SECURITIES AND EXCHANGE COMMISSION
                              WASHINGTON, DC 20549

                                   FORM 10-QSB

[ X ]  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES
       EXCHANGE ACT OF 1934

                  For the quarterly period ended September 30, 1997
                                       OR

[   ]  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES
       EXCHANGE ACT OF 1934

               For the transition period from ________ to ________

                         Commission File Number 0-21170

                                 FFW CORPORATION
        (Exact name of small business issuer as specified in its charter)

           Delaware                                    35-1875502
(State or other jurisdiction of                     (I.R.S. Employer
incorporation or organization)                  Identification or Number)

                    1205 North Cass Street, Wabash, IN 46992
                    (Address of principal executive offices)

                                 (219) 563-3185
                           (Issuer's telephone number)

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed  by  Section  13 or 15 (d) of the  Securities  Exchange  Act of 1934
during the preceding 12 months (or for such shorter  period that the  registrant
was  required  to file such  reports),  and (2) has been  subject to such filing
requirements for the past 90 days.
                                 Yes [   ]    No   [ X ]

           Transitional Small Business Disclosure Format (check one):

                                 Yes [   ]    No   [ X ]

State the number of Shares outstanding of each of the issuer's classes of common
equity, as of the latest date:

As of November 12, 1997,  there were 717,988 shares of the  Registrant's  common
stock issued and outstanding.
<PAGE>

                                 FFW CORPORATION

                                      INDEX


PART I.     FINANCIAL INFORMATION (unaudited)                  

Item 1.       Consolidated Condensed Financial Statements

                  Consolidated Condensed Balance Sheets September 30, 1997   
                  and June 30, 1997.

                  Consolidated  Condensed  Statements  of Income for the 4 three
                  months ended September 30, 1997 and 1996.

                  Consolidated  Statements  of  Shareholders'  Equity  for the 
                  three months ended September 30, 1997 and 1996.

                  Consolidated Statements of Cash Flows for the three    
                  months ended September 30, 1997 and 1996.

                  Notes to Consolidated Condensed Financial Statements   


Item 2.       Management's Discussion and Analysis of Financial   
               Condition and Results of Operations



PART II.    OTHER INFORMATION

              Signature Page
<PAGE>
<TABLE>
<CAPTION>
                          PART I: FINANCIAL INFORMATION
                                 FFW CORPORATION
                           CONSOLIDATED BALANCE SHEETS

                                                                                                     (Unaudited)
ASSETS:                                                                                   September 30         June 30
                                                                                              1997               1997
                                                                                         -------------      -------------
<S>                                                                                      <C>                <C>
         Cash and due from financial institutions ..................................     $   1,495,824      $   1,620,716
         Interest-earning deposits in financial institutions - short term ..........         1,729,061         15,499,898
                                                                                         -------------      -------------
                  Cash and cash equivalents ........................................     $   3,224,885      $  17,120,614
         Interest-earning deposits in financial institutions
                  (cost approximates market value) .................................              --                 --
         Securities available for sale .............................................        50,452,597         40,449,698
         Loans held for sale, net of unrealized gains and losses ...................              --                 --   
         Loans receivable, net of allowance for loan losses of $725,537 in September
                  and $571,751 in June .............................................       119,763,943        114,158,745
         Stock in Federal Home Loan Bank, at cost ..................................         2,397,600          2,397,600
         Accrued interest receivable ...............................................         1,313,942          1,123,623
         Premises and Equipment-net ................................................         1,894,284          1,926,910
              Investment in limited partnership ....................................           749,952            749,952
         Other assets ..............................................................         2,187,038          2,128,339
                                                                                         -------------      -------------
                           Total Assets ............................................     $ 181,984,241      $ 180,055,481
                                                                                         =============      =============

LIABILITIES AND SHAREHOLDERS' EQUITY:

Liabilities:
         Non-interest-bearing demand deposits ......................................     $   6,158,575      $   5,751,478
         Savings, Now and MMDA deposits ............................................        50,661,998         50,529,826
         Other time deposits .......................................................        58,119,486         59,837,170
                                                                                         -------------      -------------
                  Total Deposits ...................................................     $ 114,940,059      $ 116,118,474
         Federal Home Loan Bank advances ...........................................        46,800,000         44,800,000
              Obligations relative to limited partnership ..........................           525,000            712,500
         Accrued Interest Payable ..................................................           634,265            157,521
         Accrued expenses and other liabilities ....................................         1,474,429          1,125,700
                                                                                         -------------      -------------
                  Total Liabilities ................................................     $ 164,373,753      $ 162,914,195

</TABLE>
<PAGE>
<TABLE>
<CAPTION>
                                 FFW CORPORATION
                           CONSOLIDATED BALANCE SHEETS

                                                                                                     (Unaudited)
                                                                                         September 30         June 30
                                                                                              1997               1997
                                                                                         -------------      -------------
<S>                                                                                      <C>                <C>
Shareholders' Equity:

         Preferred stock, $.01 par value, 500,000 shares authorized none issued ....              --                 --
         Common stock, $.01 par value, 2,000,000 shares authorized, 873,379 shares
                  issued and 714,847 outstanding at March 31, 1997; 853,592 shares
                  issued and 710,840 shares outstanding at June 30, 1997 ...........             8,734              8,698
         Additional paid-in capital ................................................         8,488,659          8,439,565
         Retained earnings - substantially restricted ..............................        11,460,684         11,119,378
         Net  unrealized  appreciation on securities available for sale, net
                of tax of $210,706 on September  30, 1997 and $405,385 on June
                30, 1997 ...........................................................           580,949            502,183
         Unearned Employee stock Ownership Plan shares .............................          (244,553)          (244,553)
         Treasury Stock 158,532 common shares, at cost .............................        (2,683,985)        (2,683,985)
                                                                                         -------------      -------------
                  Total Shareholders' equity .......................................        17,610,488         17,141,286


                           Total Liabilities and Shareholders' Equity ..............     $ 181,984,241      $ 180,055,481
                                                                                         =============      =============

</TABLE>
<PAGE>
<TABLE>
<CAPTION>
                                PART I: FINANCIAL INFORMATION
                                       FFW CORPORATION
                              CONSOLIDATED STATEMENTS OF INCOME
                                         (Unaudited)

                                                                     Three Months Ended
                                                                       September 30
                                                                    1997           1996
                                                                -----------     -----------
<S>                                                             <C>             <C>
Interest Income:

         Loans Receivable
                  Mortgage loans ..........................     $ 1,581,434     $ 1,448,240
                  Consumer and other loans ................         996,536         739,004
         Securities
                  Taxable .................................         761,959         593,654
                  Nontaxable ..............................         103,409         117,786
         Other Interest-earning assets ....................          62,200          27,636
                                                                -----------     -----------
                  Total Interest Income ...................     $ 3,505,538     $ 2,926,320

Interest Expense:

         Deposits .........................................       1,386,462       1,169,388
         Other ............................................         675,266         589,203
                                                                -----------     -----------
                  Total Interest Expense ..................     $ 2,061,728     $ 1,758,591

Net Interest Income .......................................       1,443,810       1,167,729

         Provision for Loan Losses ........................         200,000          20,000
                                                                -----------     -----------

Net interest income after provision for loan losses .......       1,243,810       1,147,729

Non-interest income:

         Net gain on sale of interest-earning assets ......          16,240          10,728
         Net unrealized gain or loss on loans held for sale            --              --
         Other ............................................         217,550         147,721
                                                                -----------     -----------
                  Total Non-Interest Income ...............     $   233,790     $   158,449
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
                              CONSOLIDATED STATEMENTS OF INCOME
                                         (Unaudited)
                                         (continued)

                                                                     Three Months Ended
                                                                       September 30
                                                                    1997           1996
                                                                -----------     -----------
<S>                                                             <C>             <C>
Non-Interest Expense:

         Compensation and Benefits ........................         442,537         339,047
         Occupancy and equipment ..........................          80,614          64,486
         SAIF deposit insurance premiums ..................          27,164         623,249
         Other ............................................         359,797         230,979
                                                                -----------     -----------
                  Total Non-Interest Expense ..............     $   910,112     $ 1,257,761
                                                                -----------     -----------

Income before income taxes ................................         567,488
          48,417

         Income Tax Expense ...............................          97,510         (30,988)
                                                                -----------     -----------

Net Income ................................................     $   469,978     $    79,405
                                                                ===========     ===========

Earnings per common and common equivalent shares:

         Primary ..........................................     $       .66     $       .11
         Fully Diluted ....................................     $       .65     $       .11

</TABLE>
<PAGE>
<TABLE>
<CAPTION>
                          PART I: FINANCIAL INFORMATION
                                 FFW CORPORATION
                 CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
                                   (Unaudited)






                                                                   Three Months Ended
                                                                       September 30
                                                             ------------------------------
                                                                  1997              1996
                                                             ------------      ------------
<S>                                                          <C>                <C>
Beginning Balance ......................................     $ 17,141,286      $ 15,458,143

Common Stock at .01 Par Value 2,000,000 shares
         authorized  issued  and
         outstanding September 30, 1997 -- 873,379;
         September 30, 1996 -- 853,592 .................               36              --

Additional Paid-in Capital .............................           49,094           24,000

Treasury Stock at Cost - 0 shares for the three-month
         period September 30, 1997
         and 9,000 shares for
         the three-month period September 30, 1996 .....             --            (176,625)

Cash Dividends of:
         $.18 and $.15 per share for the three-month
         periods ended September 30,1997 and 1996 ......         (128,672)         (105,309)

Amortization of ESOP Contribution ......................             --                --

Amortization of MRP Contribution .......................             --               6,539

Net unrealized appreciation (depreciation) on securities
         available for sale, net of tax ................           78,766           187,840

Net Income for Period(s) ...............................          469,978            79,405
                                                             ------------      ------------

Ending Balance .........................................     $ 17,610,488      $ 15,473,993
                                                             ============      ============


</TABLE>
<PAGE>
<TABLE>
<CAPTION>
                                       PART I: FINANCIAL INFORMATION
                                              FFW CORPORATION
                                   CONSOLIDATED STATEMENTS OF CASH FLOWS
                                                (Unaudited)

                                                                                  Three Months Ended
                                                                                      September 30
                                                                                 1997               1996
                                                                            ------------      ------------
<S>                                                                         <C>               <C>
Cash flows from operating activities:

         Net Income ...................................................     $    469,978      $     79,405
         Adjustments to reconcile net income to net cash
              from operating activities:

             Depreciation and amortization, net of accretion ..........          (16,167)           44,449
             Provision for loan losses ................................          200,000            20,000
             Net (gains) losses on sales of:
                  Securities available for sale .......................             --                --
                    Loans held for sale ...............................          (21,909)          (13,679)
                    Foreclosed real estate owned and repossessed assets           (1,398)           (8,273)
             Origination of loans held for sale .......................       (1,940,280)       (1,400,221)
             Proceeds from sale of loans held for sale ................        1,962,189         1,407,339
             ESOP expenses ............................................           13,000            24,000
             Amortization of MRP contribution .........................             --               6,539
             Net change in accrued interest receivable ................         (190,319)          (52,316)
             Amortization of goodwill and core deposit intangibles ....           41,118              --
             Net change in other assets ...............................         (213,369)         (225,181)
             Net change in accrued interest payable, accrued
                  expenses and other liabilities ......................          811,572           893,354
                                                                            ------------      ------------
                           Total adjustments ..........................     $    644,435      $    696,011
                                                                            ------------      ------------
                  Net cash from operating activities ..................     $  1,114,413      $    775,416

Cash flows from investing activities:

             Net change in interest-bearing deposits in other
                  financial institutions ..............................             --             337,935 
             Proceeds from:
                  sales/calls of securities available for sale ........        5,000,000              --
                  sales/calls of securities held-to-maturity ..........             --                --
                  maturities of securities available for sale .........           45,000           330,000
                  maturities of securities held-to-maturity ...........             --                --
             Purchase of:
                  securities available for sale .......................      (15,056,122)         (546,485)
                  Federal Home Loan Bank Stock ........................             --                --
             Principal collected on mortgage- backed securities .......          154,081           159,042
             Net change in loans receivable ...........................       (5,805,198)       (2,516,310)
             Net purchases premises and equipment .....................           (8,396)          (50,855)
             Investment in limited partnership ........................         (187,500)             --
             Proceeds from sales of other real estate and
                  repossessed assets ..................................          118,950           117,734
                                                                            ------------      ------------
                           Net cash from investing activities .........     $(15,739,185)     $ (2,168,939)
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
                                       PART I: FINANCIAL INFORMATION
                                              FFW CORPORATION
                                   CONSOLIDATED STATEMENTS OF CASH FLOWS
                                                (Continued)



                                                                                  Three Months Ended
                                                                                      September 30
                                                                               1997                1996
                                                                          ------------        ------------
<S>                                                                       <C>                 <C>
Cash flows from financing activities:

            Net (decrease) increase in deposits ...................         (1,178,415)          7,174,882
            Proceeds from Federal Home Loan Bank advances .........         10,500,000                --   
            Repayment of Federal Home Loan Bank advances ..........         (8,500,000)         (4,000,000)
            Purchase of Treasury Stock ............................               --              (176,625)
            Proceeds from exercising of stock options .............             36,130                --
            Cash dividends paid ...................................           (128,672)           (105,309)
                                                                          ------------        ------------
                  Net cash from financing activities ..............       $  6,521,332        $  2,892,948

Net (decrease) increase in cash and cash equivalents ..............       $(13,895,729)       $  1,499,425
Cash and cash equivalents at beginning of period ..................       $ 17,120,614        $  2,788,207

Cash and cash equivalents at end of period ........................       $  3,224,885        $  4,287,632
                                                                          ============        ============


Supplemental disclosure of cash flow information:

            Cash paid during quarter for:
                  Interest ........................................       $  1,585,324        $  1,348,029
                  Income Taxes ....................................       $     50,000        $     61,000


            Non-cash investing activities transfers from:


</TABLE>
<PAGE>
                                 FFW CORPORATION
              NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
                                   (UNAUDITED)


(1)  Basis of Presentation

         The accompanying  unaudited Consolidated Condensed Financial Statements
have been prepared in accordance with generally accepted  accounting  principles
for interim  financial  information  and with the  instructions to Form 10-Q and
Regulation  S-X.  Accordingly,  they  do not  include  all the  information  and
footnotes  required by generally  accepted  accounting  principles  for complete
financial statements.

         In the opinion of  management,  the  Consolidated  Condensed  Financial
Statements  contain  all  adjustments   (consisting  only  of  normal  recurring
adjustments)  necessary  to  represent  fairly the  financial  condition  of FFW
Corporation  as of September 30, 1997 and June 30, 1997,  and the results of its
operations, changes in shareholders' equity for the three months ended September
30, 1997 and 1996. Financial Statement  reclassifications have been made for the
prior period to conform to  classifications  used as of and for the period ended
September 30, 1997.

         Operating results for the three months ended September 30, 1997 are not
necessarily  indicative  of the results that may be expected for the fiscal year
ended June 30, 1998.

(2)  Earnings Per Share of Common Stock

         Earnings  per share of Common  Stock is computed by dividing net income
for the period by the weighted  average  number of common stock and common stock
equivalents  outstanding during the three month periods ended September 30, 1997
and 1996.  Weighted  average  number of shares  used in the  earnings  per share
computations were 690,936 for the three-month period ended September 30, 1997.

         On October 26,  1993,  the  shareholders  of the Company  ratified  the
adoption  of the  Company's  1992  Stock  Option  and  Incentive  Plan  and  the
Management  Recognition  Plan and Trusts  ("MRP").  Pursuant to the Stock Option
Plan, 84,500 shares of the Company's Common Stock are reserved for issuance,  of
which the Company has granted  options on 76,442  shares.  As of  September  30,
1997, options on 38,066 shares of the Company's Common Stock remain unexercised.

(3)  Regulatory Capital Requirements

         Pursuant to the Financial Institution Reform, Recovery, and Enforcement
Act of l989 ("FIRREA"),  savings  institutions  must meet three separate minimum
capital-to-asset  requirements.  The following table summarizes, as of September
30,  1997,  the capital  requirements  for the Bank under  FIRREA and its actual
capital ratios.  As of September 30, 1997, the Bank  substantially  exceeded all
current regulatory capital standards.
<PAGE>
<TABLE>
<CAPTION>

                            Regulatory                     Actual
                        Capital Requirement          Capital (Bank Only)
                        --------------------       ---------------------                             
                        Amount       Percent        Amount       Percent 
                        ------       -------        ------       ------- 
                                     (Dollars in Thousands)
<S>                     <C>           <C>          <C>            <C>

Risk-Based              $8,041        8.00%        $12,781        12.71%
Core Capital             5,310        3.00%         12,060         6.62%
Tangible  Capital        2,655        1.50%         12,060         6.62%

</TABLE>

(4)  Common Stock Cash Dividends

         On August 26, 1997, the Board of Directors of FFW Corporation, declared
a quarterly cash dividend of $.18 per share. The dividend was paid September 30,
1997 to  shareholders  of record on September 15, 1997.  The payment of the cash
dividend reduced shareholders' equity by $128,672.
<PAGE>
                                     PART II

                                 FFW CORPORATION

                Management's Discussion and Analysis of Financial
                       Condition and Results of Operations


General

         The accompanying  Consolidated Financial Statement includes the account
of FFW  Corporation  (the  "Company") and its wholly owned  subsidiaries,  First
Federal  Savings Bank of  Wabash(the  "Bank") and FirstFed  Financial of Wabash,
Inc. All significant  inter-company  transactions and balances are eliminated in
consolidation.  The Company's  results of operations are primarily  dependent on
the Bank's net interest margin,  which is the difference between interest income
on interest-earning assets and interest expense on interest-bearing liabilities.
The  Bank's  net  income  is also  affected  by the  level  of its  non-interest
expenses,  such as employee compensation and benefits,  occupancy expenses,  and
other expenses.

Forward - Looking Statements

         When used in this Form 10 - Q and in future filings by the Company with
Securities  and Exchange  Commission,  in the  Company's  press release or other
public  or  shareholder  communications,  and in oral  statements  made with the
approval of an authorized  executive  officer,  the words or phrase "will likely
result",  "are expected to",  "will  continue",  "is  anticipated",  "estimate",
"project" or similar  expressions  are  intended to identify  "forward - looking
statements" within the meaning of the Private  Securities  Litigation Reform Act
of 1997.  Such statements are subject to certain risks and  uncertainties,  that
could cause actual results to differ  materially  from  historical  earnings and
those presently anticipated or projected.  The Company wishes to caution readers
not to place undue  reliance  on any such  forward - looking  statements,  which
speak only as of the date made.  The Company  wishes to advise  readers that the
factors listed below could affect the Company's financial  performance and could
cause the Company's actual results for future periods to differ  materially from
any  opinions or  statements  expressed  with  respect to future  periods in any
current statements.

         The  Company  does  not  undertake  -  and  specifically  declines  any
obligation - to publicly  release the result of any revisions  which may be made
to any forward - looking statements to reflect events or circumstances after the
date  of  such  statements  or to  reflect  the  occurrence  of  anticipated  or
unanticipated events.

Financial Condition

         The Company's total assets increased $1.9 million, or 1.1%, from $180.1
million at June 30, 1997 to $182.0 million at September 30, 1997.  This increase
was due  primarily to funds  generated  by an increase in advances  from FHLB of
$2.0  million.  Net loans  receivables  increased  $5.6  million and  securities
available-for-sale  increased  $10.0  million.  All of  which  contributed  to a
decrease  in cash and  cash  equivalents  of  $13.9  million.  Loan  demand  and
liquidity needs may result in additional  borrowings if deposits and loan growth
remain at current levels.
<PAGE>
         Total securities  available-for-sale increased $10.0 million from $40.4
million at June 30, 1997 to $50.4 million at September  30, 1997.  This increase
was primarily the result of purchases of callable bonds with the proceeds of the
branch  acquisition  which  closed  on June  13.  1997.  The  available-for-sale
portfolio  consists  primarily of  municipal  securities,  government  agencies,
mortgage-backed  securities  and  to a  lesser  extent  mutual  funds  and  FNMA
preferred stock.

         Net loans  receivable  increased  $5.6  million,  or 4.9%  from  $114.2
million at June 30, 1997 to $119.8  million at September 30, 1997.  The increase
in the loan portfolio for the quarter resulted,  primarily,  from an increase in
non-mortgage  loans  of  $3.5  million  due  to an  increase  in  origination's.
Management,  consistent with its  asset/liability  objectives,  will continue to
sell  all of its  newly  originated  fixed-rate  mortgage  loans  with  terms to
maturity greater than 15 years.

         Total  deposits  decreased  $1.2 million or 1.0% from $116.1 million at
June 30, 1997 to $114.9  million at September  30, 1997.  For the quarter  ended
September 30, 1997,  Savings,  Now and MMDA accounts  increased  $395,000 or .7%
while  certificates  of  deposit  decreased  $1.7  million  or 2.9%.  Management
believes  that deposit  growth may become more costly with the  increased use of
specials with higher interest rates and the competitive nature of the markets we
serve.

         Total borrowed funds  increased $2.0 million from $44.8 million at June
30, 1997 to $46.8 million at September 30, 1997.  The increase  consisted of new
short term advances from the Federal Home Loan Bank of Indianapolis.

         Total  shareholders'  equity  increased  $469,000 from $17.1 million at
June 30, 1997 to $17.6 million at September 30, 1997. The increase resulted from
net income of $470,000,  the exercise of options for $36,000, and an increase in
the market  value of  investments,  net of tax of $79,000,  which was  partially
reduced by $128,700 for the payment of dividends.

Results of Operations - Comparison of the Quarters Ended  September 30, 1997 and
September 30, 1996

         General.  Net income  increased  by $391,000 for the three months ended
September 31, 1997 respectively, as compared to the three months ended September
30,  1996.  The  increase  for the three  months  ended  September  30, 1997 was
primarily the result of increases in net interest income,  and the result of the
one time SAIF  assessment  of $337,800  net of taxes paid in 1996.  All of these
items are discussed in greater detail below.

         Net Interest Income.  Net interest income  increased  $276,000 or 23.6%
for the three months ended  September 30, 1997 and 1996  respectively.  This was
primarily  the result of an increase in average  interest-earning  assets  which
exceeded  the   increase  in  average   interest-bearing   liabilities,   and  a
corresponding increase in the spread earned.

Interest Income.  Interest income  increased  $579,000 to $3.5 from $2.9 million
for the quarter ended September 30, 1997 and 1996 respectively. The increases in
interest  income  for the three  months  ended  September  30,  1997 were due to
continued growth in interest-earning assets including mortgage loans, commercial
and  consumer  loans and  investment,  as  compared  to the same  periods  ended
September 30, 1996.  These increased  interest-earning  assets are the result of
competitive pricing,  marketing, and the re-pricing of adjustable-rate loans and
mortgage-backed securities.
<PAGE>
         Interest Expense.  Interest expense increased  $303,000 to $2.1 million
from  $1.8  million  for  the  quarter   ended   September  30,  1997  and  1996
respectively.  For the three months ended  September  30, 1997,  the increase in
interest  expense  was  due  to an  increase  in  borrowed  funds  and  deposits
outstanding  as  compared to the same  periods in 1996.  Interest  rates,  while
remaining  steady have  increased  the use of higher  rate  specials by everyone
trying to attract deposits.  If interest rates remain at or near current levels,
management  anticipates the rate of shift to certificates from passbook accounts
will  continue.  thereby  raising our interest  expense cost, as the  difference
between rates paid on existing certificates and passbooks expands.

         Provision  for Loan Losses.  The  provision  for loan losses  increased
$180,000 to $200,000 from $20,000 for the quarter  ended  September 30, 1997 and
1996 respectively.  The loan loss provisions are based on management's quarterly
analysis of the allowance for loan losses.  The  provisions  for the three month
period reflect an increase in  non-mortgage  lending and the inherent  riskiness
and the number of these loans as compared to 1-4 family mortgage loans. With the
expansion  into  commercial  lending the company  will  continue to increase its
allowance for loan losses and make future additions to the allowance through the
provision  for loan losses as loan growth,  economic and  regulatory  conditions
dictate. Although the Company maintains its allowance for loan losses at a level
which is deemed  consistent  with the level of risk in the  portfolio,  economic
conditions,  etc.  there can be no assurance  that future losses will not exceed
estimated  amounts or that  additional  provisions  for loan  losses will not be
required in future periods.

         Non-interest  Income.  Non-interest  income  increased  by  $75,000  to
$234,000  from  $158,000  for the  quarter  ended  September  30,  1997 and 1996
respectively.  The increase was the primarily the result of increased fee income
on deposit  accounts  and  commission  income of $54,000 and increase in gain on
sales of  loans  to the  Federal  Home  Loan  Mortgage  Corporation  of  $5,500.
Management believes that with the lower interest rates we will see a increase in
the  gain on sales of loans  to  Freddie  Mac for the  remainder  of the year as
compared to last year.

         Non-Interest  Expense.   Non-interest  expense  decreased  $348,000  to
$910,000  from $1.3 million for the quarter  ended  September  30, 1997 and 1996
respectively.  For the three  months  ended  September  30,  1997,  SAIF deposit
premiums  decreased  $596,000 due to the one time  assessment paid in 1996. This
decrease  in the SAIF  premium was offset by an increase  in,  compensation  and
benefits  expenses of $103,000 for increased  staff related to our new branch in
South Whitley and our  commercial  loan  department  compared to 1996; and other
expenses  increased  by $156,000  for data  processing  and cost  related to the
branch acquisition in South Whitley compared to 1996.

         Income Tax Expense.  Income tax expense  increased  $128,500 to $98,000
from a credit of $31,000 for the quarter  ended  September  30, 1997 compared to
quarter ended 1996.  The increase was due to the tax effect of the one time SAIF
assessment for the quarter ended September 30, 1996.

         Non-Performing  Assets and Allowance for Loan Losses. The allowance for
loan  losses  is  calculated  based  upon an  evaluation  of  pertinent  factors
underlying the types and qualities of the Company's loans.  Management considers
such factors as the repayment  status of a loan,  the  estimated net  realizable
value of the underlying  collateral,  the borrower's  ability to repay the loan,
current and anticipated  economic  conditions  which might affect the borrower's
<PAGE>
ability to repay the loan and the Company's past statistical  history concerning
charge-offs.  The Company's  allowance for loan losses as of September 30, 1997,
was $726,000 or 0.6% of total loans. The June 30, 1997 allowance for loan losses
was $572,000,  or 0.5% of total loans.  Total loans  classified as  substandard,
doubtful or loss as of  September  30,  1997 were $1.3  million or 0.7% of total
assets.  Management has considered  non-performing  assets and total  classified
assets in establishing the allowance for loan losses.

         The ratio of non-performing  assets to total assets is one indicator of
the exposure to credit  risk.  Non-performing  assets of the Company  consist of
non-accruing  loans,  accruing loans  delinquent 90 days or more, and foreclosed
assets which have been acquired as a result of  foreclosure or  deed-in-lieu  of
foreclosure.
<TABLE>
<CAPTION>
                                                           9/30/97       6/30/97
                                                           -------       -------
                                                           (Dollars in Thousands)
<S>                                                          <C>           <C>
Non-Accruing Loans .................................         $290          $248
Accruing Loans Delinquent 90 days or more ..........          --            --
Troubled Debt Restructurings .......................          --            --
Foreclosed Assets ..................................           44            33

Total Non-Performing Assets ........................         $334          $281
                                                             ====          ====

Total Non-Performing Assets as a
Percentage of Total Assets .........................          .18%          .16%
</TABLE>


         Total non-performing  assets increased $53,000 to $355,000,  or .22% of
total assets at September  30,  1997,  from  $180,000 or .11% of total assets at
December 31, 1996.  The increase in  non-performing  assets was primarily due to
the addition of two 1-4 family loans for $123,000.  Foreclosed  assets increased
$11,000 due to the repossession of several vehicles.

         Liquidity and Capital Resources. The Company's primary sources of funds
are  deposits,  principal  and  interest  payments on loans and  mortgage-backed
securities,  FHLB Indianapolis advances and funds provided by operations.  While
scheduled  loan  and   mortgage-backed   security  repayments  and  maturity  of
short-term  investments are a relatively  predictable  source of funds,  deposit
flows are greatly  influenced by general  interest rates,  economic  conditions,
competition  and,  most  recently,  the  restructuring  occurring  in the thrift
industry.  Current Office of Thrift Supervision  regulations require the Bank to
maintain  cash and eligible  investments  in an amount equal to at least 5.0% of
customer  accounts  and  short-term  borrowings  to assure  its  ability to meet
demands for withdrawals and repayment of short-term borrowings.  As of September
30, 1997, the Bank's  liquidity ratio of 5.95%,  exceeds the minimum  regulatory
requirements.
<PAGE>
         The Company uses its capital resources  principally to meet its ongoing
commitments  to fund  maturing  certificates  of deposits and loan  commitments,
maintain is liquidity and meet  operating  expenses.  At September 30, 1997, the
Company has  commitments to originate  loans totaling $2.2 million.  The Company
considers  its  liquidity  and  capital  resources  to be  adequate  to meet its
foreseeable  short- and long-term  needs. The Company expects to be able to fund
or  refinance,  on a  timely  basis,  its  material  commitments  and  long-term
liabilities.

         Regulatory  standards  impose the  following  capital  requirements:  a
risk-based  capital standard  expressed as a percent of risk-adjusted  assets, a
leverage ratio of core capital to total adjusted assets,  and a tangible capital
ratio expressed as a percent of total adjusted assets. As of September 30, 1997,
the Bank exceeded all fully phased-in regulatory capital standards.

         At September 30, 1997, the Bank's  tangible  capital was $12.1 million,
or 6.8% of adjusted total assets,  which is in excess of the 1.5% requirement by
$9.4 million.  In addition,  at September 30, 1997, the Bank had core capital of
$12.1  million,  or 6.8% of  adjusted  total  assets,  which  exceeds  the  3.0%
requirement by $6.8 million. The Bank had risk-based capital of $12.8 million at
September  30,  1997 or 12.7% of  risk-adjusted  assets  which  exceeds the 8.0%
risk-based capital requirements by $4.7 million.

         As required by federal law,  the OTS has  proposed a rule  revising its
minimum core capital  requirement  to be no less  stringent than that imposed on
national banks. The OTS has proposed that only those savings  associations rated
a composite  one (the highest  rating) under the MACRO rating system for savings
associations  will be  permitted  to operate at or near the  regulatory  minimum
leverage  ratio of 3.0%.  All other  savings  associations  will be  required to
maintain  a minimum  leverage  ratio of 3.0% at least an  additional  100 to 200
basis points.  The OTS will assess each individual savings  association  through
the  supervisory  process on a  case-by-case  basis to determine the  applicable
requirement.  No  assurance  can be  given  as to the  final  form  of any  such
regulation,  the date of its effectiveness or the requirement  applicable to the
Bank.  As a result of the prompt  corrective  action  provisions  of federal law
discussed  below,  however,  a savings  association must maintain a core capital
ratio  of at least  4.0% to be  considered  adequately  capitalized  unless  its
supervisory condition is such to allow it to maintain a 3.0% ratio.

         Under the requirements of federal law all the federal banking agencies,
including the OTS, must revise their risk-based  capital  requirements to ensure
that such requirements  account for interest rate risk,  concentration of credit
risk and the risks of  non-traditional  activities,  and that they  reflect  the
actual performance of and expected loss on multi-family loans.

         The  OTS  had  adopted  a  final  rule  that  requires   every  savings
association  with more than normal  interest  rate risk to deduct from its total
capital, for purposes of determining compliance with such requirement, an amount
equal to 50% of its interest-rate  risk exposure  multiplied by the market value
of its assets. This exposure is a measure of the potential decline in the market
value of portfolio equity of a savings association,  greater than 2%, based upon
a hypothetical 200 basis point increase or decrease in interest rates (whichever
results in a greater  decline)  affecting  on-and  off-balance  sheet assets and
liabilities.  The effective  date of the new  requirement  is July 1, 1994.  Any
savings  association  with less than $300 million in assets and a total  capital
ratio in excess of 12% is exempt from this requirement unless the OTS determines
otherwise.  It is anticipated  that since the Bank has less than $300 million in
assets,  and a risk-based capital ratio in excess of 12%, it will be exempt from
this rule.
<PAGE>

                           Part II - Other Information


         As of  September  30,  1997,  management  is not  aware of any  current
recommendations by regulatory authorities which, if they were to be implemented,
would have or are  reasonably  likely to have a material  adverse  effect on the
Company's liquidity, capital resources or operations.

Item 1  -  Legal Proceedings

         Not Applicable.

Item 2  -  Changes in Securities

         Not Applicable.

Item 3  -  Defaults upon Senior Securities

         Not Applicable.

Item 4  -  Submission of Matters to a vote of Security Holders
            

         The Annual Meeting of  Shareholders  (the "Meeting") of FFW Corporation
was held on October 28,  1997.  The  matters  approved  by  shareholders  at the
Meeting  and the number of votes cast for,  against or withheld ( as well as the
number of abstentions and broker non-votes) as to each matter are set below:

                  PROPOSAL                         NUMBER OF VOTES
                  --------                         ---------------
                                                 FOR            WITHHELD
                                                 ---            --------
Election of the following Directors for
a three-year term
         Wayne W. Rees ......................   590,632           900
         Ronald D. Reynolds .................   590,632           900

                                                 FOR        AGAINST      ABSTAIN
                                                 ---        -------      -------
Ratification of Crowe Chizek as auditors 
for the fiscal year ending June 30, 1998.....  589,867        500         1,165

Item 5  -  Other Information

         Not Applicable
                                                         
Item 6  -  Exhibits and Reports on Form 8-K

         (a)  Exhibits

               Not Applicable

         (b) The following is a  description  of the Form 8-K's filed during the
quarter ended September 30, 1997.

             (i)   A Form 8-K was filed on July 31, 1997 announcing the year end
                   income results for fiscal year end June 30, 1997
<PAGE>

                                                                  
                                   SIGNATURES



Pursuant  to the  requirement  of the  Securities  Exchange  Act  of  1934,  the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned thereunto duly authorized.



                                                FFW CORPORATION
                                                Registrant




 November 12, 1997                              /S/ Nicholas  M. George
                                                ------------------------
                                                Nicholas M. George
                                                President and Chief
                                                Executive Officer




 November 12, 1997                              /S/ Charles E. Redman
                                                Charles E. Redman
                                                Treasurer and Chief Financial
                                                Accounting Officer