FFW Corporation Announces Operating Results for the Quarter Ended March 31, 2005 WABASH, Ind., April 28 /PRNewswire-FirstCall/ -- FFW Corporation, parent corporation of First Federal Savings Bank of Wabash, Indiana, announced operating results for the third fiscal quarter of 2005 and nine months ended March 31, 2005. Net income for the quarter ended March 31, 2005, was $647,000, a 0.2% increase from the $645,000 reported for the quarter ended March 31, 2004. Diluted net income per share for the third fiscal quarter of 2005 amounted to $0.50, up 2.0% from the $0.49 reported in the third fiscal quarter of 2004. Net income and diluted net income per share for the nine months ended March 31, 2004 were $40,000 and $0.03 compared to $1,881,000 and $1.42 at March 31, 2003. The nine month results for fiscal 2005 were impacted by an other-than- temporary non-cash impairment charge of approximately $1.8 million, or $1.38 per diluted share, recorded in the second fiscal quarter of 2005 and six months ended December 31, 2004 related to certain Fannie Mae ("FNMA") and Freddie Mac ("FHLMC") preferred stocks. Since capital is unaffected, the non- cash impairment charge had no effect on the Company's book value per share of $18.13 as of March 31, 2005. The fiscal 2005 third quarter and year to date earnings represent a return on average shareholders' equity of 10.99% and 0.23% compared to 10.97% and 10.73% for the periods ended March 31, 2004. Return on average total assets for the three and nine-month periods ended March 31, 2004 were 1.04% and 0.02% compared to 1.08% and 1.04% for the periods ended March 31, 2004. The allowance for loan losses as a percentage of net loans receivable was 1.61% at March 31, 2005 compared to 1.62% at December 31, 2004 and 1.89% at September 30, 2004 and June 30, 2004. Nonperforming assets at March 31, 2005 were $1.7 million compared to $2.0 at December 31, 2004, $2.1 million at September 30, 2004, $2.2 million at June 30, 2004 and $2.0 million at March 31, 2004. As of March 31, 2005, FFWC's equity-to-assets ratio was 9.01% compared to 9.43% at June 30, 2004. Shareholders' equity was $23.3 million compared to $22.6 million at June 30, 2004. Total assets at March 31, 2005 were $258.3 million compared to $239.9 million at 2004 fiscal year end. Loans receivable increased $24.3 million during the first nine months of fiscal 2005. Total deposits at March 31, 2005 increased by $15.7 million from June 30, 2004 while total FHLB borrowings increased by $1.6 million. First Federal Savings Bank is a wholly owned subsidiary of FFW Corporation providing retail and small business financial services through its main office in Wabash and four banking centers located in Columbia City, North Manchester, South Whitley, and Syracuse, Indiana. Investment services such as the purchase of stock, mutual funds and insurance products are offered through an affiliated company, FirstFed Financial Inc. The corporation's stock is traded under the symbol "FFWC.PK". Our website address is http://www.ffsbwabash.com/ . FFW Corporation April 28, 2005 Unaudited Selected balance sheet data: 3/31/2005 6/30/2004 (In Thousands) Total assets $258,343 $239,910 Loans receivable 163,048 138,753 Allowance for loan loss 2,577 2,570 Securities available for sale 75,397 79,071 Deposits 174,983 159,252 Borrowings 57,293 55,733 Stockholders' equity 23,278 22,624 Nonperforming assets * 1,703 2,247 Repossessed assets 707 1,222 Unaudited Unaudited Three Months Ended Nine Months Ended Selected Operating 3/31/2005 3/31/2004 3/31/2005 3/31/2004 Data: (In Thousands) (In Thousands) Total interest income $3,323 $3,115 $9,668 $9,378 Total interest expense 1,576 1,483 4,534 4,600 Net interest income 1,747 1,632 5,134 4,778 Provision for loan losses 120 180 360 600 Net interest income after provision for loan losses 1,627 1,452 4,774 4,178 Net gain on sales of loans 43 54 118 410 Net gain on sales of securities 28 55 28 59 Other than temp impairment AFS securities 0 0 (1,805) 0 Other non-interest income 506 448 1,470 1,259 Other non-interest expenses 1,390 1,302 4,175 3,821 Income before income taxes 814 707 410 2,085 Income tax expense 167 62 370 204 Net income $647 $645 $40 $1,881 Earnings per common & common equivalent shares Primary $0.50 $0.51 $0.03 $1.46 Fully diluted $0.50 $0.49 $0.03 $1.42 Dividend paid per share $0.17 $0.16 $0.51 $0.48 Average shares outstanding 1,283,540 1,300,403 1,285,160 1,300,193 Shares outstanding end of period 1,284,243 1,301,229 1,284,243 1,301,229 Supplemental data: Net interest margin ** 2.95% 2.93% 2.93% 2.83% Return on average assets *** 1.04% 1.08% 0.02% 1.04% Return on average equity *** 10.99% 10.97% 0.23% 10.73% * 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, Treasurer of FFW Corporation, +1-260-563-3185, ext. 228 Web site: http://www.ffsbwabash.com/

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