FFW Corporation Announces Record Earnings for the Year Ended June 30, 2007

WABASH, IN--(Marketwire - July 25, 2007) - FFW Corporation (OTCBB: FFWC) (7/24/2007 Close: $25.75), parent corporation of First Federal Savings Bank of Wabash, Indiana, announced operating results for the fourth fiscal quarter of 2007 and year ended June 30, 2007. Net income and diluted net income per share for the year ended June 30, 2007 were records for the Company at $2,872,000 and $2.33 compared to $2,636,000 and $2.08 at June 30, 2006, increases of 9.0% and 12.0%, respectively. Net income for the quarter ended June 30, 2007, was $628,000 compared to $683,000 for the quarter ended June 30, 2006. Diluted net income per share for the fourth fiscal quarter of 2007 amounted to $0.52 compared to $0.55 reported in the fourth fiscal quarter of 2006.

The record earnings for fiscal 2007 were primarily impacted by increased net interest or margin income of $453,000 and increased gain on sale of securities of $305,000. These increases were partially offset by decreased gain on sale of loans of $103,000, decreased other noninterest income of $129,000 and $108,000 in increased contribution expense in fiscal 2007.

President and CEO, Roger Cromer, commented, "We are very pleased with our record performance in a difficult operating environment. We had solid loan and deposit growth throughout the year. Loans increased by 11.7% and deposits increased by 7.6%. The success of the new products and services we have added each year continue the evolution of our balance sheet from a traditional thrift to a full service commercial bank."

Net income was $55,409 lower for the comparable three-month periods in 2007 despite $19,582 more in net income before income taxes. The three-month period results for fiscal 2007 were impacted by an increase in the effective tax rate from 14.0% for the three months ended June 30, 2006 to 22.8% for the three months ended June 30, 2007. The year to date effective tax rates were 16.1% for the twelve months ended June 30, 2006 and 16.9% for the twelve months ended June 30, 2007. Tax advantages were weighted towards the earlier quarters of fiscal 2007. The three-month results ending June 30, 2007 were also impacted by an impairment charge of $69,000 relating to a low income housing investment. The impairment was recorded in the fourth quarter as the carrying value exceeded the value of future tax credits.

The fiscal 2007 fourth quarter and year to date earnings represent a return on average shareholders' equity of 9.80% and 11.43% compared to 11.39% and 11.03% for the periods ended June 30, 2006. Return on average total assets for the three and twelve-month periods ended June 30, 2007 were 0.89% and 1.01% compared to 1.00% and 0.99% for the periods ended June 30, 2006.

The allowance for loan losses as a percentage of net loans receivable was 1.28% at June 30, 2007 and 1.59% at June 30, 2006. Nonperforming assets were $2.5 million at June 30, 2007 and June 30, 2006.

As of June 30, 2007, FFWC's equity-to-assets ratio was 8.60% compared to 8.50% at June 30, 2006. Shareholders' equity was $25.0 million compared to $23.9 million at June 30, 2006. Total assets at June 30, 2007 were $290.5 million compared to $280.9 million at June 30, 2006. Loans receivable increased $21.7 million during fiscal 2007 while securities available for sale decreased by $13.2 million. Total deposits at June 30, 2007 increased by $14.9 million from June 30, 2006 while total FHLB borrowings decreased by $6.7 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 on the OTC Bulletin Board under the symbol "FFWC.OB." Our website address is www.ffsbwabash.com.

                              FFW Corporation
                      Selected Financial Information
                        Consolidated Balance Sheets

                                                    June 30,     June 30,
                                                      2007         2006
                                                  -----------  -----------
ASSETS :                                           Unaudited

Cash and due from financial institutions            5,250,292    5,328,257
Interest-earning deposits in other financial
 institutions - short term                          2,372,525    1,192,238
                                                  -----------  -----------
Cash and cash equivalents                           7,622,817    6,520,495

Securities available for sale                      55,673,248   68,920,497
Loans receivable, net of allowance for loan
 losses of $2,654,064 at June 30, 2007 and
 $2,959,513 at June 30, 2006                      207,776,065  186,044,335
Loans held for sale                                   178,250       80,000
Federal Home Loan Bank stock, at cost               3,627,100    3,774,100
Accrued interest receivable                         1,730,689    1,745,460
Premises and equipment, net                         4,184,657    4,364,694
Mortgage servicing rights                             572,548      601,690
Cash surrender value of life insurance              5,579,962    5,355,756
Goodwill                                            1,213,898    1,213,898
Other assets                                        2,386,208    2,277,195
                                                  -----------  -----------
Total Assets                                      290,545,442  280,898,120
                                                  -----------  -----------

LIABILITIES AND SHAREHOLDERS' EQUITY:
Liabilities:
Noninterest-bearing deposits                       13,706,178   15,151,594
Interest-bearing deposits                         196,758,171  180,398,726
                                                  -----------  -----------
Total Deposits                                    210,464,349  195,550,320

Federal Home Loan Bank advances                    52,194,061   58,910,506
Accrued expenses and other liabilities              2,898,526    2,561,655
                                                  -----------  -----------
Total Liabilities                                 265,556,936  257,022,481

Shareholders' Equity:
Preferred stock, $.01 par; 500,000 shares
 authorized, none issued                                  ---          ---
Common stock, $.01 par; 2,000,000 shares
 authorized; issued: 1,836,328, outstanding:
 1,201,478 - June 30, 2007; issued: 1,836,328,
 outstanding: 1,232,081 - June 30, 2006;               18,363       18,363
Additional paid-in capital                          9,562,380    9,525,923
Retained earnings                                  24,334,484   22,389,708
Accumulated other comprehensive income (loss)        (164,556)    (222,006)
Unearned management retention plan shares             (81,040)     (85,971)
Treasury stock at cost, shares: 634,850 - June
 30, 2007 and 604,247 - June 30, 2006              (8,681,125)  (7,750,378)
                                                  -----------  -----------
                Total Shareholders' Equity         24,988,506   23,875,639
                                                  -----------  -----------

Total Liabilities and Shareholders' Equity        290,545,442  280,898,120
                                                  ===========  ===========


Consolidated Statements of Income

                         3 months ended June 30   12 months ended June 30
                         Unaudited    Unaudited    Unaudited
                            2007         2006         2007         2006
                        -----------  ------------ ------------ ------------
Interest and dividend
 income:
   Loans, including
    fees                $ 3,876,755  $  3,209,616 $ 14,571,409 $ 11,803,366
   Taxable securities       617,343       748,014    2,605,289    2,458,339
   Nontaxable securities    143,833       114,946      694,172      751,030
   Other                     38,403        35,411      137,296      162,913
                        -----------  ------------ ------------ ------------
      Total interest
       and dividend
       income             4,676,334     4,107,987   18,008,166   15,175,648

Interest expense:
   Deposits               1,872,051     1,387,145    7,241,910    4,835,761
   Borrowings               717,457       777,170    2,805,680    2,831,985
                        -----------  ------------ ------------ ------------
      Total interest
       expense            2,589,508     2,164,315   10,047,590    7,667,746
                        -----------  ------------ ------------ ------------

Net interest income       2,086,826     1,943,672    7,960,576    7,507,902

Provision for loan
 losses                     120,000       120,000      480,000      491,000
                        -----------  ------------ ------------ ------------

Net interest income
 after provision for
   loan losses            1,966,826     1,823,672    7,480,576    7,016,902

Noninterest income:
   Net gains on sales
    of securities            (1,500)            0      365,206       60,599
   Net gains on sales
    of loans                 18,650        20,636      117,919      220,574
   Commission income        127,987       134,177      523,654      513,184
   Service charges and
    fees                    386,589       289,464    1,310,037    1,284,609
   Earnings on life
    insurance                65,662        62,033      255,842      243,255
   Other                    (53,462)       42,123       16,598      145,601

                        -----------  ------------ ------------ ------------
      Total noninterest
       income               543,926       548,433    2,589,256    2,467,822

Noninterest expense:
  Salaries and benefits     844,093       790,554    3,272,530    3,144,557
  Occupancy and
   equipment                241,201       218,363      875,914      810,901
  Professional               58,176        60,395      223,486      264,470
  Marketing                  33,433        22,215      172,258      114,135
  Deposit insurance
   premium                    6,346         5,792       24,160       23,565
  Regulatory assessment      21,165        19,724       82,246       77,461
  Correspondent bank
   charges                   26,119        30,371      111,001      145,870
  Data processing           160,938       139,864      633,096      557,802
  Printing, postage and
   supplies                  41,317        60,063      196,451      221,523
  Expense on life
   insurance                 25,626        24,265      100,184       95,221
  Contribution expense       44,891         4,496      129,369       21,658
  Other                     193,987       202,125      793,310      866,714
                       ------------  ------------ ------------ ------------
    Total noninterest
     expense              1,697,292     1,578,227    6,614,005    6,343,877
                       ------------  ------------ ------------ ------------

Income before income
 taxes                      813,460       793,878    3,455,827    3,140,847

Income tax expense          185,784       110,793      584,135      504,479
                       ------------  ------------ ------------ ------------

Net income             $    627,676  $    683,085 $  2,871,692 $  2,636,368
                       ============  ============ ============ ============



                                      Unaudited       Unaudited
                                 Three Months Ended   Twelve Months Ended
                                6/30/2007  6/30/2006  6/30/2007  6/30/2006
                                ---------  ---------  ---------  ---------
Earnings per common share
Primary                         $    0.52  $    0.55  $    2.36  $    2.11
Fully diluted                   $    0.52  $    0.55  $    2.33  $    2.08
Dividend paid per share         $    0.19  $    0.18  $    0.76  $    0.72
Average shares outstanding      1,207,704  1,233,169  1,215,521  1,249,945
Shares outstanding end of
 period                         1,201,478  1,232,081  1,201,478  1,232,081

Supplemental data:
Net interest margin **               3.09%      3.03%      2.97%      3.03%
Return on average assets ***         0.89%      1.00%      1.01%      0.99%
Return on average equity ***         9.80%     11.39%     11.43%     11.03%

                                                      6/30/2007  6/30/2006
                                                      ---------  ---------
Nonperforming assets *                                2,492,634  2,500,154
Repossessed assets                                      750,766    584,947

*   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: Contact: Tim Sheppard CFO 260-563-3185 x228