FFW Corporation Announces Operating Results for the Quarter Ended September 30, 2008

WABASH, IN--(Marketwire - October 29, 2008) - FFW Corporation (OTCBB: FFWC) (10/28/2008 Close: $12.00), parent corporation of Crossroads Bank, announced operating results for the first fiscal quarter of 2009 which includes a non-cash impairment charge of $6.7 million related to certain Federal National Mortgage Association (Fannie Mae) preferred stocks. As previously announced, management recorded a non-cash impairment charge of $308,000 related to these securities at June 30, 2008. Further deterioration in the market value of Fannie Mae preferred stock and various other factors have led management to determine that the remaining investment is other than temporarily impaired.

As a result of the non-cash impairment charge, the net loss and diluted net loss per share for the quarter ended September 30, 2008 were $3.16 million and ($2.88) instead of net income of $789,000 and diluted net income per share of $0.72 without the charge. This is compared to net income of $634,000 and diluted net income per share of $0.53 for the quarter ended September 30, 2007.

Net interest income increased $630,000 and 30.6% from the prior year's same quarter. The increase is partially attributable to recovered interest on a nonperforming commercial loan. Provision for loan losses increased $309,000 and 257.5% from the quarter ended September 30, 2007 as management prudently reserved for the current economic condition. Primarily due to the non-cash impairment charge, noninterest income decreased $6.7 million from the prior year's same quarter. Without the charge, noninterest income would have decreased only $24,000. Noninterest expense increased $122,000 and 7.4% from the prior year's same quarter. The increase is due to increases in salaries and benefits, deposit insurance premiums and REO expense. Income tax expense includes a $2.7 million benefit for the ordinary loss treatment of the non-cash impairment charge. Without this benefit, income tax expense would have increased $20,000 and 8.8% from the prior fiscal year to date. Excluding the tax effect of the non-cash charge, the effective tax rate decreased from 26.2% for the quarter ended September 30, 2007 to 23.7% for the quarter ended September 30, 2008.

Roger K. Cromer, President and Chief Executive Officer, stated, "With the financial crisis that hit the markets during the quarter, I am pleased with the performance of our company with one exception -- our ownership of Fannie Mae preferred stock. Our country's financial system has caused a difficult environment, however, we were able to focus and achieve growth in both deposits and loans."

The fiscal 2009 first quarter represents a return on average shareholders' equity of (56.5%) with the charge and 12.0% without the charge. Return on average total assets for the three-month period ended September 30, 2008 was (3.9%) with the charge and 0.97% without the charge.

The allowance for loan losses as a percentage of gross loans receivable was 1.36% at September 30, 2008 and 1.20% at June 30, 2008. Nonperforming assets decreased to $2.3 million at September 30, 2008 from $3.3 million at June 30, 2008.

As of September 30, 2008, FFWC's equity-to-assets ratio was 6.34% compared to 7.46% at June 30, 2008. Total assets at September 30, 2008 were $319.5 million compared to $315.9 million at June 30, 2008. Shareholders' equity was $20.3 million at September 30, 2008 compared to $23.6 million at June 30, 2008. Shareholders' equity at September 30, 2008 was decreased by the $3.9 million non-cash charge, net of the tax impact. Despite the non-cash charge in the first fiscal quarter of 2009, Crossroads Bank remains "well capitalized" with respect to the tier one core capital ratio according to applicable regulatory capital requirements. On October 27, 2008, Crossroads Bank received preliminary approval for the sale of approximately $7.3 million in preferred stock and related warrants to the U.S. Department of the Treasury under the Capital Purchase Program. The approval is subject to certain conditions and the execution of a definitive agreement. CEO Cromer noted, "This will enhance our capital position, enable us to take advantage of possible opportunities and expand our customer base through organic growth."

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


                                                9/30/2008      6/30/2008
                                              -------------  -------------
                                                Unaudited
                                              -------------
Assets

Cash and due from financial institutions      $   8,043,337  $   6,095,999
Interest-earning deposits in other financial
 institutions - short term                        2,963,608      2,347,131
                                              -------------  -------------
Cash and cash equivalents                        11,006,945      8,443,130

Securities available for sale                    54,841,444     60,367,678
Loans receivable, net of allowance for loan
 losses of $3,181,539 at September 30, 2008
 and $2,768,622 at June 30, 2008                231,262,332    227,839,891
Loans held for sale                                 209,720         77,000
Federal Home Loan Bank stock, at cost             3,627,100      3,627,100
Accrued interest receivable                       1,705,387      1,560,163
Premises and equipment, net                       4,112,343      4,040,369
Mortgage servicing rights                           455,889        488,452
Cash surrender value of life insurance            5,876,389      5,815,227
Goodwill                                          1,213,898      1,213,898
Other assets                                      5,160,512      2,412,579
                                              -------------  -------------
Total Assets                                  $ 319,471,959  $ 315,885,487
                                              =============  =============

Liabilities and Shareholders' Equity

Liabilities:
Noninterest-bearing deposits                  $  12,287,214  $  13,737,624
Interest-bearing deposits                       239,295,254    230,446,720
                                              -------------  -------------
Total Deposits                                  251,582,468    244,184,344

Federal Home Loan Bank advances                  44,033,087     45,283,087
Accrued expenses and other liabilities            3,605,457      2,856,193
                                              -------------  -------------
Total Liabilities                               299,221,012    292,323,624

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:
 1,112,260 - September 30, 2008 issued:
 1,836,328, outstanding: 1,100,260 - June 30,
 2008                                                18,363         18,363
Additional paid-in capital                        9,392,722      9,530,608
Retained earnings                                22,565,379     25,965,339
Accumulated other comprehensive income (loss)      (605,530)      (653,825)
Treasury stock at cost, shares: 724,068 -
 September 30, 2008 and 736,068 - June 30,
 2008                                           (11,119,987)   (11,298,622)
                                              -------------  -------------
Total Shareholders' Equity                       20,250,947     23,561,863
                                              -------------  -------------

Total Liabilities and Shareholders' Equity    $ 319,471,959  $ 315,885,487
                                              =============  =============







Consolidated Statements of Income

                                                    Three Months Ended
                                                  9/30/2008     9/30/2007
                                                ------------  -------------
                                                  Unaudited     Unaudited
Interest and dividend income:
   Loans, including fees                        $  4,125,833  $   3,921,416
   Taxable securities                                708,103        614,061
   Nontaxable securities                             176,715        141,808
   Other                                              22,546         30,393
                                                ------------  -------------
      Total interest and dividend income           5,033,197      4,707,678

Interest expense:
   Deposits                                        1,836,626      1,940,306
   Borrowings                                        506,713        707,696
                                                ------------  -------------
      Total interest expense                       2,343,339      2,648,002

Net interest income                                2,689,858      2,059,676

Provision for loan losses                            429,000        120,000

Net interest income after provision for loan
 losses                                            2,260,858      1,939,676

Noninterest income:
   Net gains on sales of securities                        -              -
   Net gains on sales of loans                        19,808         22,620
   Net gains (losses) on fixed assets                      -              -
   Other than temporary impairment on
    securities                                    (6,692,000)             -
   Commission income                                 146,322        126,594
   Service charges and fees                          306,128        305,681
   Earnings on life insurance                         69,773         66,348
   Other                                              (1,106)        43,648
                                                ------------  -------------
      Total noninterest income (loss)             (6,151,075)       564,891

Noninterest expense:
   Salaries and benefits                             916,443        865,993
   Occupancy and equipment                           203,978        202,912
   Professional                                       53,997         52,244
   Marketing                                          50,430         35,358
   Deposit insurance premium                          39,079          6,125
   Regulatory assessment                              23,081         21,608
   Correspondent bank charges                         21,512         24,216
   Data processing                                   130,320        159,865
   Printing, postage and supplies                     57,644         44,004
   Expense on life insurance                          24,874         25,729
   Contribution expense                               12,541          5,174
   Other                                             233,711        201,907
                                                ------------  -------------
      Total noninterest expense                    1,767,610      1,645,135

Income (loss) before income taxes                 (5,657,827)       859,432

Income tax expense (benefit)                      (2,502,564)       225,042

Net income (loss)                               $ (3,155,263) $     634,390
                                                ------------  -------------







                                                     Three Months Ended
                                                   9/30/2008    9/30/2007
                                                  -----------  -----------
                                                   Unaudited    Unaudited
Earnings per common share:
Primary                                           $     (2.88) $      0.53
Fully diluted                                     $     (2.88) $      0.53
Dividend paid per share                           $      0.22  $      0.21
Average shares outstanding                          1,108,977    1,194,876
Shares outstanding end of period                    1,112,260    1,190,518

Supplemental data:
Net interest margin **                                   3.53%        2.99%
Return on average assets ***                            -3.94%        0.87%
Return on average equity ***                           -56.49%       10.00%

                                                   9/30/2008    6/30/2008
                                                  -----------  -----------
Nonperforming assets *                            $ 2,342,983  $ 3,262,262
Repossessed assets                                $   908,986  $   846,785


*   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