WABASH, Ind., Oct. 26 /PRNewswire-FirstCall/ -- FFW Corporation (OTC:FFWC.OB) (BULLETIN BOARD: FFWC.OB) , parent corporation of First Federal Savings Bank of Wabash, Indiana, announced operating results for the first fiscal quarter of 2006 ended September 30, 2005. Net income before tax was up $10,000, or 1.4%, to $711,000 at September 30, 2005 from $701,000 at September 30, 2004. However, due to a higher effective tax rate in fiscal 2006, FFW Corporation recorded net income of $582,000, down 4.4%, from the $609,000 reported for the quarter ended September 30, 2004. Diluted net income per share for the first fiscal quarter of 2006 was $0.45, down 4.3%, compared to $0.47 at September 30, 2004. Comparison of the quarters ended September 30, 2005 and 2004 shows increases in net interest income and non-interest income offset increased non- interest expense for the quarter ended September 30, 2005. Loan loss provision expense was flat and net income was lower due to increased income tax expense. The fiscal 2006 first quarter earnings represent a return on average shareholders' equity of 9.78% compared to 10.47% for the period ended September 30, 2004. Return on average total assets for the three-month period ended September 30, 2005 was 0.89% compared to 0.99% for the period ended September 30, 2004. The allowance for loan losses as a percentage of loans receivable was 1.60% at September 30, 2005 compared to 1.60% at June 30, 2005. Nonperforming assets at September 30, 2005 were $2.2 million compared to $1.9 million at June 30, 2005. As of September 30, 2005, FFWC's equity-to-assets ratio was 8.93% compared to 9.08% at June 30, 2005. Shareholders' equity was $23.6 million compared to $23.3 million at June 30, 2005. Total assets at September 30, 2005 were $264.3 million compared to $256.9 million at 2005 fiscal year end. Total deposits at September 30, 2005 were up $6.8 million over June 30, 2005 while total FHLB borrowings decreased by $2.0 million. 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 http://www.ffsbwabash.com/ . FFW Corporation October 26, 2005 Unaudited Selected balance sheet data: 9/30/2005 6/30/2005 (In Thousands) Total assets $264,347 $256,940 Loans receivable 171,550 166,380 Allowance for loan loss 2,738 2,670 Securities available for sale 70,209 67,154 Deposits 184,702 177,913 Borrowings 51,625 53,625 Stockholders' equity 23,612 23,328 Nonperforming assets * 2,189 1,917 Repossessed assets 999 893 Unaudited Twelve Months Ended Selected Operating Data: 9/30/2005 9/30/2004 (In Thousands) Total interest income $3,508 $3,117 Total interest expense 1,745 1,443 Net interest income 1,763 1,674 Provision for loan losses 120 120 Net interest income after provision for loan losses 1,643 1,554 Net gain (loss) on sales of loans 41 33 Net gain (loss) on sales of securities (1) 0 Other non-interest income 534 505 Other non-interest expenses 1,506 1,391 Income before income taxes 711 701 Income tax expense 129 92 Net income $582 $609 Earnings per common & common equivalent shares Primary $0.46 $0.47 Fully diluted $0.45 $0.47 Dividend paid per share $0.18 $0.17 Average shares outstanding 1,260,029 1,279,338 Shares outstanding end of period 1,260,817 1,279,042 Supplemental data: Net interest margin ** 2.91% 2.92% Return on average assets *** 0.89% 0.99% Return on average equity *** 9.78% 10.47% * 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 DATASOURCE: FFW Corporation CONTACT: Tim Sheppard, CFO of FFW Corporation, +1-260-563-3185, ext. 228

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