FFW Corporation Announces Net Income for the Quarter Ended September 30, 2006 and Resumption of Its Stock Repurchase Program

WABASH, IN -- (MARKET WIRE) -- October 25, 2006 -- FFW Corporation (OTCBB: FFWC) (10/24/2006 Close: $23.40), parent corporation of First Federal Savings Bank of Wabash, Indiana, announced operating results for the first fiscal quarter of 2007. Net income and diluted net income per share for the quarter ended September 30, 2006 were $931,000 and $0.75 compared to $582,000 and $0.45 at September 30, 2005.

Fiscal 2007 first quarter results were positively impacted primarily by increases of $183,000 in net interest income despite the difficult flat or inverted interest rate environment, $361,000 in gains on sale of investments and $34,000 in commission income. Results were negatively impacted primarily by $112,000 in higher general and administrative expenses, a $59,000 net income swing on sales of repossessed assets and a $36,000 increase in expense on mortgage servicing rights between the comparable periods.

The fiscal 2007 first quarter earnings represent a return on average shareholders' equity of 15.09% compared to 9.78% for the period ended September 30, 2005. Return on average total assets for the three-month period ended September 30, 2006 was 1.31% compared to 0.89% for the period ended September 30, 2005. The non-tax effected net interest margins were 2.92% for the three-month period ended September 30, 2006 compared to 2.90% for the period ended September 30, 2005.

The allowance for loan losses as a percentage of net loans receivable was 1.57% at September 30, 2006, 1.59% at June 30, 2006 and 1.60% at September 30, 2005. Nonperforming assets at September 30, 2006 were $3.3 million compared to $2.5 million at June 30, 2006.

As of September 30, 2006, FFWC's equity-to-assets ratio was 8.79% compared to 8.50% at June 30, 2006. Shareholders' equity was $24.8 million compared to $23.9 million at June 30, 2006. Total assets at September 30, 2006 were $282.1 million compared to $280.9 million at June 30, 2006. Net loans receivable increased $7.5 million and securities available for sale decreased $5.7 million during the first three months of fiscal 2007. Total deposits at September 30, 2006 increased $5.3 million from June 30, 2006 while total FHLB borrowings decreased by $5.9 million. FFWC's book value per share was $20.23 at September 30, 2006.

During the quarter ended September 30, 2006, FFW Corporation completed the stock repurchase program opened in April 2005. FFW Corporation repurchased 63,342 shares at an average price of $21.00. As of September 30, 2006, the Company has 1,225,381 shares outstanding. At its October 24, 2006 annual meeting, the Board of Directors voted to resume its stock repurchase program. The Company intends to repurchase up to 5% or 61,269 of its outstanding shares in the open market when favorable conditions exist. At current price levels, the Board views the repurchase program as a sound investment that will enhance shareholder value.

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
ASSETS :                                            9/30/2006    6/30/2006
                                                    Unaudited
Cash and due from financial institutions            4,350,045    5,328,257
Interest-earning deposits in other financial
 institutions – short term                          1,988,501    1,192,238
                                                  -----------  -----------
Cash and cash equivalents                           6,338,546    6,520,495
Securities available for sale                      63,231,646   68,920,497
Loans receivable, net of allowance for loan
 losses of $3,086,101 at September 30, 2006
 and $2,959,513 at June 30, 2006                  193,570,977  186,044,335
Loans held for sale                                   110,000       80,000
Federal Home Loan Bank stock, at cost               3,737,400    3,774,100
Accrued interest receivable                         1,817,038    1,745,460
Premises and equipment, net                         4,335,158    4,364,694
Mortgage servicing rights                             559,955      601,690
Cash surrender value of life insurance              5,411,078    5,355,756
Goodwill                                            1,213,898    1,213,898
Other assets                                        1,728,882    2,277,195
                                                  -----------  -----------
Total Assets                                      282,054,578  280,898,120
                                                  ===========  ===========

LIABILITIES AND SHAREHOLDERS' EQUITY:
Liabilities:
Noninterest-bearing deposits                       15,184,890   15,151,594
Interest-bearing deposits                         185,678,043  180,398,726
                                                  -----------  -----------
Total Deposits                                    200,862,933  195,550,320
Federal Home Loan Bank advances                    53,010,506   58,910,506
Accrued expenses and other liabilities              3,393,805    2,561,655
                                                  -----------  -----------
Total Liabilities                                 257,267,244  257,022,481

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:
 1,225,381 – Sept. 30, 2006; issued:
 1,836,328, outstanding: 1,232,081 - June
 30, 2006;                                             18,363       18,363
Additional paid-in capital                          9,528,010    9,575,923
Retained earnings                                  23,087,560   22,339,708
Accumulated other comprehensive income (loss)         140,921     (222,006)
Unearned management retention plan shares             (75,293)     (85,971)
Treasury stock at cost, shares: 610,947 -
 September 30, 2006 and
 604,247 - June 30, 2006                           (7,912,227)  (7,750,378)
                                                  -----------  -----------
                Total Shareholders' Equity         24,787,334   23,875,639
                                                  -----------  -----------

Total Liabilities and Shareholders' Equity        282,054,578  280,898,120
                                                  ===========  ===========


Consolidated Statements of Income
                                                     3 months ended June
                                                      2006         2005
                                                  -----------  -----------
Interest and dividend income :
Loans, including fees                             $ 3,457,978  $ 2,714,505
Taxable securities                                    693,040      559,375
Nontaxable securities                                 189,375      195,019
Other interest-earning assets                          27,572       39,241
                                                  -----------  -----------
Total interest income                               4,367,965    3,508,140

Interest expense :
Deposits                                            1,692,364    1,088,582
Other                                                 729,082      656,231
                                                  -----------  -----------
Total interest expenses                             2,421,446    1,744,813
                                                  -----------  -----------

Net interest income                                 1,946,519    1,763,327

Provision for loan losses                             120,000      120,000
                                                  -----------  -----------
Net interest income after provision for loan
 losses                                             1,826,519    1,643,327
Non-interest income (loss) :
Net gain on sale of securities                        360,051       (1,301)
Net gain on sale of loans                              20,592       40,549
Commission income                                     120,761       86,601
Service charges and fees                              271,630      328,506
Earnings on life insurance                             62,960       60,172
Other                                                    (326)      59,391
                                                  -----------  -----------
Total non-interest income                             835,668      573,918

Non-interest expense :
Compensation and benefits                             800,926      731,658
Occupancy and equipment                               206,318      190,644
Deposit insurance premium                               5,739        5,811
Regulatory assessment                                  19,958       19,007
Correspondent bank charges                             29,158       42,302
Data processing expense                               151,920      135,957
Printing, postage and supplies                         51,743       41,675
Other                                                 352,345      338,726
                                                  -----------  -----------
Total non-interest expense                          1,618,107    1,505,780
                                                  -----------  -----------

Income before income taxes                          1,044,080      711,465

Income tax expense                                    112,649      129,026
                                                  -----------  -----------

Net income                                        $   931,431  $   582,439
                                                  ===========  ===========


                                                           Unaudited
                                                       Three Months Ended
                                                      9/30/2006  6/30/2005
                                                      ---------  ---------
Earnings per common share
Primary                                               $    0.76  $    0.46
Fully diluted                                         $    0.75  $    0.45
Dividend paid per share                               $    0.19  $    0.18
Average shares outstanding                            1,225,122  1,260,029
Shares outstanding end of period                      1,225,381  1,268,567

Supplemental data:
Net interest margin **                                     2.92%      2.90%
Return on average assets ***                               1.31%      0.89%
Return on average equity ***                              15.09%      9.78%


                                                      9/30/2006  6/30/2006
                                                      ---------  ---------
Nonperforming assets *                                3,253,288  2,500,154
Repossessed assets                                      494,497    584,947


*   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/Treasurer 260-563-3185 x228