FFD Financial Corporation Reports Net Earnings for the Quarter and Fiscal Year Ended June 30, 2009

• Press Release
• Source: FFD Financial Corporation
• On 2:09 pm EDT, Friday August 7, 2009

DOVER, Ohio, Aug. 7, 2009 (GLOBE NEWSWIRE) -- FFD Financial Corporation (Nasdaq:FFDF - News), parent company of First Federal Community Bank, Dover, Ohio, reported net earnings for the three months ended June 30, 2009, of $322,000, or diluted earnings per share of $.32, compared to the $241,000, or $.22, per diluted share, of net earnings reported for the comparable three-month period in 2008. The $81,000, or 33.6%, increase in net earnings resulted from an increase of $180,000, or 145.2%, in other income and a $178,000, or 70.9%, decrease in the provision for losses on loans, which were partially offset by a decrease of $164,000, or 9.7%, in net interest income and increases of $73,000, or 6.1%, in general, administrative and other expenses and $40,000, or 31.5%, in the provision for federal income taxes.

Related Quotes

Symbol	Price	Change
FFDF	15.40	0.00

{"s" : "ffdf","k" : "c10,l10,p20,t10","o" : "","j" : ""}

Net earnings for the fiscal year ended June 30, 2009, were $1.1 million, or diluted earnings per share of $1.02, compared to the $1.2 million, or $1.08 per diluted share, reported in fiscal 2008. The $113,000, or 9.7%, decrease in net earnings resulted from a decrease of $397,000, or 5.9%, in net interest income and an increase of $334,000, or 7.2%, in general, administrative and other expenses, which were partially offset by decreases of $414,000, or 48.3%, in the provision for losses on loans and $48,000, or 7.9%, in the provision for federal income taxes and an increase of $156,000, or 26.6%, in other income.

The increase in general, administrative and other expense was due primarily to increases in employee compensation and benefits, FDIC insurance premiums due to a special assessment and an increase in assessment rates, and other expenses as a result of growth in the Corporation's operations year over year. The increase in employee compensation and benefits was the result of growth in the number of employees year over year and slight increases in wage rates, which were partially offset by a decrease in bonus compensation. The decrease in net interest income was primarily due to yields on interest earning assets declining at a faster rate than the costs of new and repricing deposits, and the cost of carrying excess liquidity. Outstanding borrowings at June 30, 2009, decreased over 2008 fiscal year-end totals. Borrowing costs, however, were flat period to period due to an increase in the average balance outstanding, which was partially offset by a decrease in the average cost of borrowings. The increase in the average balance outstanding period to period was due to additional Federal Home Loan Bank advances to help finance increased loan production at the beginning of the fiscal year and a draw on a credit line used to repurchase a large block of our shares. The $156,000 increase in other income resulted from a $299,000 increase in gain on sale of mortgage loans from a strengthening in the residential mortgage market, which was partially offset by a $170,000 decrease in mortgage servicing revenue net of amortization and an impairment charge related to mortgage servicing rights. The impairment charge on mortgage servicing rights is a function of lower interest rates, increased prepayment speed assumptions, and refinancing of mortgage loans.

The decrease in the provision for losses on loans was due to management's assessment of its loan portfolio, delinquency rates, net charge-offs, and current economic conditions. Notwithstanding the decrease in the provision for loan losses, loan loss coverage and loss ratios improved due to decreases in the amounts of charge-offs and non-performing loans. Over the twelve-month period, the allowance for loan losses increased by 14.3% from a balance of $1.5 million to $1.7 million. The coverage ratio as a percentage of net loans increased from .95% as of June 30, 2008 to 1.05% as of June 30, 2009. Net charge-offs for the twelve month period totaled $232,310, or .13%, of average assets in fiscal 2009 compared to charge-offs of $305,304, or .17%, in fiscal 2008. Non-performing loans were $949,000, or .50%, of total assets at June 30, 2009, compared to $985,000, or .54%, at June 30, 2008.

FFD Financial Corporation reported total assets of $189.0 million at June 30, 2009, an increase of 4.0% over the June 30, 2008 balance of $181.7 million. Cash and cash equivalents increased by 5.4% from the June 30, 2008 balance of $13.0 million to $13.8 million at June 30, 2009. Loans receivable, net increased by 3.3% from the June 30, 2008, balance of $156.2 million to $161.4 million at June 30, 2009. Total liabilities increased by 4.6% from the June 30, 2008, balance of $163.6 million to $171.1 million at June 30, 2009, and included deposits of $153.6 million, representing an increase of 8.7% over the June 30, 2008, deposit balance of $141.3 million. Shareholders' equity amounted to $17.9 million at June 30, 2009, a decrease from the $18.2 million total at June 30, 2008. The decrease in shareholders' equity was primarily attributable to the repurchase of 65,833 shares of the Corporation's common stock, payments of quarterly dividends and a negative mark to market of investments available for sale, which were partially offset by net earnings of $1.1 million and proceeds from the exercise of stock options.

FFD Financial Corporation is traded on the NASDAQ Capital Market under the symbol FFDF. First Federal Community Bank has full service offices in downtown Dover, downtown New Philadelphia, on the Boulevard in Dover and in Sugarcreek. A new office in Berlin will be opening in the near future. The Corporation maintains an interactive web site at www.onlinefirstfed.com

                        FFD Financial Corporation
       CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
                             (In thousands)

                                                  June 30,   June 30,
  ASSETS                                             2009       2008
                                                 (unaudited)
 Cash and cash equivalents                        $ 13,755   $ 13,049
 Investment securities                               5,865      5,623
 Mortgage-backed securities                            293        323
 Loans receivable, net                             161,438    156,232
 Loans held for sale                                   311         --
 Real Estate Owned                                     121         --
 Other assets                                        7,231      6,511
                                                  --------   --------

   Total assets                                   $189,014   $181,738
                                                  ========   ========

   LIABILITIES AND SHAREHOLDERS' EQUITY

 Deposits                                         $153,627   $141,332
 Borrowings                                         14,669     20,595
 Other liabilities                                   2,833      1,631
                                                  --------   --------
   Total liabilities                               171,129    163,558
 Shareholders' equity                               17,885     18,180
                                                  --------   --------

   Total liabilities and shareholders' equity     $189,014   $181,738
                                                  ========   ========


                        FFD Financial Corporation
             CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
                    (In thousands, except share data)

                                Fiscal year ended  Three months ended
                                     June 30,           June 30,
                                  2009      2008     2009      2008
                              (unaudited)         (unaudited)(unaudited)

 Total interest income         $10,473    $11,815   $ 2,552   $ 2,835

 Total interest expense          4,196      5,141     1,033     1,152
                               -------    -------   -------   -------

   Net interest income           6,277      6,674     1,519     1,683

 Provision for losses on loans     444        858        73       251
                               -------    -------   -------   -------

   Net interest income after
    provision for losses
    on loans                     5,833      5,816     1,446     1,432

 Other income                      742        586       304       124

 General, administrative and
  other expense                  4,956      4,622     1,261     1,188
                               -------    -------   -------   -------

   Earnings before income
    taxes                        1,619      1,780       489       368

 Federal income taxes              562        610       167       127
                               -------    -------   -------   -------

   NET EARNINGS                $ 1,057    $ 1,170   $   322   $   241
                               =======    =======   =======   =======

   EARNINGS PER SHARE
    Basic                        $1.02      $1.08      $.32      $.22
                               =======    =======   =======   =======

    Diluted                      $1.02      $1.08      $.32      $.22
                               =======    =======   =======   =======

FFD Financial Corporation
Trent B. Troyer, President & CEO
330-364-7777
trent@onlinefirstfed.com