FFW Corporation Announces Record Earnings for the Year Ended June 30, 2008

WABASH, IN--(Marketwire - July 30, 2008) - FFW Corporation (OTCBB: FFWC) (7/29/2008 Close: $19.00), parent corporation of Crossroads Bank, announced operating results for the fourth fiscal quarter of 2008 and twelve months ended June 30, 2008. Net income and diluted net income per share for the three months ended June 30, 2008 were $873,000 and $0.77 compared to $628,000 and $0.52 for the three months ended June 30, 2007. Net income and diluted net income per share for the twelve months ended June 30, 2008 were $2,910,000 and $2.49 compared to $2,872,000 and $2.33 at June 30, 2007.

Net interest income increased $281,000 and 13.4% from the prior year's same quarter and $864,000 and 10.9% from the prior fiscal year to date. Provision for loan losses increased $122,000 and 25.4% from the prior year to date. Noninterest income increased $140,000 and 25.7% from the quarter ended June 30, 2007 and decreased $148,000 and 5.7% from the prior fiscal year to date. The fiscal year 2008 decrease is due to a fiscal year 2007 gain on sales of certain securities that did not recur in fiscal year 2008. Noninterest expense increased $50,000 and 3.0% from the prior year's same quarter and 286,000 and 4.3% from the prior fiscal year to date. The year to date increase is due to increases in salaries and benefits and expenses associated with the bank's name change. Income tax expense remained relatively consistent in the fourth quarter of 2008 compared to the fourth quarter of 2007 and increased $269,000 and 46% from the prior fiscal year to date. The effective tax rate increased from 16.9% in fiscal year 2007 to 22.7% in fiscal year 2008.

Roger K. Cromer, President and Chief Executive Officer, stated, "We are extremely pleased to perform at such a high level during a cycle in which the financial industry is experiencing significant asset quality issues. We have had numerous accomplishments this year, notably our name change to 'Crossroads Bank.' At this time, we feel well positioned for continued success in the future."

The fiscal 2008 fourth quarter and year to date earnings represent a return on average shareholders' equity of 14.23% and 11.48% compared to 9.80% and 11.43% for the periods ended June 30, 2007. Return on average total assets for the three and twelve-month periods ended June 30, 2008 were 1.11% and 0.96% compared to 0.89% and 1.01% for the periods ended June 30, 2007.

The allowance for loan losses as a percentage of gross loans receivable was 1.20% at June 30, 2008 and 1.26% at June 30, 2007. Nonperforming assets were $3.3 million at June 30, 2008 and $2.5 million at June 30, 2007.

As of June 30, 2008, FFWC's equity-to-assets ratio was 7.46% compared to 8.60% at June 30, 2007. Shareholders' equity was $23.6 million compared to $25.0 million at June 30, 2007. The decrease in equity is due to stock repurchases totaling approximately 107,000 shares. Total assets at June 30, 2008 were $315.9 million compared to $290.5 million at June 30, 2007. Total deposits increased $33.7 million, primarily due to the municipal deposit program, and borrowings decreased $6.9 million.

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 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.crossroadsbanking.com.

                             FFW Corporation
                     Selected Financial Information

Consolidated Balance Sheets

                                                6/30/2008      6/30/2007
                                              -------------  -------------
                                                Unaudited
                                              -------------
Assets

Cash and due from financial institutions      $   6,095,999  $   5,250,292
Interest-earning deposits in other financial
 institutions - short term                        2,347,131      2,372,525
                                              -------------  -------------
Cash and cash equivalents                         8,443,130      7,622,817

Securities available for sale                    60,367,678     55,673,248
Loans receivable, net of allowance for loan
 losses of $2,768,622 at June 30, 2008 and
 $2,654,064 at June 30, 2007                    227,839,891    207,776,065
Loans held for sale                                  77,000        178,250
Federal Home Loan Bank stock, at cost             3,627,100      3,627,100
Accrued interest receivable                       1,560,163      1,730,689
Premises and equipment, net                       4,040,369      4,184,657
Mortgage servicing rights                           488,452        572,548
Cash surrender value of life insurance            5,815,227      5,579,962
Goodwill                                          1,213,898      1,213,898
Other assets                                      2,412,579      2,386,208
                                              -------------  -------------
Total Assets                                  $ 315,885,487  $ 290,545,442
                                              =============  =============

Liabilities and Shareholders' Equity

Liabilities:
Noninterest-bearing deposits                  $  13,737,624  $  13,706,178
Interest-bearing deposits                       230,446,720    196,758,171
                                              -------------  -------------
Total Deposits                                  244,184,344    210,464,349

Federal Home Loan Bank advances                  45,283,087     52,194,061
Accrued expenses and other liabilities            2,856,193      2,898,526
                                              -------------  -------------
Total Liabilities                               292,323,624    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:
 1,100,260 - June 30, 2008 issued: 1,836,328,
 outstanding: 1,201,478 - June 30, 2007              18,363         18,363
Additional paid-in capital                        9,530,608      9,481,340
Retained earnings                                26,273,339     24,334,484
Accumulated other comprehensive income (loss)      (961,825)      (164,556)
Treasury stock at cost, shares: 736,068 -
 June 30, 2008 and 634,850 - June 30, 2007      (11,298,622)    (8,681,125)
                                              -------------  -------------
Total Shareholders' Equity                       23,561,863     24,988,506
                                              -------------  -------------

Total Liabilities and Shareholders' Equity    $ 315,885,487  $ 290,545,442
                                              =============  =============




Consolidated Statements of Income

                            Three Months Ended       Twelve Months Ended
                          6/30/2008    6/30/2007    6/30/2008   6/30/2007
                          ----------- -----------  -----------  -----------
                          Unaudited    Unaudited    Unaudited
Interest and dividend
 income:
   Loans, including fees  $ 3,762,848 $ 3,876,755  $15,549,609  $14,571,409
   Taxable securities         733,397     617,343    2,752,774    2,605,289
   Nontaxable securities      156,473     143,833      608,708      694,172
   Other                       24,988      38,403      109,255      137,296
                          ----------- -----------  -----------  -----------
      Total interest and
       dividend income      4,677,706   4,676,334   19,020,346   18,008,166

Interest expense:
   Deposits                 1,783,400   1,872,051    7,619,880    7,241,910
   Borrowings                 526,918     717,457    2,576,098    2,805,680
                          ----------- -----------  -----------  -----------
      Total interest
       expense              2,310,318   2,589,508   10,195,978   10,047,590

Net interest income         2,367,388   2,086,826    8,824,368    7,960,576

Provision for loan losses     242,000     120,000      602,000      480,000

Net interest income after
 provision for loan losses  2,125,388   1,966,826    8,222,368    7,480,576

Noninterest income:
   Net gains on sales of
    securities                 11,719      (1,500)      70,944      365,206
   Net gains on sales of
    loans                      43,056      18,650      197,464      117,919
   Commission income          135,164     127,987      534,276      523,654
   Service charges and
    fees                      396,153     386,589    1,164,627    1,310,037
   Earnings on life
    insurance                  68,435      65,662      268,707      255,842
   Other                       29,091     (53,462)     204,938       16,598
                          ----------- -----------  -----------  -----------
      Total noninterest
       income                 683,618     543,926    2,440,956    2,589,256

Noninterest expense:
   Salaries and benefits      908,478     844,093    3,496,775    3,272,530
   Occupancy and
    equipment                 220,832     241,201      838,517      875,914
   Professional                42,045      58,176      213,365      223,486
   Marketing                   46,158      33,433      268,311      172,258
   Deposit insurance
    premium                     5,970       6,346       24,338       24,160
   Regulatory assessment       22,187      21,165       87,590       82,246
   Correspondent bank
    charges                    22,339      26,119       88,136      111,001
   Data processing            135,026     160,938      561,664      633,096
   Printing, postage and
    supplies                   60,449      41,317      217,729      196,451
   Expense on life
    insurance                  24,759      25,626       76,076      100,184
   Contribution expense        21,106      44,891       40,886      129,369
   Other                      238,057     193,987      987,099      793,310
                          ----------- -----------  -----------  -----------
      Total noninterest
       expense              1,747,406   1,697,292    6,900,486    6,614,005

Income before income
 taxes                      1,061,600     813,460    3,762,838    3,455,827

Income tax expense            188,781     185,784      852,849      584,135

Net income                $   872,819 $   627,676  $ 2,909,989  $ 2,871,692
                          =========== ===========  ===========  ===========




                                 Three Months Ended   Twelve Months Ended
                                6/30/2008  6/30/2007  6/30/2008  6/30/2007
                                ---------  ---------  ---------  ---------
                                Unaudited  Unaudited  Unaudited
Earnings per common share:
Primary                         $    0.78  $    0.52  $    2.51  $    2.36
Fully diluted                   $    0.77  $    0.52  $    2.49  $    2.33
Dividend paid per share         $    0.21  $    0.19  $    0.84  $    0.76
Average shares outstanding      1,100,459  1,207,704  1,159,847  1,215,521
Shares outstanding end of
 period                         1,100,260  1,201,478  1,100,260  1,201,478

Supplemental data:
Net interest margin **               3.22%      3.09%      3.10%      2.97%
Return on average assets ***         1.11%      0.89%      0.96%      1.01%
Return on average equity ***        14.23%      9.80%     11.48%     11.43%

                                6/30/2008  6/30/2007
                                ---------  ---------
Nonperforming assets *          3,262,262  2,492,634
Repossessed assets                846,785    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: Contact: Emily Boardman Treasurer 260-563-3185 x290