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Articles 

FFD Financial Corp. Reports Operating Results (10-Q)

November 14, 2011 | About:

FFD Financial Corp. (FFDF) filed Quarterly Report for the period ended 2011-09-30.

Ffd Financial Corp. has a market cap of $14.47 million; its shares were traded at around $14.24 with a P/E ratio of 11.13 and P/S ratio of 1.24. The dividend yield of Ffd Financial Corp. stocks is 4.78%. Ffd Financial Corp. had an annual average earning growth of 13.7% over the past 10 years.

Highlight of Business Operations:

Impaired loan servicing rights, which are carried at lower of cost or fair value based on stratifying rights into groupings, were written down to a fair value of $192,000, resulting in a valuation allowance of $34,000. A net benefit of $8,000 from the recovery of servicing rights fair value was included in earnings for the three months ended September 30, 2011. Servicing rights totaling $531,000 were carried at amortized cost.

Tuscarawas County and Holmes County in the Bank's primary market area have 8.2% and 6.2% unemployment, respectively. This compares reasonably well to the State of Ohio s unemployment rate of 9.1% for September 2011. In this market area, residential real estate sales and construction remain relatively soft. Commercial loan demand also remains soft, making finding qualified borrowers a challenge.

The Corporation s net earnings totaled $368,000 for the three months ended September 30, 2011, a decrease of $46,000, or 11.1%, from the net earnings of $414,000 recorded in the comparable period in 2010. The decrease in net earnings resulted from increases of $77,000, or 5.5%, in noninterest expense, $57,000, or 30.7%, in the provision for losses on loans and a decrease of $84,000, or 22.1%, in noninterest income which were partially offset by an increase of $149,000, or 8.1%, in net interest income and a decrease of and $23,000, or 10.7%, in federal income tax expense.

Noninterest income totaled $297,000 for the three months ended September 30, 2011, a decrease of $84,000, or 22.1%, from the 2010 total. Net gain on sale of loans decreased by $97,000, or 37.3%, to $163,000 for the three months ended September 30, 2011, compared to $260,000 for the three months ended September 30, 2010. The decrease in gain on sale of loans resulted from a 52.5% decrease in loans sold into the secondary mortgage market due to a significant decline in the number of newly originated and refinanced loans in the current economic climate. Service charges on deposit accounts increased by $15,000, or 16.0%, to $109,000 for the three months ended September 30, 2011, compared to $94,000 for the same period in 2010. Mortgage servicing revenue decreased $1,000 in 2011 compared to the same period in 2010.

The Corporation recorded a provision for federal income taxes totaling $192,000 for the three months ended September 30, 2011, a decrease of $23,000, or 10.7%, over the same period in 2010. The decrease resulted from a $69,000, or 11.0%, decrease in earnings before taxes. The Corporation s effective tax rates were 34.3% and 34.2%, for the three-month periods ended September 30, 2011 and 2010, respectively.

Read the The complete Report

About the author:

10qk
Charlie Tian, Ph.D. - Founder of GuruFocus. You can now order his book Invest Like a Guru on Amazon.

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