FFD Financial Corp. (FFDF, Financial) filed Quarterly Report for the period ended 2010-12-31.
Ffd Financial Corp. has a market cap of $14.67 million; its shares were traded at around $14.5 with a P/E ratio of 10.9 and P/S ratio of 1.31. The dividend yield of Ffd Financial Corp. stocks is 4.69%. Ffd Financial Corp. had an annual average earning growth of 15.4% over the past 10 years.
The allowance for loan losses totaled $2.4 million at December 31, 2010, an increase of $438,000, or 22.0%, from June 30, 2010, and represented 1.33% of total loans and 1.10% of total loans at those dates, respectively. The increase resulted from a provision of $532,000, and recoveries of $1,000, which were partially offset by charge-offs of $95,000. Management increased the allowance for loan losses despite the improvements over the six-month period in reducing impaired loans and nonaccruing loans. Of the $532,000 provision increase, $375,000 was recorded to the specific reserve account, with $214,000 for one large non-performing commercial loan. Nonaccrual loans were $1.2 million at December 31, 2010 and $2.2 million at June 30, 2010, which represented .67% and 1.21% of total loans at those respective dates. Non-accruing non-residential real estate and land mortgage loans decreased by $749,000, one- to four-family properties secured by first liens decreased by $84,000, secured commercial loans decreased by $141,000, consumer and other loans increased by $12,000 and unsecured commercial loans did not change. The decrease in non-accruing non-residential real estate and land loans was partially due to the favorable resolution, resulting in no loss, of a large non-performing loan during the six-month period. Delinquent loans to total loans were 1.65% at December 31, 2010 and 2.34% at June 30, 2010, due to decreases in non-residential properties delinquent 90 days or more days, and one- to four-family properties secured by first liens delinquent 30 to 89 days. At December 31, 2010, there were no loans past due over 90 days and still on accrual. Although the Corporation experienced decreases in nonaccrual and delinquent loans from June 30, 2010 to December 31, 2010, general economic conditions remain uncertain and there can be no assurance that increases will not occur in future periods. The composition of the loan portfolio remained relatively the same from June 30, 2010 to December 31, 2010. Residential real estate, one- to four-family and multifamily and nonresidential real estate and land loans make up most of the portfolio. Impaired loan balances were $2.5 million with an allowance of $884,000 and $3.9 million with an allowance of $582,000 at December 31, 2010 and June 30, 2010, respectively. Although management believes that the allowance for loan losses at December 31, 2010, is adequate based upon the available facts and circumstances, 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.
Noninterest income totaled $708,000 for the six months ended December 31, 2010, an increase of $336,000, or 90.3%, from the 2009 total. Net gain on sale of loans increased by $365,000, or 214.7%, to $535,000 for the six months ended December 31, 2010, compared to $170,000 for the 2009 period. The increase in gain on sale of loans resulted from increased loan refinancing demand. This demand resulted in increased sales into the secondary mortgage market of newly originated loans and refinanced loans as a result of the prevailing low interest rate environment. Service charges on deposit accounts increased by $24,000, or 15.4%, to $180,000 for the six months ended December 31, 2010, compared to $156,000 for the same period in 2009. Mortgage servicing revenue decreased $55,000 in 2010 compared to the same period in 2009, due to greater amortization expense and a charge to servicing rights fair value in the six months ended December 31, 2010 versus a recovery in the six months ended December 31, 2009. The greater amortization expense primarily resulted from the refinancing of seasoned loans. The fair value charge resulted from increased prepayment speeds due to declining interest rates.
Noninterest expense totaled $2.8 million for the six months ended December 31, 2010, an increase of $58,000, or 2.1%, compared to the same period in 2009. The increase in noninterest expense includes increases of $42,000, or 3.4%, in employee compensation and benefits, $22,000, or 8.3%, in occupancy and equipment expense, $10,000, or 2.8%, in other operating expense, $9,000, or 7.8%, in franchise tax, $7,000, or 10.8%, in ATM processing, $6,000, or 7.1%, in advertising, $5,000, or 4.2%, in FDIC insurance expense, which were offset by decreases of $16,000, or 15.8%, in postage and stationary supplies, $15,000 in loss on sale of real estate owned, $6,000, or 3.2%, in data processing and $6,000, or 5.2%, in checking account maintenance expense. The increase in employee compensation was due to additional staffing to expand loan production operations and normal merit increases. The increase in occupancy and equipment expense primarily resulted from full operation of the Berlin office in the first six months of 2010 as opposed to partial operations in the first six months of 2009. Portions of the increase in noninterest expense in advertising, postage and stationary supplies, occupancy and equipment expense and data processing were also the result of opening and marketing the new Berlin office.
Noninterest income totaled $327,000 for the three months ended December 31, 2010, an increase of $162,000, or 98.2%, from the 2009 total. Net gain on sale of loans increased by $176,000, or 177.8%, to $275,000 for the three months ended December 31, 2010, compared to $99,000 for the three months ended December 31, 2009. The increase in gain on sale of loans resulted from managements efforts to utilize its strong mortgage banking unit during this time of significantly increased loan refinancing demand. This demand resulted in increased sales into the secondary mortgage market of newly originated loans and refinanced loans as a result of the prevailing low interest rate environment. Service charges on deposit accounts increased by $9,000, or 11.7%, to $86,000 for the three months ended December 31, 2010, compared to 2009. Mortgage servicing revenue decreased $27,000 in 2010 compared to the same period in 2009, due to greater amortization expense from the refinancing of seasoned loans with higher value servicing rights.
Noninterest expense totaled $1.4 million for the three months ended December 31, 2010, an increase of $59,000, or 4.3%, compared to the same period in 2009. The increase in noninterest expense includes increases of $20,000, or 64.5%, in advertising, $13,000, or 19.4%, in professional and consulting fees, $10,000, or 17.5%, in franchise tax, $10,000, or 19.6%, in FDIC insurance expense, $8,000, or 32.0%, in ATM processing, $5,000, or 2.8%, in other operating expense, $4,000, or 8.5%, in postage and stationary supplies, $1,000, or .2%, in employee and director compensation and benefits, which were offset by decreases $8,000, or 8.4%, in data processing, $2,000, or 3.5%, in checking account maintenance expense, $1,000, or .7%, in occupancy and equipment expense and $1,000, in loss on sale of real estate owned.
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Ffd Financial Corp. has a market cap of $14.67 million; its shares were traded at around $14.5 with a P/E ratio of 10.9 and P/S ratio of 1.31. The dividend yield of Ffd Financial Corp. stocks is 4.69%. Ffd Financial Corp. had an annual average earning growth of 15.4% over the past 10 years.
Highlight of Business Operations:
Loans receivable, including loans held for sale, totaled $181.7 million at December 31, 2010, an increase of $1.4 million, or .8%, from the June 30, 2010 total. The portfolio of loans secured by one- to four-family residential real estate decreased by $262,000, or .4%, to $67.9 million at December 31, 2010. Loans secured by nonresidential real estate and land totaled $83.2 million at December 31, 2010, an increase of $3.1 million, or 3.9%, from June 30, 2010. Commercial loans decreased $1.2 million, or 6.2%, from June 30, 2010 to a total of $18.8 million at December 31, 2010. Loan originations during the period totaling $59.7 million were substantially offset by principal repayments of $57.5 million, adjustments to the allowance for loan losses and net unamortized fees and costs. During the six-month period ended December 31, 2010, loan originations were comprised of $40.3 million of one- to four-family residential real estate loans, $12.5 million of nonresidential real estate loans, $2.3 million of consumer loans, $4.4 million of commercial loans, and $250,000 of multifamily real estate loans. Nonresidential real estate and commercial lending generally involve a higher degree of risk than one- to four-family residential real estate lending due to the relatively larger loan amounts and the effects of general economic conditions on the successful operation of income-producing properties and businesses. The Corporation endeavors to reduce this risk by evaluating the credit history and past performance of the borrower, the location of the real estate, the quality of the management operating the property or business, the debt service ratio, the quality and characteristics of the income stream generated by the property or business and appraisals supporting the real estate or collateral valuation.The allowance for loan losses totaled $2.4 million at December 31, 2010, an increase of $438,000, or 22.0%, from June 30, 2010, and represented 1.33% of total loans and 1.10% of total loans at those dates, respectively. The increase resulted from a provision of $532,000, and recoveries of $1,000, which were partially offset by charge-offs of $95,000. Management increased the allowance for loan losses despite the improvements over the six-month period in reducing impaired loans and nonaccruing loans. Of the $532,000 provision increase, $375,000 was recorded to the specific reserve account, with $214,000 for one large non-performing commercial loan. Nonaccrual loans were $1.2 million at December 31, 2010 and $2.2 million at June 30, 2010, which represented .67% and 1.21% of total loans at those respective dates. Non-accruing non-residential real estate and land mortgage loans decreased by $749,000, one- to four-family properties secured by first liens decreased by $84,000, secured commercial loans decreased by $141,000, consumer and other loans increased by $12,000 and unsecured commercial loans did not change. The decrease in non-accruing non-residential real estate and land loans was partially due to the favorable resolution, resulting in no loss, of a large non-performing loan during the six-month period. Delinquent loans to total loans were 1.65% at December 31, 2010 and 2.34% at June 30, 2010, due to decreases in non-residential properties delinquent 90 days or more days, and one- to four-family properties secured by first liens delinquent 30 to 89 days. At December 31, 2010, there were no loans past due over 90 days and still on accrual. Although the Corporation experienced decreases in nonaccrual and delinquent loans from June 30, 2010 to December 31, 2010, general economic conditions remain uncertain and there can be no assurance that increases will not occur in future periods. The composition of the loan portfolio remained relatively the same from June 30, 2010 to December 31, 2010. Residential real estate, one- to four-family and multifamily and nonresidential real estate and land loans make up most of the portfolio. Impaired loan balances were $2.5 million with an allowance of $884,000 and $3.9 million with an allowance of $582,000 at December 31, 2010 and June 30, 2010, respectively. Although management believes that the allowance for loan losses at December 31, 2010, is adequate based upon the available facts and circumstances, 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.
Noninterest income totaled $708,000 for the six months ended December 31, 2010, an increase of $336,000, or 90.3%, from the 2009 total. Net gain on sale of loans increased by $365,000, or 214.7%, to $535,000 for the six months ended December 31, 2010, compared to $170,000 for the 2009 period. The increase in gain on sale of loans resulted from increased loan refinancing demand. This demand resulted in increased sales into the secondary mortgage market of newly originated loans and refinanced loans as a result of the prevailing low interest rate environment. Service charges on deposit accounts increased by $24,000, or 15.4%, to $180,000 for the six months ended December 31, 2010, compared to $156,000 for the same period in 2009. Mortgage servicing revenue decreased $55,000 in 2010 compared to the same period in 2009, due to greater amortization expense and a charge to servicing rights fair value in the six months ended December 31, 2010 versus a recovery in the six months ended December 31, 2009. The greater amortization expense primarily resulted from the refinancing of seasoned loans. The fair value charge resulted from increased prepayment speeds due to declining interest rates.
Noninterest expense totaled $2.8 million for the six months ended December 31, 2010, an increase of $58,000, or 2.1%, compared to the same period in 2009. The increase in noninterest expense includes increases of $42,000, or 3.4%, in employee compensation and benefits, $22,000, or 8.3%, in occupancy and equipment expense, $10,000, or 2.8%, in other operating expense, $9,000, or 7.8%, in franchise tax, $7,000, or 10.8%, in ATM processing, $6,000, or 7.1%, in advertising, $5,000, or 4.2%, in FDIC insurance expense, which were offset by decreases of $16,000, or 15.8%, in postage and stationary supplies, $15,000 in loss on sale of real estate owned, $6,000, or 3.2%, in data processing and $6,000, or 5.2%, in checking account maintenance expense. The increase in employee compensation was due to additional staffing to expand loan production operations and normal merit increases. The increase in occupancy and equipment expense primarily resulted from full operation of the Berlin office in the first six months of 2010 as opposed to partial operations in the first six months of 2009. Portions of the increase in noninterest expense in advertising, postage and stationary supplies, occupancy and equipment expense and data processing were also the result of opening and marketing the new Berlin office.
Noninterest income totaled $327,000 for the three months ended December 31, 2010, an increase of $162,000, or 98.2%, from the 2009 total. Net gain on sale of loans increased by $176,000, or 177.8%, to $275,000 for the three months ended December 31, 2010, compared to $99,000 for the three months ended December 31, 2009. The increase in gain on sale of loans resulted from managements efforts to utilize its strong mortgage banking unit during this time of significantly increased loan refinancing demand. This demand resulted in increased sales into the secondary mortgage market of newly originated loans and refinanced loans as a result of the prevailing low interest rate environment. Service charges on deposit accounts increased by $9,000, or 11.7%, to $86,000 for the three months ended December 31, 2010, compared to 2009. Mortgage servicing revenue decreased $27,000 in 2010 compared to the same period in 2009, due to greater amortization expense from the refinancing of seasoned loans with higher value servicing rights.
Noninterest expense totaled $1.4 million for the three months ended December 31, 2010, an increase of $59,000, or 4.3%, compared to the same period in 2009. The increase in noninterest expense includes increases of $20,000, or 64.5%, in advertising, $13,000, or 19.4%, in professional and consulting fees, $10,000, or 17.5%, in franchise tax, $10,000, or 19.6%, in FDIC insurance expense, $8,000, or 32.0%, in ATM processing, $5,000, or 2.8%, in other operating expense, $4,000, or 8.5%, in postage and stationary supplies, $1,000, or .2%, in employee and director compensation and benefits, which were offset by decreases $8,000, or 8.4%, in data processing, $2,000, or 3.5%, in checking account maintenance expense, $1,000, or .7%, in occupancy and equipment expense and $1,000, in loss on sale of real estate owned.
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