017,304     1,832,020
  Occupancy and
   equipment             242,636        209,804      478,434       413,782
  Professional            89,352         67,037      160,621       121,034
  Marketing               33,664         31,875       73,657        82,304
  Deposit insurance
   premium               117,360         44,274      235,537        83,353
  Regulatory
   assessment             24,299         23,080       48,597        46,161
  Correspondent
   bank charges           18,277         18,426       37,696        39,938
  Data processing        139,548        127,423      272,422       257,743
  Printing, postage
   and supplies           59,258         61,927      127,504       119,570
  Expense on life
   insurance              16,694         21,507       33,388        46,381
  Contribution
   expense                11,784         16,540       25,201        29,081
  Other                  250,936        232,524      553,518       466,234
                    ------------  ------------- ------------  ------------
    Total
     noninterest
     expense           2,012,960      1,769,995    4,063,879     3,537,601
                    ------------  ------------- ------------  ------------

Income (loss)
 before income
 taxes                   692,811        990,517    1,407,289    (4,667,307)

Income tax expense
 (benefit)               138,978        241,514      300,148    (2,261,050)

                    ------------  ------------- ------------  ------------
Net income (loss)   $    553,833  $     749,003 $  1,107,141  $ (2,406,257)
                    ============  ============= ============  ============
Preferred stock
 dividends and
 discount
 accretion, net          117,503         13,240      235,005        13,240
                    ------------  ------------- ------------  ------------
Net income (loss)
 attributable to
 common
 shareholders       $    436,331  $     735,763 $    872,136  $ (2,419,497)
                    ============  ============= ============  ============






                           Three Months Ended         Six Months Ended
                              December 31               December 31
                        ------------------------  ------------------------
                            2009         2008         2009         2008
                        -----------  -----------  -----------  -----------
                         Unaudited    Unaudited    Unaudited
Per common share data:
Earnings                $      0.40  $      0.69  $      0.79  $     (2.19)
Diluted earnings        $      0.40  $      0.69  $      0.79  $     (2.19)
Dividends paid          $      0.22  $      0.22  $      0.44  $      0.44
Average shares issued
 and outstanding          1,112,260    1,112,260    1,112,260    1,110,619
Shares outstanding end
 of period                1,112,260    1,112,260    1,112,260    1,112,260

Supplemental data:
Net interest margin **         3.01%        3.23%        3.10%        3.38%
Return on average
 assets ***                    0.64%        0.94%        0.65%       -1.50%
Return on average
 common equity ***             8.00%       14.09%        8.15%      -22.49%

                        December 31    June 30
                        -----------  -----------
                           2009         2009
                        -----------  -----------
Nonperforming assets *  $ 7,642,869  $ 4,829,152
Repossessed assets      $ 1,093,485  $ 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