UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): October 29, 2008
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FFD Financial Corporation
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(Exact name of registrant as specified in its charter)
Ohio 0-27916 34-1921148
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(State or other jurisdiction of (Commission (IRS Employer
incorporation) File Number) Identification No.)
321 North Wooster Avenue, Dover, Ohio 44622
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (330) 364-7777
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(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2. below):
[ ] Written communications pursuant to Rule 425 under the Securities Act
(17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act
(17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
Section 1 - Registrant's Business and Operations
Item 1.01 Entry into a Material Definitive Agreement.
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On October 29, 2008, FFD Financial Corporation (the "Company") entered
into a Commercial Loan Agreement (the "Line of Credit") with The Home
Loan Savings Bank ("Home Loan") permitting borrowings by the Company of
up to $1 million in the aggregate. The Line of Credit replaces the $2.5
million line of credit previously entered into between the Company with
The Huntington National Bank, which expired by its terms on October 31,
2008
The obligations of the Company under the Line of Credit are secured by a
pledge of 10% of the Company's shares of stock in First Federal Community
Bank ("First Federal"), its wholly-owned subsidiary, pursuant to a
Commercial Security Agreement (the "Pledge Agreement"). The Line of
Credit has no expiration date and is payable on demand.
Borrowings under the Line of Credit may be used for general business
purposes and will bear interest at a per annum rate of the Wall Street
Journal U.S. Prime Rate plus 0.5%, with a minimum rate of 5.0% and a
maximum rate of 24.0%. The Line of Credit contains customary covenants,
including, covenants limiting liens and certain asset sales and debt
service financial covenants.
In the event of a default by the Company under the Line of Credit,
Home Loan may terminate the commitments made under the Line of Credit,
declare the amount outstanding, payable immediately, enforce any and
all rights created under the Line of Credit documents, including all
rights under the Pledge Agreement, and exercise all other rights
available under the law.
The Company currently has no borrowings outstanding under the Line of
Credit; however, per the terms of the Line of Credit, the Company may
draw funds at any time.
Section 2 - Financial Information
Item 2.01 Completion of Acquisition or Disposition of Assets.
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See discussion under Item 1.01 above.
Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an
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Off-Balance Sheet Arrangement of a Registrant.
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See discussion under Item 1.01 above.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
FFD FINANCIAL CORPORATION
By: /s/ Robert R. Gerber
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Robert R. Gerber
Senior Vice President, Treasurer
and Chief Financial Officer
Date: November 3, 2008