EXHIBIT 99
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FFD [LOGO]
Date: January 30, 2009
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, 2008
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, 2008, of $282,000, or diluted earnings per share of
$.27, compared to the $362,000, or $.33 per diluted share, of net earnings
reported for the comparable three-month period in 2007. The $80,000, or 22.1%,
decrease in net earnings resulted from an increase of $97,000, or 8.5%, in
general, administrative and other expenses and a decrease of $44,000, or 2.7%
in net interest income, which were partially offset by an increase of $15,000,
or 9.9%, in other income and decreases of $12,000, or 10.8%, in the provision
for losses on loans and $34,000, or 18.0%, in the provision for federal income
taxes.
Net earnings for the six months ended December 31, 2008, were $613,000, or
diluted earnings per share of $.58, compared to the $770,000, or $.70 per
diluted share, of net earnings reported for the comparable six-month period in
2007. The $157,000, or 20.4%, decrease in net earnings resulted from increases
of $160,000, or 7.0%, in general, administrative and other expenses and $5,000,
or 2.5%, in the provision for losses on loans and a decrease of $86,000, or
2.6%, in net interest income, which were partially offset by an increase of
$26,000, or 8.5%, in other income and a decrease of $68,000, or 17.0%, in the
provision for federal income tax.
The increase in general, administrative and other expense was due primarily to
increases in employee compensation and benefits, professional and consulting
fees, FDIC insurance premiums and other expenses as a result of growth in the
Corporation's operations year over year. The decrease in net interest income
was primarily due to decreases in yields on interest earning assets declining
at a faster rate than costs of new and repricing deposits. Borrowing costs
increased period to period due to an increase in the average balance
outstanding which was partially offset by a decrease in the average cost of
borrowings. The average balance increased period to period due to Federal Home
Loan Bank advances to help finance increased loan production and a draw on a
credit line used to repurchase a large block of our shares. The $26,000
increase in other income resulted from a $51,000 increase in gain on sale of
loans due to a strengthening in the residential refinance mortgage market,
which was partially offset by a $23,000 decrease 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. Non-Performing assets increased to 0.76% of assets compared to
0.64% at June 30, 2008. Net charge-offs for the first six months were $77,316
for an annualized rate of
0.08% down from the 0.17% charge-off ratio for the fiscal year ended June 30,
2008. The allowance for loan losses to total loans ratio improved to 1.02%, up
from 0.94% at June 30, 2008. The ratio increase was due to an increase in the
allowance for loan losses.
FFD Financial Corporation reported total assets of $183.9 million at December
31, 2008, an increase of 1.2% over the June 30, 2008 balance of $181.7 million.
Cash and cash equivalents increased by 4.3% from the June 30, 2008 balance of
$13.0 million to $13.6 million at December 31, 2008. Loans receivable, net
increased by 1.4% from the June 30, 2008, balance of $156.2 million to $158.4
million at December 31, 2008. Total liabilities increased by 1.5% from the June
30, 2008, balance of $163.6 million to $166.0 million at December 31, 2008, and
included deposits of $145.3 million, representing an increase of 2.8% over the
June 30, 2008, deposit balance of $141.3 million. Shareholders' equity amounted
to $17.9 million at December 31, 2008, a decrease from the $18.2 million total
at June 30, 2008. The decrease in shareholders' equity was primarily
attributable to the repurchase of 65,833 shares of the corporation's common
stock and payments of quarterly dividends, which were primarily offset by net
earnings of $613,000, a positive mark to market of investments available for
sale and proceeds from the exercise of stock options.
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
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FFD Financial Corporation
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(In thousands)
December 31, June 30,
ASSETS 2008 2008
(unaudited)
Cash and cash equivalents $ 13,611 $ 13,049
Investment securities 4,806 5,623
Mortgage-backed securities 301 323
Loans receivable, net 158,400 156,232
Loans held for sale 342 -
Other assets 6,399 6,511
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Total assets $183,859 $181,738
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LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits $145,264 $141,332
Borrowings 18,452 20,595
Other liabilities 2,270 1,631
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Total liabilities 165,986 163,558
Shareholders' equity 17,873 18,180
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Total liabilities and shareholders' equity $183,859 $181,738
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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,
2008 2007 2008 2007
(unaudited) (unaudited)
Total interest income $5,378 $6,074 $2,654 $3,004
Total interest expense 2,116 2,726 1,040 1,346
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Net interest income 3,262 3,348 1,614 1,658
Provision for losses on loans 204 199 99 111
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Net interest income after provision
for losses on loans 3,058 3,149 1,515 1,547
Other income 332 306 166 151
General, administrative and other expense 2,445 2,285 1,244 1,147
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Earnings before income taxes 945 1,170 437 551
Federal income taxes 332 400 155 189
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NET EARNINGS $ 613 $ 770 $ 282 $ 362
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EARNINGS PER SHARE
Basic $ .58 $ .71 $ .27 $ .33
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Diluted $ .58 $ .70 $ .27 $ .33
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