EXHIBIT 99
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January 22, 2007
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 Net Earnings For The Three- and
Six-Month Periods Ended December 31, 2006
DOVER, OHIO - FFD Financial Corporation, parent company of First Federal
Community Bank of Dover, Ohio, reported net earnings for the three months ended
December 31, 2006, of $399,000, or diluted earnings per share of $.35, compared
to the $292,000, or $.24 per diluted share, of net earnings reported for the
comparable three-month period in 2005. The $107,000, or 36.6%, increase in net
earnings resulted from increases of $201,000, or 14.1%, in net interest income
and $11,000, or 7.5%, in other income, and a decrease of $6,000, or 13.3%, in
the provision for losses on loans, which were partially offset by increases of
$56,000, or 37.1%, in the provision for federal income taxes and $55,000, or
5.1%, in general, administrative and other expenses.
Net earnings for the six months ended December 31, 2006, were $841,000, or
diluted earnings per share of $.72, compared to the $600,000, or $.50 per
diluted share, of net earnings reported for the comparable six-month period in
2005. The $241,000, or 40.2%, increase in net earnings resulted from an increase
of $497,000, or 18.0%, in net interest income which was partially offset by
increases of $126,000, or 40.6%, in the provision for federal income taxes,
$92,000, or 4.4%, in general, administrative and other expenses and $27,000, or
36.0%, in the provision for losses on loans and a decrease of $11,000, or 3.3%,
in other income.
The increase in net interest income was primarily due to increases in yields and
in average balances of loans receivable and other interest-earning assets, which
were partially offset by increases in average deposit balances and in the cost
of new and repricing deposits during the period. Borrowing costs decreased
period to period because a decrease in the average balance outweighed the
increase in interest rates. The increase in general, administrative and other
expense was due primarily to growth in the Corporation's operations year over
year. The decrease in other income was the result of a $34,000 decrease in
mortgage banking income from a continued soft residential mortgage market and
the absence of a $16,000 pre-tax gain recorded in 2005 from the sale of stock in
Intrieve, Incorporated, which were partially offset by an increase of $39,000 in
service charges and other fee income.
FFD Financial Corporation reported total assets of $167.3 million at December
31, 2006, an increase of 3.8% over the June 30, 2006 balance of $161.2 million.
Cash and cash equivalents increased by 41.7% from the June 30, 2006 balance of
$7.7 million to $10.9 million at December 31, 2006. Loans receivable increased
by 2.0% from the June 30, 2006 balance of $144.6 million to $147.4 million at
December 31, 2006. Total liabilities increased by 4.9% from the June 30, 2006
balance of $142.9 million to $149.8 million at December 31, 2006, and included
deposits of $134.6 million, representing an increase of 10.4% over the June 30,
2006 balance of $121.9 million. Shareholders' equity amounted to $17.5 million
at December 31, 2006 a decrease from the $18.4 million total at June 30, 2006.
The reduction in shareholders' equity was primarily attributable to previously
announced share repurchases and payments of quarterly dividends, and were
partially offset by exercise of stock options, amortization of stock benefit
plans and net earnings of $841,000.
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 limited
service offices 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)
December 31, June 30,
ASSETS 2006 2006
(unaudited)
Cash and cash equivalents $ 10,901 $ 7,692
Investment securities 3,446 3,353
Mortgage-backed securities 397 561
Loans receivable 147,429 144,556
Other assets 5,136 5,071
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Total assets $167,309 $161,233
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LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits $134,629 $121,919
Borrowings 12,826 18,428
Other liabilities 2,353 2,523
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Total liabilities 149,808 142,870
Shareholders' equity 17,501 18,363
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Total liabilities and shareholders' equity $167,309 $161,233
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FFD Financial Corporation
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(In thousands, except share data)
Six months ended Three months ended
December 31, December 31,
2006 2005 2006 2005
Total interest income $5,596 $4,503 $2,852 $2,340
Total interest expense 2,342 1,746 1,223 912
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Net interest income 3,254 2,757 1,629 1,428
Provision for losses on loans 102 75 39 45
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Net interest income after
provision for losses on loans 3,152 2,682 1,590 1,383
Other income 326 337 157 146
General, administrative and other expense 2,201 2,109 1,141 1,086
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Earnings before income taxes 1,277 910 606 443
Federal income taxes 436 310 207 151
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NET EARNINGS $ 841 $ 600 $ 399 $ 292
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EARNINGS PER SHARE
Basic $ .72 $ .51 $ .35 $ .25
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Diluted $ .72 $ .50 $ .35 $ .24
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