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 December 31, 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  February  13,  1998  there  were  1,449,532  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  December 31, 1997 and
                 June 30, 1997

                 Consolidated  Condensed  Statements  of  Income  for the  three
                 months  ended  December  31,  1997 and 1996 and the six  months
                 ended December 31, 1997 and 1996

                 Consolidated  Statements of Shareholders'  Equity for the three
                 months  ended  December  31,  1997 and 1996 and the six  months
                 ended December 31, 1997 and 1996.

                 Consolidated  Statements  of Cash  Flows for the  three  months
                 ended  December  31,  1997 and 1996  and the six  months  ended
                 December 31, 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:                                                                                         December 31          June 30
                                                                                                    1997               1997
                                                                                              -------------      -------------
<S>                                                                                           <C>                <C>            
         Cash and due from financial institutions .......................................     $     635,898      $   1,620,716
         Interest-earning deposits in financial institutions - short term ...............         5,833,399         15,499,898
                                                                                              -------------      -------------
                  Cash and cash equivalents .............................................     $   6,469,297      $  17,120,614
         Interest-earning deposits in financial institutions
                  (cost approximates market value) ......................................              --                 --
         Securities available for sale ..................................................        47,347,334         40,449,698
         Loans held for sale, net of unrealized gains and losses ........................              --                 --
         Loans receivable, net of allowance for loan losses of $723,142 in December
                  and $571,751 in June ..................................................       128,222,423        114,158,745
         Stock in Federal Home Loan Bank, at cost .......................................         2,707,200          2,397,600
         Accrued interest receivable ....................................................         1,510,230          1,123,623
         Premises and Equipment-net .....................................................         2,007,660          1,926,910
              Investment in limited partnership .........................................           749,952            749,952
         Other assets
                                                                                                  2,283,474          2,128,339
                                                                                              -------------      -------------
                           Total Assets .................................................     $ 191,297,570      $ 180,055,481
                                                                                              =============      =============

LIABILITIES AND SHAREHOLDERS' EQUITY:

Liabilities:
         Non-interest-bearing demand deposits ...........................................     $   8,033,588      $   5,751,478
         Savings, Now and MMDA deposits .................................................        47,756,017         50,529,826
         Other time deposits ............................................................        60,316,083         59,837,170
                                                                                              -------------      -------------
                  Total Deposits ........................................................     $ 116,105,688      $ 116,118,474

         Federal Home Loan Bank advances ................................................        52,675,956         44,800,000
              Obligation relative to limited partnership ................................           525,000            712,500
         Accrued Interest Payable .......................................................           170,183            157,521
         Accrued expenses and other liabilities .........................................         3,636,119          1,125,700
                                                                                              -------------      -------------  
                  Total Liabilities .....................................................     $ 173,112,946      $ 162,914,195

</TABLE>
<PAGE>
<TABLE>
<CAPTION>
                                                        FFW CORPORATION
                                                  CONSOLIDATED BALANCE SHEETS
                                                           (continued)


                                                                                                         (Unaudited)
                                                                                               December 31          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; 1,760,146 shares
                  issued and 1,443,082 outstanding at December 31, 1997; 1,739,532 shares
                  issued and 1,422,468 shares outstanding at June 30, 1997 ..............             8,801              8,698
         Additional paid-in capital .....................................................         8,591,532          8,439,565
         Retained earnings - substantially restricted ...................................        11,809,433         11,119,378
         Net unrealized depreciation on securities available for sale, net
             of tax liability of $210,706 on December  31, 1997 and a tax
             benefit of $ 69,436 on June 30, 1997........................................           703,396            502,183  
         Unearned Employee stock Ownership Plan shares ..................................          (244,553)          (244,553)
         Treasury Stock at Cost, 317,064 common shares at cost,
                  at December 31, 1997 and June 30, 1997, respectively ..................        (2,683,985)        (2,683,985)
                                                                                              -------------      -------------
                                                                                                                              
                  Total Shareholders' equity ............................................        18,184,624         17,141,286

                           Total Liabilities and Shareholders' Equity ...................     $ 191,297,570      $ 180,055,481
                                                                                              =============      =============


</TABLE>
<PAGE>
<TABLE>
<CAPTION>
                                                     FFW CORPORATION
                                            CONSOLIDATED STATEMENTS OF INCOME
                                                       (Unaudited)

                                                                     Three Months Ended            Six Months Ended
                                                                        December 31                   December 31
                                                                -------------------------     -------------------------
                                                                    1997           1996           1997          1996
                                                                ----------     ----------     ----------     ----------
<S>                                                             <C>            <C>            <C>            <C>
Interest Income:

         Loans Receivable
                  Mortgage loans ..........................     $1,600,395     $1,475,668     $3,181,829     $2,923,907
                  Consumer and other loans ................      1,094,804        791,937      2,091,341      1,530,941
         Securities
                  Taxable .................................        767,562        624,681      1,529,521      1,218,335
                  Nontaxable ..............................        105,097        119,132        208,506        236,918
         Other Interest-earning assets ....................         10,950         13,816         73,149         41,452
                                                                ----------     ----------     ----------     ----------
                  Total Interest Income ...................     $3,578,808     $3,025,234     $7,084,346     $5,951,553


Interest Expense:

         Deposits .........................................      1,365,681      1,201,293      2,752,142      2,370,681
         Other ............................................        743,723        600,895      1,418,989      1,190,097
                                                                ----------     ----------     ----------     ----------
                  Total Interest Expense ..................     $2,109,404     $1,802,188     $4,171,131     $3,560,778

Net Interest Income .......................................      1,469,404      1,223,046      2,913,215      2,390,775

         Provision for Loan Losses ........................         65,000         15,000        265,000         35,000
                                                                ----------     ----------     ----------     ----------

Net interest income after provision for loan losses .......      1,404,404      1,208,046      2,648,215      2,355,775

Non-interest income:

         Net gain on sale of interest-earning assets ......         26,309         19,498         42,549         30,226
         Net unrealized gain or loss on loans held for sale           --             --             --             --
         Other ............................................        225,895        140,588        443,445        288,309
                                                                ----------     ----------     ----------     ----------
                  Total Non-Interest Income ...............     $  252,204     $  160,086     $  485,994     $  318,535
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
                                                     FFW CORPORATION
                                            CONSOLIDATED STATEMENTS OF INCOME
                                                       (Unaudited)
                                                       (continued)

                                                                     Three Months Ended            Six Months Ended
                                                                        December 31                   December 31
                                                                -------------------------     -------------------------
                                                                    1997           1996           1997          1996
                                                                ----------     ----------     ----------     ----------
<S>                                                             <C>            <C>            <C>            <C>
Non-Interest Expense:

         Compensation and Benefits ........................        459,880        345,233        902,417        684,280
         Occupancy and equipment ..........................         81,072         72,497        161,685        136,982
         SAIF deposit insurance premiums ..................         29,993         60,289         57,157        683,539
         Other ............................................        358,570        263,161        718,368        494,140
                                                                ----------     ----------     ----------     ----------
                  Total Non-Interest Expense ..............     $  929,515     $  741,180     $1,839,627     $1,998,941
                                                                ----------     ----------     ----------     ----------

Income before income taxes ................................        727,093        626,952      1,294,582        675,369

         Income Tax Expense ...............................        248,468        200,335        345,978        169,347
                                                                ----------     ----------     ----------     ----------

Net Income ................................................     $  478,625     $  426,617     $  948,604     $  506,022
                                                                ==========     ==========     ==========     ==========
Earnings per common and common equivalent shares:
         Basic ............................................     $      .34     $      .32     $      .68     $      .38

         Diluted ..........................................     $      .34     $      .31     $      .66     $      .36
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
                                                           FFW CORPORATION
                                           CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
                                                             (Unaudited)


                                                                     Three Months Ended                    Six Months Ended
                                                                        December 31                          December 31
                                                                ------------------------------      ------------------------------
                                                                     1997              1996              1997              1996
                                                                ------------      ------------      ------------      ------------ 
<S>                                                             <C>               <C>               <C>               <C>
Beginning Balance .........................................     $ 17,610,488      $ 15,473,993      $ 17,141,286      $ 15,458,143

Common Stock at .01 Par Value 2,000,000 shares
         authorized  issued and outstanding
         December 31, 1997 -- 1,443,082;
         December 31, 1996 -- 1,390,120 ...................               67              --                 103              --

Additional Paid-in Capital ................................          102,873            24,000           151,967            48,000

Treasury Stock at Cost - no shares for
         the three-month periods and -0- and 
         9,000 shares for the six-month periods
         ended 1997 and 1996 ..............................             --                --                --            (176,625)

Cash Dividends of:
         $0.09 and $0.075 share for the three-month
         periods and $0.18 and $0.15 per share for the
         six-month periods ended 1997 and 1996 ............         (129,877)         (105,309)         (258,549)         (210,618)

Amortization of ESOP Contribution .........................             --              42,574              --              42,574

Amortization of MRP Contribution ..........................             --               6,540              --              13,079

Net change in unrealized depreciation on equity
         securities available for sale ....................          122,447           248,194           201,213           436,034

Net Income for Period(s) ..................................          478,626           426,617           948,604           506,022
                                                                ------------      ------------      ------------      ------------

Ending Balance ............................................     $ 18,184,624      $ 16,116,609      $ 18,184,624      $ 16,116,609
                                                                ============      ============      ============      ============
</TABLE>
<PAGE>
<TABLE>
<CAPTION>

                                                           FFW CORPORATION
                                                CONSOLIDATED STATEMENTS OF CASH FLOWS
                                                             (Unaudited)

                                                                        Three Months Ended                 Six Months Ended
                                                                            December 31                       December 31
                                                                 ------------------------------      ------------------------------
                                                                      1997              1996              1997              1996
                                                                 ------------      ------------      ------------      ------------
<S>                                                              <C>               <C>               <C>               <C>
Cash flows from operating activities:

   Net Income ..............................................     $    478,626      $    426,617      $    948,604      $    506,022
   Adjustments  to  reconcile  net  income  to  net  cash
       from  operating activities:
       Depreciation and amortization, net of accretion .....          (22,552)           14,360           (38,719)           58,809
       Provision for loan losses ...........................           65,000            15,000           265,000            35,000
       Net (gains) losses on sale of :
            Securities available for sale ..................             --                 514              --                 514
            Loans held for sale ............................          (35,463)          (20,461)          (57,372)          (34,140)
            Foreclosed estate owned and repossessed assets .            5,586            10,661             4,187             2,388
       Origination of loans held for sale ..................       (1,770,558)       (1,238,451)       (3,710,838)       (2,140,689)
       Proceeds from sale of loans held for sale ...........        1,806,021         1,536,412         3,768,210         2,445,768
       ESOP expenses .......................................           36,000            66,573            49,000            90,573
       Amortization of MRP contribution ....................             --               6,540              --              13,079
       Net change in accrued interest receivable ...........         (196,288)           22,895          (386,607)          (29,421)
       Amortization of goodwill and core deposit intangibles           41,119              --              82,237              --
       Net change in other assets ..........................         (179,330)         (451,802)         (392,699)         (676,983)
       Net change in accrued interest payable, accrued
            expenses and other liabilities .................        1,607,480         2,419,052          (714,741)          178,613
                                                                 ------------      ------------      ------------      ------------

                     Total adjustments .....................     $  1,357,015      $   (752,500)     $  2,001,451      $    (56,489)
                                                                 ------------      ------------      ------------      ------------

            Net cash from operating activities .............     $  1,835,641      $   (325,883)     $  2,950,055      $    449,533
</TABLE>
<PAGE>
<TABLE>
<CAPTION>

                                                           FFW CORPORATION
                                                CONSOLIDATED STATEMENTS OF CASH FLOWS
                                                             (Unaudited)
                                                             (continued)

                                                                        Three Months Ended                 Six Months Ended
                                                                            December 31                       December 31
                                                                 ------------------------------      ------------------------------
                                                                      1997              1996              1997              1996
                                                                 ------------      ------------      ------------      ------------
<S>                                                              <C>               <C>               <C>               <C>
Cash flows from investing activities:

       Net change in interest-bearing deposits in other
            financial institutions .........................             --              24,729              --             362,664
       Proceeds from :
            sales/calls of securities available for sale ...        3,000,000            75,000         8,000,000            75,000
            sales/calls of securities held-to-maturity .....             --                --                --                --
            maturities of securities available for sale ....          255,000            50,000           300,000           380,000
            maturities of securities held-to-maturity ......             --                --                --                --
       Purchase of :
            securities available for sale ..................          (50,347)          (50,104)      (15,106,469)         (596,589)
            Federal Home Loan Bank Stock ...................         (309,600)             --            (309,600)             --
       Principal collected on mortgage- backed securities ..          173,547           168,094           327,627           327,136
       Net change in loans receivable ......................       (8,523,480)       (4,249,764)      (14,328,678)       (6,766,074)
       Net purchases premises and equipment ................         (151,187)          (10,310)         (159,583)          (61,165)
       Investment in limited partnership ...................             --            (187,500)             --
       Proceeds from sales of other real estate and
            repossessed assets .............................           36,190            78,606           155,140           196,340
                                                                 ------------      ------------      ------------      ------------

                     Net cash from investing  activities ...     $ (5,569,877)     $ (3,913,749)     $(21,309,063)     $ (6,082,688)


</TABLE>
<PAGE>
<TABLE>
<CAPTION>
                                                           FFW CORPORATION
                                                CONSOLIDATED STATEMENTS OF CASH FLOWS
                                                             (Continued)


                                                                        Three Months Ended                    Six Months Ended
                                                                            December 31                        December 31
                                                                 ------------------------------      ------------------------------
                                                                      1997              1996              1997              1996
                                                                 ------------      ------------      ------------      ------------
<S>                                                              <C>               <C>               <C>               <C> 
Cash flows from financing activities :

            Net (decrease) increase in deposits ............        1,165,629        (1,779,066)          (12,786)        5,395,816
            Proceeds from short-term borrowings ............       32,975,956         9,500,000        43,475,956         9,500,000
            Payment on short-term borrowings ...............      (27,100,000)       (4,000,000)      (35,600,000)       (8,000,000)
            Purchase of Treasury Stock .....................             --                --                --            (176,625)
            Proceeds from exercising of stock options ......           66,940              --             103,070              --
            Cash dividends paid ............................         (129,877)         (105,309)         (258,549)         (210,618)
                                                                 ------------      ------------      ------------      ------------

                  Net cash from financing activities .......     $  6,978,648      $  3,615,625      $  7,707,691      $  6,508,573
                                                                                                                         

Net increase (decrease) in cash and cash equivalents .......     $  3,244,412      $   (624,007)     $(10,651,317)     $    875,418
Cash and cash equivalents at beginning of period ...........     $  3,224,885      $  4,287,632      $ 17,120,614      $  2,788,207
                                                                                                                         
Cash and cash equivalents at end of period .................     $  6,469,297      $  3,663,625      $  6,469,297      $  3,663,625
                                                                 ============      ============      ============      ============

Supplemental disclosure of cash flow information :

            Cash paid during quarter for:
                  Interest .................................     $  2,579,747      $  2,194,134      $  4,165,071      $  3,542,163
                  Income Taxes .............................     $    340,000      $    315,000      $    390,000      $    376,000

            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 December 31, 1997 and June 30,  1997,  and the results of its
operations,  changes in shareholders'  equity for the three and six months ended
December 31, 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 December 31, 1997.

         Operating  results for the three and six months ended December 31, 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
         Basic  and  diluted  earnings  per  share  are  computed  under  a  new
accounting  standard effective in the quarter ended December 31, 1997. All prior
amounts have been restated to be  comparable.  Basic earnings per share is based
on net income (less preferred  dividends) divided by the weighted average number
of shares  outstanding  during the period.  Diluted earnings per share shows the
dilutive  effect of additional  common shares  issuable under stock options (and
convertible securities).

         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, 169,000 shares of the Company's Common Stock are reserved for issuance, of
which the Company  has granted  options on 152,884  shares.  As of December  31,
1997,  66,738   exercisable   options  of  the  Company's  Common  Stock  remain
un-exercised.
<PAGE>
         All share and per share  data  have  been  adjusted  to  reflect a 100%
common stock dividend declared December 15, 1997 and paid December 31, 1997.
<TABLE>
<CAPTION>


                                                                      Three Months Ended            Six Months Ended
                                                                         December 31,                  December 31,
 
                                                                     1997           1996           1997           1996
                                                                 ----------     ----------     ----------     ----------
<S>                                                              <C>            <C>            <C>            <C>
Earnings Per Share
     Net Income ............................................     $  478,625     $  426,617     $  948,604     $  506,022
     Weighted average common shares outstanding ............      1,394,785      1,344,058      1,388,329      1,346,620
          Basic Earnings Per Share .........................     $      .34     $      .32     $      .68     $      .38

Earnings Per Share Assuming Dilution
     Net Income ............................................     $  478,625     $  426,617     $  948,604     $  506,022
     Weighted average common shares outstanding ............      1,394,785      1,344,058      1,388,329      1,346,620
     Add: dilutive effects of assumed exercises
          Incentive stock options ..........................         26,447         31,501         49,877         60,879
                                                                 ----------     ----------     ----------     ----------
     Weighted average and dilutive common shares outstanding      1,421,232      1,375,559      1,438,206      1,407,499
          Diluted Earnings Per  Share ......................     $      .34     $      .31     $      .66     $      .36

</TABLE>
(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 December
31,  1997,  the capital  requirements  for the Bank under  FIRREA and its actual
capital  ratios.  As of December 31, 1997, the Bank  substantially  exceeded all
current regulatory capital standards.
<TABLE>
<CAPTION>
                                         Regulatory                   Actual
                                    Capital Requirement        Capital(Bank Only)
                                   Amount      Percent       Amount       Percent
                                   ------      -------       ------       -------
                                             (Dollars in Thousands)
<S>                               <C>           <C>          <C>          <C>
Risk-Based ................       $ 8,818       8.00%        $13,281      12.05%

Core Capital ..............       $ 5,594       3.00%        $12,580       6.75%

Tangible Capital ..........       $ 2,797       1.50%        $12,580       6.75%

</TABLE>

(4) Common Stock Cash Dividends
         On  November  28,  1997,  the Board of  Directors  of FFW  Corporation,
declared a quarterly  cash  dividend of $.15 per share.  The  dividend  was paid
December 31, 1997 to shareholders of record on December 15, 1997. The payment of
the cash dividend reduced shareholders' equity by $129,877.


<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  level of its  non-interest  expenses,  such as  employee  compensation  and
benefits,  occupancy  expenses,  and other  expenses also affects the Bank's net
income.

Forward-Looking Statements

         When used in this Form 10-QSB and in future filings by the Company with
the  Securities  and Exchange  Commission  (the "SEC"),  in the Company's  press
releases or other public or shareholder  communications,  and in oral statements
made with the approval of an authorized  executive officer, the words or phrases
"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 1995.  Such  statements  are  subject  to  risks  and
uncertainties,  including  but not limited to changes in economic  conditions in
the  Company's  market  area,  changes  in  policies  by  regulatory   agencies,
fluctuations  in interest rates,  demand for loans in the Company's  market area
and  competition,  all or some of which  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 and
are subject to the above-stated  qualifications in any event. The Company wishes
to advise  readers  that the factors  listed  above 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 $9.3 million, or 5.1%, from $182.0
million at  September  30, 1997 to $191.3  million at December  31,  1997.  This
increase  was due  primarily  to an  increase  in net  loan  receivable  of $8.5
million.  The  growth  in  loan  receivables  was  funded  with an  increase  of
borrowings  from FHLB of $5.9  million,  an increase in deposits of $1.2 million
and a decrease in securities available for sale of $3.1 million. Loan demand and
liquidity  needs may result in additional  borrowing if deposits and loan growth
remain at current levels.
<PAGE>
         Total securities  available-for-sale  decreased $3.1 million from $50.5
million at  September  30,  1997 to $47.3  million at  December  31,  1997.  The
decrease was primarily the result of calls on 2 government agency bonds totaling
$3.0 million. The  available-for-sale  portfolio consists primarily of municipal
securities, government agencies and mortgage backed securities.

         Net loan  receivables  increased  $8.5  million,  or 7.1%,  from $119.8
million at  September  30, 1997 to $128.2  million at  December  31,  1997.  The
increase in the loan portfolio  resulted  primarily from an increase in mortgage
loans  of $3.0  million  and  non-mortgage  loans of $5.0  million.  Management,
consistent  with its  asset/liability  objectives,  will  continue to sell newly
originated  fixed-rate  mortgage loans with terms to maturity of greater than 15
years.

         Total  deposits  increased  $1.2 million or 1.0% from $114.9 million at
September  30, 1997 to $116.1  million at December 31, 1997.  This  increase was
primarily  the result of interest  posted to accounts at the end of the quarter.
For the quarter  ended  December  31, 1997,  passbook  accounts  decreased  $1.3
million,  or 3.0%, and  certificates of deposit  increased $2.2 million or 3.8%.
Management  believes  that deposit  growth may be difficult to maintain at prior
years levels as deposit customers look for alternative investment  opportunities
with higher yields.

         Total  borrowed  funds  increased  $5.9 million  from $46.8  million at
September 30, 1997 to $52.7 million at December 31, 1997. The increase consisted
of new borrowings from the Federal Home Loan Bank of Indianapolis.

         Total  shareholders'  equity  increased  $469,200 from $17.1 million at
September 30, 1997 to $17.6  million at December 31, 1997.  The increase was due
to the  quarterly  net income of $478,600  and the  unrealized  appreciation  of
securities held for sale, net of tax, of $122,400, which was partially offset by
the quarterly payment of dividends of $129,900.

Results of Operations - Comparison of the Three and Six Months Ended 
                        December 31, 1997 and December 31, 1996

         General Net income  increased by $52,000 and $442,600 for the three and
six months ended  December 31, 1997  respectively,  as compared to the three and
six months  ended  December  31,  1996.  The increase for the three months ended
December 31, 1997 was primarily the result of increases in net interest  income.
The increase for six months ended  December 31, 1997 was primarily the result of
decreased SAIF premiums of $626,400. All of these items are discussed in greater
detail below.

         Net Interest Income Net interest income increased $52,000,  or 12.2% to
$478,600  from  $426,600  for the  quarter  ended  December  31,  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.

         Interest Income Interest income increased  $554,000 and $1.1 million to
$3.6 million and $7.1  million for the three and six months  ended  December 31,
1997  respectively,  as compared to the three and six months ended  December 31,
1996.  The  increases  in  interest  income for the three and six  months  ended
December  31,  1997  were due to  continued  growth in  interest-earning  assets
including  mortgage  loans,  commercial and consumer loans and  investments,  as
compared  to  the  same  periods  ended  December  31,  1996.   These  increased
interest-earning  assets are the result of competitive pricing,  marketing,  and
the repricing of adjustable-rate loans and mortgage-backed securities.
<PAGE>
         Interest Expense Interest  expense  increased  $307,000 and $610,000 to
$2.1 million and $4.2  million for the three and six months  ended  December 31,
1997  respectively,  as compared to the three and six months ended  December 31,
1996. The increase in interest  expense was due to an increase in borrowed funds
and deposits  outstanding  as compared to the same periods in 1996.  If interest
rates remain at or near current levels, management anticipates the rate of shift
to certificates from passbook  accounts will decrease as the difference  between
rates paid on new certificates and passbooks contracts.

         Provision  for Loan  Losses The  provision  for loan  losses  increased
$50,000  and  $230,000  for the three and six months  ended  December  31,  1997
respectively,  as compared to the three and six months ended  December 31, 1996.
The loan loss  provisions are based on  management's  quarterly  analysis of the
allowance for loan losses.  The  provisions  for the three and six month periods
reflect the growth in the balances of non-mortgage  loans and to a lesser extent
the  increase  in  mortgage  loans.  The  company  will  continue to monitor its
allowance for loan losses and make future additions to the allowance through the
provision  for loan  losses  as  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,  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  $92,000  and
$167,000 to $252,000 and  $486,000  for the three and six months ended  December
31, 1997  respectively,  as compared to the three and six months ended  December
31, 1996. The increases were,  primarily,  attributed to increased fee and other
income of $85,000 and $154,000  for the three and six months ended  December 31,
1997, as compared to 1996. Gain on sale of loans increased by $7,000 and $13,000
for the three and six months  ended  December  31,  1997,  as  compared to 1996.
Management believes that with the decline of interest rates, we will continue to
see an increase in sales of loans to Freddie Mac for the  remainder  of the year
as  compared  to last year.  This should  result in  increased  gain on sales of
loans.

         Non-Interest   Expense   Non-interest  expense  increased  $189,000  to
$930,000 for the three months ended  December 31, 1997, as compared to the three
months ended December 31, 1996. The increase for the three months ended December
31, 1997, was due to increased  staffing,  and the  amortization of goodwill for
our new branch in South Whitley, which was purchased from NBD Bank.

          Non-interest  expense  decreased  $159,000 to $1.8 million for the six
months ended December 31, 1997, as compared to the six months ended December 31,
1996.  This  decrease was primarily due to the reduction in the SAIF premiums of
$627,000 in 1997  compared to 1996.  This  decrease  was  partially  offset with
higher  staffing  cost and  goodwill  amortization  of our new  branch  in South
Whitley.

         Income Tax Expense Income tax expense increased $48,000 and $177,000 to
$248,000  and  $346,000  for the three and six months  ended  December  31, 1997
respectively,  as compared to the three and six months ended  December 31, 1996.
The  increase  was due to an  increase  in taxable  income for the three and six
months  ended  December  31,  1997,  and the tax  effect  of the one  time  SAIF
assessment, which lowered taxes, for the three and six months ended December 31,
1996.
<PAGE>
         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
ability to repay the loan and the Company's past statistical  history concerning
charge-offs.  The  Company's  allowance for loan losses as of December 31, 1997,
was $723,000 or 0.6% of total loans.  The September 30, 1997  allowance for loan
losses  was  $726,000,  or  0.6% of  total  loans.  Total  loans  classified  as
substandard,  doubtful or loss as of December 31, 1997 were $1.4 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>
                                                          12/31/97       09/30/97
                                                          --------       --------
                                                           (Dollars in Thousands)
<S>                                                          <C>           <C>
Non-Accruing Loans .................................         $428          $290
Accruing Loans Delinquent 90 days or more ..........          --            --
Troubled Debt Restructurings .......................          --            --
Foreclosed Assets ..................................          173            44
                                                             ----          ----

Total Non-Performing Assets ........................         $601          $334
                                                             ====          ====
Total Non-Performing Assets as a
         Percentage of Total Assets ................          .31%          .18%
</TABLE>

         Total  non-performing  assets  increased to $601,000,  or .31% of total
assets at December  31,  1997,  compared to $334,000 or .18% of total  assets at
September  30,  1997.  The  increase of $267,000  in  non-performing  assets was
primarily  due to a greater  number of auto loans being  repossessed  and put on
non-accrual status.  Management believes these increased numbers are a result of
the overall  increase in auto and consumer  lending  over the last year,  and as
such, we have increased our loan loss allowance accordingly.

         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 banking and
thrift industries.  Current Office of Thrift Supervision regulations require the
Bank to maintain  cash and eligible  investments  in an amount equal to at least
4.0% of customer  accounts and  short-term  borrowings  to assure its ability to
meet demands for  withdrawals  and  repayment of  short-term  borrowings.  As of
December  31,  1997,  the Bank's  liquidity  ratio of 8.32%  exceeds the minimum
regulatory requirements.
<PAGE>
         The Company uses its capital resources  principally to meet its ongoing
commitments  to  fund  maturing  certificates  of  deposits,  loan  commitments,
maintain  liquidity  and meet  operating  expenses.  At December 31,  1997,  the
Company has  commitments to originate  loans totaling $2.0 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  December  31,  1997,  the  Bank  exceeded  all  fully  phased-in
regulatory capital standards.

         At December 31, 1997, the Bank's tangible capital was $12.6 million, or
6.8% of adjusted  total assets,  which is in excess of the 1.5%  requirement  by
$9.8 million.  In addition,  at December 31, 1997,  the Bank had core capital of
$12.6  million,  or 6.8% of  adjusted  total  assets,  which  exceeds  the  3.0%
requirement by $7.0 million. The Bank had risk-based capital of $12.2 million at
December  31, 1997,  or 12.1% of  risk-adjusted  assets  which  exceeds the 8.0%
risk-based capital requirements by $4.5 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  was July 1, 1996. 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  December  31,  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  -  Other Information

         Not Applicable

Item 5  -  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 December 31, 1997.

               (i)  A Form 8-K was filed on  November  30, 1997  announcing  the
                    quarterly earnings for the quarter ended September 30, 1997.

               (ii) A Form 8-K was filed on November 30, 1997  announcing that a
                    quarterly  dividend  was  declared  on  September  4,  1997,
                    payable September 30, 1997.

               (iii)A Form 8-K was filed on November 28, 1997  announcing that a
                    quarterly  cash  dividend  and a  100%  stock  dividend  was
                    declared on November 26, 1997, payable December 31, 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




Date:    February 13, 1998                   By:   /S/Nicholas M. George
                                                   ----------------------
                                                   Nicholas M. George
                                                   President and Chief
                                                   Executive Officer




Date:   February  13, 1998                   By:  /S/Charles E. Redman
                                                  --------------------
                                                  Charles E. Redman
                                                  Treasurer and Chief Financial
                                                  Accounting Officer