EXHIBIT 99
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July 31, 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
DOVER, OHIO -FFD Financial Corporation, parent company of First Federal
Community Bank (the Bank), reported net earnings for the three months ended June
30, 2006, of $474,000, or diluted earnings per share of $.39, compared to net
earnings of $454,000, or $.38 per diluted share reported for the comparable
three-month period in 2005. The $20,000, or 4.4%, increase in net earnings
resulted from an increase of $326,000, or 26.3%, in net interest income and a
decrease of $45,000 or 4.4%, in general, administrative and other expenses,
which were partially offset by a $285,000, or 60.1%, decrease in other income,
and increases of $45,000 in the provision for losses on loans and $21,000, or
9.0%, in the provision for federal income tax. The increase in net interest
income was a result of upward pricing of adjustable rate loans in a rising rate
environment, as well as growth in assets. The decrease in other income in 2006
resulted from the absence of a $329,000 pre-tax gain recorded in 2005 from the
sale of stock in Intrieve, Incorporated in connection with the acquisition of
Intrieve by Harland Financial Solutions, Inc. which was partially offset by an
$18,000 pre-tax gain in the same period in 2006 resulting from a holdback
payment from the Intrieve acquisition. Excluding these one time gains, other
income in the current period would have outpaced the comparable period last year
by $26,000 or 17.9%. The increase in the provision for federal income tax was
due to increased earnings period to period. FFD also took a $27,000 pre-tax
expense in the current quarter as a result of the board's decision to accelerate
the vesting of all remaining stock options.
Net earnings for the fiscal year ended June 30, 2006, totaled $1.4 million, or
diluted earnings per share of $1.13, an increase of $266,000 from the net
earnings of $1.1 million, or $.92 per diluted share reported in fiscal 2005. The
22.8% increase in net earnings for the 2006 fiscal year resulted from an
increase of $1.3 million in net interest income, which was partially offset by a
$318,000, or 34.7% decrease in other income, and increases of $390,000, or
10.2%, in general, administrative and other expenses, $151,000, or 27.0% in the
provision for federal income tax, and $149,000 in the provision for losses on
loans.
The increase in net interest income was due to increases in average loans
outstanding, favorable repricing of adjustable rate loans, and improvement of
the net interest margin through liability cost management. The decrease in other
income resulted primarily from the absence of a $329,000 pre-tax gain from the
acquisition of Intrieve by Harland Financial Solutions in fiscal 2005, and was
partially offset by $35,000 additional pre-tax gain in fiscal 2006 from hold
back payments from the same transaction. 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 earnings growth. Other operating expenses increased as
a result of the going private transaction, 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. The increase in the
provision for federal income tax was due to increased earnings period to period.
FFD Financial Corporation reported total assets of $161.2 million at June 30,
2006, an increase of 8.5% over the June 30, 2005 balance of $148.6 million.
Loans receivable increased by 9.9% from the June 30, 2005 balance of $131.5
million to $144.6 million at June 30, 2006. Total liabilities of FFD Financial
Corporation increased by 8.9% from the June 30, 2005 balance of $131.2 million
to $142.9 million at June 30, 2006, and included deposits of $121.9 million,
representing an increase of 9.3% over the June 30, 2005 balance of $111.5
million. Shareholders' equity totaled $18.4 million at June 30, 2006.
"We are very pleased with our continuing progress in improving our earnings per
share" commented Trent B. Troyer, President & CEO. "When you compare the year's
growth in diluted earnings per share excluding the one time gains, we improved
core earnings by 50.0%. I'm also very proud of the growth in our balance sheet
in a very challenging environment. We continued to remain conservative in our
deposit acquisition pricing, but yet grew deposits by 9.3%. We continue to have
a positive outlook about our market areas and the general interest rate
environment and look forward to fiscal 2007"
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 lending
centers 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)
June 30, June 30,
ASSETS 2006 2005
(unaudited)
Cash and cash equivalents $ 7,692 $ 7,785
Investment securities 3,353 3,485
Tax effect 561 720
Loans receivable 144,556 131,493
Other assets 5,071 5,112
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Total assets $161,233 $148,595
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LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits $121,919 $111,495
Borrowings 18,428 17,880
Other liabilities 2,523 1,782
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Total liabilities 142,870 131,157
Shareholders' equity 18,363 17,438
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Total liabilities and shareholders' equity $161,233 $148,595
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FFD Financial Corporation
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CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(In thousands, except share data)
Fiscal year ended Three months ended
June 30, June 30,
2006 2005 2006 2005
Total interest income $9,475 $7,073 $2,555 $1,963
Total interest expense 3,649 2,521 991 725
------ ------ ------ ------
Net interest income 5,826 4,552 1,564 1,238
Provision for losses on loans 160 11 45 --
------ ------ ------ ------
Net interest income after provision
for losses on loans 5,666 4,541 1,519 1,238
Other income 599 917 189 474
General, administrative and other expense 4,203 3,813 979 1,024
------ ------ ------ ------
Earnings before income taxes 2,062 1,645 729 688
Federal income taxes 710 559 255 234
------ ------ ------ ------
NET EARNINGS $1,352 $1,086 $ 474 $ 454
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EARNINGS PER SHARE
Basic $ 1.15 $ .94 $ .40 $ .39
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Diluted $ 1.13 $ .92 $ .39 $ .38
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FFD Financial Corporation
RECONCILIATION OF GAAP TO non-GAAP DISCLOSURES
(In thousands, except share data)
Fiscal year ended Three months ended
June 30, June 30,
2006 2005 2006 2005
Net earnings on a GAAP basis $ 1,352 $ 1,086 $ 474 $ 454
Other income
adjusted for unusual gains (35) (329) (18) (329)
Tax effect 12 112 6 112
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Net earnings before unusual gains $ 1,329 $ 869 $ 462 $ 237
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Diluted earnings per share on a GAAP basis $ 1.13 $ .92 $ .39 $ .38
Other income
adjusted for unusual gains (.03) (.28) (.02) (.28)
Tax effect .01 .10 .01 .10
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Diluted earnings per share before unusual gains $ 1.11 $ .74 $ .38 $ .20
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