DOVER, Ohio, Oct. 29, 2009 (GLOBE NEWSWIRE) -- FFD Financial Corporation, parent company of First Federal Community Bank of Dover, Ohio, reported net earnings for the three months ended September 30, 2009, of $172,000, or diluted earnings per share of $.17, compared to net earnings of $331,000, or $.31 per diluted share, reported for the comparable three-month period in 2008. The $159,000, or 48.0%, decrease in net earnings resulted from an increase of $187,000, or 15.6%, in general, administrative and other expenses and a decrease of $110,000, or 6.7%, in net interest income, which were partially offset by an increase of $41,000, or 24.7%, in other income and decreases of $87,000, or 49.2%, in the provision for federal income taxes and $10,000, or 9.5%, in the provision for losses on loans.
The decrease in net interest income was primarily due to yields on interest earning assets declining at a faster rate than the costs of new and repricing deposits, and an increase in the average balance of deposits. The increase in general, administrative and other expense was due primarily to increases in employee compensation and benefits, increased FDIC insurance premiums, advertising expense to market the opening of the new Berlin, Ohio office and other expenses related to growth in the Corporation's operations period over period. The increase in employee compensation and benefits was expected due to the opening of the Berlin office and the Corporation's preparation to comply with Section 404 of the Sarbanes-Oxley Act. The increase in FDIC premiums was also expected.
The increase in other income was primarily the result of a $13,000 increase in service charges on deposit accounts, a $12,000 gain on mortgage servicing revenue net of amortization and impairment and a $4,000 increase in gain on sale of loans.
The decrease in the provision for losses on loans was due to management's assessment of its loan portfolio, delinquency rates, net charge-offs, the amount of the allowance for loan losses and current economic conditions. Net charge offs were $64,000 for the quarter ended September 30, 2009, and $58,244 for the comparable quarter in 2008. Non-performing loans were $949,000, or .50%, of total assets at June 30, 2009, compared to $1.3 million, or .69%, at September 30, 2009.
The decrease in the provision for income taxes was due to decreased earnings before income taxes.
FFD Financial Corporation reported total assets at September 30, 2009, of $192.4 million, an increase of $3.4 million, or 1.8%, over the June 30, 2009 balance of $189.0 million. Cash and cash equivalents decreased by 1.4% to $13.6 million from the June 30, 2009 balance of $13.8 million. Loans receivable (net) increased by 1.4% from the June 30, 2009, balance of $161.4 million to $163.7 million at September 30, 2009. Loans held for sale decreased $191,000, or 61.4%, and real estate owned (net) decreased $100,000, or 82.6% from June 30, 2009. Total liabilities increased by 1.9% from $171.1 million at June 30, 2009 to $174.4 million at September 30, 2009, and included deposits of $158.7 million, an increase of 3.3% over the June 30, 2009 balance of $153.6 million. The increase in shareholders' equity was primarily attributable to net earnings of $172,000 and increases in the fair market value of investments available for sale, which were partially offset by dividend payments. First Federal continues to maintain strong capital ratios, exceeding well capitalized regulatory requirements.
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, in Sugarcreek and in Berlin. The Corporation maintains an interactive web site at www.onlinefirstfed.com
FFD Financial Corporation
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(In thousands)
September 30, June 30,
ASSETS 2009 2009
(unaudited)
Cash and cash equivalents $13,567 $13,755
Investment securities 6,991 5,865
Mortgage-backed securities 288 293
Loans receivable, net 163,681 161,438
Loans held for sale 120 311
Real Estate Owned 21 121
Other assets 7,711 7,231
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Total assets $192,379 $189,014
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LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits $158,740 $153,627
Borrowings 13,864 14,669
Other liabilities 1,807 2,833
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Total liabilities 174,411 171,129
Shareholders' equity 17,968 17,885
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Total liabilities and shareholders' equity $192,379 $189,014
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FFD Financial Corporation
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(In thousands, except share data)
Three months ended
September 30,
2009 2008
(unaudited) (unaudited)
Total interest income $2,541 $2,724
Total interest expense 1,003 1,076
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Net interest income 1,538 1,648
Provision for losses on loans 95 105
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Net interest income after provision for
losses on loans 1,443 1,543
Other income 207 166
General, administrative and other expense 1,388 1,201
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Earnings before income taxes 262 508
Federal income taxes 90 177
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NET EARNINGS $172 $331
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EARNINGS PER SHARE
Basic $.17 $.31
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Diluted $.17 $.31
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