FFD Financial : Earnings Release for 12/31/2019

Date: January 29, 2020

FOR IMMEDIATE RELEASE:

CONTACT:
Trent B. Troyer, President & CEO	Greg W. Dorris, Senior Vice President & CFO
[e-mail]	[e-mail]

FFD Financial Corporation Reports Increased Net Earnings For

Three and Six Months Ended December 31, 2019

DOVER, OHIO - FFD Financial Corporation (OTC: FFDF), parent company of First Federal Community Bank, National Association, is pleased to report its unaudited earnings for the three and six months ended December 31, 2019. Net earnings for the quarter ended December 31, 2019, were $1.4 million, or diluted earnings per share of $1.41, a decrease of $125,000, or 8.18%, from the $1.5 million, or $1.54 per diluted share, reported for the comparable three- month period in 2018. Net earnings for the six months ended December 31, 2019, were $3.1 million, or diluted earnings per share of $3.16; an increase of $68,000, or 2.21%, from the $3.1 million, or $3.09 per diluted share, of net earnings for the comparable six-month period in 2018.

Items to note:

• On January 8, 2020 the Bank uncovered a fraud being undertaken by a long-time business customer. The anticipated loss in connection with this fraud is being reflected in the December 31, 2019 quarter-end results. Based upon managements' analysis of this fraud and estimated recoveries available from the customer and insurance, an estimated net loss of $433,000 was recorded. The Bank intends to vigorously pursue all avenues of collection available to it. The financial impact of the actual amount of the recoveries that differ from the Bank's current estimates will be reflected in subsequent periods as additional information becomes available.
• Net interest income for the quarter and six-months ending December 31, 2019 increased $278,000 or 7.64% and $768,000 or 10.87% respectively, compared to the same periods in 2018 primarily due to increased revenue from loans, and was partially offset by increased interest expense from deposits and borrowings.
• Noninterest income for the quarter and six-months ending December 31, 2019 increased $160,000 or 38.83% and $229,000 or 26.41% respectively, compared to the same periods in 2018 primarily due increased mortgage banking activity.

Total assets were $452.9 million at December 31, 2019, an increase of $38.9 million, or 9.4%, over the June 30, 2019 balance of $414.0 million. Net loans increased by $28.2 million or 8.4% and total deposits increased by $20.9 million or 5.6%. The allowance for loan losses as a percentage of net loans was 1.01% at December 31, 2019 and 1.03% at June 30, 2019. Shareholders' equity was $41.5 million at December 31, 2019, an increase of $2.4 million or 6.2% over the June 30, 2019 balance of $39.1 million.

Notable key ratios: return on average assets (ROAA) of 1.25%, and 1.44%, and return on average equity (ROAE) of 13.68%, and 15.58%, for the three- and six-month periods ending December 31, 2019 respectively. As of December 31, 2019, the current book value is $41.69 per share compared to $36.25 at June 30, 2019. The closing share price at quarter-end was $67.00, which represents a price to book trading ratio of 1.61.

FFD Financial is traded on the Over the Counter Markets under the symbol FFDF. First Federal Community Bank has seven full service offices in downtown Dover, on the Boulevard in Dover, New Philadelphia, Uhrichsville, Sugarcreek, Berlin and Mt. Hope. First Federal againearned a Bauer Financial 5-Star Superior rating, denoting the highest level of strength, safety, and performance. FFD maintains an interactive web site at www.firstfed.com

FFD Financial Corporation

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(In thousands)

	December 31,			June 30,
ASSETS					2019				2019
				(unaudited)
Cash and cash equivalents	$	51,067		$	40,343
Certificates of deposits in other financial institutions					-			-
Investment securities available for sale					17,041				18,740
Investment securities held to maturity					-			-
Loans receivable, net					362,821				334,656
Loans held for sale					481				1,088
Other assets					21,490				19,127
Total assets		$	452,900			$	413,954
Deposits	$	391,576		$	370,684
Borrowings					15,225				257
Other liabilities					4,593				3,939
Total liabilities					411,394				374,880
Shareholders' equity					41,506				39,074
Total liabilities and shareholders' equity	$	452,900		$	413,954

FFD Financial Corporation

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS

(In thousands, except share data)

(Unaudited)

		Six-months ended				Three-months ended
		December 31,					December 31,
		2019					2018					2019				2018
Total interest income	$	9,802	$	8,427	$	4,937	$	4,352
Total interest expense		1,969					1,362					1,018				711
Net interest income		7,833					7,065					3,919				3,641
Provision for losses on loans		209					90					48				45
Net interest income after provision
for losses on loans		7,624					6,975					3,871				3,596
Noninterest income		1,096					867					572				412
Noninterest expense		4,854					4,109					2,715				2,151
Earnings before income taxes		3,866					3,733					1,728				1,857
Federal income taxes		719					654					324				328
NET EARNINGS	$	3,147	$3,079	$	1,404	$	1,529
EARNINGS PER SHARE
Basic	$	3.16		$	3.10		$	1.41		$	1.54
Diluted	$	3.16	$	3.09	$	1.41	$	1.54