FFW Corporation Announces Fourth Quarter and June 30, 2009 Year End Results

WABASH, IN--(Marketwire - August 14, 2009) - FFW Corporation (the "Corporation") (OTCBB: FFWC) (8/13/2009 Close: $9.80), parent corporation of Crossroads Bank,
announced operating results for the three and twelve months ended June 30,
2009.

For the three months ended June 30, 2009, the Corporation reported net
income of $109,000. This is compared to net income of $565,000 for the
quarter ended June 30, 2008. The earnings decrease for the fourth quarter
of fiscal year 2009 reflected a decrease of approximately 80.7% over the
same period in fiscal year 2008. The decrease is primarily due to an
increase to the provision for loan losses, recognition of
other-than-temporary impairments on certain securities and expense for the
Federal Deposit Insurance Corporation (FDIC) special assessment insurance
premium. During the quarter, the FDIC issued a final rule imposing a 5
basis point special assessment on depository institution's total assets
(less Tier 1 capital) as reported at June 30, 2009. The special assessment
is payable September 30, 2009.

For the twelve months ended June 30, 2009, the Corporation reported net
loss of ($2,387,000). This is compared to net income of $2,602,000 for the
twelve months ended June 30, 2008. The twelve month period ended June 30,
2009 includes security losses of approximately $7,743,000, an increase in
the loan loss provision of $1,078,000 and an increase in FDIC insurance
assessments of approximately $517,000. The security losses include the
non-cash impairment charge of $6,692,000 related to certain Federal
National Mortgage Association ("Fannie Mae") preferred stocks. These
securities were sold prior to December 31, 2008.

Roger K. Cromer, President and Chief Executive Officer, stated, "The past
fiscal year has proven to be very challenging financially to our company.
Based on the current economic environment, we wrote down securities and
continued to build our allowance for loan loss reserve. Our capital levels
are strong and we had growth in loans and deposits during the year. While
we are disappointed in our results, we believe the actions taken will
preserve and protect our franchise value over the long term."

The three and twelve month periods ended June 30, 2009 represent a return
on average common equity of (0.18%) and (12.57%), respectively. Return on
average total assets for the three and twelve month periods ended June 30,
2009 was 0.16% and (0.74%).

The allowance for loan losses as a percentage of gross loans receivable was
1.53% at June 30, 2009 and 1.20% at June 30, 2008. Nonperforming assets
increased to $4.8 million at June 30, 2009 from $3.3 million at June 30,
2008.

As of June 30, 2009, FFWC's equity-to-assets ratio was 8.26% compared to
7.46% at June 30, 2008. Total assets at June 30, 2009 were $332.6 million
compared to $315.9 million at June 30, 2008. The combined $10.4 million
increase in available for sale securities and net loans receivable was
funded through a $17.4 million increase in total deposits. The deposit
growth was also used to pay down outstanding Federal Home Loan Bank
advances by $7.2 million. The $2.6 million increase in other assets was
largely attributable to the deferred tax asset that resulted from the sale
of Fannie Mae preferred stock. The $2.6 million increase in accrued
expenses and other liabilities is attributable to a trade date payable for
a security that was purchased prior to year-end, but did not settle until
after year-end. Shareholders' equity was $27.5 million at June 30, 2009
compared to $23.6 million at June 30, 2008. 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

June 30
----------------------------
2009 2008
------------- -------------
Unaudited

Assets
Cash and due from financial institutions $ 3,830,526 $ 6,095,999
Interest-earning deposits in other financial
institutions - short term 7,284,371 2,347,131
------------- -------------
Cash and cash equivalents 11,114,897 8,443,130
------------- -------------

Securities available for sale 66,273,786 60,367,678
Loans receivable, net of allowance for loan
losses of $3,605,204 at June 30, 2009 and
$2,768,622 at June 30, 2008 232,378,508 227,839,891
Loans held for sale 1,049,519 77,000
Federal Home Loan Bank stock, at cost 3,627,100 3,627,100
Accrued interest receivable 1,425,374 1,560,163
Premises and equipment, net 4,096,623 4,040,369
Mortgage servicing rights 392,839 488,452
Cash surrender value of life insurance 6,094,321 5,815,227
Goodwill 1,213,898 1,213,898
Other assets 4,964,787 2,412,579
------------- -------------
Total assets $ 332,631,652 $ 315,885,487
============= =============

Liabilities
Noninterest-bearing deposits $ 12,924,010 $ 13,737,624
Interest-bearing deposits 248,643,498 230,446,720
------------- -------------
Total deposits 261,567,508 244,184,344
------------- -------------

Federal Home Loan Bank advances 38,098,030 45,283,087
Accrued expenses and other liabilities 5,477,874 2,856,193
------------- -------------
Total liabilities 305,143,412 292,323,624
------------- -------------

Shareholders' equity
Preferred stock, $.01 par; 500,000 shares
authorized;
Series A, 5% Fixed Rate Cumulative
Perpetual Preferred Stock - 7,289 shares
outstanding March 31, 2009 6,922,771 ---
Series B, 9% Fixed Rate Cumulative
Perpetual Preferred Stock - 364 shares
outstanding March 31, 2009 402,629 ---
Common stock, $.01 par; 2,000,000 shares
authorized; 18,363 18,363
issued: 1,836,328, outstanding: 1,112,260 -
June 30, 2009
issued: 1,836,328, outstanding: 1,100,260 -
June 30, 2008
Additional paid-in capital 9,448,627 9,530,608
Retained earnings 22,351,652 25,965,339
Accumulated other comprehensive income (loss) (541,380) (653,825)
Treasury stock at cost, shares: 724,068 -
June 30, 2009 and 736,068 - June 30, 2008 (11,114,422) (11,298,622)
------------- -------------
Total shareholders' equity 27,488,240 23,561,863
------------- -------------

------------- -------------
Total liabilities and shareholders' equity $ 332,631,652 $ 315,885,487
============= =============

Consolidated Statement of Income

Three Months Ended June 30 Twelve Months Ended June 30
-------------------------- --------------------------
2009 2008 2009 2008
------------ ------------ ------------ ------------
Unaudited Unaudited Unaudited
Interest and
dividend income:
Loans, including
fees $ 3,610,537 $ 3,762,848 $ 15,126,609 $ 15,549,609
Taxable securities 591,655 733,397 2,453,482 2,752,774
Nontaxable
securities 179,786 156,473 731,171 608,708
Other 5,300 24,988 38,750 109,255
------------ ------------ ------------ ------------
Total interest
and dividend
income 4,387,278 4,677,706 18,350,012 19,020,346
------------ ------------ ------------ ------------

Interest expense:
Deposits 1,475,880 1,783,400 6,478,769 7,619,880
Borrowings 459,203 526,918 1,902,819 2,576,098
------------ ------------ ------------ ------------
Total interest
expense 1,935,083 2,310,318 8,381,588 10,195,978
------------ ------------ ------------ ------------

Net interest income 2,452,195 2,367,388 9,968,424 8,824,368

Provision for loan
losses 451,000 242,000 1,680,000 602,000

Net interest income
after provision
for loan losses 2,001,195 2,125,388 8,288,424 8,222,368

Noninterest income:
Net gains on sales
of securities - 11,719 (494,668) 70,944
Net gains on sales
of loans 201,401 43,056 539,435 197,464
Net gains (losses)
on fixed assets (3,332) - (3,232) -
Other than temporary
impairment on
securities
Total impairment
losses (556,140) (308,000) (7,662,623) (308,000)
Loss recognized
in other
comprehensive
income - - 414,483 -
------------ ------------ ------------ ------------
Net impairment
loss recognized
in earnings (556,140) (308,000) (7,248,140) (308,000)
Commission income 132,651 135,164 551,205 534,276
Service charges
and fees 376,596 396,153 1,021,482 1,164,627
Earnings on life
insurance 68,762 68,435 292,313 268,707
Other 25,034 29,091 139,402 204,938
------------ ------------ ------------ ------------
Total
noninterest
income (loss) 244,972 375,618 (5,202,203) 2,132,956
------------ ------------ ------------ ------------

Noninterest
expense:
Salaries and
benefits 869,491 908,478 3,623,268 3,496,775
Occupancy and
equipment 225,013 220,832 867,610 838,517
Professional 97,822 42,045 286,979 213,365
Marketing 44,153 46,158 158,035 268,311
Deposit insurance
premium 387,880 5,970 541,755 24,338
Regulatory
assessment 23,946 22,187 94,053 87,590
Correspondent bank
charges 18,793 22,339 76,938 88,136
Data processing 168,846 135,026 557,655 561,664
Printing, postage
and supplies 53,421 60,449 235,614 217,729
Expense on life
insurance 14,445 24,759 74,635 76,076
Contribution
expense 13,760 21,106 53,123 40,886
Other 183,699 238,057 848,278 987,099
------------ ------------ ------------ ------------
Total
noninterest
expense 2,101,269 1,747,406 7,417,943 6,900,486
------------ ------------ ------------ ------------

Income (loss)
before income
taxes 144,898 753,600 (4,331,722) 3,454,838

Income tax expense
(benefit) 36,355 188,781 (1,945,065) 852,849

------------ ------------ ------------ ------------
Net income (loss) $ 108,543 $ 564,819 $ (2,386,657) $ 2,601,989
============ ============ ============ ============
Preferred stock
dividends 117,503 - 248,245 -
------------ ------------ ------------ ------------
Net income (loss)
applicable to
common stock $ (8,960) $ 564,819 $ (2,634,902) $ 2,601,989
============ ============ ============ ============

Three Months Ended Twelve Months Ended
June 30 June 30
------------------------ ------------------------
2009 2008 2009 2008
----------- ----------- ----------- -----------
Unaudited Unaudited Unaudited
Per common share data:
Earnings $ (0.00) $ 0.51 $ (2.38) $ 2.24
Diluted earnings $ (0.00) $ 0.51 $ (2.38) $ 2.23
Dividends paid $ 0.22 $ 0.21 $ 0.88 $ 0.84
Average shares issued
and outstanding 1,112,260 1,100,459 1,111,433 1,159,847
Shares outstanding end
of period 1,112,260 1,100,260 1,112,260 1,100,260

Supplemental data:
Net interest margin ** 3.16% 3.22% 3.28% 3.10%
Return on average
assets *** 0.16% 0.71% -0.74% 0.86%
Return on average
common equity *** -0.18% 9.32% -12.57% 10.26%

June 30
------------------------
2009 2008
----------- -----------
Nonperforming assets * $ 4,829,152 $ 3,262,262
Repossessed assets $ 1,334,259 $ 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