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 March 31, 1998
                                       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 [ X ]    No [   ]

           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 May 12, 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 March 31, 1998       
                  and June 30, 1997

                  Consolidated Condensed Statements of Income for the        
                  three months ended March 31, 1998 and 1997 and the
                  nine months ended March 31, 1998 and 1997.

                  Consolidated Statements of Shareholders' Equity for the    
                  three months ended March 31, 1998 and 1997 and the
                  nine months ended March 31, 1998 and 1997.

                  Consolidated Statements of Cash Flows for the three        
                  months ended March 31, 1998 and 1997 and the nine
                  months ended March 31, 1998 and 1997.

                  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 :                                                                                March 31         June 30
                                                                                     ------------     ------------    
                                                                                          1998             1997
                                                                                     ------------     ------------
<S>                                                                                  <C>              <C> 
         Cash and due from financial institutions ..............................     $  1,433,023     $  1,620,716
         Interest-earning deposits in financial institutions - short term ......        7,867,907       15,499,898
                                                                                     ------------     ------------
                  Cash and cash equivalents ....................................     $  9,300,930     $ 17,120,614
         Interest-earning deposits in financial institutions
                  (cost approximates market value) .............................             --               --
         Securities available for sale .........................................       48,091,974       40,449,698
         Loans held for sale, net of unrealized gains and losses ...............             --               --
         Loans receivable, net of allowance for loan losses of $754,889 in March
                  and $571,751 in June .........................................      132,192,918      114,158,745
         Stock in Federal Home Loan Bank, at cost ..............................        2,707,200        2,397,600
         Accrued interest receivable ...........................................        1,297,910        1,123,623
         Premises and Equipment-net ............................................        2,101,831        1,926,910
              Investment in limited partnership ................................          749,952          749,952
         Other assets ..........................................................        2,269,200        2,128,339
                                                                                     ------------     ------------
                           Total Assets ........................................     $198,711,915     $180,055,481
                                                                                     ============     ============
LIABILITIES AND SHAREHOLDERS' EQUITY:

Liabilities:
         Non-interest-bearing demand deposits ..................................     $  6,687,285     $  5,751,478
         Savings, Now and MMDA deposits ........................................       50,779,634       50,529,826
         Other time deposits ...................................................       66,558,031       59,837,170
                                                                                     ------------     ------------
                  Total Deposits ...............................................     $124,024,950     $116,118,474

         Federal Home Loan Bank advances .......................................       52,000,000       44,800,000
              Obligation relative to limited partnership .......................          525,000          712,500
         Accrued Interest Payable ..............................................          749,957          157,521

         Accrued expenses and other liabilities ...............................         2,367,731         1,125,700
                                                                                    -------------     -------------
                  Total Liabilities ...........................................     $ 179,667,638     $ 162,914,195
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
                                           PART I: FINANCIAL INFORMATION
                                                  FFW CORPORATION
                                            CONSOLIDATED BALANCE SHEETS
                                                    (continued0

                                                                                      (Unaudited)
                                                                                       March 31         June 30
                                                                                     ------------     ------------ 
                                                                                          1998             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; ,766,596
                  shares  issued and outstanding at March 31, 1998; 1,449,532                         
                  1,739,532 shares issued and 1,422,468 shares outstanding 
                  at June 30, 1997 ............................................             8,865              8,698
         Additional paid-in capital ...........................................         8,659,718          8,439,565
         Retained earnings - substantially restricted .........................        12,176,589         11,119,378
          Net unrealized depreciation on securities available for sale, net
                  of tax  liability  of $744,648 on March 31, 1998 and a tax
                  benefit of $69,436 on June 30, 1997 .........................         1,082,039            502,183
         Unearned Employee stock Ownership Plan shares ........................          (198,949)          (244,553)
         Treasury Stock at Cost, 317,064 common shares at cost,
                  at March 31, 1998 and June 30, 1997, respectively ...........        (2,683,985)        (2,683,985)
                                                                                    -------------      ------------- 
                  Total Shareholders' equity ..................................        19,044,277         17,141,286

                           Total Liabilities and Shareholders' Equity .........     $ 198,711,915      $ 180,055,481
                                                                                    ============       =============  
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
                                                PART I: FINANCIAL INFORMATION
                                                       FFW CORPORATION
                                              CONSOLIDATED STATEMENTS OF INCOME
                                                         (Unaudited)

                                                                     Three Months Ended              Nine Months Ended 
                                                                          March 31                       March 31
                                                                ---------------------------     ---------------------------
                                                                     1998           1997            1998             1997
                                                                -----------     -----------     -----------     -----------
<S>                                                             <C>             <C>             <C>             <C>
Interest Income:

         Loans Receivable
                  Mortgage loans ..........................     $ 1,616,624     $ 1,500,690     $ 4,798,453     $ 4,424,597
                  Consumer and other loans ................       1,211,994         824,477       3,303,334       2,355,419
         Securities
                  Taxable .................................         718,427         622,025       2,247,948       1,840,360
                 Nontaxable ...............................         101,516         110,822         310,022         347,740
         Other Interest-earning assets ....................          57,020          17,277         130,170          58,729
                                                                -----------     -----------     -----------     -----------
                  Total Interest Income ...................     $ 3,705,581     $ 3,075,291     $10,789,927     $ 9,026,845

Interest Expense :

         Deposits .........................................       1,406,650       1,193,419       4,158,793       3,564,101
         Other ............................................         772,466         605,590       2,191,455       1,795,687
                                                                -----------     -----------     -----------     -----------
                  Total Interest Expense ..................     $ 2,179,116     $ 1,799,009     $ 6,350,248     $ 5,359,788

Net Interest Income .......................................       1,526,465       1,276,282       4,439,679       3,667,057

         Provision for Loan Losses ........................         100,000          35,000         365,000          70,000
                                                                -----------     -----------     -----------     -----------

Net interest income after provision for loan losses .......       1,426,465       1,241,282       4,074,679       3,597,057

Non-interest income :

         Net gain on sale of interest-earning assets ......          28,545           7,225          71,094          37,451
         Net unrealized gain or loss on loans held for sale            --              --              --              --
         Other ............................................         236,960         149,705         680,406         438,015
                                                                -----------     -----------     -----------     -----------
                  Total Non-Interest Income ...............     $   265,505     $   156,930     $   751,500     $   475,466

Non-Interest Expense :

         Compensation and Benefits ........................         467,161         356,472       1,369,579       1,040,752
         Occupancy and equipment ..........................          77,463          63,519         239,148         200,502
         SAIF deposit insurance premiums ..................          26,961          15,925          84,117         699,464
         Other ............................................         364,828         293,985       1,083,196         788,125
                                                                -----------     -----------     -----------     -----------
                  Total Non-Interest Expense ..............     $   936,413     $   729,901     $ 2,776,040     $ 2,728,843
                                                                -----------     -----------     -----------     -----------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
                                               PART I: FINANCIAL INFORMATION
                                                       FFW CORPORATION
                                              CONSOLIDATED STATEMENTS OF INCOME
                                                         (Unaudited)
                                                         (continued)




                                                                     Three Months Ended              Nine Months Ended 
                                                                          March 31                       March 31
                                                                ---------------------------     ---------------------------
                                                                     1998           1997            1998             1997
                                                                -----------     -----------     -----------     -----------
<S>                                                             <C>             <C>             <C>             <C>
Income before income taxes ................................         755,557         668,311       2,050,139       1,343,680

         Income Tax Expense ...............................         257,942         221,331         603,920         390,678
                                                                -----------     -----------     -----------     -----------

Net Income ................................................     $   497,615     $   446,980     $ 1,446,219     $   953,002
                                                                ===========     ===========     ===========     ===========

Earnings per common and common equivalent shares :

         Basic ............................................     $      0.35     $      0.34     $     1.04      $      0.71
         Diluted ..........................................     $      0.35     $      0.33     $     1.03      $      0.68
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
                                                   PART I: FINANCIAL INFORMATION
                                                          FFW CORPORATION
                                          CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
                                                            (Unaudited)

                                                                    Three Months Ended                   Nine Months Ended
                                                                         March 31                             March 31
                                                              ------------------------------      ------------------------------
                                                                   1998              1997              1998              1997
                                                              ------------      ------------      ------------      ------------
<S>                                                           <C>               <C>               <C>               <C>
Beginning Balance .......................................     $ 18,184,624      $ 16,116,609      $ 17,141,286      $ 15,458,143

Common Stock at .01 Par Value 2,000,000 shares
         authorized  issued  and
         outstanding March 31, 1998 - 1,766,596;
         March 31, 1997 - 1,711,084 .....................               65                20               168                20

Additional Paid-in Capital ..............................           68,185            45,480           220,152            93,480

Treasury Stock at Cost - -0- and 7,000  shares for
          the  three-month  periods and
         -0- and 16,000 shares for the nine-month periods
         ended 1998 and 1997 ............................             --            (153,125)             --            (329,750)


Cash Dividends of:
         $.09 and $.075 per share for the three-month
         periods and $ .27 and $ .225 per share for the
         nine-month periods ended 1998 and 1997 .........         (130,458)         (104,552)         (389,007)         (315,170)

Amortization of ESOP Contribution .......................           45,603              --              45,603            42,574

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

Net change in unrealized depreciation on equity
         securities available for sale ..................          378,643          (497,137)          579,856           (61,103)

Net Income for Period(s) ................................          497,615           446,980         1,446,219           953,002
                                                              ------------      ------------      ------------      ------------

Ending Balance ..........................................     $ 19,044,277      $ 15,854,275      $ 19,044,277      $ 15,854,275
                                                              ============      ============      ============      ============
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
                                                    PART I: FINANCIAL INFORMATION
                                                           FFW CORPORATION
                                                CONSOLIDATED STATEMENTS OF CASH FLOWS
                                                             (Unaudited)
                                                                       Three Months Ended                   Nine Months Ended
                                                                            March 31                             March 31
                                                                 ------------------------------      ------------------------------
                                                                     1998              1997              1998              1997
                                                                 ------------      ------------      ------------      ------------
<S>                                                              <C>               <C>               <C>               <C>
Cash flows from operating activities :

Net Income .................................................     $    497,615      $    446,980      $  1,446,219      $    953,002
Adjustments to reconcile net income to net cash
     from operating activities :

    Depreciation and amortization, net of accretion ........          (21,042)           14,169           (59,761)           72,978
    Provision for loan losses ..............................          100,000            35,000           365,000            70,000
    Net (gains) losses on sale of :
         Securities available for sale .....................             --                 850              --               1,364
             Loans held for sale ...........................          (33,407)          (10,840)          (90,779)          (44,980)
      Foreclosed estate owned and repossessed assets .......             (412)           (2,146)            3,775               242
    Origination of loans held for sale .....................       (2,714,407)         (556,725)       (6,425,245)       (2,697,414)
    Proceeds from sale of loans held for sale ..............        2,747,814           721,265         6,516,024         3,167,033
    ESOP expenses ..........................................           81,603            26,000           130,603           116,573
    Amortization of MRP contribution .......................             --                --                --              13,079
    Net change in accrued interest receivable ..............          212,320            (6,260)         (174,287)          (35,681)
    Amortization of goodwill and core deposit intangibles ..           41,119              --             123,356              --
    Net change in other assets .............................         (189,439)          360,691          (582,138)         (316,292)
    Net change in accrued interest payable, accrued
         expenses and other liabilities ....................         (923,846)          252,570         1,495,206           431,183
                                                                  ------------     ------------      ------------      ------------
                   Total adjustments ........................    $   (699,697)     $    834,574      $  1,301,754      $    778,085
                                                                 ------------      ------------      ------------      ------------
         Net cash from operating activities ................     $   (202,082)     $  1,281,554      $  2,747,973      $  1,731,087

Cash flows from investing activities :

    Net change in interest-bearing deposits in other
         financial institutions ............................             --                --                --             362,664
    Proceeds from :
         sales/calls of securities available for sale ......        7,000,000           300,000        15,000,000           375,000
        sales/calls of securities held-to-maturity .........             --                --                --                --
         maturities of securities available for sale .......           40,000           195,000           340,000           575,000
         maturities of securities held-to-maturity .........             --                --                --                --
    Purchase of :
         securities available for sale .....................       (7,273,075)          (45,908)      (22,379,544)         (642,497)
         Federal Home Loan Bank Stock ......................             --                --            (309,600)             --
    Principal collected on mortgage- backed securities .....          163,380           128,844           491,007           455,980
     Net change in loans receivable ........................       (4,070,495)       (2,626,276)      (18,399,173)       (9,392,350)
    Net purchases premises and equipment ...................         (148,197)          (62,183)         (307,780)         (123,348)
    Investment in limited partnership ......................             --                --            (187,500)             --
    Proceeds from sales of other real estate and
         repossessed assets ................................          177,004            56,671           332,144           253,011
                                                                 ------------      ------------      ------------      ------------
                  Net cash from investing activities .......     $ (4,111,383)     $ (2,053,852)     $(25,420,446)     $ (8,136,540)

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


                                                                     Three Months Ended                 Nine Months Ended
                                                                          March 31                           March 31
                                                               ------------------------------      ------------------------------
                                                                   1998              1997              1998               1997
                                                               ------------      ------------      ------------      ------------
<S>                                                            <C>               <C>               <C>               <C>  
Cash flows from financing activities :

            Net increase in deposits .....................        7,919,262           325,468         7,906,476         5,721,284
            Proceeds from short-term borrowings ..........        2,500,000         6,925,468        45,975,956        16,425,468
            Payment on short-term borrowings .............       (3,175,956)       (7,000,000)      (38,775,956)      (15,000,000)
            Purchase of Treasury Stock ...................             --            (153,125)             --            (329,750)
            Proceeds from exercising of stock options ....           32,250            19,500           135,320            19,500
            Cash dividends paid ..........................         (130,458)         (104,552)         (389,007)         (315,170)
                                                               ------------      ------------      ------------      ------------
                  Net cash from financing activities .....     $  7,145,098      $     12,759      $ 14,852,789      $  6,521,332

Net increase (decrease) in cash and cash equivalents .....     $  2,831,633      $   (759,539)     $ (7,819,684)     $    115,879
Cash and cash equivalents at beginning of period .........     $  6,469,297      $  3,663,625      $ 17,120,614      $  2,788,207

Cash and cash equivalents at end of period ...............     $  9,300,930      $  2,904,086      $  9,300,930      $  2,904,086
                                                               ============      ============      ============      ============

Supplemental disclosure of cash flow information :

            Cash paid during quarter for:
                  Interest ...............................     $  1,602,669      $  1,416,813      $  5,767,740      $  4,958,976
                  Income Taxes ...........................     $    255,000      $     50,000      $    645,000      $    426,000

            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 March 31,  1998 and June 30,  1997,  and the  results  of its
operations,  changes in shareholders' equity for the three and nine months ended
March 31, 1998 and 1997.  Financial Statement  reclassifications  have been made
for the prior period to conform to classifications used as of and for the period
ended March 31, 1998.

         Operating  results for the three and nine  months  ended March 31, 1998
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 March 31, 1998,
options on 60,288 shares of the Company's Common Stock remain unexercised.
<PAGE>
         All share and per share  data  have  been  adjusted  to  reflect a 100%
common stock dividend declared December 15, 1998 and paid December 31, 1998.
<TABLE>
<CAPTION>
                                                                    Three Months Ended             Nine Months Ended
                                                                         March 31,                      March 31,
                                                                 -------------------------     -------------------------
                                                                    1998           1997           1998           1997
                                                                 ----------     ----------     ----------     ----------
<S>                                                              <C>            <C>            <C>            <C>
Earnings Per Share
     Net Income ............................................     $  497,615     $  446,980     $1,446,219     $  953,002
     Weighted average common shares outstanding ............      1,405,931      1,332,333      1,394,111      1,341,927
          Basic Earnings Per Share .........................     $     0.35     $     0.34     $     1.04     $     0.71
Earnings Per Share Assuming Dilution
     Net Income ............................................     $  497,615     $  446,980     $1,446,219     $  953,002
     Weighted average common shares outstanding ............      1,405,931      1,332,333      1,394,111      1,341,927
     Add: dilutive effects of assumed exercises
          Incentive stock options ..........................         16,743         22,714         47,216         62,174
                                                                 ----------     ----------     ----------     ----------
     Weighted average and dilutive common shares outstanding      1,422,674      1,355,147      1,441,327      1,404,101
          Diluted Earnings Per  Share ......................     $    0 .35     $     0.33     $     1.03     $     0.68
</TABLE>
(3)  Regulatory Capital Requirements

         Pursuant to the Financial Institution Reform, Recovery, and Enforcement
Act of 1989 ("FIRREA"),  savings  institutions  must meet three separate minimum
capital-to-asset  requirements.  The following table summarizes, as of March 31,
1998, the capital  requirements for the Bank under FIRREA and its actual capital
ratios.  As of March 31,  1998,  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 ................       $ 9,260     8.00%      $13,898      12.01%
Core Capital ..............       $ 5,801     3.00%      $13,177       6.81%
Tangible Capital ..........       $ 2,901     1.50%      $13,177       6.81%
</TABLE>



 (4)  Common Stock Cash Dividends

On February 24, 1998,  the Board of  Directors  of FFW  Corporation,  declared a
quarterly cash dividend of $0.09 per share. The dividend was paid March 31, 1998
to  shareholders  of record on March 15, 1998.  The payment of the cash dividend
reduced shareholders' equity by $130,458.
<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 1998.  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 $7.4 million, or 3.9%, from $191.3
million at December 31, 1997 to $198.7 million at March 31, 1998.  This increase
was due primarily to funds generated by an increase in deposits of $7.9 million.
Net loans receivables  increased $4.0 million and securities  available-for-sale
increased  $745,000.  All of which  contributed  to an increase in cash and cash
equivalents  of $2.8  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  $745,000  from  $47.3
million at December 31, 1997 to $48.1  million at March 31,  1998.  This was due
primarily to the increased market value of the securities  portfolio as of March
31,  1998.  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  $4.0  million,  or 3.1%  from  $128.2
million at December 31, 1997 to $132.2  million at March 31, 1998.  The increase
in the loan portfolio for the quarter resulted,  primarily,  from an increase in
non-mortgage  loans  of  $4.1  million  due  to an  increase  in  origination's.
Management,  consistent with its  asset/liability  objectives,  will continue to
sell newly originated  fixed-rate  mortgage loans with terms to maturity greater
than 15 years.

         Total  deposits  increased  $7.9 million or 6.8% from $116.1 million at
December  31, 1997 to $124.0  million at March 31, 1998.  For the quarter  ended
March 31, 1998,  Savings,  Now, DDA and MMDA accounts  increased $1.7 million or
3.0% while certificates of deposit increased $6.2 million or 10.3%. Certificates
of deposit  increase was due primarily to several  deposits by local  government
agencies of public funds.

         Total borrowed funds decreased  $676,000 from $52.7 million at December
31, 1997 to $52.0 million at March 31, 1998.  The decrease  consisted of payment
on short term advances from the Federal Home Loan Bank of Indianapolis.

         Total  shareholders'  equity  increased  $860,000 from $18.2 million at
December  31, 1997 to $19.09  million at March 31, 1998.  The increase  resulted
from quarterly net income of $498,000, the unrealized appreciation of securities
held for sale, net of tax, of $379,000, proceeds from the exercise of options of
$32,000 and the reduction of unearned  ESOP shares of $45,000,  which was offset
by the quarterly dividend payment of $130,000.

         Results of  Operations - Comparison  of the Three and Nine Months Ended
March 31, 1998 and March 31, 1997

         General. Net income increased by $51,000 and $493,000 for the three and
nine months ended March 31, 1998 respectively, as compared to the three and nine
months ended March 31,  1997.  The increase for the three months ended March 31,
1998 was primarily the result of increases in net interest income.  The increase
for the nine months ended was primarily the result of decreased SAIF premiums of
$615,300. All of these items are discussed in greater detail below.

         Net Interest Income.  Net interest income  increased  $250,000 or 19.6%
and  $773,000  or 21.1% for the three and nine  months  ended March 31, 1998 and
1997  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 spreads earned.

         Interest Income. Interest income increased $630,000 and $1.8 million to
$3.7  million and $10.9  million  for the three and nine months  ended March 31,
1998  respectively,  as compared  to the three and nine  months  ended March 31,
1997. The increases in interest income for the three and nine months ended March
31,  1998 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 March 31, 1997. 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  $380,000 and $990,000 to
$2.2 million and $6.4 million for the three and nine months ended March 31, 1998
respectively, as compared to the three and nine months ended March 31, 1997. For
the three months ended March 31, 1998, the increase in interest  expense was due
to an increase in deposits  outstanding as compared to the same periods in 1997.
Interest rates, continue to hold relatively steady, however, it is very probable
that the  Federal  Reserve  will  increase  rates in the  future.  Like any rate
increase  this would impact our cost of funds , but we should see some  increase
in the yield of our interest earning assets.

         Provision  for Loan Losses.  The  provision  for loan losses  increased
$65,000  and  $295,000  for the  three and nine  months  ended  March 31,  1998,
respectively  as compared to the three and nine months ended March 31, 1997. The
loan  loss  provisions  are  based on  management's  quarterly  analysis  of the
allowance for loan losses.  The  provisions for the three and nine month periods
reflect the growth in the non-mortgage  loans 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 $109,000 and
$276,000 to $266,000  and $752,000 for the three and nine months ended March 31,
1998  respectively,  as compared  to the three and nine  months  ended March 31,
1997.  The increase was  primarily the result of increased fee income of $87,000
and $242,000 for the three and nine months ended March 31, 1998 respectively, as
compared to the three and nine months  ended  March 31,  1997.  Gain on sales of
loans to the  Federal  Home Loan  Mortgage  Corporation  increased  $21,000  and
$34,000  for the three  and nine  months  ended  March  31,  1998  respectively.
Management  believes that with the current level of interest rates we will see a
continued  increase  in the  gain on  sales  of  loans  to  Freddie  Mac for the
remainder of the year as compared to earlier in the year.

         Non-Interest  Expense.   Non-interest  expense  increased  $207,000  to
$936,000 for the three  months  ended March 31,  1998,  as compared to the three
months ended March 31,  1997.  The increase for the three months ended March 31,
1998, was due to increased  staffing,  and the  amortization of goodwill for our
branch in South Whitley.

         Non-interest  expense  increased  $47,000 to $2.8  million for the nine
months ended March 31, 1998  respectively,  as compared to the nine months ended
March 31, 1997.  The increase was primarily due to increased  staffing,  and the
amortization  of goodwill  for our branch in South  Whitley.  This  increase was
mostly offset by the reduction in the SAIF premiums of $615,000 in 1998 compared
to 1997.

         Income Tax Expense.  Income tax expense  increased $36,000 and $213,000
to $258,000  and  $604,000  for the three and nine  months  ended March 31, 1998
respectively, as compared to the three and nine months ended March 31, 1997. The
increase was due to an increase in taxable  income for the three and nine months
ended March 31, 1998.
<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 March 31, 1998, was
$755,000 or 0.6% of total loans. The December 31, 1997 allowance for loan losses
was $723,000,  or 0.6% of total loans.  Total assets  classified as substandard,
doubtful or loss as of March 31, 1998 were $1.2 million or 0.6% 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.  Nonperforming  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>
                                                          03/31/98      12/31/97
                                                          --------      --------
                                                          (Dollars in Thousands)
<S>                                                          <C>           <C>

Non-Accruing Loans .................................         $430          $428
Accruing Loans Delinquent 90 days or more ..........          --            --
Troubled Debt Restructurings .......................          --            --
Foreclosed Assets ..................................          234           173
                                                             ----          ----
Total Non-Performing Assets ........................         $664          $601
                                                             ====          ====
Total Non-Performing Assets as a
Percentage of Total Assets .........................         0.33%         0.31%

</TABLE>

         Total non-performing  assets increased $63,000 to $664,000, or 0.33% of
total  assets at March  31,  1998,  from  $601,000  or 0.31% of total  assets at
December 31, 1997.  The increase in  non-performing  and  foreclosed  assets was
primarily due to the foreclosure of a commercial property for $100,000.

         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 March 31,
1998,  the Bank's  liquidity  ratio of 16.10%,  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 it's  liquidity and meet  operating  expenses.  At March 31, 1998,  the
Company has  commitments to originate  loans totaling $3.4 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 March 31, 1998, the
Bank exceeded all fully phased-in regulatory capital standards.

         At March 31, 1998, the Bank's  tangible  capital was $13.2 million,  or
6.8% of adjusted  total assets,  which is in excess of the 1.5%  requirement  by
$10.3  million.  In addition,  at March 31,  1998,  the Bank had core capital of
$13.2  million,  or 6.8% of  adjusted  total  assets,  which  exceeds  the  3.0%
requirement by $7.4 million. The Bank had risk-based capital of $13.9 million at
March 31, 1998 or 12.0% of  risk-adjusted  assets  which  exceeds the 8.0% risk-
based capital requirements by $4.6 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.
<PAGE>

         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 March 31, 1998, 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 March 31, 1998.

                None filed
<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:   May 11, 1998                           /S/  Nicholas M. George
                                                    ------------------
                                                    Nicholas M. George
                                                    President and Chief 
                                                    Executive Officer




Date:   May 11, 1998                          /S/  Charles E. Redman
                                                   -----------------
                                                   Charles E. Redman
                                                   Treasurer and Chief Financial
                                                   Accounting Officer