SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): April 22, 2011
FFD Financial Corporation
(Exact name of registrant as specified in its charter)
(State or other jurisdiction
(IRS Employer Identification No.)
321 North Wooster Avenue, Dover, Ohio 44622
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (330) 364-7777
(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
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act
Section 2 Financial Information
Results of Operations and Financial Condition.
On April 22, 2011, FFD Financial Corporation issued a press release regarding its earnings for the three- and nine-month periods ended March 31, 2011. The press release is attached as Exhibit 99 hereto and is incorporated herein by reference.
Section 9 Financial Statements and Exhibits
Financial Statements and Exhibits.
Press Release of FFD Financial Corporation dated April 22, 2011
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
/s/ Robert R. Gerber
Robert R. Gerber
Date: April 25, 2011
Date: April 22, 2011
FOR IMMEDIATE RELEASE:
Trent B. Troyer, President & CEO
Robert R. Gerber, SVP & CFO
330-364-7777 or email@example.com
FFD Financial Corporation Reports Net Earnings For The Three- and
Nine-Month Periods Ended March 31, 2011
DOVER, OHIO - FFD Financial Corporation (NASDAQ:FFDF), parent company of First Federal Community Bank, reported net earnings for the three months ended March 31, 2011, of $348,000, or diluted earnings per share of $.34, compared to $264,000, or $.26 per diluted share, of net earnings reported for the comparable three-month period in 2010. The $84,000, or 31.8%, increase in net earnings resulted from increases of $148,000, or 8.5%, in net interest income and $27,000, or 14.4%, in noninterest income and a decrease of $25,000, or 17.2%, in the provision for losses on loans, which were partially offset by increases of $76,000, or 5.5%, in noninterest expenses and $40,000, or 28.6%, in the provision for federal income taxes.
Net earnings for the nine months ended March 31, 2011, were $1.1 million, or diluted earnings per share of $1.06, compared to $603,000, or $.59 per diluted share, of net earnings reported for the comparable nine-month period in 2010. The $476,000, or 78.9%, increase in net earnings resulted from increases of $830,000, or 17.2%, in net interest income and $363,000, or 64.9%, in noninterest income, which were partially offset by increases of $340,000, or 109.0%, in the provision for losses on loans, $134,000, or 3.2%, in noninterest expenses and $243,000, or 76.2%, in the provision for federal income taxes.
Deposit costs declining faster than the yields on interest earning assets, particularly the repricing of CDs to lower interest rates, was the main cause of the increase in net interest income. On an annualized basis, during the nine-month period the yield on interest earning assets decreased approximately 16 basis points while the cost of interest bearing liabilities decreased approximately 54 basis points.
The increase in noninterest income resulted from increases of $371,000, or 168.6%, in net gain on sale of loans and $31,000, or 13.3%, in service charges on deposit accounts, which were partially offset by decreases of $33,000 in net mortgage servicing revenue and $6,000 in other noninterest income. The increase in gain on sale of loans resulted from increased sales into the secondary mortgage market. These increased sales were due to significant increases in the number of loan originations and refinancings as a result of the prevailing low interest rate environment throughout the nine-month period.
The increase of $134,000, or 3.22% in noninterest expense was due primarily to increases in employee compensation and benefits.
Nonaccrual loans were $2.2 million, or 1.06% of total assets, at June 30, 2010, compared to $1.4 million, or .65%, at March 31, 2011, due in large part to the favorable resolution of a large non-performing loan during the nine-month period.
Management reviews the loan portfolio, delinquency rates, net charge-offs and current economic conditions to provide an allowance for loan losses. For the nine-month period ended March 31, 2011, a loan loss provision of $652,000 was taken, which resulted in an increase in allowance for loan losses of $480,000 period over period. Of the provision, $258,000 was the result of deteriorating collateral value for one large non-performing commercial real estate loan participation. Management believes that the allowance for loan losses at March 31, 2011, is adequate based upon available facts and circumstances, however, there can be no assurance that additions to the allowance will not be necessary in future periods, which could adversely affect the Corporations results of operations. Net charge offs were $172,000 for the nine-month period ended March 31, 2011, and $73,000 for the comparable period in 2010.
FFD Financial Corporation reported total assets at March 31, 2011, of $210.6 million, an increase of $4.1 million, or 2.0%, over the June 30, 2010 balance of $206.5 million. Cash and cash equivalents increased by 71.0% to $15.5 million from the June 30, 2010 balance of $9.0 million due to proceeds from several investments that were called. Loans receivable (net) increased by 0.9% from the June 30, 2010, balance of $178.8 million to $180.5 million at March 31, 2011. Loans held for sale decreased $1.4 million. Total liabilities increased by $3.7 million, or 2.0%, from $188.2 million at June 30, 2010 to $191.9 million at March 31, 2011, and included deposits of $176.4 million, an increase of 3.0% over the June 30, 2010 balance of $171.3 million. The increase in shareholders equity of $422,000, or 2.3%, was primarily attributable to net earnings of $1.1 million, which were partially offset by dividend payments of $516,000 and an increase in accumulated other comprehensive loss of $147,000, primarily due to the change in fair value of available for sale investments, net of tax. 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 Bank maintains an interactive web site at www.onlinefirstfed.com.
FFD Financial Corporation
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
Cash and cash equivalents
Loans receivable, net
Loans held for sale
LIABILITIES AND SHAREHOLDERS EQUITY
Total liabilities and shareholders equity
FFD Financial Corporation
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(In thousands, except share data)
Nine months ended
Three months ended
Total interest income
Total interest expense
Net interest income
Provision for losses on loans
Net interest income after provision
Earnings before income taxes
Federal income taxes
EARNINGS PER SHARE
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