EXHIBIT 99
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Date: January 25, 2008
FOR IMMEDIATE RELEASE:
CONTACT:
Trent B. Troyer, President & CEO
330-364-7777 or trent@onlinefirstfed.com
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FFD Financial Corporation Reports Net Earnings For The Three- and
Six-Month Periods Ended December 31, 2007
DOVER, OHIO - FFD FINANCIAL CORPORATION (NASDAQ:FFDF), parent company of First
Federal Community Bank of Dover, Ohio, reported net earnings for the three
months ended December 31, 2007, of $362,000, or diluted earnings per share of
$.34, compared to the $399,000, or $.35 per diluted share, of net earnings
reported for the comparable three-month period in 2006. The $37,000, or 9.3%,
decrease in net earnings resulted from increases of $72,000, or 184.6%, in the
provision for losses on loans and $6,000, or .5%, in general, administrative
and other expenses and a decrease of $6,000, or 3.8%, in other income, which
were partially offset by an increase of $29,000, or 1.8%, in net interest
income and a decrease of $18,000, or 8.7%, in the provision for federal income
taxes.
Net earnings for the six months ended December 31, 2007, were $770,000, or
diluted earnings per share of $.71, compared to the $841,000, or $.72 per
diluted share, of net earnings reported for the comparable six-month period in
2006. The $71,000, or 8.4%, decrease in net earnings resulted from increases of
$97,000, or 95.1%, in the provision for losses on loans and $84,000, or 3.8%,
in general, administrative and other expenses and a decrease of $20,000, or
6.1%, in other income, which were partially offset by an increase of $94,000,
or 2.9%, in net interest income and a decrease of $36,000, or 8.3%, in the
provision for federal income tax.
The increase in net interest income was primarily due to increases in yields
and in average balances of loans receivable, which were partially offset by
increases in average deposit balances and in the cost of new and repricing
deposits. Borrowing costs decreased period to period due to a decrease in the
average borrowing costs outweighing the increase in the average balance of
borrowings. The increase in general, administrative and other expense was due
primarily to growth in the Corporation's operations year over year. The $20,000
decrease in other income resulted from a $28,000 decrease in gain on sale of
loans due to a continued soft residential mortgage market and a $3,000 decrease
in service charges on deposit accounts, which were partially offset by an
$11,000 increase in other operating income. The increase in the provision for
losses on loans was due to a combination of loan portfolio growth, net
charge-offs, changes in the classifications of some loans, and management's
assessment of current economic conditions applied to the portfolio.
FFD Financial Corporation reported total assets of $176.2 million at December
31, 2007, an increase of 1.9% over the June 30, 2007 balance of $173.0 million.
Cash and cash equivalents decreased by 1.7% from the June 30, 2007 balance of
$9.0 million to $8.9 million at December 31, 2007. Loans receivable, net
increased by 2.4% from the June 30, 2007, balance of $153.3 million to $156.9
million at December 31, 2007. Total liabilities increased by 1.9% from the June
30, 2007, balance of $154.9 million to $157.8 million at December 31, 2007, and
included deposits of $138.6 million, representing a decrease of 1.0% over the
June 30, 2007, balance of $140.0 million. Shareholders' equity amounted to
$18.4 million at December 31, 2007, an increase from the $18.1 million total at
June 30, 2007. The increase in shareholders' equity was primarily attributable
to net earnings of $770,000, a positive mark to market of investments available
for sale and proceeds from the exercise of stock options, which were partially
offset by the cost of previously announced share repurchases and payments of
quarterly dividends.
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.
The Corporation maintains an interactive web site at www.onlinefirstfed.com.
FFD Financial Corporation
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CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(In thousands)
December 31, June 30,
ASSETS 2007 2007
(unaudited)
Cash and cash equivalents $ 8,880 $ 9,033
Investment securities 3,498 3,448
Mortgage-backed securities 340 364
Loans receivable, net 156,891 153,282
Loans held for sale 257 624
Other assets 6,375 6,243
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Total assets $176,241 $172,994
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LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits $138,576 $139,922
Borrowings 17,312 13,055
Other liabilities 1,961 1,882
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Total liabilities 157,849 154,859
Shareholders' equity 18,392 18,135
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Total liabilities and shareholders' equity $176,241 $172,994
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FFD Financial Corporation
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CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(In thousands, except share data)
Six months ended Three months ended
December 31, December 31,
2007 2006 2007 2006
Total interest income $6,074 $5,596 $3,004 $2,852
Total interest expense 2,726 2,342 1,346 1,223
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Net interest income 3,348 3,254 1,658 1,629
Provision for losses on loans 199 102 111 39
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Net interest income after provision
for losses on loans 3,149 3,152 1,547 1,590
Other income 306 326 151 157
General, administrative and other expense 2,285 2,201 1,147 1,141
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Earnings before income taxes 1,170 1,277 551 606
Federal income taxes 400 436 189 207
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NET EARNINGS $ 770 $ 841 $ 362 $ 399
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EARNINGS PER SHARE
Basic $.71 $.72 $.34 $.35
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Diluted $.71 $.72 $.34 $.35
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