DOVER, Ohio, Oct. 30, 2007 (PRIME NEWSWIRE) -- FFD Financial Corporation (Nasdaq:FFDF), parent company of First Federal Community Bank of Dover, Ohio, reported net earnings for the three months ended September 30, 2007, of $408,000, or per share diluted earnings of $.37, compared to net earnings of $442,000, or $.37 per diluted share, reported for the comparable three-month period in 2006. Diluted earnings per share remained constant period to period, despite the decrease in net earnings, as a result of the Corporation's stock repurchases, a longstanding capital management tool. The $34,000, or 7.7%, decrease in net earnings resulted from increases of $78,000, or 7.4%, in general, administrative and other expenses and $25,000, or 39.7%, in the provision for losses on loans and a decrease of $14,000, or 8.3%, in other income, and were partially offset by an increase of $65,000, or 4.0%, in net interest income and a decrease of $18,000, or 7.9%, in the provision for federal income taxes.
The increase in net interest income was primarily due to stable yields and increases in average balances of loans receivable and other interest-earning assets, which were partially offset by increases in the cost of new and repricing deposits during the period. 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 $14,000 decrease in mortgage banking income from a continued soft residential mortgage market. The increase in the provision for losses on loans was due to a combination of loan portfolio growth, net charge-offs, and management's assessment of current economic conditions applied to the portfolio. The decrease in the provision for income taxes was due to decreased earnings before income taxes period to period.
FFD Financial Corporation reported total assets at September 30, 2007 of $173.3 million, total liabilities of $155.0 million, including deposits of $137.1 million, and shareholders' equity of $18.3 million.
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)
Sept. 30, June 30,
2007 2007
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(unaudited)
ASSETS
Cash and cash equivalents $ 7,540 $ 9,033
Investment securities 3,488 3,448
Mortgage-backed securities 351 364
Loans receivable, net 155,214 153,282
Loans held for sale 170 624
Other assets 6,567 6,243
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Total assets $173,330 $172,994
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LIABILITIES AND
SHAREHOLDERS' EQUITY
Deposits $137,114 $139,922
Borrowings 15,920 13,055
Other liabilities 2,014 1,882
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Total liabilities 155,048 154,859
Shareholders' equity 18,282 18,135
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Total liabilities and
shareholders' equity $173,330 $172,994
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FFD Financial Corporation
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(In thousands, except share data)
Three months ended
September 30,
2007 2006
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Total interest income $3,070 $2,744
Total interest expense 1,380 1,119
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Net interest income 1,690 1,625
Provision for losses on loans 88 63
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Net interest income after provision for
losses on loans 1,602 1,562
Other income 155 169
General, administrative and other expense 1,138 1,060
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Earnings before income taxes 619 671
Federal income taxes 211 229
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NET EARNINGS $ 408 $ 442
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EARNINGS PER SHARE
Basic $ .37 $ .37
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Diluted $ .37 $ .37
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