FFW Corporation Announces Earnings for the Quarter Ended September 30, 2007

WABASH, IN--(Marketwire - October 24, 2007) - FFW Corporation (OTCBB: FFWC) (10/23/2007 Close: $25.65), parent corporation of First Federal Savings Bank of Wabash, Indiana, announced operating results for the first fiscal quarter of 2008. Net income and diluted net income per share for the three months ended September 30, 2007 were $634,000 and $0.53 compared to $931,000 and $0.75 at September 30, 2006.

The earnings for fiscal year 2008 were positively impacted by increased net interest income or margin income of $113,000, a swing on sales of repossessed assets of $35,000 and an increase in deposit account fees of $39,000. Results were negatively impacted by a decrease in the gains on sales of investments of $360,000 and an increase in income tax expense of $112,000.

Net income was $297,000 lower for the comparable three-month period in fiscal year 2008 in part due to an increase in the effective tax rate from 10.7% for the three months ended September 30, 2006 to 24.9% for the three months ended September 30, 2007. One factor impacting fiscal year 2007 was a tax advantage resulting from the $393,000 gain on sale of securities, on which an other than temporary impairment charge was taken in fiscal 2005 and for which no tax benefit was booked. Another factor was the decline in the dividends received deduction from $106,000 for the three months ended September 30, 2006 to $4,000 for the three months ended September 30, 2007.

The fiscal 2008 first quarter earnings represent a return on average shareholders' equity of 10.00% compared to 15.09% for the period ended September 30, 2006. Return on average total assets for the three month period ended September 30, 2007 was 0.87% compared to 1.31% for the period ended September 30, 2006.

The allowance for loan losses as a percentage of net loans receivable was 1.37% at September 30, 2007 and 1.28% at June 30, 2007. Nonperforming assets were $3.4 million at September 30, 2007 compared to $2.5 million at June 30, 2007.

As of September 30, 2007, FFWC's equity-to-assets ratio was 8.70% compared to 8.60% at June 30, 2007. Shareholders' equity was $25.4 million compared to $25.0 million at June 30, 2007. Total assets at September 30, 2007 were $291.3 million compared to $290.5 million at June 30, 2007. Loans receivable increased $1.3 million from June 30, 2007 to September 30, 2007 while securities available for sale increased by $0.5 million. Total deposits at September 30, 2007 increased by $4.0 million from June 30, 2007 while total FHLB borrowings decreased by $3.4 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

                                                9/30/2007      6/30/2007
                                              -------------  -------------
                                                Unaudited
                                              -------------
ASSETS:

Cash and due from financial institutions      $   5,155,596  $   5,250,292
Interest-earning deposits in other financial
 institutions - short term                        1,914,355      2,372,525
                                              -------------  -------------
Cash and cash equivalents                         7,069,951      7,622,817

Securities available for sale                    56,173,242     55,673,248
Loans receivable, net of allowance for loan
 losses of $2,873,714 at September 30, 2007
 and $2,654,064 at June 30, 2007                209,080,150    207,776,065
Loans held for sale                                 112,936        178,250
Federal Home Loan Bank stock, at cost             3,627,100      3,627,100
Accrued interest receivable                       1,976,179      1,730,689
Premises and equipment, net                       4,126,427      4,184,657
Mortgage servicing rights                           531,691        572,548
Cash surrender value of life insurance            5,638,146      5,579,962
Goodwill                                          1,213,898      1,213,898
Other assets                                      1,798,200      2,386,208
                                              -------------  -------------
Total Assets                                  $ 291,347,920  $ 290,545,442
                                              =============  =============

LIABILITIES AND SHAREHOLDERS' EQUITY:
Liabilities:
Noninterest-bearing deposits                     15,175,042     13,706,178
Interest-bearing deposits                       199,305,889    196,758,171
                                              -------------  -------------
Total Deposits                                  214,480,931    210,464,349

Federal Home Loan Bank advances                  48,794,061     52,194,061
Accrued expenses and other liabilities            2,713,608      2,898,526
                                              -------------  -------------
Total Liabilities                               265,988,600    265,556,936

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: 1,190,518
 - Sept. 30, 2007
 issued: 1,836,328, outstanding: 1,201,478
 - June 30, 2007                                     18,363         18,363
Additional paid-in capital                        9,499,303      9,481,340
Retained earnings                                24,718,528     24,334,484
Accumulated other comprehensive income (loss)       132,131       (164,556)
Treasury stock at cost, shares: 645,810 -
 September 30, 2007 and 634,850 - June 30,
 2007                                            (9,009,005)    (8,681,125)
                                              -------------  -------------
                Total Shareholders' Equity       25,359,320     24,988,506
                                              -------------  -------------

Total Liabilities and Shareholders' Equity    $ 291,347,920  $ 290,545,442
                                              =============  =============



Consolidated Statements of Income

                                                     Three months ended
                                                   9/30/2007    9/30/2006
                                                  ------------ -----------
Interest and dividend income:
   Loans, including fees                          $  3,921,416 $ 3,457,978
   Taxable securities                                  614,061     693,040
   Nontaxable securities                               141,808     189,375
   Other                                                30,393      27,572
                                                  ------------ -----------
      Total interest and dividend income             4,707,678   4,367,965

Interest expense:
   Deposits                                          1,940,306   1,692,364
   Borrowings                                          707,696     729,082
                                                  ------------ -----------
      Total interest expense                         2,648,002   2,421,446

Net interest income                                  2,059,676   1,946,519

Provision for loan losses                              120,000     120,000

Net interest income after provision for
 loan losses                                         1,939,676   1,826,519

Noninterest income:
   Net gains on sales of securities                          -     360,051
   Net gains on sales of loans                          22,620      20,592
   Net gains (losses) on fixed assets                        -           -
   Commission income                                   126,594     120,761
   Service charges and fees                            305,681     271,630
   Earnings on life insurance                           66,348      62,960
   Other                                                43,648        (326)
                                                  ------------ -----------
      Total noninterest income                         564,891     835,668

Noninterest expense:
   Salaries and benefits                               865,993     800,926
   Occupancy and equipment                             202,912     206,318
   Professional                                         52,244      60,652
   Marketing                                            35,358      56,162
   Deposit insurance premium                             6,125       5,739
   Regulatory assessment                                21,608      19,958
   Correspondent bank charges                           24,216      29,158
   Data processing                                     159,865     151,920
   Printing, postage and supplies                       44,004      51,743
   Expense on life insurance                            25,729      24,348
   Contribution expense                                  5,174       8,153
   Other                                               201,907     203,030
                                                  ------------ -----------
      Total noninterest expense                      1,645,135   1,618,107


Income before income taxes                             859,432   1,044,080

Income tax expense                                     225,042     112,649

Net income                                        $    634,390 $   931,431
                                                  ------------ -----------



                                         Three months ended
                                      9/30/2007      9/30/2006
                                    -------------  -------------
Earnings per common share:
Primary                             $        0.53  $        0.76
Fully diluted                       $        0.53  $        0.75
Dividend paid per share             $        0.21  $        0.19
Average shares outstanding              1,194,876      1,225,122
Shares outstanding end of period        1,190,518      1,225,381

Supplemental data:
Net interest margin **                       2.99%          2.92%
Return on average assets ***                 0.87%          1.31%
Return on average equity ***                10.00%         15.09%

                                      9/30/2007      6/30/2007
                                    -------------  -------------
Nonperforming assets *                  3,407,273      2,492,634
Repossessed assets                        709,607        750,766

*   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: Tim Sheppard CFO 260-563-3185 x228