EXHIBIT 99
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April 25, 2006
FOR IMMEDIATE RELEASE:
CONTACT:
Trent Troyer, President
FFD Financial Corporation
321 North Wooster Avenue
Dover, Ohio 44622-0038
(330) 364-7777
FFD Financial Corporation Reports Increase in Net Earnings For The Three- and
Nine-Month Periods Ended March 31, 2006
DOVER, OHIO - FFD Financial Corporation, parent company of First Federal
Community Bank, reported net earnings for the three months ended March 31, 2006,
of $278,000, or diluted earnings per share of $.23, compared to $258,000, or
$.22 per diluted share, of net earnings reported for the comparable three-month
period in 2005. The $20,000, or 7.8%, increase in net earnings resulted from an
increase of $312,000, or 26.2%, in net interest income, which was partially
offset by a $52,000, or 41.6%, decrease in other income, and increases of
$194,000, or 21.1%, in general, administrative and other expenses, $33,000 in
the provision for losses on loans, and $13,000, or 9.8%, in the provision for
federal income tax.
Net earnings reported for the nine months ended March 31, 2006, were $878,000,
or diluted earnings per share of $.74, compared to the $632,000, or $.54 per
diluted share, of net earnings reported for the comparable nine-month period in
2005. The $246,000, or 38.9%, increase in net earnings resulted from an increase
of $948,000, or 28.6%, in net interest income, which was partially offset by a
$33,000, or 7.5%, decrease in other income and increases of $435,000, or 15.6%,
in general, administrative and other expenses, $130,000, or 40.0%, in the
provision for federal income tax, and $104,000 in the provision for losses on
loans.
The increase in net interest income was due to increases in average loans
outstanding and lending rates during the period, which were partially offset by
a gradual increase in the cost of new and repricing deposits during the period.
The increase in general, administrative and other expense was due primarily to
increases in other operating expenses and employee compensation and benefits.
These expenses increased due to our investment in the Coshocton and Sugarcreek
markets, which we expect to aid in our continuing asset and profit growth. Other
operating expenses increased as a result of the going private transaction which
was terminated on September 15, 2005, advertising expense and other pro-rata
increases. The increase in the provision for losses on loans was primarily due
to growth in the loan portfolio, loan charge offs, and an increase related to
management's assessment of economic conditions.
"We continue to be pleased with our earnings progress for the first nine months
of this fiscal year when comparing them against the same periods a year ago"
stated Trent B. Troyer, President & CEO. "We continue to believe in our
community bank business model and will continue to focus on improving our
earnings per share and operating ratios. The investments that we have made in
the Coshocton and Sugarcreek offices, and our overall banking franchise have
positioned us for progress on our strategic plan."
FFD Financial Corporation reported total assets of $155.8 million at March 31,
2006, an increase of 4.8% over the June 30, 2005 balance of $148.6 million.
Loans receivable increased by 5.9% from the June 30, 2005 balance of $131.5
million to $139.2 million at March 31, 2006. Cash and cash equivalents decreased
by 4.5% from the June 30, 2005 balance of $7.8 million to $7.5 million at March
31, 2006. Total liabilities of FFD Financial Corporation increased by 5.0% from
the June 30, 2005 balance of $131.2 million to $137.7 million at March 31, 2006,
and included deposits of $121.4 million, representing an increase of 8.9% over
the June 30, 2005 balance of $111.5 million. Borrowings decreased by 18.4% from
the June 30, 2005 balance of $17.9 million to $14.6 million at March 31, 2006.
Shareholders' equity amounted to $18.0 million at March 31, 2006.
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 and on the Boulevard in Dover, and has loan
production offices, now accepting limited deposits in Coshocton and Sugarcreek.
The Corporation maintains an interactive web site at www.onlinefirstfed.com.
FFD Financial Corporation
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(In thousands)
March 31, June 30,
ASSETS 2006 2005
(unaudited)
Cash and cash equivalents $ 7,436 $ 7,785
Investment securities 3,413 3,485
Mortgage-backed securities 637 720
Loans receivable 139,200 131,493
Other assets 5,068 5,112
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Total assets $ 155,754 $ 148,595
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LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits $121,403 $ 111,495
Borrowings 14,595 17,880
Other liabilities 1,707 1,782
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Total liabilities 137,705 131,157
Shareholders' equity 18,049 17,438
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Total liabilities and shareholders' equity $ 155,754 $ 148,595
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FFD Financial Corporation
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CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(In thousands, except share data)
Nine months ended Three months ended
March 31, March 31,
2006 2005 2006 2005
Total interest income $6,920 $5,110 $2,417 $1,809
Total interest expense 2,658 1,796 912 616
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Net interest income 4,262 3,314 1,505 1,193
Provision for losses on loans 115 11 40 7
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Net interest income after provision
for losses on loans 4,147 3,303 1,465 1,186
Other income 410 443 73 125
General, administrative and other expense 3,224 2,789 1,115 921
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Earnings before income taxes 1,333 957 423 390
Federal income taxes 455 325 145 132
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NET EARNINGS $ 878 $ 632 $ 278 $ 258
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EARNINGS PER SHARE
Basic $ .75 $ .55 $ .24 $ .22
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Diluted $ .74 $ .54 $ .23 $ .22
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