EXHIBIT 99
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August 17, 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 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, 2007, of $435,000, or diluted earnings per share of $.39, compared to
net earnings of $474,000, or $.39 per diluted share reported for the comparable
three-month period in 2006. The $39,000, or 8.2%, decrease in net earnings
resulted from increases of $64,000, or 6.5%, in general administrative and
$33,000, or 73.3%, in the provision for loan losses, which were partially
offset by increases in net interest income of $19,000, or 1.2%, and $10,000, or
5.3%, in other income and a decrease of $29,000, or 11.4%, in the provision for
federal income tax. The increase in net interest income was a result of
decreases in higher cost borrowings, upward pricing of adjustable rate loans,
and growth in assets. The decrease in the provision for federal income tax was
due to decreased earnings period to period.
Net earnings for the fiscal year ended June 30, 2007, totaled $1.6 million, or
diluted earnings per share of $1.44, an increase of $271,000 from the net
earnings of $1.4 million, or $1.13 per diluted share, reported in fiscal 2006.
The 20.0% increase in net earnings for the 2007 fiscal year resulted from
increases of $607,000, or 10.4%, in net interest income and $51,000, or 8.5%,
in other income, which were partially offset by increases of $139,000, or 3.3%,
in general, administrative and other expenses, $133,000, or 18.7%, in the
provision for federal income tax, and $115,000 in the provision for losses on
loans.
The increase in net interest income was due to an increase in average loans
outstanding, upward repricing of adjustable rate loans, and improvement of the
net interest margin through liability cost management. The increase in other
income resulted primarily from increased ATM and loan fees, and was partially
offset by the absence of the 35,000 hold back payment received in fiscal 2006
from the acquisition of Intrieve Incorporated by Harland Financial Solutions
and a decrease in gain on sale of loans. The increase in general,
administrative and other expense was due primarily to increases in employee
compensation and benefits, other operating expenses and data processing as a
result of the company's growth, but was partially offset by a decrease in ESOP
expense. Other operating expenses increased as a result of increases in
advertising expense, internet banking expense, audit and compliance fees 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 $173.0 million at June 30,
2007, an increase of 7.3% over the June 30, 2006 balance of $161.2 million.
Loans receivable increased by 6.9% from the June 30, 2006 balance of $144.6
million to $154.6 million at June 30, 2007. Total liabilities of FFD Financial
Corporation increased by 8.4% from the June 30, 2006 balance of $142.9 million
to $154.9 million at June 30, 2007, and included deposits of $140.0 million,
representing an increase of 14.8% over the June 30, 2006 balance of $122.0
million. Shareholders' equity totaled $18.1 million at June 30, 2007 a decrease
from the $18.4 million at June 30, 2006. The decrease was primarily due to
share repurchases which were partially offset by earnings. Share repurchases
are one of the capital management strategies employed by management to improve
shareholder return on equity.
"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, we improved earnings by 27.4%. 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 14.8% compared to the growth in fiscal 2006
of 9.3%. We continue to have a positive outlook about our market areas and the
general economic environment and look forward to fiscal 2008."
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
and a limited service office in Coshocton. 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 2007 2006
(unaudited)
Cash and cash equivalents $ 9,033 $ 7,692
Investment securities 3,448 3,353
Mortgage-backed securities 364 561
Loans receivable 154,567 144,556
Other assets 5,582 5,071
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Total assets $172,994 $161,233
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LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits $139,922 $121,919
Borrowings 13,055 18,428
Other liabilities 1,882 2,523
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Total liabilities 154,859 142,870
Shareholders' equity 18,135 18,363
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Total liabilities and shareholders' equity $172,994 $161,233
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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,
2007 2006 2007 2006
(unaudited) (unaudited) (unaudited)
Total interest income $11,402 $9,475 $2,933 $2,555
Total interest expense 4,969 3,649 1,350 991
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Net interest income 6,433 5,826 1,583 1,564
Provision for losses on loans 275 160 78 45
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Net interest income after provision
for losses on loans 6,158 5,666 1,505 1,519
Other income 650 599 199 189
General, administrative and other expense 4,342 4,203 1,043 979
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Earnings before income taxes 2,466 2,062 661 729
Federal income taxes 843 710 226 255
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NET EARNINGS $ 1,623 $1,352 $ 435 $ 474
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EARNINGS PER SHARE
Basic $1.45 $1.15 $.40 $.40
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Diluted $1.44 $1.13 $.39 $.39
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