FFW Corporation Announces 35% Increase in Net Income for the Year Ended June 30, 2011

WABASH, IN--(Marketwire - Aug 12, 2011) - FFW Corporation (the "Corporation") (OTCBB: FFWC) (8/11/2011 Close: $18.00), parent corporation of Crossroads Bank, announced earnings for the quarter and fiscal year ended June 30, 2011.

For the twelve months ended June 30, 2011, the Corporation reported net income of $2,674,000, which is an increase of 35% over prior year net income of $1,980,000. Earnings per common share was $1.96 for the year ended June 30, 2011, which is 45% higher than the prior twelve month period earnings per common share of $1.35. The net interest margin for the twelve months ended June 30, 2011 was $9,868,000 compared to $9,909,000 for the twelve months ended June 30, 2010. The provision for loan losses was $1,445,000 for the twelve months ended June 30, 2011 and $1,830,000 for the twelve months ended June 30, 2010. Total noninterest income was $3,201,000 for the twelve months ended June 30, 2011 and $2,744,000 for the twelve months ended June 30, 2010. Noninterest expense was $7,990,000 for the twelve months ended June 30, 2011 and $8,371,000 for the twelve months ended June 30, 2010.

Roger K. Cromer, President and Chief Executive Officer, commented, "We are pleased with our performance for the year. We had solid loan demand during the last six months of the year. We will continue to focus our efforts on improving asset quality, controlling expenses and seeking new sources of revenue. We continue to have a solid deposit base, a very liquid balance sheet and adequate capital, so when the economy strengthens, we will be well positioned to participate in the growth."

For the three months ended June 30, 2011, the Corporation reported net income of $737,000 or $0.55 per common share. This is compared to net income of $411,000 or $0.25 per common share for the three months ended June 30, 2010. The net interest margin for the three months ended June 30, 2011 was $2,592,000 compared to $2,435,000 for the three months ended June 30, 2010. The provision for loan losses increased from $210,000 for the period ended June 30, 2010 to $300,000 for the period ended June 30, 2011. Total noninterest income was $693,000 for the three months ended June 30, 2011 and $474,000 for the three months ended June 30, 2010. Noninterest expense was $1,992,000 for the three months ended June 30, 2011 and $2,214,000 for the three months ended June 30, 2010.

The three and twelve months ended June 30, 2011 represented a return on average common equity of 11.22% and 10.03%, respectively, compared to 5.51% and 7.14% for the three and twelve month periods ended June 30, 2010. The three and twelve months ended June 30, 2011 represented a return on average assets of 0.90% and 0.80%, respectively, compared to 0.48% and 0.59% for the three and twelve month periods ended June 30, 2010.

The allowance for loan losses as a percentage of gross loans receivable was 1.39% at June 30, 2011 and 1.57% at June 30, 2010. Nonperforming assets were $13,141,000 at June 30, 2011 and $8,695,000 at June 30, 2010.

As of June 30, 2011, FFWC's equity-to-assets ratio was 9.23% compared to 8.64% at June 30, 2010. Total assets at June 30, 2011 were $323,018,000 compared to $333,564,000 at June 30, 2010. Shareholders' equity was $29,830,000 at June 30, 2011 compared to $28,804,000 at June 30, 2010. 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				June 30
				2011				2010
				Unaudited
Assets
Cash and due from financial institutions				$	3,711,671			$	3,229,138
Interest-earning deposits in other financial institutions					2,840,994				7,386,372
	Cash and cash equivalents				6,552,665				10,615,510
Securities available for sale					71,219,096				76,716,794
Loans receivable, net of allowance for loan losses of $3,147,896 at June 30, 2011 and $3,582,476 at June 30, 2010					222,348,968				224,135,086
Loans held for sale					241,400				40,000
Federal Home Loan Bank stock, at cost					2,717,300				3,627,100
Accrued interest receivable					1,635,370				1,645,286
Premises and equipment, net					3,695,172				3,889,487
Mortgage servicing rights					444,950				375,052
Cash surrender value of life insurance					6,655,864				6,374,995
Goodwill					1,213,898				1,213,898
Deferred tax asset					1,653,133				1,893,647
Other assets					4,640,682				3,036,680
	Total assets			$	323,018,498			$	333,563,535
Liabilities and shareholders' equity
Deposits
	Noninterest-bearing deposits			$	17,954,304			$	16,278,993
	Interest-bearing deposits				257,509,026				262,550,500
		Total deposits			275,463,330				278,829,493
Borrowings					16,062,945				24,699,557
Accrued expenses and other liabilities					1,662,503				1,230,602
	Total liabilities				293,188,778				304,759,652
Shareholders' equity
Preferred stock, $.01 par; $1,000 liquidation value per share; 500,000 shares authorized;
	Series A, 5% Fixed Rate Cumulative Perpetual Preferred Stock - 7,289 shares outstanding June 30, 2011 and 2010, $7,334,000 liquidation preference				7,085,539				7,004,155
	Series B, 9% Fixed Rate Cumulative Perpetual Preferred Stock - 364 shares outstanding June 30, 2011 and 2010, $368,000 liquidation preference				385,461				394,045
Common stock, $.01 par; 2,000,000 shares authorized;
	issued: 1,836,328
	outstanding: 1,121,884 shares - June 30, 2011 and 1,117,260 shares - June 30, 2010				18,363				18,363
Additional paid-in capital					9,435,162				9,440,356
Retained earnings					24,095,722				22,880,556
Accumulated other comprehensive income					(223,833	)			104,080
Treasury stock, at cost: 714,444 shares - June 30, 2011 and 719,068 shares - June 30, 2010					(10,966,694	)			(11,037,672	)
	Total shareholders' equity				29,829,720				28,803,883
	Total liabilities and shareholders' equity			$	323,018,498			$	333,563,535

FFW Corporation
Selected Financial Information
Consolidated Statement of Income
				Three Months Ended June 30							Twelve Months Ended June 30
				2011			2010				2011			2010
				Unaudited			Unaudited				Unaudited
Interest and dividend income:
	Loans, including fees			$	3,056,603		$	3,250,464			$	12,217,074		$	13,725,393
	Taxable securities				610,803			638,978				2,459,676			2,568,076
	Tax exempt securities				143,485			164,819				601,087			682,099
	Other				3,685			5,684				30,688			24,976
		Total interest and dividend income			3,814,576			4,059,945				15,308,525			17,000,544
Interest expense:
	Deposits				1,088,143			1,344,447				4,657,152			5,548,022
	Borrowings				134,197			280,145				783,724			1,543,180
		Total interest expense			1,222,340			1,624,592				5,440,876			7,091,202
Net interest income					2,592,236			2,435,353				9,867,649			9,909,342
Provision for loan losses					300,000			210,000				1,445,000			1,830,000
Net interest income after provision for loan losses					2,292,236			2,225,353				8,422,649			8,079,342
Noninterest income:
	Net gains on sales of securities				142,850			(39,543	)			400,589			429,360
	Net gains on sales of loans				26,464			79,208				480,642			284,566
	Net gains (losses) on fixed assets				-			6,500				5,001			6,500
	Other than temporary impairment on securities				-			(100,000	)			-			(250,000	)
	Commission income				155,821			163,539				637,247			584,273
	Service charges and fees				276,003			229,973				1,318,363			1,135,202
	Earnings on life insurance				70,243			71,082				280,870			280,674
	Other				21,326			62,926				78,761			273,839
		Total noninterest income			692,707			473,685				3,201,473			2,744,414
Noninterest expense:
	Salaries and benefits				980,910			949,830				3,961,729			3,992,732
	Occupancy and equipment				238,359			263,675				981,005			966,723
	Professional				106,696			102,720				398,358			393,970
	Marketing				35,511			36,578				151,468			135,711
	Deposit insurance premium				134,201			118,244				513,024			469,235
	Regulatory assessment				25,899			25,545				102,680			99,687
	Correspondent bank charges				26,136			19,661				86,942			77,645
	Data processing				102,368			385,215				426,295			828,431
	Printing, postage and supplies				63,032			56,138				231,767			245,245
	Expense on life insurance				14,902			16,694				41,018			66,775
	Contribution expense				17,546			12,882				72,563			51,981
	Other				246,869			226,604				1,023,592			1,042,603
		Total noninterest expense			1,992,429			2,213,786				7,990,441			8,370,738
Income before income taxes					992,514			485,252				3,633,681			2,453,018
Income tax expense					255,730			73,902				959,845			473,115
Net income				$	736,784		$	411,350			$	2,673,836		$	1,979,903
Preferred stock dividends and discount accretion, net					117,504			117,503				470,016			470,010
Net income attributable to common shareholders				$	619,280		$	293,847			$	2,203,820		$	1,509,893

FFW Corporation
Selected Financial Information
			Three Months Ended June 30								Twelve Months Ended June 30
			2011				2010				2011				2010
			Unaudited				Unaudited				Unaudited
Per common share data:
Earnings			$	0.55			$	0.25			$	1.96			$	1.35
Diluted earnings			$	0.55			$	0.25			$	1.96			$	1.35
Dividends paid			$	0.22			$	0.22			$	0.88			$	0.88
Average shares issued and outstanding				1,121,884				1,117,260				1,122,694				1,114,397
Shares outstanding end of period				1,121,884				1,117,260				1,121,884				1,117,260
Supplemental data:
Net interest margin **				3.22	%			3.04	%			3.15	%			3.10	%
Return on average assets ***				0.90	%			0.48	%			0.80	%			0.59	%
Return on average common equity ***				11.22	%			5.51	%			10.03	%			7.14	%
			June 30				June 30
			2011				2010
Nonperforming assets *			$	13,140,830			$	8,694,798
Repossessed assets			$	2,502,944			$	1,230,635
*	Includes non-accruing loans, accruing loans delinquent more than 90 days and repossessed assets
**	Yields reflected have not been computed on a tax equivalent basis
***	Annualized